Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Aug. 01, 2022 | Jun. 30, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | KENONGWO GROUP US, INC. | ||
Trading Symbol | N/A | ||
Document Type | 10-K/A | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 101,882,482 | ||
Entity Public Float | $ 0 | ||
Amendment Flag | true | ||
Amendment Description | This amendment to the Company’s Annual Report on Form 10-K is being filed in order to address certain comments and concerns that the Securities and Exchange Commission has expressed regarding our subsidiary’s operations in the People’s Republic of China. | ||
Entity Central Index Key | 0001797762 | ||
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, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 333-239929 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 37-1914208 | ||
Entity Address, Address Line One | Yangjia Group | ||
Entity Address, Address Line Two | Xiaobu Town | ||
Entity Address, Address Line Three | Yuanzhou District | ||
Entity Address, City or Town | Yichun City | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 336000 | ||
City Area Code | +86-400 | ||
Local Phone Number | -915-2178 | ||
Title of 12(b) Security | N/A | ||
Security Exchange Name | NONE | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | Assentsure PAC | ||
Auditor Firm ID | 6783 | ||
Auditor Location | Singapore |
Audited Consolidated Balance Sh
Audited Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 9,533 | $ 6,041 |
Accounts receivable, net | 166,293 | 184,240 |
Other receivables, net | 164,354 | 56,384 |
Inventories | 271,674 | 150,791 |
Advances and prepayments to suppliers | 152,750 | 231,369 |
Total Current Assets | 764,604 | 628,825 |
Investment | ||
Plant and equipment, net | 2,099,684 | 289,864 |
Construction in progress, net | 94,892 | 614,170 |
Intangible assets, net | 52,505 | 58,428 |
Total Assets | 3,011,685 | 1,591,287 |
Accounts payable and accrued payables | 1,453,700 | 256,842 |
Taxes payable | 986 | |
Advances from customers | 78 | 77 |
Due to related parties | 3,070,210 | 1,857,690 |
Total Current Liabilities | 4,524,974 | 2,114,609 |
Convertible notes, net | ||
Long-term loans | 470,537 | 30,639 |
Total Liabilities | 4,995,511 | 2,145,248 |
Common Stock, $0.0001 par value, 110,000,000 shares authorized; 1,882,482shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 188 | 188 |
Paid in capital | 494,058 | 494,058 |
Accumulated deficit | (2,436,957) | (1,035,549) |
Accumulated other comprehensive income (loss) | (41,115) | (12,658) |
Total Stockholders’ Equity | (1,983,826) | (553,961) |
Total Liabilities and Stockholders’ Equity | $ 3,011,685 | $ 1,591,287 |
Audited Consolidated Balance _2
Audited Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 1,882,482 | 1,882,482 |
Common stock, shares outstanding | 1,882,482 | 1,882,482 |
Audited Consolidated Statements
Audited Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Revenue | $ 542,845 | $ 507,529 |
Cost of revenues | 954,310 | 528,244 |
Gross profit | (411,465) | (20,715) |
Operating expenses | ||
Selling and marketing expenses | 302,156 | 247,230 |
General and administrative expenses | 672,340 | 587,913 |
Total operating expenses | 974,496 | 835,143 |
Loss from operations | (1,385,961) | (855,858) |
Interest income | ||
Interest expenses | (29,719) | (3,333) |
Other income | 21,835 | 57,299 |
Other expenses | (7,563) | (32,882) |
Total other (expenses) income | (15,447) | 21,084 |
Loss before income taxes | (1,401,408) | (834,774) |
Provision for income taxes | ||
Net loss | (1,401,408) | (834,774) |
Foreign currency translation adjustment | (28,457) | 2,856 |
Comprehensive (loss) | $ (1,429,865) | $ (831,918) |
Loss per share – Basic and diluted (in Dollars per share) | $ (0.85) | $ (0.51) |
Basic and diluted weighted average shares outstanding (in Shares) | 1,644,711 | 1,644,711 |
Audited Consolidated Statemen_2
Audited Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock | Paid-in Capital | Subscription Receivable | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2019 | $ 140 | $ 311,201 | $ (200,775) | $ (15,514) | $ 95,052 | |
Balance (in Shares) at Dec. 31, 2019 | 1,403,000 | |||||
Recognition of beneficial conversation feature | $ 29 | 29 | ||||
Recognition of beneficial conversation feature (in Shares) | 288,789 | |||||
Shares issued for cash | $ 19 | 182,857 | 182,876 | |||
Shares issued for cash (in Shares) | 190,693 | |||||
Net loss | (834,774) | (834,774) | ||||
Foreign currency translation adjustment | 2,856 | 2,856 | ||||
Balance at Dec. 31, 2020 | $ 188 | 494,058 | (1,035,549) | (12,658) | (553,961) | |
Balance (in Shares) at Dec. 31, 2020 | 1,882,482 | |||||
Net loss | (1,401,408) | (1,401,408) | ||||
Foreign currency translation adjustment | (28,457) | (28,457) | ||||
Balance at Dec. 31, 2021 | $ 188 | $ 494,058 | $ (2,436,957) | $ (41,115) | $ (1,983,826) | |
Balance (in Shares) at Dec. 31, 2021 | 1,882,482 |
Audited Consolidated Statemen_3
Audited Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) | $ (1,401,408) | $ (834,774) |
Depreciation and amortization | 75,023 | 36,592 |
Bad debt expenses | 157,495 | |
Conversion of convertible bond | (14,006) | |
Loss from disposal of investment | 28,534 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,947 | (99,084) |
Other receivables | (107,970) | (28,314) |
Inventories | (120,883) | 121,744 |
Advances and prepayments | 78,619 | (200,950) |
Accounts and other payables and accruals | 1,197,844 | 29,834 |
Advances from customers | (623) | |
Net cash (used in) provided by operating activities | (260,828) | (803,552) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in plant and equipment | (1,319,101) | (592,877) |
Intangible assets | (1,069) | |
Proceeds from disposal of equipment | 1,470 | |
Net cash used in investing activities | (1,318,700) | (592,877) |
Proceeds from related party | 1,210,725 | 1,063,151 |
Repayments of related party loan | (54,251) | |
Long-term loans | 465,008 | 14,493 |
Repayment of loans | (31,001) | |
