Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 | |
Document Information Line Items | |
Entity Registrant Name | Harden Technologies Inc. |
Document Type | POS AM |
Amendment Flag | true |
Amendment Description | POST-EFFECTIVE AMENDMENT NO. 1 |
Entity Central Index Key | 0001873723 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Incorporation, State or Country Code | D8 |
Entity Tax Identification Number | 00-0000000 |
Consolitdated Balance Sheets
Consolitdated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Current Assets: | |||
Cash | $ 3,993,086 | $ 2,205,236 | |
Restricted cash | 457,023 | 88,327 | |
Short-term investment | 2,105,246 | ||
Notes receivable | 653,875 | 214,890 | |
Accounts receivable, net | 5,774,817 | 7,075,065 | |
Accounts receivable – a related party | 172,974 | 475,781 | |
Inventories | 9,700,738 | 7,602,238 | |
Advance to suppliers, net | 180,923 | 131,287 | |
Advance to suppliers – related parties | 813,647 | 803,791 | |
Prepayments and other current assets | 2,041,800 | 826,715 | |
Total Current Assets | 23,788,883 | 21,528,576 | |
Property and equipment, net | 1,053,060 | 1,228,703 | |
Intangible assets, net | 103,445 | 45,397 | |
Deferred tax assets | 1,006,205 | 955,004 | |
Right-of-use assets | 337,096 | 657,207 | |
Long-term restricted cash | 232,283 | ||
Prepayments and other non-current assets | 84,241 | 86,754 | |
Total Assets | 26,605,213 | 24,501,641 | |
Current Liabilities: | |||
Current maturity of long-term bank loans | 239,360 | 551,000 | |
Short-term bank loan | 422,400 | 435,000 | |
Accounts payable | 3,779,247 | 3,999,312 | |
Notes payable | 734,131 | ||
Advance from customers | 5,325,566 | 2,879,042 | |
Accrued expenses and other liabilities | 1,321,479 | 1,554,779 | |
Taxes payable | 22,539 | 479,933 | |
Due to related parties | 2,700,153 | 2,680,580 | |
Operating lease liability, current | 274,209 | 284,479 | |
Total Current Liabilities | 14,819,084 | 12,864,125 | |
Long-term bank loans | 1,182,720 | 1,029,500 | |
Operating lease liability, non-current | 70,863 | 381,054 | |
Total Liabilities | 16,072,667 | 14,274,679 | |
COMMITMENTS AND CONTINGENCIES | |||
Total Equity: | |||
Ordinary shares, $0.001 par value, 100,000,000 shares authorized, 10,000,000 shares issued and outstanding at December 31, 2023 and 2022, respectively* | [1] | 10,000 | 10,000 |
Additional paid-in capital | 167,705 | 167,705 | |
Statutory reserves | 1,360,464 | 1,360,464 | |
Retained earnings | 9,662,121 | 9,052,271 | |
Accumulated comprehensive loss | (595,638) | (294,476) | |
Total Shareholders’ Equity | 10,604,652 | 10,295,964 | |
Non-controlling interest | (72,106) | (69,002) | |
Total Equity | 10,532,546 | 10,226,962 | |
Total Liabilities and Equity | $ 26,605,213 | $ 24,501,641 | |
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolitdated Balance Sheets (P
Consolitdated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | |||
Ordinary shares, par value (in Dollars per share) | [1] | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | [1] | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | [1] | 10,000,000 | 10,000,000 |
Ordinary shares, shares outstanding | [1] | 10,000,000 | 10,000,000 |
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Consolitdated Statement of Inco
Consolitdated Statement of Income and Comprehesive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenue | |||
Total revenue | $ 21,141,677 | $ 30,616,040 | |
Cost of revenues | |||
Total cost of revenues | 14,827,833 | 21,839,009 | |
Gross Profit | 6,313,844 | 8,777,031 | |
Operating expenses: | |||
Selling | 3,727,839 | 4,247,353 | |
General and administrative | 1,308,430 | 1,349,911 | |
Research and development | 1,581,779 | 2,091,600 | |
Provision for credit losses | 44,465 | 583,877 | |
Total operating expenses | 6,662,513 | 8,272,741 | |
Income (loss) from operations | (348,669) | 504,290 | |
Other income (expense): | |||
Interest income | 26,864 | 10,847 | |
Interest expense | (160,629) | (306,141) | |
Other income, net | 1,008,079 | 635,219 | |
Total other income, net | 874,314 | 339,925 | |
Income before income taxes | 525,645 | 844,215 | |
Provision (benefit) for income taxes | (79,088) | (146,200) | |
Net income | 604,733 | 990,415 | |
Less: Net loss attributable to non-controlling interests | (5,117) | (39,075) | |
Net income attributable to the Company | 609,850 | 1,029,490 | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (299,149) | (787,376) | |
Comprehensive income | 305,584 | 203,039 | |
Less: Comprehensive loss attributable to non-controlling interests | (3,104) | (35,594) | |
Comprehensive income attributable to the Company | $ 308,688 | $ 238,633 | |
Earnings Per share – Basic (in Dollars per share) | $ 0.06 | $ 0.1 | |
Weighted Average Shares Outstanding – Basic (in Shares) | [1] | 10,000,000 | 10,000,000 |
Product sales | |||
Revenue | |||
Total revenue | $ 20,087,944 | $ 29,368,313 | |
Warranty service | |||
Revenue | |||
Total revenue | 1,053,733 | 1,247,727 | |
Cost of product sales | |||
Cost of revenues | |||
Total cost of revenues | 14,386,198 | 21,412,390 | |
Cost of warranty service | |||
Cost of revenues | |||
Total cost of revenues | $ 441,635 | $ 426,619 | |
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization |
Consolitdated Statement of In_2
Consolitdated Statement of Income and Comprehesive Income (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Income Statement [Abstract] | |||
Earnings Per share – diluted | $ 0.06 | $ 0.10 | |
Weighted Average Shares Outstanding – diluted | [1] | 10,000,000 | 10,000,000 |
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock | Additional Paid in Capital | Statutory Reserves | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling interest | Total | ||
Balance at Dec. 31, 2021 | $ 10,000 | $ 167,705 | $ 1,265,464 | $ 8,117,781 | $ 496,381 | $ (33,408) | $ 10,023,923 | ||
Balance (in Shares) at Dec. 31, 2021 | [1] | 10,000,000 | |||||||
Net income (loss) for the year | 1,029,490 | (39,075) | 990,415 | ||||||
Statutory reserves | 95,000 | (95,000) | |||||||
Statutory reserves (in Shares) | |||||||||
Foreign currency translation adjustments | (790,857) | 3,481 | $ (787,376) | ||||||
Foreign currency translation adjustments (in Shares) | [2] | 10,000,000 | |||||||
Balance at Dec. 31, 2022 | $ 10,000 | 167,705 | 1,360,464 | 9,052,271 | (294,476) | (69,002) | $ 10,226,962 | ||
Balance (in Shares) at Dec. 31, 2022 | [1] | 10,000,000 | |||||||
Net income (loss) for the year | 609,850 | (5,117) | 604,733 | ||||||
Foreign currency translation adjustments | (301,162) | 2,013 | $ (299,149) | ||||||
Foreign currency translation adjustments (in Shares) | 10,000,000 | [2] | |||||||
Balance at Dec. 31, 2023 | $ 10,000 | $ 167,705 | $ 1,360,464 | $ 9,662,121 | $ (595,638) | $ (72,106) | $ 10,532,546 | ||
Balance (in Shares) at Dec. 31, 2023 | [1] | 10,000,000 | |||||||
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization[2]Shares and per share data are presented on a retroactive basis to reflect the reorganization |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 604,733 | $ 990,415 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 292,054 | 292,464 |
Loss on disposition of property and equipment | 1,473 | 1,104 |
Provision for credit losses, net | 44,465 | 583,877 |
Accrued interests on loan from a related party | 79,566 | |
Deferred tax benefit | (79,088) | (146,200) |
Amortization of operating lease right-of-use assets | 301,930 | 256,137 |
Changes in operating assets and liabilities: | ||
Notes receivable | (446,474) | 265,037 |
Accounts receivable | 885,122 | (1,739,014) |
Accounts receivable – a related party | 289,847 | 359,984 |
Inventories | (2,325,291) | 316,187 |
Advance to suppliers | 115,786 | 188,743 |
Advance to supplier – related parties | (33,232) | (789,591) |
Prepayments and other assets | (972,468) | (264,076) |
Accounts payable | (104,518) | 742,298 |
Accounts payable – related parties | (400,875) | |
Notes payable | 736,217 | |
Advance from customers | 2,537,104 | (843,256) |
Accrued expenses and other liabilities | (188,803) | 183,957 |
Taxes payable | (444,752) | 210,286 |
Operating leases liabilities | (302,039) | (279,282) |
Net cash provided by (used in) operating activities | 991,632 | (71,805) |
Cash flows from investing activities: | ||
Payments for purchase of property and equipment | (119,604) | (302,668) |
Payments for purchase of intangible assets | (92,741) | |
Purchase of short-term investment | (2,157,514) | |
Redemption of short-term investment | 2,050,074 | |
Net cash provided by (used in) investing activities | 1,837,729 | (2,460,182) |
Cash flows from financing activities: | ||
Proceeds from short-term bank loan | 423,600 | 445,800 |
Repayment of short-term bank loan | (423,600) | |
Proceeds from long-term bank loans | 423,600 | 1,337,400 |
Repayment of long-term bank loans | (536,560) | (118,880) |
Loan proceeds from related parties | 2,259 | 244,447 |
Repurchase of subsidiary shares | ||
Proceeds from private placement | ||
Payment for deferred IPO cost | (269,911) | |
Net cash provided by (used in) financing activities | (380,612) | 1,908,767 |
Effect of exchange rate changes on cash | (59,920) | (204,453) |
Net increase (decrease) in cash | 2,388,829 | (827,673) |
Cash and restricted cash, beginning of year | 2,293,563 | 3,121,236 |
Cash and restricted cash, end of year | 4,682,392 | 2,293,563 |
Reconciliation of cash and restricted cash, end of year | ||
Cash | 3,993,086 | 2,205,236 |
Restricted cash | 457,023 | 88,327 |
Long-term restricted cash | 232,283 | |
Total cash and restricted cash | 4,682,392 | 2,293,563 |
Supplemental disclosure information: | ||
Cash paid for income tax | 268,462 | 169,208 |
Cash paid for interest | 81,063 | 63,678 |
Non-cash activities | ||
ROU reduction due to lease modification | 33,049 | |
Right-of-assets obtained in exchange for operating lease obligations | $ 929,661 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Description [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | Note 1 — ORGANIZATION AND BUSINESS DESCRIPTION Harden Technologies Inc. (“Harden” or the “Company”), is a company that was established under the laws of the British Virgin Islands on April 8, 2021 as a holding company. The Company, through its subsidiaries, specializes in the manufacture of customized industrial recycling equipment. Mr. Jiawen Miao (“Mr. Miao”), the Chairman of the Board of Directors and Chief Executive Officer (“CEO”), is the ultimate controlling shareholder (“the controlling shareholder”) of the Company. As of December 31, 2023, the Company’s subsidiaries are as follows: Subsidiaries Date of Incorporation Jurisdiction of Formation Percentage of direct/indirect Economic Ownership Principal Activities Harden International Limited (“Harden HK”) April 20, 2021 Hong Kong, PRC 100% Investment Holding Harwell Technologies Ltd. (“WOFE”) May 13, 2021 Guangdong Province, PRC 100% Technical service Harden Machinery Ltd. (“Harden Machinery”) May 10, 2010 Guangdong Province, PRC 100% Manufacture of recycling equipment Dr. Shredder Technologies Ltd. (“Dr. Shredder”) September 29, 2017 Guangdong Province, PRC 55% owned subsidiary of Harden Machinery Manufacture of recycling equipment As described below, the Company, through a series of transactions which are accounted for as a reorganization of entities under common control (the “Reorganization”), became the ultimate parent of its subsidiaries. Reorganization A reorganization of the legal structure was completed on June 3, 2021. The reorganization involved: (i) -Harden (ii) Before and after the reorganization, the Company, together with its subsidiaries, is effectively controlled by the same shareholders, and therefore the reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805 -50-25 -50-45-5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. All intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Non -controlling -controlling -controlling -controlling Uses of estimates and assumptions In preparing the condensed consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the condensed consolidated financial statements. Significant accounting estimates required to be made by management include standalone selling price of each distinct performance obligation in revenue recognition using the adjusted market assessment approach, allowance for inventories, allowance for credit losses and valuation allowance for deferred tax assets. The Company evaluates its estimates and assumptions on an ongoing basis and its estimates on historical experience, current and expected future conditions and various other assumptions that management believes are reasonable under the circumstances based on the information available to management at the time these estimates and assumptions are made. Actual results and outcomes may differ significantly from these estimates and assumptions. Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of its bank accounts in the PRC. Restricted Cash Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Company’s restricted cash is substantially cash balance in designated bank accounts as security for performance of sales contract, product warranty and security for its notes payable. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the term of the security period. Upon maturities of the security period, the bank’s deposits are available for general use by the Company. Restricted cash with maturity period over one year was classified as non -current Short-term investment The Company’s short -term -term -term nil Notes receivable Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payments. The notes are non -interest Accounts Receivable In June 2016, the FASB issued ASU No. 2016 -13 -specific -effect As of December 31, 2023 and 2022, the allowance for credit losses represented approximately 10% and 12% of gross account receivable balances (including account receivable from a related party), respectively. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written -off Inventories Inventories are stated at the lower of cost or net realizable value. Costs include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over net realizable value of each item of inventories is recognized in the value of inventories. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its realizable value adjustments and reduces the carrying value of those inventories that are obsoletes or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. Allowance for inventory provision balance as of December 31, 2023 and 2022 amounted to $395,161 and $558,783, respectively. Advances to Suppliers Advance to suppliers consists of balances paid to suppliers for services and materials that have not been provided or received. Advance to suppliers are short -term Prepayments and other assets Prepayment and other assets primarily consist of deferred IPO cost, loans to third -parties well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written off against allowance for credit losses after management has determined that the likelihood of collection is not probable. The allowance for credit losses for prepayments and other assets both were approximately $ nil Deferred IPO costs represent the incremental costs incurred for the Company’s initial public offering (“IPO”). These costs have been charged against the gross proceeds of the IPO subsequent to year end. Deferred IPO costs primary include specific legal and professional consulting costs. As of December 31, 2023 and 2022, the deferred IPO costs were $854,226 and $601,805, respectively. Property and equipment Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight -line Useful life Machinery equipment 10 years Electronic equipment 3 years Transportation equipment 4 years Other equipment 5 years Leasehold improvement Over the shorter of the lease term or estimated useful lives Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. Intangible Assets Intangible assets consist primarily of software. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight -line Category Estimated useful life Software 5 years Leases The Company adopted Topic 842 on January 1, 2022 using the modified retrospective transition approach. The Company has lease contracts for factory and office space under operating leases. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right -of-use -of-use For leases with lease term less than one year (short -term -line Impairment of Long-lived Assets The Company reviews long -lived -lived Fair Value of Financial Instruments ASC 825 -10 -level • • • Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, advances to suppliers, prepayments and other current assets, accounts payable, notes receivable, advance from customers, accrued expenses, short term bank loans, notes payable and taxes payable, approximates their recorded values due to their short -term -term Notes payable During the normal course of business, the Company regularly issues bank acceptance bills as a payment method to settle outstanding accounts payables with various suppliers. The Company records such bank acceptance bills as notes payable. Such notes payable is generally short term in nature due to their short maturity period of six to nine months. Revenue recognition The Company manufactures and distributes customized recycling equipment accessories and supplies. The Company has adopted ASU 2014 -09 The Company generates revenue primarily through the sale and delivery of promised goods or services to customers and recognizes revenue when control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services and is recorded net of value -added -type Company’s contracts with customer are primarily on a fixed -price The Company determines its performance obligations arise from (i) sales of customized recycling equipment, accessories and supplies (“product component”) and (ii) provides warranty service, if applicable, as these deliverables are distinct in that customers can benefit from each service on its own and the Company’s promises to deliver the product or services are separately identifiable from each other in the contract. The standalone selling price of each distinct performance obligation in revenue recognition was determined using the adjusted market assessment approach. Revenue from sales of customized recycling, accessories and supplies equipment is recognized when the products are delivered and accepted by customers, which is the point when title has transferred and risk of ownership has passed. Return allowances is determined by an estimate of expected customer merchandise returns, which is calculated based on historical return patterns, and recorded as a refund liability included in accrued expenses and other liabilities. Revenues from service -type -type For the years ended December 31, 2023 and 2022, the disaggregation of revenue by the type of customers is as follows: For The Years Ended 2023 2022 Industrial waste industry $ 18,307,063 $ 21,680,006 Municipal waste industry 2,474,619 4,378,853 Others* 359,995 4,557,181 Total $ 21,141,677 $ 30,616,040 * For the years ended December 31, 2023 and 2022, the disaggregation of revenue by the type of products are as follows: For The Years Ended 2023 2022 Equipment sales $ 16,947,434 $ 26,739,104 Accessories and supplies sales 3,140,510 2,629,209 Warranty service 1,053,733 1,247,727 Total $ 21,141,677 $ 30,616,040 Contract liabilities are reflected as advance from customers on the consolidated balance sheet. Contract liabilities relate to payments received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfilment of performance obligations. As of December 31, 2023 and 2022, the advances from customer amounted to $5,325,566 and $2,879,042, respectively, which were expected to be recognized as revenue within 12 months. During the years ended December 31, 2023 and 2022, the Company recognized $2,779,392 and $3,555,929 as revenue that was included in the balance of advance from customers at December 31, 2022 and 2021, respectively. Shipping and handling costs Shipping and handling costs, which include costs related to the selection of products and their delivery to customers, are presented in cost of product sales and selling expenses. Shipping and handling costs were $415,847 and $453,031 for the years ended December 31, 2023 and 2022, respectively. Government Subsidies The Company’s PRC subsidiaries received government subsidies according to related policy from local government. The Company receives government subsidies that the Chinese government has not specified its purpose for and are not tied to future trends or performance of the Company; receipt of such subsidy income is not contingent upon any further actions or performance of the Company and the amounts do not have to be refunded under any circumstances. The unspecific purpose subsidies are recognized as other income upon receipt as further performance by the Company is not required. For the years ended December Research and development expenses Research and development expenses include costs directly associated with the Company’s research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. For the years ended December Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2023 and 2022. As of December 31, 2023, the tax years ended December 31, 2018 through December 31, 2023 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. Value added tax (“VAT”) Revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable net of payments in the accompanying consolidated financial statements. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS 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 Foreign currency translation Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into the reporting currency U.S. Dollars (“US$”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2023 December 31, 2022 Year-end spot rate US$1=RMB 7.0999 US$1=RMB 6.8972 Average rate US$1=RMB 7.0809 US$1=RMB 6.7290 Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using US$ as its functional currency. Risks and Uncertainties In December 2019, a novel strain of coronavirus (COVID -19 -19 -19 now an established and ongoing health issue which no longer constitutes a public health emergency of international concern. For the years ended December 31, 2023 and 2022, the COVID -19 -19 -19 Segment reporting The Company follows ASC 280, “ Segment Reporting.” -maker -lived Concentrations of risks a. Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts at the balance sheet dates. As of December 31, 2023 and 2022, the aggregate amount of cash and restricted cash of $4,682,392 and $2,291,064, respectively, was held at major financial institutions in PRC, where there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the PRC. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy to provide for allowance for credit losses based on the individual customer’s and supplier’s financial condition, credit history, and the current economic conditions. b. For the year ended December 31, 2023, a customer accounted for approximately 13% of the Company’s total revenues. For the year ended December 31, 2022, no customer accounted for more than 10% of the Company’s total revenues. As of December 31, 2023, no customer accounted for more than 10% of the Company’s accounts receivable. As of December 31, 2022, one customer accounted for approximately 12% of the Company’s accounts receivable. c. For the years ended December 31, 2023 and 2022, no supplier accounted for more than 10% of the Company’s total purchases. As of December 31, 2023, one supplier accounted for approximately 12% of the Company’s total accounts payable. As of December 31, 2022, no supplier accounted for more than 10% of the Company’s total accounts payable. d. A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Company’s financial results reported in the U.S. dollar terms without giving effect to any underlying changes in the Company’s business or results of operations. Currently, the Company’s assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016 -13 -19 -04 -05 -13 In December 2023, the FASB issued ASU No. 2023 -09 -09 -09 In October 2021, the FASB issued ASU No. 2021 -08 -08 -04 In October 2023, the FASB issued ASU 2023 -06 -06 -06 The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Short-Term Investment
Short-Term Investment | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Investment [Abstract] | |
SHORT-TERM INVESTMENT | Note 3 — SHORT-TERM INVESTMENT Short -term December 31, 2023 December 31, 2022 Financial products by Industrial Bank $ — $ 2,105,246 Short -term -term |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 4 — ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: December 31, 2023 December 31, 2022 Accounts receivable $ 6,463,697 $ 8,103,191 Less: allowance for credit losses (688,880 ) (1,028,126 ) Accounts receivable, net $ 5,774,817 $ 7,075,065 For the years ended December nil Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ 1,028,126 $ 313,969 Provision 430,508 759,707 Recovery (217,203 ) — Written off (522,167 ) (3,332 ) Foreign exchange translation effect (30,384 ) (42,218 ) Ending balance $ 688,880 $ 1,028,126 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | Note 5 — INVENTORIES Inventories consist of the following: December 31, 2023 December 31, 2022 Raw materials $ 2,918,623 $ 3,178,710 Finished goods 168,278 300,895 Working in process (“WIP”) 6,613,837 4,122,633 Ending balance $ 9,700,738 $ 7,602,238 |
Advance to Suppliers
Advance to Suppliers | 12 Months Ended |
Dec. 31, 2023 | |
Advance to Suppliers [Line Items] | |
ADVANCE TO SUPPLIERS | Note 6 — ADVANCE TO SUPPLIERS Advance to suppliers consisted of the following: December 31, 2023 December 31, 2022 Advance to suppliers $ 200,851 $ 738,482 Less: allowance for credit losses (19,928 ) (607,195 ) Advance to suppliers, net $ 180,923 $ 131,287 Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ 607,195 $ 750,342 Provision — — Recovery (169,377 ) (88,379 ) Written off (401,921 ) — Foreign exchange translation effect (15,969 ) (54,768 ) Ending balance $ 19,928 $ 607,195 For the years ended December nil |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Assets [Abstract] | |
