| Summary of significant accounting policies | Note 2 – Summary of significant accounting policies Basis of presentation and principles of consolidation The accompanying consolidated financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
and have been consistently applied. The consolidated financial statements include the accounts of the Company, its subsidiaries, the VIE
and the VIE’s subsidiaries. All intercompany transactions and balances between the Company, its subsidiaries and the VIE are eliminated
upon consolidation. Consolidation of Variable
Interest Entity and its subsidiaries A VIE is an entity that either has a total equity
investment that is insufficient to finance its activities without additional subordinated financial support, or whose equity investors
lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns
of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary
of, and must consolidate, the VIE. Shanghai Jowell is deemed to have a controlling
financial interest through a series of contracture agreements and be the primary beneficiary of Shanghai Juhao because it has both of
the following characteristics:
(1) The power to direct activities at Shanghai Juhao that most significantly impact such entity’s economic performance, and
(2) The obligation to absorb losses of, and the right to receive benefits from, Shanghai Juhao that could potentially be significant to such entity. Pursuant to the contractual arrangements with
Shanghai Juhao, Shanghai Juhao shall pay service fees equal to all of its net profit after tax payments to Shanghai Jowell. Such contractual
arrangements are designed so that the Shanghai Juhao would operate for the benefit of Shanghai Jowell and ultimately, the Company. Accordingly, the accounts of the Shanghai Juhao
are consolidated into the Company’s financial statements pursuant to ASC 810-10, “Consolidation”. In addition, their
financial positions and results of operations are included in the Company’s financial statements. The carrying amount of this VIE’s
assets and liabilities before elimination of intercompany balances and transactions between the parent company, non-VIE subsidiaries,
VIE and VIE’s subsidiaries are as follows:
December 31, 2022 December 31, 2021
Current assets $ 56,443,203 $ 42,129,500
Total non-current assets $ 11,300,773 $ 12,421,137
Total assets $ 67,743,976 $ 54,550,637
Total current liabilities $ 66,032,076 $ 50,217,271
Total non-current liabilities $ 2,099,430 $ 3,993,641
For the years ended December 31,
2022 2021 2020
Revenue $ 209,981,306 $ 170,911,999 $ 96,879,173
Operating expenses $ 218,805,217 $ 174,364,008 $ 90,776,328
Net income (loss) $ (8,338,701 ) $ (2,850,415 ) $ 4,576,721
For the years ended December 31,
2022 2021 2020
Net cash provided by (used in) operating activities $ (11,849,660 ) $ (14,394,918 ) $ 7,329,182
Net cash used in investing activities $ (1,426,388 ) $ (1,987,258 ) $ (116,746 )
Net cash provided by financing activities $ 9,635,309 $ 20,555,262 $ 5,752,534
Net increase (decrease) in cash $ (4,848,767 ) $ 4,575,593 $ 13,630,301 Risks associated with the VIE structure The Company believes that the contractual arrangements
with the VIE and the shareholders of the VIE are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties
in the PRC legal system could limit the Company’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;
● prohibit or restrict the transactions under VIE Agreements 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 from public offering to finance the Company’s business and operations in China through VIE. The Company’s ability to conduct its business
may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may
not be able to consolidate the VIE in the consolidated financial statements as it may lose the ability to exert control over the VIE and
its shareholders and 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 the VIE. The Company, Jowell Tech, and Shanghai
Jowell are essentially holding companies and do not have active operations as of December 31, 2022 and 2021. The Company, its subsidiaries,
and VIE do not have any plan to distribute dividend or settle amounts owed under the VIE Agreements in the foreseeable future. The cash
transfer among the holding company, its subsidiaries and VIE is typically transferred through payment for intercompany services or intercompany
borrowing between holding company, subsidiaries and VIE. Use of estimates In preparing the consolidated financial statements in conformity with
U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses
during the reporting years. Significant items subject to such estimates and assumptions include, but not limited to, allowance for doubtful
accounts and advance to suppliers, valuation of inventories, and impairment of long-lived assets. Actual results could differ from those
estimates. Cash and cash equivalents For purposes of the statements of cash flows,
the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts
to be cash equivalents. As of December 31, 2022 and 2021, the Company had no cash equivalents. Restricted cash Restricted cash represents required cash deposit
as a part of collateral for the bank loan (see Note 10). The Company earns interest at a variable rate per month on this deposit. As of
December 31, 2022 and 2021, the Company had restricted cash of $3,000,000 and $2,999,990, respectively. Accounts receivable, net of allowance for credit losses The Company maintains an allowance for credit
losses and records the allowance for credit losses as an offset to accounts receivable. The estimated credit losses charged to the allowance
is classified as “General and administrative” in the consolidated statements of operations. The Company assesses collectability
by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business line,
