Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Sunrise New Energy Co., Ltd. |
Trading Symbol | EPOW |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 25,361,550 |
Amendment Flag | false |
Entity Central Index Key | 0001780731 |
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 | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40008 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Room 703, West Zone, R&D Building Zibo Science and Technology Industrial Entrepreneurship Park |
Entity Address, City or Town | Zibo |
Entity Address, Address Line Two | No. 69 Sanying Road |
Entity Address, Country | CN |
Title of 12(b) Security | ordinary share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 711 |
Auditor Name | Friedman LLP |
Auditor Location | New York |
Entity Address, Postal Zip Code | 000000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Room 703, West Zone, R&D Building Zibo Science and Technology Industrial Entrepreneurship Park |
Entity Address, City or Town | Zibo |
Entity Address, Address Line Two | No. 69 Sanying Road |
Entity Address, Country | CN |
Contact Personnel Name | Haiping Hu |
Local Phone Number | 1082967728 |
City Area Code | +86 |
Entity Address, Postal Zip Code | 000000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,655,549 | $ 13,916,155 |
Restricted cash | 2,638,468 | |
Accounts receivable, net | 5,167,701 | 6,861,672 |
Notes receivable | 868,679 | |
Inventories, net | 18,330,516 | 3,105,673 |
Due from related parties | 400,022 | 65,278 |
Short-term investment | 3,336,256 | 5,961,605 |
Prepaid expenses and other current assets | 12,240,642 | 4,435,175 |
TOTAL CURRENT ASSETS | 44,637,833 | 34,345,558 |
NON-CURRENT ASSETS | ||
Restricted cash | 700,060 | |
Long term prepayments and other non-current assets | 3,850,985 | 10,244,917 |
Plant, property and equipment, net | 41,468,383 | 3,351,321 |
Land use rights, net | 10,083,242 | |
Intangible assets, net | 3,962,650 | 3,594,977 |
Long-term investments | 3,019,281 | 5,381,441 |
Operating lease right-of-use assets | 224,773 | |
Deferred tax assets | 852,037 | |
TOTAL NON-CURRENT ASSETS | 62,384,541 | 24,349,526 |
TOTAL ASSETS | 107,022,374 | 58,695,084 |
CURRENT LIABILITIES | ||
Accounts payable | 12,259,772 | 34,486 |
Note payable | 3,876,748 | |
Deferred revenue | 347,231 | 179,407 |
Deferred revenue - related parties | 347,471 | |
Deferred government subsidy | 2,871,665 | |
Due to related parties | 885,150 | |
Income taxes payable | 506,638 | 1,076,518 |
Operating lease liabilities, current | 99,569 | |
Long-term payable, current | 3,706,628 | |
Consideration payable, current | 582,381 | |
Accrued expenses and other current liabilities | 639,761 | 330,902 |
TOTAL CURRENT LIABILITIES | 26,023,445 | 1,720,882 |
NON-CURRENT LIABILITIES | ||
Long term payable, non-current | 4,078,843 | |
Consideration payable, non-current | 3,358,906 | |
Deferred tax liabilities, net | 199,583 | |
TOTAL NON-CURRENT LIABILITIES | 7,637,332 | |
TOTAL LIABILITES | 33,660,777 | 1,720,882 |
EQUITY | ||
Ordinary shares (500,000,000 shares authorized; $0.0001 par value, 24,528,000 shares issued and outstanding as of December 31, 2021; 25,361,550 shares issued and outstanding as of December 31, 2022) | 2,536 | 2,453 |
Additional paid-in capital | 34,696,702 | 31,966,816 |
Statutory reserves | 2,477,940 | 2,473,801 |
(Accumulated deficits) Retained earnings | (5,148,529) | 17,259,976 |
Accumulated other comprehensive (loss) income | (906,444) | 2,148,906 |
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS | 31,122,205 | 53,851,952 |
Non-controlling interests | 42,239,392 | 3,122,250 |
TOTAL EQUITY | 73,361,597 | 56,974,202 |
TOTAL LIABILITIES AND EQUITY | $ 107,022,374 | $ 58,695,084 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, issued | 25,361,550 | 24,528,000 |
Ordinary shares, outstanding | 25,361,550 | 24,528,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUE, NET | |||
Products | $ 37,583,844 | $ 2,104,767 | $ 1,495,380 |
Service | 541,824 | 5,304,505 | 21,685,704 |
Total revenues | 38,125,668 | 7,409,272 | 23,181,084 |
COSTS OF REVENUES | |||
Products | 38,299,090 | 2,063,296 | 892,791 |
Service | 1,176,956 | 1,823,358 | 2,087,425 |
Total cost of revenues | 39,476,046 | 3,886,654 | 2,980,216 |
GROSS (LOSS) PROFIT | (1,350,378) | 3,522,618 | 20,200,868 |
OPERATING EXPENSES | |||
Selling expenses | 1,075,980 | 946,775 | 906,456 |
General and administrative expenses | 12,678,873 | 7,834,291 | 3,897,040 |
Research and development expenses | 1,053,882 | 2,151,565 | 671,312 |
Impairment of intangible assets | 2,650,020 | ||
Total operating expenses | 17,458,755 | 10,932,631 | 5,474,808 |
(LOSS) PROFIT FROM OPERATIONS | (18,809,133) | (7,410,013) | 14,726,060 |
OTHER (EXPENSES) INCOME | |||
Investment losses | (3,566,561) | (2,118,453) | (1,087) |
Interest (expense) income | (27,128) | 173,173 | 214,460 |
Other income, net | 87,390 | 404,380 | 72,837 |
Total other (expenses) income | (3,506,299) | (1,540,900) | 286,210 |
(LOSS) PROFIT BEFORE INCOME TAXES | (22,315,432) | (8,950,913) | 15,012,270 |
Income taxes provision (benefit) | 808,970 | (236,581) | 3,054,983 |
NET (LOSS) INCOME | (23,124,402) | (8,714,332) | 11,957,287 |
Less: net loss attributable to non-controlling interests | (720,036) | (311,072) | (130,240) |
NET (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS | (22,404,366) | (8,403,260) | 12,087,527 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | (5,123,964) | 700,316 | 2,076,303 |
TOTAL COMPREHENSIVE (LOSS) INCOME | (28,248,366) | (8,014,016) | 14,033,590 |
Less: comprehensive loss attributable to non-controlling interest | (2,788,650) | (321,522) | (91,862) |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ORIDNARY SHAREHOLDERS OF SUNRISE NEW ENERGY CO., LTD. | $ (25,459,716) | $ (7,692,494) | $ 14,125,452 |
(LOSS) EARNINGS PER SHARE | |||
Basic and diluted (in Dollars per share) | $ (0.9) | $ (0.36) | $ 0.72 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||
Basic and diluted (in Shares) | 24,820,313 | 23,638,751 | 16,800,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive (Loss) Income (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Diluted | $ (0.90) | $ (0.36) | $ 0.72 |
Diluted | 24,820,313 | 23,638,751 | 16,800,000 |
Consolidation Statements of Cha
Consolidation Statements of Changes in Equity - USD ($) | Ordinary shares | Additional paid-in Capital | Statutory reserves | Retained earnings (Accumulated deficits) | Accumulated other comprehensive (loss) income | Total equity attributable to ordinary shareholders | Non-controlling interests | Total |
Balance at Dec. 31, 2019 | $ 1,680 | $ 4,342,181 | $ 1,636,414 | $ 14,413,096 | $ (599,786) | $ 19,793,585 | $ 203,013 | $ 19,996,598 |
Balance (in Shares) at Dec. 31, 2019 | 16,800,000 | |||||||
Capital contributions from shareholders | 119,996 | 119,996 | 119,996 | |||||
Net income (loss) | 12,087,527 | 12,087,527 | (130,240) | 11,957,287 | ||||
Statutory reserves | 837,383 | (837,383) | ||||||
Foreign currency translation adjustment | 2,037,926 | 2,037,926 | 38,377 | 2,076,303 | ||||
Balance at Dec. 31, 2020 | $ 1,680 | 4,462,177 | 2,473,797 | 25,663,240 | 1,438,140 | 34,039,034 | 111,150 | 34,150,184 |
Balance (in Shares) at Dec. 31, 2020 | 16,800,000 | |||||||
Issued shares of ordinary shares, net of offering cost | $ 773 | 27,504,639 | 27,505,412 | 27,505,412 | ||||
Issued shares of ordinary shares, net of offering cost (in Shares) | 7,728,000 | |||||||
Capital contributions from non-controlling interests | 3,332,622 | 3,332,622 | ||||||
Disposal of subsidiary | 17 | (17) | (2,642) | (2,642) | ||||
Net income (loss) | (8,403,260) | (8,403,260) | (311,072) | (8,714,332) | ||||
Statutory reserves | (13) | 13 | ||||||
Foreign currency translation adjustment | 710,766 | 710,766 | (7,808) | 702,958 | ||||
Balance at Dec. 31, 2021 | $ 2,453 | 31,966,816 | 2,473,801 | 17,259,976 | 2,148,906 | 53,851,952 | 3,122,250 | 56,974,202 |
Balance (in Shares) at Dec. 31, 2021 | 24,528,000 | |||||||
Capital contributions from non-controlling interests | 41,905,792 | 41,905,792 | ||||||
Share-based compensation | 2,729,969 | 2,729,969 | 2,729,969 | |||||
Share-based compensation (in Shares) | ||||||||
Settlement for vested shares | $ 83 | (83) | ||||||
Settlement for vested shares (in Shares) | 833,550 | |||||||
Net income (loss) | (22,404,366) | (22,404,366) | (720,036) | (23,124,402) | ||||
Statutory reserves | 4,139 | (4,139) | ||||||
Foreign currency translation adjustment | (3,055,350) | (3,055,350) | (2,068,614) | (5,123,964) | ||||
Balance at Dec. 31, 2022 | $ 2,536 | $ 34,696,702 | $ 2,477,940 | $ (5,148,529) | $ (906,444) | $ 31,122,205 | $ 42,239,392 | $ 73,361,597 |
Balance (in Shares) at Dec. 31, 2022 | 25,361,550 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net (loss) income | $ (23,124,402) | $ (8,714,332) | $ 11,957,287 |
Adjusted to reconcile net income to cash (used in) provided by operating activities | |||
Depreciation and amortization | 2,062,499 | 988,672 | 865,426 |
Amortization of land use right | 126,042 | ||
Share-based compensation | 2,729,969 | ||
Deferred tax expenses (benefits) | 807,412 | (232,363) | (312,780) |
Interest expense | 213,823 | ||
Investment losses | 3,618,847 | 2,118,453 | 1,087 |
Bad debt expense | 2,887,754 | 3,847,426 | 1,514,559 |
Impairment on inventory | 2,711,158 | ||
Impairment on intangible assets | 2,650,020 | ||
Amortization of right-of-use assets | 213,063 | 90,320 | 359,551 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (1,734,486) | 1,729,006 | (8,385,804) |
Note receivable | (899,481) | ||
Due from related parties | (376,080) | 110,184 | (151,007) |
Operating lease liabilities | (94,381) | 31,145 | (312,900) |
Inventories | (18,747,772) | (331,491) | 667,758 |
Prepaid expenses and other current assets | (2,894,690) | (678,288) | (447,421) |
Accounts payable | 12,661,801 | (79,426) | |
Notes payable | 4,014,213 | ||
Income taxes payable | (3,696,654) | 2,565,098 | |
Deferred revenue | 549,274 | (75,857) | (322,534) |
Lease liabilities | (211,213) | ||
Due to related parties | 100,053 | ||
Deferred government subsidy | 2,973,491 | ||
Accrued expenses and other current liabilities | (21,528) | (208,190) | (852,731) |
Net cash (used in) provided by operating activities | (9,573,401) | (5,233,182) | 7,066,163 |
Cash flows from investing activities | |||
Purchase of property and equipment | (43,714,195) | (1,372,634) | (1,723,543) |
Disposal of property and equipment | 392 | ||
Prepayment for leasehold improvement | (228,457) | ||
Purchase of land use right | (197,554) | (6,947,051) | |
Purchase of intangible assets | (174,895) | (2,735,433) | |
Loans to third parties | (35,682) | (2,825,359) | |
Prepaid for investment | (650,909) | ||
Purchase of long-term investments | (2,289,945) | (1,678,514) | |
Purchase of short-term investments | (8,000,000) | ||
Consideration paid for asset acquisition | (1,486,746) | ||
Disposal of subsidiary | (9,300) | ||
Net cash used in investing activities | (45,609,072) | (22,095,198) | (6,365,555) |
Cash flows from financing activities | |||
Proceeds from capital contributions by controlling shareholders | 119,996 | ||
Proceeds from long term payable, net of issuance cost | 8,827,701 | ||
Repayment on long term payable | (887,788) | ||
Proceeds from issuance of ordinary shares in connection with initial public offering, net of issuance cost | 27,504,639 | ||
Loans from related party | 795,554 | ||
Proceeds from capital contributions by non-controlling shareholders | 37,024,594 | 3,332,622 | |
Net cash provided by financing activities | 45,760,061 | 30,837,261 | 119,996 |
Effect of foreign exchange rate on cash and cash equivalents | (899,786) | 141,322 | 706,302 |
Net (decrease) increase in cash and cash equivalents | (10,322,198) | 3,650,203 | 1,526,906 |
Cash, cash equivalents and restricted cash, beginning of year | 14,616,215 | 10,966,012 | 9,439,106 |
Cash, cash equivalents and restricted cash, end of year | 4,294,017 | 14,616,215 | 10,966,012 |
Cash, cash equivalents and restricted cash, end of year | 4,294,017 | 14,616,215 | 10,966,012 |
Less: non-current restricted cash | 2,638,468 | 700,060 | |
Cash and cash equivalents, end of year | 1,655,549 | 13,916,155 | 10,966,012 |
Supplemental disclosure of cash flow information | |||
Cash paid for income tax | 564,335 | 3,699,180 | 638,180 |
Supplemental non cash transactions | |||
Operating lease right-of-use assets obtained in exchange of operating lease liabilities | 311,638 | 64,402 | |
Inventories obtained in exchange for accounts receivable | 155,003 | ||
Inventories obtained in exchange for deferred revenue | 30,851 | ||
Long term investment obtained in exchange for accounts receivable | 652,401 | ||
Intangible assets obtained from capital contribution by non-controlling shareholders | $ 4,881,198 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Business Description [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION Sunrise New Energy Co., Ltd. (“EPOW”), previously known as Global Internet of People, Inc., or GIOP, is a limited liability company established under the laws of the Cayman Islands on February 22, 2019. It is a holding company with no business operation. On March 22, 2019, EPOW incorporated Global Mentor Board Information Technology Limited (“GMB HK”), a limited liability company formed in accordance with laws and regulations of Hong Kong. GMB HK is currently not engaging in any active business and is merely acting as a holding company of Beijing Mentor Board Union Information Technology Co, Ltd. (“GIOP BJ”). GIOP BJ was incorporated by GMB HK as a Foreign Enterprise in China on June 3, 2019. GIOP BJ incorporated Global Mentor Board (Beijing) Information Technology Co., Ltd. (“SDH”) and Shidong Cloud (Beijing) Education Technology Co., Ltd. (“Shidong Cloud”) on December 5, 2014 and December 22, 2021, respectively. SDH is a limited liability company incorporated on December 5, 2014 under the laws of China. Since 2017, SDH established several subsidiaries in China, including Global Mentor Board (Hangzhou) Technology Co., Ltd. (“GMB (Hangzhou)”), Global Mentor Board (Shanghai) Enterprise Management Consulting Co., Ltd. (“GMB Consulting”), Linking (Shanghai) Network Technology Co., Ltd. (“GMB Linking”, deconsolidated in July, 2021), Shanghai Voice of Seedling Cultural Media Co., Ltd. (“GMB Culture”), which has a majority owned subsidiary, Mentor Board Voice of Seedling (Shanghai) Cultural Technology Co., Ltd. (“GMB Technology”), Shidong (Beijing) Information Technology Co., Ltd. (“GMB (Beijing)”), and, Beijing Mentor Board Health Technology Co., Ltd. (“GMB Health”), Zibo Shidong Digital Technology Co., Ltd. (“Zibo Shidong”) and its major owned subsidiaries, Shidong Trading Service (Zhejiang) Co., Ltd (“Shidong Trading”, deregistered in November 2022), Shanghai Jiagui Haifeng Technology Co., Ltd. (“Jiagui Haifeng”), Shanghai Nanyu Culture Communication Co., Ltd. (“Nanyu Culture”) and Shanghai Yuantai Fengdeng Agricultural Technology Co., Ltd. (“Yuantai Fengdeng”, deregistered in April 2023). SDH and its subsidiaries are primarily engaged in providing peer-to-peer knowledge sharing and enterprise services to clients in the PRC. On October 8, 2021, EPOW incorporated SDH (HK) New Energy Tech Co., Ltd. (“SDH New Energy”), a limited liability company formed in accordance with laws and regulations of Hong Kong. SDH New Energy is acting as a holding company of Zhuhai (Zibo) Investment Co., Ltd (“Zhuhai Zibo”) and Zhuhai (Guizhou) New Energy Investment Co., Ltd. (“Zhuhai Guizhou”). Zhuhai Zibo and Zhuhai Guizhou were incorporated by SDH New Energy as Foreign Enterprises in China on October 15, 2021 and November 23, 2021, respectively. On August 26, 2022, GMB HK transferred its equity interest in GIOP BJ to Zhuhai Zibo. GIOP BJ eventually became the wholly owned subsidiary of Zhuhai Zibo. On November 8, 2021, Zhuhai Zibo incorporated Sunrise (Guizhou) New Energy Materials Co., Ltd. (“Sunrise Guizhou”). Sunrise Guizhou incorporated Sunrise (Guxian) New Energy Materials Co., Ltd. (“Sunrise Guxian”) and Guizhou Sunrise Technology Innovation Research Co., Ltd. (“Innovation Research”) on April 26, 2022 and December 13, 2022, respectively. On July 2, 2022, Sunrise Guizhou entered into purchase agreements with original shareholders of Guizhou Sunrise Technology Co., Ltd. (“Sunrise Tech”, formerly as Anlong Hengrui Graphite Material Co., Ltd.) to acquire 100% of Sunrise Tech’s assets and equity ownership. On July 7, 2022, Sunrise Tech became the wholly owned subsidiary of Sunrise Guizhou. Sunrise Guizhou and its subsidiaries are primarily engaged in manufacturing lithium battery materials to clients in the PRC. As described below in Reorganization, EPOW, through a restructuring which is accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent entity of its subsidiaries, and the primary beneficiary of the variable interest entity (the “VIE”), SDH, and the VIE’s subsidiaries for accounting purposes under U.S. GAAP. EPOW, its subsidiaries, the VIE and the VIE’s subsidiaries, are collectively hereinafter referred as the “Company”. Reorganization On June 10, 2019, GIOP BJ entered into a series of contractual arrangements with the owners of SDH. These agreements include an Exclusive Technical and Consulting Service Agreement, an Exclusive Service Agreement, an Exclusive Option Agreement and Powers of Attorney (collectively “VIE Agreements”). Pursuant to the above VIE Agreements, GIOP BJ has the exclusive right to provide SDH with comprehensive technical support, consulting services and other services in relation to the principal business during the term the VIE Agreement. All the above contractual arrangements obligate GIOP BJ to absorb a majority of the risk of loss from business activities of SDH and entitle GIOP BJ to receive a majority of their residual returns. In essence, GIOP BJ is the primary beneficiary of SDH for accounting purpose under U.S. GAAP. Therefore, SDH should be considered as a VIE under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation”. EPOW, together with its wholly-owned subsidiaries, GIOP BJ, VIE and VIE’s subsidiaries were effectively controlled by the same shareholders before and after the Reorganization and, therefore, the Reorganization is considered under common control. The consolidation of the Company has been accounted for at historical cost and prepared on the basis as if the Reorganization had become effective as of the beginning of the first period presented in the consolidated financial statements. The consolidated financial statements reflect the activities of the Company and each of the following entities: Name Date of Place of Percentage of Principal Activities Subsidiaries Global Mentor Board March 22, 2019 HK 100% Holding company Beijing Mentor Board Union June 3, 2019 PRC 100% Holding company of GIOP BJ Shidong Cloud (Beijing) Education Technology Co., Ltd (“Shidong Cloud”) December 22, 2021 PRC 75% Educational Consulting SDH (HK) New Energy Tech Co., Ltd. (“SDH New Energy”) October 8, 2021 HK 100% Holding company Zhuhai (Zibo) Investment Co., Ltd. (“Zhuhai Zibo”) October 15, 2021 PRC 100% New Energy Investment Zhuhai (Guizhou) New Energy Investment Co., Ltd. (“Zhuhai Guizhou”) November 23, 2021 PRC 100% New Energy Investment Sunrise (Guizhou) New Energy Materials Co., Ltd. (“Sunrise Guizhou”) November 8, 2021 PRC 39.35% Manufacture of Lithium Battery Materials Guizhou Sunrise Technology Co., Ltd. (“Sunrise Tech”) September 1, 2011 PRC 39.35% Manufacture of Lithium Battery Materials Sunrise (Guxian) New Energy Materials Co., Ltd. (“Sunrise Guxian”) April 26, 2022 PRC 20.07% Manufacture of Lithium Battery Materials Guizhou Sunrise Technology Innovation Research Co., Ltd. (“Innovation Research”) December 13, 2022 PRC 39.35% Research and Development Variable Interest Entity (“VIE”) and subsidiaries of VIE Global Mentor Board (Beijing) December 5, 2014 PRC VIE peer-to-peer knowledge sharing and enterprise service platform provider Global Mentor Board (Hangzhou) November 1, 2017 PRC 100% by VIE Consulting, training and tailored services provider Global Mentor Board (Shanghai) June 30, 2017 PRC 51% by VIE Consulting services provider Shanghai Voice of Seedling June 22, 2017 PRC 51% by VIE cultural and artistic exchanges and planning, conference services provider Shidong (Beijing) Information June 19, 2018 PRC 100% by VIE information technology services provider Mentor Board Voice of Seeding (Shanghai) August 29, 2018 PRC 30.6% by VIE Technical services provider Shidong Zibo Digital Technology Co., Ltd. (“Zibo Shidong”) October 16, 2020 PRC 100% by VIE Technical services provider Shidong Trading Service (Zhejiang) Co., Ltd. (“Shidong Trading”) April 19, 2021 PRC Deregistered in November 2022 Sale of Merchandise Shanghai Jiagui Haifeng Technology Co., Ltd. (“Jiagui Haifeng”) November 29, 2021 PRC 51% by VIE Business Incubation Services provider Shanghai Nanyu Culture Communication Co., Ltd. (“Nanyu Culture”) July 27, 2021 PRC 51% by VIE Enterprise Information Technology Integration services provider Beijing Mentor Board Health Technology Co., Ltd (“GMB Health”) January 7, 2022 PRC 100% by VIE Health Services Shanghai Yuantai Fengdeng Agricultural Technology Co., Ltd. (“Yuantai Fengdeng”) March 4, 2022 PRC 51% by VIE Agricultural Technology Service The VIE contractual arrangements Neither the Company nor the Company’s subsidiaries own any equity interest in SDH. Instead, The Company controls and receives the economic benefits of SDH’s business operation through a series of contractual arrangements. GIOP BJ, SDH and its shareholders entered into a series of contractual arrangements, also known as VIE Agreements, in June 2019. The VIE agreements are designed to provide GIOP BJ with the power, rights and obligations equivalent in all material respects to those it would possess as the sole equity holder of SDH, including absolute control rights and the rights to the assets, property and revenue of SDH. Each of the VIE Agreements is described in detail below: Exclusive Technical and Consulting Services Agreement Pursuant to the Exclusive Technical and Consulting Services Agreement between SDH and GIOP BJ (the “Exclusive Service Agreement”), GIOP BJ provides SDH with technical support, consulting services, business support and other management services relating to its day-to-day business operations and management, on an exclusive basis, utilizing its advantages in technology, human resources, and information. For services rendered to SDH by GIOP BJ under the Exclusive Service Agreement, GIOP BJ is entitled to collect a service fee approximately equal to SDH’s earnings before corporate income tax, i.e., SDH’s revenue after deduction of operating costs, expenses and other taxes, subject to adjustment based on services rendered and SDH’s operation needs. This agreement became effective on June 10, 2019 and will remain effective unless otherwise terminated as required by laws or regulations, or by relevant governmental or regulatory authorities otherwise terminated earlier in accordance with the provisions of this agreement or relevant agreements separately executed between the parties. Nevertheless, this agreement shall be terminated after all the equity interest in SDH held by its shareholders and/or all the assets of SDH have been legally transferred to GIOP BJ and/or its designee in accordance with the Exclusive Option Agreement (described below). The Chief Executive Officer (“CEO”) of GIOP BJ, Mr. Haiping Hu, is currently managing SDH pursuant to the terms of the Exclusive Service Agreement. The Exclusive Service Agreement does not prohibit related party transactions. The Company’s audit committee will be required to review and approve in advance any related party transactions, including transactions involving GIOP BJ or SDH. Equity Pledge Agreement Under the Equity Pledge Agreement between GIOP BJ, and shareholders of SDH, together holding 100% of the shares of SDH (“SDH Shareholders”), the SDH Shareholders pledged all of their equity interests in SDH to GIOP BJ to guarantee the performance of SDH’s obligations under the Exclusive Service Agreement. Under the terms of the Equity Pledge Agreement, in the event that SDH or the SDH Shareholders breach their respective contractual obligations under the Exclusive Service Agreement, GIOP BJ, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The SDH Shareholders also agreed that upon occurrence of any event of default, as set forth in the Equity Pledge Agreement, GIOP BJ is entitled to dispose of the pledged equity interests in accordance with applicable PRC laws. The SDH Shareholders further agreed not to dispose of the pledged equity interests or take any actions that would prejudice GIOP BJ’s interests without the prior written consent of GIOP BJ. The Equity Pledge Agreement is effective until: (1) the secured debt in the scope of pledge is cleared off; and (2) Pledgers transfer all the pledged equity interests to Pledgees according to the Equity Pledge Agreement, or other entity or individual designated by it. The purposes of the Equity Pledge Agreement are to (1) guarantee the performance of SDH’s obligations under the Exclusive Service Agreement; (2) make sure the SDH Shareholders do not transfer or assign the pledged equity interests, or create or allow any encumbrance that would prejudice GIOP BJ’s interests without GIOP BJ’s prior written consent. In the event SDH breaches its contractual obligations under the Exclusive Service Agreement, GIOP BJ will be entitled to dispose of the pledged equity interests. Exclusive Option Agreement Under the Exclusive Option Agreement, the SDH Shareholders irrevocably granted GIOP BJ (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in SDH or the assets of SDH. The option price to be paid by GIOP BJ to each shareholder of SDH is RMB10 (approximately US$1.45) or the minimum amount to the extent permitted under PRC law at the time when such transfer occurs. Under the Exclusive Option Agreement, GIOP BJ may at any time under any circumstances, purchase, or have its designee purchase, at its discretion, to the extent permitted under PRC law, all or part of the SDH Shareholders’ equity interests in SDH or the assets of SDH. The Equity Pledge Agreement, together with the Equity Pledge Agreement, the Exclusive Service Agreement, and Powers of Attorney, enable GIOP BJ to be the primary beneficiary of SDH. The Exclusive Option Agreement remains effective until all the equity or assets of SDH is legally transferred under the name of GIOP BJ and/or other entity or individual designated by it, or unilaterally terminated by GIOP BJ within 30-day prior written notice. Powers of Attorney Under each of the Powers of Attorney, the SDH Shareholders authorized GIOP BJ to act on their behalf as their exclusive agent and attorney with respect to all rights as shareholders, including, but not limited to: (a) attending shareholders’ meetings; (b) exercising all the shareholder’s rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including, but not limited to, the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer, and other senior management members of SDH. The Powers of Attorney are irrevocable and continuously valid from the date of execution of the Powers of Attorney, so long as the SDH Shareholders own the equity interests of SDH. Spousal Consent Pursuant to the Spousal Consent, each spouse of the individual shareholders of SDH irrevocably agreed that the equity interest in SDH held by their respective spouses would be disposed of pursuant to the Equity Interest Pledge Agreement, the Exclusive Option Agreement, and the Powers of Attorney. Each spouse of the shareholders agreed not to assert any rights over the equity interest in SDH held by their respective spouses. In addition, in the event that any spouse obtains any equity interest in SDH through the respective shareholder for any reason, he or she agreed to be bound by the contractual arrangements. Risks in relation to the VIE structure EPOW believes that the contractual arrangements with its VIE and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the EPOW’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. The Company’s ability to conduct its wisdom sharing and enterprise consulting business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE in its consolidated financial statements as it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIE. Total assets and liabilities presented on the Company’s consolidated balance sheets and revenue, expense, net income presented on consolidated statement of operations and comprehensive income as well as the cash flow from operating, investing and financing activities presented on the consolidated statement of cash flows are substantially the financial position, operation and cash flow of the Company’s VIE and VIE’s subsidiaries. The Company has not provided any financial support to SDH for the years ended December 31, 2022, 2021 and 2020. The following financial statements of the VIE and VIE’s subsidiaries were included in the consolidated financial statements as of December 31, 2022 and 2021 and for the year ended December 31, 2022, 2021 and 2020: As of December 31, 2022 2021 Cash and cash equivalents $ 336,871 $ 3,870,916 Accounts receivable, net 200,539 6,861,672 Inventories 3,590 2,865,958 Due from related parties 391,982 52,268 Prepaid expenses and other current assets 2,537,524 3,002,698 Total current assets 3,470,506 16,653,512 Long term prepayments and other non-current assets 14,358 - Plant, property and equipment, net 2,874,500 3,351,321 Intangible assets, net 31,036 3,594,977 Long-term investments 3,019,281 5,381,441 Operating lease right-of-use assets - 224,773 Deferred tax assets - 852,037 Total non-current assets 5,939,175 13,404,549 Total assets $ 9,409,681 $ 30,058,061 Accounts payable $ 50,953 $ 34,486 Deferred revenue 222,605 179,407 Deferred revenue - related parties 347,471 - Deferred government subsidy 2,871,665 - Income taxes payable 506,638 1,076,518 Due to related parties 96,627 - Operating lease liabilities, current - 99,569 Accrued expenses and other current liabilities 293,699 313,685 Total current liabilities 4,389,658 1,703,665 Total liabilities $ 4,389,658 $ 1,703,665 For the years ended 2022 2021 2020 Total net revenue $ 613,679 $ 7,409,272 $ 23,107,340 Net (loss) income $ (15,438,135 ) $ (5,629,408 ) $ 11,931,079 For the years ended 2022 2021 2020 Net cash (used in) provided by operating activities $ (3,320,442 ) $ 2,314,408 $ 6,998,407 Net cash used in investing activities $ - $ (3,025,281 ) $ (6,493,837 ) Net cash provided by financing activities $ - $ - $ 119,996 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The 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. