Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Paranovus Entertainment Technology Ltd. |
Trading Symbol | PAVS |
Document Type | 20-F |
Current Fiscal Year End Date | --03-31 |
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, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 333-230170 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 11, Dongjiao East Road |
Entity Address, Address Line Two | Shuangxi, Shunchang |
Entity Address, Address Line Three | Shunchang |
Entity Address, City or Town | Nanping City |
Entity Address, Country | CN |
Title of 12(b) Security | Class A ordinary shares, par value US$0.01 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 6706 |
Auditor Name | TPS Thayer, LLC |
Auditor Location | Sugar Land, TX |
Entity Address, Postal Zip Code | 353001 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | No. 11, Dongjiao East Road |
Entity Address, Address Line Two | Shuangxi |
Entity Address, Address Line Three | Shunchang |
Entity Address, City or Town | Nanping City |
Entity Address, Country | CN |
Contact Personnel Name | Xuezhu Wang |
City Area Code | +86 |
Local Phone Number | 0599-782-8808 |
Entity Address, Postal Zip Code | 00000 |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 7,724,675 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 612,255 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 3,355,487 | $ 19,733,631 |
Accounts receivable, | 1,706,279 | 27,447,907 |
Notes receivable | 89,332 | |
Inventories | 335,019 | 1,389,561 |
Prepaid expenses and other current assets | 4,389,186 | 7,909,233 |
Total current assets | 9,785,971 | 56,569,664 |
Property, plant and equipment, net | 8,470,272 | 11,246,815 |
Intangible assets, net | 9,446,255 | 10,101,405 |
Goodwill | 6,455,781 | 10,084,201 |
Deferred tax assets | 3,796,492 | |
Prepaid assets | 2,181,930 | 5,627,099 |
TOTAL ASSETS | 36,340,209 | 97,425,676 |
Current liabilities | ||
Accounts payable | 13,462,008 | 12,155,733 |
Other payables and accrued liabilities | 5,106,634 | 3,469,768 |
Income tax payable | 143,360 | 37,225 |
Short-term bank borrowings | 2,241,076 | 2,268,360 |
Total current liabilities | 20,953,078 | 17,931,086 |
Deferred tax liability | 1,514,060 | 2,079,986 |
TOTAL LIABILITIES | 22,467,138 | 20,011,072 |
COMMITMENTS AND CONTINGENCIES (NOTE 17) | ||
SHAREHOLDERS’ EQUITY | ||
Preferred shares, $0.01 par value,500,000 shares authorized, 0 shares issued and outstanding | ||
Class A Ordinary shares, $0.01 par value 350,000,000 shares authorized, 7,724,675 shares issued and outstanding; $0.0005 par value, 70,000,000 shares authorized, 67,004,583 shares issued and outstanding | 77,177 | 33,502 |
Class B Ordinary shares, $0.01 par value, 100,000,000 shares authorized, 612,255 shares issued and outstanding; $0.0005 par value, 20,000,000 shares authorized, 12,095,100 shares issued and outstanding | 6,123 | 6,048 |
Additional paid-in capital | 66,908,726 | 53,871,226 |
Statutory surplus reserve | 7,622,765 | 7,622,765 |
Retained earnings (accumulated losses) | (59,453,593) | 12,285,281 |
Accumulated other comprehensive income (loss) | (402,119) | 4,306,536 |
Total Paranovus Entertainment Technology Ltd.’s shareholders’ equity | 14,759,079 | 78,125,358 |
Non-controlling interests | (886,008) | (710,754) |
Total shareholders’ equity | 13,873,071 | 77,414,604 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 36,340,209 | $ 97,425,676 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Preferred shares, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 500,000 | 500,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Class A Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.01 | $ 0.0005 |
Ordinary shares, shares authorized | 350,000,000 | 70,000,000 |
Ordinary shares, shares issued | 7,724,675 | 67,004,583 |
Ordinary shares, shares outstanding | 7,724,675 | 67,004,583 |
Class B Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.01 | $ 0.0005 |
Ordinary shares, shares authorized | 100,000,000 | 20,000,000 |
Ordinary shares, shares issued | 612,255 | 12,095,100 |
Ordinary shares, shares outstanding | 612,255 | 12,095,100 |
Consolidated Statements of Oper
Consolidated Statements of Operation and Other Comprehensive (Loss)/ Income - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 98,152,825 | $ 89,488,658 | $ 71,484,703 |
Cost of revenues | (93,098,463) | (85,777,192) | (53,309,102) |
Gross profit | 5,054,362 | 3,711,466 | 18,175,601 |
Operating expenses: | |||
Selling and marketing | 54,701,318 | 40,476,616 | 9,958,886 |
General and administrative | 9,478,099 | 9,126,812 | 5,030,899 |
Research and development | 1,397,118 | 1,684,089 | 1,660,100 |
Goodwill impairment | 7,872,696 | 10,309,745 | |
Total operating expenses | 73,449,231 | 61,597,262 | 16,649,885 |
Operating (loss) income | (68,394,869) | (57,885,796) | 1,525,716 |
Other income (expenses): | |||
Interest income | 31,886 | 108,395 | 131,901 |
Interest expense | (72,303) | (85,993) | (111,799) |
Other income, net | (294,750) | 117,086 | 105,522 |
Total other income, net | (335,167) | 139,488 | 125,624 |
(Loss) Income before income taxes | (68,730,036) | (57,746,308) | 1,651,340 |
Income tax benefit (provision) | (3,457,080) | 3,726,227 | (959,384) |
Net (loss) income | (72,187,116) | (54,020,081) | 691,956 |
Net loss attributable to non-controlling interests | 448,242 | 4,829,471 | 94,400 |
Net (loss) income attributable to Paranovus Entertainment Technology Ltd | (71,738,874) | (49,190,610) | 786,356 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (4,435,667) | 2,523,258 | 6,113,570 |
Comprehensive (loss) income | (76,622,783) | (51,496,823) | 6,805,526 |
Less: comprehensive (loss) income attributable to non-controlling interests | (272,988) | 2,696,899 | (2,873,378) |
Comprehensive (loss) income attributable to Paranovus Entertainment Technology Ltd | $ (76,895,771) | $ (48,799,924) | $ 3,932,148 |
Basic and diluted earnings per ordinary share | |||
Basic earnings per ordinary share (in Dollars per share) | $ (12.63) | $ (1.22) | $ 0.03 |
Weighted average number of ordinary shares outstanding | |||
Basic weighted average number of ordinary shares outstanding (in Shares) | 5,678,081 | 40,485,912 | 26,160,270 |
Consolidated Statements of Op_2
Consolidated Statements of Operation and Other Comprehensive (Loss)/ Income (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
Diluted earnings per ordinary share | $ (12.63) | $ (1.22) | $ 0.03 |
Diluted weighted average number of ordinary shares outstanding | 5,678,081 | 40,485,912 | 26,160,270 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Class A Ordinary shares | Class B Ordinary shares | Additional paid-in capital | Statutory surplus reserve | Retained earnings | Accumulated other comprehensive income (loss) | Total Paranovus Entertainment Technology Limited shareholders’ equity | Non- controlling interests | Total |
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 | ||||||||
Statutory reserves | 5,558,669 | (5,558,669) | |||||||
Contribution from non-controlling shareholders | 112,418 | 112,418 | |||||||
Net income (loss) | 786,356 | 786,356 | (94,400) | 691,956 | |||||
Dividend | (375,000) | (375,000) | (375,000) | ||||||
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 | ||||||||
Ordinary shares issued for cash | $ 16,470 | 18,861,130 | 18,877,600 | 18,877,600 | |||||
Ordinary shares issued for cash (in Shares) | 32,940,000 | ||||||||
Business acquisition | $ 7,100 | 7,379,220 | 7,386,320 | 3,924,220 | 11,310,540 | ||||
Business acquisition (in Shares) | 14,200,000 | ||||||||
Convention of Class A Ordinary shares into Class B Ordinary shares | $ (6,048) | $ 6,048 | |||||||
Convention of Class A Ordinary shares into Class B Ordinary shares (in Shares) | (12,095,100) | 12,095,100 | |||||||
Ordinary shares issued for services | $ 739 | 1,085,492 | 1,086,231 | 1,086,231 | |||||
Ordinary shares issued for services (in Shares) | 1,478,103 | ||||||||
Net income (loss) | (49,190,610) | (49,190,610) | (4,829,471) | (54,020,081) | |||||
Foreign currency translation adjustments | 5,220,157 | 5,220,157 | (2,696,899) | 2,523,258 | |||||
Balance at Mar. 31, 2022 | $ 33,502 | $ 6,048 | 53,871,226 | 7,622,765 | 12,285,281 | 4,306,536 | 78,125,358 | (710,754) | 77,414,604 |
Balance (in Shares) at Mar. 31, 2022 | 67,004,583 | 12,095,100 | |||||||
Ordinary shares issued for cash | $ 30,000 | 5,970,000 | 6,000,000 | 6,000,000 | |||||
Ordinary shares issued for cash (in Shares) | 3,000,000 | ||||||||
Business acquisition | $ 13,750 | 7,067,500 | 7,081,250 | 7,081,250 | |||||
Business acquisition (in Shares) | 1,375,000 | ||||||||
Convention of Class A Ordinary shares into Class B Ordinary shares | $ (75) | $ 75 | |||||||
Convention of Class A Ordinary shares into Class B Ordinary shares (in Shares) | (150,000) | 150,000 | |||||||
Share consolidation | |||||||||
Share consolidation (in Shares) | (63,504,908) | (11,640,345) | |||||||
Net income (loss) | (71,738,874) | (71,738,874) | (448,242) | (72,187,116) | |||||
Foreign currency translation adjustments | (4,708,655) | (4,708,655) | 272,988 | (4,435,667) | |||||
Balance at Mar. 31, 2023 | $ 77,177 | $ 6,123 | $ 66,908,726 | $ 7,622,765 | $ (59,453,593) | $ (402,119) | $ 14,759,079 | $ (886,008) | $ 13,873,071 |
Balance (in Shares) at Mar. 31, 2023 | 7,724,675 | 604,755 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Net (loss) income | $ (72,187,116) | $ (54,020,081) | $ 691,956 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 3,378,952 | 2,187,206 | 880,879 |
Allowance for doubtful accounts | 854,615 | 463,514 | |
Goodwill impairment | 7,872,696 | 10,407,349 | |
Loss on disposal of roperty, plant and equipment | 97,552 | 434,183 | |
(Gain) Loss on disposal of subsidiaries | (383,376) | 95,932 | |
Deferred taxes | 3,230,566 | (3,921,856) | |
Share-based compensation | 1,086,231 | 778,423 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 24,887,013 | 23,222,982 | (2,106,752) |
Notes receivable | 89,332 | (88,495) | |
Inventories | 1,054,542 | 454,262 | 389,388 |
Prepaid expenses and other current assets | 3,520,047 | 12,250,088 | (8,057,239) |
Prepaid assets | 3,445,169 | (329,926) | 1,718,110 |
Accounts payable | 1,306,275 | (4,845,854) | 6,723,151 |
Other payables and accrued liabilities | 1,636,866 | (15,213,292) | 3,134,093 |
Due to related parties | (844,718) | ||
Income taxes payable | 106,135 | (317,026) | (402,825) |
Net cash (used in) provided by operating activities | (21,090,732) | (28,134,783) | 2,904,466 |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (45,819) | (2,390,339) | (2,783,440) |
Purchase of intangible assets | (17,165) | (1,051,138) | |
Business acquisitions of Hekangyuan | (7,998,836) | ||
Business acquisitions of Baodeng | (79,584) | ||
Deposits return from Shennong | 1,931,646 | ||
Purchase of DAJI | (75,044) | ||
Deposits paid for business acquisitions | (9,313,225) | ||
Proceeds from disposal of subsidiaries | 23,777 | 34,330 | |
Proceeds from disposal of roperty, plant and equipment | 111,364 | 43,069 | |
Net cash provided by/ (used in) investing activities | 89,322 | (8,476,879) | (13,222,847) |
Cash Flows from Financing Activities: | |||
Ordinary shares issued for cash | 3,000,000 | 18,877,600 | 10,965,553 |
Cash contribution from non-controlling shareholders | 37,522 | ||
Dividend payment | (375,000) | ||
Proceeds from short-term loans | 2,488,467 | 2,247,086 | 2,163,037 |
Repayments of short-term loans | (2,342,943) | (2,293,900) | (2,118,893) |
Net cash provided by financing activities | 3,145,524 | 18,830,786 | 10,672,219 |
Effect of exchange rate changes on cash and cash equivalents | 1,477,742 | 955,755 | 2,550,149 |
Net (decrease) increase in cash and cash equivalents | (16,378,144) | (16,825,121) | 2,903,987 |
Cash and cash equivalents at the beginning of year | 19,733,631 | 36,558,752 | 33,654,765 |
Cash and cash equivalents at the end of year | 3,355,487 | 19,733,631 | 36,558,752 |
Supplemental disclosures of cash flows information: | |||
Cash paid for income taxes | 306,090 | 570,113 | 1,209,381 |
Cash paid for interest expense | 72,303 | 85,993 | 111,790 |
Supplemental schedule of non-cash investing and financing activities | |||
Ordinary shares issued for acquisitions | $ 7,386,320 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS Paranovus Entertainment Technology Limited (“Paranovus Cayman”) is a holding company. It was incorporated on February 13, 2018 under the laws of the Cayman Islands and previously named Happiness Biotech Group Limited. On November 5, 2021, the Company changed its name to Happiness Development Group Limited under the special resolution dated October 21, 2021. On March 13, 2023 the Company changed its name to Paranovus Entertainment Technology Limited under the special resolution dated March 13, 2023.The Company has no substantive operations other than holding all of the outstanding share capital of Happiness Biology Technology Group Limited (“Happiness Hong Kong”) and Paranovus Entertainment Technology Limited (“Paranovus NewYork”). Happiness Hong Kong is a holding company of all of the equity or ownership of Happiness (Fuzhou) E-commerce Co., Ltd (“Happiness Fuzhou”). Paranovus NewYork is a holding company of 100% equity or ownership of 2Lab3 LLC, which was established on December 8, 2022. Happiness Fuzhou 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. (“Fujian Consulting”), Happy Buy (Fujian) Network Technology Co., Ltd. (“Happy Buy”), and Taochejun (Fujian) Automobile Sales Co., Ltd. (“Fujian Taochejun”). Reorganization A Reorganization of the legal structure was completed in August 2018. The Reorganization involved the incorporation of PARANOVUS ENTERTAINMENT TECHNOLOGY LIMITED, a Cayman Islands holding company; Happiness Biology Technology Group Limited, a holding company established in Hong Kong, PRC; Happiness (Fuzhou) E-commerce Co., Ltd, a holding company established in Fujian, PRC; and the transfer of 100% ownership of Fujian Happiness from the former shareholders to Happiness Fuzhou. Paranovus Cayman, Happiness Hong Kong and Happiness Fuzhou 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 Fuzhou, which is 100% owned by Happiness Hong Kong. After the reorganization, Paranovus Cayman owns 100% equity interests of Fujian Happiness. Mr. Wang Xuezhu, who owns 52.37% ownership of Paranovus Cayman, 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 $9,342,339 after deducting underwriting discounts and commissions and offering expenses. In addition, the Company granted to its underwriters, Univest Securities, LLC as the Underwriter Representative, an option for a period of 45 days after the closing of the initial public offering to purchase up to 15% of the total number of the Company’s Ordinary Shares to be offered by the Company pursuant to the initial public offering (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. During the reporting periods, the Company has several subsidiaries in PRC. Details of the Company and its operating subsidiaries are set out below: Name of Entity Date of Incorporation Place of Incorporation Registered Capital % of Ownership Principal Activities Happiness (Fuzhou) E-commerce Co., Ltd (“ Happiness Fuzhou”) June 1, 2018 PRC US$ 10,000,000 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 comes Health Products Co., Ltd. May 19, 1998 PRC RMB 2,000,000 100% by Fujian Happiness Research, development, production and selling of edible fungi Fujian Shennongjiagu Development Co., Ltd.(“Shennong”) December 10, 2012 PRC RMB 51,110,000 70% by Fujian Happiness Advertising service, online sales, food sales, data service, information consulting service Fuzhou Hekangyuan Trading Co., Ltd. (“Hekangyuan”) October 13, 2017 PRC RMB 10,000,000 100% by Fujian Happiness Advertising service, online sales, food sales, commodity sales, information consulting service 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”) (b) August 26, 2020 PRC RMB 10,000,000 51% by Happy Buy Online sales Fujian Lever Media Co., Ltd. (“Fujian Lever”) (b) March 1, 2021 PRC RMB 10,000,000 51% by Hangzhou C’est la vie Online sales Shunchang Baolong Electronic Commerce Co., Ltd. (b) December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Shunchang Shihong Electronic Commerce Co., Ltd. (b) December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd. (b) 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”) (a) February 8, 2021 PRC RMB 100,000 100% by Hangzhou C’est la vie Online sales Putian City Hanjiang District Qiyao Trading Co., Ltd. (a) February 9, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Putian City Hanjiang District Zhiran Trading Co., Ltd. (a) February 8, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”) (b) November 30, 2020 PRC RMB 10,000,000 100% by Hangzhou C’est la vie Online sales Shunchang Qida Electronic Commerce Co., Ltd. (a) December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Penghong Electronic Commerce Co., Ltd. (a) December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Fujian Daji Media Co., Ltd. (“Daji”) (c) February 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Live streaming service Happy Buy (Nanping) Automobile Sales Co., Ltd. (d) December 15, 2020 PRC RMB 5,000,000 100% by Happy Buy Automobile Automobile sales Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”) (c) December 29, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service Shunchang Haiwushuo Brand Management Co., Ltd. (“Shunchang Haiwushuo”) September 2, 2021 PRC RMB 1,000,000 51% by Happy Buy Advertising service, online sales Shunchang Salt Sweet Network Technology Co., Ltd. (a) July 9, 2021 PRC RMB 500,000 100% by Shunchang Haiwushuo Online Sales Haiwushuo (Hangzhou) Media Technology Co., Ltd. (a) October 29, 2021 PRC RMB 1,000,000 100% by Shunchang Haiwushuo Advertising service, online sales Shunchang County Partners Supply Chain Management Co., Ltd. (b) June 11, 2021 PRC RMB 2,000,000 51% by Hangzhou C’est la vie Online Sales, Advertising Shunchang Youxi e-commerce Co., Ltd. (b) May 18, 2021 PRC RMB 200,000 100% by Fujian Seravi Online Sales Haiwushuo (Fujian) Food Co., Ltd. (a) March 9, 2022 PRC RMB 10,000,000 51% by Nanping Happiness Advertising service, online sales Happy Unicorn (Hangzhou) Network Technology Co., Ltd. (“Happy Unicorn”) (c) June 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Advertising service, online sales, automobile sales, Internet technology service Ganzhou Youjia New Energy Automobile Sales Co., Ltd. (a) May 10, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales Happy car source (Ningbo) Automobile Service Co., Ltd. (a) May 14, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales Wuhan Xingfu Youxuan Automobile Sales Co., Ltd. (a) May 12, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales Taochejun (Hangzhou) New Energy Technology Co., Ltd. (“Hangzhou Taochejun”) July 12, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Technology service, automobile sales Zhejiang Yiche Chuxing Technology Co., Ltd. (a) May 26, 2020 PRC RMB 10,000,000 100% by Hangzhou Taochejun Technology service, automobile sales Happy Travel Technology (Fujian) Co., Ltd. (e) October 27, 2020 PRC RMB 50,000,000 100% by Fujian Taochejun Technology service, automobile sales Sichuan Taochejun New Energy Technology Co., Ltd. July 13, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales. Taochejun (Xi’an) Car Rental Co., Ltd. (a) August 20, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales, online sales, car rental service Taochejun (Fuzhou) Automotive Technology Co., Ltd. (g) December 27, 2019 PRC RMB 30,000,000 60% by Fujian Taochejun Automobile sales, online sales Fuzhou Taochejun Culture Media Co., Ltd. (f) July 12, 2021 PRC RMB 1,000,000 100% by Fujian Taochejun Advertising service, information consulting service, Taochejun (Hainan) New Energy Technology Co., Ltd. June 15, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales, online sales, car rental service Hunan Xingfu Vehicle Source Technology Co., Ltd. (a) May 28, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun NEV charging technology service, advertising service, automobile sales, automobile parts sales Happy Automobile Service (Nanping) Co., Ltd. (e) December 4, 2020 PRC RMB 30,000,000 70% by Fujian Taochejun Automobile sales, online sales Hangzhou Happiness Youche Automobile Partnership (Limited partnership) (a) December 29, 2021 PRC RMB 3,000,000 60% by Nanping Happiness automobile parts sales Taochejun (Fujian) automobiles Co., ltd April 27, 2021 PRC RMB 30,000,000 100% by Nanping Happiness Automobile sales (a) During the year ended March 31, 2023, the Company closed 15 subsidiaries to optimize the Company’s structure on online store business. (b) Hangzhou C’est la vie and its subsidiaries were focus on the online store operation. In August 2022, the Company disposed Hangzhou C’est la vie and its subsidiaries to a third party. (c) Happy Unicorn and its subsidiaries were focus on the online store operation and automobile sales. In August 2022, the Company disposed Happy Unicorn and its subsidiaries to a third party. (d) On October 9, 2022, the Company transferred the 100% of the equity interests of Happy Buy (Nanping) Automobile Sales Co., Ltd. to a third party due to the business optimization. (e) On October 9, 2023, the Company transferred the 100% of the equity interests of Happy Travel Technology (Fujian) Co., Ltd. and 70% of the equity interests of Happy Automobile Service (Nanping) Co., Ltd to a third party due to the business optimization. (f) Fuzhou Taochejun Culture Media Co., Ltd. was disposed to a third party on October 26, 2023 due to the business optimization. (g) Taochejun (Fuzhou) Automotive Technology Co., Ltd. was focus on the online automobiles sales. On December 16, 2023, the Company disposed Taochenjun (Fuzhou) to a third party. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company incurred a net loss of US$72,187,116 during the financial year ended March 31, 2023 and, as of that date, the Company’s current liabilities exceeded its current assets by US$11,167,107. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Notwithstanding the above, the Company's continues to have a reasonable expectation that adequate resources to continue in operation through disposing the assets with losses and improving the remaining operation with positive cash contributions for at least the next 12 months and that the going concern basis of operation these finance statement remains appropriate based on the following factors: To sustain its ability to support the Company's operating activities, the Company considered supplementing its sources of funding through the following: ● Cash and cash equivalents generated from operations: ● The banking facilities from their bankers for their working capital requirements for the next twelve months will be available as and when required; ● Funding from the existing financial institutions with existing available credit lines; ● Obtaining funds through future private placements or public offerings. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
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 (“U.S. GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Paranovus Cayman and its subsidiaries (collectively, the “Company”). All inter-company balances and transactions have been eliminated upon consolidation. Non-controlling interests For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated statements of comprehensive (loss)/income to distinguish the interests from that of the Company. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows. 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, allowance for credit losses, goodwill impairment, income taxes related to realization of deferred tax assets and uncertain tax position, provisions necessary for contingent liabilities and purchase price allocation in connection with the business combination. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates. Business combination Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred. Accounting Standards Codification (“ASC”) 805 establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date. 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 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 operation and other comprehensive (loss)/ 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. Prepaid expenses and other current assets Prepaid expenses and other current assets mainly represents cash prepaid to the suppliers, the technical providers and the investment receivables from the investors. Prepaid expenses and other current assets primarily consist of advances to vendors for purchasing goods, advances to the technical provides that have not been received or provided. Prepaid expenses and other current assets are classified as current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. 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 fair value of the reporting unit and the carrying amount 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, 2023, goodwill resulting from business acquisitions have been allocated into three reporting units, including Shennong, Hekangyuan and 2Lab3. The Company evaluates if goodwill impairment may be indicated on quarterly basis and performs the annual goodwill impairment assessment as of March 31. As of March 31, 2023, the Company qualitatively assessed relevant events and circumstances, including macroeconomics conditions, industry and market considerations, its overall financial performance, and concluded by weighing all these factors in their entirety that it was more likely than not the fair value of the Company’s reporting unit was lower than its respective carrying value. Property, Plant and Equipment Property, plant 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 Intangible assets with definite lives are initially recorded at cost. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives. Intangible assets with indefinite lives should not be amortized but should be tested for impairment at least annually or when event occurs or circumstances that could indicate that the asset might be impaired. The estimated useful lives of intangible assets are as follows: Useful life Land use right 50 years Licensed software 5-10 years Trademark 10 years Customer relationship 5 years Proprietary technology 5 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, 2023 and 2022. Short-term bank borrowings Short-term bank borrowings represent the amounts due to various banks that are due within one year. Short-term bank borrowings are presented as current liabilities unless the Company has an unconditional right to defer settlement for at least 12 months after the financial year end date, in which case they are presented as non-current liabilities. Short-term bank borrowings are initially recognized at fair value (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using effective interest method. Short-term bank borrowings costs are recognized in profit or loss using the effective interest method. 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, income tax assets and liabilities and income taxes payable and to approximate the fair value of the respective assets and liabilities at March 31, 2023 and 2022 based upon the short-term nature of the assets and liabilities. Warrants The Company accounts for the warrants pursuant to share exchange agreements in accordance with the guidance contained in ASC 815, under which the warrants do not meet the criteria for equity classification and must be recorded as liabilities. All such warrant agreements contain fixed strike prices and number of shares that may be issued at the fixed strike price, and do not contain exercise contingencies that adjust the strike price or number of shares issuable upon settlement of the warrants. All such warrant agreements are exercisable at the option of the holder and settled in shares of the Company. The warrants are qualified as equity-linked instrument embedded in a host instrument whereby do not meet definition of derivative, therefore it’s not required to separate the embedded component from its host. The Company treats a modification of the terms or conditions of an equity award in accordance with ASC Topic 718-20-35-3, by treating the modification as an exchange of the original award for a new award. In substance, the entity repurchases the original instrument by issuing a new instrument of equal or greater value, incurring additional compensation cost for any incremental value. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award determined in accordance with the provisions of ASC Topic 718-20-35-3 over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at that date. There is no modification of the terms or conditions of the warrant issued by the Company. Deconsolidation The Company accounts for the deconsolidation of a subsidiary by recognizing a gain or loss in net income/loss attributable to the parent, measured as the difference between: a. The aggregate of all of the following: 1. The fair value of any consideration received; 2. The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated; 3.The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated. b. The carrying amount of the former subsidiary’s assets and liabilities. If the deconsolidation transactions were transacted with related parties under common control, the Group should not recognize gain on sales of the subsidiaries and losses should be recognized by the Company only when an impairment in value is indicated. The Company has continued to operate the online store business through the other subsidiaries. Since the deconsolidated subsidiaries’ operating revenue was less than 1% of the Company’s consolidated revenue and the disposal did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for these subsidiaries were not reported as discontinued operations in the consolidated financial statements. Revenue Recognition The Company generates its revenue mainly from sales of healthcare products, automobiles, online store sales and internet information and advertising services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer 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. Revenue is the transaction price the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Company generates revenues from providing transportation services and warehouse storage and management services. No practical expedients were used when adoption ASC 606. Revenue recognition policies for each type of revenue stream are as follow: Healthcare products The Company sells nutraceutical and dietary supplements to third-party distributors and experience stores. Experience stores are owned by third parties, which are located in tourist sites where the sales consultants gave in-depth presentation of the origin, tradition and history of the Company’s products. Tourists are guided to enjoy a presentation of traditional Chinese herb culture offered by the distributors in the experience store and be presented with the Company’s healthcare products. The Company is a principal for the healthcare product sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. 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 distributors’ or the experience stores’ premises and evidenced by signed 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 distributors or experience stores and the signing of their acknowledgment. Distributors and experience stores are required to pay under the customary payment terms, which is generally less than six months. According to the sales agreement, the healthcare product sold cannot be returned after the acknowledgement. Automobile The Company sold automobiles in fiscal year 2022. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. The Company is a principal for the automobiles sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. 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. According to the contract, the automobile sold cannot be returned after the customer acknowledgement. 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, which is within 3 months after sales. Online store The Company sells various goods through its online store business in fiscal year 2022. For all sales, the Company requires a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. The Company is a principal for the online store sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. 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 unless the customers require sales return within 7 days after the acknowledgement. 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. The Company is a principal for the services as i) the Company has the right to determine the sales price; ii) the Company bears the collection risks; iii) the Company is responsible to the service provided. 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. No sales return is permitted after the service performed according to the contract signed. 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. 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. All of the Company’s revenues are recognized on a gross basis and presented as revenue on the consolidated statements of operations and comprehensive income/(loss). The following table presents an overview of our sales from our product lines for the years ended March 31, 2023, 2022 and 2021: For the years ended March 31, 2023 2022 2021 Healthcare products $ 31,770,835 $ 30,323,831 $ 45,389,702 Online store 42,201,865 28,014,109 13,473,626 Internet information and advertising 1,197,348 10,538,943 9,245,019 Automobile 22,982,777 20,611,775 3,376,356 Revenue $ 98,152,825 $ 89,488,658 $ 71,484,703 Cost of Revenues Healthcare products Cost of revenue of healthcare product is mainly composed of the cost of product sales, employees, depreciation expenses and other manufacturing overhead expenses that are directly attributable to the business. Automobile Cost of revenue of automobile is mainly composed of the cost of automobile and other miscellaneous expenses that are directly attributable to the business. Online store Cost of revenue of online store is mainly composed of the cost of goods sales and other miscellaneous expenses that are directly attributable to the business. Internet information and advertising service Cost of revenue of automobile is mainly composed of the cost of service provide and other miscellaneous expenses that are directly attributable to the business. Government Grants 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, 2023, 2022 and 2021, the Company recognized government grants of $10,134, $11,893 and $63,520, 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 $46,950, $291,170 and $1,104,120 for the years ended March 31, 2023, 2022 and 2021, respectively. Advertising Costs Advertising costs expensed as economic benefits are consumed in accordance with ASC 720-35, “Other Expenses-Advertising Costs”. Advertising costs were $51,805,596, $26,210,291 and $5,720,458 for the years ended March 31, 2023, 2022 and 2021, 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 the equity incentive plan, 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. Option The fair value of options issued pursuant to the Company’s option plans at the grant date was estimated using the Black-Scholes option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including the expected term of the options, the estimated forfeiture rates and the expected stock price volatility. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The Group uses projected volatility rates based upon the Group’s historical volatility rates. These assumptions are inherently uncertain. Different assumptions and judgments would affect the Company’s calculation of the fair value of the underlying ordinary shares for the options granted, and the valuation results and the amount of option would also vary accordingly. 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, 2023 and 2022. 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, 2023, our PRC subsidiaries had an aggregate retained deficit of approximately RMB 269.46 million (US$39.21million) 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 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable consisted of the following as of March 31, 2023 and 2022: As of March 31, As of March 31, 2023 2022 Accounts receivable, gross $ 2,560,894 $ 27,911,421 Less: allowance for doubtful accounts 854,615 463,514 Accounts receivable $ 1,706,279 $ 27,447,907 Movement of allowance for doubtful accounts As of March 31, As of March 31, 2023 2022 Beginning balance $ 463,514 $ - Provision for doubtful accounts 854,615 463,514 Written-off (463,514 ) - Ending balance $ 854,615 $ 463,514 The Company recorded net of allowance for doubtful accounts of $854,615 as of March 31, 2023 due to uncollectible balances from three companies over 1 year. The Company gives its customers credit period of 180 days and continually assesses the recoverability of uncollected accounts receivable. As of March 31, 2023, the balance of the Company’s accounts receivable was almost within 180 days. As of March 31, 2022, the balance of the Company’s accounts receivable was almost within 180 days. The Company believes the balances of its accounts receivable are fully recoverable as of March 31, 2023. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES All the inventories are located in China. Inventories consisted of the following as of March 31, 2023 and 2022: As of March 31, As of March 31, 2023 2022 Raw materials $ 282,618 $ 786,082 Work in process - - Finished goods 52,401 603,479 Total $ 335,019 $ 1,389,561 No No |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022: As of As of 2023 2022 Prepayments to suppliers $ 1,252,094 $ 4,177,537 Loans receivables (a) 254,668 727,765 Deposit - 691,070 Prepayments to technical provider 618,479 669,481 VAT-in - 560,155 Prepayment to Weilan (b) - 448,946 Receivable from disposal of subsidiaries - 408,106 Investment receivables from the investors 2,000,000 - Other current assets 263,945 226,173 Total $ 4,389,186 $ 7,909,233 (a) Loans receivables to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from six to nine months and the interest rate from 0.03% to 0.5% per day. (b) In the year ended March 31, 2022, the Company signed a cooperation agreement with a third party to invest in Hangzhou Weilan Automobile Co., Ltd. (“Weilan”) and paid $448,946 to the shareholders of Weilan. In June 2022, both parties agreed to terminate the cooperation agreement and the Company collected the full prepayment. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Mar. 31, 2023 | |