service or product offerings and on an individual basis when the Company identifies specific customers with known disputes or collectability
issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due
status, the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations,
current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the
Company’s ability to collect from customers. Accounts receivable are written off after all collection efforts have ceased. Accounts
receivable represents amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied its performance obligation
and has the unconditional right to payment. As of December 31, 2022 and 2021, the allowance for credit losses for accounts receivable
was $84,400 and $103,805, respectively. For the years ended December 31, 2022, 2021 and 2020, the recognized credit losses (reversed in
collection) of ($11,631), $102,356 and $ nil Inventories Inventories consist of goods in transit and finished
goods and are stated at the lower of cost or net realizable value. The cost of inventories is calculated using the weighted average basis.
Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and
damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company
takes ownership, risks and rewards of the products purchased, and has sole discretion in establishing prices for the goods to be sold.
Write downs are recorded in cost of revenues in the Consolidated Statements of Operations and Comprehensive Income (Loss). Write down of $1,102,119, $329,639 and
$24,172 were recorded in cost of revenues in the consolidated statements of operations for the years ended December 31, 2022, 2021
and 2020, respectively. Property and equipment, net Property and equipment are stated at cost less
accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset
to its present working condition and location for its intended use. Depreciation is computed on a straight-line basis
over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows:
Useful life
Electronic equipment 5 years
Office furniture 5 years
Leasehold improvement 5 years
Vehicles 4 years Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments
which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation
of assets sold or otherwise retired are removed from the accounts and any gain or loss is included in the consolidated statements of operations
and comprehensive income (loss). Intangible assets, net Intangible assets consist primarily of customized
software systems purchased from third party vendors, used for accounting and business operation. Intangible assets are stated at cost
less accumulated amortization. Intangible assets are amortized using the straight-line method over the estimated useful economic life
of 3 years to 10 years. Impairment of long-lived assets The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated cash
flows from the use of the asset and its eventual disposition are below the asset’s carrying value, then the asset is deemed to be
impaired and written down to its fair value. There were no indicators of impairments of these assets as of December 31, 2022 and 2021. Long-term investment Equity investments without readily determinable
fair values Equity investments without readily determinable
fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus
or minus changes resulting from qualifying observable price changes in accordance with ASC Topic 321, Investments – Equity Securities. Equity method investments For an investee company over which the Company
has the ability to exercise significant influence, but does not have a controlling interest, the Company accounted for those using the
equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of
the investee between 20% and 50%. Under the equity method, the Company’s share
of the post-acquisition profits or losses of the equity investment is recognized in the consolidated statements of comprehensive loss;
and the Company’s share of post-acquisition movements in equity is recognized in equity in the consolidated balance sheets. Unrealized
gains on transactions between the Company and an entity in which it has recorded an equity investment are eliminated to the extent of
the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated
unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an entity
in which it has recorded an equity investment equals or exceeds the Company’s interest in the entity, it does not recognize further
losses, unless it has incurred obligations or made payments on behalf of the equity investee. The Company evaluates the equity method investments
for impairment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined
to be other-than-temporary. Fair value of financial instruments ASC 820 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 specifies a hierarchy of valuation
techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:
● Level
1 - inputs to the valuation methodology are quoted prices (unadjusted) 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, quoted market prices
for identical or similar assets 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 to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of
the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, short-term loan,
due to related parties, accounts payable, trade notes payable, deferred revenue, taxes payable, and accrued expenses and other current
liabilities approximate their recorded values due to their short-term maturities. Share-Based compensation The Company follows the
provisions of ASC 718, “Compensation - Stock Compensation,” which share-based compensation cost is measured at the grant date
based on the fair value of the award and is recognized as expense over the requisite service period for the entire award. Leases On January 1, 2020, the Company
adopted Accounting Standards Update (“ASU”) 2016-02, Leases (as amended by ASU 2018-01, 2018-10, 2018-11, 2018-20, and 2019-01,