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries for which the Company is the ultimate primary beneficiary for accounting purpose only under U.S. GAAP. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. The Company owns 39.35% equity interest in Sunrise Guizhou, but has the power to cast a majority of votes at the meeting of the board of directors and governs the financial and operating policies of Sunrise Guizhou under an agreement among the shareholders. All transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. Non-controlling interests Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. As of December 31, 2022, for the Company’s consolidated subsidiaries, the VIE and VIE’ s subsidiaries, non-controlling interests represent: a) a non-controlling shareholder’s 49% ownership interest in GMB (Beijing), GMB Consulting, Nanyu Culture and Jiagui Haifeng; b) a non-controlling shareholder’s 60.65% ownership interest in Sunrise Guizhou; c) a non-controlling shareholder’s 49% ownership interest in GMB Culture, which has a subsidiary called GMB Technology; and d) a non-controlling shareholder’s 25% ownership interest in Shidong Cloud, and 40% ownership interest in Shidong Trading. As of December 31, 2021, for the Company’s consolidated subsidiaries, VIE and VIE’ s subsidiaries, non-controlling interests represent: a) a non-controlling shareholder’s 49% ownership interest in Sunrise Guizhou, GMB (Beijing), GMB Consulting, Nanyu Culture and Jiagui Haifeng; b) a non-controlling shareholder’s 49% ownership interest in GMB Culture, which has a subsidiary called GMB Technology; c) a non-controlling shareholder’s 25% ownership interest in Shidong Cloud, and 40% ownership interest in Shidong Trading. Non-controlling interests are presented 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 Operations and Comprehensive (Loss) Income to distinguish the interests from that of the Company. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management, include, but are not limited to, the assessment of the allowance for doubtful accounts, inventory valuation, depreciable lives of property and equipment, impairment of long-lived assets and realization of deferred tax assets. Actual results could differ from those estimates. Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Company’s consolidated financial statements are reported using the U.S. Dollars (“US$” or “$”). The results of operations and the consolidated statements of 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 translation rate, 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 (loss) income included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) 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 preparing the consolidated financial statements: December 31, December 31, December 31, Year-end spot rate US$1= RMB 6.9646 US$1= RMB 6.3757 US$1= RMB 6.5249 Average rate US$1= RMB 6.7261 US$1= RMB 6.4515 US$1= RMB 6.8976 Fair value measurements The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, restricted cash, accounts receivable, notes receivable, due from related parties, advance to suppliers, prepaid expenses and other current assets, deferred revenue, income taxes payable, accounts payable, note payable, due to related parties, accrued expenses and other current liabilities approximate their fair value based on the short-term maturity of these instruments. The carrying amount of non-current long term payables and consideration payable approximates fair value as its interest rates are at the same level of current market yield for comparable loans. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired. As a practical expedient, the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of its certain fund investment. NAV is primarily determined based on information provided by external fund administrators. The Group’s investments valued at NAV as a practical expedient are private equity funds, which represent the short term investment on the balance sheet. Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits in accounts maintained with commercial banks, as well as highly liquid investments which are unrestricted as to withdrawal or use and are readily convertible to known amounts of cash. The interest incomes of highly liquid investments are reported in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company maintains the bank accounts in Mainland China and Hong Kong. Cash balances in bank accounts in Mainland China and Hong Kong are not insured by the Federal Deposit Insurance Corporation or other programs. Restricted cash Restricted cash represent bank deposits with designated use, which cannot be withdrawn without certain approval or notice. Restricted cash classified as a long-term asset on the Company’s consolidated balance sheets consists of cash equivalents restricted as to withdrawal or use which matures in more than twelve months after the balance sheet date. Such restricted cash relates to an escrowed fund of listing companies. The escrowed fund shall be held by the Escrow Agent for the purpose of satisfying the initial $700,000 of the indemnification obligations of the Company, with respect to the Escrowed Funds, for a period of 24 months from the closing of the Offering the Company’s initial public offering in February 2021. Short-term investments The Company evaluates whether an investment is other-than-temporarily impaired based on the specific facts and circumstances. Factors that are considered in determining whether an other-than-temporary decline in value has occurred include the market value of the security in relation to its cost basis, the financial condition of the investee, and the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. Accounts receivable, net Accounts receivables mainly represent amounts due from clients in the ordinary course of business and are recorded net of allowance for doubtful accounts. The Company mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of historical bad debts, creditworthiness and financial conditions of the clients, current economic trends and changes in client payment patterns. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. The valuation allowance provided was $8,047,527 and $5,744,387 as of December 31, 2022 and 2021, respectively. Inventories, net The inventories as of December 31, 2022 consisted of raw materials, materials in transit, work in process and finished goods. Finished goods were mainly graphite anode materials, health service gift cards, learning course gift cards, Chinese tea, latex pillows and health care products. Costs include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized in the value of inventories. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products. The valuation allowance provided for the inventory was $2,711,158, $ nil nil Part of the Company’s finished goods, such as health service gift cards, learning course gift cards, Chinese tea, latex pillows and health care products, were obtained through fee exchange arrangements with its customers prior to 2022. These arrangements were entered into at the Company’s discretion to receive inventory in exchange of collection of account receivables and deferred revenue due from the customers. The Company accounted for these nonmonetary exchanges based on the fair values of the assets involved. The cost of inventories acquired in exchange was initially measured at the fair value of the accounts receivable the Company surrendered to obtain them. Lease At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assess whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term. Operating lease right-of-use of assets The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Operating lease liabilities Lease liability is initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the Company incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed lease payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee and any exercise price under a purchase option that the Company is reasonably certain to exercise. Lease liability is measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if there is any change in the Company assessment of option purchases, contract extensions or termination options. Short-term leases The Company has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less. Lease payments associated with these leases are expensed as incurred. Sales and leaseback contracts The Company enters sale and leaseback transactions. The Company acts as the seller-lessee, transfers its assets to a third-party entity (the buyer-lessor) and then leases the transferred assets back from the buyer-lessor at a contract designated rental price. The Company evaluates if sales of the underlying assets in the sale and leaseback contract has occurred in accordance with ASC 606. When a sale and leaseback transaction does not qualify for sale accounting, the transaction is accounted for as a financing transaction by the seller-lessee and a lending transaction by the buyer-lessor. The seller-lessee shall not derecognize the transferred asset and shall account for any amounts received as a financial liability. Plant, property and equipment, net Plant, property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives, as follows: Building 30 years Machines 10 years Electronic equipment 3 years Furniture, fixtures and equipment 3 years Vehicle 3 years Leasehold improvements The shorter of useful life and lease term 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 betterments 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 Operation and Comprehensive (Loss) Income in other income or expenses. Land use right, net Land use rights are recorded at cost less accumulated amortization and amortized on a straight-line basis over the remaining term of the land certificates, from 40 years to 50 years. Intangible assets, net The Company’s intangible assets represent intellectual property rights on manufacturing graphite anode materials from capital injection by a non-controlling shareholder of Sunrise Guizhou and the copyright of course videos purchased from a third party including but not limited to course videos which cover subjects such as entrepreneurship development, financial service, corporate governance, team management, marketing strategy and etc. Intangible assets are stated at cost less accumulated amortization and amortized on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets are determined to be 5 to 10 years in accordance with the period the Company estimates to generate economic benefits from such intellectual property rights and copyright. Long-term investments Equity method investments in investees represent the Company’s investments in privately held companies, over which it has significant influence but does not own a majority equity interest or otherwise control. The Company applies the equity method to account for an equity investment, in common stock or in-substance common stock, according to ASC 323 “Investment — Equity Method and Joint Ventures”. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investee is recognized in the consolidated income statements and its share of post-acquisition movements in accumulated other comprehensive income is recognized in shareholders’ equity. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. Investment loss for long-term investments of $14,072, $41,925 and $1,087 were recorded in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended December 31, 2022, 2021 and 2020, respectively. For other equity investments that do not have readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock, the Company accounts for these investments at cost minus any impairment, if necessary. The Company continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the financial condition, operating performance and the prospects of the equity investee. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity investee is written down to fair value. Impairment charges for long-term investments were $979,426, $ nil nil Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. Impairments charges for intangible assets were $2,650,020, $ nil nil Asset acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s consolidated financial statements. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. Share-based compensation Share-based compensation are measured based on the grant date fair value of the equity instrument. Share-based compensation expenses are recognized over the requisite service period based on the graded vesting attribution method with corresponding impact reflected in additional paid-in capital. When no future services are required to be performed by grantees in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. Government subsidies The Company’s PRC based subsidiary received government subsidies from local government. Government subsidies are recognized when there is reasonable assurance that the attached conditions will be complied with. When the government subsidy relates to an expense item, it is net against the expense and recognized in the consolidated statements of income and comprehensive income over the period necessary to match the subsidy on a systematic basis to the related expenses. Where the subsidy relates to an asset acquisition, it is recognized as income in the Consolidated Statements of Operations and Comprehensive (Loss) Income in proportion to the useful life of the related assets. Government grants received for the years ended December 31, 2022, 2021 and 2020 were $3,048,035, $458,182 and $101,485, respectively. As of December 31, 2022 and 2021, the deferred government grants were $2,871,665 and $ nil Revenue recognition The Company recognizes revenue under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the 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 the company satisfies a performance obligation The Company mainly offers and generates revenue from five kinds of services to its clients in China, sales of graphite anode materials, member services, enterprise services, online services and other services. Enterprise services include comprehensive tailored services, sponsorship advertising services, and consulting services. Revenue recognition policies for each type of the Company’s services are discussed as follows: Sales of graphite anode materials The Company’s major business is to sell graphite anode materials to its customers. The Company’s major customers are manufacturers of industrial and consumer energy storage lithium-ion batteries, such as batteries for electric vehicles and electric ships, and smart consumer electronics. The Company examines the availability of the inventory, takes control of products in its warehouses, and then organizes the shipping and delivery of products to customers after the purchase orders are received from customers. The Company accounts for revenue from sales of graphite anode materials on a gross basis as the Company is responsible for fulfilling the promise to provide the desired products to customers, and is subject to inventory risk before the product ownership and risk are transferred and has the discretion in establishing prices. All of the Company’s contracts and purchase orders are fixed prices and have one single performance obligation as the promise is to transfer the products to customers, and there are no separately identifiable other promises in the contracts. The Company’s revenue from sales of graphite anode materials is recognized at a point in time when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. There is no separate rebate, discount, or volume incentive involved. Revenue is reported net of all value added taxes (“VAT”). Member services The Company offers three tiers of member services, Platinum, Diamond and Protégé, which differ in membership fees as well as the level of the services provided. Members pay a fixed fee for exchange of the right to participate in organized activities offered by the Company, such as study tours and forums, typically within one-year membership period. Any non-participating activities will expire and not be refunded beyond the agreed-upon period. Each member is entitled to choose from same activities offered by the Company for a total of seven times but different level of membership will receive different level of privileges at each activity, such as seating arrangement or private consultation opportunity etc. The activities for Platinum Members are also open to non-members, who pay a pre-set fee for participating in a single activity, while the Company does not offer Diamond and Protégé services to non-members separately. Each activity represents a separate performance obligation, which is typically 5 days or less. The Company uses an expected cost plus margin approach to estimate the standalone selling prices of each activity. As Members can benefit from each activity on their own in the same way and there is no material difference in the Company’s delivering costs, such as number of staffs involved and size of each activity. Therefore, membership fees are equally allocated to seven performance obligations when the Company determines transaction price of each performance obligation. The Company recognizes membership fees as revenue upon completion of each activity as the duration of each activity is short. Membership fees from non-participating activity will be recognized when the agreed-upon period has expired. Membership fees collected in advance are recorded as deferred revenue on the consolidated balance sheets. Enterprise services The Company charges its clients service fees for providing enterprise services, which mainly include comprehensive tailored services, sponsorship advertising services and consulting services. Comprehensive tailored services The comprehensive tailored services provide tailored packaged services to small and medium business, including conference and salon organization, booth exhibition services, on-site Mentors’ guidance, and other value-added services. The Company typically signs one-year framework agreements and a tailored services contract with the clients, which list the types of tailored services as ordered by the clients to fit their specific needs. Each tailored service is a separate performance obligation under ASC 606, as these performance obligations are distinct, the clients can benefit from each service on their own and the Company’s promises to deliver the services are separately identifiable from each other in the services contract. The performance of each tailored service is usually on a specific date designated by the clients. The Company establishes a uniform list for the unit price of each type of tailored services with reference to quoted market prices. If no quoted market price is available, the price will be estimated by using an expected cost plus a margin approach. The Company recognizes the price for each tailored service as revenue when the service has been provided on a specific date designated and the receipt of each tailored services is confirmed by the clients. If a client does not request certain items of the tailored services included in the services contract during the agreed-upon period, the Company will not refund the service fees and the revenue will be recognized upon expiration of service contracts. The tailored services fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Sponsorship advertising service The Company provides sponsorship advertising service for its clients at certain activities it held, i.e. study tours and forums. The sponsorship advertising services are mainly to display banners with the clients’ information and distribute clients’ brochures through the activities, so that the clients can enhance their corporate and product image. The fee the Company charges for sponsorship advertising service is depending on multiple specific factors, including number of event participants, location, public interest, etc. The Company considers all factors and determines pricing for each contract separately. The sponsorship advertising fees are recognized as revenue when services have been provided on a specific date designated and receipt of sponsorship advertising services are confirmed by clients. Sponsorship advertising fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Consulting services The Company provides consulting services to small and medium-sized enterprises by helping them to develop strategies and solutions including: corporate reorganization, product promotion and marketing, industry supply chain integration, corporate governance, financing and capital structure, etc. The consulting services are tailored to meet each client’s specific needs and requirements. Consulting fees are based on the specifics of the services provided, for instance, time and efforts required, etc. The Company considers comprehensive factors and determines prices with reference to quoted market prices. If no quoted market price is available, price will be estimated by using an expected cost plus a margin approach. Consulting fees are recognized as revenue when services have been provided and receipt of consulting services is confirmed by clients as the duration of services is short, typically one month or less. Consulting fees collected before providing any service are presented as deferred revenue on the consolidated balance sheets. Online services The Company provides two types of online services to the Company’s APP Users, which are questions and answers (Q&A) session with chosen Mentors and online streaming of courses and programs. Top-up credits are paid by Users through the Company’s APP platform, using which Users can purchase the online services. Users can raise questions to chosen Mentors or Experts with a fixed fee per Q&A session preset by Mentors or Experts. The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. The Company granted Users the access to view various online courses and programs. Users can subscribe an annual VIP at a rate of RMB299. The VIP grants Users the access right to the Company’s VIP courses and programs over the subscription period. The Company recognizes the VIP annual subscription fees as revenue on a straight |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2022 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 3 – LIQUIDITY As reflected in the consolidated financial statements, the Company has been incurring $23,124,402 and $8,714,332 net losses for the years ended December 31 2022 and 2021, respectively. Net cash used in operating activities were $9,573,401 and $5,233,182 for the years ended December 31, 2022 and 2021, respectively. Total cash, cash equivalents and restricted cash decreased by $10,322,198 for the year ended December 31, 2022. Management expected to continue to construct the production plant in Guizhou Sunrise. In 2022, the ongoing COVID-19 pandemic continued to negatively impact the Company’s business operations. A resurgence of the COVID-19 outbreak had given rise to economic downturns and other significant changes in regional and global economic conditions, and negatively affected the Company’s ability to execute the sales contract, fulfil customer orders, and collect customer payments timely. As a result, there was a possibility that the Company’s revenue and cash flows might underperform in the next 12 months. These adverse conditions and events raised substantial doubt about the Company’s ability to continue as a going concern. For the next 12 months from the issuance date of this report, the Company plans to continue implementing various measures to boost revenue and controlling the cost and expenses within an acceptable level. The Company is in the process of transitioning peer-to-peer knowledge sharing and enterprise business to graphite anode material business. In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources and ability to obtain additional financial support in the future, and its operating and capital expenditure commitments. As of December 31, 2022, the Company had cash of $1,655,549. The management believes that it would be able to make borrowings from banks based on past experience and the Company’s good credit history when necessary. As of December 31, 2022, the Company had available line of credit from Bank of Guizhou for RMB 6,500,000, approximately $933,291. On January 18, 2023, Sunrise Guizhou entered a credit facility agreement with Post Savings Bank of China (“Post Bank”) to obtain revolving fund up to RMB 30,000,000, approximately $4,307,498, for a term from January 19, 2023 to January 18, 2031. On February 7, 2023, Sunrise Guizhou entered a two-year debt financing arrangement with Zhongguancun Science and Technology Leasing Co., Ltd. to obtain a loan of RMB 20,000,000, approximately $2,871,665, for a term from February 7, 2023 to February 7, 2025. Currently, the Company is working to improve its liquidity and capital sources primarily through cash flows from operation, debt financing, and financial support from its principal shareholder. In order to fully implement its business plan and sustain continued growth, the Company may also seek equity financing from outside investors when necessary. Based on the current operating plan, management believes that the above-mentioned measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital requirement for at least 12 months from the date the consolidated financial statements are issued. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE, NET Accounts and notes receivable consisted of the following: As of December 31, 2022 2021 Accounts receivable $ 13,215,228 $ 12,606,059 Allowance for doubtful accounts (8,047,527 ) (5,744,387 ) Accounts receivable, net $ 5,167,701 $ 6,861,672 The movement of allowance of doubtful accounts is as follows: As of December 31, 2022 2021 2020 Balance at beginning of the year $ 5,744,387 $ 1,808,889 $ 194,375 Current year addition 2,887,754 3,890,827 1,514,559 Write-off - (43,401 ) - Foreign currency translation adjustments (584,614 ) 88,072 99,955 Balance at end of the year $ 8,047,527 $ 5,744,387 $ 1,808,889 Doubtful accounts provision was $2,887,754, $3,847,426 and $1,514,559 recorded for the years ended December 31, 2022, 2021 and 2020, respectively. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net [Abstract] | |