Proceeds from issuance of common stocks | 186,048 | |
Net cash provided by financing activities | 1,590,481 | 1,263,692 |
EFFECT OF EXCHANGE RATE ON CASH | (7,461) | 5,528 |
NET INCREASE IN CASH | 3,492 | (127,209) |
CASH, BEGINNING OF PERIOD | 6,041 | 133,250 |
CASH, END OF PERIOD | 9,533 | 6,041 |
Cash paid during the period for: | ||
Cash paid for interest expense, net of capitalized interest | 29,719 | 3,333 |
Cash paid for income tax | ||
Issuance of common stock upon conversion of convertible bond | $ 104,273 |
Organization, Nature of Operati
Organization, Nature of Operations and Going Concern | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION, NATURE OF OPERATIONS AND GOING CONCERN | NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS AND GOING CONCERN Kenongwo Group US, Inc. (“Kenongwo US” or the “Company”) is a holding company incorporated in the State of Nevada on October 17, 2018. On October 17, 2018, the Company issued 30,000 shares of the common stock at the par value per share for a total purchase price of $3 to Mr. Erh-ping Pi. On October 20, 2018, the Company issued 14,000,000 shares of the common stock at the par value per share for a total purchase price of $1,400 to its director and chief executive officer Mr. Jianjun Zhong. On May 15, 2017, Jiangxi Kenongwo Technology Co., Ltd. (“Jiangxi Kenongwo”) was formed in the PRC. It is engaged in researching, developing, manufacturing and selling bamboo charcoal biomass organic fertilizers, amino acid water-soluble fertilizers, selenium-rich foliage fertilizers and other types of fertilizers in the People’s Republic of China (the “PRC”). On January 1, 2019, the Company acquired all the issued and outstanding capital stock of Jiangxi Kenongwo pursuant to certain share transfer agreements entered into with Xiaoming Zhang and Yuhua Zhang, the two former shareholders of Jiangxi Kenongwo. The share transfer was completed on January 9, 2019 as evidenced by a business license issued by Administrative Bureau in Yichun City Jiangxi Province reflecting the sole foreign ownership. As a result, Jiangxi Kenongwo became the Company’s wholly owned subsidiary. In accordance to a stock entrustment agreement (the “Stock Entrustment Agreement”), Xiaoming Zhang and Yuhua Zhang held Jiangxi Kenongwo on behalf of Mr. Jianjun Zhong. Under the Stock Entrustment Agreement, Mr. Jianjun Zhong was the controlling beneficial owner of Jiangxi Kenongwo prior to the acquisition on January 1, 2019. Accordingly, the Company and Jiangxi Kenongwo were under common control prior to the acquisition; therefore, the transaction has been accounted for as business combination under common control in accordance to ASC-805-50-30-5, in which the assets and liabilities of Jiangxi Kenongwo have been presented at their carrying values at the date at which the transfer occurred, which was January 1, 2019. However, the carrying values did not differ from their historical basis. No goodwill was recognized in this transaction. On September 6, 2019, the Company agreed to issue an aggregate of 1,300,000 shares of common stock in a private placement to two investors for an aggregate purchase price of $130,000. On February 26, 2020, March 2, 2020, March 4, 2020 and March 10, 2020, Jiangxi Kenongwo received the placement proceeds of $28,889 (RMB 200,000), $57,778 (RMB 400,000), $14,444 (RMB 100,000), and $28,889 (RMB 200,000), respectively, totaling $130,000 (RMB 900,000) from its two investors. On October 16, 2019, the Company agreed to issue an aggregated of 606,925 shares of the common stock to a total of 41 investors for an aggregate purchase price of $60,693 in a private placement. On January 16, 2020, Jiangxi Kenongwo, on behalf of the Company, received the proceeds of $60,693 (RMB 418,166) from the 41 investors. On October 5, 2021, the Company amended its articles of incorporation to reverse split its common stock at a rate of 1 for 10 (the “Reverse Split”). On November 1, 2021, FINRA announced the Reverse Split, which took effect at the opening of business on November 2, 2021. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern; however, the Company had accumulated deficit of $2,436,957 and $1,035,549 as of December 31, 2021 and 2020, respectively. The Company has incurred a net loss of $1,401,408 and $834,774 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the Company had a working capital deficit of $3,760,370 and $1,485,784, respectively; its net cash used in operating activities for years ended December 31, 2021 and 2020 was $260,828 and $803,552, respectively. These factors raise substantial doubt on the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management’s plan for the Company’s continued existence is dependent upon management’s ability to execute the business plan, develop the plan to generate profit; additionally, management may need to continue to rely on certain related parties to provide funding for investment, for working capital and general corporate purposes. If management is unable to execute its plan, the Company may become insolvent. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the U.S. GAAP. The basis of accounting differs from that used in the statutory accounts of the Company, which are prepared in accordance with the accounting principles of the PRC (the “PRC GAAP”). The differences between the U.S. GAAP and the PRC GAAP have been adjusted in these financial statements. The Company’s functional currency is the Chinese Renminbi (“RMB”); however, the accompanying financial statements have been translated and presented in United States Dollars (“USD”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. Control by Principal Stockholders The Company’s directors and executive officers and their affiliates or related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of our common stock. Accordingly, if our directors and executive officers and their affiliates or related parties vote their shares uniformly, they would have the ability to control the approval of most corporate actions, including increasing our authorized capital stock and the dissolution or merger of our company or the sale of our assets. Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains cash with various financial institutions. Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. Inventories Inventories, consisting of raw materials, work in process, and finished goods related to the Company’s products are stated at the lower of cost or market utilizing the weighted average method. Advances and Prepayments The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. Plant and Equipment Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and includes the costs of construction, machinery and equipment, and any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. Estimated useful lives of the Company’s assets are as follows: Useful Life Building 20 years Operating equipment 3-10 years Vehicle 3-5 years Electronic equipment 3-5 years Office equipment 3-5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Construction in progress represents direct and indirect acquisition and construction costs for plants, and costs of acquisition and installation of related equipment. Amounts classified as construction in progress and prepayments for equipment are transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Depreciation is not provided for assets classified in this account. The Company both owns and leases manufacturing facilities. The Company leases a manufacturing facility to produce fertilizer products. In order to expand the Company’s production capacity, the Company invested in an additional manufacturing plant that it owns. The plant that is owned by the Company is accounted for using the significant accounting policies set forth above. The Company has adopted ASC 842 and ASC 840. Management determines that leased manufacturing facility is not required to be capitalized as a right of use asset under both ASC 842 and ASC 840 because the lease for that facility is entered into on a year to year basis. Additionally, management is not certain that it will renew its lease for that facility each year. Intangible Assets Included in the intangible assets is non-patented technology. Useful life for non-patented technology refers to the period during which economic benefits can be generated. Intangible assets are being amortized using the straight-line method over their lease terms or estimated useful life. Estimated useful lives of the Company’s intangible assets are as follows: Useful Life Non-patented technology 10 years The Company carries intangible assets at cost less accumulated amortization. In accordance with the U.S. GAAP, the Company examines the possibility of decreases in the value of intangible assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment of Long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the year ended December 31, 2021 and 2020. Advances from Customers Advances from customers consist of prepayments from customers for merchandise that had not yet been shipped. The Company will recognize the deposits as revenue as customers take delivery of the goods and title to the assets is transferred to customers in accordance with the Company’s revenue recognition policy. Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12/31/2021 12/31/2020 Period/year end RMB: US$ exchange rate 6.3757 6.5277 Period/annual average RMB: US$ exchange rate 6.4515 6.9001 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. Revenue Recognition The Company adopted ASC 606 “Revenue Recognition”, and recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company derives its revenues from the sale of fertilizer products. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. Cost of Revenues Cost of revenues consists primarily of raw materials, utility and supply costs consumed in the manufacturing process, manufacturing labor, depreciation expense and direct overhead expenses necessary to manufacture finished goods as well as warehousing and distribution costs such as inbound freight charges, shipping and handling costs, purchasing and receiving costs. Income Taxes The Company accounts for income taxes under the provisions of Section 740-10-30 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The Company is subject to the Enterprise Income Tax (“EIT”) law of the People’s Republic of China. The Company is subject to Small Low-profit Enterprises Tax in which the Company is subject to Half-reduced Enterprise Income Tax and enterprise income tax at the reduced rate of 20%, i.e. for the net profit below RMB 1,000,001 (approximately $151,181), the taxable income is 50% of the net profit multiplied by the 20% enterprise income tax rate, which result in an effective income tax rate of 10% from the full net profit, if such net profit is below RMB 1,000,001 (approximately $151,181). Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) comprised of net income (loss) and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. The Company’s comprehensive income (loss) consist of net income (loss) and unrealized gains from foreign currency translation adjustments. Fair Value of Financial Instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. Government Contribution Plan Pursuant to the applicable PRC laws and regulations, the Company is required to participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. Statutory Reserve Pursuant to the applicable PRC laws and regulations, the Company must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under the PRC GAAP at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. Recent accounting pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by the US GAAP. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We do not believe the adoption of this ASU would have a material effect on our financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. We do not believe the adoption of this ASU would have a material effect on our financial statements. In June 2016, the FASB issued an accounting pronouncement (FASB ASU 2016-13) related to the measurement of credit losses on financial instruments. This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, changes the impairment model for most financial assets and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In developing the estimate for lifetime expected credit loss, entities must incorporate historical experience, current conditions, and reasonable and supportable forecasts. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. We do not believe the adoption of this ASU would have a material effect on our financial statements. On June 20, 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), except specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. Besides, the contractual term will be able to be used instead of an expected term in the option-pricing model for nonemployee awards. The new standard was effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company has no stock compensation as of December 31, 2021 and 2020. The Company’s adoption of this guidance does not have a material impact on its financial statements. The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 – ACCOUNTS RECEIVABLE, NET Accounts receivable consist of the following: December 31, December 31, Accounts receivable $ 293,291 $ 308,281 Less: Allowance for doubtful accounts (126,998 ) (124,041 ) Total accounts receivable, net $ 166,293 $ 184,240 Movement of allowance for doubtful accounts is as follows: December 31, December 31, Beginning balance $ (124,041 ) $ - Addition (124,041 ) Exchange differences (2,957 ) - Ending balance $ (126,998 ) $ (124,041 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 4 – INVENTORIES Inventories consisted of the following as of December 31, 2021 and 2020: December 31, December 31, Raw materials $ 119,196 $ 80,986 Packing materials 14,303 8,041 Finished goods 138,175 61,764 Total, net $ 271,674 $ 150,791 |
Advances and Prepayments
Advances and Prepayments | 12 Months Ended |
Dec. 31, 2021 | |
Advances and Prepayments [Abstract] | |
ADVANCES AND PREPAYMENTS | NOTE 5 – ADVANCES AND PREPAYMENTS The advances and prepayment balance of $152,750 and $231,369 as of December 31, 2021 and 2020 mainly represents the advanced payment to the suppliers for business purpose, respectively. |
Plant and Equipment
Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Plant and Equipment Disclosure [Text Block] | |
PLANT AND EQUIPMENT | NOTE 6 – PLANT AND EQUIPMENT Plant and equipment consisted of the following as of December 31, 2021 and 2020: December 31, December 31, Building $ 1,431,968 $ 213,297 Operating equipment 677,518 106,561 Vehicle 20,590 19,002 Office equipment 105,847 28,078 2,235,923 366,938 Less: Accumulated depreciation (136,239 ) (77,074 ) 2,099,684 289,864 Construction in progress 94,892 614,170 $ 2,194,576 $ 904,034 As of December 31, 2021 and 2020, depreciation expense amounted to $66,724 and 28,510, respectively. Depreciation is not taken during the period of construction or equipment installation. Upon completion of the installation of manufacturing equipment or any construction in progress, construction in progress balances will be classified to their respective property and equipment category. The construction in progress of $94,892 and $614,170 as of December 31, 2021 and 2020 represents the investment in building a processing plant and warehouse. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 – INTANGIBLE ASSETS Intangible assets consisted of the following: December 31, December 31, 2021 2020 Non-patented technology $ 80,255 $ 77,329 Less: Accumulated amortization (27,750 ) (18,901 ) $ 52,505 $ 58,428 The Company invested in the development of a product tracking system design, detect and defend against counterfeit products. The Company’s original cost was $80,255 and $77,329 as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, amortization expenses of intangible assets were $8,299 and $8,081, respectively. |
Loan Payable
Loan Payable | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
LOAN PAYABLE | NOTE 8 – LOAN PAYABLE On January 20, 2020, the Company entered into an unsecured loan agreement with Wangqiu in the amount of $13,874, with a due date of January 19, 2022. The loan carried an annualized interest rate of 12%. The Company has not repaid any principal during the year ended December 31, 2020. As of December 31, 2020, the outstanding amount of the loan payable was $30,639. As of December 31, 2020, the Company recognized interest expenses of $3,333. The principle amount of $30,639 was paid off on March 29, 2021. On February 5, 2021, the Company entered into a new unsecured loan agreement with Yichun Village Commercial Bank in the amount of $464,389, with a due date of February 4, 2024. The loan carried an annualized interest rate of 7%. As of December 31, 2021, the outstanding amount of the loan payable was $470,537. As of December 31, 2021, the Company recognized interest expenses of $29,719. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 – RELATED PARTY TRANSACTIONS As of December 31, 2021 and 2020, the outstanding balance due to related parties was $3,070,210 and $1,857,690, respectively. As of December 31, 2021 and 2020, the outstanding balances of $2,738,029 and $1,774,109 were due to Ms. Yuhua Zhang, a shareholder of the Company. The balances were advances made to the Company for general working capital purposes. The amounts are due on demand, non-interest bearing, and unsecured. As of December 31, 2021 and 2020, the outstanding balances of $85,574 and $83,581 were due to Mr. Jianjun Zhong, the controlling shareholder, President, Treasurer and Secretary of the Company. These balances were advances made to the Company for general working capital purposes. The amounts are due on demand, non-interest bearing, and unsecured. As of December 31, 2021 and 2020, the outstanding balance due from related parties was $246,607 and $ Nil |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 10 – CONCENTRATIONS Customers Concentrations The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues as of December 31, 2021 and 