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, 2023 and 2022: As of March 31, As of March 31, 2023 2022 Buildings $ 14,111,170 $ 15,345,997 Machinery 1,585,671 1,918,918 Furniture, fixture and electronic equipment 74,719 179,667 Vehicles 20,636 176,606 Total property plant and equipment, at cost 15,792,196 17,621,188 Less: accumulated depreciation (7,321,924 ) (6,374,373 ) Property, plant and equipment, net $ 8,470,272 $ 11,246,815 As of March 31, 2023 and 2022, the Company pledged its building with a carrying value of approximately $1.2 million and $2.1 million, respectively, as the collateral for short-term bank loans (see Note 10 Depreciation expense was $1,615,173, $1,553,399 and $849,454 for the years ended March 31, 2023, 2022 and 2021, respectively. Depreciation allocated as manufacturing overhead to inventories was $ 278,111, $621,654 and $589,610 for the years ended March 31, 2023, 2022 and 2021, respectively. The carrying amount of disposed property, plant and equipment recognized for the year ended March 31, 2023 and 2022 were amounted to $267,719 and $505,969, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7 – INTANGIBLE ASSETS, NET As of As of 2023 2022 Land use right, cost $ 841,421 $ 910,808 Customer relationship ( Note 15 8,149,366 8,822,973 Proprietary technology 1,900,000 Trademark 10,187 11,027 Software, cost 1,041,799 1,127,710 Total 11,942,773 10,872,518 Less: accumulated amortization (2,496,518 ) (771,113 ) Intangible assets, net $ 9,446,255 $ 10,101,405 As of March 31, 2023 and 2022, the Company pledged its land use right on its land with a carrying value of $83,520 (12,120 square meters) and $93,140 (12,120 square meters), respectively, as the collateral for a short-term bank loan (see Note 10). Additions to intangible assets for the year ended March 31, 2023 amounting to $1,900,000 were acquired from issuing ordinary shares with non-cash transactions. Amortization expense was $1,763,779, $633,807 and $31,425 for the years ended March 31, 2023, 2022 and 2021, respectively. Estimated future amortization expense is as follows as of March 31, 2023: Years ending March 31, Amortization 2024 $ 2,132,482 2025 2,132,482 2026 2,132,482 2027 2,132,482 2028 916,327 Thereafter - $ 9,446,255 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill [Abstract] | |
GOODWILL | NOTE 8 – GOODWILL Goodwill consisted of the following as of March 31, 2023 and 2022: As of As of 2023 2022 Shennong $ 1,250,470 $ 6,288,219 Hekangyuan 21,275 3,627,427 2Lab3 5,184,036 - Daji - 168,555 Total $ 6,455,781 $ 10,084,201 The changes in the carrying amount of goodwill for the years ended March 31, 2023 and 2022 were as follow: As of As of 2023 2022 Balance as of March 31 $ 10,084,201 $ 162,832 Acquisitions (Note 15) 5,184,036 20,237,015 Disposal (168,555 ) - Impairment (7,872,696 ) (10,309,745 ) Exchange gain and loss (771,205 ) (5,901 ) Goodwill, net $ 6,455,781 $ 10,084,201 The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong, and cooperation of developing the health commodities business stably, combining the production and supply, jointly build a perfect supply chain system with Hekangyuan, new development of consulting, marketing, design, and software development services to empower our clients to adapt and thrive in the Web 3.0 era Due to the continually influence of the COVID-19 pandemic, Shennong and Hekangyuan’s operating result decreased significantly. The Company assessed qualitative factors and performed the quantitative impairment test. As of March 31, 2023 and 2022, the Company recognized impairment amounted to $7,872,696 and $10,309,745, respectively. |
Prepaid Assets
Prepaid Assets | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Assets [Abstract] | |
PREPAID ASSETS | NOTE 9 – PREPAID ASSETS Prepaid assets consisted of the following as of March 31, 2023 and 2022: As of March 31, As of March 31, 2023 2022 Prepayments for advertising or marketing $ 2,138,273 $ 5,485,325 Prepayment of celebrity endorsement fee 43,657 141,774 Total $ 2,181,930 $ 5,627,099 |
Other Payables and Accrued Liab
Other Payables and Accrued Liabilities | 12 Months Ended |
Mar. 31, 2022 | |
Other Payables and Accrued Liabilities [Abstract] | |
OTHER PAYABLES AND ACCRUED LIABILITIES | NOTE 10 – OTHER PAYABLES AND ACCRUED LIABILITIES Other payables and accrued liabilities consisted of the following as of March 31, 2023 and 2022: As of March 31, As of March 31, 2023 2022 Advances from customers $ 5,060,149 $ 3,310,906 Employee benefits payable 46,485 130,439 Other payables - 28,423 Total $ 5,106,634 $ 3,469,768 |
Short-Term Bank Borrowings
Short-Term Bank Borrowings | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK BORROWINGS | NOTE 11 – SHORT-TERM BANK BORROWINGS Short-term bank borrowings consisted of the following as of March 31, 2023 and 2022: As of March 31, As of March 31, 2023 2022 Industrial Bank Co., Ltd $ 1,018,672 $ 1,102,675 Postal Saving Bank of Chin 1,076,880 1,165,685 Rural Credit Cooperative (ShunChang) 145,524 - Total $ 2,241,076 $ 2,268,360 On May 4, 2018, the Company entered into a bank loan agreement with Industrial Bank Co., Ltd to borrow $1,039,578 (RMB 7.0 million) 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 7.0 million. 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. 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 7.0 million) bearing interest rate at LPR plus 1.45% per annum, payable monthly. The loan was expired and paid off in April 2021. In addition, the Company entered into a loan agreement of $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 0.75% on June 9, 2021 and repaid it on June 5, 2022. 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) 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 Fuzhou. 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 12, 2022 and January 13, 2022, 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 4.25%, which was due on January 10, 2023 and February 12, 2023, respectively. In addition, on April 7, 2020 and January 15, 2021, the Company entered into a loan agreement of RMB 1.7 million and RMB 6.0 million with Postal Saving Bank of China as working capital for one year, respectively. The loans bear a fixed interest rate of LPR+20 BP. The Company repaid RMB 1.7 million on April 6, 2021 and April 8, 2021, and repaid RMB 6.0 million on January 12, 2022. The carrying values of the Company’s pledged assets to secure short-term borrowings by the Company are as follows: As of March 31, As of March 31, 2023 2022 Buildings, net $ 1,176,100 $ 2,076,215 Land use rights, net 83,520 93,140 Total $ 1,259,620 $ 2,169,355 For the years ended March 31, 2023, 2022 and 2021, interest expense on all short-term bank loans amounted to $72,303, $85,993 and $111,790 respectively. |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Mar. 31, 2023 | |
Share Based Compensation [Abstract] | |
SHARE BASED COMPENSATION | NOTE 12 – SHARE BASED COMPENSATION 2020 Equity incentive plan In February 2021, the Company adopted the 2020 Equity incentive plan which allows the Company to offer incentive awards to employee, directors and consultants (collectively, “the Participants”). Under the 2020 Equity incentive plan, the Company may issue incentive awards to the Participants to purchase no more than 3,500,000 ordinary shares with no restrictive legend affixed. Share-based compensation expense of $1,086,231 and $778,423 was immediately recognized in general and administrative expenses for the year ended March 31, 2022 and 2021 with no vesting conditions. No share-based compensation expense was recognized for the year ended Marche 31, 2023. The fair values of share units are determined based on the fair value of the grant date of the Company’s ordinary shares. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13 – SHAREHOLDERS’ EQUITY Ordinary shares Paranovus Cayman 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 Fuzhou. A Reorganization of the legal structure was completed in August 2018. The Reorganization involved the incorporation of PARANOVUS ENTERTAINMENT TECHNOLOGY LIMITED, a Cayman Islands holding company; Happiness Biology Technology Group Limited, a holding company established in Hong Kong, PRC; Happiness (Fuzhou) E-commerce Co., Ltd, a holding company established in Fujian, PRC; and the transfer of 100% ownership of Fujian Happiness from the former shareholders to Happiness Fuzhou. In May 2018, the Company received $627,628 (RMB 4.0 million) 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. On June 21, 2021, the Company issued an aggregate of 231,445 Class A ordinary shares of the Company to certain employees and a director for their services. The total compensation cost was $351,796. On June 25, 2021, the Company entered several Securities Purchase Agreement with non-US investors. Pursuant to which, the Company issued 1,240,000 Class A ordinary shares to the purchasers with a total consideration amounted $2,157,600. The Company collected total net proceeds of $2,157,600 after deducting commissions and offering expenses. On October 14, 2021, the Company issued an aggregate of 113,458 Class A ordinary shares of the Company to certain employees and a director for their services. The total compensation cost was $99,843. On October 20, 2021, the Company entered into a certain equity agreement with Shennong for the purchase of 70% of the equity interest of Shennong at a consideration of RMB 103.0 million (approximately $16.1 million). The total consideration paid for the Equity Interests are RMB 48.0 million (approximately $7.5 million) in cash and 4,200,000 Class A ordinary shares of the Company. The Company issued an aggregate of 4,200,000 ordinary shares of the Company to certain transaction on November 12, 2021. The total compensation cost was $3,736,320. On October 21, 2021, the Company held its annual meeting of shareholders for its fiscal year ending March 31, 2021. The Company approved as a special resolution an alteration to the share capital of the Company by: a: the conversion of each issued paid up Ordinary Share with a par value of $0.0005 each into stock (the “Stock”); b: the alteration of the authorized issued share capital of the Company from (i) US$50,000 divided into 90,000,000 Ordinary Shares with a par value of US$0.0005 each and 10,000,000 Preferred Shares with a par value of US$0.0005 each; to (ii) 70,000,000 Class A Ordinary Shares with a par value of $0.0005 each, 20,000,000 Class B Ordinary Shares with a par value of US$0.0005 each and 10,000,000 Preferred Shares with a par value of US$0.0005 each. Class A Ordinary Shares was entitled to one vote per share and to receive notice of, attend at and vote as a member at any general meeting of the Company; and be entitled to such dividends as the Board may from time to time declare; and generally be entitled to enjoy all of the rights attaching to shares. Class B Ordinary Shares was entitled to twenty (20) votes per share and to receive notice of, attend at and vote as a member at any general meeting of the Company; be entitled to such dividends as the Board may from time to time declare; and generally be entitled to enjoy all of the rights attaching to shares. On January 12, 2022, the Company issued an aggregate of 1,133,200 Class A ordinary shares of the Company to certain employees for their services. The total compensation cost was $634,592. On January 20, 2022, the Company entered several Securities Purchase Agreement with non-US persons. Pursuant to which, the Company issued 12,500,000 Class A ordinary shares to the purchasers with a total consideration amounted $10,000,000. The Company collected total net proceeds of $10,000,000 after deducting commissions and offering expenses. On March 4, 2022, the Company entered into a certain equity transfer agreement with Hekangyuan for the purchase of 100% of the equity interest of Hekangyuan at a consideration of $12.0 million. The total consideration paid for the Equity Interests are $8.0 million in cash and 10,000,000 Class A ordinary shares of the Company. The Company issued an aggregate of 10,000,000 ordinary shares of the Company to certain transaction on March 7, 2022. The total compensation cost was $3,560,000. On March 10, 2022, the Company entered several Securities Purchase Agreement with non-US investors. Pursuant to which, the Company issued 19,200,000 Class A ordinary shares to the purchasers with a total consideration amounted $6,720,000. The Company collected total net proceeds of $6,720,000 after deducting commissions and offering expenses. On April 21, 2022, 150,000 Class A Ordinary Shares owned by Xuezhu Wang were reconverted into Class B Ordinary Shares. On October 10, 2022, a Share Consolidation of the Company’s ordinary shares at a ratio of one-for-twenty (the “Share Consolidation”) was effected as determined by the Board of Directors. At the time the Share Consolidation is effective, our authorized ordinary shares will be consolidated at the same ratio. The authorized share capital of the Company shall be decreased from an authorized share capital of US$50,000 divided into 70,000,000 Class A ordinary shares, par value US$0.0005 each, 20,000,000 Class B ordinary shares, par value US$0.0005 each, and 10,000,000 preferred shares with a par value of US$0.0005 each to an authorized share capital of US$50,000 divided into 3,500,000 Class A ordinary shares, par value US$0.01 each, 1,000,000 Class B ordinary shares, par value US$0.01 each, and 500,000 preferred shares, par value US$0.01 each. On December 27, 2022, the Company entered into certain securities purchase agreement (the “SPA”) with certain sophisticated purchasers (the “Purchasers”), pursuant to which the Company agreed to sell 3,000,000 Class A ordinary shares, (the “Shares”) par value $0.01 per share (the “Ordinary Shares”), at a per share purchase price of $2.00. The gross proceeds to the Company from this transaction were approximately $6.0 million. On March 14, 2022, the Company entered into a certain equity transfer agreement with 2Lab3 LLC for the purchase of 100% of the equity interest of 2Lab3 LLC at a consideration of approximately $6 million. The total consideration paid for the Equity Interests is 1,375,000 Class A ordinary shares of the Company. The Company issued an aggregate of 1,375,000 Class A ordinary shares of the Company to certain transaction on March 28, 2023. The total compensation cost was $7,081,250. Non-controlling Interest Non-controlling interests represent the interest of non-controlling shareholders in Paranovus Entertainment Technology Limited based on their proportionate interests in the equity of that company adjusted for their proportionate share, which is 30% to 49% of the particular subsidiaries, 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 $7,622,765 as of March 31, 2023 and 2022. 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 $20,714,673 and $19,978,449 as of March 31, 2023 and 2022, respectively. As of March 31, 2023, our PRC subsidiaries had an aggregate retained deficit of approximately RMB269.46 million (US$39.21 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. 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 Weighted Contractual Intrinsic Options Outstanding as of March 31, 2020 - $ - - $ - Options Exercisable as of March 31, 2020 - $ - - Options granted 300,000 5.12 45 - Options forfeited - - - - Options expired (300,000 ) 5.12 45 - Options Outstanding as of March 31, 2023 and 2022 - $ - - $ - Options Exercisable as of March 31, 2023 and 2022 - $ - - $ - 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, 2023 are presented below: Number Weighted Contractual Intrinsic Warrants Outstanding as of March 31, 2020 160,000 $ 6.60 4.6 $ - Warrants granted - $ - - - Warrants forfeited - - - - Warrants exercised - $ - - - Warrants Outstanding as of March 31, 2021 160,000 $ 6.60 3.6 $ - Warrants Outstanding as of March 31, 2022 160,000 $ 6.60 2.6 $ - Warrants Outstanding as of March 31, 2023 160,000 6.60 1.6 - |
Taxes
Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 14 – 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, 2023 and 2022, 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, 2023 and 2022, respectively, and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from March 31, 2023. The following table reconciles the statutory rate to the Company’s effective tax rate: For the years ended March 31, 2023 2022 2021 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of PRC preferential tax rate (10.0 )% (10.0 )% (10.0 )% Effect of other deductible expenses 2.2 % 2.7 % 7.4 % Total 17.2 % 17.7 % 22.4 % The provision for income tax consisted of the following: For the years ended March 31, 2023 2022 2021 Current income tax provision $ 363,493 $ 195,678 $ 959,384 Deferred income tax provision 3,093,587 (3,921,905 ) - Total $ 3,457,080 $ (3,726,227 ) $ 959,384 The deferred income tax assets and liabilities as below: For the years ended March 31, 2023 2022 2021 Net accumulated loss-carry forward $ 20,634,308 $ 4,402,633 $ - Less: valuation allowance (20,634,308 ) (606,141 ) - Net deferred tax assets $ - $ 3,796,492 $ - For the years ended March 31, 2023 2022 2021 Beginning balance $ 4,402,633 $ - $ - Write-off - - - Change of valuation allowance 16,231,675 4,402,633 - Ending balance $ 20,634,308 $ 4,402,633 $ - For the years ended March 31, 2023 2022 2021 Intangible assets arising from acquisition $ (1,514,060 ) $ (2,079,986 ) $ - Total deferred tax liabilities $ (1,514,060 ) $ (2,079,986 ) $ - 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 deferred tax assets of nil (b) Taxes Payable The Company’s taxes payable as of March 31, 2023 and 2022 consisted of the following: As of March 31, As of March 31, 2023 2022 Income tax payable $ 57,167 $ 15,078 VAT payable 31,600 2,189 Other tax payables 54,593 19,958 Total $ 143,360 $ 37,225 |
Business Combination