INVENTORIES, NET | NOTE 5 – INVENTORIES, NET Inventories as of December 31, 2022 and 2021 consisted of the following: As of December 31, 2022 2021 Raw materials $ 3,237,940 $ - Finished Goods 12,842,333 3,105,673 Graphite anode materials 12,842,333 - Healthcare service gift cards - 1,276,550 Chinese tea - 718,426 Learning course gift cards - 454,852 Latex pillows - 138,246 Healthcare products - 207,348 Others - 310,251 Work in process 2,246,653 - Others 3,590 - Total $ 18,330,516 $ 3,105,673 As of December 31, 2021, other than cash purchase, a portion of the Company’s inventories were obtained through fee exchange arrangements with its customers, which are entered into at the Company’s discretion to receive inventory in exchange for collection of accounts receivable due from the customers. These inventories are all commodities available for sale. to the estimated net realizable value, which was $ nil Inventory valuation allowance was $2,711,158, $ nil nil |
Short-Term Investment
Short-Term Investment | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Investment [Abstract] | |
SHORT-TERM INVESTMENT | NOTE 6 – SHORT-TERM INVESTMENT In February 2021, the Company entered into an investment agreement with Viner Total investment Fund (the “Fund”) to invest the Fund with the total investment consideration of $8,000,000. The Fund is an exempted company incorporated in the Cayman Islands and managed by Mainstream Fund Services (HK). The Fund is invested in a wide range of instruments with no specific limitations. The redemption of such shares for cash can be made with a one-month advanced written notice (such advanced written notice period can be extended by the administrator). The value of private equity fund are measured at fair value with gains and losses recognized in earnings. As a practical expedient, the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of the Fund. NAV is primarily determined based on information provided by external fund administrators. The NAV of the Fund was $3,336,256, and $5,961,605 as of December 31, 2022 and 2021. Investment loss of $2,625,349 and $2,038,395 was recorded in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended December 31, 2022 and 2021, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 7 – PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2022 2021 Prepaid expenses $ 211,365 $ 703,281 Advance to supplier 2,820,551 1,759,253 Loans to third parties (1) 2,873,818 840,685 Prepayment for investment (2) 1,206,099 650,909 Other receivables 401,936 299,864 Interest receivable 365,478 171,840 Prepaid value added tax (“VAT”) and income tax (3) 4,468,404 123,100 Deposits for operating lease 36,574 43,090 Subtotal 12,384,225 4,592,022 Less: allowance for other receivables (143,583 ) (156,847 ) Total $ 12,240,642 $ 4,435,175 (1) On March 8, 2021, the Company signed a loan contract with a third party, Waichun Logistics Technology Limited (“Waichun”), to lend $825,000, with annual interest rate of 8%, and will be due on May 10, 2022. The Company renewed the contract with Waichun on May 10, 2022 to extend the loan period to December 31, 2023; Besides, the Company signed a loan contract on March 8, 2021 and renewed it on March 6, 2022 with Waichun to lend $2,000,000 with annual interest rate of 8%, which will be due on December 31, 2023. (2) In September 2021, the Company prepaid $650,909 to acquire 61.5% equity interest of Haicheng Shenhe Technology Co., Ltd. (“Haicheng Shenhe”) The Company and the shareholders of Haicheng Shenhe agreed on the termination of the acquisition however the acquisition fund had not been paid back as of December 31, 2022. One of the shareholders in Haicheng Shenhe, Mr. Wenwu Zhang, was nominated as the Director of Sunrise Guizhou and a balance of $337,421 was reclassified to due from related parties as of December 31, 2022. (3) The amount of VAT payable is determined by applying the applicable tax rate to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company’s input VAT exceeded output VAT as the Company purchased property, plant and equipment for the manufacture on graphite anode materials as of December 31, 2022. |
Long Term Prepayments and Other
Long Term Prepayments and Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Long Term Prepayments and Other Non-Current Assets [Abstract] | |
LONG TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS | NOTE 8 – LONG TERM PREPAYMENTS AND OTHER NON-CURRENT ASSETS As of December 31, 2022 2021 Prepaid for land use right (1) - 6,947,051 Prepaid for equipment (2) 3,836,627 1,297,866 Loans to third party (3) - 2,000,000 Others 15,329 - Total $ 3,850,985 $ 10,244,917 (1) The Company’s subsidiary Sunrise Guizhou signed to purchase land use right from Qianxinan public resources trading center, with an area of 260,543 square meters and prepaid the consideration of $6,947,051. The land use right had been registered under Sunrise Guizhou on June 10, 2022. (2) Prepaid for equipment represented advance payment on the production line equipment by Sunrise Guizhou, which had not been shipped as of December 31, 2022. (3) The Company signed a loan contract on March 8, 2021 and renewed it on March 6, 2022 with Waichun to lend $2,000,000 with annual interest rate of 8%, which will be due on December 31, 2023. The loan was reclassified to current assets that its maturity was within a year. |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Plant, Property and Equipment, Net [Abstract] | |
PLANT, PROPERTY AND EQUIPMENT, NET | Note 9 – PLANT, PROPERTY AND EQUIPMENT, NET Plant, property and equipment, stated at cost less accumulated depreciation, consisted of the following: As of December 31, 2022 2021 Building $ 4,656,184 $ 3,061,496 Machines 16,341,419 - Vehicles 332,113 106,266 Electronic equipment 587,131 100,148 Furniture, fixtures and equipment 139,650 82,104 Leasehold improvements 405,141 442,563 Subtotal 22,461,638 3,792,577 Construction in progress 20,135,220 - Less: accumulated depreciation (1,128,475 ) (441,256 ) Plant, property and equipment, net $ 41,468,383 $ 3,351,321 Depreciation expense was $750,220, $198,747 and $126,589 for the fiscal years ended December 31, 2022, 2021 and 2020, respectively. |
Land Use Rights, Net
Land Use Rights, Net | 12 Months Ended |
Dec. 31, 2022 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS, NET | NOTE 9 – LAND USE RIGHTS, NET Land use rights, stated at cost less accumulated amortization, consisted of the following: As of December 31, 2022 2021 Land use rights - cost $ 10,204,968 $ - Less: accumulated amortization (121,726 ) - Land use rights, net $ 10,083,242 $ - For the years ended December 31, 2022, 2021 and 2020, amortization expense amounted to $126,042 and $ nil nil 2023 $ 221,617 2024 221,617 2025 221,617 2026 221,617 2027 and thereafter 9,196,774 Total $ 10,083,242 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 10 – INTANGIBLE ASSETS, NET Intangible assets, stated at cost less accumulated amortization and impairment, consisted of the following: As of December 31, 2022 2021 Copyrights of course videos $ 4,876,413 $ 5,326,829 Intellectual property rights 4,498,261 - Intangible assets, cost 9,374,674 5,326,829 Less: Accumulated amortization (2,852,753 ) (1,731,852 ) Impairment (2,559,271 ) - Intangible assets, net $ 3,962,650 $ 3,594,977 For the years ended December 31, 2022, 2021 and 2020, amortization expense amounted to $1,312,279 and $789,925 and $738,837, respectively. The following is a schedule of future amortization of intangible asset as of December 31, 2022: 2023 $ 716,271 2024 716,271 2025 716,271 2026 716,271 2027 and thereafter 1,097,568 Total $ 3,962,650 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Investments [Line Items] | |
LONG-TERM INVESTMENTS | NOTE 11 – LONG-TERM INVESTMENTS The Company’s long-term investments consist of the following: As of December 31, 2022 2021 Equity method investments: Shidong (Suzhou) Investment Co., Ltd. (“Suzhou Investment”) $ 37,056 $ 55,324 Equity investments without readily determinable fair value: Shenzhen Jiazhong Creative Capital LLP (“Jiazhong”) 1,435,832 1,568,455 Beijing Xingshuizhixing Technology Co., Ltd. (“Xingshuizhixing”) 1,148,665 1,254,764 Zhejiang Wangxin Health Technology Co., Ltd. (“Wangxin”) - 1,035,180 Hangzhou Zhongfei Aerospace Health Management Co., Ltd. (“Zhongfei”) 430,750 470,537 Shanghai Zhongren Yinzhirun Investment Management Partnership (“Yinzhirun”) 287,167 313,691 Jiangxi Cheyi Tongcheng Car Networking Tech Co., Ltd.(“Cheyi”) 227,970 249,027 Chengdu Zhongfuze Management LLP(“Zhongfuze”) 71,792 78,423 Shanghai Outu Home Furnishings Co., Ltd. (“Outu”) 71,792 78,423 Zhejiang Qianshier Household Co., Ltd.(“Qianshier”) 71,792 78,423 Taizhoujia Menkou Auto Greengrocer’s Delivery Technology Co., Ltd. (“Taizhoujia”) 71,792 78,423 Zhejiang Yueteng Information Technology Co., Ltd. (“Yueteng”) 71,792 78,423 Shidong Funeng(Ruzhou) Industry Development Co., Ltd.( “Funeng”) 38,767 42,348 Dongguan Zhiduocheng Car Service Co., Ltd. (“Car Service”) 25,845 28,232 Subtotal 3,991,012 5,409,673 Less: impairment (971,731 ) (28,232 ) Total $ 3,019,281 $ 5,381,441 Equity method investments Investment in Suzhou Investment In December 2017, the Company acquired 17% of shareholding of Suzhou Investment with cash consideration of RMB 850,000. As the Company’s CEO, Mr. Haiping Hu is Suzhou Investment’s director and the Company can exercise significant influence on Suzhou Investment’s business operation, the Company therefore accounted for this investment under equity methods from December 2017 and share the profit or loss of Suzhou Investment accordingly. For the years ended December 31, 2022, 2021 and 2020, the Company recognized investment losses of $14,072, $14,025 and $15,585, respectively, according to its share of the post-acquisition losses of Suzhou Investment. Equity investments without readily determinable fair value Investment in Jiazhong In December 2020, the Company acquired 33% of partnership share of Jiazhong as a limited partner with cash consideration of RMB 10,000,000, approximately $1,435,832. The Company has fully paid RMB 10,000,000 as of December 31, 2020. The Company does not have significant influence or control over Jiazhong, and the partnership share investment does not have readily determinable market value, and therefore accounted for the investment of Jiazhong at cost minus impairments and plus or minus observable changes in prices. Investment in Xingshuizhixing The Company signed an investment agreement with Beijing Zhitong Zhenye Technology Co., Ltd. and Li Jiyou to invest RMB8,000,000, approximately $1,148,666, to Xingshuizhixing, which is accounting for 4% of its equity interest. Xinshuizhixing mainly operates online tax management system. The Company has no control, joint control or significant influence on the invested units, and therefore accounted for the investment of Xingshuizhixing at cost minus impairments and plus or minus observable changes in prices. Investment in Wangxin On April 11, 2021, Zibo Shidong signed an equity transfer agreement with Wangxin, which mainly provides health consulting service, to acquire its 2.15% equity interest in the consideration of RMB6,600,000, approximately $947,650. The company has no control, joint control or significant influence on the invested units, and therefore accounted for the investment of Wangxin at cost minus impairments and plus or minus observable changes in prices. The investment fund would be refunded and reclassified as other receivable as December 31, 2022. Investment in Zhongfei In November 2020, the Company acquired 3% of shareholding interest of Zhongfei through nonmonetary transactions, with which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Zhongfei of RMB3,000,000, approximately $430,750. In 2021, The Company provided it with a customized service worth of RMB3,000,000. The service has been completed and Zhongfei has decided to transfer 3% of the equity according to its fair value to the Company. The registration change was completed as of December 31, 2021. The Company does not have significant influence or control over Zhongfei, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Zhongfei at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. In 2022, the Company noticed that Zhongfei had encountered going-concern issue and determined that the impairment on investment was other-than-temporary. Full impairment of $ $446,025 was provided for investment of Zhongfei Investment in Yinzhirun In December 2016, the Company acquired 0.45% of shareholding of Yinzhirun with cash consideration of RMB 2,000,000, approximately $287,167. The Company does not have significant influence or control over Yinzhirun, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Yinzhirun at cost minus impairments and plus or minus observable changes in prices. Investment in Cheyi In November 2020, the Company acquired 0.5% of shareholding interest of Cheyi through nonmonetary transactions, with which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Cheyi of RMB1,587,719, approximately $227,970. In 2021, the Company provided it with a membership service worth of RMB1,500,000. This service has been completed. Cheyi has a poor capital turnover, it has decided to transfer 0.5% of the equity according to its fair value to the Company and registration change was completed as of December 31, 2021. The Company accounts for these non-monetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Cheyi, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Cheyi at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. The Company noticed that Industry and Commerce Administration of Nanchang Xihu Branch was not able to perform on-site inspection on Cheyi’s subsidiary Nanchang Qingchong Technology Co., Ltd. (“Qingchong”) in August 2022; Another Cheyi’s subsidiary, Jiangxi Cheyi Tongcheng Vehicle Networking Technology Co., Ltd. (“Cheyi Tongcheng”) had a legal dispute with China Construction Bank Nanchang Branch (“CCB”) on March 9, 2023. The Company noticed the above factors that raise significant concerns about the investee’s ability to continue as a going concern. Full impairment of $236,053 was provided for investment of Cheyi for the year ended December 31, 2022. Investment in Zhongfuze In September 2019, the Company acquired 11.11% of partnership share of Zhongfuze with cash consideration of RMB500,000, approximately $71,792. The Company has fully paid RMB500,000 as of December 31, 2020. The Company does not have significant influence or control over Zhongfuze, and the partnership share investment does not have readily determinable market value, and therefore accounted for the investment of Zhongfuze at cost minus impairments and plus or minus observable changes in prices. Investment in Outu In December 2019, the Company acquired 15% of shareholding interest of Outu with cash consideration of RMB3,000,000, approximately $430,750. The Company has paid RMB 500,000, approximately $71,792, as of December 31, 2022. The Company does not have significant influence or control over Outu, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Outu at cost minus impairments and plus or minus observable changes in prices. In 2022, the Company noticed that Qutu had encountered going-concern issue and determined that the impairment on investment was other-than-temporary. Full impairment of $74,337 was provided for investment of Outu for the year ended December 31, 2022. Investment in Qianshier In December 2020, the Company acquired 5% of shareholding interest of Qiansier through nonmonetary transactions with, which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Qianshier of RMB 500,000, approximately $71,792. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Qianshier, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Qianshier at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. In 2022, the Company noticed Qianshier had been applied as dishonest entity subject to enforcement in associated with a rental dispute, which raised significant concerns about the investee’s ability to continue as a going concern. Full impairment of $74,337 was provided for investment of Qianshier for the year ended December 31, 2022. Investment in Taizhoujia In June 2020, the Company acquired 5% of shareholding interest of Taizhoujia through nonmonetary transactions with Taizhoujia, which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Taizhoujia of RMB500,000, approximately $71,792. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Taizhoujia, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Taizhoujia at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. In 2022, the Company noticed Taizhoujia was involved in legal proceedings as respondent to its debt guarantor, which raised significant concerns about the investee’s ability to continue as a going concern. Full impairment of $74,337 was provided for investment of Taizhoujia for the year ended December 31, 2022. Investment in Yueteng In June 2020, the Company acquired 5% of shareholding interest of Yueteng through nonmonetary transactions with Yueteng, which are entered into at the Company’s discretion to receive equity interest in exchange of collection of account receivables due from Yueteng of RMB500,000, approximately $71,792. The Company accounts for these nonmonetary exchanges based on the fair values of the assets involved. The Company does not have significant influence or control over Yueteng, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Yueteng at cost minus impairments and plus or minus observable changes in prices. The cost of equity interest acquired in exchange is initially measured at the fair value of the account receivables the Company surrendered to obtain them. In 2022, the Company determined that the investment was impaired and the impairment was other-than-temporary. Full impairment of $74,337 was provided for investment of Taizhoujia for the year ended December 31, 2022. Investment in Funeng In August 2019, the Company subscribed capital with cash consideration of RMB 570,000 and acquired 19% of shareholding interest of Funeng. The Company has paid RMB 270,000 as of December 31, 2020. The Company does not have significant influence or control over Funeng, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Funeng at cost minus impairments and plus or minus observable changes in prices. Investment in Car Service In November 2017, the Company acquired 1.5 % of shareholding interest of Car Service with cash consideration of RMB90,000. In May 2019, the shareholding interest the Company held was diluted to 0.98% after Car Service received capital from a new shareholder. The Company does not have significant influence or control over Car Service, and the equity investment does not have readily determinable market value, and therefore accounted for the investment of Car Service at cost minus impairments and plus or minus observable changes in prices. In 2021, the Company noticed that with the adverse impact of COVID-19, Car Service failed to publish the annual report of 2020 in accordance with the time limit to the Industry and Commerce Administration of Dongguan Nancheng Branch, which was factors that raise significant concerns about the investee’s ability to continue as a going concern. Full impairment of $27,900 was provided for investment of Car Service for the year ended December 31, 2021. |
Asset Acquisition
Asset Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Asset Acquisition [Abstract] | |
ASSET ACQUISITION | NOTE 12 – ASSET ACQUISITION In July 2022, Sunrise Guizhou entered into purchase agreements with original shareholders of Sunrise Tech (formerly known as Anlong Hengrui Graphite Material Co., Ltd.) to acquire 100% of Sunrise Tech’s assets and equity ownership for a gross consideration of RMB 40,000,000 (approximately $5,743,331), among of which RMB10,000,000 (approximately $1,486,746) was paid in July 2022. In July 2022, the Group completed the acquisition. Sunrise Tech held three land use rights and two buildings. The Company evaluated the acquisition of the purchased assets under ASC 805-Business Combination (ASC 805), and concluded that as substantially all of the fair value of the gross assets acquired is concentrated in an identifiable group of similar assets, the transaction did not meet the requirements to be accounted for as a business combination and therefore was accounted for as an asset acquisition. The purchase prices of the assets as of the acquisition date are as follows: Land use rights $ 3,654,545 Plant, property and equipment – buildings 1,853,556 Total assets acquired 5,508,101 Deferred tax liabilities (199,813 ) Net assets acquired $ 5,308,288 The Company recognized any excess consideration transferred over the fair value of the net assets acquired on a relative fair value basis to the identifiable net assets. The Company determined the estimated fair values using Level 3 inputs after review and consideration of relevant quoted market prices of comparable companies and relevant information. The unpaid consideration RMB30,000,000 (approximately $4,307,499) will be paid in installments from 2023 to 2026. These consideration payables were interest free, and the present value was discounted using the incremental borrowing rate. The current and non-current portion of the consideration payable was $582,381 and $3,358,906, respectively, as of December 31, 2022. For the year ended December 31, 2022, the Company recorded interest expense of $71,272 relating to the amortization of the discount. The consideration payable is guaranteed by Mr. Haiping Hu, CEO and Chairman of the Board of Director. |
Deferred Government Subsidy
Deferred Government Subsidy | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Government Subsidy [Abstract] | |
DEFERRED GOVERNMENT SUBSIDY | NOTE 13 – DEFERRED GOVERNMENT SUBSIDY GMB BJ planned to relocate the Company address from Beijing to Zibo city, and it applied for subsidy of RMB 21,926,900 to compensate for the future incremental costs arising from the relocation, which was approved by the Finance Bureau of Zibo. As of December 31, 2022, the Company received government subsidy of RMB20,000,000, approximately $2,871,665, was recognized as deferred government subsidy. It would be deducted from the relocation expenses when incurred. |
Long Term Payable
Long Term Payable | 12 Months Ended |
Dec. 31, 2022 | |
Long Trem Payable [Abstract] | |
