Cover
Cover | 12 Months Ended |
Dec. 31, 2023 | |
Entity Addresses [Line Items] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | This registration statement contains two prospectuses, as set forth below. |
Entity Registrant Name | Rubber Leaf Inc |
Entity Central Index Key | 0001893657 |
Entity Tax Identification Number | 32-0655276 |
Entity Incorporation, State or Country Code | NV |
Entity Address, Address Line One | 318 N. Carson Street, |
Entity Address, Address Line Two | Ste. 208 |
Entity Address, City or Town | Carson City |
Entity Address, State or Province | NV |
Entity Address, Postal Zip Code | 89701 |
City Area Code | (916) |
Local Phone Number | 576-7000 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Qixing Road, Weng’ao Industrial Zone |
Entity Address, Address Line Two | Chunhu Subdistrict |
Entity Address, Address Line Three | Fenghua District |
Entity Address, City or Town | Ningbo |
City Area Code | +86 |
Local Phone Number | 0574 - 88733850 |
Contact Personnel Name | Xingxiu Hua |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 41,687 | $ 51,417 |
Restricted cash | 1,312,362 | |
Inventories, net | 760,610 | 1,338,477 |
Other current assets | 237,266 | 234,232 |
Total current assets | 8,775,183 | 9,851,757 |
Noncurrent assets: | ||
Plant and equipment, net | 9,061,473 | 6,799,784 |
Intangible assets, net | 2,001,113 | 2,103,335 |
Total assets | 19,837,769 | 18,754,876 |
Current liabilities: | ||
Notes payable | 1,312,362 | |
Advances from customers | 354,059 | 213,087 |
Retainage payable | 38,138 | |
Other current liabilities | 375,213 | 656,223 |
Total current liabilities | 20,075,328 | 17,931,005 |
Noncurrent liabilities: | ||
Long-term borrowing | 20,546 | |
Total liabilities | 20,095,874 | 17,931,005 |
Commitment and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock: 40,000,000 shares authorized, no shares issued and outstanding | ||
Common stock: 100,000,000 shares authorized, 41,109,458 shares and 40,976,458 shares issued and outstanding as of December 31, 2023 and 2022 | 41,110 | 40,977 |
Additional paid-in capital | 2,799,035 | 2,400,168 |
Accumulated deficit | (3,217,901) | (1,819,757) |
Accumulated other comprehensive income | 119,651 | 202,483 |
Total stockholders’ (deficit) equity | (258,105) | 823,871 |
Total liabilities and stockholders’ equity | 19,837,769 | 18,754,876 |
Nonrelated Party [Member] | ||
Current assets: | ||
Accounts receivables | 130,230 | |
Advances to vendors | 60,361 | 64,385 |
Current liabilities: | ||
Borrowings | 3,434,980 | 2,404,394 |
Accounts payables | 5,789,650 | 3,182,178 |
Related Party [Member] | ||
Current assets: | ||
Accounts receivables | 5,209,169 | 4,665,735 |
Advances to vendors | 222,529 | 10,353 |
Deposit to vendor -related party | 2,113,331 | 2,174,796 |
Current liabilities: | ||
Borrowings | 183,881 | 61,909 |
Accounts payables | 7,253,516 | 7,538,348 |
Other payables - related parties | $ 2,684,029 | $ 2,524,366 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 40,000,000 | 40,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 41,109,458 | 40,976,458 |
Common stock, shares outstanding | 41,109,458 | 40,976,458 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 1,396,152 | $ 5,259,447 |
Sales-related party | 8,593,998 | 5,388,728 |
Total | 9,990,150 | 10,648,175 |
Cost of sales-production | 10,061,164 | 9,149,717 |
Loss on factory relocation | 284,987 | |
Total cost of sales | 10,346,151 | 9,149,717 |
Gross (loss) profit | (356,001) | 1,498,458 |
Operating Expenses | ||
Selling expenses | 86,751 | 68,321 |
General & administrative expenses | 710,457 | 917,408 |
Total operation expenses | 797,208 | 985,729 |
(Loss) income from operation | (1,153,209) | 512,729 |
Other income (expenses): | ||
Interest expenses | (237,581) | (187,528) |
Other income (expenses) | 8,713 | (19,159) |
Gain on selling of imperfections | 462,368 | |
Total other (expenses) income, net | (228,868) | 255,681 |
Net (loss) income before income taxes | (1,382,077) | 768,410 |
Income tax expenses | 16,067 | 11,029 |
Net (loss) income | (1,398,144) | 757,381 |
Foreign currency translation, net of tax | (82,832) | 11,585 |
Comprehensive (loss) income | $ (1,480,976) | $ 768,966 |
Earnings per share | ||
Basic income (loss) per share | $ 0 | $ 0.02 |
Diluted income (loss) per share | $ 0 | $ 0.02 |
Weighted average common shares outstanding, basic | 41,014,936 | 40,976,458 |