Business Combination | 12 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 15 – BUSINESS COMBINATION Acquisition of 2Lab3 On March 28, 2023, the Company acquired 100% equity interest of 2Lab3 with 1,375,000 Class A Ordinary Shares of the Company for investing with non-cash transactions. The Class A Ordinary Shares were registered on March 28, 2023, valued at $5.15 per share. 2Lab3 is a company incorporated in Delaware of United States. It provides consulting, marketing, design, and software development services to empower its clients to adapt and thrive in the Web 3.0 era. The acquisition has further strengthened the transaction and service scenario of the Web 3.0 era of the Company. The results of 2Lab3 have been included in the consolidated financial statements of the Company since the acquisition date of March 28, 2023. The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified and contingent consideration as of the acquisition day. The identifiable intangible assets acquired upon acquisition were proprietary technology with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration was based on closing market price of the Company’s common share on the acquisition date. According to the independent valuation report, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values was as follows: Fair value of total consideration transferred: Equity instrument (1.374 million Class A Ordinary Shares issued) $ 7,081,250 Subtotal $ 7,081,250 Recognized amounts of identifiable assets acquired and liability assumed: Cash $ 555 Intangible asset –proprietary technology 1,900,000 Current liabilities (3,341 ) Total identifiable net assets $ 1,897,214 Fair value of non-controlling interests - Goodwill * $ 5,184,036 * The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the Web 3.0 era. 2lab3 believes that the decentralized networks of Web 3.0 offer an alternative to the status quo of the current digital world. 2lab3 also offers omni-channel marketing solutions for its clients to grow their internet presence and helps its clients design, launch, promote, and manage their virtual products, such as non-fungible tokens (NFTs). Acquisition of Shennong On November 12, 2021, the Company acquired 70% equity interest of Shennong with total cash consideration of $7.5 million (RMB 48.0 million) and 4,200,000 Class A ordinary shares of the Company. The Class A Ordinary Shares were registered on November 12, 2021, valued at $0.8896 per share. Shennong is a company incorporated in Fujian, the PRC and focus on agriculture products, electronic products and hardware products. Acquisition of Shennong has strengthen the supply-chain as well as the industrial integration of online store. According to the share transfer agreement signed with the transferer, the Company owns the right to require the transferer purchasing back all the equity interests in cash of RMB72.1million if the target company doesn’t meet the profit target. In the year ended March 31, 2021, the Company has paid $9.1 million (RMB 60.0 million) to the transferer as a deposit of this acquisition. And the overpaid RMB 12.0 million (approximately $1.9 million with $0.3 million exchange gain) has been collected back in the year ended March 31, 2022. The results of Shennong have been included in the consolidated financial statements of the Company since the acquisition date of November 12, 2021. The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified, contingent consideration and non-controlling interests as of the acquisition day. The identifiable intangible assets acquired upon acquisition were customer relationships with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration was based on closing market price of the Company’s common share on the acquisition date. According to the independent valuation report, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values. Fair value of the non-controlling interests was evaluated based on the equity value of Shennong derived by the discounted cash flow method after considering a discount for lack of control: Fair value of total consideration transferred: Equity instrument (4.2 million Class A Ordinary Shares issued) $ 3,736,320 Cash consideration 7,492,391 Subtotal $ 11,228,711 Recognized amounts of identifiable assets acquired and liability assumed: Cash $ 59,091 Current assets other than cash 13,591,825 Intangible asset – customer relationships 4,214,470 Current liabilities (13,650,246 ) Deferred tax liabilities (1,053,617 ) Total identifiable net assets $ 3,161,523 Fair value of non-controlling interests * 4,010,254 Goodwill * $ 12,077,442 * The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong. Non-controlling interest was recognized and measured at fair value on the acquisition date by the Company. Acquisition of Hekangyuan On March 4, 2022, the Company acquired 100% equity interest of Hekangyuan with total cash consideration of $8 million and 10,000,000 Class A Ordinary Shares of the Company. The Class A Ordinary Shares were registered on March 4, 202, valued at $0.365 per share. Hekangyuan is a company incorporated in Fujian, the PRC and focus on the sales of healthcare products and optical glasses. The acquisition has further strengthened the distribution network of the Company. According to the share transfer agreement signed with the transferer, the Company owns the right to require the transferer purchasing back all the equity interests in cash of $12.0 million if the target company doesn’t meet the profit target. The results of Hekangyuan have been included in the consolidated financial statements of the Company since the acquisition date of March 4, 2022. The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified and contingent consideration as of the acquisition day. The identifiable intangible assets acquired upon acquisition were customer relationships with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration was based on closing market price of the Company’s common share on the acquisition date. According to the independent valuation report, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values was as follows: Fair value of total consideration transferred: Equity instrument (10 million Class A Ordinary Shares issued) $ 3,650,000 Cash consideration 8,000,000 Subtotal $ 11,650,000 Recognized amounts of identifiable assets acquired and liability assumed: Cash $ 1,164 Current assets other than cash 1,882,139 Property, plant and equipment, net 187 Intangible asset – customer relationships 4,582,227 Current liabilities (1,829,733 ) Deferred tax liabilities (1,145,557 ) Total identifiable net assets $ 3,490,427 Fair value of non-controlling interests - Goodwill * $ 8,159,573 * The goodwill generated from the expected synergies from the cooperation of developing the health commodities business stably, combining the production and supply, jointly build a perfect supply chain system with Hekangyuan. The business combination accounting is provisionally complete for all assets and liabilities acquired on the acquisition date and the Company will continue to evaluate the asset values within the 1-year timeframe according to ASC 805. |
Deconsolidation
Deconsolidation | 12 Months Ended |
Mar. 31, 2023 | |
Deconsolidation [Abstract] | |
DECONSOLIDATION | NOTE 16 – DECONSOLIDATION During the year, the Company has disposed several subsidiaries supporting the online store business and automobiles sales to optimize the Company’s structure and recognized gain from the deconsolidation amounted to $383,376 for the year ended March 31, 2023, and recognized loss resulting from the deconsolidation amounted to $95,932, for the year ended March 31, 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 17 – COMMITMENTS AND CONTINGENCIES As of March 31, 2023 and 2022, 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, 2023 and 2022, Company has no pending legal proceedings. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 18 – SEGMENT REPORTING Before March 31, 2021, the Company’s CODM, chief executive officer, measures the performance of the Company based on metrics of revenue only and doesn’t focus on any profit of the business. Starting from April 1, 2021, the Company’s CODM, chief executive officer, measures the performance of each segment based on metrics of revenue and gross profit and uses these results to evaluate the performance of, and to allocate resources to each of the segments. As most of the Company’s long-lived assets are located in the PRC and most of the Company’s revenues are derived from the PRC, no geographical information is presented. The Company does not allocate assets and operating expenses to its segments as the CODM does not evaluate the performance of segments using asset and operating expenses information. For the year ended March 31, 2023, the Company has determined that it operates in four operating segments: (1) Healthcare products; (2) Automobile; (3) Online store; and (4) Internet information and advertising service. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different marketing strategies. The following tables present the summary of each reportable segment’s revenue and gross profit, which is considered as a segment operating performance measure, for the fiscal year ended March 31, 2023: Fiscal year ended March 31, 2023 Healthcare products Automobile Online store Internet information and advertising service Consolidated Revenues $ 31,770,835 $ 22,982,777 $ 42,201,865 $ 1,197,348 $ 98,152,825 Cost $ (28,551,175 ) $ (22,631,083 ) $ (40,739,395 ) $ (1,176,810 ) $ (93,098,463 ) Segment gross profit $ 3,219,660 $ 351,694 $ 1,462,470 $ 20,538 $ 5,054,362 Segment gross profit margin 10.1 % 1.5 % 3.5 % 1.7 % 5.1 % |
Customer and Supplier Concentra
Customer and Supplier Concentration | 12 Months Ended |
Mar. 31, 2023 | |
Customer and Supplier Concentration [Abstract] | |
CUSTOMER AND SUPPLIER CONCENTRATION | NOTE 19 – 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, 2023 and 2022, no individual customer accounted for more than 10% of the Company’s total revenues. For the year ended March 31, 2023, no individual supplier accounted for more than 10% of the Company’s total purchase. For the years ended March 31, 2022 and 2021, the Company purchased a substantial portion of raw materials from the third-party suppliers (25.9% of total raw materials purchase for the year ended March 31, 2022 and 16.8% of total raw materials purchase for the year ended March 31, 2021. As of March 31, 2022, the amounts due to these vendors was $4.3 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 – SUBSEQUENT EVENTS On April 10, the Company’s indirect wholly owned subsidiary (the “Seller”), Fujian Happiness Biotech Co., Limited (“Fujian Happiness”) and Fujian Hengda Beverage Co., Ltd, a PRC company which is not affiliate of the Company or any of its directors or officers (the “Purchaser”) entered into certain share purchase agreement (the “Disposition SPA”). Pursuant to the Disposition SPA, the Purchaser agreed to purchase the Fujian Happiness in exchange for cash consideration of RMB 78 million (approximately $11.3 million, the “Purchase Price”). Upon the closing of the transaction (the “Disposition”) contemplated by the Disposition SPA, the Buyer will become the sole shareholder of Fujian Happiness and as a result, assume all assets and liabilities of Fujian Happiness and subsidiaries owned or controlled by Fujian Happiness. The closing was approved by a majority of the Company’s shareholders on June 30, 2023. On April 10, the Company cancelled the 1,000,000 Class A Ordinary shares issued to the two investors. On May 3, 2023, Sichuan Taochejun New Energy Technology Co., Ltd. was dissolved. On May 23, 2023, Shunchang Haiwushuo Brand Management Co., Ltd. was transferred to a third party. The Company evaluated all events and transactions that occurred after March 31, 2023 through the date of the issuance of the consolidated financial statements on July 21, 2023 and noted that there were no other material subsequent events. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
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 (“U.S. GAAP”) and have been consistently applied. The accompanying consolidated financial statements include the financial statements of Paranovus Cayman and its subsidiaries (collectively, the “Company”). All inter-company balances and transactions have been eliminated upon consolidation. |
Non-controlling interests | Non-controlling interests For the Company’s non-wholly owned subsidiaries, a non-controlling interest is recognized to reflect the portion of equity that is not attributable, directly or indirectly, to the Company. Non-controlling interests are classified as a separate line item in the equity section of the Company’s consolidated balance sheets and have been separately disclosed in the Company’s consolidated statements of comprehensive (loss)/income to distinguish the interests from that of the Company. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows. |
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, allowance for credit losses, goodwill impairment, income taxes related to realization of deferred tax assets and uncertain tax position, provisions necessary for contingent liabilities and purchase price allocation in connection with the business combination. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates. |
Business combination | Business combination Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any non-controlling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any non-controlling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred. Accounting Standards Codification (“ASC”) 805 establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date. |
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 | Accounts Receivable 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 operation and other comprehensive (loss)/ 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. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets Prepaid expenses and other current assets mainly represents cash prepaid to the suppliers, the technical providers and the investment receivables from the investors. Prepaid expenses and other current assets primarily consist of advances to vendors for purchasing goods, advances to the technical provides that have not been received or provided. Prepaid expenses and other current assets are classified as current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. |
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 fair value of the reporting unit and the carrying amount 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, 2023, goodwill resulting from business acquisitions have been allocated into three reporting units, including Shennong, Hekangyuan and 2Lab3. The Company evaluates if goodwill impairment may be indicated on quarterly basis and performs the annual goodwill impairment assessment as of March 31. As of March 31, 2023, the Company qualitatively assessed relevant events and circumstances, including macroeconomics conditions, industry and market considerations, its overall financial performance, and concluded by weighing all these factors in their entirety that it was more likely than not the fair value of the Company’s reporting unit was lower than its respective carrying value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant 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 | Intangible Assets Intangible assets with definite lives are initially recorded at cost. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives. Intangible assets with indefinite lives should not be amortized but should be tested for impairment at least annually or when event occurs or circumstances that could indicate that the asset might be impaired. The estimated useful lives of intangible assets are as follows: Useful life Land use right 50 years Licensed software 5-10 years Trademark 10 years Customer relationship 5 years Proprietary technology 5 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, 2023 and 2022. |
Short-term bank borrowings | Short-term bank borrowings Short-term bank borrowings represent the amounts due to various banks that are due within one year. Short-term bank borrowings are presented as current liabilities unless the Company has an unconditional right to defer settlement for at least 12 months after the financial year end date, in which case they are presented as non-current liabilities. Short-term bank borrowings are initially recognized at fair value (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using effective interest method. Short-term bank borrowings costs are recognized in profit or loss using the effective interest method. |
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, income tax assets and liabilities and income taxes payable and to approximate the fair value of the respective assets and liabilities at March 31, 2023 and 2022 based upon the short-term nature of the assets and liabilities. |
Warrants | Warrants The Company accounts for the warrants pursuant to share exchange agreements in accordance with the guidance contained in ASC 815, under which the warrants do not meet the criteria for equity classification and must be recorded as liabilities. All such warrant agreements contain fixed strike prices and number of shares that may be issued at the fixed strike price, and do not contain exercise contingencies that adjust the strike price or number of shares issuable upon settlement of the warrants. All such warrant agreements are exercisable at the option of the holder and settled in shares of the Company. The warrants are qualified as equity-linked instrument embedded in a host instrument whereby do not meet definition of derivative, therefore it’s not required to separate the embedded component from its host. The Company treats a modification of the terms or conditions of an equity award in accordance with ASC Topic 718-20-35-3, by treating the modification as an exchange of the original award for a new award. In substance, the entity repurchases the original instrument by issuing a new instrument of equal or greater value, incurring additional compensation cost for any incremental value. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award determined in accordance with the provisions of ASC Topic 718-20-35-3 over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at that date. There is no modification of the terms or conditions of the warrant issued by the Company. |
Deconsolidation | Deconsolidation The Company accounts for the deconsolidation of a subsidiary by recognizing a gain or loss in net income/loss attributable to the parent, measured as the difference between: a. The aggregate of all of the following: 1. The fair value of any consideration received; 2. The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated; 3.The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated. b. The carrying amount of the former subsidiary’s assets and liabilities. If the deconsolidation transactions were transacted with related parties under common control, the Group should not recognize gain on sales of the subsidiaries and losses should be recognized by the Company only when an impairment in value is indicated. The Company has continued to operate the online store business through the other subsidiaries. Since the deconsolidated subsidiaries’ operating revenue was less than 1% of the Company’s consolidated revenue and the disposal did not constitute a strategic shift that would have a major effect on the Company’s operations and financial results. The results of operations for these subsidiaries were not reported as discontinued operations in the consolidated financial statements. |