LONG TERM PAYABLE | NOTE 14 – LONG TERM PAYABLE Loans payable represented the financial liabilities due to financial lease companies maturing within one or over one year. The loans payable consisted of the following: As of December 31, 2022 2021 Long term payables: Far East International Financial Leasing Co., Ltd. (“Far East”) $ 2,594,415 $ - China Power Investment Ronghe Financial Leasing Co., Ltd. (“Ronghe”) 5,191,056 - Total $ 7,785,471 - Current portion 3,706,628 - Non-current portion $ 4,078,843 $ - On September 22, 2022, Sunrise Guizhou entered into a sales and leaseback contract with Far East. Pursuant to the contract, the Company sold its machines for RMB 20,000,000, approximately $2,871,665, and immediately leased it back from Far East for an eighteen-month period from September 22, 2022 to March 21, 2024. The Company had not transferred the control of the underlying assets to Far East and the Company evaluated that the sales transaction did not qualify as a sale in accordance with ASC 606. Therefore, the sales and leaseback contract was in essence a debt financing arrangement and did not apply sales and leaseback accounting in ASC 842. The proceeds, net of the financing costs, were financial liability with a yearly implied interest rate of 11.98%. This long-term payable was guaranteed by SDH and Mr. Haiping Hu. The Company was required to make monthly interest and principal payment. During the year ended December 31, 2022, The Company repaid RMB2,277,510, approximately $338,608. As of December 31, 2022, the Company had outstanding balance of $2,594,415, of which $1,984,684 and $609,731 were classified to current portion and non-current portion, respectively. The total outstanding balance of this long term facility was collateralized by certain plant and equipment at the original cost of RMB 38,223,638, approximately $5,488,275, as of December 31, 2022. On November 4, 2022, Sunrise Guizhou entered a sales and leaseback financing contract into a three-year financing with Ronghe to obtain an amount of RMB 40,000,000, approximately $5,743,331, for a term from November 10, 2022 to November 9, 2025. The sales and leaseback contract were a debt financing arrangement in essence, similar as the contract with Far East, with a yearly interest rate of one-year loan prime rate plus 1.55%. This long-term payable is guaranteed by Mr. Haiping Hu and Zhuhai Zibo. The Company is required to make quarterly interest and principal payment. During the year ended December 31, 2022, The Company repaid RMB3,693,843, approximately $549,181. As of December 31, 2022, the Company had outstanding balance of $5,191,056, of which $1,721,944 and $3,469,112 were classified to current portion and non-current portion, respectively. The total outstanding balance of this long term facility was collateralized by certain plant and equipment at the original cost of RMB 47,917,699, approximately $6,880,180, as of December 31, 2022. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 15 – TAXES a. VAT The Company is subject to VAT and related surcharges in China for providing member services and other in-depth services. The applicable VAT rate is 6% for general taxpayers and 3% for small-scale taxpayer. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). VAT liability is recorded in the line item of accrued expenses and other current liabilities on the consolidated balance sheets. Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. All of the tax returns of the Company have been and remain subject to examination by the PRC tax authorities for five years from the date of filing. b. Income tax Cayman Islands Under the current tax laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, no Cayman Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders. Hong Kong In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. From year of assessment of 2019/2020 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. However, the Company’s HK subsidiary did not generate any assessable profits arising in or derived from Hong Kong for the fiscal years ended December 31, 2022, 2021 and 2020, and accordingly no provision for Hong Kong profits tax has been made in these periods. China The Company’s subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”) with the statutory income tax rate of 25% with the following exceptions. In accordance with the implementation rules of EIT Laws, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply for the HNTE certificate when the prior certificate expires. SDH obtained its HNTE certificate on October 25, 2017, and renewed in 2021. Therefore, SDH is eligible to enjoy a preferential tax rate of 15% from 2017 to 2023 to the extent it has taxable income under the EIT Law. For qualified small and thin-profit enterprises, the annual taxable income up to RMB 1 million (inclusive) is subject to an effective EIT rate of 2.5% from 1 January 2021 to 31 December 2022; where the annual taxable income exceeds RMB 1 million but does not exceed RMB 3 million (inclusive), the amount in excess of RMB 1 million is subject to an effective EIT rate of 5% from 1 January 2022 to 31 December 2024. GMB Consulting was eligible to enjoy a preferential tax rate of 5% from 2018 to 2021. Shidong Health was eligible to enjoy a preferential tax rate of 2.5% in 2022. The components of the income tax provision (benefit) are as follows: For the years ended 2022 2021 2020 Current China $ 1,560 $ - $ 3,367,763 Deferred China 807,410 (236,581 ) (312,780 ) Total $ 808,970 $ (236,581 ) $ 3,054,983 (Loss) profit before income taxes was attributable to the following geographic locations for the years ended December 31: For the years ended December 31, 2022 2021 2020 PRC $ (16,323,667 ) $ (6,034,466 ) $ 15,150,941 Others (5,991,765 ) (2,916,447 ) (138,671 ) (Loss) profit before income taxes $ (22,315,432 ) $ (8,950,913 ) $ 15,012,270 Reconciliation between the provision (benefit) for income taxes computed by applying the PRC EIT rate of 25% to (loss) income before income taxes and the actual provision of income taxes is as follows: For the years ended December 31, 2022 2021 2020 (Loss) profit before income taxes $ (22,315,432 ) $ (8,950,913 ) 15,012,270 PRC EIT rate 25 % 25 % 25 % Income taxes computed at statutory EIT rate $ (5,578,858 ) $ (2,237,728 ) 3,753,068 Reconciling items: Effect of tax holiday and preferential tax rate 1,274,465 169,657 (581,434 ) Effect of tax rates in foreign jurisdictions 1,497,723 728,965 (46,330 ) Effect of non-deductible expense 13,917 4,403 5,202 Effect of non-deductible share-based compensation 682,492 - - Super deduction of qualified R&D expenditures - (107,975 ) (75,523 ) Changes in valuation allowance 2,919,231 1,206,097 - Income tax expense (benefit) $ 808,970 $ (236,581 ) 3,054,983 Effective tax rate (3.63 )% 2.64 % 20.35 % Deferred tax assets and liabilities According to PRC tax regulations, net operating losses can be carried forward to offset future operating income for five years. Significant components of deferred tax assets and liabilities were as follows: As of December 31, 2022 2021 Deferred tax assets Net operating loss carry forwards $ 1,934,559 $ 978,216 Provision for doubtful debts 1,439,947 1,092,140 Impairment on inventory 398,578 - Impairment of long-lived assets 163,420 - Deferred tax assets, gross 3,936,504 2,070,356 Less: valuation allowance (3,936,504 ) (1,218,319 ) Deferred tax assets, net $ - $ 852,037 Deferred tax liabilities Assets acquired in the asset acquisition $ 199,583 - The Company has accumulated operating loss of approximately $10,130,515 and $4,745,479 as of December 31, 2022 and 2021 for income tax purposes available for offsetting against future taxable income. The accumulated operating loss were from several PRC subsidiaries of the Company. The graphite anode business was in its start-up phase for the year ended December 31, 2022. In the meantime, peer-to-peer knowledge sharing and enterprise business continued to shrink in 2022. Considering the factors in graphite anode business and peer-to-peer knowledge sharing and enterprise business, management believed that there was substantial doubt on realization of the benefits from these losses as they were not able to estimate if the business would start to make profits in the near future. In making such determination, the Company considered factors including (i) future reversals of existing taxable temporary differences, (ii) future taxable income exclusive of reversing temporary differences and carry forwards, and (iii) tax planning strategies. The following is a schedule of expiration of carry forward operating loss as of December 31, 2022: For the years ending December 31, 2023 $ 5,360 2024 522,780 2025 166,113 2026 12,894 2027 9,423,368 Total $ 10,130,515 The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the fiscal years ended December 31, 2022 and 2021, the Company had no unrecognized tax benefits. For the Company’s operating subsidiaries, the tax years ended December 31, 2018, through December 31, 2022 remain open for statutory examination by PRC tax authorities. |
Related Party Balance and Trans
Related Party Balance and Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCE AND TRANSACTIONS | NOTE 16 – RELATED PARTY BALANCE AND TRANSACTIONS The following is a list of related parties which the Company has transactions with: (a) Ningbo Zhuhai Investment Co., Ltd. (“Zhuhai Investment”), a company controlled by Mr. Haiping Hu (b) Bally, Corp. (“Bally”), a company controlled by Mr. Haiping Hu (c) Mr. Xuanming Wang, General Manager and legal representative of GMB (Hangzhou) (d) Mr. Haiwei Zuo, Vice Chairman of the Board, 7.49% shareholder of GMB (Beijing) (e) Shanghai Hui Yang Investment Co., 9.6451% shareholder of Sunrise Guizhou and controlled by immediate family members of Mr. Haiping Hu (f) Shidong (Suzhou) Investment Co., Ltd., a company of which Mr. Haiping Hu is the CEO (g) Mr. Shousheng Guo, Director, 3.00% shareholder of GMB (Beijing) (h) Mr. Wenwu Zhang, Director of Sunrise Guizhou (i) Mr. Chenming Qi, General Manager, Director and 3.00% shareholder of GIOP BJ; Director of GMB (Hangzhou) (j) Ms. Jing Ji, CEO of and 46% shareholder of GMB Technology (k) Haicheng Shenhe, 9.6451% shareholder of Sunrise Guizhou (l) Guizhou Yilong New Area Industrial Development and Investment Co., Ltd., 3.0864% shareholder of Sunrise Guizhou a. Due from related parties As of December 31, 2022 and 2021, the balances of amount due from related parties were as follows: As of December 31, 2022 2021 Due from related parties Bally 5,168 5,168 Zhuhai Investment - 25,534 Mr. Xuanming Wang 20,102 26,664 Mr. Haiwei Zuo - 7,912 Mr. Wenwu Zhang (1) 337,420 - Shidong (Suzhou) Investment Co., Ltd. 37,332 - Total $ 400,022 $ 65,278 (1) The balance as of December 31, 2022 represented the prepaid acquisition consideration to purchase Mr. Wenwu Zhang’s equity in Haicheng Shenhe. See Note 7. b. Due to related parties As of December 31, 2022 and 2021, the balances of amounts due to related parties were as follows: As of December 31, 2022 2021 Due to related parties Mr. Haiping Hu 2,872 - Mr. Chenming Qi 9,189 - Ms. Jing Ji 19,923 - Shanghai HuiYang Investment Co. (1) 738,128 - Haicheng Shenhe 50,395 - Zhuhai Investment 64,643 - Total $ 885,150 $ - (1) The balance as of December 31, 2022 represented the loans from the related party, with the annual interest rate of 4.35% and was initially due on August 13, 2022 and extended to December 31, 2023. c. Deferred revenue -related parties As of December 31, 2022 and 2021, the balances of deferred revenue of related parties were as follows: As of December 31, 2022 2021 Deferred revenue of related parties Shanghai Hui Yang Investment Co. (1) $ 347,471 $ - Total $ 347,471 $ - (1) The balance as of December 31, 2022 represented the advance from the related party for tailored services. d. Related party transactions Related party purchase The Company rented office spaces from Zhuhai Investment. For the years ended December 31, 2022, 2021 and 2020, total rental fee to Zhuhai Investment were $118,475, $103,411 and $96,695, respectively. The Company purchased graphite material processing service of $450,591 and purchased raw material of $580,452 from Haicheng Shenhe for the year ended December 31, 2022. The Company purchased professional services from Yihe Beijing. For the year ended December 31, 2020, service costs paid to Beijing Yihe were $27,175. Related party sales The Company sold titanium of $205 to Mr. Shousheng Guo for the year ended December 31, 2022. The Company sold medical wine of $666 to Zhuhai Investment for the year ended December 31, 2021. e. Related party guarantee On August 4, 2022, Surnise Guizhou entered a line of credit financing contract with Bank of Guizhou for revolving credit of RMB 20,000,000, approximately $ 2,871,665, for a term from August 4, 2022 to August 3, 2023. The line of credit was in various means including bank loans, commercial note and letter of credit. As of December 31, 2022, the Company has utilized RMB 13,500,000, approximately $1,938,374, line of credit by issuing commercial notes to its vendors for amount of RMB 27,000,000, approximately $3,876,748. Pursuant to the line of credit contract, the Company was obliged to deposit fifty percent of the notes payable amount issued as restricted cash in the designated bank accounts in Bank of Guizhou. Pursuant to the contract, Mr. Haiping Hu and Guizhou Yilong New Area Industrial Development and Investment Co., Ltd., the non-controlling shareholder of Sunrise Guzhou, were the guarantor of the line of credit. On September 22, 2022, Sunrise Guizhou entered a financing contract into an eighteen-month loan with Far East to obtain a loan of RMB 20,000,000, approximately $2,871,665, for a term from September 22, 2022 to March 21. On November 4, 2022, Sunrise Guizhou entered a sales and leaseback financing contract into a three-year financing with Ronghe to obtain an amount of RMB 40,000,000, approximately $5,743,331, for a term from November 10, 2022 to November 9, 2025. Pursuant to the financing contracts, Mr. Haiping Hu, CEO and Chairman of the Board of Director was the guarantor for the debt financing. See Note 14. In July 2022, Sunrise Guizhou entered into purchase agreements with original shareholders of Sunrise to acquire 100% of Sunrise Tech’s assets and equity ownership for a gross consideration of RMB 40,000,000 (approximately $5,743,331), among of which RMB10,000,000 (approximately $1,486,746) was paid in July 2022. The unpaid consideration RMB30,000,000 (approximately $4,307,499) will be paid in installments from 2023 to 2026. The consideration payable is guaranteed by Mr. Haiping Hu. See Note 12. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders’ Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 17 – SHAREHOLDERS’ EQUITY Ordinary shares EPOW was established under the laws of the Cayman Islands on February 22, 2019. The authorized number of Ordinary Shares was 500,000,000 with par value of $0.0001 per share. On February 22, 2019, EPOW issued 999,999 new shares to the controlling shareholders and one share to Osiris International Cayman Limited at par $0.0001 per share. On August 8, 2019, EPOW issued an aggregate of 27,000,000 ordinary shares at a price of US$0.0001 per share with total consideration of US$2,800, pro-rata to the shareholders of EPOW as of such date. On April 2, 2020, the shareholders of the Company unanimously authorize a one-for-0.88 reverse stock split of the Company’s outstanding and issued ordinary shares (the “First Reverse Stock Split”), which became effective on April 3, 2020. Any fractional ordinary share that would have otherwise resulted from the First Reverse Stock Split were rounded up to the nearest full share. The First Reverse Stock Split did not change the par value of the ordinary shares and had no effect on the number of authorized ordinary shares of the Company. As a result of the First Reverse Stock Split, 28,000,000 ordinary shares that were issued and outstanding at April 3, 2020 was reduced to 24,640,000 ordinary shares (taking into account the rounding of fractional shares). On April 24, 2020, the shareholders of the Company unanimously authorize another one-for-0.68 reverse stock split of the Company’s issued and outstanding ordinary shares (the “Second Reverse Stock Split”), which became effective on April 24, 2020. Any fractional ordinary share that would have otherwise resulted from the Second Reverse Stock Split were rounded up to the nearest full share. The Second Reverse Stock Split did not change the par value of the ordinary shares and had no effect on the number of authorized ordinary shares of the Company. As a result of the Second Reverse Stock Split, 24,640,000 ordinary shares that were issued and outstanding at April 24, 2020 was reduced to 16,800,000 ordinary shares (taking into account the rounding of fractional shares). On February 11, 2021, the Company closed its initial public offering (“IPO”) on Nasdaq. The Company offered 6,720,000 ordinary shares, par value $0.0001 per share, at a price of $4.00 per share and received total gross proceed of $26,880,000. Besides, the Company offered 1,008,000 ordinary shares, par value $0.0001 per share, as part of the representative of the underwriters’ over-allotment option, at a price of $4.00 per share and received total gross proceed of $4,032,000. Total net proceeding amounted to $27,504,639 after deducting underwriting discounts and other related expenses. Share-based compensation The Company recorded share-based compensation expenses of $2,729,969, $ nil nil For the years ended 2022 2021 2020 Cost of revenues $ 8,188 $ - $ - Selling expenses 39,301 - - General and administrative expenses 2,674,292 - - Research and development expenses 8,188 - - Total $ 2,729,969 $ - $ - The Company adopted the 2022 Stock Incentive Plan for the grant of restricted share units to employees, directors and non-employees to provide incentive for their services. The maximum number of ordinary shares that may be delivered pursuant to compensatory awards granted to the employees, directors and non-employees under the 2022 Stock Incentive Plan should not exceed 3,679,200 ordinary shares of par value $0.0001 per share. Restricted share units On August 26, 2022, the Company granted 3,334,200 restricted share units to its directors and employees. 25% of the restricted share units was immediately vested on August 26, 2022. 75% of the restricted share units will be vested in three years with equal yearly installments after August 26, 2022. The grant date fair value of the restricted share units was $2.00 per share, which was the closing price of the Company’s ordinary share on NASDAQ on August 26, 2022. This grant resulted in a total share-based compensation of $6,668,400 to be recognized ratably over the requisite service period of 3 years. A summary of the restricted shares units activities is as follows: Number of Weighted Aggregate Restricted share units outstanding at January 1, 2022 - - - Granted 3,334,200 2.00 - Vested (833,550 ) 2.00 - Restricted share units outstanding at December 31, 2022 2,500,650 2.00 6,826,775 The weighted average grant date fair value of restricted share units granted during the years ended December 31, 2022, 2021 and 2020 were $2.00, $ nil nil nil nil The Group recognized compensation expense over the requisite service period for each separately vesting portion of the award as if the award is in substance, multiple awards. The Company recorded share-based compensation expenses relating to restricted share units of $2,729,969 for the year ended December 31, 2022. As of December 31, 2022, total unrecognized compensation expenses relating to nonvested shares were $3,938,431, which is expected to be recognized over a weighted average period of 1.75 years. Non-controlling interest Non-controlling interest consists of the following: As of December 31, 2022 2021 GMB (Beijing) $ 4,313 $ 5,365 GMB Culture 2,997 25,613 Jiagui Haifeng (710 ) (13 ) Shidong Trading - (35 ) GMB Consulting 13,270 14,477 Shidong Cloud 42,389 - Sunrise Guxian (39,323 ) - GMB Technology (186,539 ) (185,377 ) Sunrise Guizhou 42,402,995 3,262,220 Total $ 42,239,392 $ 3,122,250 Jiagui Haifeng was established by Zibo Shidong and Mr. Lifeng Wang in November, 2021. 51% shares of Jiagui Haifeng was held by Zibo Shidong and 49% of shares was held by Mr. Lifeng Wang. Sunrise Guizhou was established by Zhuhai (Zibo) Investment and five other companies in November, 2021. Shidong Cloud was established by GIOP BJ and Beijing Yunqianyi Information Technology Co., Ltd. (“Yunqianyi”) in December 2022. 75% shares of Shidong Cloud was held by GIOP BJ and 25% of shares was held by Yunqianyi. Sunrise Guxian was established by Sunrise Guizhou and seven other companies in April 2022. For the year ended December 31, 2022, the Company made capital contributions of $52,863 to Shidong Cloud; and the non-controlling shareholders made capital contributions of $78,851 to Shidong Cloud. For the years ended December 31, 2022 and 2021, Zhuhai (Zibo) made capital contributions of $10,759,335 and $9,099,878 to Sunrise Guizhou; and the non-controlling shareholders made capital contributions of $41,826,941 and $3,332,622 to Sunrise Guizhou. The actual capital contributions made by the Company and the non-controlling shareholders for the fiscal year ended 2022 and 2021 had no effect on the Company’s equity percentage in its eight subsidiaries. Statutory reserves In accordance with the Regulations on Enterprises of PRC, the Company’s subsidiaries, GIOP BJ, VIE and VIE’s subsidiaries in the PRC are required to provide for statutory reserves, which are appropriated from net profit as reported in the Company’s PRC statutory accounts. They are required to allocate 10% of their after-tax profits to fund statutory reserves until such reserves have reached 50% of their respective registered capital. These reserve funds, however, may not be distributed as cash dividends. As of December 31, 2022 and 2021, the statutory reserves of the Company’s subsidiaries, GIOP BJ, VIE and VIE’s subsidiaries in the PRC have not reached 50% of their respective registered capital. As of December 31, 2022 and 2021, the balances of the statutory reserves were $2,477,940 and $2,473,801, respectively. Restricted net assets The Company’s PRC subsidiaries and the VIE and VIE’s subsidiaries are restricted in their ability to transfer a portion of their net assets, equivalent to their statutory reserves and their share capital to the Company in the form of loans, advances, or cash dividends. The payment of dividends by entities organized in China is subject to limitations, procedures, and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. As of December 31, 2022, the statutory reserves and the share capital amounted to $2,477,940 and $22,710,147, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 – COMMITMENTS AND CONTINGENCIES Contingencies The Company may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects, 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 outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of December 31, 2022, the Company was not aware of any litigations or lawsuits against it. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 19 – SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the management approach to determine reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the CEO, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. Based on the management’s assessment, the Company determined that it has two operating segments and therefore two reportable segments as defined by ASC 280. The Company’s assets are substantially all located in the PRC and substantially all of the Company’s revenue and expense are derived in the PRC. Therefore, no geographical segments are presented. The Company’s CODM evaluates performance based on each reporting segment’s revenue, costs of revenues and gross profit (loss). Revenues, cost of revenues and gross (loss) profits by segment are presented below. Separate financial information of operating income by segment is not available. For the years ended REVENUES, NET 2022 2021 2020 Graphite anode business $ 37,580,677 $ - $ - Peer-to-peer knowledge sharing and enterprise business 544,991 7,409,272 23,181,084 Member services 106,724 498,330 872,629 Enterprise services -Comprehensive tailored services 153,658 1,433,847 13,345,880 -Sponsorship advertising services - 1,734,390 6,598,527 -Consulting services 9,645 1,583,583 416,634 Online services 2,100 40,391 361,933 Other revenues 272,864 2,118,731 1,585,481 Revenues, net $ 38,125,668 $ 7,409,272 $ 23,181,084 For the years ended COST OF REVENUES 2022 2021 2020 Graphite anode business $ 35,586,544 $ - $ - Peer-to-peer knowledge sharing and enterprise business 3,889,502 3,886,654 2,980,216 Member services 591,000 99,013 174,660 Enterprise services -Comprehensive tailored services 294,759 157,563 340,783 -Sponsorship advertising services - 34,041 255,634 -Consulting services 218,719 733,266 239,845 Online services 66,403 798,010 1,076,503 Other revenues 2,718,621 2,064,761 892,791 Cost of revenues $ 39,476,046 $ 3,886,654 $ 2,980,216 For the years ended GROSS (LOSS) PROFIT 2022 2021 2020 Graphite anode business $ 1,994,133 $ - $ - Peer-to-peer knowledge sharing and enterprise business (3,344,511 ) 3,522,618 20,200,868 Member services (484,276 ) 399,317 697,969 Enterprise services -Comprehensive tailored services (141,101 ) 1,276,284 13,005,097 -Sponsorship advertising services - 1,700,349 6,342,893 -Consulting services (209,074 ) 850,317 176,789 Online services (64,303 ) (757,619 ) (714,570 ) Other revenues (2,445,757 ) 53,970 692,690 Gross (loss) profit $ (1,350,378 ) $ 3,522,618 $ 20,200,868 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 – SUBSEQUENT EVENTS On January 18, 2023, Sunrise Guizhou entered a credit facility agreement with Post Savings Bank of China (“Post Bank”) to obtain revolving fund up to RMB 30,000,000, approximately $4,307,498, for a term from January 19, 2023 to January 18, 2031. This credit loan was guaranteed by Mr. Haiping Hu, CEO and Chairman of the Board of Director, and Zhuhai Zibo. The Company also needed to mortgage its plants, property and equipment to Post Bank. On February 7, 2023, Sunrise Guizhou entered a two-year debt financing arrangement with Zhongguancun Science and Technology Leasing Co., Ltd. to obtain a loan of RMB 20,000,000, approximately $2,871,665, for a term from February 7, 2023 to February 7, 2025 with five-year loan prime rate plus 2.6%. This debt financing arrangement was guaranteed by Mr. Haiping Hu, CEO and Chairman of the Board of Director, and Zhuhai Zibo. The Company also pledged its account receivable amounted to RMB 20,000,000, approximately $2,871,665 of its customer. The Company is required to make quarterly interest and principal payments. The Company evaluated subsequent events and transactions that occurred after the balance sheet date through May 16, 2023, the date that the audited consolidated financial statements were available to be issued. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 21 – CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X require the condensed financial information of the parent company to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiaries and VIE and its subsidiaries exceeded 25% of the consolidated net assets of the Company, therefore, the condensed financial information for the parent company are included herein. For purposes of the above test, restricted net assets of consolidated subsidiaries and VIE and its subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries and VIE and its subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries and VIE and its subsidiaries. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries and VIE” and the respective loss or profit as “Equity in (loss) earnings of subsidiaries and VIE” on the condensed statements of operations and comprehensive (loss) income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted. The Company did not pay any dividend for the periods presented. As of December 31, 2022 and 2021, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. PARENT COMPNAY BALANCE SHEETS As of December 31, 2022 2021 ASSETS CURRENT ASSETS Cash and cash equivalents $ 285,916 $ 784,176 Restricted cash 700,094 - Due from related parties 5,168 5,168 Short-term investment 3,336,256 5,961,605 Advance to suppliers 7,694 13,727 Prepaid expenses and other current assets 2,994,975 1,011,542 TOTAL CURRENT ASSETS 7,330,103 7,776,218 NON-CURRENT ASSETS Restricted cash - 700,060 Long term prepayments and other non-current assets - 2,000,000 Investment in subsidiaries and VIE 24,714,096 41,438,198 TOTAL NON-CURRENT ASSETS 24,714,096 44,138,258 TOTAL ASSETS 32,044,199 51,914,476 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accrued expenses and other current liabilities 15,550 211,430 TOTAL CURRENT LIABILITIES 15,550 211,430 TOTAL LIABILITES 15,550 211,430 EQUITY Ordinary shares (500,000,000 shares authorized; $0.0001 par value, 24,528,000 shares issued and outstanding as of December 31, 2021; 25,361,550 shares issued and outstanding as of December 31, 2022) 2,536 2,453 Additional paid-in capital 34,696,702 31,966,816 Statutory reserves 2,477,940 2,473,801 (Accumulated deficits) Retained earnings (5,148,529 ) 17,259,976 TOTAL EQUITY 32,028,649 51,703,046 TOTAL LIABILITIES AND EQUITY $ 32,044,199 $ 51,914,476 PARENT COMPNAY STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the years ended 2022 2021 2020 REVENUES, NET $ - $ - $ 73,744 COSTS OF REVENUES 8,188 - - GROSS (LOSS) PROFIT (8,188 ) - 73,744 OPERATING EXPENSES 3,578,664 1,010,536 50,000 (LOSS) PROFIT FROM OPERATIONS (3,586,852 ) (1,010,536 ) 23,744 OTHER (EXPENSES) INCOME (2,403,412 ) (1,904,135 ) 4,459 (LOSS) PROFIT BEFORE EQUITY IN (LOSS) EARNINGS OF SUBSIDIARIES AND VIE (5,990,264 ) (2,914,671 ) 28,203 Equity in (loss) earnings of subsidiaries and VIE (16,414,102 ) (5,488,589 ) 12,059,324 NET (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS (22,404,366 ) (8,403,260 ) 12,087,527 Foreign currency translation adjustment - - - COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS $ (22,404,366 ) $ (8,403,260 ) $ 12,087,527 PARENT COMPNAY STATEMENTS OF CASH FLOWS For the years ended December 31, 2022 2021 2020 Net cash used in operating activities (808,226 ) (1,015,145 ) (52,994 ) Net cash used in investing activities (25,825,000 ) - Net cash provided by financing activities 310,000 28,249,093 128,282 (Decrease) increase in cash and cash equivalents (498,226 ) 1,408,948 75,288 Cash, cash equivalents and restricted cash, beginning of year 1,484,236 75,288 - Cash, cash equivalents and restricted cash, end of year $ 986,010 $ 1,484,236 $ 75,288 Cash, cash equivalents and restricted cash, end of year 986,010 1,484,236 75,288 Less: restricted cash 700,094 700,060 - Cash and cash equivalents, end of year 285,916 784,176 75,288 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The 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. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries for which the Company is the ultimate primary beneficiary for accounting purpose only under U.S. GAAP. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. The Company owns 39.35% equity interest in Sunrise Guizhou, but has the power to cast a majority of votes at the meeting of the board of directors and governs the financial and operating policies of Sunrise Guizhou under an agreement among the shareholders. All transactions and balances between the Company, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated upon consolidation. |