Weighted average common shares outstanding, diluted | 41,014,936 | 40,976,458 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2021 | $ 40,977 | $ 2,400,168 | $ (2,577,138) | $ 190,898 | $ 54,905 | |
Balance, shares at Dec. 31, 2021 | 40,976,458 | |||||
Net loss | 757,381 | 757,381 | ||||
Foreign currency translation, net tax | 11,585 | 11,585 | ||||
Balance at Dec. 31, 2022 | $ 40,977 | 2,400,168 | (1,819,757) | 202,483 | 823,871 | |
Balance, shares at Dec. 31, 2022 | 40,976,458 | |||||
Net loss | (1,398,144) | (1,398,144) | ||||
Foreign currency translation, net tax | (82,832) | (82,832) | ||||
Issue of Shares | $ 133 | 398,867 | 399,000 | |||
Issue of Shares, shares | 133,000 | |||||
Balance at Dec. 31, 2023 | $ 41,110 | $ 2,799,035 | $ (3,217,901) | $ 119,651 | $ (258,105) | |
Balance, shares at Dec. 31, 2023 | 41,109,458 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flow from operating activities | ||
Net (loss) income | $ (1,398,144) | $ 757,381 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 599,436 | 660,784 |
Changes in operating assets and liabilities: | ||
Accounts receivables | (130,624) | |
Accounts receivables – related parties | (677,340) | (2,068,248) |
Advances to vendors - related parties | (241,111) | 426,155 |
Advance to vendors | 62,558 | (10,173) |
Other current assets | (41,946) | |
Inventories | 541,672 | (938,790) |
Right-of-use assets | (21,057) | |
Notes payable | (1,279,128) | 731,649 |
Accounts payables | 2,705,565 | 2,142,552 |
Accounts payables - related parties | (71,998) | 438,112 |
Advances from customers | 147,438 | (330,004) |
Retainage payable | (37,172) | (698,320) |
Other current liabilities | (263,284) | 162,307 |
Net cash (used in) provided by operating activities | (84,078) | 1,252,348 |
Cash flow from investing activities | ||
Loan receivable | (75,817) | |
Purchase of equipment and factory construction | (3,017,818) | (2,504,738) |
Net cash used in investing activities | (3,017,818) | (2,580,555) |
Cash flow from financing activities | ||
Share issuances for cash | 399,000 | |
Proceeds from to related parties | 318,471 | 2,398,588 |
Repayments of borrowings-related parties | (28,263) | (94,468) |
New borrowings | 7,150,529 | 1,981,864 |
Repayments of borrowings | (6,028,058) | (2,380,856) |
Net cash provided by financing activities | 1,811,679 | 1,905,128 |
Effect of exchange rate changes | (31,875) | 70,325 |
Increase in cash | (1,322,092) | 647,246 |
Cash and restricted cash, beginning | 1,363,779 | 716,533 |
Cash and restricted cash, ending | 41,687 | 1,363,779 |
Supplemental disclosures of cash flow | ||
Interest paid | 207,078 | 94,572 |
Income taxes paid | 106,101 | 3,861 |
Noncash investing and financing activities | ||
Construction in progress additions | $ 2,917,906 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1 - Organization and Description of Business Rubber Leaf Sealing Products (Zhejiang) Co., Ltd. (the “RLSP”) was established in July 8, 2019 and is located in Fenghua District, Ningbo, Zhejiang province, the People’s Republic of China (“PRC”). It is engaged in the import and export trade, production and sales of synthetic rubber, rubber compound, car window seals, auto parts, etc. of integrated group companies. It has an integrated machinery production plant on PRC. RLSP, a well-known auto parts enterprise, is a first-tier supplier of well-known auto brands such as Dongfeng Motor and French Renault. RLSP has a registered capital of $ 20 Rubber Leaf Inc (the “Company” or “RLI”) was incorporated under the law of the State of Nevada on May 18, 2021 by Ms. Xingxiu Hua, the sole shareholder of RLSP. On May 27, 2021, the Company entered a share exchange agreement with Ms. Hua, pursuant to which, the Company issued 40,000,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. With respect to the audited financial statements as of and for the year ended December 31, 2023, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements include the accounts of Rubber Leaf Inc, the parent company and its wholly owned subsidiary in China - Rubber Leaf Sealing Products (Zhejiang) Co., Ltd. All intercompany transactions and balances were eliminated in consolidation. Reclassifications Certain amounts on the prior-years’ consolidated balance sheets, consolidated statements of operations and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. Signiant estimates are used in the collectability of accounts receivable, the useful lives and impairment of long-lived assets, the valuation of deferred tax assets, inventories reserve and provisions