PREPAYMENTS AND OTHER ASSETS | Note 7 — PREPAYMENTS AND OTHER ASSETS Prepayments and other current assets consisted of the following: December 31, 2023 December 31, 2022 Other receivable $ 334,106 $ 303,928 Deferred IPO cost 854,226 601,805 Prepaid income tax 267,701 — Value added tax recoverable 670,008 7,736 Total 2,126,041 913,469 Less: non-current portion 84,241 86,754 Less: allowance for credit losses — — Prepayments and other current assets $ 2,041,800 $ 826,715 Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ — $ 103,632 Provision 537 10,699 Recovery — (98,150 ) Written off (537 ) (10,699 ) Foreign exchange translation effect — (5,482 ) Ending balance $ — $ — For the years ended December nil |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 8 — PROPERTY AND EQUIPMENT, NET Property and equipment, net, consist of the following: December 31, 2023 December 31, 2022 Machinery equipment $ 1,348,033 $ 1,377,291 Electronic equipment 270,631 257,164 Transportation equipment 225,577 212,333 Other equipment 125,010 130,607 Leasehold improvement 589,306 555,718 Subtotal 2,558,557 2,533,113 Less: accumulated depreciation and amortization (1,505,497 ) (1,304,410 ) Property and equipment, net $ 1,053,060 $ 1,228,703 Depreciation and amortization expense was $258,582 and $262,781 for the years ended December |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | Note 9 — INTANGIBLE ASSETS, NET The Company states intangible assets at cost less accumulated amortization. Amortization expenses were $33,472 and $29,683 for the years ended December December 31, 2023 December 31, 2022 Software $ 248,815 $ 160,730 Less: accumulated amortization (145,370 ) (115,333 ) Intangible assets, net $ 103,445 $ 45,397 The estimated future amortization expenses are as follows: Twelve months ending December 31, Estimated Amortization Expense 2024 $ 32,401 2025 20,122 2026 19,106 2027 18,549 2028 13,267 Total $ 103,445 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | Note 10 — LEASES The Company signed lease agreements to rent factory and office space from Zhongshan Langhua Property Management Company, Zhongshan Langhua Electronic Plastic Co., Ltd. and Zhongshan Wukong Real Estate Investment Co., Ltd. The lease agreements will expire on March 30, 2025, March 31, 2025 and March 25, 2025. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Effective January 1, 2022, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non -lease Total lease expense for the years ended December Supplemental balance sheet information related to operating leases was as follows: December 31, 2023 December 31, 2022 Right-of-use assets, net $ 337,096 $ 657,207 Operating lease liabilities – current 274,209 284,479 Operating lease liabilities – non-current 70,863 381,054 Total $ 345,072 $ 665,533 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.25 years 2.24 years Weighted average discount rate (per annum) 4.27 % 4.29 % The following is a schedule of maturities of operating lease liabilities as of December 31, 2023: Twelve months ending December 31, 2024 $ 283,472 2025 71,358 Total future minimum lease payments 354,830 Less: imputed interest 9,758 Present value of operating lease liabilities $ 345,072 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Liabities [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABITIES | Note 11 — ACCRUED EXPENSES AND OTHER LIABITIES Accrued expenses and other liabilities consisted of the following: December 31, 2023 December 31, 2022 Wages payable $ 691,391 $ 881,827 Other payable to venders 307,459 307,174 Sales refund provision 322,629 365,778 Accrued expenses and other liabilities $ 1,321,479 $ 1,554,779 |
Short-Term Bank Loan
Short-Term Bank Loan | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Bank Loan [Abstract] | |
SHORT-TERM BANK LOAN | Note 12 — SHORT-TERM BANK LOAN Short -term December 31, 2023 December 31, 2022 Loan from Bank of China (Due on March 22, 2023) $ — $ 435,000 Loan from Bank of China (Due on March 21, 2024) 422,400 — Total $ 422,400 $ 435,000 On March 16, 2022, the Company signed a loan agreement with Bank of China (BOC) to obtain a one -year -year On March 17, 2023, the Company signed a loan agreement with Bank of China (BOC) to obtain a one -year -year On March 15, 2024, the Company obtained a loan of RMB 3,000,000 ($422,400) with a floating interest rate of the one -year Interest expense amounted to $21,800 and $13,142 for the years ended December |
Long-Term Bank Loans
Long-Term Bank Loans | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Bank Loans [Abstract] | |
LONG-TERM BANK LOANS | Note 13 — LONG-TERM BANK LOANS Long -term December 31, 2023 December 31, 2022 Loan from Bank of China (Due on March 16, 2023) (1) $ — $ 348,000 Loan from Bank of China (Due on March 20, 2026) (2) 422,400 — Loan from Bank of China (Due on March 22, 2025) (3) 506,880 580,000 Loan from Industrial Bank (Due on May 29, 2025) (4) 492,800 652,500 Less: current maturity of long-term bank loan (239,360 ) (551,000 ) Long-term bank loan $ 1,182,720 $ 1,029,500 (1) -year -year (2) -year -year (3) -year -year (4) -year -year Interest expense amounted to $59,263 and $53,753 for the years ended December |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 14 — RELATED PARTY TRANSACTIONS The Company records transactions with various related parties. These related party balances as of December 31, 2023 and 2022 and transactions for the years ended December 31, 2023 and 2022 are identified as follows: (1) Related parties with transactions and related party relationships Name of Related Party Relationship to the Company Zhongshan Dimaike Environmental Technology Co., Ltd. (“Dimaike”)* An entity controlled by the Company’s shareholders Zhongshan Lvduosen Machinery Manufacturing Co., Ltd. (“Lvduosen”)* An entity partially owned by the Company’s shareholders Zhongshan Xuanrui Cutting Tools Technology Co., Ltd. (“Xuanrui”) An entity partially owned by the Company’s shareholders Shenzhen Zaijiede Solid-Waste Disposal Co., Ltd. (“Zaijiede”) An entity controlled by the Company’s shareholders. Harden Industries Ltd. An entity controlled by the Company’s shareholders. * * (2) Accounts receivable from a related party December 31, 2023 December 31, 2022 Zaijiede $ 172,974 $ 475,781 Total $ 172,974 $ 475,781 (3) Sales to a related party For the Years Ended 2023 2022 Zaijiede $ 89,478 $ 114,154 Total $ 89,478 $ 114,154 For the years ended December 31, 2023 and 2022, the Company sold certain wood and green cutting shredders and related parts to Zaijiede. During the year ended December 31, 2023, the Company provided a rebate to the customer of $135,635 for the prior year sales based on negotiation. The related sales represented approximately 0.4% and 0.4% of the Company’s revenue for the years ended December 31, 2023 and 2022, respectively. (4) Advance to related parties suppliers Advance to related parties suppliers consisted of the following: December 31, 2023 December 31, 2022 Lvduosen $403,730 $368,711 Xuanrui 299,015 269,971 Dimaike 110,902 165,109 Total $813,647 $803,791 (5) Purchases from related parties For the years ended December 31, 2023 and 2022, the Company purchased raw materials from Lvduosen, Xuanrui and Dimaike. For the Years Ended 2023 2022 Purchases from related parties Lvduosen (1) $ 928,844 $ 1,085,233 Xuanrui (2) 815,785 1,073,656 Dimaike (3) 773,046 1,227,335 Total $ 2,517,675 $ 3,386,224 (1) (2) (3) -drive (6) Due to related parties December 31, 2023 December 31, 2022 Due to related parties Jiawen Miao $ 2,572,909 $ 2,567,950 Harden Industries Ltd. 80,780 64,780 Fan Zhang 46,464 47,850 Total $ 2,700,153 $ 2,680,580 In May 2021, Harwell Technologies Ltd. (100% owned subsidiary of the Company) signed a loan agreement with Jiawen Miao to obtain an aggregate of $2,334,500 loan (or RMB 16.1 As of December 31, 2023 and 2022, the Company had due to Harden Industries Ltd. of $80,780 and $64,780, respectively, which were interest -free -free |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
TAXES | Note 15 — TAXES (a) Corporate Income Taxes (“CIT”) BVI Harden is incorporated in the BVI as an offshore holding company and is not subject to tax on income or capital gain under the laws of BVI. Hong Kong Under Hong Kong tax laws, Harden HK is subject to statutory income tax rate at 16.5% if revenue is generated in Hong Kong and there are no withholding taxes in Hong Kong on remittance of dividends. PRC Under the Enterprise Income Tax (“EIT”) Law of PRC, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case -by-case -apply -tech Deferred tax assets and liabilities As of December 31, 2023 and 2022, the Company had taxable losses of RMB 12,705,130 ($1,788,882), and RMB 2,245,486($325,596), derived from entities in the PRC, which can be carried forward per tax regulation to offset future taxable income for income tax purposes. As of December 31, 2023, the PRC net operating loss carry forward will expire from December 31, 2024 to 2033 if not utilized. EIT is typically governed by the local tax authority in PRC. Each local tax authority at times may grant preferred tax treatment to local enterprises as a way to encourage entrepreneurship and stimulate local economy. The corporate income taxes for fiscal years 2023 and 2022 were reported at a reduced rate of 15% as a result of Harden Machinery being approved as a High and New Technology Enterprises (“HNTEs”). The impact of the tax treatment noted above decreased foreign taxes by $ nil nil i) Income/(loss) before provision for income taxes is attributable to the following geographic location for the years ended December 31, 2023 and 2022: For the Years Ended 2023 2022 PRC $ 526,142 $ 844,611 Foreign (497 ) (396 ) Total Income before income taxes $ 525,645 $ 844,215 ii) The components of income tax provision (benefit) are as follows: For the Years Ended 2023 2022 Current $ — $ — Deferred (79,088 ) (146,200 ) Total provision (benefit) for income taxes $ (79,088 ) $ (146,200 ) iii) The following table summarizes deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities: As of December 31, 2023 2022 Deferred tax assets: Allowance for credit losses and others $ 170,398 $ 333,775 Deferred revenue 532,651 530,412 Sales refund liability 49,598 56,106 Deferred expenses 23,682 26,357 Net operating loss 280,745 89,585 Deferred tax assets: 1,057,074 1,036,235 Valuation allowance: (50,869 ) (81,231 ) Deferred tax assets, net $ 1,006,205 $ 955,004 The Group has provided a valuation allowance of $50,869 and $81,231 as of December 31, 2023 and 2022, respectively, for which it has concluded that it is more likely than not that these net operating losses would not be utilized in the future. The following table reconciles the China statutory tax to the Company’s effective tax for the years ended December 31, 2023 and 2022: For the Years Ended 2023 2022 China Statutory income tax rate (25%) 131,411 211,054 Effect of preferential tax rate 54,498 91,908 Research & Development (“R&D”) tax credit* (394,808 ) (520,567 ) Change in valuation allowance (28,090 ) 69,151 NOL true up 74,281 — Non-deductible items and others** 83,620 2,254 Effective tax rate $ (79,088 ) $ (146,200 ) * ** -deductible The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. As of December 31, 2023, 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. (b) Taxes payable Taxes payable consist of the following: December 31, 2023 December 31, 2022 Value added tax payable $ — $ 355,409 Other taxes payable 22,539 124,524 Total taxes payable $ 22,539 $ 479,933 (c) Uncertain tax position The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2022 and 2023, the Group did not have any unrecognized uncertain tax positions and the Group does not believe that its unrecognized tax benefits will change over the next twelve months. For the years ended December 31, 2022 and 2023, the Company did not incur any interest and penalties related to potential underpaid income tax expenses. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDERS' EQUITY | Note 16 — SHAREHOLDERS’ EQUITY Common stock Harden is a company that was established under the laws of the British Virgin Islands on April 8, 2021. Based on the Company’s Articles of Association amended on June 3, 2021, the authorized number of shares of common stock, $0.001 par value per share, was 100,000,000 On May 14, 2021, the Company’s WOFE borrowed an unsecured non -interest-bearing In connection with the reorganization, an individual investor invested $61,122 (or RMB 398,274) in exchange for 50,000 As of December 31, 2023, 10,000,000 Statutory reserve The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after -tax -tax |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 17 — COMMITMENTS AND CONTINGENCIES Contingencies The Company may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Company can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on the Company’s consolidated financial position or results of operations or liquidity. |
Unaudited Condensed Financial I
Unaudited Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Unaudited Condensed Financial Information of the Parent Company [Abstract] | |
UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | Note 18 — UNAUDITED CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in the PRC is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in the PRC. The Company’s PRC subsidiaries are also required to set aside at least 10% of its after -tax In addition, the Company’s operations and revenues are conducted and generated in the PRC, all of the Company’s revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into USD. Regulation S -X -04 -X Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. The Company’s investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries. December 31, 2023 December 31, 2022 Unaudited Unaudited ASSETS Cash $ 194 $ 514 Deferred IPO cost 38,696 22,844 Investment in subsidiaries 10,633,542 10,324,386 Total Assets $ 10,672,432 $ 10,347,744 Liabilities: Due to related parties $ 67,780 $ 51,780 Total Liabilities 67,780 51,780 SHAREHOLDERS’ EQUITY Ordinary shares, $0.001 par value, 100,000,000 shares authorized, 10,000,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively* $ 10,000 $ 10,000 Additional paid-in capital 167,705 167,705 Statutory reserves 1,360,464 1,360,464 Retained earnings 9,662,121 9,052,271 Accumulated other comprehensive loss (595,638 ) (294,476 ) Total Shareholders’ Equity 10,604,652 10,295,964 Total Liabilities and Shareholders’ Equity $ 10,672,432 $ 10,347,744 * For the Years Ended 2023 2022 Unaudited Unaudited Equity in earnings of subsidiaries $ 610,318 $ 1,029,870 General and administrative expenses (468 ) (380 ) NET INCOME 609,850 1,029,490 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment $ (301,162 ) $ (790,857 ) COMPREHENSIVE INCOME $ 308,688 $ 238,633 For the Years Ended 2023 2022 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 609,850 $ 1,029,490 Adjustments to reconcile net income to net cash used in operating activities: Prepayments and other assets (15,852 ) (22,844 ) Equity in earnings of subsidiaries (610,318 ) (1,029,870 ) NET CASH USED IN OPERATING ACTIVITIES (16,320 ) (23,225 ) Proceeds from a related party 16,000 23,016 NET CASH PROVIDED BY FINANCING ACTIVITIES 16,000 23,016 CHANGES IN CASH (320 ) (209 ) CASH, BEGINNING OF YEAR 514 723 CASH, END OF YEAR $ 194 $ 514 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 19 — SUBSEQUENT EVENTS On September 21, 2023, the Company entered into an investment agreement with a third party, Zhongshan City Mindong Organic Waste Processing Limited. (“Mindong”). Pursuant to the agreement, both parties planned to incorporate a new entity: Guangdong Minde Low -carbon -carbon -carbon -carbon -carbon -party -carbon The Company’s registration statement on Form F -1 The Company evaluated all the impact of events and transactions that occurred after December 31, 2023, through the date the Company issued these consolidated financial statements, and concluded that no other subsequent events have occurred that would require for disclosure or recognition in the consolidated financial statements of the Company as appropriate. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. All intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Non -controlling -controlling -controlling -controlling |
Uses of estimates and assumptions | Uses of estimates and assumptions In preparing the condensed consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the condensed consolidated financial statements. Significant accounting estimates required to be made by management include standalone selling price of each distinct performance obligation in revenue recognition using the adjusted market assessment approach, allowance for inventories, allowance for credit losses and valuation allowance for deferred tax assets. The Company evaluates its estimates and assumptions on an ongoing basis and its estimates on historical experience, current and expected future conditions and various other assumptions that management believes are reasonable under the circumstances based on the information available to management at the time these estimates and assumptions are made. Actual results and outcomes may differ significantly from these estimates and assumptions. |
Cash | Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents. The Company maintains most of its bank accounts in the PRC. |
Restricted Cash | Restricted Cash Restricted cash represents cash that cannot be withdrawn without the permission of third parties. The Company’s restricted cash is substantially cash balance in designated bank accounts as security for performance of sales contract, product warranty and security for its notes payable. Restriction on the use of such cash and the interest earned thereon is imposed by the banks and remains effective throughout the term of the security period. Upon maturities of the security period, the bank’s deposits are available for general use by the Company. Restricted cash with maturity period over one year was classified as non -current |
Short-term investment | Short-term investment The Company’s short -term -term -term nil |
Notes receivable | Notes receivable Notes receivable represents trade accounts receivable due from various customers where the customers’ banks have guaranteed the payments. The notes are non -interest |
Accounts Receivable | Accounts Receivable In June 2016, the FASB issued ASU No. 2016 -13 -specific -effect As of December 31, 2023 and 2022, the allowance for credit losses represented approximately 10% and 12% of gross account receivable balances (including account receivable from a related party), respectively. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written -off |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Costs include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over net realizable value of each item of inventories is recognized in the value of inventories. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products. The Company evaluates inventories on a quarterly basis for its realizable value adjustments and reduces the carrying value of those inventories that are obsoletes or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. Allowance for inventory provision balance as of December 31, 2023 and 2022 amounted to $395,161 and $558,783, respectively. |
Advances to Suppliers | Advances to Suppliers Advance to suppliers consists of balances paid to suppliers for services and materials that have not been provided or received. Advance to suppliers are short -term |
Prepayments and other assets | Prepayments and other assets Prepayment and other assets primarily consist of deferred IPO cost, loans to third -parties well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written off against allowance for credit losses after management has determined that the likelihood of collection is not probable. The allowance for credit losses for prepayments and other assets both were approximately $ nil Deferred IPO costs represent the incremental costs incurred for the Company’s initial public offering (“IPO”). These costs have been charged against the gross proceeds of the IPO subsequent to year end. Deferred IPO costs primary include specific legal and professional consulting costs. As of December 31, 2023 and 2022, the deferred IPO costs were $854,226 and $601,805, respectively. |
Property and equipment | Property and equipment Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight -line Useful life Machinery equipment 10 years Electronic equipment 3 years Transportation equipment 4 years Other equipment 5 years Leasehold improvement Over the shorter of the lease term or estimated useful lives Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. |
Intangible Assets | Intangible Assets Intangible assets consist primarily of software. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight -line Category Estimated useful life Software 5 years |
Leases | Leases The Company adopted Topic 842 on January 1, 2022 using the modified retrospective transition approach. The Company has lease contracts for factory and office space under operating leases. The Company determines whether an arrangement constitutes a lease and records lease liabilities and right -of-use -of-use For leases with lease term less than one year (short -term -line |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long -lived -lived |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825 -10 -level • • • Unless otherwise disclosed, the fair value of the Company’s financial instruments, including cash, advances to suppliers, prepayments and other current assets, accounts payable, notes receivable, advance from customers, accrued expenses, short term bank loans, notes payable and taxes payable, approximates their recorded values due to their short -term -term |
Notes payable | Notes payable During the normal course of business, the Company regularly issues bank acceptance bills as a payment method to settle outstanding accounts payables with various suppliers. The Company records such bank acceptance bills as notes payable. Such notes payable is generally short term in nature due to their short maturity period of six to nine months. |
Revenue recognition | Revenue recognition The Company manufactures and distributes customized recycling equipment accessories and supplies. The Company has adopted ASU 2014 -09 The Company generates revenue primarily through the sale and delivery of promised goods or services to customers and recognizes revenue when control is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services and is recorded net of value -added -type Company’s contracts with customer are primarily on a fixed -price The Company determines its performance obligations arise from (i) sales of customized recycling equipment, accessories and supplies (“product component”) and (ii) provides warranty service, if applicable, as these deliverables are distinct in that customers can benefit from each service on its own and the Company’s promises to deliver the product or services are separately identifiable from each other in the contract. The standalone selling price of each distinct performance obligation in revenue recognition was determined using the adjusted market assessment approach. Revenue from sales of customized recycling, accessories and supplies equipment is recognized when the products are delivered and accepted by customers, which is the point when title has transferred and risk of ownership has passed. Return allowances is determined by an estimate of expected customer merchandise returns, which is calculated based on historical return patterns, and recorded as a refund liability included in accrued expenses and other liabilities. Revenues from service -type -type For the years ended December 31, 2023 and 2022, the disaggregation of revenue by the type of customers is as follows: For The Years Ended 2023 2022 Industrial waste industry $ 18,307,063 $ 21,680,006 Municipal waste industry 2,474,619 4,378,853 Others* 359,995 4,557,181 Total $ 21,141,677 $ 30,616,040 * For the years ended December 31, 2023 and 2022, the disaggregation of revenue by the type of products are as follows: For The Years Ended 2023 2022 Equipment sales $ 16,947,434 $ 26,739,104 Accessories and supplies sales 3,140,510 2,629,209 Warranty service 1,053,733 1,247,727 Total $ 21,141,677 $ 30,616,040 Contract liabilities are reflected as advance from customers on the consolidated balance sheet. Contract liabilities relate to payments received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfilment of performance obligations. As of December 31, 2023 and 2022, the advances from customer amounted to $5,325,566 and $2,879,042, respectively, which were expected to be recognized as revenue within 12 months. During the years ended December 31, 2023 and 2022, the Company recognized $2,779,392 and $3,555,929 as revenue that was included in the balance of advance from customers at December 31, 2022 and 2021, respectively. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs, which include costs related to the selection of products and their delivery to customers, are presented in cost of product sales and selling expenses. Shipping and handling costs were $415,847 and $453,031 for the years ended December 31, 2023 and 2022, respectively. |
Government Subsidies | Government Subsidies The Company’s PRC subsidiaries received government subsidies according to related policy from local government. The Company receives government subsidies that the Chinese government has not specified its purpose for and are not tied to future trends or performance of the Company; receipt of such subsidy income is not contingent upon any further actions or performance of the Company and the amounts do not have to be refunded under any circumstances. The unspecific purpose subsidies are recognized as other income upon receipt as further performance by the Company is not required. For the years ended December |
Research and development expenses | Research and development expenses Research and development expenses include costs directly associated with the Company’s research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. For the years ended December |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2023 and 2022. As of December 31, 2023, the tax years ended December 31, 2018 through December 31, 2023 for the Company’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. |
Value added tax (“VAT”) | Value added tax (“VAT”) Revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable net of payments in the accompanying consolidated financial statements. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Earnings per Share | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS 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 |