Non-controlling interests | Non-controlling interests Non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. As of December 31, 2022, for the Company’s consolidated subsidiaries, the VIE and VIE’ s subsidiaries, non-controlling interests represent: a) a non-controlling shareholder’s 49% ownership interest in GMB (Beijing), GMB Consulting, Nanyu Culture and Jiagui Haifeng; b) a non-controlling shareholder’s 60.65% ownership interest in Sunrise Guizhou; c) a non-controlling shareholder’s 49% ownership interest in GMB Culture, which has a subsidiary called GMB Technology; and d) a non-controlling shareholder’s 25% ownership interest in Shidong Cloud, and 40% ownership interest in Shidong Trading. As of December 31, 2021, for the Company’s consolidated subsidiaries, VIE and VIE’ s subsidiaries, non-controlling interests represent: a) a non-controlling shareholder’s 49% ownership interest in Sunrise Guizhou, GMB (Beijing), GMB Consulting, Nanyu Culture and Jiagui Haifeng; b) a non-controlling shareholder’s 49% ownership interest in GMB Culture, which has a subsidiary called GMB Technology; c) a non-controlling shareholder’s 25% ownership interest in Shidong Cloud, and 40% ownership interest in Shidong Trading. Non-controlling interests are presented 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 Operations and Comprehensive (Loss) Income to distinguish the interests from that of the Company. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Significant estimates required to be made by management, include, but are not limited to, the assessment of the allowance for doubtful accounts, inventory valuation, depreciable lives of property and equipment, impairment of long-lived assets and realization of deferred tax assets. Actual results could differ from those estimates. |
Foreign currency translation | Foreign currency translation The Company’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Company’s consolidated financial statements are reported using the U.S. Dollars (“US$” or “$”). The results of operations and the consolidated statements of 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 translation rate, 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 (loss) income included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) 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 preparing the consolidated financial statements: December 31, December 31, December 31, Year-end spot rate US$1= RMB 6.9646 US$1= RMB 6.3757 US$1= RMB 6.5249 Average rate US$1= RMB 6.7261 US$1= RMB 6.4515 US$1= RMB 6.8976 |
Fair value measurements | Fair value measurements The Company follows the provisions of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, restricted cash, accounts receivable, notes receivable, due from related parties, advance to suppliers, prepaid expenses and other current assets, deferred revenue, income taxes payable, accounts payable, note payable, due to related parties, accrued expenses and other current liabilities approximate their fair value based on the short-term maturity of these instruments. The carrying amount of non-current long term payables and consideration payable approximates fair value as its interest rates are at the same level of current market yield for comparable loans. The Company’s non-financial assets, such as property and equipment would be measured at fair value only if they were determined to be impaired. As a practical expedient, the Company uses Net Asset Value (“NAV”) or its equivalent to measure the fair value of its certain fund investment. NAV is primarily determined based on information provided by external fund administrators. The Group’s investments valued at NAV as a practical expedient are private equity funds, which represent the short term investment on the balance sheet. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and demand deposits in accounts maintained with commercial banks, as well as highly liquid investments which are unrestricted as to withdrawal or use and are readily convertible to known amounts of cash. The interest incomes of highly liquid investments are reported in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company maintains the bank accounts in Mainland China and Hong Kong. Cash balances in bank accounts in Mainland China and Hong Kong are not insured by the Federal Deposit Insurance Corporation or other programs. |
Restricted cash | Restricted cash Restricted cash represent bank deposits with designated use, which cannot be withdrawn without certain approval or notice. Restricted cash classified as a long-term asset on the Company’s consolidated balance sheets consists of cash equivalents restricted as to withdrawal or use which matures in more than twelve months after the balance sheet date. Such restricted cash relates to an escrowed fund of listing companies. The escrowed fund shall be held by the Escrow Agent for the purpose of satisfying the initial $700,000 of the indemnification obligations of the Company, with respect to the Escrowed Funds, for a period of 24 months from the closing of the Offering the Company’s initial public offering in February 2021. |
Short-term investments | Short-term investments The Company evaluates whether an investment is other-than-temporarily impaired based on the specific facts and circumstances. Factors that are considered in determining whether an other-than-temporary decline in value has occurred include the market value of the security in relation to its cost basis, the financial condition of the investee, and the intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. |
Accounts and notes receivable | Accounts receivable, net Accounts receivables mainly represent amounts due from clients in the ordinary course of business and are recorded net of allowance for doubtful accounts. The Company mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and recorded based on management’s assessment of historical bad debts, creditworthiness and financial conditions of the clients, current economic trends and changes in client payment patterns. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted and the potential for recovery is considered remote. The valuation allowance provided was $8,047,527 and $5,744,387 as of December 31, 2022 and 2021, respectively. |
Inventories | Inventories, net The inventories as of December 31, 2022 consisted of raw materials, materials in transit, work in process and finished goods. Finished goods were mainly graphite anode materials, health service gift cards, learning course gift cards, Chinese tea, latex pillows and health care products. Costs include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized in the value of inventories. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products. The valuation allowance provided for the inventory was $2,711,158, $ nil nil Part of the Company’s finished goods, such as health service gift cards, learning course gift cards, Chinese tea, latex pillows and health care products, were obtained through fee exchange arrangements with its customers prior to 2022. These arrangements were entered into at the Company’s discretion to receive inventory in exchange of collection of account receivables and deferred revenue due from the customers. The Company accounted for these nonmonetary exchanges based on the fair values of the assets involved. The cost of inventories acquired in exchange was initially measured at the fair value of the accounts receivable the Company surrendered to obtain them. |
Lease | Lease At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange of a consideration. To assess whether a contract is or contains a lease, the Company assess whether the contract involves the use of an identified asset, whether it has the right to obtain substantially all the economic benefits from the use of the asset and whether it has the right to control the use of the asset. The right-of-use assets and related lease liabilities are recognized at the lease commencement date. The Company recognizes operating lease expenses on a straight-line basis over the lease term. Operating lease right-of-use of assets The right-of-use of asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and less any lease incentive received. Operating lease liabilities Lease liability is initially measured at the present value of the outstanding lease payments at the commencement date, discounted using the Company incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed lease payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee and any exercise price under a purchase option that the Company is reasonably certain to exercise. Lease liability is measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if there is any change in the Company assessment of option purchases, contract extensions or termination options. Short-term leases The Company has elected to not recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less. Lease payments associated with these leases are expensed as incurred. Sales and leaseback contracts The Company enters sale and leaseback transactions. The Company acts as the seller-lessee, transfers its assets to a third-party entity (the buyer-lessor) and then leases the transferred assets back from the buyer-lessor at a contract designated rental price. The Company evaluates if sales of the underlying assets in the sale and leaseback contract has occurred in accordance with ASC 606. When a sale and leaseback transaction does not qualify for sale accounting, the transaction is accounted for as a financing transaction by the seller-lessee and a lending transaction by the buyer-lessor. The seller-lessee shall not derecognize the transferred asset and shall account for any amounts received as a financial liability. |
Plant, property and equipment, net | Plant, property and equipment, net Plant, property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is provided using the straight-line method over their expected useful lives, as follows: Building 30 years Machines 10 years Electronic equipment 3 years Furniture, fixtures and equipment 3 years Vehicle 3 years Leasehold improvements The shorter of useful life and lease term 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 betterments 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 Operation and Comprehensive (Loss) Income in other income or expenses. |
Land use right, net | Land use right, net Land use rights are recorded at cost less accumulated amortization and amortized on a straight-line basis over the remaining term of the land certificates, from 40 years to 50 years. |
Intangible assets, net | Intangible assets, net The Company’s intangible assets represent intellectual property rights on manufacturing graphite anode materials from capital injection by a non-controlling shareholder of Sunrise Guizhou and the copyright of course videos purchased from a third party including but not limited to course videos which cover subjects such as entrepreneurship development, financial service, corporate governance, team management, marketing strategy and etc. Intangible assets are stated at cost less accumulated amortization and amortized on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets are determined to be 5 to 10 years in accordance with the period the Company estimates to generate economic benefits from such intellectual property rights and copyright. |
Long-term investments | Long-term investments Equity method investments in investees represent the Company’s investments in privately held companies, over which it has significant influence but does not own a majority equity interest or otherwise control. The Company applies the equity method to account for an equity investment, in common stock or in-substance common stock, according to ASC 323 “Investment — Equity Method and Joint Ventures”. An investment in in-substance common stock is an investment in an entity that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Company considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to an investment in that entity’s common stock. Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investee is recognized in the consolidated income statements and its share of post-acquisition movements in accumulated other comprehensive income is recognized in shareholders’ equity. When the Company’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. Investment loss for long-term investments of $14,072, $41,925 and $1,087 were recorded in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended December 31, 2022, 2021 and 2020, respectively. For other equity investments that do not have readily determinable fair values and over which the Company has neither significant influence nor control through investments in common stock or in-substance common stock, the Company accounts for these investments at cost minus any impairment, if necessary. The Company continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other than temporary. The primary factors the Company considers in its determination are the length of time that the fair value of the investment is below the Company’s carrying value; the financial condition, operating performance and the prospects of the equity investee. If the decline in fair value is deemed to be other than temporary, the carrying value of the equity investee is written down to fair value. Impairment charges for long-term investments were $979,426, $ nil nil |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Company measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss, which is the excess of carrying amount over the fair value of the assets, using the expected future discounted cash flows. Impairments charges for intangible assets were $2,650,020, $ nil nil |
Asset acquisition | Asset acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s consolidated financial statements. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. |
Share-based compensation | Share-based compensation Share-based compensation are measured based on the grant date fair value of the equity instrument. Share-based compensation expenses are recognized over the requisite service period based on the graded vesting attribution method with corresponding impact reflected in additional paid-in capital. When no future services are required to be performed by grantees in exchange for an award of equity instruments, the cost of the award is expensed on the grant date. The Group elects to recognize forfeitures when they occur. |
Government subsidies | Government subsidies The Company’s PRC based subsidiary received government subsidies from local government. Government subsidies are recognized when there is reasonable assurance that the attached conditions will be complied with. When the government subsidy relates to an expense item, it is net against the expense and recognized in the consolidated statements of income and comprehensive income over the period necessary to match the subsidy on a systematic basis to the related expenses. Where the subsidy relates to an asset acquisition, it is recognized as income in the Consolidated Statements of Operations and Comprehensive (Loss) Income in proportion to the useful life of the related assets. Government grants received for the years ended December 31, 2022, 2021 and 2020 were $3,048,035, $458,182 and $101,485, respectively. As of December 31, 2022 and 2021, the deferred government grants were $2,871,665 and $ nil |
Revenue recognition | Revenue recognition The Company recognizes revenue under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the 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 the company satisfies a performance obligation The Company mainly offers and generates revenue from five kinds of services to its clients in China, sales of graphite anode materials, member services, enterprise services, online services and other services. Enterprise services include comprehensive tailored services, sponsorship advertising services, and consulting services. Revenue recognition policies for each type of the Company’s services are discussed as follows: Sales of graphite anode materials The Company’s major business is to sell graphite anode materials to its customers. The Company’s major customers are manufacturers of industrial and consumer energy storage lithium-ion batteries, such as batteries for electric vehicles and electric ships, and smart consumer electronics. The Company examines the availability of the inventory, takes control of products in its warehouses, and then organizes the shipping and delivery of products to customers after the purchase orders are received from customers. The Company accounts for revenue from sales of graphite anode materials on a gross basis as the Company is responsible for fulfilling the promise to provide the desired products to customers, and is subject to inventory risk before the product ownership and risk are transferred and has the discretion in establishing prices. All of the Company’s contracts and purchase orders are fixed prices and have one single performance obligation as the promise is to transfer the products to customers, and there are no separately identifiable other promises in the contracts. The Company’s revenue from sales of graphite anode materials is recognized at a point in time when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. There is no separate rebate, discount, or volume incentive involved. Revenue is reported net of all value added taxes (“VAT”). Member services The Company offers three tiers of member services, Platinum, Diamond and Protégé, which differ in membership fees as well as the level of the services provided. Members pay a fixed fee for exchange of the right to participate in organized activities offered by the Company, such as study tours and forums, typically within one-year membership period. Any non-participating activities will expire and not be refunded beyond the agreed-upon period. Each member is entitled to choose from same activities offered by the Company for a total of seven times but different level of membership will receive different level of privileges at each activity, such as seating arrangement or private consultation opportunity etc. The activities for Platinum Members are also open to non-members, who pay a pre-set fee for participating in a single activity, while the Company does not offer Diamond and Protégé services to non-members separately. Each activity represents a separate performance obligation, which is typically 5 days or less. The Company uses an expected cost plus margin approach to estimate the standalone selling prices of each activity. As Members can benefit from each activity on their own in the same way and there is no material difference in the Company’s delivering costs, such as number of staffs involved and size of each activity. Therefore, membership fees are equally allocated to seven performance obligations when the Company determines transaction price of each performance obligation. The Company recognizes membership fees as revenue upon completion of each activity as the duration of each activity is short. Membership fees from non-participating activity will be recognized when the agreed-upon period has expired. Membership fees collected in advance are recorded as deferred revenue on the consolidated balance sheets. Enterprise services The Company charges its clients service fees for providing enterprise services, which mainly include comprehensive tailored services, sponsorship advertising services and consulting services. Comprehensive tailored services The comprehensive tailored services provide tailored packaged services to small and medium business, including conference and salon organization, booth exhibition services, on-site Mentors’ guidance, and other value-added services. The Company typically signs one-year framework agreements and a tailored services contract with the clients, which list the types of tailored services as ordered by the clients to fit their specific needs. Each tailored service is a separate performance obligation under ASC 606, as these performance obligations are distinct, the clients can benefit from each service on their own and the Company’s promises to deliver the services are separately identifiable from each other in the services contract. The performance of each tailored service is usually on a specific date designated by the clients. The Company establishes a uniform list for the unit price of each type of tailored services with reference to quoted market prices. If no quoted market price is available, the price will be estimated by using an expected cost plus a margin approach. The Company recognizes the price for each tailored service as revenue when the service has been provided on a specific date designated and the receipt of each tailored services is confirmed by the clients. If a client does not request certain items of the tailored services included in the services contract during the agreed-upon period, the Company will not refund the service fees and the revenue will be recognized upon expiration of service contracts. The tailored services fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Sponsorship advertising service The Company provides sponsorship advertising service for its clients at certain activities it held, i.e. study tours and forums. The sponsorship advertising services are mainly to display banners with the clients’ information and distribute clients’ brochures through the activities, so that the clients can enhance their corporate and product image. The fee the Company charges for sponsorship advertising service is depending on multiple specific factors, including number of event participants, location, public interest, etc. The Company considers all factors and determines pricing for each contract separately. The sponsorship advertising fees are recognized as revenue when services have been provided on a specific date designated and receipt of sponsorship advertising services are confirmed by clients. Sponsorship advertising fees collected before providing services are recorded as deferred revenue on the consolidated balance sheets. Consulting services The Company provides consulting services to small and medium-sized enterprises by helping them to develop strategies and solutions including: corporate reorganization, product promotion and marketing, industry supply chain integration, corporate governance, financing and capital structure, etc. The consulting services are tailored to meet each client’s specific needs and requirements. Consulting fees are based on the specifics of the services provided, for instance, time and efforts required, etc. The Company considers comprehensive factors and determines prices with reference to quoted market prices. If no quoted market price is available, price will be estimated by using an expected cost plus a margin approach. Consulting fees are recognized as revenue when services have been provided and receipt of consulting services is confirmed by clients as the duration of services is short, typically one month or less. Consulting fees collected before providing any service are presented as deferred revenue on the consolidated balance sheets. Online services The Company provides two types of online services to the Company’s APP Users, which are questions and answers (Q&A) session with chosen Mentors and online streaming of courses and programs. Top-up credits are paid by Users through the Company’s APP platform, using which Users can purchase the online services. Users can raise questions to chosen Mentors or Experts with a fixed fee per Q&A session preset by Mentors or Experts. The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. The Company granted Users the access to view various online courses and programs. Users can subscribe an annual VIP at a rate of RMB299. The VIP grants Users the access right to the Company’s VIP courses and programs over the subscription period. The Company recognizes the VIP annual subscription fees as revenue on a straight-line basis over VIP subscription period. Users can also purchase à la carte courses and programs at a rate from RMB 9.9 to 299 per course or program by top-up credits through the Company’s APP platform. The payment for à la carte course and program is not refundable. After the payment is collected by the Company, the Users obtain unlimited access to the courses and programs they purchased for without limitation. The Company recognizes the fees a la carte courses and programs as revenue at the point of time that Users obtain the access to the courses and programs. Other services fees are mainly derived from non-member participation of study tours and forums at the service level of Platinum Members. The Company charges non-members a fixed fee for each Member activity and the price for non-members is determined based on the Company’s allocated Member pricing for each activity. Fees are usually collected on site at the date of each activity and revenues are recognized at the completion of such activity. Contract assets and liabilities The Group’s contract liabilities consist of deferred revenues, primarily relating to the advance consideration received from customers, which include the advance member service fees and enterprise service fees received from customers. The amount from customers before provision of service is recognized as deferred revenue. The deferred revenue is recognized as revenue once the criteria for revenue recognition are met. The Company recognized $170,061 and $253,157 in revenue for the years ended December 31, 2022 and 2021, respectively, which related to contract liabilities that existed at December 31, 2021 and 2020, respectively. The balances as of December 31, 2022 and 2021 are expected to be recognized as revenue within one year. There was no contract asset recorded as of December 31, 2022 and 2021. |
Cost of goods sold | Cost of goods sold The cost of goods sold for the year ended December 31, 2022 was primarily the cost of finished goods of graphite anode materials, including single granular coke, secondary granular coke, and mixed batches of single particle and secondary coke. The cost of goods sold for the year ended December 31, 2021 and 2020 was mainly the cost of electrolytic copper. Cost of goods sold was $38,299,090, $ 2,063,296, and $892,791 for the years ended December 31, 2022, 2021 and 2020, respectively. |
