Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-56590 | |
Entity Registrant Name | TANCHENG GROUP CO., LTD. | |
Entity Central Index Key | 0001753391 | |
Entity Tax Identification Number | 38-4086827 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | No. 32, Huili Township, Jiaocheng County | |
Entity Address, Address Line Two | Lvliang City | |
Entity Address, City or Town | Shanxi Province | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 030500 | |
Country Region | 86 | |
City Area Code | 139 | |
Local Phone Number | 1097-2765 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,381,550 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 86,945 | $ 412,154 |
Other receivables | 716 | 731 |
Inventories | 1,239,755 | 1,252,150 |
Advance to suppliers | 49,563 | 16,200 |
Amounts due from a related party | 1,666,830 | 1,695,750 |
Total current assets | 3,043,809 | 3,376,985 |
Non-current assets: | ||
Motor vehicle | 115,784 | 124,568 |
Total non-current assets | 115,784 | 124,568 |
Total assets | 3,159,593 | 3,501,553 |
Current liabilities: | ||
Accounts payable | 27,367 | 153,572 |
Other payables and accruals | 13,180 | 12,553 |
Advance from customers | 0 | 142,889 |
Amounts due to related parties | 4,406,351 | 4,387,838 |
Total current liabilities | 4,446,898 | 4,696,852 |
Total liabilities | 4,446,898 | 4,696,852 |
COMMITMENTS AND CONTINGENCIES | ||
DEFICIT | ||
Share capital (75,000,000 shares of Common Stock, par value $0.001 per share, authorized, of which 4,381,550 shares are issued and outstanding as of March 31, 2024 and December 31, 2023) | 4,382 | 4,382 |
Additional paid in capital | 162,864 | 162,864 |
Foreign currency translation reserves | 66,467 | 50,681 |
Accumulated deficit | (1,521,018) | (1,413,226) |
Total deficit | (1,287,305) | (1,195,299) |
Total liabilities and deficit | $ 3,159,593 | $ 3,501,553 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 4,381,550 | 4,381,550 |
Common stock, shares outstanding | 4,381,550 | 4,381,550 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
REVENUES | $ 157,625 | $ 346,619 |
COST OF REVENUES | (115,949) | (310,206) |
GROSS PROFIT | 41,676 | 36,413 |
Selling and marketing expenses | (6,822) | (7,072) |
General and administrative expense | (142,751) | (266,705) |
Total operating expenses | (149,573) | (273,777) |
LOSS FROM OPERATIONS | (107,897) | (237,364) |
OTHER INCOME | 105 | 78 |
LOSS BEFORE INCOME TAXES | (107,792) | (237,286) |
INCOME TAXES | 0 | 0 |
NET LOSS | (107,792) | (237,286) |
Foreign currency translation differences | 15,786 | (4,971) |
TOTAL COMPREHENSIVE LOSS | $ (92,006) | $ (242,257) |
Loss per share: | ||
Loss per share: Basic | $ (0.02) | $ (0.05) |
Loss per share: Diluted | $ (0.02) | $ (0.05) |
Weighted average number of shares used in computation: | ||
Weighted average number of shares used in computation: Basic | 4,381,550 | 4,381,550 |
Weighted average number of shares used in computation: Diluted | 4,381,550 | 4,381,550 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Foreign Currency Translation Reserve [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2022 | $ 4,382 | $ 162,864 | $ 26,405 | $ (1,123,560) | $ (929,909) |
Beginning balance, shares at Dec. 31, 2022 | 4,381,550 | ||||
Net loss for the period | (237,286) | (237,286) | |||
Other comprehensive income | (4,971) | (4,971) | |||
Ending balance, value at Mar. 31, 2023 | $ 4,382 | 162,864 | 21,434 | (1,360,846) | (1,172,166) |
Ending balance, shares at Mar. 31, 2023 | 4,381,550 | ||||
Beginning balance, value at Dec. 31, 2023 | $ 4,382 | 162,864 | 50,681 | (1,413,226) | (1,195,299) |
Beginning balance, shares at Dec. 31, 2023 | 4,381,550 | ||||
Net loss for the period | (107,792) | (107,792) | |||
Other comprehensive income | 15,786 | 15,786 | |||
Ending balance, value at Mar. 31, 2024 | $ 4,382 | $ 162,864 | $ 66,467 | $ (1,521,018) | $ (1,287,305) |
Ending balance, shares at Mar. 31, 2024 | 4,381,550 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (107,792) | $ (237,286) |
Adjustment for: | ||
Depreciation | 6,703 | 0 |
Changes in operating assets and liabilities: | ||
Other receivables | 0 | (441,765) |
Inventories | (9,018) | (60,483) |
Advance to suppliers | (33,859) | (38,335) |
Accounts payable | (124,393) | 0 |
Other payables and accruals | 846 | (11,262) |
Advance from customers | (141,369) | 0 |
Amounts due from related parties | 0 | (47,897) |
Cash used in operating activities | (408,882) | (837,028) |
Cash flows from financing activities: | ||