Foreign currency translation | Foreign currency translation Since the Company operates primarily in the PRC, the Company’s functional currency is the Chinese Yuan (“RMB”). The Company’s consolidated financial statements have been translated into the reporting currency U.S. Dollars (“US$”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2023 December 31, 2022 Year-end spot rate US$1=RMB 7.0999 US$1=RMB 6.8972 Average rate US$1=RMB 7.0809 US$1=RMB 6.7290 |
Comprehensive income | Comprehensive income Comprehensive income consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using US$ as its functional currency. |
Risks and Uncertainties | Risks and Uncertainties In December 2019, a novel strain of coronavirus (COVID -19 -19 -19 now an established and ongoing health issue which no longer constitutes a public health emergency of international concern. For the years ended December 31, 2023 and 2022, the COVID -19 -19 -19 |
Segment reporting | Segment reporting The Company follows ASC 280, “ Segment Reporting.” -maker -lived |
Concentrations of risks | Concentrations of risks a. Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts at the balance sheet dates. As of December 31, 2023 and 2022, the aggregate amount of cash and restricted cash of $4,682,392 and $2,291,064, respectively, was held at major financial institutions in PRC, where there is a RMB 500,000 deposit insurance limit for a legal entity’s aggregated balance at each bank. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the PRC. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy to provide for allowance for credit losses based on the individual customer’s and supplier’s financial condition, credit history, and the current economic conditions. b. For the year ended December 31, 2023, a customer accounted for approximately 13% of the Company’s total revenues. For the year ended December 31, 2022, no customer accounted for more than 10% of the Company’s total revenues. As of December 31, 2023, no customer accounted for more than 10% of the Company’s accounts receivable. As of December 31, 2022, one customer accounted for approximately 12% of the Company’s accounts receivable. c. For the years ended December 31, 2023 and 2022, no supplier accounted for more than 10% of the Company’s total purchases. As of December 31, 2023, one supplier accounted for approximately 12% of the Company’s total accounts payable. As of December 31, 2022, no supplier accounted for more than 10% of the Company’s total accounts payable. d. A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Company’s financial results reported in the U.S. dollar terms without giving effect to any underlying changes in the Company’s business or results of operations. Currently, the Company’s assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU No. 2016 -13 -19 -04 -05 -13 In December 2023, the FASB issued ASU No. 2023 -09 -09 -09 In October 2021, the FASB issued ASU No. 2021 -08 -08 -04 In October 2023, the FASB issued ASU 2023 -06 -06 -06 The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of income and comprehensive income and statements of cash flows. |
Organization and Business Des_2
Organization and Business Description (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Description [Abstract] | |
Schedule of Subsidiaries | As of December 31, 2023, the Company’s subsidiaries are as follows: Subsidiaries Date of Incorporation Jurisdiction of Formation Percentage of direct/indirect Economic Ownership Principal Activities Harden International Limited (“Harden HK”) April 20, 2021 Hong Kong, PRC 100% Investment Holding Harwell Technologies Ltd. (“WOFE”) May 13, 2021 Guangdong Province, PRC 100% Technical service Harden Machinery Ltd. (“Harden Machinery”) May 10, 2010 Guangdong Province, PRC 100% Manufacture of recycling equipment Dr. Shredder Technologies Ltd. (“Dr. Shredder”) September 29, 2017 Guangdong Province, PRC 55% owned subsidiary of Harden Machinery Manufacture of recycling equipment |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Property and Equipment of Useful Lives | Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight -line Useful life Machinery equipment 10 years Electronic equipment 3 years Transportation equipment 4 years Other equipment 5 years Leasehold improvement Over the shorter of the lease term or estimated useful lives |
Schedule of Intangible Assets and Accumulated Amortization | Intangible assets consist primarily of software. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight -line Category Estimated useful life Software 5 years |
Schedule of Revenue Type of Customers | For the years ended December 31, 2023 and 2022, the disaggregation of revenue by the type of customers is as follows: For The Years Ended 2023 2022 Industrial waste industry $ 18,307,063 $ 21,680,006 Municipal waste industry 2,474,619 4,378,853 Others* 359,995 4,557,181 Total $ 21,141,677 $ 30,616,040 * For The Years Ended 2023 2022 Equipment sales $ 16,947,434 $ 26,739,104 Accessories and supplies sales 3,140,510 2,629,209 Warranty service 1,053,733 1,247,727 Total $ 21,141,677 $ 30,616,040 |
Schedule of Currency Exchange Rates | The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2023 December 31, 2022 Year-end spot rate US$1=RMB 7.0999 US$1=RMB 6.8972 Average rate US$1=RMB 7.0809 US$1=RMB 6.7290 |
Short-Term Investment (Tables)
Short-Term Investment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Investment [Abstract] | |
Schedule of Short-Term Investment | Short -term December 31, 2023 December 31, 2022 Financial products by Industrial Bank $ — $ 2,105,246 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: December 31, 2023 December 31, 2022 Accounts receivable $ 6,463,697 $ 8,103,191 Less: allowance for credit losses (688,880 ) (1,028,126 ) Accounts receivable, net $ 5,774,817 $ 7,075,065 |
Schedule of Allowance for Credit Losses | Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ 1,028,126 $ 313,969 Provision 430,508 759,707 Recovery (217,203 ) — Written off (522,167 ) (3,332 ) Foreign exchange translation effect (30,384 ) (42,218 ) Ending balance $ 688,880 $ 1,028,126 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2023 December 31, 2022 Raw materials $ 2,918,623 $ 3,178,710 Finished goods 168,278 300,895 Working in process (“WIP”) 6,613,837 4,122,633 Ending balance $ 9,700,738 $ 7,602,238 |
Advance to Suppliers (Tables)
Advance to Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Advance to Suppliers [Abstract] | |
Schedule of Advance to Suppliers | Advance to suppliers consisted of the following: December 31, 2023 December 31, 2022 Advance to suppliers $ 200,851 $ 738,482 Less: allowance for credit losses (19,928 ) (607,195 ) Advance to suppliers, net $ 180,923 $ 131,287 |
Schedule of Allowance for Credit Losses Movement | Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ 607,195 $ 750,342 Provision — — Recovery (169,377 ) (88,379 ) Written off (401,921 ) — Foreign exchange translation effect (15,969 ) (54,768 ) Ending balance $ 19,928 $ 607,195 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Assets (Tables) [Line Items] | |
Schedule of Prepayments and Other Current Assets | Prepayments and other current assets consisted of the following: December 31, 2023 December 31, 2022 Other receivable $ 334,106 $ 303,928 Deferred IPO cost 854,226 601,805 Prepaid income tax 267,701 — Value added tax recoverable 670,008 7,736 Total 2,126,041 913,469 Less: non-current portion 84,241 86,754 Less: allowance for credit losses — — Prepayments and other current assets $ 2,041,800 $ 826,715 |
Schedule of Allowance for Credit Losses | Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ 1,028,126 $ 313,969 Provision 430,508 759,707 Recovery (217,203 ) — Written off (522,167 ) (3,332 ) Foreign exchange translation effect (30,384 ) (42,218 ) Ending balance $ 688,880 $ 1,028,126 |
Prepaid Expenses and Other Current Assets [Member] | |
Prepayments and Other Assets (Tables) [Line Items] | |
Schedule of Allowance for Credit Losses | Allowance for credit losses movement: December 31, 2023 December 31, 2022 Balance as of beginning $ — $ 103,632 Provision 537 10,699 Recovery — (98,150 ) Written off (537 ) (10,699 ) Foreign exchange translation effect — (5,482 ) Ending balance $ — $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net, consist of the following: December 31, 2023 December 31, 2022 Machinery equipment $ 1,348,033 $ 1,377,291 Electronic equipment 270,631 257,164 Transportation equipment 225,577 212,333 Other equipment 125,010 130,607 Leasehold improvement 589,306 555,718 Subtotal 2,558,557 2,533,113 Less: accumulated depreciation and amortization (1,505,497 ) (1,304,410 ) Property and equipment, net $ 1,053,060 $ 1,228,703 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Amortization Expenses | The Company states intangible assets at cost less accumulated amortization. Amortization expenses were $33,472 and $29,683 for the years ended December December 31, 2023 December 31, 2022 Software $ 248,815 $ 160,730 Less: accumulated amortization (145,370 ) (115,333 ) Intangible assets, net $ 103,445 $ 45,397 |
Schedule of Future Amortization Expenses | The estimated future amortization expenses are as follows: Twelve months ending December 31, Estimated Amortization Expense 2024 $ 32,401 2025 20,122 2026 19,106 2027 18,549 2028 13,267 Total $ 103,445 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases was as follows: December 31, 2023 December 31, 2022 Right-of-use assets, net $ 337,096 $ 657,207 Operating lease liabilities – current 274,209 284,479 Operating lease liabilities – non-current 70,863 381,054 Total $ 345,072 $ 665,533 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates for All of Operating Leases | The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.25 years 2.24 years Weighted average discount rate (per annum) 4.27 % 4.29 % |
Schedule of Maturities of Operating Lease Liabilities | The following is a schedule of maturities of operating lease liabilities as of December 31, 2023: Twelve months ending December 31, 2024 $ 283,472 2025 71,358 Total future minimum lease payments 354,830 Less: imputed interest 9,758 Present value of operating lease liabilities $ 345,072 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Expenses and Other Liabities [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following: December 31, 2023 December 31, 2022 Wages payable $ 691,391 $ 881,827 Other payable to venders 307,459 307,174 Sales refund provision 322,629 365,778 Accrued expenses and other liabilities $ 1,321,479 $ 1,554,779 |
Short-Term Bank Loan (Tables)
Short-Term Bank Loan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Bank Loan [Abstract] | |
Schedule of Short-Term Bank Loan | Short -term December 31, 2023 December 31, 2022 Loan from Bank of China (Due on March 22, 2023) $ — $ 435,000 Loan from Bank of China (Due on March 21, 2024) 422,400 — Total $ 422,400 $ 435,000 |
Long-Term Bank Loans (Tables)
Long-Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Bank Loans [Abstract] | |
Schedule of Long-Term Bank Loans | Long -term December 31, 2023 December 31, 2022 Loan from Bank of China (Due on March 16, 2023) (1) $ — $ 348,000 Loan from Bank of China (Due on March 20, 2026) (2) 422,400 — Loan from Bank of China (Due on March 22, 2025) (3) 506,880 580,000 Loan from Industrial Bank (Due on May 29, 2025) (4) 492,800 652,500 Less: current maturity of long-term bank loan (239,360 ) (551,000 ) Long-term bank loan $ 1,182,720 $ 1,029,500 (1) -year -year (2) -year -year (3) -year -year (4) -year -year |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Advance to related party supplier | Related parties with transactions and related party relationships Name of Related Party Relationship to the Company Zhongshan Dimaike Environmental Technology Co., Ltd. (“Dimaike”)* An entity controlled by the Company’s shareholders Zhongshan Lvduosen Machinery Manufacturing Co., Ltd. (“Lvduosen”)* An entity partially owned by the Company’s shareholders Zhongshan Xuanrui Cutting Tools Technology Co., Ltd. (“Xuanrui”) An entity partially owned by the Company’s shareholders Shenzhen Zaijiede Solid-Waste Disposal Co., Ltd. (“Zaijiede”) An entity controlled by the Company’s shareholders. Harden Industries Ltd. An entity controlled by the Company’s shareholders. * * |
Schedule of Accounts Receivable From Related Party | Accounts receivable from a related party December 31, 2023 December 31, 2022 Zaijiede $ 172,974 $ 475,781 Total $ 172,974 $ 475,781 |
Schedule of Sales to a Related Party | Sales to a related party For the Years Ended 2023 2022 Zaijiede $ 89,478 $ 114,154 Total $ 89,478 $ 114,154 |
Schedule of Advance to related party supplier | Advance to related parties suppliers consisted of the following: December 31, 2023 December 31, 2022 Lvduosen $403,730 $368,711 Xuanrui 299,015 269,971 Dimaike 110,902 165,109 Total $813,647 $803,791 |
Schedule of Purchased Raw Materials | For the years ended December 31, 2023 and 2022, the Company purchased raw materials from Lvduosen, Xuanrui and Dimaike. For the Years Ended 2023 2022 Purchases from related parties Lvduosen (1) $ 928,844 $ 1,085,233 Xuanrui (2) 815,785 1,073,656 Dimaike (3) 773,046 1,227,335 Total $ 2,517,675 $ 3,386,224 (1) (2) (3) -drive |