collectively “ASC 842”). For all leases that were entered into prior to the effective date of ASC 842, the Company has elected
to utilize the package of practical expedients at the time of adoption, which allows the Company to (1) not reassess whether any expired
or existing contracts are or contain leases, (2) not reassess the lease classification of any expired or existing leases, and (3) not
reassess initial direct costs for any existing leases. The Company also has elected to utilize the short-term lease recognition exemption
and, for those leases that qualified, the Company did not recognize operating lease right-of-use (“ROU”) assets or operating
lease liabilities. The Company elected not to record assets and liabilities on its consolidated balance sheet for new or existing lease
arrangements with terms of 12 months or less. Operating
lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the
lease term at commencement date, adjusted by the deferred rent liabilities at the adoption date. As most of the Company’s leases
do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date
in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes
lease incentives and initial direct costs incurred. The Company’s terms may include options to extend or terminate the lease when
it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over
the lease term. See Note 14 for further discussion Revenue recognition The Company through its websites mainly www.1juhao.com
and mobile applications, engages primarily in online sale of personal care products, nutritional supplements and general merchandise products
sourced from manufacturers and distributors in China, and also offers an online marketplace that enables third-party sellers to sell their
products to the Company’s consumers. Customers place their orders for products or services online primarily through the Company’s
websites and mobile applications. Payment for the purchased products or services is generally made either before delivery or upon delivery. Consistent with the criteria of ASC 606, the Company
recognizes revenues when the Company satisfies a performance obligation by transferring a promised goods or services to a customer. Goods
or services is transferred when the customer obtains control of it, which generally occurs upon the delivery of the products to customers. In accordance with ASC 606, the Company evaluates
whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. When
the Company is a principal, that the Company obtains control of the specified goods or services before they are transferred to the customers,
the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified
goods or services transferred. When the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance
obligation for specified goods or services, revenues should be recognized in the net amount for the amount of commission which the Company
earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenue is recorded net of value-added
taxes. The Company recognizes revenue net of discounts
and return allowances when the products are delivered and title passes to customers. Significant judgement is required to estimate return
allowances. For online direct sales business with return conditions, the Company reasonably estimate the possibility of return based on
the historical experience, changes in judgments on these assumptions and estimates could materially impact the amount of net revenues
recognized. The Company generally grants customers 7 days of free return upon receiving goods according to PRC law regarding online purchased
products. As of December 31, 2022 and 2021, no return allowances were recorded. The Company primarily sells cosmetic products, nutritional supplements
and household products through online direct sales. The Company recognizes product revenues from the online direct sales on a gross basis
as the Company is a principal because it controls the promised good or service before transferring it to a customer. This control is determined
by the following indicators 1) The Company is the primary obligor in the sales transaction and responsible for fulfilling the promise
to provide the product and service. 2) The Company bears the inventory risk. The Company will first indemnify customers for product damages
and then request reimbursements from suppliers if the suppliers are determined to be responsible for the damages. 3) The Company has discretion
in establishing the prices and control over the entire transaction. For the years ended December 31, 2022, 2021 and 2020, approximately
$ nil nil nil nil Other than revenue from online direct sales, the
Company also earns service fees charged to third-party sellers for participating in the Company’s online marketplace, where the
Company generally is acting as an agent and its performance obligation is to arrange for the provision of the specified goods or services
by those third-party sellers. During the years ended December 31, 2022, 2021 and 2020, revenue from service fees were $123,208, $23,782,
and $72,664, respectively. Unearned revenue consists of payments received
or awards to customers related to unsatisfied performance obligations at the end of the period, included in deferred revenue in the Company’s
Consolidated Balance Sheets. As of December 31, 2022 and 2021, the Company had total deferred revenue of $18,469,332 and $2,154,042,
respectively, which mainly represent the proceeds received for orders placed at end of each period, while the deliveries were accomplished
at the beginning of the next periods, when they were recognized as revenue. Revenue is recognized at a point in time when
the goods are transferred to customers, and no remaining performance obligation in future periods. The Company applies a practical expedient
to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less.