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 core principle of the guidance is that an entity should recognize revenue to depict the transfer 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. Revenue is the transaction price the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s activities and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Company generates revenues from providing transportation services and warehouse storage and management services. No practical expedients were used when adoption ASC 606. Revenue recognition policies for each type of revenue stream are as follow: Healthcare products The Company sells nutraceutical and dietary supplements to third-party distributors and experience stores. Experience stores are owned by third parties, which are located in tourist sites where the sales consultants gave in-depth presentation of the origin, tradition and history of the Company’s products. Tourists are guided to enjoy a presentation of traditional Chinese herb culture offered by the distributors in the experience store and be presented with the Company’s healthcare products. The Company is a principal for the healthcare product sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. 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 distributors’ or the experience stores’ premises and evidenced by signed 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 distributors or experience stores and the signing of their acknowledgment. Distributors and experience stores are required to pay under the customary payment terms, which is generally less than six months. According to the sales agreement, the healthcare product sold cannot be returned after the acknowledgement. Automobile The Company sold automobiles in fiscal year 2022. For all sales, the Company requires a signed contract and sales order, which specifies pricing, quantity and product specifications. The Company is a principal for the automobiles sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. 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. According to the contract, the automobile sold cannot be returned after the customer acknowledgement. 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, which is within 3 months after sales. Online store The Company sells various goods through its online store business in fiscal year 2022. For all sales, the Company requires a sales order generated by the online store platform, which specifies pricing, quantity and product specifications. The Company is a principal for the online store sales as i) the Company produce or obtain control of the specified goods before transferring to the customers; ii) the Company has the right to determine the sales price; iii) the Company bears the risk of inventories and collection of consideration. 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 unless the customers require sales return within 7 days after the acknowledgement. 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. The Company is a principal for the services as i) the Company has the right to determine the sales price; ii) the Company bears the collection risks; iii) the Company is responsible to the service provided. 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. No sales return is permitted after the service performed according to the contract signed. 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. 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. All of the Company’s revenues are recognized on a gross basis and presented as revenue on the consolidated statements of operations and comprehensive income/(loss). The following table presents an overview of our sales from our product lines for the years ended March 31, 2023, 2022 and 2021: For the years ended March 31, 2023 2022 2021 Healthcare products $ 31,770,835 $ 30,323,831 $ 45,389,702 Online store 42,201,865 28,014,109 13,473,626 Internet information and advertising 1,197,348 10,538,943 9,245,019 Automobile 22,982,777 20,611,775 3,376,356 Revenue $ 98,152,825 $ 89,488,658 $ 71,484,703 |
Cost of Revenues | Cost of Revenues Healthcare products Cost of revenue of healthcare product is mainly composed of the cost of product sales, employees, depreciation expenses and other manufacturing overhead expenses that are directly attributable to the business. Automobile Cost of revenue of automobile is mainly composed of the cost of automobile and other miscellaneous expenses that are directly attributable to the business. Online store Cost of revenue of online store is mainly composed of the cost of goods sales and other miscellaneous expenses that are directly attributable to the business. Internet information and advertising service Cost of revenue of automobile is mainly composed of the cost of service provide and other miscellaneous expenses that are directly attributable to the business. |
Government Grant | Government Grants 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, 2023, 2022 and 2021, the Company recognized government grants of $10,134, $11,893 and $63,520, 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 $46,950, $291,170 and $1,104,120 for the years ended March 31, 2023, 2022 and 2021, respectively. |
Advertising Costs | Advertising Costs Advertising costs expensed as economic benefits are consumed in accordance with ASC 720-35, “Other Expenses-Advertising Costs”. Advertising costs were $51,805,596, $26,210,291 and $5,720,458 for the years ended March 31, 2023, 2022 and 2021, 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 the equity incentive plan, 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. |
Option | Option The fair value of options issued pursuant to the Company’s option plans at the grant date was estimated using the Black-Scholes option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including the expected term of the options, the estimated forfeiture rates and the expected stock price volatility. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The Group uses projected volatility rates based upon the Group’s historical volatility rates. These assumptions are inherently uncertain. Different assumptions and judgments would affect the Company’s calculation of the fair value of the underlying ordinary shares for the options granted, and the valuation results and the amount of option would also vary accordingly. |
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, 2023 and 2022. 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, 2023, our PRC subsidiaries had an aggregate retained deficit of approximately RMB 269.46 million (US$39.21million) 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 | Value-added Tax 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 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/ Loss per Share | Earnings/ Loss per Share Basic earnings/loss per share is computed by dividing net profit/loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two-class method. Using the two class method, net profit/loss is allocated between Class A ordinary shares, Class B ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights. 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 profit divided by the weighted average common shares outstanding for the period. Diluted earnings/loss per share is calculated by dividing net profit/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year/period. Dilutive equivalent shares are excluded from the computation of diluted earnings/loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the conversion of the stock options, using the treasury stock method. Except for voting rights, the Class A and Class B ordinary shares have all the same rights and therefore the earning/loss per share for both classes of shares are identical. The earning/loss per share amounts are the same for Class A and Class B ordinary shares because the holders of each class are entitled to equal per share dividends or distributions in liquidation. |
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 operation and other comprehensive (loss)/ 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, March 31, March 31, Period-end spot rate US$1=RMB 6.8717 US$1=RMB 6.3482 US$1=RMB 6.5713 Average rate US$1=RMB 6.8855 US$1=RMB 6.4083 US$1=RMB 6.7960 |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of operation and other comprehensive (loss)/ income. |
Segment Reporting | Segment Reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s CODM has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. In the year ended March 31, 2023, the CODM reviews financial information analyzed by customer, which only presented at the gross profit level with no allocation of operating expenses. Thus, the Company determined that it operates in four operating segments: (1) Healthcare products; (2) Automobiles; (3) Online store; and (4) Internet information and advertising service. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different marketing strategies. As the Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenue and expense are derived from within the PRC, no geographical segments are presented. |
Concentration of Risks | Concentration of Risks Exchange Rate Risks The Company operates in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between the US$ and the RMB. As of March 31, 2023 and 2022, cash and cash equivalents of $1,825,187 (RMB 12,542,139) and $19,571,668 (RMB 124,244,865), 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 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 several months. 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, 2023. The Company will regularly assess its business conditions and adopt measures to mitigate any new impact of the ongoing pandemic. |
Related Parties | Related Parties |
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. The Company is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. 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 for non-issuer entities is for fiscal years beginning after December 15, 2021. In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. For public business entities, the amendments in ASU 2020-06 are effective for public entities which meet the definition of a smaller reporting company are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The Company will adopt ASU 2020-06 effective January 1, 2024. Management is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements. The effect will largely depend on the composition and terms of the financial instruments at the time of adoption. The Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement on January 1, 2021 and the adoption of this standard did not have any material impact on the Company’s consolidated financial statements. |
Organization and Nature of Op_2
Organization and Nature of Operations (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of operating subsidiaries | 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 Capital % of Ownership Principal Activities Happiness (Fuzhou) E-commerce Co., Ltd (“ Happiness Fuzhou”) June 1, 2018 PRC US$ 10,000,000 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 comes Health Products Co., Ltd. May 19, 1998 PRC RMB 2,000,000 100% by Fujian Happiness Research, development, production and selling of edible fungi Fujian Shennongjiagu Development Co., Ltd.(“Shennong”) December 10, 2012 PRC RMB 51,110,000 70% by Fujian Happiness Advertising service, online sales, food sales, data service, information consulting service Fuzhou Hekangyuan Trading Co., Ltd. (“Hekangyuan”) October 13, 2017 PRC RMB 10,000,000 100% by Fujian Happiness Advertising service, online sales, food sales, commodity sales, information consulting service 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”) (b) August 26, 2020 PRC RMB 10,000,000 51% by Happy Buy Online sales Fujian Lever Media Co., Ltd. (“Fujian Lever”) (b) March 1, 2021 PRC RMB 10,000,000 51% by Hangzhou C’est la vie Online sales Shunchang Baolong Electronic Commerce Co., Ltd. (b) December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Shunchang Shihong Electronic Commerce Co., Ltd. (b) December 3, 2020 PRC RMB 100,000 100% by Fujian Lever Online sales Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd. (b) 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”) (a) February 8, 2021 PRC RMB 100,000 100% by Hangzhou C’est la vie Online sales Putian City Hanjiang District Qiyao Trading Co., Ltd. (a) February 9, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Putian City Hanjiang District Zhiran Trading Co., Ltd. (a) February 8, 2021 PRC RMB 100,000 100% by Putian Luochen Online sales Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”) (b) November 30, 2020 PRC RMB 10,000,000 100% by Hangzhou C’est la vie Online sales Shunchang Qida Electronic Commerce Co., Ltd. (a) December 3, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Shunchang Penghong Electronic Commerce Co., Ltd. (a) December 2, 2020 PRC RMB 30,000 100% by Fujian Seravi Online sales Fujian Daji Media Co., Ltd. (“Daji”) (c) February 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Live streaming service Happy Buy (Nanping) Automobile Sales Co., Ltd. (d) December 15, 2020 PRC RMB 5,000,000 100% by Happy Buy Automobile Automobile sales Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”) (c) December 29, 2020 PRC RMB 10,000,000 51% by Happy Buy Advertising service Shunchang Haiwushuo Brand Management Co., Ltd. (“Shunchang Haiwushuo”) September 2, 2021 PRC RMB 1,000,000 51% by Happy Buy Advertising service, online sales Shunchang Salt Sweet Network Technology Co., Ltd. (a) July 9, 2021 PRC RMB 500,000 100% by Shunchang Haiwushuo Online Sales Haiwushuo (Hangzhou) Media Technology Co., Ltd. (a) October 29, 2021 PRC RMB 1,000,000 100% by Shunchang Haiwushuo Advertising service, online sales Shunchang County Partners Supply Chain Management Co., Ltd. (b) June 11, 2021 PRC RMB 2,000,000 51% by Hangzhou C’est la vie Online Sales, Advertising Shunchang Youxi e-commerce Co., Ltd. (b) May 18, 2021 PRC RMB 200,000 100% by Fujian Seravi Online Sales Haiwushuo (Fujian) Food Co., Ltd. (a) March 9, 2022 PRC RMB 10,000,000 51% by Nanping Happiness Advertising service, online sales Happy Unicorn (Hangzhou) Network Technology Co., Ltd. (“Happy Unicorn”) (c) June 1, 2021 PRC RMB 10,000,000 51% by Happy Buy Advertising service, online sales, automobile sales, Internet technology service Ganzhou Youjia New Energy Automobile Sales Co., Ltd. (a) May 10, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales Happy car source (Ningbo) Automobile Service Co., Ltd. (a) May 14, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales Wuhan Xingfu Youxuan Automobile Sales Co., Ltd. (a) May 12, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales Taochejun (Hangzhou) New Energy Technology Co., Ltd. (“Hangzhou Taochejun”) July 12, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Technology service, automobile sales Zhejiang Yiche Chuxing Technology Co., Ltd. (a) May 26, 2020 PRC RMB 10,000,000 100% by Hangzhou Taochejun Technology service, automobile sales Happy Travel Technology (Fujian) Co., Ltd. (e) October 27, 2020 PRC RMB 50,000,000 100% by Fujian Taochejun Technology service, automobile sales Sichuan Taochejun New Energy Technology Co., Ltd. July 13, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales. Taochejun (Xi’an) Car Rental Co., Ltd. (a) August 20, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales, online sales, car rental service Taochejun (Fuzhou) Automotive Technology Co., Ltd. (g) December 27, 2019 PRC RMB 30,000,000 60% by Fujian Taochejun Automobile sales, online sales Fuzhou Taochejun Culture Media Co., Ltd. (f) July 12, 2021 PRC RMB 1,000,000 100% by Fujian Taochejun Advertising service, information consulting service, Taochejun (Hainan) New Energy Technology Co., Ltd. June 15, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun Automobile sales, online sales, car rental service Hunan Xingfu Vehicle Source Technology Co., Ltd. (a) May 28, 2021 PRC RMB 10,000,000 100% by Fujian Taochejun NEV charging technology service, advertising service, automobile sales, automobile parts sales Happy Automobile Service (Nanping) Co., Ltd. (e) December 4, 2020 PRC RMB 30,000,000 70% by Fujian Taochejun Automobile sales, online sales Hangzhou Happiness Youche Automobile Partnership (Limited partnership) (a) December 29, 2021 PRC RMB 3,000,000 60% by Nanping Happiness automobile parts sales Taochejun (Fujian) automobiles Co., ltd April 27, 2021 PRC RMB 30,000,000 100% by Nanping Happiness Automobile sales (a) During the year ended March 31, 2023, the Company closed 15 subsidiaries to optimize the Company’s structure on online store business. (b) Hangzhou C’est la vie and its subsidiaries were focus on the online store operation. In August 2022, the Company disposed Hangzhou C’est la vie and its subsidiaries to a third party. (c) Happy Unicorn and its subsidiaries were focus on the online store operation and automobile sales. In August 2022, the Company disposed Happy Unicorn and its subsidiaries to a third party. (d) On October 9, 2022, the Company transferred the 100% of the equity interests of Happy Buy (Nanping) Automobile Sales Co., Ltd. to a third party due to the business optimization. (e) On October 9, 2023, the Company transferred the 100% of the equity interests of Happy Travel Technology (Fujian) Co., Ltd. and 70% of the equity interests of Happy Automobile Service (Nanping) Co., Ltd to a third party due to the business optimization. (f) Fuzhou Taochejun Culture Media Co., Ltd. was disposed to a third party on October 26, 2023 due to the business optimization. (g) Taochejun (Fuzhou) Automotive Technology Co., Ltd. was focus on the online automobiles sales. On December 16, 2023, the Company disposed Taochenjun (Fuzhou) to a third party. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 5-10 years Trademark 10 years Customer relationship 5 years Proprietary technology 5 years |
Schedule of our sales from our product lines | For the years ended March 31, 2023 2022 2021 Healthcare products $ 31,770,835 $ 30,323,831 $ 45,389,702 Online store 42,201,865 28,014,109 13,473,626 Internet information and advertising 1,197,348 10,538,943 9,245,019 Automobile 22,982,777 20,611,775 3,376,356 Revenue $ 98,152,825 $ 89,488,658 $ 71,484,703 |
Schedule of foreign currency translation | March 31, March 31, March 31, Period-end spot rate US$1=RMB 6.8717 US$1=RMB 6.3482 US$1=RMB 6.5713 Average rate US$1=RMB 6.8855 US$1=RMB 6.4083 US$1=RMB 6.7960 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable | As of March 31, As of March 31, 2023 2022 Accounts receivable, gross $ 2,560,894 $ 27,911,421 Less: allowance for doubtful accounts 854,615 463,514 Accounts receivable $ 1,706,279 $ 27,447,907 |
Schedule of allowance for doubtful accounts | As of March 31, As of March 31, 2023 2022 Beginning balance $ 463,514 $ - Provision for doubtful accounts 854,615 463,514 Written-off (463,514 ) - Ending balance $ 854,615 $ 463,514 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of March 31, As of March 31, 2023 2022 Raw materials $ 282,618 $ 786,082 Work in process - - Finished goods 52,401 603,479 Total $ 335,019 $ 1,389,561 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses And Other Current Assets Abstract | |