2020. December 31, December 31, Customers Amount $ % Amount $ % A 82,413 15.18 - - B - - 123,641 29.74 C - - 119,843 28.82 Suppliers Concentrations The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchase as of December 31, 2021 and 2020. December 31, December 31, Suppliers Amount $ % Amount $ % A - - 54,869 25.49 B - - 22,398 10.41 Credit Risks The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the PRC, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. As of December 31, 2021 and 2020, the Company’s cash balances by geographic area were as follows: December 31, December 31, 2021 2020 United States $ 4,821 51 % $ 4,863 80 % China 4,712 49 % 1,178 20 % Total cash and cash equivalents $ 9,533 100 % $ 6,041 100 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11 – INCOME TAXES The Company’s primary operations are located in the PRC. The Company is subject to Small Low-profit Enterprises Tax in which the Company is subject to Half-reduced Enterprise Income Tax and enterprise income tax at the reduced rate of 20%, i.e. for the net profit below RMB 1,000,001 (USD 151,181), the taxable income is 50% of the net profit, multiplied by the 20% enterprise income tax rate, which result in an effective income tax rate of 10% from the full net profit, if such net profit is below RMB 1,000,001 (USD 151,181). The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the years ended December 31, 2021 and 2020: December 31, December 31, Income (Loss) attributed to PRC operations $ (1,401,366 ) $ (848,710 ) Income (Loss) attributed to State of Nevada (42 ) 13,936 ) Income (Loss) before tax (1,401,408 ) (834,774 ) PRC Statutory Tax at 20% Rate - - Effect of tax exemption granted - - Income tax $ - $ - The provision for income taxes consists of the following: December 31, December 31, Current $ - $ - Deferred - - Total $ - $ - Accounting for Uncertainty in Income Taxes The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. Therefore, the Company’s PRC entities’ tax filings results are subject to change. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s PRC entities’ tax filings, which may lead to additional tax liabilities. ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and concluded that no provision for uncertainty in income taxes was necessary for the years ended December 31, 2021 and 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of the issuance of the condensed consolidated financial statements and no subsequent event is identified. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates. |
Control by Principal Stockholders | Control by Principal Stockholders The Company’s directors and executive officers and their affiliates or related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of our common stock. Accordingly, if our directors and executive officers and their affiliates or related parties vote their shares uniformly, they would have the ability to control the approval of most corporate actions, including increasing our authorized capital stock and the dissolution or merger of our company or the sale of our assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains cash with various financial institutions. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. |
Inventories | Inventories Inventories, consisting of raw materials, work in process, and finished goods related to the Company’s products are stated at the lower of cost or market utilizing the weighted average method. |
Advances and Prepayments | Advances and Prepayments The Company makes advance payment to suppliers and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory. |
Plant and Equipment | Plant and Equipment Included in property and equipment is construction-in-progress which consisted of factory improvements and machinery pending installation and includes the costs of construction, machinery and equipment, and any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use. Estimated useful lives of the Company’s assets are as follows: Useful Life Building 20 years Operating equipment 3-10 years Vehicle 3-5 years Electronic equipment 3-5 years Office equipment 3-5 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized. Construction in progress represents direct and indirect acquisition and construction costs for plants, and costs of acquisition and installation of related equipment. Amounts classified as construction in progress and prepayments for equipment are transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Depreciation is not provided for assets classified in this account. The Company both owns and leases manufacturing facilities. The Company leases a manufacturing facility to produce fertilizer products. In order to expand the Company’s production capacity, the Company invested in an additional manufacturing plant that it owns. The plant that is owned by the Company is accounted for using the significant accounting policies set forth above. The Company has adopted ASC 842 and ASC 840. Management determines that leased manufacturing facility is not required to be capitalized as a right of use asset under both ASC 842 and ASC 840 because the lease for that facility is entered into on a year to year basis. Additionally, management is not certain that it will renew its lease for that facility each year. |
Intangible Assets | Intangible Assets Included in the intangible assets is non-patented technology. Useful life for non-patented technology refers to the period during which economic benefits can be generated. Intangible assets are being amortized using the straight-line method over their lease terms or estimated useful life. Estimated useful lives of the Company’s intangible assets are as follows: Useful Life Non-patented technology 10 years The Company carries intangible assets at cost less accumulated amortization. In accordance with the U.S. GAAP, the Company examines the possibility of decreases in the value of intangible assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the year ended December 31, 2021 and 2020. |