Schedule Due to Related Parties | Due to related parties December 31, 2023 December 31, 2022 Due to related parties Jiawen Miao $ 2,572,909 $ 2,567,950 Harden Industries Ltd. 80,780 64,780 Fan Zhang 46,464 47,850 Total $ 2,700,153 $ 2,680,580 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
Schedule of Income/(loss) Before Provision for Income Taxes | Income/(loss) before provision for income taxes is attributable to the following geographic location for the years ended December 31, 2023 and 2022: For the Years Ended 2023 2022 PRC $ 526,142 $ 844,611 Foreign (497 ) (396 ) Total Income before income taxes $ 525,645 $ 844,215 |
Schedule of Income Tax Provision (benefit) | The components of income tax provision (benefit) are as follows: For the Years Ended 2023 2022 Current $ — $ — Deferred (79,088 ) (146,200 ) Total provision (benefit) for income taxes $ (79,088 ) $ (146,200 ) |
Schedule of Deferred Tax Assets | The following table summarizes deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities: As of December 31, 2023 2022 Deferred tax assets: Allowance for credit losses and others $ 170,398 $ 333,775 Deferred revenue 532,651 530,412 Sales refund liability 49,598 56,106 Deferred expenses 23,682 26,357 Net operating loss 280,745 89,585 Deferred tax assets: 1,057,074 1,036,235 Valuation allowance: (50,869 ) (81,231 ) Deferred tax assets, net $ 1,006,205 $ 955,004 |
Schedule of Effective Tax | The following table reconciles the China statutory tax to the Company’s effective tax for the years ended December 31, 2023 and 2022: For the Years Ended 2023 2022 China Statutory income tax rate (25%) 131,411 211,054 Effect of preferential tax rate 54,498 91,908 Research & Development (“R&D”) tax credit* (394,808 ) (520,567 ) Change in valuation allowance (28,090 ) 69,151 NOL true up 74,281 — Non-deductible items and others** 83,620 2,254 Effective tax rate $ (79,088 ) $ (146,200 ) * ** -deductible |
Schedule of Taxes Payable | Taxes payable consist of the following: December 31, 2023 December 31, 2022 Value added tax payable $ — $ 355,409 Other taxes payable 22,539 124,524 Total taxes payable $ 22,539 $ 479,933 |
Unaudited Condensed Financial_2
Unaudited Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Unaudited Condensed Financial Information of the Parent Company [Abstract] | |
Schedule of Parent Company Balance Sheets | December 31, 2023 December 31, 2022 Unaudited Unaudited ASSETS Cash $ 194 $ 514 Deferred IPO cost 38,696 22,844 Investment in subsidiaries 10,633,542 10,324,386 Total Assets $ 10,672,432 $ 10,347,744 Liabilities: Due to related parties $ 67,780 $ 51,780 Total Liabilities 67,780 51,780 SHAREHOLDERS’ EQUITY Ordinary shares, $0.001 par value, 100,000,000 shares authorized, 10,000,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively* $ 10,000 $ 10,000 Additional paid-in capital 167,705 167,705 Statutory reserves 1,360,464 1,360,464 Retained earnings 9,662,121 9,052,271 Accumulated other comprehensive loss (595,638 ) (294,476 ) Total Shareholders’ Equity 10,604,652 10,295,964 Total Liabilities and Shareholders’ Equity $ 10,672,432 $ 10,347,744 * |
Schedule of Parent Company Statements of Income and Comprehensive Income | For the Years Ended 2023 2022 Unaudited Unaudited Equity in earnings of subsidiaries $ 610,318 $ 1,029,870 General and administrative expenses (468 ) (380 ) NET INCOME 609,850 1,029,490 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment $ (301,162 ) $ (790,857 ) COMPREHENSIVE INCOME $ 308,688 $ 238,633 |
Schedule of Parent Company Statements of Statements of Cash Flows | For the Years Ended 2023 2022 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 609,850 $ 1,029,490 Adjustments to reconcile net income to net cash used in operating activities: Prepayments and other assets (15,852 ) (22,844 ) Equity in earnings of subsidiaries (610,318 ) (1,029,870 ) NET CASH USED IN OPERATING ACTIVITIES (16,320 ) (23,225 ) Proceeds from a related party 16,000 23,016 NET CASH PROVIDED BY FINANCING ACTIVITIES 16,000 23,016 CHANGES IN CASH (320 ) (209 ) CASH, BEGINNING OF YEAR 514 723 CASH, END OF YEAR $ 194 $ 514 |
Organization and Business Des_3
Organization and Business Description (Details) - Schedule of Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Harden International Limited (“Harden HK”) [Member] | |
Schedule of Subsidiaries [Line Items] | |
Date of Incorporation | Apr. 20, 2021 |
Jurisdiction of Formation | Hong Kong, PRC |
Percentage of direct/indirect Economic Ownership | 100% |
Principal Activities | Investment Holding |
Harwell Technologies Ltd. (“WOFE”) [Member] | |
Schedule of Subsidiaries [Line Items] | |
Date of Incorporation | May 13, 2021 |
Jurisdiction of Formation | Guangdong Province, PRC |
Percentage of direct/indirect Economic Ownership | 100% |
Principal Activities | Technical service |
Harden Machinery Ltd. (“Harden Machinery”) [Member] | |
Schedule of Subsidiaries [Line Items] | |
Date of Incorporation | May 10, 2010 |
Jurisdiction of Formation | Guangdong Province, PRC |
Percentage of direct/indirect Economic Ownership | 100% |
Principal Activities | Manufacture of recycling equipment |
Harden Machinery Ltd. (“Harden Machinery”) [Member] | |
Schedule of Subsidiaries [Line Items] | |
Date of Incorporation | Sep. 29, 2017 |
Jurisdiction of Formation | Guangdong Province, PRC |
Percentage of direct/indirect Economic Ownership | 55% |
Principal Activities | Manufacture of recycling equipment |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 CNY (¥) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Short term investment amount | $ 2,105,246 | |||
Credit loss rate | 10% | 12% | ||
Accounts receivables allowance for credit loss | $ 688,880 | $ 1,028,126 | ||
Impairment for inventory | 395,161 | 558,783 | ||
Allowance for credit losses balance amount | ||||
Deferred IPO costs | 854,226 | 601,805 | ||
Warranty service amount | 21,141,677 | 30,616,040 | ||
Advance from customers | 5,325,566 | 2,879,042 | ||
Revenue | 2,779,392 | $ 3,555,929 | ||
Shipping and handling costs | 3,727,839 | 4,247,353 | ||
Government subsidies | 217,695 | 286,888 | ||
Surtaxes refund amount | 355,409 | |||
Research and development expenses | $ 1,581,779 | 2,091,600 | ||
Tax benefit rate | 50% | |||
Restricted cash | $ 457,023 | $ 88,327 | ||
Deposits (in Yuan Renminbi) | ¥ | ¥ 500,000 | |||
Percentage of revenue | 13% | 10% | 10% | |
Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
VAT rate | 13% | |||
Restricted cash | $ 4,682,392 | $ 2,291,064 | ||
Accounts Receivable [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Credit losses for prepayments and other assets | 430,508 | 759,707 | ||
PRC [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Surtaxes refund amount | 709,962 | 326,798 | ||
IPO [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Credit losses for prepayments and other assets | ||||
Warranty Service [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Warranty service amount | 1,053,733 | 1,247,727 | ||
Shipping and Handling [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Shipping and handling costs | $ 415,847 | $ 453,031 | ||
No Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Customer accounts receivable percentage | 10% | |||
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Customer accounts receivable percentage | 12% | |||
Supplies [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Allowance for credit losses balance amount | $ 19,928 | $ 607,195 | ||
No Supplier [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Customer accounts receivable percentage | 10% | 10% | 10% | |
One Supplier [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Customer accounts receivable percentage | 12% | 10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment of Useful Lives | Dec. 31, 2023 |
Machinery and Equipment [Member] | |
Schedule of Property and Equipment of Useful Lives [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Energy Equipment [Member] | |
Schedule of Property and Equipment of Useful Lives [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Transportation Equipment [Member] | |
Schedule of Property and Equipment of Useful Lives [Line Items] | |
Property and equipment estimated useful lives | 4 years |
Other equipment [Member] | |
Schedule of Property and Equipment of Useful Lives [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Leasehold Improvements [Member] | |
Schedule of Property and Equipment of Useful Lives [Line Items] | |
Leasehold improvement | Over the shorter of the lease term or estimated useful lives |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Assets and Accumulated Amortization | Dec. 31, 2023 |
Schedule Of Intangible Assets And Accumulated Amortization Abstract | |
Intangible assets of amortized estimated useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Revenue Type of Customers - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | $ 21,141,677 | $ 30,616,040 | |
Industrial waste industry [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | 18,307,063 | 21,680,006 | |
Municipal waste industry [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | 2,474,619 | 4,378,853 | |
Others [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | [1] | 359,995 | 4,557,181 |
Equipment sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | 16,947,434 | 26,739,104 | |
Accessories and supplies sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | 3,140,510 | 2,629,209 | |
Warranty Service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Disaggregation of revenues | $ 1,053,733 | $ 1,247,727 | |
[1]Other customers included manufacturers, medical disposal companies, commercial trading companies, and environmental technology companies, etc. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Currency Exchange Rates | Dec. 31, 2023 | Dec. 31, 2022 |
US [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Year-end spot rate | 1 | 1 |
Average rate | 1 | 1 |
RMB [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Year-end spot rate | 7.0999 | 6.8972 |
Average rate | 7.0809 | 6.729 |
Short-Term Investment (Details)
Short-Term Investment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Investment [Abstract] | |
Prospective annual rate | 2% |
Short-Term Investment (Detail_2
Short-Term Investment (Details) - Schedule of Short-Term Investment - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Short-Term Investment [Abstract] | ||
Financial products by Industrial Bank | $ 2,105,246 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Net [Line Items] | ||
Allowance for credit losses recovery | ||
Accounts Receivable [Member] | ||
Accounts Receivable, Net [Line Items] | ||
Company recorded a provision for credit losses | $ 430,508 | $ 759,707 |
Allowance for credit losses recovery | $ 217,203 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable - Accounts receivables [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 6,463,697 | $ 8,103,191 |
Less: allowance for credit losses | (688,880) | (1,028,126) |
Accounts receivable, net | $ 5,774,817 | $ 7,075,065 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of Allowance for Credit Losses - Accounts receivables [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Allowance for Credit Losses [Line Items] | ||
Balance as of beginning | $ 1,028,126 | $ 313,969 |
Provision | 430,508 | 759,707 |
Recovery | (217,203) | |
Written off | (522,167) | (3,332) |
Foreign exchange translation effect | (30,384) | (42,218) |
Ending balance | $ 688,880 | $ 1,028,126 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventories [Abstract] | ||
Raw materials | $ 2,918,623 | $ 3,178,710 |
Finished goods | 168,278 | 300,895 |
Working in process (“WIP”) | 6,613,837 | 4,122,633 |
Ending balance | $ 9,700,738 | $ 7,602,238 |
Advance to Suppliers (Details)
Advance to Suppliers (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Advance to Suppliers [Line Items] | ||
Allowance for credit losses | $ 169,377 | $ 88,379 |
Advance to suppliers [Member] | ||
Advance to Suppliers [Line Items] | ||
provision for credit losses |
Advance to Suppliers (Details)
Advance to Suppliers (Details) - Schedule of Advance to Suppliers - Advance to suppliers [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Advance to Suppliers [Line Items] | ||
Advance to suppliers | $ 200,851 | $ 738,482 |
Less: allowance for credit losses | (19,928) | (607,195) |
Advance to suppliers, net | $ 180,923 | $ 131,287 |
Advance to Suppliers (Details_2
Advance to Suppliers (Details) - Schedule of Allowance for Credit Losses Movement - Advance to suppliers [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Allowance for Credit Losses Movement [Line Items] | ||
Balance as of beginning | $ 607,195 | $ 750,342 |
Provision | ||
Recovery | (169,377) | (88,379) |
Written off | (401,921) | |
Foreign exchange translation effect | (15,969) | (54,768) |
Ending balance | $ 19,928 | $ 607,195 |
Prepayments and Other Assets (D
Prepayments and Other Assets (Details) - Prepaid Expenses and Other Current Assets [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Prepayments and Other Assets [Line Items] | ||
Recovery for credit losses | $ 98,150 | |
Provision for credit losses | $ 537 | $ 10,699 |
Prepayments and Other Assets _2
Prepayments and Other Assets (Details) - Schedule of Prepayments and Other Current Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Prepayments and Other Current Assets [Line Items] | ||