Service costs | Service costs Service costs primarily include (1) the cost of holding events and activities, such as venue rental fees, conference equipment fees, (2) professional and consulting fees paid to third parties for the Company’s activity; (3) the fees paid to Mentors and Experts; and (4) labor costs. Service costs were $1,176,956, $1,823,358 and $2,087,425 for the years ended December 31, 2022, 2021 and 2020, respectively. |
Income taxes | Income taxes The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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 740-10-25, “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 believes there were no uncertain tax positions as of December 31, 2022 and 2021, respectively. The Company does not expect that its assessment regarding unrecognized tax positions will materially change over the next 12 months. The Company is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated. |
(Loss) Earnings per share | (Loss) Earnings per share The Company computes (loss) earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS are computed by dividing (loss) income available to ordinary shareholders of the Company by the weighted average ordinary shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised and converted into ordinary shares. As of December 31, 2022 and 2021, the basic and diluted shares were 24,820,313 and 23,638,751, respectively. |
Comprehensive (loss) income | Comprehensive (loss) income Comprehensive (loss) income consists of two components, net (loss) income and other comprehensive (loss) income. Other comprehensive (loss) income refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net (loss) income. Other comprehensive (loss) income consists of foreign currency translation adjustment resulting from the Company translating its financial statements from functional currency into reporting currency. |
Risks and uncertainties | Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in the PRC and the Company believes that those Chinese banks that hold the Company’s cash and cash equivalents and short-term investments are financially sound based on public available information. Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and short-term investments with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. The Company’s exposure to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by group of counterparties that share similar attributes. There were $10,837,501, $7,449,250, $7,358,181 and $7,193,849 of revenue from four client which represented 28%, 20%, 19% and 19% of the total revenues for the years ended December 31, 2022, respectively. There was $2,000,483 of revenue from one client which represented 27% of the total revenues for the years ended December 31, 2021. There was no revenue from clients which individually represented greater than 10% of the total revenues for the year ended December 31, 2020. There was $1,549,436 of account receivable from one client which represented 12% of the account receivable as of December 31, 2022. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, The Company generally requires advanced payment before delivery of the services but may extend unsecured credit to its clients in the ordinary course of business. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. The Company did not have any material concentrations of credit risk outside the ordinary course of business as of December 31, 2022 and 2021. Interest rate risk Fluctuations in market interest rates may negatively affect the financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage its interest risk exposure. Other uncertainty risk The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations. The Company’s major 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. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things. 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. |
Recently issued accounting pronouncements | Recently issued 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. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Further, the FASB issued ASU No. 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-02 to provide additional guidance on the credit losses standard. For all other entities, the amendments for ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. Adoption of the ASUs is on a modified retrospective basis. The Company has adopt ASU 2016-13 from January 1, 2023. There is no effect on the Company’s consolidated financial statement of the adoption of this ASU. In June 2022, the FASB issued ASU 2022-03, which (1) clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and (2) requires specific disclosures related to such an equity security. ASU 2022-03 clarifies that a “contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security” and is not included in the equity security’s unit of account. Accordingly, an entity should not consider the contractual sale restriction when measuring the equity security’s fair value (i.e., the entity should not apply a discount related to the contractual sale restriction, as stated in ASC 820-10-35-36B as amended by the ASU). In addition, the ASU prohibits an entity from recognizing a contractual sale restriction as a separate unit of account. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. The Company is in the process of evaluating the effect of the adoption of this ASU. |
Organization and Business Des_2
Organization and Business Description (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of subsidiaries and variable interest entities | Name Date of Place of Percentage of Principal Activities Subsidiaries Global Mentor Board March 22, 2019 HK 100% Holding company Beijing Mentor Board Union June 3, 2019 PRC 100% Holding company of GIOP BJ Shidong Cloud (Beijing) Education Technology Co., Ltd (“Shidong Cloud”) December 22, 2021 PRC 75% Educational Consulting SDH (HK) New Energy Tech Co., Ltd. (“SDH New Energy”) October 8, 2021 HK 100% Holding company Zhuhai (Zibo) Investment Co., Ltd. (“Zhuhai Zibo”) October 15, 2021 PRC 100% New Energy Investment Zhuhai (Guizhou) New Energy Investment Co., Ltd. (“Zhuhai Guizhou”) November 23, 2021 PRC 100% New Energy Investment Sunrise (Guizhou) New Energy Materials Co., Ltd. (“Sunrise Guizhou”) November 8, 2021 PRC 39.35% Manufacture of Lithium Battery Materials Guizhou Sunrise Technology Co., Ltd. (“Sunrise Tech”) September 1, 2011 PRC 39.35% Manufacture of Lithium Battery Materials Sunrise (Guxian) New Energy Materials Co., Ltd. (“Sunrise Guxian”) April 26, 2022 PRC 20.07% Manufacture of Lithium Battery Materials Guizhou Sunrise Technology Innovation Research Co., Ltd. (“Innovation Research”) December 13, 2022 PRC 39.35% Research and Development Variable Interest Entity (“VIE”) and subsidiaries of VIE Global Mentor Board (Beijing) December 5, 2014 PRC VIE peer-to-peer knowledge sharing and enterprise service platform provider Global Mentor Board (Hangzhou) November 1, 2017 PRC 100% by VIE Consulting, training and tailored services provider Global Mentor Board (Shanghai) June 30, 2017 PRC 51% by VIE Consulting services provider Shanghai Voice of Seedling June 22, 2017 PRC 51% by VIE cultural and artistic exchanges and planning, conference services provider Shidong (Beijing) Information June 19, 2018 PRC 100% by VIE information technology services provider Mentor Board Voice of Seeding (Shanghai) August 29, 2018 PRC 30.6% by VIE Technical services provider Shidong Zibo Digital Technology Co., Ltd. (“Zibo Shidong”) October 16, 2020 PRC 100% by VIE Technical services provider Shidong Trading Service (Zhejiang) Co., Ltd. (“Shidong Trading”) April 19, 2021 PRC Deregistered in November 2022 Sale of Merchandise Shanghai Jiagui Haifeng Technology Co., Ltd. (“Jiagui Haifeng”) November 29, 2021 PRC 51% by VIE Business Incubation Services provider Shanghai Nanyu Culture Communication Co., Ltd. (“Nanyu Culture”) July 27, 2021 PRC 51% by VIE Enterprise Information Technology Integration services provider Beijing Mentor Board Health Technology Co., Ltd (“GMB Health”) January 7, 2022 PRC 100% by VIE Health Services Shanghai Yuantai Fengdeng Agricultural Technology Co., Ltd. (“Yuantai Fengdeng”) March 4, 2022 PRC 51% by VIE Agricultural Technology Service |
Schedule of balance sheets | As of December 31, 2022 2021 Cash and cash equivalents $ 336,871 $ 3,870,916 Accounts receivable, net 200,539 6,861,672 Inventories 3,590 2,865,958 Due from related parties 391,982 52,268 Prepaid expenses and other current assets 2,537,524 3,002,698 Total current assets 3,470,506 16,653,512 Long term prepayments and other non-current assets 14,358 - Plant, property and equipment, net 2,874,500 3,351,321 Intangible assets, net 31,036 3,594,977 Long-term investments 3,019,281 5,381,441 Operating lease right-of-use assets - 224,773 Deferred tax assets - 852,037 Total non-current assets 5,939,175 13,404,549 Total assets $ 9,409,681 $ 30,058,061 Accounts payable $ 50,953 $ 34,486 Deferred revenue 222,605 179,407 Deferred revenue - related parties 347,471 - Deferred government subsidy 2,871,665 - Income taxes payable 506,638 1,076,518 Due to related parties 96,627 - Operating lease liabilities, current - 99,569 Accrued expenses and other current liabilities 293,699 313,685 Total current liabilities 4,389,658 1,703,665 Total liabilities $ 4,389,658 $ 1,703,665 |
Schedule of income statement | For the years ended 2022 2021 2020 Total net revenue $ 613,679 $ 7,409,272 $ 23,107,340 Net (loss) income $ (15,438,135 ) $ (5,629,408 ) $ 11,931,079 |
Schedule of cash flow | For the years ended 2022 2021 2020 Net cash (used in) provided by operating activities $ (3,320,442 ) $ 2,314,408 $ 6,998,407 Net cash used in investing activities $ - $ (3,025,281 ) $ (6,493,837 ) Net cash provided by financing activities $ - $ - $ 119,996 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of currency exchange rates | December 31, December 31, December 31, Year-end spot rate US$1= RMB 6.9646 US$1= RMB 6.3757 US$1= RMB 6.5249 Average rate US$1= RMB 6.7261 US$1= RMB 6.4515 US$1= RMB 6.8976 |
Schedule of property and equipment are stated at cost less accumulated depreciation | Building 30 years Machines 10 years Electronic equipment 3 years Furniture, fixtures and equipment 3 years Vehicle 3 years Leasehold improvements The shorter of useful life and lease term |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts receivable, Net [Abstract] | |
Schedule of accounts receivable | As of December 31, 2022 2021 Accounts receivable $ 13,215,228 $ 12,606,059 Allowance for doubtful accounts (8,047,527 ) (5,744,387 ) Accounts receivable, net $ 5,167,701 $ 6,861,672 |
Schedule of movement of allowance of doubtful accounts | As of December 31, 2022 2021 2020 Balance at beginning of the year $ 5,744,387 $ 1,808,889 $ 194,375 Current year addition 2,887,754 3,890,827 1,514,559 Write-off - (43,401 ) - Foreign currency translation adjustments (584,614 ) 88,072 99,955 Balance at end of the year $ 8,047,527 $ 5,744,387 $ 1,808,889 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net [Abstract] | |
Schedule of inventories | As of December 31, 2022 2021 Raw materials $ 3,237,940 $ - Finished Goods 12,842,333 3,105,673 Graphite anode materials 12,842,333 - Healthcare service gift cards - 1,276,550 Chinese tea - 718,426 Learning course gift cards - 454,852 Latex pillows - 138,246 Healthcare products - 207,348 Others - 310,251 Work in process 2,246,653 - Others 3,590 - Total $ 18,330,516 $ 3,105,673 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of prepaid expenses and other current assets | As of December 31, 2022 2021 Prepaid expenses $ 211,365 $ 703,281 Advance to supplier 2,820,551 1,759,253 Loans to third parties (1) 2,873,818 840,685 Prepayment for investment (2) 1,206,099 650,909 Other receivables 401,936 299,864 Interest receivable 365,478 171,840 Prepaid value added tax (“VAT”) and income tax (3) 4,468,404 123,100 Deposits for operating lease 36,574 43,090 Subtotal 12,384,225 4,592,022 Less: allowance for other receivables (143,583 ) (156,847 ) Total $ 12,240,642 $ 4,435,175 (1) On March 8, 2021, the Company signed a loan contract with a third party, Waichun Logistics Technology Limited (“Waichun”), to lend $825,000, with annual interest rate of 8%, and will be due on May 10, 2022. The Company renewed the contract with Waichun on May 10, 2022 to extend the loan period to December 31, 2023; Besides, the Company signed a loan contract on March 8, 2021 and renewed it on March 6, 2022 with Waichun to lend $2,000,000 with annual interest rate of 8%, which will be due on December 31, 2023. (2) In September 2021, the Company prepaid $650,909 to acquire 61.5% equity interest of Haicheng Shenhe Technology Co., Ltd. (“Haicheng Shenhe”) The Company and the shareholders of Haicheng Shenhe agreed on the termination of the acquisition however the acquisition fund had not been paid back as of December 31, 2022. One of the shareholders in Haicheng Shenhe, Mr. Wenwu Zhang, was nominated as the Director of Sunrise Guizhou and a balance of $337,421 was reclassified to due from related parties as of December 31, 2022. (3) The amount of VAT payable is determined by applying the applicable tax rate to the invoiced amount of services provided (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). The Company’s input VAT exceeded output VAT as the Company purchased property, plant and equipment for the manufacture on graphite anode materials as of December 31, 2022. |
Long Term Prepayments and Oth_2
Long Term Prepayments and Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long Term Prepayments and Other Non Current Assets [Abstract] | |
Schedule of long term prepayments and other non-current assets | As of December 31, 2022 2021 Prepaid for land use right (1) - 6,947,051 Prepaid for equipment (2) 3,836,627 1,297,866 Loans to third party (3) - 2,000,000 Others 15,329 - Total $ 3,850,985 $ 10,244,917 (1) The Company’s subsidiary Sunrise Guizhou signed to purchase land use right from Qianxinan public resources trading center, with an area of 260,543 square meters and prepaid the consideration of $6,947,051. The land use right had been registered under Sunrise Guizhou on June 10, 2022. (2) Prepaid for equipment represented advance payment on the production line equipment by Sunrise Guizhou, which had not been shipped as of December 31, 2022. (3) The Company signed a loan contract on March 8, 2021 and renewed it on March 6, 2022 with Waichun to lend $2,000,000 with annual interest rate of 8%, which will be due on December 31, 2023. The loan was reclassified to current assets that its maturity was within a year. |
Plant, Property and Equipment_2
Plant, Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of plants, property and equipment, stated at cost less accumulated depreciation | As of December 31, 2022 2021 Building $ 4,656,184 $ 3,061,496 Machines 16,341,419 - Vehicles 332,113 106,266 Electronic equipment 587,131 100,148 Furniture, fixtures and equipment 139,650 82,104 Leasehold improvements 405,141 442,563 Subtotal 22,461,638 3,792,577 Construction in progress 20,135,220 - Less: accumulated depreciation (1,128,475 ) (441,256 ) Plant, property and equipment, net $ 41,468,383 $ 3,351,321 |
Land Use Rights, Net (Tables)
Land Use Rights, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Land Use Rights Abstract | |
Schedule of land use rights, stated at cost less accumulated amortization | As of December 31, 2022 2021 Land use rights - cost $ 10,204,968 $ - Less: accumulated amortization (121,726 ) - Land use rights, net $ 10,083,242 $ - |
Schedule of amortization expense | 2023 $ 221,617 2024 221,617 2025 221,617 2026 221,617 2027 and thereafter 9,196,774 Total $ 10,083,242 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net [Abstract] | |
Schedule of intangible assets stated at cost less accumulated amortization | As of December 31, 2022 2021 Copyrights of course videos $ 4,876,413 $ 5,326,829 Intellectual property rights 4,498,261 - Intangible assets, cost 9,374,674 5,326,829 Less: Accumulated amortization (2,852,753 ) (1,731,852 ) Impairment (2,559,271 ) - Intangible assets, net $ 3,962,650 $ 3,594,977 |
Schedule of future amortization of intangible asset | 2023 $ 716,271 2024 716,271 2025 716,271 2026 716,271 2027 and thereafter 1,097,568 Total $ 3,962,650 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Investment [Abstract] | |
Schedule of long-term investments | As of December 31, 2022 2021 Equity method investments: Shidong (Suzhou) Investment Co., Ltd. (“Suzhou Investment”) $ 37,056 $ 55,324 Equity investments without readily determinable fair value: Shenzhen Jiazhong Creative Capital LLP (“Jiazhong”) 1,435,832 1,568,455 Beijing Xingshuizhixing Technology Co., Ltd. (“Xingshuizhixing”) 1,148,665 1,254,764 Zhejiang Wangxin Health Technology Co., Ltd. (“Wangxin”) - 1,035,180 Hangzhou Zhongfei Aerospace Health Management Co., Ltd. (“Zhongfei”) 430,750 470,537 Shanghai Zhongren Yinzhirun Investment Management Partnership (“Yinzhirun”) 287,167 313,691 Jiangxi Cheyi Tongcheng Car Networking Tech Co., Ltd.(“Cheyi”) 227,970 249,027 Chengdu Zhongfuze Management LLP(“Zhongfuze”) 71,792 78,423 Shanghai Outu Home Furnishings Co., Ltd. (“Outu”) 71,792 78,423 Zhejiang Qianshier Household Co., Ltd.(“Qianshier”) 71,792 78,423 Taizhoujia Menkou Auto Greengrocer’s Delivery Technology Co., Ltd. (“Taizhoujia”) 71,792 78,423 Zhejiang Yueteng Information Technology Co., Ltd. (“Yueteng”) 71,792 78,423 Shidong Funeng(Ruzhou) Industry Development Co., Ltd.( “Funeng”) 38,767 42,348 Dongguan Zhiduocheng Car Service Co., Ltd. (“Car Service”) 25,845 28,232 Subtotal 3,991,012 5,409,673 Less: impairment (971,731 ) (28,232 ) Total $ 3,019,281 $ 5,381,441 |
Asset Acquisition (Tables)
Asset Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Acquisition [Abstract] | |
Schedule of purchase prices of the assets | Land use rights $ 3,654,545 Plant, property and equipment – buildings 1,853,556 Total assets acquired 5,508,101 Deferred tax liabilities (199,813 ) Net assets acquired $ 5,308,288 |
Long Term Payable (Tables)
Long Term Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long Trem Payable Abstract | |
Schedule of loans payable represented the financial liabilities amount due to financial lease | As of December 31, 2022 2021 Long term payables: Far East International Financial Leasing Co., Ltd. (“Far East”) $ 2,594,415 $ - China Power Investment Ronghe Financial Leasing Co., Ltd. (“Ronghe”) 5,191,056 - Total $ 7,785,471 - Current portion 3,706,628 - Non-current portion $ 4,078,843 $ - |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule income tax (benefit) provision | For the years ended 2022 2021 2020 Current China $ 1,560 $ - $ 3,367,763 Deferred China 807,410 (236,581 ) (312,780 ) Total $ 808,970 $ (236,581 ) $ 3,054,983 |
Schedule of (Loss) profit before income taxes | For the years ended December 31, 2022 2021 2020 PRC $ (16,323,667 ) $ (6,034,466 ) $ 15,150,941 Others (5,991,765 ) (2,916,447 ) (138,671 ) (Loss) profit before income taxes $ (22,315,432 ) $ (8,950,913 ) $ 15,012,270 |
Schedule of income before income taxes and the actual provision of income taxes | For the years ended December 31, 2022 2021 2020 (Loss) profit before income taxes $ (22,315,432 ) $ (8,950,913 ) 15,012,270 PRC EIT rate 25 % 25 % 25 % Income taxes computed at statutory EIT rate $ (5,578,858 ) $ (2,237,728 ) 3,753,068 Reconciling items: Effect of tax holiday and preferential tax rate 1,274,465 169,657 (581,434 ) Effect of tax rates in foreign jurisdictions 1,497,723 728,965 (46,330 ) Effect of non-deductible expense 13,917 4,403 5,202 Effect of non-deductible share-based compensation 682,492 - - Super deduction of qualified R&D expenditures - (107,975 ) (75,523 ) Changes in valuation allowance 2,919,231 1,206,097 - Income tax expense (benefit) $ 808,970 $ (236,581 ) 3,054,983 Effective tax rate (3.63 )% 2.64 % 20.35 % |
Schedule of deferred tax assets | As of December 31, 2022 2021 Deferred tax assets Net operating loss carry forwards $ 1,934,559 $ 978,216 Provision for doubtful debts 1,439,947 1,092,140 Impairment on inventory 398,578 - Impairment of long-lived assets 163,420 - Deferred tax assets, gross 3,936,504 2,070,356 Less: valuation allowance (3,936,504 ) (1,218,319 ) Deferred tax assets, net $ - $ 852,037 Deferred tax liabilities Assets acquired in the asset acquisition $ 199,583 - |
Schedule of expiration of carry forward operating loss | For the years ending December 31, 2023 $ 5,360 2024 522,780 2025 166,113 2026 12,894 2027 9,423,368 Total $ 10,130,515 |
Related Party Balance and Tra_2
Related Party Balance and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of balances of amount due from related parties | As of December 31, 2022 2021 Due from related parties Bally 5,168 5,168 Zhuhai Investment - 25,534 Mr. Xuanming Wang 20,102 26,664 Mr. Haiwei Zuo - 7,912 Mr. Wenwu Zhang (1) 337,420 - Shidong (Suzhou) Investment Co., Ltd. 37,332 - Total $ 400,022 $ 65,278 (1) The balance as of December 31, 2022 represented the prepaid acquisition consideration to purchase Mr. Wenwu Zhang’s equity in Haicheng Shenhe. See Note 7. |
Schedule of due to related parties | As of December 31, 2022 2021 Due to related parties Mr. Haiping Hu 2,872 - Mr. Chenming Qi 9,189 - Ms. Jing Ji 19,923 - Shanghai HuiYang Investment Co. (1) 738,128 - Haicheng Shenhe 50,395 - Zhuhai Investment 64,643 - Total $ 885,150 $ - (1) The balance as of December 31, 2022 represented the loans from the related party, with the annual interest rate of 4.35% and was initially due on August 13, 2022 and extended to December 31, 2023. |
Schedule of balances of deferred revenue of related parties | As of December 31, 2022 2021 Deferred revenue of related parties Shanghai Hui Yang Investment Co. (1) $ 347,471 $ - Total $ 347,471 $ - (1) The balance as of December 31, 2022 represented the advance from the related party for tailored services. |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders’ Equity [Abstract] | |
Schedule of share-based compensation expenses | For the years ended 2022 2021 2020 Cost of revenues $ 8,188 $ - $ - Selling expenses 39,301 - - General and administrative expenses 2,674,292 - - Research and development expenses 8,188 - - Total $ 2,729,969 $ - $ - |
Schedule of restricted shares units | Number of Weighted Aggregate Restricted share units outstanding at January 1, 2022 - - - Granted 3,334,200 2.00 - Vested (833,550 ) 2.00 - Restricted share units outstanding at December 31, 2022 2,500,650 2.00 6,826,775 |
Schedule of non-controlling interest | As of December 31, 2022 2021 GMB (Beijing) $ 4,313 $ 5,365 GMB Culture 2,997 25,613 Jiagui Haifeng (710 ) (13 ) Shidong Trading - (35 ) GMB Consulting 13,270 14,477 Shidong Cloud 42,389 - Sunrise Guxian (39,323 ) - GMB Technology (186,539 ) (185,377 ) Sunrise Guizhou 42,402,995 3,262,220 Total $ 42,239,392 $ 3,122,250 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of revenue by major revenue | For the years ended REVENUES, NET 2022 2021 2020 Graphite anode business $ 37,580,677 $ - $ - Peer-to-peer knowledge sharing and enterprise business 544,991 7,409,272 23,181,084 Member services 106,724 498,330 872,629 Enterprise services -Comprehensive tailored services 153,658 1,433,847 13,345,880 -Sponsorship advertising services - 1,734,390 6,598,527 -Consulting services 9,645 1,583,583 416,634 Online services 2,100 40,391 361,933 Other revenues 272,864 2,118,731 1,585,481 Revenues, net $ 38,125,668 $ 7,409,272 $ 23,181,084 For the years ended COST OF REVENUES 2022 2021 2020 Graphite anode business $ 35,586,544 $ - $ - Peer-to-peer knowledge sharing and enterprise business 3,889,502 3,886,654 2,980,216 Member services 591,000 99,013 174,660 Enterprise services -Comprehensive tailored services 294,759 157,563 340,783 -Sponsorship advertising services - 34,041 255,634 -Consulting services 218,719 733,266 239,845 Online services 66,403 798,010 1,076,503 Other revenues 2,718,621 2,064,761 892,791 Cost of revenues $ 39,476,046 $ 3,886,654 $ 2,980,216 For the years ended GROSS (LOSS) PROFIT 2022 2021 2020 Graphite anode business $ 1,994,133 $ - $ - Peer-to-peer knowledge sharing and enterprise business (3,344,511 ) 3,522,618 20,200,868 Member services (484,276 ) 399,317 697,969 Enterprise services -Comprehensive tailored services (141,101 ) 1,276,284 13,005,097 -Sponsorship advertising services - 1,700,349 6,342,893 -Consulting services (209,074 ) 850,317 176,789 Online services (64,303 ) (757,619 ) (714,570 ) Other revenues (2,445,757 ) 53,970 692,690 Gross (loss) profit $ (1,350,378 ) $ 3,522,618 $ 20,200,868 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent compnay balance sheets | As of December 31, 2022 2021 ASSETS CURRENT ASSETS Cash and cash equivalents $ 285,916 $ 784,176 Restricted cash 700,094 - Due from related parties 5,168 5,168 Short-term investment 3,336,256 5,961,605 Advance to suppliers 7,694 13,727 Prepaid expenses and other current assets 2,994,975 1,011,542 TOTAL CURRENT ASSETS 7,330,103 7,776,218 NON-CURRENT ASSETS Restricted cash - 700,060 Long term prepayments and other non-current assets - 2,000,000 Investment in subsidiaries and VIE 24,714,096 41,438,198 TOTAL NON-CURRENT ASSETS 24,714,096 44,138,258 TOTAL ASSETS 32,044,199 51,914,476 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accrued expenses and other current liabilities 15,550 211,430 TOTAL CURRENT LIABILITIES 15,550 211,430 TOTAL LIABILITES 15,550 211,430 EQUITY Ordinary shares (500,000,000 shares authorized; $0.0001 par value, 24,528,000 shares issued and outstanding as of December 31, 2021; 25,361,550 shares issued and outstanding as of December 31, 2022) 2,536 2,453 Additional paid-in capital 34,696,702 31,966,816 Statutory reserves 2,477,940 2,473,801 (Accumulated deficits) Retained earnings (5,148,529 ) 17,259,976 TOTAL EQUITY 32,028,649 51,703,046 TOTAL LIABILITIES AND EQUITY $ 32,044,199 $ 51,914,476 |
Schedule of parent compnay statements of operations and comprehensive (loss) income | For the years ended 2022 2021 2020 REVENUES, NET $ - $ - $ 73,744 COSTS OF REVENUES 8,188 - - GROSS (LOSS) PROFIT (8,188 ) - 73,744 OPERATING EXPENSES 3,578,664 1,010,536 50,000 (LOSS) PROFIT FROM OPERATIONS (3,586,852 ) (1,010,536 ) 23,744 OTHER (EXPENSES) INCOME (2,403,412 ) (1,904,135 ) 4,459 (LOSS) PROFIT BEFORE EQUITY IN (LOSS) EARNINGS OF SUBSIDIARIES AND VIE (5,990,264 ) (2,914,671 ) 28,203 Equity in (loss) earnings of subsidiaries and VIE (16,414,102 ) (5,488,589 ) 12,059,324 NET (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS (22,404,366 ) (8,403,260 ) 12,087,527 Foreign currency translation adjustment - - - COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS $ (22,404,366 ) $ (8,403,260 ) $ 12,087,527 |
Schedule of parent compnay statements of cash flows | For the years ended December 31, 2022 2021 2020 Net cash used in operating activities (808,226 ) (1,015,145 ) (52,994 ) Net cash used in investing activities (25,825,000 ) - Net cash provided by financing activities 310,000 28,249,093 128,282 (Decrease) increase in cash and cash equivalents (498,226 ) 1,408,948 75,288 Cash, cash equivalents and restricted cash, beginning of year 1,484,236 75,288 - Cash, cash equivalents and restricted cash, end of year $ 986,010 $ 1,484,236 $ 75,288 Cash, cash equivalents and restricted cash, end of year 986,010 1,484,236 75,288 Less: restricted cash 700,094 700,060 - Cash and cash equivalents, end of year 285,916 784,176 75,288 |
Organization and Business Des_3
Organization and Business Description (Details) | 12 Months Ended | ||
Dec. 31, 2022 $ / shares | Dec. 31, 2022 ¥ / shares | Jul. 02, 2022 | |
Organization and Business Description [Abstract] | |||