The Company has no material incremental costs of obtaining contracts with customers that the Company expects the benefit of those costs
to be longer than one year which need to be recognized as assets. Cost of revenue Cost of revenue consists primarily of purchase
price of products, inbound shipping charges and write-downs of inventory. Shipping charges to receive products from the suppliers are
included in the inventories and recognized as cost of revenues upon sale of the products to the customers. Fulfillment expenses Fulfillment expenses consist primarily of expenses
charged by third-party couriers for dispatching and delivering the Company’s products and rental expenses of leased warehouses.
Shipping cost included in fulfillment costs amounted to $2,074,452, $2,404,268 and $2,201,457 for the years ended December 31, 2022, 2021
and 2020, respectively. Marketing expenses Marketing costs primarily consist of targeted
online advertising, payroll and related expenses for personnel engaged in marketing and selling activities. We also participate in cooperative
advertising arrangements with certain of our vendors, and other third parties. Advertising costs, which consist primarily of
online advertising and outdoor advertising, are expensed as incurred, Advertising cost included in marketing expense amounted to $2,142,803,
$3,285,558 and $131,419 for the years ended December 31, 2022, 2021 and 2020, respectively. Income taxes The Company’s subsidiaries in China and
Hong Kong are subject to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC for the years ended
December 31, 2022 and 2021. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires
an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred
tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred
taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain.
The Company doesn’t believe that there was any uncertain tax positions as of December 31, 2022 and 2021, respectively. ASC 740-10-25 prescribes a more-likely-than-not threshold for financial
statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on
the recognition of income tax assets and liabilities, classification accounting for interest and penalties associated with tax positions,
years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There were no material uncertain
tax positions as of December 31, 2022 and 2021. The Company will recognize interest and penalties, if any, related to unrecognized tax
benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties will
be included on the related tax liability line in the consolidated balance sheet. As of December 31, 2022, the tax years ended December
31, 2018 through December 31, 2022 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. Value added tax (“VAT”) Sales revenue represents the invoiced value of
goods, net of VAT. The applicable VAT rate was 13% or 9% (depending on the type of goods involved) for products sold in the PRC. The VAT
may be offset by VAT paid by the Company on acquiring its inventories or receiving services from suppliers. The Company recorded a VAT
payable or recoverable net of payments in the accompanying consolidated financial statements. All of the VAT returns filed by the Company’s
subsidiaries and VIE in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. Comprehensive income (loss) Comprehensive income (loss) consists of two components,
net income (loss) and other comprehensive income .
Other comprehensive income consists of foreign currency translation adjustment from the Company not using the U.S. dollar as its functional
currency. Earnings (loss) per share The Company computes earnings (loss) 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 is measured as net income divided by the weighted average common
shares outstanding for the period. Diluted presents the dilutive effect on a per share basis of potential common shares (e.g., convertible
securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.
Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are
excluded from the calculation of diluted EPS. For the years ended December 31, 2022, 2021 and 2020, the Company had no potential common
shares outstanding that could potentially dilute EPS in the future. Statement of cash flows In accordance with ASC 230, “Statement of
Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies, and then translated
at average translation rates for the periods. As a result, amounts related to assets and liabilities reported on the statements of
cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Concentrations For the year ended December 31, 2022, one customer
accounted for approximately 15.9% of the Company’s total sales. For the year ended December 31, 2021, one customer accounted for
approximately 15.8% of the Company’s total sales. For the year ended December 31, 2020, two customers accounted for approximately
18.6% and 10.6% of the Company’s total sales. For the year ended December 31, 2022, two major
suppliers, accounted for approximately 14% and 12% of the total purchases. For the year ended December 31, 2021, two major suppliers,
accounted for approximately 45% and 24% of the total purchases. For the year ended December 31, 2020, one major supplier, a related party,
accounted for approximately 87% of the total purchases. See Note 13 to the consolidated financial statements for additional information
on related parities transactions. Risks and Uncertainties The operations of the Company are located in the
PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic,
and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s results may be adversely affected
by changes in the political and social conditions in the PRC, and 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. The Company’s sales, purchases and expense
transactions are denominated in RMB, and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not
freely convertible into foreign currencies under the current law. In China, 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, the central bank of China. Remittances
in currencies other than RMB may require certain supporting documentation in order to effect the remittance. As of December 31, 2022
and 2021, $13,526,957 and $18,237,655 of the Company’s cash and cash equivalents were on deposit at financial institutions
in the PRC. In PRC, a company’s deposits at one bank are insured for a maximum of RMB500,000 in the event of bank failure. In Hong
Kong and Cayman Islands, deposits are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. The Company does not carry any business interruption
insurance, product liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the
Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. Beginning in late 2019, there was an outbreak of COVID-19 (coronavirus)
which has spread quickly to many parts in China, the U.S. and globally. In March 2020, the World Health Organization declared the COVID-19
a pandemic. With an aim to contain the COVID-19 outbreak, the Chinese government has imposed various strictive measures across the country
including, but not limited to, travel restrictions, mandatory quarantine requirements, and postponed resumption of business operations
until after the Chinese New Year holiday in 2020. Starting from March 2020, businesses in China began to reopen, and the interruptions
to businesses were gradually removed. However, due to the outbreak of Omicron variant in many cities in China, including Xi’an,
Hong Kong, Shanghai, Guangzhou and Suzhou, local governments imposed new restrictions and quarantine requirements with travel restrictions
and temporary closure of office buildings and facilities, and the employees at our Shanghai office worked from home from March 30, 2022
to June 1, 2022. In early December 2022, Chinese government eased the strict control measure for COVID-19, which has led to surge in increased
infections and caused disruption in our business operations in December 2022 and January 2023. As an online retailer and retail platform,
the Company’s operations in 2022 were not significantly negatively impacted by the pandemic. As the date of this report, the
Chinese government has loosened its policy and there is no control measures due to COVID-19. However, the situation remains highly
uncertain for any further outbreak or resurgence of the COVID-19 and new variants. It is therefore difficult for the Company to
estimate the impact on our business or operating results that might be adversely affected by any further outbreak or resurgence of
COVID-19 and new variants. We will continue to closely monitor the situation throughout 2023 and beyond. Because of the uncertainty surrounding the COVID-19
outbreak, the business disruption and the financial impact related to the outbreak of and response to the coronavirus cannot be reasonably
estimated at this time. Foreign currency translation The Company’s financial information is presented
in U.S. dollars (“USD”). The functional currency of the Company is the Chinese Yuan, Renminbi (“RMB”), the currency
of the PRC. Any transactions which are denominated in currencies other than RMB are translated into RMB at the exchange rate quoted by
the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements
of operations as for |