for income taxes, among others. Revenue Recognition The Company early adopted Accounting Standards Update (“ASU”) 2014-09, Accounting Standards Codification Topic 606, Revenue from Contracts with Customers We generate revenue through selling automotive rubber and plastic sealing strips under two models of supply: Model A (Direct Supply Model) Following successful on-site inspections by auto OEMs, RLSP secures listing in its directories as a first-tier supplier that directly provides products to the OEM. For example, eGT is an auto OEM, and we serve as their first-tier supplier. eGT directly signs purchase or supply agreements with RLSP. This positions RLSP to independently procure raw materials, manufacture final products and directly deliver finished goods to the warehouses of the auto OEMs. RLSP fulfills its performance obligation upon the delivery of finished products to their warehouses, following a subsequent quality inspection approved by them. Simultaneously, they may request product replacements for disqualified items. Ownership and control of our finished products transfer to customers upon successful inspection and acceptance into an OEM’s warehouse. Revenue recognition occurs upon the transfer of control of our products to a customer, with payments made directly by the OEM. Model B (Indirect Supply Model) RLSP receives the purchase orders from our related parties-Shanghai Xinsen and Xinsen Sealing Products (Hangzhou) Co., Ltd (“Hangzhou Xinsen”) (collectively named as “Xinsen Group” for two companies together). The Company’s Chief Executive Officer, President and Chairperson, Ms. Xingxiu Hua, previously held a 90 70 Effective October 1, 2022, Ms. Hua reduced her ownership of Shanghai Xinsen from 90% to 15%, and accordingly reduced her indirect ownership of Hangzhou Xinsen from 63% to 10.5% We employ two distinct forms of outsourced processing under Model B. 1) RLSP purchases raw materials and subcontracts production to third-party manufacturers for WIP. Once WIP is finished and delivered to RLSP’s warehouse, RLSP performs certain manual processes, such as welding and constructing in order to meet the specification of the purchase orders. The completion of the final products is contingent upon a rigorous quality inspection conducted by RLSP, ensuring they meet the highest standards. 2) RLSP purchases raw materials and subcontracts third party manufacturers to produce finished products. RLSP will trace and observe each step of production undertaken by third-party manufacturers, with a primary focus on the final quality control step. The finished products are delivered to the warehouses of Xinsen Group’s upstream first-tier suppliers, either from our locations or those of the third-party manufacturers. Quality inspection is carried out by assigned inspectors from Xinsen Group upon delivery. RLSP fulfills its obligation when the finished products reach Xinsen Group’s customers and pass the qualified quality inspection. In the event of products that do not pass inspection, the Xinsen Group initiates a product replacement process. Upon confirmation of quality and quantity, and acceptance of finished products into Xinsen Group’s customers’ warehouses, invoices are provided to us as proof of delivery. The date of the invoices signifies the transfer of ownership and control of the finished products under model B from us to Xinsen Group and indirectly to its upstream first-tier suppliers. We recognize at such time as Xinsen Group’s customers accept delivery of products. Cost of revenue Cost of revenues is comprised of raw materials consumed, manufacturing costs, third party logistics and distribution costs including packaging, freight, transportation, shipping and handling costs, and inventory adjustment due to the defectives and inventory count. Cash and Cash Equivalents Cash and cash equivalents include bank deposits and liquid investments with original maturities of three months or less as of the purchase date of such investments. Restricted cash The Company had notes payable outstanding with Ningbo bank and was required to keep certain amounts on deposit that were subject to withdrawal restrictions. The notes payables were generally short term in nature due to its maturity period of six months or less, thus restricted cash was classified as a current asset. Concentration risk The Company maintains cash with banks in the United States of America (“USA”) and PRC. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In China, a depositor has up to RMB 500,000 250,000 Financial instruments that potentially subject the Company to significant concentrations of credit risk are cash and cash equivalents and accounts receivable. As of December 31, 2023 and 2022, $ Nil 1,240,272 Major customers For the years ended December 31, 2023 and 2022, the Company’s revenues from two major customers accounted more than 10% of the total revenue were as following: Schedule of Concentration Risk Percent Year ended As of Year ended As of Amount % of Total Revenue Accounts Receivable % of Total Accounts Receivable Amount % of Total Revenue Accounts Receivable % of Total Accounts Receivable Customer A $ 1,280,555 13 % - - % $ 5,259,447 49 % $ - - % Customer B $ 8,593,998 86 % $ 5,209,169 100 % $ 5,338,728 50 % $ 4,665,735 100 % ● Customer A: eGT New Energy Automotive Co., Ltd. (“eGT”), an unrelated party. ● Customer B: Shanghai Xinsen Import & Export Co., Ltd (“Shanghai Xinsen”), a related party that sells RLSP’s products to Shanghai Hongyang Sealing Co., Ltd. (“Shanghai Hongyang”) and Wuhu Huichi Auto Parts Co., Ltd. (“Wuhu Huichi”), two unrelated parties of RLSP and the Company, and certified first-tier suppliers of Auto Manufacturers. Major vendors For the years ended December 31, 2023 and 2022, the Company made purchases from the major vendors accounted more than 10% of the total purchases were as following: Year ended As of Year ended As of Amount % of Total Purchase Accounts payable % of Total Accounts Payable Amount % of Total Purchase Accounts payable % of Total Accounts Payable Vendor A $ 8,552,684 95 % $ 2,871,033 40 % $ 5,549,968 67 % $ 2,384,085 32 % Vendor B - - $ 4,364,105 60 % $ 79,608 1 % $ 5,135,351 68 % Vendor C $ 438,230 5 % - - $ 2,626,103 32 % - - ● Vendor A: Shanghai Haozong Rubber & Plastic Technology Co., Ltd. (“Shanghai Haozong”), a related party. ● Vendor B: Shanghai Huaxin Economic and Trade Co., Ltd. (“Shanghai Huaxin”), a related party, purchase amounts and accounts payable balances include retainage payables. ● Vendor C: Shanghai Yongliansen Import and Export Trading Company (“Yongliansen”), a related party. Accounts Receivable Accounts receivables are reported at their net realizable value. Any value adjustments are booked directly against the relevant receivable. We have standard payment terms that generally require payment within approximately 30 to 60 days. Management performs ongoing credit evaluations of its customers. An allowance for potentially uncollectible accounts is provided based on history, economic conditions, and composition of the accounts receivable aging. As of December 31, 2023 and 2022 no credit risk identified and no allowance for doubtful accounts. Inventories, net Inventories consist of raw materials and finished products, and are stated at the lower of cost or net realizable value. Cost is calculated by applying the weighted -average method and physically applied first-in-first-out method (FIFO) in inventory stock in and out. The Company regularly reviews inventory quantities on hand and writes down to its net realizable value any inventory that it believes to be impaired. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. Advances to vendors From time to time, we paid advances to our vendors in order to secure our purchase orders or as retainers required pursuant to various purchase agreements related to production and the 2 nd Property and equipment Property and equipment are initially recorded at their historical cost. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives of the depreciable assets: ● Land use rights: 50 ● Leasehold improvement: shorter of the estimate useful life or lease term ● Factory and Building: 47 ● Factory equipment: 3 36 ● Auto vehicles: 4 ● Office equipment and furniture: 4 10 Construction in progress (“CIP”) includes pre-construction costs, construction costs, interest incurred on financing, amortization of land use right during the construction period, insurance and overhead costs related to construction. Interest of borrowings specific for the construction project and amortization of land use rights are capitalized under CIP when development activities commence, and end when the qualifying assets are ready for their intended use. Intangible Assets All land in the PRC is owned by the PRC government and cannot be sold to any individual or company. The Company has recorded the amounts paid to the PRC government when acquired long-term interests of land use rights under