Percentage of shareholders | 100% | 100% | 100% |
Option price | (per share) | $ 1.45 | ¥ 10 |
Organization and Business Des_4
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities | 12 Months Ended |
Dec. 31, 2022 | |
Global Mentor Board Information Technology Limited (“GMB HK”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Mar. 22, 2019 |
Place of incorporation | HK |
Percentage of effective ownership | 100% |
Principal Activities | Holding company |
Beijing Mentor Board Union Information Technology Co, Ltd. (“GIOP BJ” or “WFOE”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Jun. 03, 2019 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% |
Principal Activities | Holding company of GIOP BJ |
Shidong Cloud (Beijing) Education Technology Co., Ltd (“Shidong Cloud”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Dec. 22, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | 75% |
Principal Activities | Educational Consulting |
SDH (HK) New Energy Tech Co., Ltd. (“SDH New Energy”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Oct. 08, 2021 |
Place of incorporation | HK |
Percentage of effective ownership | 100% |
Principal Activities | Holding company |
Zhuhai (Zibo) Investment Co., Ltd. (“Zhuhai Zibo”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Oct. 15, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% |
Principal Activities | New Energy Investment |
Zhuhai (Guizhou) New Energy Investment Co., Ltd. (“Zhuhai Guizhou”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Nov. 23, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% |
Principal Activities | New Energy Investment |
Sunrise (Guizhou) New Energy Materials Co., Ltd. (“Sunrise Guizhou”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Nov. 08, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | 39.35% |
Principal Activities | Manufacture of Lithium Battery Materials |
Guizhou Huiyang Technology Co., Ltd. (“Huiyang Tech”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Sep. 01, 2011 |
Place of incorporation | PRC |
Percentage of effective ownership | 39.35% |
Principal Activities | Manufacture of Lithium Battery Materials |
Sunrise (Guxian) New Energy Materials Co., Ltd. (“Sunrise Guxian”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Apr. 26, 2022 |
Place of incorporation | PRC |
Percentage of effective ownership | 20.07% |
Principal Activities | Manufacture of Lithium Battery Materials |
Guizhou Huiyang Technology Innovation Research Co., Ltd. (“Innovation Research”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Dec. 13, 2022 |
Place of incorporation | PRC |
Percentage of effective ownership | 39.35% |
Principal Activities | Research and Development |
Global Mentor Board (Beijing) Information Technology Co., Ltd. (“SDH” or “VIE”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Dec. 05, 2014 |
Place of incorporation | PRC |
Percentage of effective ownership | VIE |
Principal Activities | peer-to-peer knowledge sharing and enterprise service platform provider |
Global Mentor Board (Hangzhou) Technology Co., Ltd. [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Nov. 01, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% by VIE |
Principal Activities | Consulting, training and tailored services provider |
Global Mentor Board (Shanghai) Enterprise Management Consulting Co., Ltd. [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Jun. 30, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 51% by VIE |
Principal Activities | Consulting services provider |
Shanghai Voice of Seedling Cultural Media Co.,Ltd. (“GMB Culture”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Jun. 22, 2017 |
Place of incorporation | PRC |
Percentage of effective ownership | 51% by VIE |
Principal Activities | cultural and artistic exchanges and planning, conference services provider |
Shidong(Beijing)Information Technology Co., LTD. (“GMB (Beijing)”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Jun. 19, 2018 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% by VIE |
Principal Activities | information technology services provider |
Mentor Board Voice of Seeding (Shanghai) Cultural Technology Co., Ltd. [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Aug. 29, 2018 |
Place of incorporation | PRC |
Percentage of effective ownership | 30.6% by VIE |
Principal Activities | Technical services provider |
Shidong Zibo Digital Technology Co., Ltd. (“Zibo Shidong”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Oct. 16, 2020 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% by VIE |
Principal Activities | Technical services provider |
Shidong Trading Service (Zhejiang) Co., Ltd. (“Shidong Trading”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Apr. 19, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | Deregistered in November 2022 |
Principal Activities | Sale of Merchandise |
Shanghai Jiagui Haifeng Technology Co., Ltd. (“Jiagui Haifeng”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Nov. 29, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | 51% by VIE |
Principal Activities | Business Incubation Services provider |
Shanghai Nanyu Culture Communication Co., Ltd. (“Nanyu Culture”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Jul. 27, 2021 |
Place of incorporation | PRC |
Percentage of effective ownership | 51% by VIE |
Principal Activities | Enterprise Information Technology Integration services provider |
Beijing Mentor Board Health Technology Co., Ltd (“GMB Health”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Jan. 07, 2022 |
Place of incorporation | PRC |
Percentage of effective ownership | 100% by VIE |
Principal Activities | Health Services |
Shanghai Yuantai Fengdeng Agricultural Technology Co., Ltd. (“Yuantai Fengdeng”) [Member] | |
Organization and Business Description (Details) - Schedule of subsidiaries and variable interest entities [Line Items] | |
Date of Incorporation | Mar. 04, 2022 |
Place of incorporation | PRC |
Percentage of effective ownership | 51% by VIE |
Principal Activities | Agricultural Technology Service |
Organization and Business Des_5
Organization and Business Description (Details) - Schedule of balance sheets | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2017 CNY (¥) |
Schedule Of Balance Sheets Abstract | |||
Cash and cash equivalents | $ 336,871 | $ 3,870,916 | ¥ 90,000 |
Accounts receivable, net | 200,539 | 6,861,672 | |
Inventories | 3,590 | 2,865,958 | |
Due from related parties | 391,982 | 52,268 | |
Prepaid expenses and other current assets | 2,537,524 | 3,002,698 | |
Total current assets | 3,470,506 | 16,653,512 | |
Long term prepayments and other non-current assets | 14,358 | ||
Plant, property and equipment, net | 2,874,500 | 3,351,321 | |
Intangible assets, net | 31,036 | 3,594,977 | |
Long-term investments | 3,019,281 | 5,381,441 | |
Operating lease right-of-use assets | 224,773 | ||
Deferred tax assets | 852,037 | ||
Total non-current assets | 5,939,175 | 13,404,549 | |
Total assets | 9,409,681 | 30,058,061 | |
Accounts payable | 50,953 | 34,486 | |
Deferred revenue | 222,605 | 179,407 | |
Deferred revenue - related parties | 347,471 | ||
Deferred government subsidy | 2,871,665 | ||
Income taxes payable | 506,638 | 1,076,518 | |
Due to related parties | 96,627 | ||
Operating lease liabilities, current | 99,569 | ||
Accrued expenses and other current liabilities | 293,699 | 313,685 | |
Total current liabilities | 4,389,658 | 1,703,665 | |
Total liabilities | $ 4,389,658 | $ 1,703,665 |
Organization and Business Des_6
Organization and Business Description (Details) - Schedule of income statement - VIP [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements, Captions [Line Items] | |||
Total net revenue | $ 613,679 | $ 7,409,272 | $ 23,107,340 |
Net (loss) income | $ (15,438,135) | $ (5,629,408) | $ 11,931,079 |
Organization and Business Des_7
Organization and Business Description (Details) - Schedule of cash flow - VIP [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization and Business Description (Details) - Schedule of cash flow [Line Items] | |||
Net cash (used in) provided by operating activities | $ (3,320,442) | $ 2,314,408 | $ 6,998,407 |
Net cash used in investing activities | (3,025,281) | (6,493,837) | |
Net cash provided by financing activities | $ 119,996 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2019 | Nov. 30, 2017 | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CNY (¥) ¥ / shares | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ownership interest percentage | 0.98% | 1.50% | |||||
Restricted cash | $ 700,000 | ||||||
Allowance amount | 8,047,527 | $ 5,744,387 | |||||
Inventory valuation allowance | 2,711,158 | ||||||
Long-term investments | 14,072 | 41,925 | 1,087 | ||||
Impairment charges | 979,426 | ||||||
Impairments charges for intangible assets | 2,650,020 | ||||||
Deferred government grants | 3,048,035 | 458,182 | 101,485 | ||||
Deferred government | $ 2,871,665 | ||||||
Q&A session fees description | The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. | The Q&A session is usually provided by chosen Mentors or Experts within a course of a 72-hour period. The Company charges 30% of the Q&A fees as a facilitator of online services. The Q&A fees are allocated to the Company and chosen Mentors or Experts automatically by the APP on a 30%/70% split upon completion of Q&A sessions. The Company recognizes this online service fees as revenue at completion of Q&A sessions on a net basis, i.e., in the amount of 30% of allocated Q&A fees, as the Company merely provides a platform for its Users and is not the primary obligor of the Q&A session, neither has risks and rewards as principal. | |||||
Annual rate (in Yuan Renminbi) | ¥ | ¥ 299 | ||||||
Revenue | $ 170,061 | 253,157 | |||||
Service costs | $ 1,176,956 | $ 1,823,358 | 2,087,425 | ||||
Diluted shares (in Dollars per share) | $ / shares | $ 24,820,313 | $ 23,638,751 | |||||
Aggregate deposits (in Yuan Renminbi) | ¥ | ¥ 500,000 | ||||||
Revenue | $ 39,476,046 | $ 3,886,654 | $ 2,980,216 | ||||
Total revenues, percentage | 10% | ||||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Land use rights, useful lives | 40 years | 40 years | |||||
Estimated useful lives | 5 years | 5 years | |||||
Price per share relating to course of program (in Yuan Renminbi per share) | ¥ / shares | ¥ 9.9 | ||||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Land use rights, useful lives | 50 years | 50 years | |||||
Estimated useful lives | 10 years | 10 years | |||||
Price per share relating to course of program (in Yuan Renminbi per share) | ¥ / shares | ¥ 299 | ||||||
Electrolytic Copper [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cost of goods sold | $ 38,299,090 | $ 2,063,296 | $ 892,791 | ||||
GMB (Beijing) [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ownership interest percentage | 49% | 49% | |||||
Guizhou New Energy [Member]` | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ownership interest percentage | 60.65% | 60.65% | 49% | ||||
GMB Culture [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ownership interest percentage | 49% | 49% | 49% | ||||
Shidong Cloud [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ownership interest percentage | 25% | 25% | 25% | ||||
Shidong Trading [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Ownership interest percentage | 40% | 40% | 40% | ||||
Client One [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue | $ 10,837,501 | $ 2,000,483 | |||||
Total revenues, percentage | 28% | 27% | 28% | ||||
Account receivable | $ 1,549,436 | ||||||
Account receivable, percentage | 12% | 12% | |||||
Client Two [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue | $ 7,449,250 | ||||||
Total revenues, percentage | 19% | 19% | |||||
Client Three [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue | $ 7,358,181 | ||||||
Total revenues, percentage | 19% | 19% | |||||
Client Four [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Revenue | $ 7,193,849 | ||||||
Total revenues, percentage | 20% | 20% | |||||
Guizhou New Energy [Member]` | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity interest percentage | 39.35% | 39.35% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Currency Exchange Rates [Abstract] | |||
Year-end spot rate | US$1= RMB 6.9646 | US$1= RMB 6.3757 | US$1= RMB 6.5249 |
Average rate | US$1= RMB 6.7261 | US$1= RMB 6.4515 | US$1= RMB 6.8976 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 10 years |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 30 years |
Electronic equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 3 years |
Furniture, fixtures and equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 3 years |
Vehicle [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | 3 years |
Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment are stated at cost less accumulated depreciation [Line Items] | |
Expected useful lives | The shorter of useful life and lease term |
Liquidity (Details)
Liquidity (Details) | 1 Months Ended | 12 Months Ended | |||||
Feb. 07, 2023 USD ($) | Feb. 07, 2023 CNY (¥) | Jan. 18, 2023 USD ($) | Jan. 18, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
Liquidity [Abstract] | |||||||
Net losses | $ 23,124,402 | $ 8,714,332 | |||||
Net cash used in operating activities | 9,573,401 | $ 5,233,182 | |||||
Cash equivalents and restricted cash | 10,322,198 | ||||||
Cash | 1,655,549 | ||||||
Line of credit from Bank | $ 933,291 | ¥ 6,500,000 | |||||
Subsequent Event [Member] | |||||||
Liquidity [Abstract] | |||||||
Credit facility agreement | $ 4,307,498 | ¥ 30,000,000 | |||||
Debt financing arrangement | $ 2,871,665 | ¥ 20,000,000 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable, Net [Abstract] | |||
Doubtful accounts provision | $ 2,887,754 | $ 3,847,426 | $ 1,514,559 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable | $ 13,215,228 | $ 12,606,059 |
Allowance for doubtful accounts | (8,047,527) | (5,744,387) |
Accounts receivable, net | $ 5,167,701 | $ 6,861,672 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of movement of allowance of doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Movement of Allowance of Doubtful Accounts [Abstract] | |||
Balance at beginning of the year | $ 5,744,387 | $ 1,808,889 | $ 194,375 |
Current year addition | 2,887,754 | 3,890,827 | 1,514,559 |
Write-off | (43,401) | ||
Foreign currency translation adjustments | (584,614) | 88,072 | 99,955 |
Balance at end of the year | $ 8,047,527 | $ 5,744,387 | $ 1,808,889 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories, Net (Details) [Line Items] | |||
Estimated net realizable value | |||
Inventory valuation allowance | 2,711,158 | ||
Accounts Receivable [Member] | |||
Inventories, Net (Details) [Line Items] | |||
Inventory valuation allowance | $ 2,711,158 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of inventories - Inventories [Member] - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Raw materials | $ 3,237,940 | |
Finished Goods | 12,842,333 | 3,105,673 |
Total | 18,330,516 | 3,105,673 |
Work in process | 2,246,653 | |
Others | 3,590 | |
Graphite anode materials [Member] | ||
Inventory [Line Items] | ||
Total | 12,842,333 | |
Healthcare service gift cards [Member] | ||
Inventory [Line Items] | ||
Total | 1,276,550 | |
Chinese tea [Member] | ||
Inventory [Line Items] | ||
Total | 718,426 | |
Learning course gift cards [Member] | ||
Inventory [Line Items] | ||
Total | 454,852 | |
Latex pillows [Member] | ||
Inventory [Line Items] | ||
Total | 138,246 | |
Healthcare products [Member] | ||
Inventory [Line Items] | ||
Total | 207,348 | |
Others [Member] | ||
Inventory [Line Items] | ||
Total | $ 310,251 |
Short-Term Investment (Details)
Short-Term Investment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2021 | |
Short-Term Investment [Abstract] | |||
Total investment | $ 8,000,000 | ||
Net asset value | $ 3,336,256 | $ 5,961,605 | |
Investment loss | $ 2,625,349 | $ 2,038,395 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Mar. 06, 2022 | Sep. 30, 2021 | Mar. 08, 2021 | Dec. 31, 2022 |
Prepaid Expenses and Other Current Assets [Abstract] | ||||
Annual payment | $ 825,000 | |||
Interest rate | 8% | |||
Due date | May 10, 2022 | |||
Lend amount | $2,000,000 | |||
Prepaid expenses | $ 8 | |||
Prepaid service fee | $ 650,909 | |||
Equity interest rate | 61.50% | |||
Related parties | $ 337,421 |
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 | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule Of Prepaid Expenses And Other Current Assets Abstract | |||
Prepaid expenses | $ 211,365 | $ 703,281 | |
Advance to supplier | 2,820,551 | 1,759,253 | |
Loans to third parties | [1] | 2,873,818 | 840,685 |
Prepayment for investment | [2] | 1,206,099 | 650,909 |
Other receivables | 401,936 | 299,864 | |
Interest receivable | 365,478 | 171,840 | |
Prepaid value added tax (“VAT”) and income tax | [3] | 4,468,404 | 123,100 |
Deposits for operating lease | 36,574 | 43,090 | |
Subtotal | 12,384,225 | 4,592,022 | |
Less: allowance for other receivables | (143,583) | (156,847) | |
Total | $ 12,240,642 | $ 4,435,175 | |
[1]On March 8, 2021, the Company signed a loan contract with a third party, Waichun Logistics Technology Limited (“Waichun”), to lend $825,000, with annual interest rate of 8%, and will be due on May 10, 2022. The Company renewed the contract with Waichun on May 10, 2022 to extend the loan period to December 31, 2023; Besides, the Company signed a loan contract on March 8, 2021 and renewed it on March 6, 2022 with Waichun to lend $2,000,000 with annual interest rate of 8%, which will be due on December 31, 2023.[2] In September 2021, the Company prepaid $650,909 to acquire 61.5% equity interest of Haicheng Shenhe Technology Co., Ltd. (“Haicheng Shenhe”) The Company and the shareholders of Haicheng Shenhe agreed on the termination of the acquisition however the acquisition fund had not been paid back as of December 31, 2022. One of the shareholders in Haicheng Shenhe, Mr. Wenwu Zhang, was nominated as the Director of Sunrise Guizhou and a balance of $337,421 was reclassified to due from related parties as of December 31, 2022. |
Long Term Prepayments and Oth_3
Long Term Prepayments and Other Non-Current Assets (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) m² | |
Long Term Prepayments and Other Non-Current Assets (Details) [Line Items] | |
Loan contract, description | The Company signed a loan contract on March 8, 2021 and renewed it on March 6, 2022 with Waichun to lend $2,000,000 with annual interest rate of 8%, which will be due on December 31, 2023. |
Guizhou New Energy [Member] | |
Long Term Prepayments and Other Non-Current Assets (Details) [Line Items] | |
Area of square meters | m² | 260,543 |
Prepaid consideration | $ | $ 6,947,051 |
Long Term Prepayments and Oth_4
Long Term Prepayments and Other Non-Current Assets (Details) - Schedule of long term prepayments and other non-current assets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Long Term Prepayments and Other Non Current Assets [Abstract] | ||||
Prepaid for land use right | [1] | $ 6,947,051 | ||
Prepaid for equipment | [2] | 3,836,627 | 1,297,866 | |
Loans to third party | [3] | 2,000,000 | ||
Others | 15,329 | |||
Total | $ 3,850,985 | $ 10,244,917 | ||
[1]The Company’s subsidiary Sunrise Guizhou signed to purchase land use right from Qianxinan public resources trading center, with an area of 260,543 square meters and prepaid the consideration of $6,947,051. The land use right had been registered under Sunrise Guizhou on June 10, 2022.[2] Prepaid for equipment represented advance payment on the production line equipment by Sunrise Guizhou, which had not been shipped as of December 31, 2022. |
Plant, Property and Equipment_3
Plant, Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Plant, Property and Equipment, Net [Abstract] | |||
Depreciation expense | $ 750,220 | $ 198,747 | $ 126,589 |
Plant, Property and Equipment_4
Plant, Property and Equipment, Net (Details) - Schedule of plants, property and equipment, stated at cost less accumulated depreciation - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | $ 22,461,638 | $ 3,792,577 |
Construction in progress | 20,135,220 | |
Less: accumulated depreciation | (1,128,475) | (441,256) |
Property and equipment, net | 41,468,383 | 3,351,321 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | 4,656,184 | 3,061,496 |
Machines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | 16,341,419 | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | 332,113 | 106,266 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | 587,131 | 100,148 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | 139,650 | 82,104 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plants, property and equipment, gross | $ 405,141 | $ 442,563 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Land Use Rights, Net [Abstract] | |||
Amortization | $ 126,042 |
Land Use Rights, Net (Details)
Land Use Rights, Net (Details) - Schedule of land use rights, stated at cost less accumulated amortization - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Land Use Rights Stated At Cost Less Accumulated Amortization [Abstract] | ||
Land use rights - cost | $ 10,204,968 | |
Less: accumulated amortization | (121,726) | |
Land use rights, net | $ 10,083,242 |
Land Use Rights, Net (Details_2
Land Use Rights, Net (Details) - Schedule of amortization expense | Dec. 31, 2022 USD ($) |
Schedule of Amortization Expense [Abstract] | |
2023 | $ 221,617 |
2024 | 221,617 |
2025 | 221,617 |
2026 | 221,617 |
2027 and thereafter | 9,196,774 |
Total | $ 10,083,242 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets, Net [Abstract] | |||
Amortization expense | $ 1,312,279 | $ 789,925 | $ 738,837 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets stated at cost less accumulated amortization - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, cost | $ 9,374,674 | $ 5,326,829 |
Less: | ||
Accumulated amortization | (2,852,753) | (1,731,852) |
Impairment | (2,559,271) | |
Intangible assets, net | 3,962,650 | 3,594,977 |
Copyrights of Course Videos [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, cost | 4,876,413 | 5,326,829 |
Land Use Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, cost | $ 4,498,261 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of future amortization of intangible asset | Dec. 31, 2021 USD ($) |
Schedule of Future Amortization of Intangible Asset [Abstract] | |
2023 | $ 716,271 |
2024 | 716,271 |
2025 | 716,271 |
2026 | 716,271 |
2027 and thereafter | 1,097,568 |
Total | $ 3,962,650 |
Long-Term Investments (Details)
Long-Term Investments (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Apr. 11, 2021 USD ($) | Apr. 11, 2021 CNY (¥) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 CNY (¥) | Nov. 30, 2019 USD ($) | Nov. 30, 2019 CNY (¥) | Aug. 31, 2019 CNY (¥) | May 31, 2019 | Dec. 31, 2017 CNY (¥) | Nov. 30, 2017 CNY (¥) | Dec. 31, 2016 USD ($) | Dec. 31, 2016 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Nov. 30, 2020 USD ($) | Nov. 30, 2020 CNY (¥) | Jun. 30, 2020 USD ($) | Jun. 30, 2020 CNY (¥) | |
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Recognized investment losses | $ 14,072 | $ 14,025 | $ 15,585 | ||||||||||||||||||||
Paid consideration | ¥ | ¥ 10,000,000 | ||||||||||||||||||||||
Equity interest percentage | 4.35% | 4.35% | |||||||||||||||||||||
Impairment for investment | 27,900 | ||||||||||||||||||||||
Membership service amount (in Yuan Renminbi) | ¥ | ¥ 1,500,000 | ||||||||||||||||||||||
Provided for investment | 236,053 | ||||||||||||||||||||||
Shareholding interest | 0.98% | 1.50% | |||||||||||||||||||||
Cash consideration (in Yuan Renminbi) | ¥ 90,000 | $ 336,871 | $ 3,870,916 | ||||||||||||||||||||
Suzhou Investment [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 17% | ||||||||||||||||||||||
Investment in Jiazhong [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 33% | 33% | |||||||||||||||||||||
Zhongfei [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 3% | 3% | |||||||||||||||||||||
Yinzhirun [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 0.45% | 0.45% | |||||||||||||||||||||
Cheyi [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 0.50% | 0.50% | |||||||||||||||||||||
Investment in Car Service [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 11.11% | 11.11% | |||||||||||||||||||||
Yunshang E-commerce [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 15% | 15% | |||||||||||||||||||||
Qianshier [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 5% | 5% | |||||||||||||||||||||
Taizhoujia [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 5% | 5% | |||||||||||||||||||||
Yueteng [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 5% | 5% | |||||||||||||||||||||
Funeng [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Percentage of acquired shareholding | 19% | ||||||||||||||||||||||
Suzhou Investment [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Cash consideration | ¥ | ¥ 850,000 | ||||||||||||||||||||||
Investment in Jiazhong [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Paid consideration | $ 1,435,832 | 10,000,000 | |||||||||||||||||||||
Investment in Xingshuizhixing [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Invest amount | $ 1,148,666 | ¥ 8,000,000 | |||||||||||||||||||||
Equity interest percentage | 4% | 4% | |||||||||||||||||||||
Impairment for investment | $ 74,337 | ||||||||||||||||||||||
Cash paid (in Yuan Renminbi) | ¥ | ¥ 500,000 | ||||||||||||||||||||||
Cash paid | 71,792 | ||||||||||||||||||||||
Investment in Wangxin [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Cash consideration | $ 947,650 | ¥ 6,600,000 | |||||||||||||||||||||
Equity interest percentage | 2.15% | 2.15% | |||||||||||||||||||||
Zhongfei [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Equity interest percentage | 3% | 3% | |||||||||||||||||||||
Account receivables due | $ 430,750 | ¥ 3,000,000 | |||||||||||||||||||||
Customized service amount (in Yuan Renminbi) | ¥ | ¥ 3,000,000 | ||||||||||||||||||||||
Impairment for investment | 446,025 | ||||||||||||||||||||||
Yinzhirun [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Cash consideration | $ 287,167 | ¥ 2,000,000 | |||||||||||||||||||||
Cheyi [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Equity interest percentage | 0.50% | 0.50% | |||||||||||||||||||||
Account receivables due | $ 227,970 | ¥ 1,587,719 | |||||||||||||||||||||
Investment in Car Service [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Cash consideration | $ 71,792 | ¥ 500,000 | |||||||||||||||||||||
Investment in Zhongfuze [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Paid consideration | ¥ | 500,000 | ||||||||||||||||||||||
Yunshang E-commerce [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Cash consideration | $ 430,750 | ¥ 3,000,000 | |||||||||||||||||||||
Qianshier [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Account receivables due | $ 71,792 | ¥ 500,000 | |||||||||||||||||||||
Impairment for investment | 74,337 | ||||||||||||||||||||||
Taizhoujia [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Account receivables due | $ 71,792 | ¥ 500,000 | |||||||||||||||||||||
Impairment for investment | 74,337 | ||||||||||||||||||||||
Yueteng [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Account receivables due | $ 71,792 | ¥ 500,000 | |||||||||||||||||||||
Impairment for investment | $ 74,337 | ||||||||||||||||||||||
Funeng [Member] | |||||||||||||||||||||||
Long-Term Investments (Details) [Line Items] | |||||||||||||||||||||||