Amounts due to related parties | 88,623 | 1,040,586 |
Cash provided by financing activities | 88,623 | 1,040,586 |
Effect of exchange rate changes on cash and cash equivalents | (4,950) | (378) |
Net (decrease) increase in cash and cash equivalents | (325,209) | 203,180 |
Cash and cash equivalents at the beginning of the year | 412,154 | 71,207 |
Cash and cash equivalents at the end of the period | $ 86,945 | $ 274,387 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) | $ (107,792) | $ (237,286) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS TANCHENG GROUP CO., LTD. (“Company”), formerly named Bigeon Corp. (“Bigeon”) was incorporated on June 19, 2018 under the laws of Nevada. Qiansui International Group Limited (“Qiansui International”) was incorporated in the Cayman Islands on June 7, 2022. Qiansui (Hong Kong) Holdings Limited (“Qiansui HK”) was incorporated on July 21, 2022 in the Hong Kong SAR. Qiansui HK wholly owns Shanxi Qiansui Tanchend Culture Consulting Co., Ltd. (“Qiansui Consulting”) which was established on December 12, 2022 in the People’s Republic of China (the “PRC”). Qiansui Consulting is a wholly owned foreign entity under PRC law. Qiansui Consulting wholly owns Shanxi Qiansui Tancheng Culture Media Co., Ltd. (“Qiansui Media”), which was established on June 14, 2017 in the PRC. Qiansui Consulting acquired Qiansui Media on December 28, 2022. Qiansui HK and Qiansui Consulting are intermediary holding companies. Qiansui International conducts its operations through Qiansui Media. The Company operates through its wholly-owned PRC subsidiary Qiansui Media and the principal activity is the sale of self-designed ornament and adornment products through its online store in the PRC. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation and Going Concern The accompanying condensed consolidated financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred loss of $ 107,792 408,882 1,403,089 1,521,018 - The Company will obtain financial support from the related parties. - Based on the business plans of the Company, management expects to see a positive trend in the Company’s future results after the end of COVID-19 as the PRC had eased all tough pandemic control and lockdown measures by mid 2023. The board of directors believes the Company has adequate financial resources to continue in operational existence for at least 12 months from the date of the release of these condensed consolidated financial statements. Accordingly, the going concern basis of accounting continues to be used in preparing the consolidated financial statements for the three months ended March 31, 2024. (b) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (c) Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s condensed consolidated financial statements include economic lives and impairment of property, plant and equipment and allowance for doubtful accounts. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at March 31, 2024 and December 31, 2023. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (e) Motor Vehicle The Company has one motor vehicle, which is stated at cost less accumulated depreciation and accumulated impairment losses. Cost represents the purchase price of the motor vehicle and other costs incurred to bring the motor vehicle into its existing use. Gains or losses on disposals are reflected as gain or loss in the period of disposal. All ordinary repair and maintenance costs are expensed as incurred. Depreciation of the motor vehicle is provided using the straight-line method over the estimated useful lives of 5 (f) Revenue Recognition The Company’s revenue recognition policy is compliant with ASC 606, Revenue from Contracts with Customers that revenue is recognized when a customer obtains control of promised goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the goods and services in the contract; (ii) determination of whether the goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery or service being rendered. Contract liabilities consist of advance from customers related to cash received from customers for the future transfer of goods to customers. The balance of advance from customers represents unfulfilled performance obligations in the sales agreement, i.e. products that have not yet been delivered. Once the related products have been delivered, the amount in the advance from customers account is shifted to a revenue account. Deferred revenue recognized as revenue during