Advances from Customers | Advances from Customers Advances from customers consist of prepayments from customers for merchandise that had not yet been shipped. The Company will recognize the deposits as revenue as customers take delivery of the goods and title to the assets is transferred to customers in accordance with the Company’s revenue recognition policy. |
Foreign currency translation | Foreign currency translation The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. 12/31/2021 12/31/2020 Period/year end RMB: US$ exchange rate 6.3757 6.5277 Period/annual average RMB: US$ exchange rate 6.4515 6.9001 The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions. |
Revenue Recognition | Revenue Recognition The Company adopted ASC 606 “Revenue Recognition”, and recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The Company derives its revenues from the sale of fertilizer products. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. |
Revenue Recognition | Cost of Revenues Cost of revenues consists primarily of raw materials, utility and supply costs consumed in the manufacturing process, manufacturing labor, depreciation expense and direct overhead expenses necessary to manufacture finished goods as well as warehousing and distribution costs such as inbound freight charges, shipping and handling costs, purchasing and receiving costs. |
Income Taxes | Income Taxes The Company accounts for income taxes under the provisions of Section 740-10-30 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The Company is subject to the Enterprise Income Tax (“EIT”) law of the People’s Republic of China. The Company is subject to Small Low-profit Enterprises Tax in which the Company is subject to Half-reduced Enterprise Income Tax and enterprise income tax at the reduced rate of 20%, i.e. for the net profit below RMB 1,000,001 (approximately $151,181), the taxable income is 50% of the net profit multiplied by the 20% enterprise income tax rate, which result in an effective income tax rate of 10% from the full net profit, if such net profit is below RMB 1,000,001 (approximately $151,181). |
Related Parties | Related Parties Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) comprised of net income (loss) and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. The Company’s comprehensive income (loss) consist of net income (loss) and unrealized gains from foreign currency translation adjustments. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets. ● Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815. |
Government Contribution Plan | Government Contribution Plan Pursuant to the applicable PRC laws and regulations, the Company is required to participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. |
Statutory Reserve | Statutory Reserve Pursuant to the applicable PRC laws and regulations, the Company must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under the PRC GAAP at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by the US GAAP. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We do not believe the adoption of this ASU would have a material effect on our financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. We do not believe the adoption of this ASU would have a material effect on our financial statements. In June 2016, the FASB issued an accounting pronouncement (FASB ASU 2016-13) related to the measurement of credit losses on financial instruments. This pronouncement, along with subsequent ASUs issued to clarify certain provisions of ASU 2016-13, changes the impairment model for most financial assets and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In developing the estimate for lifetime expected credit loss, entities must incorporate historical experience, current conditions, and reasonable and supportable forecasts. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. We do not believe the adoption of this ASU would have a material effect on our financial statements. On June 20, 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees. Under ASU No. 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), except specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. Besides, the contractual term will be able to be used instead of an expected term in the option-pricing model for nonemployee awards. The new standard was effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be applied to all new awards granted after the date of adoption. The Company has no stock compensation as of December 31, 2021 and 2020. The Company’s adoption of this guidance does not have a material impact on its financial statements. The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Useful Life Building 20 years Operating equipment 3-10 years Vehicle 3-5 years Electronic equipment 3-5 years Office equipment 3-5 years |
Schedule of estimated useful lives of the Company’s intangible assets | Useful Life Non-patented technology 10 years |
Schedule of average exchange rate | 12/31/2021 12/31/2020 Period/year end RMB: US$ exchange rate 6.3757 6.5277 Period/annual average RMB: US$ exchange rate 6.4515 6.9001 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Accounts receivable $ 293,291 $ 308,281 Less: Allowance for doubtful accounts (126,998 ) (124,041 ) Total accounts receivable, net $ 166,293 $ 184,240 |
Schedule movement of allowance for doubtful accounts | December 31, December 31, Beginning balance $ (124,041 ) $ - Addition (124,041 ) Exchange differences (2,957 ) - Ending balance $ (126,998 ) $ (124,041 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, Raw materials $ 119,196 $ 80,986 Packing materials 14,303 8,041 Finished goods 138,175 61,764 Total, net $ 271,674 $ 150,791 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of plant and equipment | December 31, December 31, Building $ 1,431,968 $ 213,297 Operating equipment 677,518 106,561 Vehicle 20,590 19,002 Office equipment 105,847 28,078 2,235,923 366,938 Less: Accumulated depreciation (136,239 ) (77,074 ) 2,099,684 289,864 Construction in progress 94,892 614,170 $ 2,194,576 $ 904,034 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, December 31, 2021 2020 Non-patented technology $ 80,255 $ 77,329 Less: Accumulated amortization (27,750 ) (18,901 ) $ 52,505 $ 58,428 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of customer that accounted | December 31, December 31, Customers Amount $ % Amount $ % A 82,413 15.18 - - B - - 123,641 29.74 C - - 119,843 28.82 |