Cash consideration | ¥ | ¥ 570,000 | ||||||||||||||||||||||
Paid consideration | ¥ | ¥ 270,000 |
Long-Term Investments (Detail_2
Long-Term Investments (Details) - Schedule of long-term investments - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Equity method investments: | ||
Sub total | $ 3,991,012 | $ 5,409,673 |
Less: impairment | (971,731) | (28,232) |
Total | 3,019,281 | 5,381,441 |
Shidong (Suzhou) Investment Co., Ltd. (“Suzhou Investment”) [Member] | ||
Equity method investments: | ||
Sub total | 37,056 | 55,324 |
Shenzhen Jiazhong Creative Capital LLP (“Jiazhong”) [Member] | ||
Equity method investments: | ||
Sub total | 1,435,832 | 1,568,455 |
Beijing Yunshang E-commerce Co., Ltd. (“Yunshang E-commerce”) [Member] | ||
Equity method investments: | ||
Sub total | 1,148,665 | 1,254,764 |
Zhejiang Wangxin Health Technology Co., Ltd. (“Wangxin”) [Member] | ||
Equity method investments: | ||
Sub total | 1,035,180 | |
Hangzhou Zhongfei Aerospace Health Management Co., Ltd. (“Zhongfei”) [Member] | ||
Equity method investments: | ||
Sub total | 430,750 | 470,537 |
Shanghai Zhongren Yinzhirun Investment Management Partnership (“Yinzhirun”) [Member] | ||
Equity method investments: | ||
Sub total | 287,167 | 313,691 |
Jiangxi Cheyi Tongcheng Car Networking Tech Co., Ltd.(“Cheyi”) [Member] | ||
Equity method investments: | ||
Sub total | 227,970 | 249,027 |
Chengdu Zhongfuze Management LLP(“Zhongfuze”) [Member] | ||
Equity method investments: | ||
Sub total | 71,792 | 78,423 |
Shanghai Outu Home Furnishings Co., Ltd. (“Outu”) [Member] | ||
Equity method investments: | ||
Sub total | 71,792 | 78,423 |
Zhejiang Qianshier Household Co., Ltd.(“Qianshier”) [Member] | ||
Equity method investments: | ||
Sub total | 71,792 | 78,423 |
Taizhoujia Menkou Auto Greengrocer’s Delivery Technology Co., Ltd. (“Taizhoujia”) [Member] | ||
Equity method investments: | ||
Sub total | 71,792 | 78,423 |
Zhejiang Yueteng Information Technology Co., Ltd. (“Yueteng”) [Member] | ||
Equity method investments: | ||
Sub total | 71,792 | 78,423 |
Shidong Funeng(Ruzhou) Industry Development Co., Ltd.( “Funeng”) [Member] | ||
Equity method investments: | ||
Sub total | 38,767 | 42,348 |
Dongguan Zhiduocheng Car Service Co., Ltd. (“Car Service”) [Member] | ||
Equity method investments: | ||
Sub total | $ 25,845 | $ 28,232 |
Asset Acquisition (Details)
Asset Acquisition (Details) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2022 USD ($) | Jul. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
Asset Acquisition [Abstract] | |||||
Ownership percentage | 100% | 100% | |||
Gross consideration | $ 5,743,331 | ¥ 40,000,000 | |||
Paid amount | $ 1,486,746 | ¥ 10,000,000 | |||
Unpaid consideration | $ 4,307,499 | ¥ 30,000,000 | |||
Consideration payable current | 582,381 | ||||
Consideration payable noncurrent | 3,358,906 | ||||
Interest expense | $ 71,272 |
Asset Acquisition (Details) - S
Asset Acquisition (Details) - Schedule of purchase prices of the assets | Dec. 31, 2022 USD ($) |
Schedule Of Purchase Prices Of The Assets Abstract | |
Land use rights | $ 3,654,545 |
Plant, property and equipment – buildings | 1,853,556 |
Total assets acquired | 5,508,101 |
Deferred tax liabilities | (199,813) |
Net assets acquired | $ 5,308,288 |
Deferred Government Subsidy (De
Deferred Government Subsidy (Details) - 12 months ended Dec. 31, 2022 | CNY (¥) | USD ($) |
Deferred Government Subsidy (Details) [Line Items] | ||
Government subsidy | ¥ 20,000,000 | |
Deferred government subsidy (in Dollars) | $ | $ 2,871,665 | |
GMB BJ planned [Member] | ||
Deferred Government Subsidy (Details) [Line Items] | ||
Future incremental costs | ¥ 21,926,900 |
Long Term Payable (Details)
Long Term Payable (Details) | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Nov. 04, 2022 USD ($) | Nov. 04, 2022 CNY (¥) | Sep. 22, 2022 USD ($) | Sep. 22, 2022 CNY (¥) | |
Long Term Payable (Details) [Line Items] | |||||||
Loan amount | $ 2,871,665 | ¥ 20,000,000 | |||||
Convertible Notes Payable, Current | 11.98 | ||||||
Repaid amount | $ 887,788 | ||||||
Outstanding long term facility | $ 5,743,331 | ¥ 40,000,000 | |||||
Far East [Member] | |||||||
Long Term Payable (Details) [Line Items] | |||||||
Loan amount | $ 5,743,331 | ¥ 40,000,000 | |||||
Repaid amount | 338,608 | ¥ 2,277,510 | |||||
Outstanding balance | 2,594,415 | ||||||
Current portion | 1,984,684 | ||||||
Non-current portion | 609,731 | ||||||
Outstanding long term facility | 5,488,275 | ¥ 38,223,638 | |||||
Ronghe [Member] | |||||||
Long Term Payable (Details) [Line Items] | |||||||
Repaid amount | 549,181 | ¥ 3,693,843 | |||||
Outstanding balance | 5,191,056 | ||||||
Current portion | 1,721,944 | ||||||
Non-current portion | 3,469,112 | ||||||
Outstanding long term facility | $ 6,880,180 | ¥ 47,917,699 | |||||
Interest rate | 1.55% | 1.55% |
Long Term Payable (Details) - S
Long Term Payable (Details) - Schedule of loans payable represented the financial liabilities amount due to financial lease - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Long term payables: | ||
Long term payables | $ 3,019,281 | $ 5,381,441 |
Total | 7,785,471 | |
Current portion | 3,706,628 | |
Non-current portion | 4,078,843 | |
Far East International Financial Leasing Co., Ltd. (“Far East”) [Member] | ||
Long term payables: | ||
Long term payables | 2,594,415 | |
China Power Investment Ronghe Financial Leasing Co., Ltd. (“Ronghe”) [Member] | ||
Long term payables: | ||
Long term payables | $ 5,191,056 |
Taxes (Details)
Taxes (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jan. 17, 2019 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes (Details) [Line Items] | ||||
Description of income tax | The applicable VAT rate is 6% for general taxpayers and 3% for small-scale taxpayer. | |||
Statutory income tax rate, percentage | 5% | 2.50% | ||
Preferential tax rate | 15% | |||
Description of income tax law | Therefore, SDH is eligible to enjoy a preferential tax rate of 15% from 2017 to 2023 to the extent it has taxable income under the EIT Law. | |||
Annual taxable income description | the annual taxable income up to RMB 1 million (inclusive) is subject to an effective EIT rate of 2.5% from 1 January 2021 to 31 December 2022; where the annual taxable income exceeds RMB 1 million but does not exceed RMB 3 million (inclusive), the amount in excess of RMB 1 million is subject to an effective EIT rate of 5% from 1 January 2022 to 31 December 2024 | |||
PRC EIT rate | 25% | |||
Accumulated operating loss (in Dollars) | $ 10,130,515 | $ 4,745,479 | ||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Rate of income tax, description | From year of assessment of 2019/2020 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. | |||
China [Member] | ||||
Taxes (Details) [Line Items] | ||||
Statutory income tax rate, percentage | 25% |
Taxes (Details) - Schedule inco
Taxes (Details) - Schedule income tax (benefit) provision - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred | |||
Total | $ 808,970 | $ (236,581) | $ 3,054,983 |
China [Member] | |||
Current | |||
Current | 1,560 | 3,367,763 | |
Deferred | |||
Deferred | $ 807,410 | $ (236,581) | $ (312,780) |
Taxes (Details) - Schedule of (
Taxes (Details) - Schedule of (Loss) profit before income taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Loss Profit Before Income Taxes Abstract | |||
PRC | $ (16,323,667) | $ (6,034,466) | $ 15,150,941 |
Others | (5,991,765) | (2,916,447) | (138,671) |
(Loss) profit before income taxes | $ (22,315,432) | $ (8,950,913) | $ 15,012,270 |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income before income taxes and the actual provision of income taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Before Income Taxes And The Actual Provision Of Income Taxes Abstract | |||
(Loss) profit before income taxes | $ (22,315,432) | $ (8,950,913) | $ 15,012,270 |
PRC EIT rate | 25% | 25% | 25% |
Income taxes computed at statutory EIT rate | $ (5,578,858) | $ (2,237,728) | $ 3,753,068 |
Reconciling items: | |||
Effect of tax holiday and preferential tax rate | 1,274,465 | 169,657 | (581,434) |
Effect of tax rates in foreign jurisdictions | 1,497,723 | 728,965 | (46,330) |
Effect of non-deductible expense | 13,917 | 4,403 | 5,202 |
Effect of non-deductible share-based compensation | 682,492 | ||
Super deduction of qualified R&D expenditures | (107,975) | (75,523) | |
Changes in valuation allowance | 2,919,231 | 1,206,097 | |
Income tax expense (benefit) | $ 808,970 | $ (236,581) | $ 3,054,983 |
Effective tax rate | (3.63%) | 2.64% | 20.35% |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax assets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net operating loss carry forwards | $ 1,934,559 | $ 978,216 |
Provision for doubtful debts | 1,439,947 | 1,092,140 |
Impairment on inventory | 398,578 | |
Impairment of long-lived assets | 163,420 | |
Deferred tax assets, gross | 3,936,504 | 2,070,356 |
Less: valuation allowance | (3,936,504) | (1,218,319) |
Deferred tax assets, net | 852,037 | |
Deferred tax liabilities | ||
Assets acquired in the asset acquisition | $ 199,583 |
Taxes (Details) - Schedule of e
Taxes (Details) - Schedule of expiration of carry forward operating loss | Dec. 31, 2022 USD ($) |
Schedule Of Expiration Of Carry Forward Operating Loss Abstract | |
2023 | $ 5,360 |
2024 | 522,780 |
2025 | 166,113 |
2026 | 12,894 |
2027 | 9,423,368 |
Total | $ 10,130,515 |
Related Party Balance and Tra_3
Related Party Balance and Transactions (Details) | 12 Months Ended | ||||||||||
Sep. 22, 2022 USD ($) | Sep. 22, 2022 CNY (¥) | Aug. 04, 2022 USD ($) | Aug. 04, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CNY (¥) | Nov. 04, 2022 USD ($) | Nov. 04, 2022 CNY (¥) | |
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Annual interest rate percentage | 4.35% | 4.35% | |||||||||
Processing service | $ 450,591 | ||||||||||
Purchased graphite material | 580,452 | ||||||||||
Service costs paid | $ 27,175 | ||||||||||
Revolving credit | $ 2,871,665 | ¥ 20,000,000 | |||||||||
Utilized amount | 1,938,374 | ¥ 13,500,000 | |||||||||
Commercial notes | $ 3,876,748 | ¥ 27,000,000 | |||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 2,871,665 | ¥ 20,000,000 | |||||||||
Obtained credit amount | $ 5,743,331 | ¥ 40,000,000 | |||||||||
Assets and equity ownership percent | 100% | 100% | |||||||||
Gross consideration | $ 5,743,331 | ¥ 40,000,000 | |||||||||
Paid consideration | 1,486,746 | 10,000,000 | |||||||||
Unpaid consideration | $ 4,307,499 | ¥ 30,000,000 | |||||||||
Vice Chairman [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 7.49% | 7.49% | |||||||||
Shanghai Hui Yang Investment Co [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 9.6451% | 9.6451% | |||||||||
Mr. Sousheng Guo [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 3% | 3% | |||||||||
Sold amount | $ 205 | ||||||||||
Mr. Chenming Qi [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 3% | 3% | |||||||||
Ms. Jing Ji [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 46% | 46% | |||||||||
Sunrise Guizhou [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 9.6451% | 9.6451% | |||||||||
Guizhou Yilong [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Shareholder equity, percentage | 3.0864% | 3.0864% | |||||||||
Zhuhai Investment [Member] | |||||||||||
Related Party Balance and Transactions (Details) [Line Items] | |||||||||||
Rental fee | $ 118,475 | $ 103,411 | $ 96,695 | ||||||||
Sold amount | $ 666 |
Related Party Balance and Tra_4
Related Party Balance and Transactions (Details) - Schedule of balances of amount due from related parties - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Due from related parties | |||
Due from related parties | $ 400,022 | $ 65,278 | |
Bally [Member] | |||
Due from related parties | |||
Due from related parties | 5,168 | 5,168 | |
Zhuhai Investment [Member] | |||
Due from related parties | |||
Due from related parties | 25,534 | ||
Mr. Xuanming Wang [Member] | |||
Due from related parties | |||
Due from related parties | 20,102 | 26,664 | |
Mr. Haiwei Zuo [Member] | |||
Due from related parties | |||
Due from related parties | 7,912 | ||
Mr. Wenwu Zhang [Member] | |||
Due from related parties | |||
Due from related parties | [1] | 337,420 | |
Shidong (Suzhou) Investment Co., Ltd.[Member] | |||
Due from related parties | |||
Due from related parties | $ 37,332 | ||
[1] The balance as of December 31, 2022 represented the prepaid acquisition consideration to purchase Mr. Wenwu Zhang’s equity in Haicheng Shenhe. See Note 7. |
Related Party Balance and Tra_5
Related Party Balance and Transactions (Details) - Schedule of due to related parties - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | $ 885,150 | ||
Mr. Haiping Hu [Member] | |||
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | 2,872 | ||
Mr. Chenming Qi [Member] | |||
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | 9,189 | ||
Ms. Jing Ji [Member] | |||
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | 19,923 | ||
Shanghai HuiYang Investment Co. [Member] | |||
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | [1] | 738,128 | |
Haicheng Shenhe [Member] | |||
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | 50,395 | ||
Zhuhai Investment [Member] | |||
Related Party Balance and Transactions (Details) - Schedule of due to related parties [Line Items] | |||
Due to related parties | $ 64,643 | ||
[1] The balance as of December 31, 2022 represented the loans from the related party, with the annual interest rate of 4.35% and was initially due on August 13, 2022 and extended to December 31, 2023. |
Related Party Balance and Tra_6
Related Party Balance and Transactions (Details) - Schedule of balances of deferred revenue of related parties - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Related Party Balance and Transactions (Details) - Schedule of balances of deferred revenue of related parties [Line Items] | |||
Deferred revenue of related parties | $ 347,471 | ||
Shanghai Hui Yang Investment Co.[Member] | |||
Related Party Balance and Transactions (Details) - Schedule of balances of deferred revenue of related parties [Line Items] | |||
Deferred revenue of related parties | [1] | $ 347,471 | |
[1] The balance as of December 31, 2022 represented the advance from the related party for tailored services. |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||
Aug. 26, 2022 | Nov. 30, 2021 | Sep. 30, 2021 | Feb. 11, 2021 | Apr. 24, 2020 | Apr. 02, 2020 | Aug. 08, 2019 | Feb. 22, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 03, 2020 | |
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, authorized (in Shares) | 500,000,000 | 500,000,000 | ||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||||||||||
First reverse stock split, description | On April 24, 2020, the shareholders of the Company unanimously authorize another one-for-0.68 reverse stock split of the Company’s issued and outstanding ordinary shares (the “Second Reverse Stock Split”), which became effective on April 24, 2020. | On April 2, 2020, the shareholders of the Company unanimously authorize a one-for-0.88 reverse stock split of the Company’s outstanding and issued ordinary shares (the “First Reverse Stock Split”), which became effective on April 3, 2020. | ||||||||||
Ordinary shares issued (in Shares) | 24,640,000 | 3,679,200 | 28,000,000 | |||||||||
Ordinary shares outstanding (in Shares) | 24,640,000 | 28,000,000 | ||||||||||
Ordinary shares reduced (in Shares) | 16,800,000 | 24,640,000 | ||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||||||||||
Share-based compensation expenses | $ 2,729,969 | |||||||||||
Granted restricted share (in Shares) | 3,334,200 | |||||||||||
Restricted share percentage | 25% | |||||||||||
Nonvested percentage | 75% | |||||||||||
Vested term | 3 years | |||||||||||
Restricted share, par value (in Dollars per share) | $ 2 | |||||||||||
Total share-based compensation | $ 6,668,400 | |||||||||||
Service period term | 3 years | |||||||||||
Weighted average grant date fair value (in Dollars per share) | $ 2 | |||||||||||
Total fair value of restricted | $ 1,667,100 | |||||||||||
Share-based compensation expenses to restricted share | 2,729,969 | |||||||||||
Unrecognized compensation expenses | $ 3,938,431 | |||||||||||
Term of weighted average | 1 year 9 months | |||||||||||
Equity interest, percentage | 61.50% | |||||||||||
Shareholders capital contributions | $ 41,826,941 | 3,332,622 | ||||||||||
Statutory reserves, percentage | 50% | |||||||||||
Statutory reserves | $ 2,477,940 | |||||||||||
Statutory reserves | 2,477,940 | |||||||||||
Share capital amount | $ 22,710,147 | |||||||||||
Osiris International Cayman Limited [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Price per share (in Dollars per share) | $ 0.0001 | |||||||||||
Jiagui Haifeng [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Equity interest, percentage | 51% | |||||||||||
Mr. Lifeng Wang [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Equity interest, percentage | 49% | |||||||||||
IPO [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary share issued (in Shares) | 1,008,000 | |||||||||||
Price per share (in Dollars per share) | $ 4 | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||||||||||
Gross proceeds | $ 4,032,000 | |||||||||||
Net proceeding | $ 27,504,639 | |||||||||||
IPO [Member] | Ordinary Shares [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, authorized (in Shares) | 6,720,000 | |||||||||||
Price per share (in Dollars per share) | $ 4 | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||||||||||
Gross proceeds | $ 26,880,000 | |||||||||||
Statutory reserves [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Statutory reserves | $ 2,473,801 | |||||||||||
GIOP [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares, authorized (in Shares) | 500,000,000 | |||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | |||||||||||
Ordinary share issued (in Shares) | 27,000,000 | 999,999 | ||||||||||
Price per share (in Dollars per share) | $ 0.0001 | |||||||||||
Total consideration | $ 2,800 | |||||||||||
Statutory reserves [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
After-tax profits percentage | 10% | |||||||||||
Statutory reserves, percentage | 50% | 50% | ||||||||||
EPOW BJ [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Equity interest, percentage | 75% | |||||||||||
Yunqianyi [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Equity interest, percentage | 25% | |||||||||||
Shidong Cloud [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Capital contributions | $ 52,863 | |||||||||||
Shareholders capital contributions | 78,851 | |||||||||||
Sunrise Guizhou [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Shareholders capital contributions | $ 10,759,335 | $ 9,099,878 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - Schedule of share-based compensation expenses - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Share-Based Compensation Expenses [Abstract] | |||
Cost of revenues | $ 8,188 | ||
Selling expenses | 39,301 | ||
General and administrative expenses | 2,674,292 | ||
Research and development expenses | 8,188 | ||
Total | $ 2,729,969 |
Shareholders_ Equity (Details_2
Shareholders’ Equity (Details) - Schedule of restricted shares units | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Schedule of non-controlling interest [Abstract] | |
Number of restricted share units outstanding, beginning balance | |
Weighted average grant date fair value, beginning balance (in Dollars per share) | $ / shares | |
Aggregate intrinsic value, beginning balance (in Dollars) | $ | |
Number of restricted share units outstanding, Granted | 3,334,200 |
Weighted average grant date fair value, Granted (in Dollars per share) | $ / shares | $ 2 |
Aggregate intrinsic value, Granted (in Dollars) | $ | |
Number of restricted share units outstanding, Vested | (833,550) |
Weighted average grant date fair value, Vested | 2 |
Aggregate intrinsic value, Vested (in Dollars) | $ | |
Number of restricted share units outstanding, ending balance | 2,500,650 |
Weighted average grant date fair value, ending balance (in Dollars per share) | $ / shares | $ 2 |
Aggregate intrinsic value, ending balance (in Dollars) | $ | $ 6,826,775 |
Shareholders_ Equity (Details_3
Shareholders’ Equity (Details) - Schedule of non-controlling interest - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of non-controlling interest [Abstract] | ||
Total | $ 42,239,392 | $ 3,122,250 |
GMB (Beijing) [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | 4,313 | 5,365 |
GMB Culture [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | 2,997 | 25,613 |
Jiagui Haifeng [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | (710) | (13) |
Shidong Trading [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | (35) | |
GMB Consulting [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | 13,270 | 14,477 |
Shidong Cloud [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | 42,389 | |
Sunrise Guxian [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | (39,323) | |
GMB Technology [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | (186,539) | (185,377) |
Sunrise Guizhou [Member] | ||
Schedule of non-controlling interest [Abstract] | ||
Total | $ 42,402,995 | $ 3,262,220 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating segment | 2 |
Reportable segment | 2 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenue by major revenue - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Major Customer [Line Items] | |||
Cost of revenues | $ 39,476,046 | $ 3,886,654 | $ 2,980,216 |
Gross (loss) profit | (1,350,378) | 3,522,618 | 20,200,868 |
Graphite anode business [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 37,580,677 | ||
Cost of revenues | 35,586,544 | ||
Gross (loss) profit | 1,994,133 | ||
Peer-to-peer knowledge sharing and enterprise business [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 544,991 | 7,409,272 | 23,181,084 |
Cost of revenues | 3,889,502 | 3,886,654 | 2,980,216 |
Gross (loss) profit | (3,344,511) | 3,522,618 | 20,200,868 |
Member Service [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 106,724 | 498,330 | 872,629 |
Cost of revenues | 591,000 | 99,013 | 174,660 |
Gross (loss) profit | (484,276) | 399,317 | 697,969 |
Comprehensive Tailored Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 153,658 | 1,433,847 | 13,345,880 |
Cost of revenues | 294,759 | 157,563 | 340,783 |
Gross (loss) profit | (141,101) | 1,276,284 | 13,005,097 |
Sponsorship Advertising Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 1,734,390 | 6,598,527 | |
Cost of revenues | 34,041 | 255,634 | |
Gross (loss) profit | 1,700,349 | 6,342,893 | |
Consulting Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 9,645 | 1,583,583 | 416,634 |
Cost of revenues | 218,719 | 733,266 | 239,845 |
Gross (loss) profit | (209,074) | 850,317 | 176,789 |
Online Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 2,100 | 40,391 | 361,933 |
Cost of revenues | 66,403 | 798,010 | 1,076,503 |
Gross (loss) profit | (64,303) | (757,619) | (714,570) |
Other Services [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | 272,864 | 2,118,731 | 1,585,481 |
Cost of revenues | 2,718,621 | 2,064,761 | 892,791 |
Gross (loss) profit | (2,445,757) | 53,970 | 692,690 |
Revenue, net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue, net | $ 38,125,668 | $ 7,409,272 | $ 23,181,084 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Feb. 07, 2023 USD ($) | Feb. 07, 2023 CNY (¥) | Jan. 18, 2023 USD ($) | Jan. 18, 2023 CNY (¥) | Feb. 07, 2023 CNY (¥) |
Subsequent Events (Details) [Line Items] | |||||
Credit facility agreement | $ 4,307,498 | ¥ 30,000,000 | |||
Loan amount | $ 2,871,665 | ¥ 20,000,000 | |||
Prime rate plus | 2.60% | 2.60% | |||
Account receivable | $ 2,871,665 | ¥ 20,000,000 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) | Dec. 31, 2022 |
Condensed Financial Information Disclosure [Abstract] | |
Percentage of the consolidated net assets | 25% |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of parent compnay balance sheets - Parent Company [Member] - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 285,916 | $ 784,176 |
Restricted cash | 700,094 | |
Due from related parties | 5,168 | 5,168 |
Short-term investment | 3,336,256 | 5,961,605 |
Advance to suppliers | 7,694 | 13,727 |
Prepaid expenses and other current assets | 2,994,975 | 1,011,542 |
TOTAL CURRENT ASSETS | 7,330,103 | 7,776,218 |
Restricted cash | 700,060 | |
Long term prepayments and other non-current assets | 2,000,000 | |
Investment in subsidiaries and VIE | 24,714,096 | 41,438,198 |
TOTAL NON-CURRENT ASSETS | 24,714,096 | 44,138,258 |
TOTAL ASSETS | 32,044,199 | 51,914,476 |
Accrued expenses and other current liabilities | 15,550 | 211,430 |
TOTAL CURRENT LIABILITIES | 15,550 | 211,430 |
TOTAL LIABILITES | 15,550 | 211,430 |
Ordinary shares (500,000,000 shares authorized; $0.0001 par value, 24,528,000 shares issued and outstanding as of December 31, 2021; 25,361,550 shares issued and outstanding as of December 31, 2022) | 2,536 | 2,453 |
Additional paid-in capital | 34,696,702 | 31,966,816 |
Statutory reserves | 2,477,940 | 2,473,801 |
(Accumulated deficits) Retained earnings | (5,148,529) | 17,259,976 |
TOTAL EQUITY | 32,028,649 | 51,703,046 |
TOTAL LIABILITIES AND EQUITY | $ 32,044,199 | $ 51,914,476 |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of parent compnay balance sheets (Parentheticals) - Parent Company [Member] - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, issued | 25,361,550 | 24,528,000 |
Ordinary shares, outstanding | 25,361,550 | 24,528,000 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of parent compnay statements of operations and comprehensive (loss) income - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Statement of Income Captions [Line Items] | |||
REVENUES, NET | $ 73,744 | ||
COSTS OF REVENUES | 8,188 | ||
GROSS (LOSS) PROFIT | (8,188) | 73,744 | |
OPERATING EXPENSES | 3,578,664 | 1,010,536 | 50,000 |
(LOSS) PROFIT FROM OPERATIONS | (3,586,852) | (1,010,536) | 23,744 |
OTHER (EXPENSES) INCOME | (2,403,412) | (1,904,135) | 4,459 |
(LOSS) PROFIT BEFORE EQUITY IN (LOSS) EARNINGS OF SUBSIDIARIES AND VIE | (5,990,264) | (2,914,671) | 28,203 |
Equity in (loss) earnings of subsidiaries and VIE | (16,414,102) | (5,488,589) | 12,059,324 |
NET (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS | (22,404,366) | (8,403,260) | 12,087,527 |
Foreign currency translation adjustment | |||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO SUNRISE NEW ENERGY CO., LTD. ORDINARY SHAREHOLDERS | $ (22,404,366) | $ (8,403,260) | $ 12,087,527 |
Condensed Financial Informati_7
Condensed Financial Information of the Parent Company (Details) - Schedule of parent compnay statements of cash flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash used in operating activities | $ (808,226) | $ (1,015,145) | $ (52,994) |
Net cash used in investing activities | (25,825,000) | ||
Net cash provided by financing activities | 310,000 | 28,249,093 | 128,282 |
(Decrease) increase in cash and cash equivalents | (498,226) | 1,408,948 | 75,288 |
Cash, cash equivalents and restricted cash, beginning of year | 1,484,236 | 75,288 | |
Cash, cash equivalents and restricted cash, end of year | 986,010 | 1,484,236 | 75,288 |
Cash, cash equivalents and restricted cash, end of year | 986,010 | 1,484,236 | 75,288 |
Less: restricted cash | 700,094 | 700,060 | |
Cash and cash equivalents, end of year | $ 285,916 | $ 784,176 | $ 75,288 |