the three months ended March 31, 2024 and 2023 was $ 141,369 nil For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. (g) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: Schedule of exchange rates March 31, 2024 March 31, 2023 Period-end RMB exchange rate 7.22 6.87 Annual average RMB exchange rate 7.17 6.84 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. (h) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. All the Company’s cash and cash equivalents are in RMB. (i) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (j) Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, other receivables, advances to suppliers, accounts payable, other payables and accruals, and advances from customers. The carrying amounts of these balances approximate their fair values due to the short-term maturities of these instruments. (k) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties if any, related to unrecognized tax benefits in income tax expenses. (l) Comprehensive Income or Loss Comprehensive income or loss includes net income and foreign currency translation adjustments. Comprehensive income or loss is reported in the statements of comprehensive income or loss. (m) Concentration of Credit Risk Financial instruments that potentially expose the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and other receivables. As of March 31, 2024 and December 31, 2023, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. During the three months ended March 31, 2024 and 2023, all revenues were generated from third parties. Details of customer who accounted for 10% or more of the Company’s total revenue for the three months ended March 31, 2024 and 2023 are as follows: Schedule of concentration risk For the three months ended March 31, 2024 2023 Amount % of total revenue Amount % of total revenue Customer A $ – – $ 115,767 33.4 Customer B – – 44,932 13.0 Customer C – – 43,413 12.5 Customer D 74,908 47.5 41,965 12.1 Customer E 25,969 16.5 – – 100,877 64.0 246,077 71.0 Details of supplier who accounted for 10% or more of the Company’s total purchase for the three months ended March 31, 2024 and 2023 are as follows: Schedule of concentration risk For the three months ended March 31, 2024 2023 Amount % of total purchase Amount % of total purchase Supplier A $ 122,912 100.0 $ 364,918 100.0 Details of supplier who accounted for 10% or more of the Company’s total accounts payable as of March 31, 2024 and 2023 are as follows: As of March 31, 2024 2023 Amount % of total purchase Amount % of total purchase Supplier A $ 27,367 100.0 $ 153,572 100.0 (n) Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In November 2021, the FASB issued ASU 2021-10, “ Government Assistance (Topic 832) On December 14, 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 3. INVENTORIES Schedule of inventories March 31, 2024 December 31, 2023 Ornament and adornment products $ 1,239,755 $ 1,252,150 No |
MOTOR VEHICLE
MOTOR VEHICLE | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
MOTOR VEHICLE | 4. MOTOR VEHICLE Schedule of motor vehicle March 31, 2024 December 31, 2023 Motor vehicle $ 140,203 $ 142,635 Less: Accumulated depreciation (24,419 ) (18,067 ) Net book value $ 115,784 $ 124,568 In April 2023, the Company purchased a motor vehicle for approximately $ 143,231 1,012,301 6,703 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES (a) Enterprise Income Tax (“EIT”) Tancheng Group Co., Ltd. was incorporated in the State of Nevada. Tancheng Group Co., Ltd. is an U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Tancheng Group Co., Ltd. had no Qiansui International was incorporated in the Cayman Islands. Under the current tax laws of Cayman Islands, Qiansui International is not subject to taxation. Qiansui HK was incorporated in Hong Kong and is subject to an income tax rate of 16.5 Qiansui Consulting and Qiansui Media were incorporated in the PRC and they are subject to profits tax rate at 25 The full realization of the tax benefit associated with the losses carried forward depends predominantly upon the Company’s ability to generate taxable income during the carry-forward period. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain. The Company did no The Company operates its business through a subsidiary incorporated in the PRC which is subject to a corporate income tax rate of 25 25 Schedule of reconciliation of tax expense For the three months ended 2024 2023 Loss before tax $ (107,792 ) $ (237,286 ) Tax benefit calculated at statutory tax rate 25 25 Computed expected benefits (26,948 ) (59,322 ) Deferred tax not recognized 26,948 59,322 Income tax expense $ – $ – (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for small-scale VAT payers on domestic sales is 3%. In response to COVID-19, there are various VAT incentives, the Company was eligible for a reduced VAT rate of 1 13 |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | 6. RELATED PARTIES TRANSACTIONS The table below sets forth the related parties and their relationships with the Company as of March 31, 2024 and December 31, 2023: Schedule of related parties and their relationships Name of related parties Relationship with the Company Yu Yang (“Mr. Yang”) Controlling shareholder Jiaocheng Xinmu Trade Co., Ltd Controlled by Mr. Yang Shanxi Qiansui Automobile Trading Co., Ltd Controlled by Mr. Yang Taiyuan Tuohang Logistics Co., Ltd Controlled by Mr. Yang Shanxi Xiliu Catering Management Co., Ltd Controlled by Mr. Yang The related party balances and transactions are as follows: Amounts due from a related party: Schedule of due from related party March 31, 2024 December 31, 2023 Shanxi Xiliu Catering Management Co., Ltd $ 1,666,830 $ 1,695,750 Amounts due from Shanxi Xiliu Catering Management Co., Ltd represents business advances for operational purposes. The balance is unsecured, non-interest bearing and repayable on demand. Amounts due to related parties: Schedule of due to related parties March 31, 2024 December 31, 2023 Yu Yang (a) $ 366,902 $ 278,303 Jiaocheng Xinmu Trade Co., Ltd (b) 4,039,449 4,109,535 $ 4,406,351 $ 4,387,838 Amounts due to Yu Yang and Jiaocheng Xinmu Trade Co., Ltd represent advances made to the Company for operational purposes. The balances with Yu Yang and Jiaocheng Xinmu Trade Co., Ltd include exchange differences arising from the translation of RMB balances into U.S. dollar at different period-end and year-end exchange rates as of March 31, 2024 and December 31, 2023. During the three months ended March 31, 2024, there was no movement on the balance with Jiaocheng Xinmu Trade Co., Ltd; whereas Yu Yang had paid the operation and administration expenses on behalf of the Company in an aggregate amount of $88,623. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | 7. EQUITY Authorized Shares As of March 31, 2024 and December 31, 2023, the Company has 75,000,000 0.001 Ordinary Shares As of March 31, 2024 and December 31, 2023, the Company’s outstanding number of ordinary shares was 4,381,550 The Company did no |
RESERVES
RESERVES | 3 Months Ended |
Mar. 31, 2024 | |
Reserves | |
RESERVES | 8. RESERVES (a) Legal reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10 (b) Currency translation reserve The currency translation reserve represents translation differences arising from the translation of foreign currency financial statements into the Company’s reporting currency. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES As of March 31, 2024, the Company did not make any contractual obligations or arrangements that required a provision or disclosure in these consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 10. SUBSEQUENT EVENTS The Company has evaluated subsequent events from March 31, 2024 to the date of the release of these condensed consolidated financial statements and has determined that there are no items to disclose. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Going Concern | (a) Basis of Presentation and Going Concern The accompanying condensed consolidated financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying condensed consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred loss of $ 107,792 408,882 1,403,089 1,521,018 - The Company will obtain financial support from the related parties. - Based on the business plans of the Company, management expects to see a positive trend in the Company’s future results after the end of COVID-19 as the PRC had eased all tough pandemic control and lockdown measures by mid 2023. The board of directors believes the Company has adequate financial resources to continue in operational existence for at least 12 months from the date of the release of these condensed consolidated financial statements. Accordingly, the going concern basis of accounting continues to be used in preparing the consolidated financial statements for the three months ended March 31, 2024. |