Schedule of prepaid expenses and other current assets | As of As of 2023 2022 Prepayments to suppliers $ 1,252,094 $ 4,177,537 Loans receivables (a) 254,668 727,765 Deposit - 691,070 Prepayments to technical provider 618,479 669,481 VAT-in - 560,155 Prepayment to Weilan (b) - 448,946 Receivable from disposal of subsidiaries - 408,106 Investment receivables from the investors 2,000,000 - Other current assets 263,945 226,173 Total $ 4,389,186 $ 7,909,233 (a) Loans receivables to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from six to nine months and the interest rate from 0.03% to 0.5% per day. (b) In the year ended March 31, 2022, the Company signed a cooperation agreement with a third party to invest in Hangzhou Weilan Automobile Co., Ltd. (“Weilan”) and paid $448,946 to the shareholders of Weilan. In June 2022, both parties agreed to terminate the cooperation agreement and the Company collected the full prepayment. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | As of March 31, As of March 31, 2023 2022 Buildings $ 14,111,170 $ 15,345,997 Machinery 1,585,671 1,918,918 Furniture, fixture and electronic equipment 74,719 179,667 Vehicles 20,636 176,606 Total property plant and equipment, at cost 15,792,196 17,621,188 Less: accumulated depreciation (7,321,924 ) (6,374,373 ) Property, plant and equipment, net $ 8,470,272 $ 11,246,815 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets, net | As of As of 2023 2022 Land use right, cost $ 841,421 $ 910,808 Customer relationship ( Note 15 8,149,366 8,822,973 Proprietary technology 1,900,000 Trademark 10,187 11,027 Software, cost 1,041,799 1,127,710 Total 11,942,773 10,872,518 Less: accumulated amortization (2,496,518 ) (771,113 ) Intangible assets, net $ 9,446,255 $ 10,101,405 |
Schedule of estimated future amortization expense | Years ending March 31, Amortization 2024 $ 2,132,482 2025 2,132,482 2026 2,132,482 2027 2,132,482 2028 916,327 Thereafter - $ 9,446,255 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Goodwill [Abstract] | |
Schedule of goodwill | As of As of 2023 2022 Shennong $ 1,250,470 $ 6,288,219 Hekangyuan 21,275 3,627,427 2Lab3 5,184,036 - Daji - 168,555 Total $ 6,455,781 $ 10,084,201 |
Schedule of carrying amount of goodwill | As of As of 2023 2022 Balance as of March 31 $ 10,084,201 $ 162,832 Acquisitions (Note 15) 5,184,036 20,237,015 Disposal (168,555 ) - Impairment (7,872,696 ) (10,309,745 ) Exchange gain and loss (771,205 ) (5,901 ) Goodwill, net $ 6,455,781 $ 10,084,201 |
Prepaid Assets (Tables)
Prepaid Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Assets [Abstract] | |
Schedule of prepaid assets | As of March 31, As of March 31, 2023 2022 Prepayments for advertising or marketing $ 2,138,273 $ 5,485,325 Prepayment of celebrity endorsement fee 43,657 141,774 Total $ 2,181,930 $ 5,627,099 |
Other Payables and Accrued Li_2
Other Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Other Payables and Accrued Liabilities [Abstract] | |
Schedule of other payables and accrued liabilities | As of March 31, As of March 31, 2023 2022 Advances from customers $ 5,060,149 $ 3,310,906 Employee benefits payable 46,485 130,439 Other payables - 28,423 Total $ 5,106,634 $ 3,469,768 |
Short-Term Bank Borrowings (Tab
Short-Term Bank Borrowings (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank borrowings | As of March 31, As of March 31, 2023 2022 Industrial Bank Co., Ltd $ 1,018,672 $ 1,102,675 Postal Saving Bank of Chin 1,076,880 1,165,685 Rural Credit Cooperative (ShunChang) 145,524 - Total $ 2,241,076 $ 2,268,360 |
Schedule of secure short term borrowings | As of March 31, As of March 31, 2023 2022 Buildings, net $ 1,176,100 $ 2,076,215 Land use rights, net 83,520 93,140 Total $ 1,259,620 $ 2,169,355 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of options outstanding | Number Weighted Contractual Intrinsic Options Outstanding as of March 31, 2020 - $ - - $ - Options Exercisable as of March 31, 2020 - $ - - Options granted 300,000 5.12 45 - Options forfeited - - - - Options expired (300,000 ) 5.12 45 - Options Outstanding as of March 31, 2023 and 2022 - $ - - $ - Options Exercisable as of March 31, 2023 and 2022 - $ - - $ - |
Schedule of outstanding and exercisable warrants | Number Weighted Contractual Intrinsic Warrants Outstanding as of March 31, 2020 160,000 $ 6.60 4.6 $ - Warrants granted - $ - - - Warrants forfeited - - - - Warrants exercised - $ - - - Warrants Outstanding as of March 31, 2021 160,000 $ 6.60 3.6 $ - Warrants Outstanding as of March 31, 2022 160,000 $ 6.60 2.6 $ - Warrants Outstanding as of March 31, 2023 160,000 6.60 1.6 - |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes reconciles rate | For the years ended March 31, 2023 2022 2021 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Effect of PRC preferential tax rate (10.0 )% (10.0 )% (10.0 )% Effect of other deductible expenses 2.2 % 2.7 % 7.4 % Total 17.2 % 17.7 % 22.4 % |
Schedule of income tax | For the years ended March 31, 2023 2022 2021 Current income tax provision $ 363,493 $ 195,678 $ 959,384 Deferred income tax provision 3,093,587 (3,921,905 ) - Total $ 3,457,080 $ (3,726,227 ) $ 959,384 |
Schedule of deferred income tax assets and liabilities | For the years ended March 31, 2023 2022 2021 Net accumulated loss-carry forward $ 20,634,308 $ 4,402,633 $ - Less: valuation allowance (20,634,308 ) (606,141 ) - Net deferred tax assets $ - $ 3,796,492 $ - For the years ended March 31, 2023 2022 2021 Beginning balance $ 4,402,633 $ - $ - Write-off - - - Change of valuation allowance 16,231,675 4,402,633 - Ending balance $ 20,634,308 $ 4,402,633 $ - For the years ended March 31, 2023 2022 2021 Intangible assets arising from acquisition $ (1,514,060 ) $ (2,079,986 ) $ - Total deferred tax liabilities $ (1,514,060 ) $ (2,079,986 ) $ - |
Schedule of taxes payable | As of March 31, As of March 31, 2023 2022 Income tax payable $ 57,167 $ 15,078 VAT payable 31,600 2,189 Other tax payables 54,593 19,958 Total $ 143,360 $ 37,225 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of discounted cash flow method after considering a discount | Fair value of total consideration transferred: Equity instrument (1.374 million Class A Ordinary Shares issued) $ 7,081,250 Subtotal $ 7,081,250 Recognized amounts of identifiable assets acquired and liability assumed: Cash $ 555 Intangible asset –proprietary technology 1,900,000 Current liabilities (3,341 ) Total identifiable net assets $ 1,897,214 Fair value of non-controlling interests - Goodwill * $ 5,184,036 * The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the Web 3.0 era. 2lab3 believes that the decentralized networks of Web 3.0 offer an alternative to the status quo of the current digital world. 2lab3 also offers omni-channel marketing solutions for its clients to grow their internet presence and helps its clients design, launch, promote, and manage their virtual products, such as non-fungible tokens (NFTs). Fair value of total consideration transferred: Equity instrument (4.2 million Class A Ordinary Shares issued) $ 3,736,320 Cash consideration 7,492,391 Subtotal $ 11,228,711 Recognized amounts of identifiable assets acquired and liability assumed: Cash $ 59,091 Current assets other than cash 13,591,825 Intangible asset – customer relationships 4,214,470 Current liabilities (13,650,246 ) Deferred tax liabilities (1,053,617 ) Total identifiable net assets $ 3,161,523 Fair value of non-controlling interests * 4,010,254 Goodwill * $ 12,077,442 * The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong. Fair value of total consideration transferred: Equity instrument (10 million Class A Ordinary Shares issued) $ 3,650,000 Cash consideration 8,000,000 Subtotal $ 11,650,000 Recognized amounts of identifiable assets acquired and liability assumed: Cash $ 1,164 Current assets other than cash 1,882,139 Property, plant and equipment, net 187 Intangible asset – customer relationships 4,582,227 Current liabilities (1,829,733 ) Deferred tax liabilities (1,145,557 ) Total identifiable net assets $ 3,490,427 Fair value of non-controlling interests - Goodwill * $ 8,159,573 * The goodwill generated from the expected synergies from the cooperation of developing the health commodities business stably, combining the production and supply, jointly build a perfect supply chain system with Hekangyuan. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment’s revenue and gross profit | Fiscal year ended March 31, 2023 Healthcare products Automobile Online store Internet information and advertising service Consolidated Revenues $ 31,770,835 $ 22,982,777 $ 42,201,865 $ 1,197,348 $ 98,152,825 Cost $ (28,551,175 ) $ (22,631,083 ) $ (40,739,395 ) $ (1,176,810 ) $ (93,098,463 ) Segment gross profit $ 3,219,660 $ 351,694 $ 1,462,470 $ 20,538 $ 5,054,362 Segment gross profit margin 10.1 % 1.5 % 3.5 % 1.7 % 5.1 % |
Organization and Nature of Op_3
Organization and Nature of Operations (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||
Oct. 09, 2023 | Oct. 09, 2022 | Mar. 04, 2019 | Aug. 21, 2018 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 13, 2023 | Dec. 27, 2022 | Mar. 04, 2022 | Oct. 25, 2019 | Mar. 31, 2019 | Aug. 31, 2018 | Feb. 09, 2018 | |
Organization and Nature of Operations (Details) [Line Items] | ||||||||||||||
Ownership | 100% | |||||||||||||
Equity method investment, description | Mr. Wang Xuezhu and other shareholders of Fujian Happiness transferred their 100% ownership interests in Fujian Happiness to Happiness Fuzhou, which is 100% owned by Happiness Hong Kong. After the reorganization, Paranovus Cayman owns 100% equity interests of Fujian Happiness. Mr. Wang Xuezhu, who owns 52.37% ownership of Paranovus Cayman, became the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company. | |||||||||||||
Ordinary shares authorized | 100,000,000 | |||||||||||||
Preferred shares, authorized | 10,000,000 | 500,000 | 500,000 | |||||||||||
Cancelled ordinary shares | 77,223,100 | |||||||||||||
Ordinary shares, Outstanding | 23,000,000 | |||||||||||||
Ordinary shares, issued | 10,000,000 | 23,000,000 | ||||||||||||
Share per price (in Dollars per share) | $ 2 | |||||||||||||
Business Description and Basis of Presentation [Text Block] | 45 days | |||||||||||||
Purchase percentage | 15% | |||||||||||||
Equity interests rate | 100% | 100% | ||||||||||||
Net loss (in Dollars) | $ (72,187,116) | $ (54,020,081) | $ 691,956 | |||||||||||
Current liabilities exceeded (in Dollars) | $ 11,167,107 | |||||||||||||
Ordinary shares [Member] | ||||||||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||||||||
Additional shares sold | 223,100 | |||||||||||||
Ordinary shares, issued | 50,000 | |||||||||||||
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 | |||||||||||||
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) | $ 5.5 | |||||||||||||
Total net proceeds (in Dollars) | $ 11,000,000 | |||||||||||||
Total net proceeds (in Dollars) | $ 9,342,339 | |||||||||||||
Fujian Happiness [Member] | ||||||||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||||||||
Ownership | 100% | |||||||||||||
Mr. Wang Xuezhu [Member] | ||||||||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||||||||
Ownership | 47.70% | |||||||||||||
Happy Automobile Service (Nanping) Co., Ltd [Member] | ||||||||||||||
Organization and Nature of Operations (Details) [Line Items] | ||||||||||||||
Equity interests rate | 70% |
Organization and Nature of Op_4
Organization and Nature of Operations (Details) - Schedule of operating subsidiaries | 12 Months Ended | |
Mar. 31, 2023 | ||
Happiness (Fuzhou) E-commerce Co., Ltd (“ Happiness Fuzhou”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | June 1, 2018 | |
Place of Incorporation | PRC | |
Registered Capital | US$ 10,000,000 | |
Principal Activities | Investment | |
Fujian Happiness Biotech Co., Ltd (“Fujian Happiness”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date 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] | ||
Date 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 comes Health Products Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date 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 | |
Fujian Shennongjiagu Development Co., Ltd.(“Shennong”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 10, 2012 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 51,110,000 | |
% of Ownership | 70% by Fujian Happiness | |
Principal Activities | Advertising service, online sales, food sales, data service, information consulting service | |
Fuzhou Hekangyuan Trading Co., Ltd. (“Hekangyuan”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | October 13, 2017 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 10,000,000 | |
% of Ownership | 100% by Fujian Happiness | |
Principal Activities | Advertising service, online sales, food sales, commodity sales, information consulting service | |
Fuzhou Happiness Enterprise Management Consulting Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date 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] | ||
Date 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] | ||
Date 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] | ||
Date of Incorporation | August 26, 2020 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 10,000,000 | [1] |
% of Ownership | 51% by Happy Buy | [1] |
Principal Activities | Online sales | [1] |
Fujian Lever Media Co., Ltd. (“Fujian Lever”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | March 1, 2021 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 10,000,000 | [1] |
% of Ownership | 51% by Hangzhou C’est la vie | [1] |
Principal Activities | Online sales | [1] |
Shunchang Baolong Electronic Commerce Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 3, 2020 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 100,000 | [1] |
% of Ownership | 100% by Fujian Lever | [1] |
Principal Activities | Online sales | [1] |
Shunchang Shihong Electronic Commerce Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 3, 2020 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 100,000 | [1] |
% of Ownership | 100% by Fujian Lever | [1] |
Principal Activities | Online sales | [1] |
Happiness Youdao (Hangzhou) Electronic Commerce Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | August 21, 2017 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 10,000,000 | [1] |
% of Ownership | 70% by Hangzhou C’est la vie | [1] |
Principal Activities | Online sales | [1] |
Putian City Hanjiang District Luochen Network Technology Co., Ltd. (“Putian Luochen”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | February 8, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 100,000 | [2] |
% of Ownership | 100% by Hangzhou C’est la vie | [2] |
Principal Activities | Online sales | [2] |
Putian City Hanjiang District Qiyao Trading Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | February 9, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 100,000 | [2] |
% of Ownership | 100% by Putian Luochen | [2] |
Principal Activities | Online sales | [2] |
Putian City Hanjiang District Zhiran Trading Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | February 8, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 100,000 | [2] |
% of Ownership | 100% by Putian Luochen | [2] |
Principal Activities | Online sales | [2] |
Fujian Seravi Electronic Commerce Co., Ltd. (“Fujian Seravi”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | November 30, 2020 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 10,000,000 | [1] |
% of Ownership | 100% by Hangzhou C’est la vie | [1] |
Principal Activities | Online sales | [1] |
Shunchang Qida Electronic Commerce Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 3, 2020 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 30,000 | [2] |
% of Ownership | 100% by Fujian Seravi | [2] |
Principal Activities | Online sales | [2] |
Shunchang Penghong Electronic Commerce Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 2, 2020 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 30,000 | [2] |
% of Ownership | 100% by Fujian Seravi | [2] |
Principal Activities | Online sales | [2] |
Fujian Daji Media Co., Ltd. (“Daji”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | February 1, 2021 | [3] |
Place of Incorporation | PRC | [3] |
Registered Capital | RMB 10,000,000 | [3] |
% of Ownership | 51% by Happy Buy | [3] |
Principal Activities | Live streaming service | [3] |
Happy Buy (Nanping) Automobile Sales Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 15, 2020 | [4] |
Place of Incorporation | PRC | [4] |
Registered Capital | RMB 5,000,000 | [4] |
% of Ownership | 100% by Happy Buy Automobile | [4] |
Principal Activities | Automobile sales | [4] |
Happy Optimal (Fujian) Network Technology Co., Ltd. (“Happy Optimal”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 29, 2020 | [3] |
Place of Incorporation | PRC | [3] |
Registered Capital | RMB 10,000,000 | [3] |
% of Ownership | 51% by Happy Buy | [3] |
Principal Activities | Advertising service | [3] |
Shunchang Haiwushuo Brand Management Co., Ltd. (“Shunchang Haiwushuo”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | September 2, 2021 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 1,000,000 | |
% of Ownership | 51% by Happy Buy | |
Principal Activities | Advertising service, online sales | |
Shunchang Salt Sweet Network Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | July 9, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 500,000 | [2] |
% of Ownership | 100% by Shunchang Haiwushuo | [2] |
Principal Activities | Online Sales | [2] |
Haiwushuo (Hangzhou) Media Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | October 29, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 1,000,000 | [2] |
% of Ownership | 100% by Shunchang Haiwushuo | [2] |
Principal Activities | Advertising service, online sales | [2] |
Shunchang County Partners Supply Chain Management Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | June 11, 2021 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 2,000,000 | [1] |
% of Ownership | 51% by Hangzhou C’est la vie | [1] |
Principal Activities | Online Sales, Advertising | [1] |
Shunchang Youxi e-commerce Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | May 18, 2021 | [1] |
Place of Incorporation | PRC | [1] |
Registered Capital | RMB 200,000 | [1] |
% of Ownership | 100% by Fujian Seravi | [1] |
Principal Activities | Online Sales | [1] |
Haiwushuo (Fujian) Food Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | March 9, 2022 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 51% by Nanping Happiness | [2] |
Principal Activities | Advertising service, online sales | [2] |
Happy Unicorn (Hangzhou) Network Technology Co., Ltd. (“Happy Unicorn”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | June 1, 2021 | [3] |
Place of Incorporation | PRC | [3] |
Registered Capital | RMB 10,000,000 | [3] |
% of Ownership | 51% by Happy Buy | [3] |