intangible assets. This type of arrangement is common for the use of land in the PRC. The Company amortizes land use rights based on the term of the respective land use rights granted, which generally ranges from 15 50 Impairment of Long-Lived Assets The Company’s long-lived assets mainly include property and equipment, land use right recorded under intangible assets and right-of-use assets obtained through operating lease. In accordance with ASC 360, Property, Plant, and Equipment, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of a long-lived asset, or group of assets, as appropriate, may not be recoverable. If the aggregate undiscounted future net cash flows expected to result from the use and the eventual disposition of a long-lived asset is less than its carrying value, then the Company would recognize an impairment loss based on the excess of the carrying value over the fair value. For the years ended December 31, 2023 and 2022, the Company determined there was no Notes payable Short-term notes payable are lines of credit extended by banks. The banks in-turn issue the Company a bankers acceptance note, which can be endorsed and assigned to vendors as payments for purchases. These short-term notes payable bears no interest and is guaranteed by the bank for its complete face value and usually matures within three to six-month period. The banks usually require the Company to deposit a certain amount of cash at the bank as a guarantee deposit, which is classified on the balance sheet as restricted cash. As of December 31, 2023 and 2022, RLSP held $ Nil 1,312,362 Advances from customers From time to time, we received advances from our customers, which are made normally under sales frame contracts, each sales transaction will be initiated by purchase orders received under the frame contracts. The advances have no interest bearing, normally settled along with purchase/sales transactions within 60 to 180 days. Retainage Payables For equipment purchased from Shanghai Huaxin in the PRC, a related party, by RLSP in the PRC, the Company typically retains a portion of the purchase invoices, typically 3-5%, for 12 to 24 months to ensure the quality of equipment after installation during the qualifying warranty period Nil 38,138 Income Taxes We are governed by the Income Tax Law of the PRC and the United States. The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a 21 25 Value added tax The Company is subject to value added tax (“VAT”). The applicable VAT rate is 13 Earnings Per Share The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. Pursuant to ASC 260-10-55, EPS computations should be based on the facts and circumstances of the transaction for reorganization. The Company calculated its EPS retrospectively akin to a normal share issuance as if the reorganization incurred from the inception. The Company does not have any potentially dilutive instruments as of December 31, 2023 and 2022, and, thus, anti-dilution issues are not applicable. Fair Value of Financial Instruments The Company’s balance sheets include certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2023 and 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash and cash equivalent, restricted cash, accounts receivables, advances to vendors, inventories, other current assets, accounts payables, advances from customers and other current liabilities. For short term borrowings and notes payable, the Company concluded the carrying values are a reasonable estimate of fair values because of the short period of time between the origination and repayment and as their stated interest rates approximate current rates available. Operating Leases The Company adopted ASC 842 since its inception. The Company determines if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on its consolidated balance sheet. Operating lease assets represent its right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using its incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term. Related Parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. The Company follows ASC 850, Related Party Disclosures, Foreign Currency Amounts reported in the condensed consolidated financial statements are stated in United States dollars, unless stated otherwise. The Company’s subsidiary in the PRC use the Chinese renminbi (RMB) as their functional currency and the holding company - RLI uses the United States dollar as their functional currency. For subsidiaries that use the local currency as