Economic and Political Risks | (b) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in government policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s condensed consolidated financial statements include economic lives and impairment of property, plant and equipment and allowance for doubtful accounts. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at March 31, 2024 and December 31, 2023. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. |
Motor Vehicle | (e) Motor Vehicle The Company has one motor vehicle, which is stated at cost less accumulated depreciation and accumulated impairment losses. Cost represents the purchase price of the motor vehicle and other costs incurred to bring the motor vehicle into its existing use. Gains or losses on disposals are reflected as gain or loss in the period of disposal. All ordinary repair and maintenance costs are expensed as incurred. Depreciation of the motor vehicle is provided using the straight-line method over the estimated useful lives of 5 |
Revenue Recognition | (f) Revenue Recognition The Company’s revenue recognition policy is compliant with ASC 606, Revenue from Contracts with Customers that revenue is recognized when a customer obtains control of promised goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the goods and services in the contract; (ii) determination of whether the goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery or service being rendered. Contract liabilities consist of advance from customers related to cash received from customers for the future transfer of goods to customers. The balance of advance from customers represents unfulfilled performance obligations in the sales agreement, i.e. products that have not yet been delivered. Once the related products have been delivered, the amount in the advance from customers account is shifted to a revenue account. Deferred revenue recognized as revenue during the three months ended March 31, 2024 and 2023 was $ 141,369 nil For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. |
Foreign Currency Translation | (g) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive income, a component of equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: Schedule of exchange rates March 31, 2024 March 31, 2023 Period-end RMB exchange rate 7.22 6.87 Annual average RMB exchange rate 7.17 6.84 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. |
Foreign Currency Risk | (h) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. All the Company’s cash and cash equivalents are in RMB. |
Fair Value | (i) Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Fair Value of Financial Instruments | (j) Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, other receivables, advances to suppliers, accounts payable, other payables and accruals, and advances from customers. The carrying amounts of these balances approximate their fair values due to the short-term maturities of these instruments. |
Income Taxes | (k) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties if any, related to unrecognized tax benefits in income tax expenses. |
Comprehensive Income or Loss | (l) Comprehensive Income or Loss Comprehensive income or loss includes net income and foreign currency translation adjustments. Comprehensive income or loss is reported in the statements of comprehensive income or loss. |
Concentration of Credit Risk | (m) Concentration of Credit Risk Financial instruments that potentially expose the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and other receivables. As of March 31, 2024 and December 31, 2023, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. During the three months ended March 31, 2024 and 2023, all revenues were generated from third parties. Details of customer who accounted for 10% or more of the Company’s total revenue for the three months ended March 31, 2024 and 2023 are as follows: Schedule of concentration risk For the three months ended March 31, 2024 2023 Amount % of total revenue Amount % of total revenue Customer A $ – – $ 115,767 33.4 Customer B – – 44,932 13.0 Customer C – – 43,413 12.5 Customer D 74,908 47.5 41,965 12.1 Customer E 25,969 16.5 – – 100,877 64.0 246,077 71.0 Details of supplier who accounted for 10% or more of the Company’s total purchase for the three months ended March 31, 2024 and 2023 are as follows: Schedule of concentration risk For the three months ended March 31, 2024 2023 Amount % of total purchase Amount % of total purchase Supplier A $ 122,912 100.0 $ 364,918 100.0 Details of supplier who accounted for 10% or more of the Company’s total accounts payable as of March 31, 2024 and 2023 are as follows: As of March 31, 2024 2023 Amount % of total purchase Amount % of total purchase Supplier A $ 27,367 100.0 $ 153,572 100.0 |