Principal Activities | Advertising service, online sales, automobile sales, Internet technology service | [3] |
Ganzhou Youjia New Energy Automobile Sales Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | May 10, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 100% by Fujian Taochejun | [2] |
Principal Activities | Automobile sales | [2] |
Happy car source (Ningbo) Automobile Service Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | May 14, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 100% by Fujian Taochejun | [2] |
Principal Activities | Automobile sales | [2] |
Wuhan Xingfu Youxuan Automobile Sales Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | May 12, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 100% by Fujian Taochejun | [2] |
Principal Activities | Automobile sales | [2] |
Taochejun (Hangzhou) New Energy Technology Co., Ltd. (“Hangzhou Taochejun”) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | July 12, 2021 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 10,000,000 | |
% of Ownership | 100% by Fujian Taochejun | |
Principal Activities | Technology service, automobile sales | |
Zhejiang Yiche Chuxing Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | May 26, 2020 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 100% by Hangzhou Taochejun | [2] |
Principal Activities | Technology service, automobile sales | [2] |
Happy Travel Technology (Fujian) Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | October 27, 2020 | [5] |
Place of Incorporation | PRC | [5] |
Registered Capital | RMB 50,000,000 | [5] |
% of Ownership | 100% by Fujian Taochejun | [5] |
Principal Activities | Technology service, automobile sales | [5] |
Sichuan Taochejun New Energy Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | July 13, 2021 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 10,000,000 | |
% of Ownership | 100% by Fujian Taochejun | |
Principal Activities | Automobile sales. | |
Taochejun (Xi’an) Car Rental Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | August 20, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 100% by Fujian Taochejun | [2] |
Principal Activities | Automobile sales, online sales, car rental service | [2] |
Taochejun (Fuzhou) Automotive Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 27, 2019 | [6] |
Place of Incorporation | PRC | [6] |
Registered Capital | RMB 30,000,000 | [6] |
% of Ownership | 60% by Fujian Taochejun | [6] |
Principal Activities | Automobile sales, online sales | [6] |
Fuzhou Taochejun Culture Media Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | July 12, 2021 | [7] |
Place of Incorporation | PRC | [7] |
Registered Capital | RMB 1,000,000 | [7] |
% of Ownership | 100% by Fujian Taochejun | [7] |
Principal Activities | Advertising service, information consulting service, | [7] |
Taochejun (Hainan) New Energy Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | June 15, 2021 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 10,000,000 | |
% of Ownership | 100% by Fujian Taochejun | |
Principal Activities | Automobile sales, online sales, car rental service | |
Hunan Xingfu Vehicle Source Technology Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | May 28, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 10,000,000 | [2] |
% of Ownership | 100% by Fujian Taochejun | [2] |
Principal Activities | NEV charging technology service, advertising service, automobile sales, automobile parts sales | [2] |
Happy Automobile Service (Nanping) Co., Ltd. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 4, 2020 | [5] |
Place of Incorporation | PRC | [5] |
Registered Capital | RMB 30,000,000 | [5] |
% of Ownership | 70% by Fujian Taochejun | [5] |
Principal Activities | Automobile sales, online sales | [5] |
Hangzhou Happiness Youche Automobile Partnership (Limited partnership) [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | December 29, 2021 | [2] |
Place of Incorporation | PRC | [2] |
Registered Capital | RMB 3,000,000 | [2] |
% of Ownership | 60% by Nanping Happiness | [2] |
Principal Activities | automobile parts sales | [2] |
Taochejun (Fujian) automobiles Co., ltd [Member] | ||
Variable Interest Entity [Line Items] | ||
Date of Incorporation | April 27, 2021 | |
Place of Incorporation | PRC | |
Registered Capital | RMB 30,000,000 | |
% of Ownership | 100% by Nanping Happiness | |
Principal Activities | Automobile sales | |
[1] Hangzhou C’est la vie and its subsidiaries were focus on the online store operation. In August 2022, the Company disposed Hangzhou C’est la vie and its subsidiaries to a third party. During the year ended March 31, 2023, the Company closed 15 subsidiaries to optimize the Company’s structure on online store business. Happy Unicorn and its subsidiaries were focus on the online store operation and automobile sales. In August 2022, the Company disposed Happy Unicorn and its subsidiaries to a third party. On October 9, 2022, the Company transferred the 100% of the equity interests of Happy Buy (Nanping) Automobile Sales Co., Ltd. to a third party due to the business optimization. On October 9, 2023, the Company transferred the 100% of the equity interests of Happy Travel Technology (Fujian) Co., Ltd. and 70% of the equity interests of Happy Automobile Service (Nanping) Co., Ltd to a third party due to the business optimization. Fuzhou Taochejun Culture Media Co., Ltd. was disposed to a third party on October 26, 2023 due to the business optimization. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 CNY (¥) | |
Significant Accounting Policies (Details) [Line Items] | |||||
Business combination extend year | 1 year | ||||
Operating revenue | $ 1 | ||||
Government grants | 10,134 | $ 11,893 | $ 63,520 | ||
Shipping and handling costs | 46,950 | 291,170 | 1,104,120 | ||
Advertising costs | $ 51,805,596 | 26,210,291 | $ 5,720,458 | ||
After tax profit | 10% | ||||
Accumulative amount of reserve | 50% | ||||
Retained earnings | $ (59,453,593) | 12,285,281 | |||
Cash and cash equivalents | 3,355,487 | 19,733,631 | |||
Retained Earnings [Member] | |||||
Significant Accounting Policies (Details) [Line Items] | |||||
Retained earnings | 39,000,000 | ¥ 269,460,000 | |||
Cash and Cash Equivalents [Member] | |||||
Significant Accounting Policies (Details) [Line Items] | |||||
Cash and cash equivalents | $ 1,825,187 | $ 19,571,668 | ¥ 12,542,139 | ¥ 124,244,865 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of property and equipment net | Mar. 31, 2023 |
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 |
Furniture, fixture and electronic equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of property and equipment net [Line Items] | |
Estimated useful lives of the assets | 3 years |
Furniture, fixture and electronic equipment [Member] | Maximum [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 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets | Mar. 31, 2023 |
Land use right [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 50 years |
Licensed software [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 5 years |
Licensed software [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 10 years |
Trademark [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 10 years |
Customer relationship [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 5 years |
Proprietary technology [Member] | |
Significant Accounting Policies (Details) - Schedule of estimated useful lives of intangible assets [Line Items] | |
Estimated useful lives | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of our sales from our product lines - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | $ 98,152,825 | $ 89,488,658 | $ 71,484,703 |
Healthcare products [Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | 31,770,835 | 30,323,831 | 45,389,702 |
Online store [Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | 42,201,865 | 28,014,109 | 13,473,626 |
Internet information and advertising [Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | 1,197,348 | 10,538,943 | 9,245,019 |
Automobile {[Member] | |||
Significant Accounting Policies (Details) - Schedule of our sales from our product lines [Line Items] | |||
Revenue | $ 22,982,777 | $ 20,611,775 | $ 3,376,356 |
Significant Accounting Polici_7
Significant Accounting Policies (Details) - Schedule of foreign currency translation | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
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 6.8717 | US$1=RMB 6.3482 | US$1=RMB 6.5713 |
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 6.8855 | US$1=RMB 6.4083 | US$1=RMB 6.7960 |
Accounts Receivable (Details)
Accounts Receivable (Details) | Mar. 31, 2023 USD ($) |
Receivables [Abstract] | |
Net of allowance for doubtful accounts | $ 854,615 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable, gross | $ 2,560,894 | $ 27,911,421 |
Less: allowance for doubtful accounts | 854,615 | 463,514 |
Accounts receivable | $ 1,706,279 | $ 27,447,907 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of allowance for doubtful accounts - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Allowance For Doubtful Accounts [Abstract] | ||
Beginning balance | $ 463,514 | |
Provision for doubtful accounts | 854,615 | 463,514 |
Written-off | (463,514) | |
Ending balance | $ 854,615 | $ 463,514 |
Inventories (Details)
Inventories (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Inventories (Details) [Line Items] | ||
Net realizable value adjustment | ||
Write-Downs [Member] | ||
Inventories (Details) [Line Items] | ||
Inventory provision |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 282,618 | $ 786,082 |
Work in process | ||
Finished goods | 52,401 | 603,479 |
Total | $ 335,019 | $ 1,389,561 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Cooperation agreement (in Dollars) | $ 448,946 | |
Minimum [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Interest rate per day | 0.03% | |
Maximum [Member] | ||
Prepaid Expenses and Other Current Assets (Details) [Line Items] | ||
Interest rate per day | 0.50% |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | |||
Prepayments to suppliers | $ 1,252,094 | $ 4,177,537 | |
Loans receivables | [1] | 254,668 | 727,765 |
Deposit | 691,070 | ||
Prepayments to technical provider | 618,479 | 669,481 | |
VAT-in | 560,155 | ||
Prepayment to Weilan | [2] | 448,946 | |
Receivable from disposal of subsidiaries | 408,106 | ||
Investment receivables from the investors | 2,000,000 | ||
Other current assets | 263,945 | 226,173 | |
Total | $ 4,389,186 | $ 7,909,233 | |
[1] Loans receivables to third parties mainly represent loan agreements entered with certain third-party companies to support their daily operation or bridge loan of mortgage with maturity from six to nine months and the interest rate from 0.03% to 0.5% per day. In the year ended March 31, 2022, the Company signed a cooperation agreement with a third party to invest in Hangzhou Weilan Automobile Co., Ltd. (“Weilan”) and paid $448,946 to the shareholders of Weilan. In June 2022, both parties agreed to terminate the cooperation agreement and the Company collected the full prepayment. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Pledged its building with carrying value | $ 1,200,000 | $ 2,100,000 | |
Depreciation expense | 1,615,173 | 1,553,399 | $ 849,454 |
Capitalized depreciation in inventories | 278,111 | 621,654 | $ 589,610 |
Property, plant and equipment | $ 267,719 | $ 505,969 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 15,792,196 | $ 17,621,188 |
Less: accumulated depreciation | (7,321,924) | (6,374,373) |
Property, plant and equipment, net | 8,470,272 | 11,246,815 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 14,111,170 | 15,345,997 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 1,585,671 | 1,918,918 |
Furniture, fixture and electronic equipment [Memebr] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | 74,719 | 179,667 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property plant and equipment, at cost | $ 20,636 | $ 176,606 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Carrying value | $ 83,520 | $ 83,520 | $ 93,140 | |
Land square meters | 12,120 | 12,120 | ||
Transaction cost | $ 1,900,000 | |||
Amortization expense | $ 1,763,779 | $ 633,807 | $ 31,425 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets, net - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Intangible Assets Net [Abstract] | ||
Land use right, cost | $ 841,421 | $ 910,808 |
Customer relationship (Note 15) | 8,149,366 | 8,822,973 |
Proprietary technology | 1,900,000 | |
Trademark | 10,187 | 11,027 |
Software, cost | 1,041,799 | 1,127,710 |
Total | 11,942,773 | 10,872,518 |
Less: accumulated amortization | (2,496,518) | (771,113) |
Intangible assets, net | $ 9,446,255 | $ 10,101,405 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense | Mar. 31, 2023 USD ($) |
Schedule of Estimated Future Amortization Expense [Abstract] | |
2024 | $ 2,132,482 |
2025 | 2,132,482 |
2026 | 2,132,482 |
2027 | 2,132,482 |
2028 | 916,327 |
Thereafter | |
Total | $ 9,446,255 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Abstract] | ||
Impairment amount | $ 10,309,745 | |
Shennong [Member] | ||
Goodwill [Abstract] | ||
Impairment amount | $ 7,872,696 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of goodwill - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 6,455,781 | $ 10,084,201 |
Shennong [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,250,470 | 6,288,219 |
Hekangyuan [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 21,275 | 3,627,427 |
2Lab3 [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 5,184,036 | |
Daji [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 168,555 |
Goodwill (Details) - Schedule_2
Goodwill (Details) - Schedule of carrying amount of goodwill - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Carrying Amount Of Goodwill [Abstract] | ||
Balance as of March 31 | $ 10,084,201 | $ 162,832 |
Acquisitions (Note 15) | 5,184,036 | 20,237,015 |
Disposal | (168,555) | |
Impairment | (7,872,696) | (10,309,745) |
Exchange gain and loss | (771,205) | (5,901) |
Goodwill, net | $ 6,455,781 | $ 10,084,201 |
Prepaid Assets (Details) - Sche
Prepaid Assets (Details) - Schedule of prepaid assets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of prepaid assets [Abstract] | ||
Prepayments for advertising or marketing | $ 2,138,273 | $ 5,485,325 |
Prepayment of celebrity endorsement fee | 43,657 | 141,774 |
Total | $ 2,181,930 | $ 5,627,099 |
Other Payables and Accrued Li_3
Other Payables and Accrued Liabilities (Details) - Schedule of other payables and accrued liabilities - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of other payables and accrued liabilities [Abstract] | ||
Advances from customers | $ 5,060,149 | $ 3,310,906 |
Employee benefits payable | 46,485 | 130,439 |
Other payables | 28,423 | |
Total | $ 5,106,634 | $ 3,469,768 |
Short-Term Bank Borrowings (Det
Short-Term Bank Borrowings (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||
Apr. 08, 2021 CNY (¥) | Apr. 06, 2021 CNY (¥) | May 04, 2018 USD ($) | Apr. 30, 2020 | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2023 CNY (¥) | Jan. 13, 2022 USD ($) | Jan. 13, 2022 CNY (¥) | Jan. 12, 2022 USD ($) | Jan. 12, 2022 CNY (¥) | Jan. 15, 2021 CNY (¥) | Apr. 07, 2020 CNY (¥) | Jun. 24, 2019 USD ($) | Jun. 24, 2019 CNY (¥) | May 04, 2018 CNY (¥) | |
Short-Term Bank Borrowings (Details) [Line Items] | |||||||||||||||||
Loan agreement, description | In addition, the Company entered into a loan agreement of $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 0.75% on June 9, 2021 and repaid it on June 5, 2022. | ||||||||||||||||
Interest expense on short-term bank loans (in Dollars) | $ | $ 72,303 | $ 85,993 | $ 111,790 | ||||||||||||||
Industrial Bank Co., Ltd [Member] | |||||||||||||||||
Short-Term Bank Borrowings (Details) [Line Items] | |||||||||||||||||
Short-term bank borrowings | $ 1,039,578 | ¥ 7 | |||||||||||||||
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. | In April 2020, Fujian Happiness renewed the loan agreement with Industrial Bank Co. Ltd for $1,065,238 (RMB 7.0 million) bearing interest rate at LPR plus 1.45% per annum, payable monthly. | |||||||||||||||
Maximum guaranteed amount | ¥ 7 | ||||||||||||||||
Maximum pledged amount for building and land use rights | ¥ 17.4 | ||||||||||||||||
Postal Saving Bank of China [Member] | |||||||||||||||||
Short-Term Bank Borrowings (Details) [Line Items] | |||||||||||||||||
Short-term bank borrowings | $ 197,597 | ¥ 1.4 | $ 846,848 | ¥ 6 | ¥ 6 | ¥ 1.7 | $ 3,400,000 | ¥ 24.4 | |||||||||
Short-term loans bearing fixed interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||
Debt repaid | ¥ 6 | ¥ 1.7 |
Short-Term Bank Borrowings (D_2
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | $ 2,241,076 | $ 2,268,360 |
Industrial Bank Co., Ltd [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | 1,018,672 | 1,102,675 |
Postal Saving Bank of China [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | 1,076,880 | 1,165,685 |
Rural Credit Cooperative (ShunChang) [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of short-term bank borrowings [Line Items] | ||
Short-term bank borrowings | $ 145,524 |
Short-Term Bank Borrowings (D_3
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings [Line Items] | ||
Pledged assets to secure short-term borrowings | $ 1,259,620 | $ 2,169,355 |
Buildings, net [Member] | ||
Short-Term Bank Borrowings (Details) - Schedule of secure short term borrowings [Line Items] | ||
Pledged assets to secure short-term borrowings | 1,176,100 | 2,076,215 |
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 | $ 83,520 | $ 93,140 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation (Details) [Line Items] | |||
Share-based compensation expense | $ 1,086,231 | $ 778,423 | |
2020 Equity Incentive Plan [Member] | |||
Share Based Compensation (Details) [Line Items] | |||
Purchase of ordinary shares (in Shares) | 3,500,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, ¥ in Thousands | 1 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Oct. 10, 2022 | Mar. 14, 2022 USD ($) shares | Mar. 10, 2022 USD ($) shares | Mar. 04, 2022 USD ($) shares | Nov. 12, 2021 USD ($) shares | Oct. 14, 2021 USD ($) shares | Mar. 04, 2019 $ / shares shares | Dec. 27, 2022 USD ($) $ / shares shares | Jan. 20, 2022 USD ($) shares | Oct. 20, 2021 USD ($) shares | Oct. 20, 2021 CNY (¥) shares | Jun. 25, 2021 USD ($) shares | Jun. 21, 2021 USD ($) shares | Oct. 31, 2019 | May 31, 2018 USD ($) | May 31, 2018 CNY (¥) | Mar. 31, 2021 USD ($) shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) shares | Mar. 31, 2023 CNY (¥) shares | Apr. 21, 2022 shares | Jan. 12, 2022 USD ($) | Oct. 21, 2021 USD ($) shares | Mar. 15, 2021 USD ($) shares | Oct. 25, 2019 USD ($) $ / shares shares | Mar. 31, 2019 shares | Feb. 09, 2018 $ / shares shares | |
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 10,000,000 | 23,000,000 | ||||||||||||||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0005 | |||||||||||||||||||||||||||