Other receivable | $ 334,106 | $ 303,928 |
Deferred IPO cost | 854,226 | 601,805 |
Prepaid income tax | 267,701 | |
Value added tax recoverable | 670,008 | 7,736 |
Total | 2,126,041 | 913,469 |
Less: non-current portion | 84,241 | 86,754 |
Less: allowance for credit losses | ||
Prepayments and other current assets | $ 2,041,800 | $ 826,715 |
Prepayments and Other Assets _3
Prepayments and Other Assets (Details) - Schedule of Allowance for Credit Losses - Prepayments and other current assets [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Allowance for Credit Losses [Line Items] | ||
Balance as of beginning | $ 103,632 | |
Provision | 537 | 10,699 |
Recovery | (98,150) | |
Written off | (537) | (10,699) |
Foreign exchange translation effect | (5,482) | |
Ending balance |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property and Equipment, Net [Abstract] | ||
Depreciation and amortization expense | $ 258,582 | $ 262,781 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,558,557 | $ 2,533,113 |
Less: accumulated depreciation and amortization | (1,505,497) | (1,304,410) |
Property and equipment, net | 1,053,060 | 1,228,703 |
Machinery equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,348,033 | 1,377,291 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 270,631 | 257,164 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 225,577 | 212,333 |
Other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 125,010 | 130,607 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 589,306 | $ 555,718 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible Assets, Net [Abstract] | ||
Amortization expenses | $ 33,472 | $ 29,683 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Amortization Expenses - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Amortization Expenses [Line items] | ||
Less: accumulated amortization | $ (145,370) | $ (115,333) |
Intangible assets, net | 103,445 | 45,397 |
Software [Member] | ||
Schedule of Amortization Expenses [Line items] | ||
Intangible assets, gross | $ 248,815 | $ 160,730 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Future Amortization Expenses - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Future Amortization Expenses [Abstract] | ||
2024 | $ 32,401 | |
2025 | 20,122 | |
2026 | 19,106 | |
2027 | 18,549 | |
2028 | 13,267 | |
Total | $ 103,445 | $ 45,397 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Total lease expense | $ 290,296 | $ 287,815 |
Measurement of lease liabilities | 290,405 | 279,282 |
Amortization of ROU assets | $ 301,930 | $ 256,137 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Supplemental Balance Sheet Information Related to Operating Leases - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases [Abstract] | ||
Right-of-use assets, net | $ 337,096 | $ 657,207 |
Operating lease liabilities - current | 274,209 | 284,479 |
Operating lease liabilities - non-current | 70,863 | 381,054 |
Total | $ 345,072 | $ 665,533 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Weighted Average Remaining Lease Terms and Discount Rates for All of Operating Leases | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Weighted Average Remaining Lease Terms and Discount Rates for All of Operating Leases [Abstract] | ||
Weighted average remaining lease term (years) | 1 year 3 months | 2 years 2 months 26 days |
Weighted average discount rate (per annum) | 4.27% | 4.29% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Maturities of Operating Lease Liabilities | Dec. 31, 2023 USD ($) |
Schedule of Maturities of Operating Lease Liabilities [Abstract] | |
2024 | $ 283,472 |
2025 | 71,358 |
Total future minimum lease payments | 354,830 |
Less: imputed interest | 9,758 |
Present value of operating lease liabilities | $ 345,072 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabities (Details) - Schedule of Accrued Expenses and Other Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accrued Expenses and Other Liabities [Abstract] | ||
Wages payable | $ 691,391 | $ 881,827 |
Other payable to venders | 307,459 | 307,174 |
Sales refund provision | 322,629 | 365,778 |
Accrued expenses and other liabilities | $ 1,321,479 | $ 1,554,779 |
Short-Term Bank Loan (Details)
Short-Term Bank Loan (Details) | 1 Months Ended | 12 Months Ended | |||||||
Mar. 15, 2024 USD ($) | Mar. 22, 2023 USD ($) | Mar. 22, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 15, 2024 CNY (¥) | Mar. 17, 2023 USD ($) | Mar. 17, 2023 CNY (¥) | Mar. 16, 2022 CNY (¥) | |
Short-Term Bank Loan [Line Items] | |||||||||
Short term loan | $ 422,400 | ¥ 3,000,000 | ¥ 3,000,000 | ||||||
Percentage of liability to asset ratio | 70% | 70% | |||||||
Repayment of loan | $ 423,600 | ||||||||
One-year loan prime rate [Member] | |||||||||
Short-Term Bank Loan [Line Items] | |||||||||
Interest rate | 0.05% | 0.05% | 0.05% | ||||||
Forecast [Member] | |||||||||
Short-Term Bank Loan [Line Items] | |||||||||
Amount of loan interest rate | $ 422,400 | ¥ 3,000,000 | |||||||
Loan from Bank of China [Member] | |||||||||
Short-Term Bank Loan [Line Items] | |||||||||
Repayment of loan | $ 435,000 | ¥ 3,000,000 | |||||||
Interest expense | $ 21,800 | $ 13,142 | |||||||
Loan from Bank of China [Member] | Forecast [Member] | |||||||||
Short-Term Bank Loan [Line Items] | |||||||||
Percentage of floating interest rate | 0.15% |
Short-Term Bank Loan (Details)
Short-Term Bank Loan (Details) - Schedule of Short-Term Bank Loan - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Short-term bank loan, Total | $ 422,400 | $ 435,000 |
Loan from Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank loan, Total | 435,000 | |
Loan from Bank of China One [Member] | ||
Short-Term Debt [Line Items] | ||
Short-term bank loan, Total | $ 422,400 |
Short-Term Bank Loan (Details_2
Short-Term Bank Loan (Details) - Schedule of Short-Term Bank Loan (Parentheticals) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loan from Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Due date | Mar. 22, 2023 | Mar. 22, 2023 |
Loan from Bank of China One [Member] | ||
Short-Term Debt [Line Items] | ||
Due date | Mar. 21, 2024 | Mar. 21, 2024 |
Long-Term Bank Loans (Details)
Long-Term Bank Loans (Details) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Nov. 21, 2024 USD ($) | Nov. 21, 2024 CNY (¥) | Oct. 02, 2024 USD ($) | Oct. 02, 2024 CNY (¥) | Aug. 21, 2024 USD ($) | Aug. 21, 2024 CNY (¥) | May 21, 2024 USD ($) | May 21, 2024 CNY (¥) | Apr. 03, 2024 USD ($) | Apr. 03, 2024 CNY (¥) | Apr. 02, 2024 USD ($) | Apr. 02, 2024 CNY (¥) | Feb. 21, 2024 USD ($) | Feb. 21, 2024 CNY (¥) | Oct. 02, 2023 CNY (¥) | Apr. 02, 2023 CNY (¥) | Oct. 14, 2022 USD ($) | Oct. 14, 2022 CNY (¥) | Aug. 21, 2022 USD ($) | Aug. 21, 2022 CNY (¥) | May 21, 2022 USD ($) | May 21, 2022 CNY (¥) | Apr. 04, 2022 USD ($) | Apr. 04, 2022 CNY (¥) | Feb. 21, 2022 USD ($) | Feb. 21, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Apr. 03, 2023 USD ($) | Apr. 03, 2023 CNY (¥) | May 30, 2022 USD ($) | May 30, 2022 CNY (¥) | Mar. 23, 2022 USD ($) | Mar. 23, 2022 CNY (¥) | Jan. 07, 2020 USD ($) | Jan. 07, 2020 CNY (¥) | |
Long-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||||||||||||
Company signed a loan agreement | $ 422,400 | ¥ 3,000,000 | $ 725,000 | ¥ 5,000,000 | $ 580,000 | ¥ 4,000,000 | $ 459,900 | ¥ 3,000,000 | ||||||||||||||||||||||||||||||
Assets and liability percentage | 70% | 70% | 70% | 70% | 70% | 70% | ||||||||||||||||||||||||||||||||
Repayment of value | $ (35,200) | ¥ 250,000 | ¥ 150,000 | ¥ 150,000 | $ (21,750) | ¥ 150,000 | $ (35,200) | ¥ 250,000 | $ (35,200) | ¥ 250,000 | $ (21,750) | ¥ 150,000 | $ (35,200) | ¥ 250,000 | $ (46,500) | ¥ 300,000 | ||||||||||||||||||||||
Repayment equal percentage | 5% | 5% | 5% | 5% | ||||||||||||||||||||||||||||||||||
Interest expense amounted (in Dollars) | $ | $ 59,263 | $ 53,753 | ||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||
Long-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||||||||||||
Repayment of value | $ (35,200) | ¥ 250,000 | ||||||||||||||||||||||||||||||||||||
One-Year Loan Prime Rate [Member] | ||||||||||||||||||||||||||||||||||||||
Long-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||||||||||||
Interest rate | 0.40% | 0.40% | 1.10% | 1.10% | 0.40% | 0.40% | 0.40% | 0.40% | ||||||||||||||||||||||||||||||
Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||||
Long-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||||||||||||
Repayment of value | ¥ | ¥ 200,000 | ¥ 200,000 | ||||||||||||||||||||||||||||||||||||
Forecast [Member] | ||||||||||||||||||||||||||||||||||||||
Long-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||||||||||||
Repayment of value | $ (35,200) | ¥ 250,000 | $ (42,240) | ¥ 150,000 | $ (35,200) | ¥ 250,000 | $ (28,160) | ¥ 200,000 | $ (42,240) | ¥ 150,000 | ||||||||||||||||||||||||||||
Forecast [Member] | Loan from Bank of China [Member] | ||||||||||||||||||||||||||||||||||||||
Long-Term Bank Loans [Line Items] | ||||||||||||||||||||||||||||||||||||||
Repayment of value | $ (28,160) | ¥ 200,000 |
Long-Term Bank Loans (Details)
Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans [Line Items] | |||
Less: current maturity of long-term bank loan | $ (239,360) | $ (551,000) | |
Long-term bank loan | 1,182,720 | 1,029,500 | |
Loan from Bank of China (Due on March 16, 2023) [Member] | |||
Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans [Line Items] | |||
Loan from | [1] | 348,000 | |
Loan from Bank of China (Due on March 20, 2026) [Member] | |||
Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans [Line Items] | |||
Loan from | [2] | 422,400 | |
Loan from Bank of China (Due on March 22, 2025) [Member] | |||
Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans [Line Items] | |||
Loan from | [3] | 506,880 | 580,000 |
Loan from Industrial Bank (Due on May 29, 2025) [Member] | |||
Long-Term Bank Loans (Details) - Schedule of Long-Term Bank Loans [Line Items] | |||
Loan from | [4] | $ 492,800 | $ 652,500 |
[1]On January 7, 2020, the Company signed a loan agreement with Bank of China (BOC) to obtain a three -year -year -year -year -year -year -year -year |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | May 31, 2021 USD ($) | May 31, 2021 CNY (¥) | ||
Related Party Transactions [Line Items] | |||||||
Rebate customer | $ 135,635 | ||||||
Related sales revenue | 0.40% | 0.40% | |||||
Purchased conveyor amount | $ 2,517,675 | $ 3,386,224 | |||||
Purchase percentage | 6% | ||||||
Related parts amount | 14,827,833 | $ 21,839,009 | |||||
Aggregate loan amount | $ 2,334,500 | ¥ 16.1 | |||||
Unpaid loan and interest amount | 2,572,909 | 2,567,950 | |||||
Interest expenses | $ 160,629 | $ 306,141 | |||||
Interest rate percentage | 3.50% | 10% | |||||
Interest-free working capital loans due on demand | $ 46,464 | $ 47,850 | |||||
Harwell Technologies Ltd [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Owned subsidiary percentage | 100% | 100% | |||||
Forecast [Member] | Jiawen Miao [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Repaid amount | $ 2,028,198 | ¥ 14.4 | |||||
Lvduosen [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Purchase percentage | 7% | 6% | |||||
Lvduosen [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Purchased conveyor amount | [1] | $ 928,844 | $ 1,085,233 | ||||
Xuanrui [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Purchased conveyor amount | [2] | $ 815,785 | $ 1,073,656 | ||||
Purchase percentage | 6% | 5% | |||||
Hydraulic Pump [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Related parts amount | $ 773,046 | $ 1,227,335 | |||||
Harwell Technologies Ltd [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Interest expenses | 79,566 | 239,246 | |||||
Harden Industries Ltd [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Due amount | $ 80,780 | $ 64,780 | |||||
[1]For the years ended December 31, 2023 and 2022, the Company purchased conveyor in the amount of $928,844 and $1,085,233 from Lvduosen, respectively. The purchase from Lvduosen accounted for approximately 7% and 6% of the Company’s total purchase for the years ended December 31, 2023 and 2022, respectively.[2]For the years ended December 31, 2023 and 2022, the Company purchased production parts in the amount of $815,785 and $1,073,656 from Xuanrui, respectively. The purchase from Xuanrui accounted for approximately 6% of the Company’s total purchase for both the years ended December 31, 2023 and 2022. |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Related Parties with Transactions and Related Party Relationships | 12 Months Ended | |
Dec. 31, 2023 | ||
Related Party Transaction [Line Items] | ||
Name of Related Party | Relationship to the Company | [1] |
Zhongshan Dimaike Environmental Technology Co., Ltd. (“Dimaike”) [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Party | An entity controlled by the Company’s shareholders | [2] |
Zhongshan Lvduosen Machinery Manufacturing Co., Ltd. (“Lvduosen”) [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Party | An entity partially owned by the Company’s shareholders | |
Zhongshan Xuanrui Cutting Tools Technology Co., Ltd. (“Xuanrui”) [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Party | An entity partially owned by the Company’s shareholders | |