Recent Accounting Pronouncements | (n) Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In November 2021, the FASB issued ASU 2021-10, “ Government Assistance (Topic 832) On December 14, 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of exchange rates | Schedule of exchange rates March 31, 2024 March 31, 2023 Period-end RMB exchange rate 7.22 6.87 Annual average RMB exchange rate 7.17 6.84 |
Schedule of concentration risk | Schedule of concentration risk For the three months ended March 31, 2024 2023 Amount % of total revenue Amount % of total revenue Customer A $ – – $ 115,767 33.4 Customer B – – 44,932 13.0 Customer C – – 43,413 12.5 Customer D 74,908 47.5 41,965 12.1 Customer E 25,969 16.5 – – 100,877 64.0 246,077 71.0 |
Schedule of concentration risk | Schedule of concentration risk For the three months ended March 31, 2024 2023 Amount % of total purchase Amount % of total purchase Supplier A $ 122,912 100.0 $ 364,918 100.0 Details of supplier who accounted for 10% or more of the Company’s total accounts payable as of March 31, 2024 and 2023 are as follows: As of March 31, 2024 2023 Amount % of total purchase Amount % of total purchase Supplier A $ 27,367 100.0 $ 153,572 100.0 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Schedule of inventories March 31, 2024 December 31, 2023 Ornament and adornment products $ 1,239,755 $ 1,252,150 |
MOTOR VEHICLE (Tables)
MOTOR VEHICLE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of motor vehicle | Schedule of motor vehicle March 31, 2024 December 31, 2023 Motor vehicle $ 140,203 $ 142,635 Less: Accumulated depreciation (24,419 ) (18,067 ) Net book value $ 115,784 $ 124,568 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of tax expense | Schedule of reconciliation of tax expense For the three months ended 2024 2023 Loss before tax $ (107,792 ) $ (237,286 ) Tax benefit calculated at statutory tax rate 25 25 Computed expected benefits (26,948 ) (59,322 ) Deferred tax not recognized 26,948 59,322 Income tax expense $ – $ – |
RELATED PARTIES TRANSACTIONS (T
RELATED PARTIES TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of related parties and their relationships | Schedule of related parties and their relationships Name of related parties Relationship with the Company Yu Yang (“Mr. Yang”) Controlling shareholder Jiaocheng Xinmu Trade Co., Ltd Controlled by Mr. Yang Shanxi Qiansui Automobile Trading Co., Ltd Controlled by Mr. Yang Taiyuan Tuohang Logistics Co., Ltd Controlled by Mr. Yang Shanxi Xiliu Catering Management Co., Ltd Controlled by Mr. Yang |
Schedule of due from related party | Schedule of due from related party March 31, 2024 December 31, 2023 Shanxi Xiliu Catering Management Co., Ltd $ 1,666,830 $ 1,695,750 |
Schedule of due to related parties | Schedule of due to related parties March 31, 2024 December 31, 2023 Yu Yang (a) $ 366,902 $ 278,303 Jiaocheng Xinmu Trade Co., Ltd (b) 4,039,449 4,109,535 $ 4,406,351 $ 4,387,838 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Exchange rates) | Mar. 31, 2024 | Mar. 31, 2023 |
Period End [Member] | ||
Intra-Entity Foreign Currency Balance [Line Items] | ||
Exchange rate | 7.22 | 6.87 |
Annual Average [Member] | ||
Intra-Entity Foreign Currency Balance [Line Items] | ||
Exchange rate | 7.17 | 6.84 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Customer concentation) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Customer A [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 0 | $ 115,767 |
Customer A [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of total revenue | 0% | 33.40% |
Customer B [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 0 | $ 44,932 |
Customer B [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of total revenue | 0% | 13% |
Customer C [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 0 | $ 43,413 |
Customer C [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of total revenue | 0% | 12.50% |
Customer D [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 74,908 | $ 41,965 |
Customer D [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of total revenue | 47.50% | 12.10% |
Customer E [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 25,969 | $ 0 |
Customer E [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of total revenue | 16.50% | 0% |