Schedule of supplier that accounted | December 31, December 31, Suppliers Amount $ % Amount $ % A - - 54,869 25.49 B - - 22,398 10.41 |
Schedule of cash balances by geographic area | December 31, December 31, 2021 2020 United States $ 4,821 51 % $ 4,863 80 % China 4,712 49 % 1,178 20 % Total cash and cash equivalents $ 9,533 100 % $ 6,041 100 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of the reconciliation of the differences between the statutory and effective tax expenses | December 31, December 31, Income (Loss) attributed to PRC operations $ (1,401,366 ) $ (848,710 ) Income (Loss) attributed to State of Nevada (42 ) 13,936 ) Income (Loss) before tax (1,401,408 ) (834,774 ) PRC Statutory Tax at 20% Rate - - Effect of tax exemption granted - - Income tax $ - $ - |
Schedule of the provision for income taxes | December 31, December 31, Current $ - $ - Deferred - - Total $ - $ - |
Organization, Nature of Opera_2
Organization, Nature of Operations and Going Concern (Details) | 12 Months Ended | ||||||||||||||||
Mar. 10, 2020 USD ($) | Mar. 10, 2020 CNY (¥) | Mar. 04, 2020 USD ($) | Mar. 04, 2020 CNY (¥) | Mar. 02, 2020 USD ($) | Mar. 02, 2020 CNY (¥) | Feb. 26, 2020 USD ($) | Feb. 26, 2020 CNY (¥) | Jan. 16, 2020 USD ($) | Jan. 16, 2020 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Oct. 16, 2019 $ / shares shares | Sep. 06, 2019 $ / shares shares | Oct. 20, 2018 $ / shares shares | Oct. 17, 2018 $ / shares shares | |
Organization, Nature of Operations and Going Concern (Details) [Line Items] | |||||||||||||||||
Proceeds from placement received | $ 130,000 | ¥ 900,000 | |||||||||||||||
Accumulated deficit | $ | 2,436,957 | $ 1,035,549 | |||||||||||||||
Incurred a net loss | $ | 1,401,408 | 834,774 | |||||||||||||||
Working capital deficit | $ | 3,760,370 | 1,485,784 | |||||||||||||||
Net cash used in operating activities | $ | $ 260,828 | $ 803,552 | |||||||||||||||
Private Placement [Member] | |||||||||||||||||
Organization, Nature of Operations and Going Concern (Details) [Line Items] | |||||||||||||||||
Common stock, shares issued (in Shares) | shares | 1,300,000 | ||||||||||||||||
Common stock shares issued, price per share (in Dollars per share) | $ / shares | $ 130,000 | ||||||||||||||||
Mr. Erh-ping Pi [Member] | |||||||||||||||||
Organization, Nature of Operations and Going Concern (Details) [Line Items] | |||||||||||||||||
Common stock, shares issued (in Shares) | shares | 30,000 | ||||||||||||||||
Common stock shares issued, price per share (in Dollars per share) | $ / shares | $ 3 | ||||||||||||||||
Mr. Jianjun Zhong [Member] | |||||||||||||||||
Organization, Nature of Operations and Going Concern (Details) [Line Items] | |||||||||||||||||
Common stock, shares issued (in Shares) | shares | 14,000,000 | ||||||||||||||||
Common stock shares issued, price per share (in Dollars per share) | $ / shares | $ 1,400 | ||||||||||||||||
Jiangxi Kenongwo [Member] | |||||||||||||||||
Organization, Nature of Operations and Going Concern (Details) [Line Items] | |||||||||||||||||
Common stock, shares issued (in Shares) | shares | 606,925 | ||||||||||||||||
Common stock shares issued, price per share (in Dollars per share) | $ / shares | $ 60,693 | ||||||||||||||||
Proceeds from placement received | $ 28,889 | ¥ 200,000 | $ 14,444 | ¥ 100,000 | $ 57,778 | ¥ 400,000 | $ 28,889 | ¥ 200,000 | $ 60,693 | ¥ 418,166 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - 12 months ended Dec. 31, 2021 | USD ($) | CNY (¥) |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Income tax reduction percentage | 20% | 20% |
Net profit | $ 151,181 | ¥ 1,000,001 |
Taxable income percentage | 50% | 50% |
Enterprise income tax rate percentage | 20% | 20% |
Effective income tax rate percentage | 10% | 10% |
PRC [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Statutory income tax rate, percentage | 10% | 10% |
Registered capital, percentage | 50% | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2021 | |
Building [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Operating equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Operating equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Vehicle [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Vehicle [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Electronic equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Office equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of the Company’s intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Non-patented technology [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of the Company’s intangible assets [Line Items] | |
Non-patented technology | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of average exchange rate | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Average Exchange Rate Abstract | ||
Period/year end RMB: US$ exchange rate | 6.3757 | 6.5277 |
Period/annual average RMB: US$ exchange rate | 6.4515 | 6.9001 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Accounts Receivable Abstract | ||
Accounts receivable | $ 293,291 | $ 308,281 |
Less: Allowance for doubtful accounts | (126,998) | (124,041) |
Total accounts receivable, net | $ 166,293 | $ 184,240 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule movement of allowance for doubtful accounts - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Movement Of Allowance For Doubtful Accounts Abstract | ||
Beginning balance | $ (124,041) | |
Addition | (124,041) | |
Exchange differences | (2,957) | |
Ending balance | $ (126,998) | $ (124,041) |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Inventories Abstract | ||
Raw materials | $ 119,196 | $ 80,986 |
Packing materials | 14,303 | 8,041 |