Equity interest, percentage | 70% | 70% | 100% | |||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 100,000,000 | |||||||||||||||||||||||||||
Preferred stock, shares authorized (in Shares) | 10,000,000 | 500,000 | 500,000 | 500,000 | ||||||||||||||||||||||||
Cancelled ordinary shares (in Shares) | 77,223,100 | |||||||||||||||||||||||||||
Additional ordinary shares (in Shares) | 223,100 | |||||||||||||||||||||||||||
Share per price (in Dollars per share) | $ / shares | $ 2 | |||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 5,100,000 | |||||||||||||||||||||||||||
Total purchase consideration amounted | $ | $ 12,000,000 | $ 10,965,703 | ||||||||||||||||||||||||||
Net proceeds | $ | 10,725,700 | |||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 381,580 | |||||||||||||||||||||||||||
Compensation cost | $ | $ 778,423 | |||||||||||||||||||||||||||
Total consideration amount | $ 6,720,000 | 8,000,000 | $ 99,843 | $ 7,500,000 | ¥ 48,000 | $ 2,157,600 | $ 351,796 | |||||||||||||||||||||
Net proceeds | $ | $ 10,000,000 | $ 2,157,600 | ||||||||||||||||||||||||||
Consideration amount | $ 6,000,000 | $ 16,100,000 | ¥ 103,000 | |||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 90,000,000 | |||||||||||||||||||||||||||
Issued an aggregate of ordinary shares (in Shares) | 4,200,000 | |||||||||||||||||||||||||||
Total compensation cost | $ | $ 7,081,250 | 3,560,000 | $ 3,736,320 | $ 634,592 | ||||||||||||||||||||||||
Ordinary shares, par value | $ | $ 0.0005 | |||||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 50,000 | |||||||||||||||||||||||||||
Preferred stock, shares issued (in Shares) | 0 | 0 | 0 | 10,000,000 | ||||||||||||||||||||||||
Preferred stock, par value | $ | $ 0.0005 | |||||||||||||||||||||||||||
Aggregate shares | $ | $ 10,000,000 | |||||||||||||||||||||||||||
Commissions and offering expenses | $ | $ 6,720,000 | |||||||||||||||||||||||||||
Company’s ordinary shares description | a Share Consolidation of the Company’s ordinary shares at a ratio of one-for-twenty (the “Share Consolidation”) was effected as determined by the Board of Directors. At the time the Share Consolidation is effective, our authorized ordinary shares will be consolidated at the same ratio. The authorized share capital of the Company shall be decreased from an authorized share capital of US$50,000 divided into 70,000,000 Class A ordinary shares, par value US$0.0005 each, 20,000,000 Class B ordinary shares, par value US$0.0005 each, and 10,000,000 preferred shares with a par value of US$0.0005 each to an authorized share capital of US$50,000 divided into 3,500,000 Class A ordinary shares, par value US$0.01 each, 1,000,000 Class B ordinary shares, par value US$0.01 each, and 500,000 preferred shares, par value US$0.01 each. | |||||||||||||||||||||||||||
Gross proceeds | $ | $ 6,000,000 | |||||||||||||||||||||||||||
Purchase of equity interest | 100% | 100% | ||||||||||||||||||||||||||
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 | $ 5,558,669 | ||||||||||||||||||||||||||
Statutory laws amounted | $ | $ 7,622,765 | $ 7,622,765 | ||||||||||||||||||||||||||
Hekangyuan [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Equity interest, percentage | 100% | |||||||||||||||||||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 50,000 | |||||||||||||||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 1 | $ 1 | ||||||||||||||||||||||||||
Additional Paid-in Capital [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Statutory surplus reserve | $ | $ 20,714,673 | $ 19,978,449 | ||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 50,000 | |||||||||||||||||||||||||||
Percentage of subsidiaries | 30% | 30% | ||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 90,000,000 | |||||||||||||||||||||||||||
Percentage of subsidiaries | 49% | 49% | ||||||||||||||||||||||||||
PRC [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Retained earnings | $ 39,210,000 | ¥ 269,460 | ||||||||||||||||||||||||||
IPO [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.0005 | |||||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 2,000,000 | |||||||||||||||||||||||||||
Share per price (in Dollars per share) | $ / shares | $ 5.5 | |||||||||||||||||||||||||||
Total gross proceeds | $ | $ 11,000,000 | |||||||||||||||||||||||||||
Total net proceeds | $ | $ 9,342,339 | |||||||||||||||||||||||||||
Closing purchase percentage | 15% | |||||||||||||||||||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 7,724,675 | 67,004,583 | 7,724,675 | |||||||||||||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.01 | $ 0.0005 | ||||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 350,000,000 | 70,000,000 | 350,000,000 | |||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 1,375,000 | 1,240,000 | 231,445 | |||||||||||||||||||||||||
Total consideration amount | $ | $ 1,375,000 | $ 10,000,000 | ||||||||||||||||||||||||||
Aggregate amount (in Shares) | 113,458 | |||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 19,200,000 | 3,000,000 | 12,500,000 | 4,200,000 | 4,200,000 | 70,000,000 | ||||||||||||||||||||||
Ordinary shares, par value | $ | $ 0.01 | $ 0.0005 | ||||||||||||||||||||||||||
Aggregate shares | $ | $ 1,133,200 | |||||||||||||||||||||||||||
Purchase of equity interest | 70% | |||||||||||||||||||||||||||
Class A Ordinary Shares [Member] | Class A Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Additional ordinary shares (in Shares) | 3,000,000 | 32,940,000 | 5,100,000 | |||||||||||||||||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares, par value | $ | $ 0.0005 | |||||||||||||||||||||||||||
Preferred Stock [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Preferred stock, shares issued (in Shares) | 10,000,000 | |||||||||||||||||||||||||||
Preferred stock, par value | $ | $ 0.0005 | |||||||||||||||||||||||||||
Class B Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 612,255 | 12,095,100 | 612,255 | |||||||||||||||||||||||||
Ordinary shares par value (in Dollars per share) | $ / shares | $ 0.01 | $ 0.0005 | ||||||||||||||||||||||||||
Ordinary shares authorized (in Shares) | 100,000,000 | 20,000,000 | 100,000,000 | |||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 20,000,000 | |||||||||||||||||||||||||||
Ordinary shares, par value | $ | $ 0.0005 | |||||||||||||||||||||||||||
Class B Ordinary Shares [Member] | Class A Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Additional ordinary shares (in Shares) | ||||||||||||||||||||||||||||
Xuezhu Wang [Member] | Class B Ordinary Shares [Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Ordinary shares issued (in Shares) | 150,000 | |||||||||||||||||||||||||||
Two Investors[Member] | ||||||||||||||||||||||||||||
Shareholders' Equity (Details) [Line Items] | ||||||||||||||||||||||||||||
Cash received from investor | $ 627,628 | ¥ 4,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Schedule of options outstanding - USD ($) | 24 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2020 | Mar. 31, 2022 | |
Schedule of Options Outstanding [Abstract] | |||
Number Outstanding, Options Outstanding, beginning balance | |||
Weighted Average Exercise Price, Options Outstanding, beginning balance | |||
Contractual Life in Days, Options Outstanding, beginning balance | |||
Intrinsic Value, Options Outstanding, beginning balance | |||
Number Outstanding, Options Exercisable, beginning balance | |||
Weighted Average Exercise Price, Options Exercisable, beginning balance | |||
Contractual Life in Days, Options Exercisable, beginning balance | |||
Intrinsic Value, Options Exercisable, beginning balance | |||
Number Outstanding, Options granted | 300,000 | ||
Weighted Average Exercise Price, Options granted | $ 5.12 | ||
Contractual Life in Days, Options granted | 45 years | ||
Intrinsic Value, Options granted | |||
Number Outstanding, Options forfeited | |||
Weighted Average Exercise Price, Options forfeited | |||
Contractual Life in Days, Options forfeited | |||
Intrinsic Value, Options forfeited | |||
Number Outstanding, Options expired | (300,000) | ||
Weighted Average Exercise Price, Options expired | $ 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 | |||
Contractual Life in Days, Options Outstanding, ending balance | |||
Intrinsic Value, Options Outstanding, ending balance | |||
Number Outstanding, Options Exercisable, ending balance | |||
Weighted Average Exercise Price, Options Exercisable, ending balance | |||
Contractual Life in Days, Options Exercisable, ending balance | |||
Intrinsic Value, Options Exercisable, ending balance |
Shareholders' Equity (Details_2
Shareholders' Equity (Details) - Schedule of outstanding and exercisable warrants - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2020 | Mar. 31, 2021 | |
Schedule of Outstanding and Exercisable Warrants [Abstract] | ||||
Number Outstanding, Warrants Outstanding, Beginning | 160,000 | |||
Weighted Average Exercise Price, Warrants Outstanding, Beginning | $ 6.6 | |||
Contractual Life in Years, Warrants Outstanding, Beginning | 4 years 7 months 6 days | |||
Intrinsic Value, Warrants Outstanding, Beginning | ||||
Number Outstanding, Warrants granted | ||||
Weighted Average Exercise Price, Warrants granted | ||||
Contractual Life in Years, Warrants granted | ||||
Intrinsic Value, Warrants granted | ||||
Number Outstanding, Warrants forfeited | ||||
Weighted Average Exercise Price, Warrants forfeited | ||||
Contractual Life in Years, Warrants forfeited | ||||
Intrinsic Value, Warrants forfeited | ||||
Number Outstanding, Warrants exercised | ||||
Weighted Average Exercise Price, Warrants exercised | ||||
Contractual Life in Years, Warrants exercised | ||||
Intrinsic Value, Warrants exercised | ||||
Number Outstanding, Warrants Outstanding, Ending | 160,000 | 160,000 | 160,000 | |
Weighted Average Exercise Price, Warrants Outstanding, Ending | $ 6.6 | $ 6.6 | $ 6.6 | |
Contractual Life in Years, Warrants Outstanding, Ending | 1 year 7 months 6 days | 2 years 7 months 6 days | 3 years 7 months 6 days | |
Intrinsic Value, Warrants Outstanding, Ending |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Taxes (Details) [Line Items] | ||
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. | |
Deferred tax assets | $ 3,796,492 | |
Deferred tax liabilities | $ 1,514,060 | $ 2,079,986 |
Hong Kong [Member] | ||
Taxes (Details) [Line Items] | ||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Percent | 16.50% |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes reconciles rate | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Taxes Reconciles Rate [Abstract] | |||
PRC statutory income tax rate | 25% | 25% | 25% |
Effect of PRC preferential tax rate | (10.00%) | (10.00%) | (10.00%) |
Effect of other deductible expenses | 2.20% | 2.70% | 7.40% |
Total | 17.20% | 17.70% | 22.40% |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Income Tax [Abstract] | |||
Current income tax provision | $ 363,493 | $ 195,678 | $ 959,384 |
Deferred income tax provision | 3,093,587 | (3,921,905) | |
Total | $ 3,457,080 | $ (3,726,227) | $ 959,384 |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred income tax assets and liabilities - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Deferred Income Tax Assets and Liabilities [Abstract] | |||
Net accumulated loss-carry forward | $ 20,634,308 | $ 4,402,633 | |
Less: valuation allowance | (20,634,308) | (606,141) | |
Net deferred tax assets | 3,796,492 | ||
Beginning balance | 4,402,633 | ||
Write-off | |||
Change of valuation allowance | 16,231,675 | 4,402,633 | |
Ending balance | 20,634,308 | 4,402,633 | |
Intangible assets arising from acquisition | (1,514,060) | (2,079,986) | |
Total deferred tax liabilities | $ (1,514,060) | $ (2,079,986) |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of taxes payable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Taxes Payable [Abstract] | ||
Income tax payable | $ 57,167 | $ 15,078 |
VAT payable | 31,600 | 2,189 |
Other tax payables | 54,593 | 19,958 |
Total | $ 143,360 | $ 37,225 |
Business Combination (Details)
Business Combination (Details) $ / shares in Units, ¥ in Millions, $ in Millions | 12 Months Ended | ||||||||
Mar. 28, 2023 $ / shares shares | Mar. 14, 2022 | Mar. 04, 2022 USD ($) $ / shares shares | Nov. 12, 2021 USD ($) $ / shares shares | Nov. 12, 2021 CNY (¥) shares | Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 CNY (¥) | |
Business Combination (Details) [Line Items] | |||||||||
Equity interest | 100% | 100% | |||||||
Total cash consideration | $ 12 | $ 7.5 | ¥ 48 | ||||||
Cash paid | $ 9.1 | ¥ 60 | |||||||
Over paid | $ 1.9 | ¥ 12 | |||||||
Exchange gain | $ | $ 0.3 | ||||||||
Class A Ordinary Shares [Member] | |||||||||
Business Combination (Details) [Line Items] | |||||||||
Ordinary shares (in Shares) | shares | 1,375,000 | 10,000,000 | 4,200,000 | 4,200,000 | |||||
Price per share (in Dollars per share) | $ / shares | $ 5.15 | ||||||||
Equity interest | 70% | 70% | |||||||
Ordinary per share (in Dollars per share) | $ / shares | $ 0.365 | $ 0.8896 | |||||||
Acquisition of Daji [Member] | |||||||||
Business Combination (Details) [Line Items] | |||||||||
Percentage of equity interest | 100% | ||||||||
Shennong [Member] | |||||||||
Business Combination (Details) [Line Items] | |||||||||
Total cash consideration | ¥ | ¥ 72 | ||||||||
Acquisition of Hekangyuan [Member] | |||||||||
Business Combination (Details) [Line Items] | |||||||||
Total cash consideration | $ | $ 8 |
Business Combination (Details)
Business Combination (Details) - Schedule of discounted cash flow method after considering a discount | 12 Months Ended | |
Mar. 31, 2023 USD ($) | ||
Acquisition of 2Lab3 [Member] | ||
Fair value of total consideration transferred: | ||
Equity instrument | $ 7,081,250 | |
Subtotal | 7,081,250 | |
Recognized amounts of identifiable assets acquired and liability assumed: | ||
Cash | 555 | |
Intangible asset –proprietary technology | 1,900,000 | |
Current liabilities | (3,341) | |
Total identifiable net assets | 1,897,214 | |
Fair value of non-controlling interests | ||
Goodwill | 5,184,036 | [1] |
Shennong [Member] | ||
Fair value of total consideration transferred: | ||
Equity instrument | 3,736,320 | |
Cash consideration | 7,492,391 | |
Subtotal | 11,228,711 | |
Recognized amounts of identifiable assets acquired and liability assumed: | ||
Cash | 59,091 | |
Current assets other than cash | 13,591,825 | |
Intangible asset – customer relationships | 4,214,470 | |
Current liabilities | (13,650,246) | |
Deferred tax liabilities | (1,053,617) | |
Total identifiable net assets | 3,161,523 | |
Fair value of non-controlling interests | 4,010,254 | |
Goodwill | 12,077,442 | [1],[2] |
Hekangyuan [Member] | ||
Fair value of total consideration transferred: | ||
Equity instrument | 3,650,000 | |
Cash consideration | 8,000,000 | |
Subtotal | 11,650,000 | |
Recognized amounts of identifiable assets acquired and liability assumed: | ||
Cash | 1,164 | |
Current assets other than cash | 1,882,139 | |
Property, plant and equipment, net | 187 | |
Intangible asset – customer relationships | 4,582,227 | |
Current liabilities | (1,829,733) | |
Deferred tax liabilities | (1,145,557) | |
Total identifiable net assets | 3,490,427 | |
Fair value of non-controlling interests | ||
Goodwill | $ 8,159,573 | [3] |
[1] The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the Web 3.0 era. 2lab3 believes that the decentralized networks of Web 3.0 offer an alternative to the status quo of the current digital world. 2lab3 also offers omni-channel marketing solutions for its clients to grow their internet presence and helps its clients design, launch, promote, and manage their virtual products, such as non-fungible tokens (NFTs). The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of the multi-industry, full-link and full-closed-loop of Shennong. The goodwill generated from the expected synergies from the cooperation of developing the health commodities business stably, combining the production and supply, jointly build a perfect supply chain system with Hekangyuan. |
Business Combination (Details_2
Business Combination (Details) - Schedule of discounted cash flow method after considering a discount (Parentheticals) | 12 Months Ended |
Mar. 31, 2023 shares | |
Acquisition of 2Lab3 [Member] | |
Business Combination (Details) - Schedule of discounted cash flow method after considering a discount (Parentheticals) [Line Items] | |
Equity instrument shares issued | 1.374 |
Shennong [Member] | |
Business Combination (Details) - Schedule of discounted cash flow method after considering a discount (Parentheticals) [Line Items] | |
Equity instrument shares issued | 4.2 |
Hekangyuan [Member] | |
Business Combination (Details) - Schedule of discounted cash flow method after considering a discount (Parentheticals) [Line Items] | |
Equity instrument shares issued | 10 |
Deconsolidation (Details)
Deconsolidation (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Deconsolidation [Abstract] | ||
Deconsolidation amount | $ 383,376 | $ 95,932 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of segment’s revenue and gross profit | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Automobile [Member] | |
Segment Reporting (Details) - Schedule of segment’s revenue and gross profit [Line Items] | |
Revenues | $ 22,982,777 |
Cost | (22,631,083) |
Segment gross profit | $ 351,694 |
Segment gross profit margin | 1.50% |
Healthcare products [Member] | |
Segment Reporting (Details) - Schedule of segment’s revenue and gross profit [Line Items] | |
Revenues | $ 31,770,835 |
Cost | (28,551,175) |
Segment gross profit | $ 3,219,660 |
Segment gross profit margin | 10.10% |
Consolidated [Member] | |
Segment Reporting (Details) - Schedule of segment’s revenue and gross profit [Line Items] | |
Revenues | $ 98,152,825 |
Cost | (93,098,463) |
Segment gross profit | $ 5,054,362 |
Segment gross profit margin | 5.10% |
Online Store [Member] | |
Segment Reporting (Details) - Schedule of segment’s revenue and gross profit [Line Items] | |
Revenues | $ 42,201,865 |
Cost | (40,739,395) |
Segment gross profit | $ 1,462,470 |
Segment gross profit margin | 3.50% |
Internet Information and Advertising Service [Member] | |
Segment Reporting (Details) - Schedule of segment’s revenue and gross profit [Line Items] | |
Revenues | $ 1,197,348 |
Cost | (1,176,810) |
Segment gross profit | $ 20,538 |
Segment gross profit margin | 1.70% |
Customer and Supplier Concent_2
Customer and Supplier Concentration (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
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. | ||
Total revenues, percentage | 10% | 10% | |
Raw materials purchase percentage | 25.90% | 16.80% | |
Due to vendor (in Dollars) | $ 4.3 | ||
Guanxian Chunjiang Ganoderma Professional Cooperative Community [Member] | |||
Customer and Supplier Concentration (Details) [Line Items] | |||
Percentage pf purchases | 10% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] ¥ in Millions, $ in Millions | Apr. 10, 2023 USD ($) shares | Apr. 10, 2023 CNY (¥) shares |
Subsequent Events (Details) [Line Items] | ||
Cash consideration | $ 11.3 | ¥ 78 |
Shares issued | 1,000,000 | 1,000,000 |