Total Customer [Member] | ||
Product Information [Line Items] | ||
Revenue | $ 100,877 | $ 246,077 |
Total Customer [Member] | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Percentage of total revenue | 64% | 71% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Supplier concentration) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Product Information [Line Items] | |||
Accounts payable | $ 27,367 | $ 153,572 | |
Supplier A [Member] | |||
Product Information [Line Items] | |||
Purchases | 122,912 | $ 364,918 | |
Accounts payable | $ 27,367 | $ 153,572 | |
Supplier A [Member] | Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | |||
Product Information [Line Items] | |||
Percentage of accounts payable | 100% | 100% | |
Supplier A [Member] | Supplier Concentration Risk [Member] | Accounts Payable [Member] | |||
Product Information [Line Items] | |||
Percentage of accounts payable | 100% | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Net Income (Loss) Attributable to Parent | $ 107,792 | $ 237,286 | |
Net cash used in operating activities | 408,882 | 837,028 | |
Working capital deficit | 1,403,089 | ||
Accumulated deficit | 1,521,018 | $ 1,413,226 | |
Deferred Revenue, Revenue Recognized | $ 141,369 | $ 0 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Ornament and adornment products | $ 1,239,755 | $ 1,252,150 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | ||
Impairment provision for obsolete inventories | $ 0 | $ 0 |
MOTOR VEHICLE (Details)
MOTOR VEHICLE (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Motor vehicle | $ 140,203 | $ 142,635 |
Less: Accumulated depreciation | (24,419) | (18,067) |
Net book value | $ 115,784 | $ 124,568 |
MOTOR VEHICLE (Details Narrativ
MOTOR VEHICLE (Details Narrative) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 6,703 | $ 0 | ||
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase of motor vehicle | $ 143,231 | ¥ 1,012,301 |
INCOME TAXES (Details - Effecti
INCOME TAXES (Details - Effective tax rates) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Loss before tax | $ (107,792) | $ (237,286) |
Tax benefit calculated at statutory tax rate | 25% | 25% |
Computed expected benefits | $ (26,948) | $ (59,322) |
Deferred tax not recognized | 26,948 | 59,322 |
Income tax expense | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Taxable income | $ 0 | $ 0 |
Income tax rate | 25% | |
Deferred tax assets | $ 0 | $ 0 |
Corporate income tax rate | 25% | |
Reconciliation of the effective tax rates | 25% | 25% |
VAT Rate | 13% | 1% |
HONG KONG | ||
Income tax rate | 16.50% |
RELATED PARTIES TRANSACTIONS (D
RELATED PARTIES TRANSACTIONS (Details - Related party relationships) | 3 Months Ended |
Mar. 31, 2024 | |
Yu Yang [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the company | Controlling shareholder |
Jiaocheng Xinmu Trade Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the company | Controlled by Mr. Yang |
Shanxi Qiansui Automobile Trading Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the company | Controlled by Mr. Yang |
Taiyuan Tuohang Logistics Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the company | Controlled by Mr. Yang |
Shanxi Xiliu Catering Management Co Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the company | Controlled by Mr. Yang |
RELATED PARTIES TRANSACTIONS _2
RELATED PARTIES TRANSACTIONS (Details - Due from related party) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Amounts due from related party | $ 1,666,830 | $ 1,695,750 |
Shanxi Xiliu Catering Management Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related party | $ 1,666,830 | $ 1,695,750 |
RELATED PARTIES TRANSACTIONS _3
RELATED PARTIES TRANSACTIONS (Details - Due to related parties) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 4,406,351 | $ 4,387,838 |
Yu Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | 366,902 | 278,303 |
Jiaocheng Xinmu Trade Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 4,039,449 | $ 4,109,535 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - $ / shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity [Abstract] | |||
Ordinary shares authorized | 75,000,000 | 75,000,000 | |
Ordinary shares, par value | $ 0.001 | $ 0.001 | |
Ordinary shares outstanding | 4,381,550 | 4,381,550 | |
Number of shares issued during period | 0 | 0 |
RESERVES (Details Narrative)
RESERVES (Details Narrative) | Mar. 31, 2024 |
Reserves | |
Annual general reserve rate required | 10% |