Finished goods | 138,175 | 61,764 |
Total, net | $ 271,674 | $ 150,791 |
Advances and Prepayments (Detai
Advances and Prepayments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Advances and Prepayments [Abstract] | ||
Proceeds from collection of advance to affiliate | $ 152,750 | $ 231,369 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 66,724 | $ 28,510 |
Construction in Progress, Gross | $ 94,892 | $ 614,170 |
Plant and Equipment (Details) -
Plant and Equipment (Details) - Schedule of plant and equipment - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,235,923 | $ 366,938 |
Less: Accumulated depreciation | (136,239) | (77,074) |
Property and equipment, net | 2,099,684 | 289,864 |
Construction in progress | 94,892 | 614,170 |
Property and equipment, Total | 2,194,576 | 904,034 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,431,968 | 213,297 |
Operating equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 677,518 | 106,561 |
Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20,590 | 19,002 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 105,847 | $ 28,078 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Original cost | $ 80,255 | $ 77,329 |
Amortization expenses of intangible assets | $ 8,299 | $ 8,081 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Intangible Assets Abstract | ||
Non-patented technology | $ 80,255 | $ 77,329 |
Less: Accumulated amortization | (27,750) | (18,901) |
Total | $ 52,505 | $ 58,428 |
Loan Payable (Details)
Loan Payable (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 05, 2021 | Jan. 20, 2020 | Dec. 31, 2021 | Mar. 29, 2021 | Dec. 31, 2020 | |
Loan Payable (Details) [Line Items] | |||||
Unsecured loan agreement | $ 464,389 | ||||
Due date | Feb. 04, 2024 | ||||
Annualized interest rate | 7% | ||||
Loan payable | $ 470,537 | $ 30,639 | |||
Interest expenses | $ 3,333 | ||||
Principle amount | $ 30,639 | ||||
Interest expenses | $ 29,719 | ||||
Wangqiu [Member] | |||||
Loan Payable (Details) [Line Items] | |||||
Unsecured loan agreement | $ 13,874 | ||||
Due date | Jan. 19, 2022 | ||||
Annualized interest rate | 12% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transactions (Details) [Line Items] | ||
Due to related parties | $ 3,070,210 | $ 1,857,690 |
Due to related parties | 246,607 | |
Ms. Yuhua Zhang [Member] | ||
Related Party Transactions (Details) [Line Items] | ||
Due to related parties | 2,738,029 | 1,774,109 |
Mr. Jianjun Zhong [Member] | ||
Related Party Transactions (Details) [Line Items] | ||
Due to related parties | $ 85,574 | $ 83,581 |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Customer [Member] | Revenues [Member] | ||
Concentrations (Details) [Line Items] | ||
Concentration Risk Percentage | 10% | 10% |
Suppliers [Member] | Purchase [Member] | ||
Concentrations (Details) [Line Items] | ||
Concentration Risk Percentage | 10% | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of customer that accounted - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Customers A [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 82,413 | |
Concentrations risks, percentage | 15.18% | |
Customers B [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 123,641 | |
Concentrations risks, percentage | 29.74% | |
Customers C [Member] | ||
Concentration Risk [Line Items] | ||
Revenues | $ 119,843 | |
Concentrations risks, percentage | 28.82% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of supplier that accounted - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplier A [Member] | ||
Concentrations (Details) - Schedule of supplier that accounted [Line Items] | ||
Purchases | $ 54,869 | |
Concentrations risks, percentage | 25.49% | |
Supplier B [Member] | ||
Concentrations (Details) - Schedule of supplier that accounted [Line Items] | ||
Purchases | $ 22,398 | |
Concentrations risks, percentage | 10.41% |
Concentrations (Details) - Sc_3
Concentrations (Details) - Schedule of cash balances by geographic area - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | $ 9,533 | $ 6,041 |
Concentrations risks, percentage | 100% | 100% |
United States [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | $ 4,821 | $ 4,863 |
Concentrations risks, percentage | 51% | 80% |
China [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Total cash and cash equivalents | $ 4,712 | $ 1,178 |
Concentrations risks, percentage | 49% | 20% |
Income Taxes (Details)
Income Taxes (Details) - 12 months ended Dec. 31, 2021 | USD ($) | CNY (¥) |
Income Tax Disclosure [Abstract] | ||
Enterprise income tax rate percentage | 20% | 20% |
Income tax examination, description | for the net profit below RMB 1,000,001 (USD 151,181), the taxable income is 50% of the net profit, multiplied by the 20% enterprise income tax rate, which result in an effective income tax rate of 10% from the full net profit, if such net profit is below RMB 1,000,001 (USD 151,181). | for the net profit below RMB 1,000,001 (USD 151,181), the taxable income is 50% of the net profit, multiplied by the 20% enterprise income tax rate, which result in an effective income tax rate of 10% from the full net profit, if such net profit is below RMB 1,000,001 (USD 151,181). |
Net profit | $ 151,181 | ¥ 1,000,001 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of the reconciliation of the differences between the statutory and effective tax expenses - State and Local [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes (Details) - Schedule of the reconciliation of the differences between the statutory and effective tax expenses [Line Items] | ||
Income (Loss) attributed to PRC operations | $ (1,401,366) | $ (848,710) |
Income (Loss) attributed to State of Nevada | (42) | 13,936 |
Income (Loss) before tax | (1,401,408) | (834,774) |
PRC Statutory Tax at 20% Rate | ||
Effect of tax exemption granted | ||
Income tax |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of the provision for income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of The Provision For Income Taxes Abstract | ||
Current | ||
Deferred | ||
Total |