Shenzhen Zaijiede Solid-Waste Disposal Co., Ltd. (“Zaijiede”) [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Party | An entity controlled by the Company’s shareholders. | |
Harden Industries Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Name of Related Party | An entity controlled by the Company’s shareholders. | |
[1]It was previously known as Zhongshan Demark Environmental Technology Co., Ltd. (“Demark”).[2]It was previously known as Zhongshan Daosen Machinery Co., Ltd. (“Daosen”). |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Accounts Receivable From Related Party - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable From Related Party [Line Items] | ||
Accounts receivable from related party | $ 172,974 | $ 475,781 |
Zaijiede [Member] | ||
Schedule of Accounts Receivable From Related Party [Line Items] | ||
Accounts receivable from related party | $ 172,974 | $ 475,781 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of Sales to a Related Party - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Sales to Related Parties [Line Items] | ||
Sales to related parties | $ 89,478 | $ 114,154 |
Zaijiede [Member] | ||
Schedule of Sales to Related Parties [Line Items] | ||
Sales to related parties | $ 89,478 | $ 114,154 |
Related Party Transactions (D_5
Related Party Transactions (Details) - Schedule of Advance to related party supplier - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Advance to related party supplier [Line Items] | ||
Advance to related party supplier | $ 813,647 | $ 803,791 |
Lvduosen [Member] | ||
Schedule of Advance to related party supplier [Line Items] | ||
Advance to related party supplier | 403,730 | 368,711 |
Xuanrui [Member] | ||
Schedule of Advance to related party supplier [Line Items] | ||
Advance to related party supplier | 299,015 | 269,971 |
Dimaike [Member] | ||
Schedule of Advance to related party supplier [Line Items] | ||
Advance to related party supplier | $ 110,902 | $ 165,109 |
Related Party Transactions (D_6
Related Party Transactions (Details) - Schedule of Purchased Raw Materials - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule of Purchased Raw Materials [Line Items] | |||
Purchases from related parties | $ 2,517,675 | $ 3,386,224 | |
Lvduosen [Member] | |||
Schedule of Purchased Raw Materials [Line Items] | |||
Purchases from related parties | [1] | 928,844 | 1,085,233 |
Xuanrui [Member] | |||
Schedule of Purchased Raw Materials [Line Items] | |||
Purchases from related parties | [2] | 815,785 | 1,073,656 |
Dimaike [Member] | |||
Schedule of Purchased Raw Materials [Line Items] | |||
Purchases from related parties | [3] | $ 773,046 | $ 1,227,335 |
[1]For the years ended December 31, 2023 and 2022, the Company purchased conveyor in the amount of $928,844 and $1,085,233 from Lvduosen, respectively. The purchase from Lvduosen accounted for approximately 7% and 6% of the Company’s total purchase for the years ended December 31, 2023 and 2022, respectively.[2]For the years ended December 31, 2023 and 2022, the Company purchased production parts in the amount of $815,785 and $1,073,656 from Xuanrui, respectively. The purchase from Xuanrui accounted for approximately 6% of the Company’s total purchase for both the years ended December 31, 2023 and 2022.[3]For the years ended December 31, 2023 and 2022, the Company purchased hydraulic pump and related parts in the amount of $773,046 and $1,227,335, respectively, from Dimaike to manufacture hydraulic -drive |
Related Party Transactions (D_7
Related Party Transactions (Details) - Schedule Due to Related Parties - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transactions (Details) - Schedule Due to Related Parties [Line Items] | ||
Due to related parties | $ 2,700,153 | $ 2,680,580 |
Jiawen Miao [Member] | ||
Related Party Transactions (Details) - Schedule Due to Related Parties [Line Items] | ||
Due to related parties | 2,572,909 | 2,567,950 |
Harden Industries Ltd [Member] | ||
Related Party Transactions (Details) - Schedule Due to Related Parties [Line Items] | ||
Due to related parties | 80,780 | 64,780 |
Fan Zhang [Member] | ||
Related Party Transactions (Details) - Schedule Due to Related Parties [Line Items] | ||
Due to related parties | $ 46,464 | $ 47,850 |
Taxes (Details)
Taxes (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Taxes [Line Items] | ||||
statutory income tax rate | 25% | |||
Enterprise income tax rate | 25% | |||
Entitled to an income tax rate | 15% | |||
Reduced income tax rate | 15% | |||
Taxable losses | $ 1,788,882 | $ 325,596 | ¥ 12,705,130 | ¥ 2,245,486 |
Foreign taxes (in Dollars) | $ 497 | $ 396 | ||
Basic per share (in Dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Diluted per share (in Dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Valuation allowance (in Dollars) | $ 50,869 | $ 81,231 | ||
PRC tax regulations percentage | 200% | 200% | ||
Hong Kong [Member] | ||||
Taxes [Line Items] | ||||
statutory income tax rate | 16.50% | |||
PRC [Member] | ||||
Taxes [Line Items] | ||||
Foreign taxes (in Dollars) | ||||
high-tech enterprise [Member] | ||||
Taxes [Line Items] | ||||
Reduced income tax rate | 15% | |||
HNTEs [Member] | ||||
Taxes [Line Items] | ||||
Reduced income tax rate | 15% | 15% |
Taxes (Details) - Schedule of I
Taxes (Details) - Schedule of Income/(loss) Before Provision for Income Taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income/(loss) Before Provision for Income Taxes [Abstract] | ||
PRC | $ 526,142 | $ 844,611 |
Foreign | (497) | (396) |
Total Income before income taxes | $ 525,645 | $ 844,215 |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of Income Tax Provision (benefit) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income Tax Provision (benefit) [Abstract] | ||
Current | ||
Deferred | (79,088) | (146,200) |
Total provision (benefit) for income taxes | $ (79,088) | $ (146,200) |
Taxes (Details) - Schedule of D
Taxes (Details) - Schedule of Deferred Tax Assets - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred tax assets: | ||
Allowance for credit losses and others | $ 170,398 | $ 333,775 |
Deferred revenue | 532,651 | 530,412 |
Sales refund liability | 49,598 | 56,106 |
Deferred expenses | 23,682 | 26,357 |
Net operating loss | 280,745 | 89,585 |
Deferred tax assets: | 1,057,074 | 1,036,235 |
Valuation allowance: | (50,869) | (81,231) |
Deferred tax assets, net | $ 1,006,205 | $ 955,004 |
Taxes (Details) - Schedule of E
Taxes (Details) - Schedule of Effective Tax - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule of Effective Tax [Abstract] | |||
China Statutory income tax rate (25%) | $ 131,411 | $ 211,054 | |
Effect of preferential tax rate | 54,498 | 91,908 | |
Research & Development (“R&D”) tax credit | [1] | (394,808) | (520,567) |
Change in valuation allowance | (28,090) | 69,151 | |
NOL true up | 74,281 | ||
Non-deductible items and others | [2] | 83,620 | 2,254 |
Effective tax rate | $ (79,088) | $ (146,200) | |
[1]According to PRC tax regulations, 200% of current year R&D expense approved by the local tax authority may be deducted from tax income for the years ended December 31, 2023 and 2022.[2]Non -deductible |
Taxes (Details) - Schedule of_3
Taxes (Details) - Schedule of Effective Tax (Parentheticals) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Effective Tax [Abstract] | |
China Statutory income tax rate | (25.00%) |
Taxes (Details) - Schedule of T
Taxes (Details) - Schedule of Taxes Payable - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Taxes Payable [Abstract] | ||
Value added tax payable | $ 355,409 | |
Other taxes payable | 22,539 | 124,524 |
Total taxes payable | $ 22,539 | $ 479,933 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Jul. 12, 2021 USD ($) | Jun. 03, 2021 $ / shares shares | May 14, 2021 USD ($) | May 14, 2021 CNY (¥) | Mar. 23, 2021 USD ($) shares | Mar. 23, 2021 CNY (¥) shares | |
Shareholders' Equity [Line Items] | |||||||||
Common stock par value | $ / shares | [1] | $ 0.001 | $ 0.001 | ||||||
Common stock share authorized | [1] | 100,000,000 | 100,000,000 | ||||||
Common stock share issued | [1] | 10,000,000 | 10,000,000 | ||||||
Issuance of shares | 9,950,000 | ||||||||
Cash consideration | $ 2,464,429 | $ 2,464,429 | ¥ 16,080,400 | ||||||
Investment | $ 61,122 | ¥ 398,274 | |||||||
Exchange of shares | 50,000 | 50,000 | |||||||
Common stock shares outstanding | [1] | 10,000,000 | 10,000,000 | ||||||
Reserve rate | 10% | ||||||||
Registered capital rate | 50% | ||||||||
Statutory laws rate | $ | $ 1,360,464 | $ 1,360,464 | |||||||
Board of Directors Chairman [Member] | |||||||||
Shareholders' Equity [Line Items] | |||||||||
Non interest bearing loan | $ 2,467,433 | ¥ 16,100,000 | |||||||
Common Stock [Member] | |||||||||
Shareholders' Equity [Line Items] | |||||||||
Common stock par value | $ / shares | $ 0.001 | $ 0.001 | |||||||
Common stock share authorized | 100,000,000 | ||||||||
Common stock share issued | 10,000,000 | 9,950,000 | |||||||
Common stock shares outstanding | 10,000,000 | ||||||||
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Unaudited Condensed Financial_3
Unaudited Condensed Financial Information of the Parent Company (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Unaudited Condensed Financial Information of the Parent Company [Line Items] | |
Accumulative statutory reserves | 50% |
Restricted net assets percentage | 25% |
PRC [Member] | |
Unaudited Condensed Financial Information of the Parent Company [Line Items] | |
Statutory reserves percentage | 10% |
Subsidiary exceed net assets | 25% |
Unaudited Condensed Financial_4
Unaudited Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Balance Sheets - Parent Company [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Cash | $ 194 | $ 514 | |
Deferred IPO cost | 38,696 | 22,844 | |
Investment in subsidiaries | 10,633,542 | 10,324,386 | |
Total Assets | 10,672,432 | 10,347,744 | |
Liabilities: | |||
Total Liabilities | 67,780 | 51,780 | |
SHAREHOLDERS’ EQUITY | |||
Ordinary shares, $0.001 par value, 100,000,000 shares authorized, 10,000,000 shares issued and outstanding as of December 31, 2023 and 2022, respectively* | [1] | 10,000 | 10,000 |
Additional paid-in capital | 167,705 | 167,705 | |
Statutory reserves | 1,360,464 | 1,360,464 | |
Retained earnings | 9,662,121 | 9,052,271 | |
Accumulated other comprehensive loss | (595,638) | (294,476) | |
Total Shareholders’ Equity | 10,604,652 | 10,295,964 | |
Total Liabilities and Shareholders’ Equity | 10,672,432 | 10,347,744 | |
Related Party [Member] | |||
Liabilities: | |||
Due to related parties | $ 67,780 | $ 51,780 | |
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Unaudited Condensed Financial_5
Unaudited Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Balance Sheets (Parentheticals) - Parent Company [Member] - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, shares par value (in Dollars per share) | [1] | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | [1] | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | [1] | 10,000,000 | 10,000,000 |
Ordinary shares, shares outstanding | [1] | 10,000,000 | 10,000,000 |
[1]Shares and per share data are presented on a retroactive basis to reflect the reorganization. |
Unaudited Condensed Financial_6
Unaudited Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Statements of Income and Comprehensive Income - Parent Company [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Statement of Income Captions [Line Items] | ||
Equity in earnings of subsidiaries | $ 610,318 | $ 1,029,870 |
General and administrative expenses | (468) | (380) |
NET INCOME | 609,850 | 1,029,490 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustment | (301,162) | (790,857) |
COMPREHENSIVE INCOME | $ 308,688 | $ 238,633 |
Unaudited Condensed Financial_7
Unaudited Condensed Financial Information of the Parent Company (Details) - Schedule of Parent Company Statements of Statements of Cash Flows - Parent Company [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 609,850 | $ 1,029,490 |
Prepayments and other assets | (15,852) | (22,844) |
Equity in earnings of subsidiaries | (610,318) | (1,029,870) |
NET CASH USED IN OPERATING ACTIVITIES | (16,320) | (23,225) |
Proceeds from a related party | 16,000 | 23,016 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 16,000 | 23,016 |
CHANGES IN CASH | (320) | (209) |
CASH, BEGINNING OF YEAR | 514 | 723 |
CASH, END OF YEAR | $ 194 | $ 514 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 30, 2024 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Oct. 19, 2023 CNY (¥) | Dec. 31, 2022 USD ($) |
Subsequent Events [Line Items] | |||||
Capital amount | ¥ 26,530,000 | ||||
Invest in equipment and cash | ¥ 13,000,000 | ||||
Equipment and cash ownership percentage | 49% | 49% | |||
Equipment value | $ | $ 1,053,060 | $ 1,228,703 | |||
Inventory | $ | $ 9,700,738 | $ 7,602,238 | |||
Minde Low-Carbon [Member] | |||||
Subsequent Events [Line Items] | |||||
Investment amount | ¥ 13,530,000 | ||||
Equity interest percentage | 51% | 51% | |||
Equipment value | ¥ 12,617,120 | ||||
Forecast [Member] | |||||
Subsequent Events [Line Items] | |||||
Cash investment | ¥ 382,880 | ||||
Equipment [Member] | |||||
Subsequent Events [Line Items] | |||||
Inventory | $ 1,137,114 | ¥ 8,076,091 |