the functional currency, all assets and liabilities are translated to United States dollars using exchange rates in effect at the end of the respective periods and the results of operations have been translated into United States dollars at the weighted average rates during the periods the transactions were recognized. Resulting translation gains or losses are recognized as a component of other comprehensive income (loss). In accordance with ASC 830, Foreign Currency Matters (ASC 830), the Company translates the assets and liabilities into United States dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into United States dollar are recorded in stockholders’ equity as part of accumulated other comprehensive income. Further, foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Gains and losses on those foreign currency transactions are included in other income (expense), net for the period in which exchange rates change. Comprehensive Income (Loss) The Company accounts for comprehensive income (loss) in accordance with ASC 220, Income Statement-Reporting Comprehensive Income Segment Information Operating segments are defined as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the executive team, which is comprised of the chief executive officer and the chief financial officer. Based on the financial information presented to and reviewed by the chief operating decision maker in deciding how to allocate the resources and in assessing the performance, the Company has determined that it has two Recent Accounting Standard Adopted In June 2016, the FASB issued ASC Update No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASC update introduces new guidance for the accounting for credit losses on financial instruments within its scope. A new model, referred to as the current expected credit losses model, requires an entity to determine credit-related impairment losses for financial instruments held at amortized cost and to estimate these expected credit losses over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider both historical and current information, reasonable and supportable forecasts, as well as estimates of prepayments. The estimated credit losses and subsequent adjustment to such loss estimates will be recorded through an allowance account which is deducted from the amortized cost of the financial instrument, with the offset recorded in current earnings. ASC No. 2016-13 also modifies the impairment model for available-for-sale debt securities. The new model will require an estimate of expected credit losses only when the fair value is below the amortized cost of the asset, thus the length of time the fair value of an available-for-sale debt security has been below the amortized cost will no longer affect the determination of whether a credit loss exists. In addition, credit losses on available-for-sale debt securities will be limited to the difference between the security’s amortized cost basis and its fair value. The updated guidance is effective for all entities other than public companies’ fiscal years beginning after December 15, 2022. The Company has adopted this accounting standard, effective January 1, 2023. Management assessed the adoption of this standard on the effective date and concluded that the adoption did not have a material effect on the Company’s financial condition, results of operations, and cash flows during the year ended December 31, 2023. Accounting Standards Issued but Not Yet Adopted Income Tax Disclosures - In December 2023, the Financial Accounting Standards Board (FASB) released ASU No. 2023-09, titled “Income Taxes (Topic 740): Enhancements to Income Tax Disclosures” (referred to as “ASU 2023-09”). This new standard mandates the disclosure, on an annual basis, of specific categories in the rate reconciliation and the disaggregation of income taxes paid by jurisdiction. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2025. The Company anticipates that the adoption of this standard will not significantly impact its financial position, results of operations, or cash flows. In November 2023, the Financial Accounting Standards Board (FASB) released ASU 2023-07, titled “Enhancements to Reportable Segment Disclosures” (“ASU 2023-07”). This standard necessitates companies to provide additional, more comprehensive details regarding significant expenses of a reportable segment, even if there is only one such segment. Its purpose is to enhance disclosures related to a public entity’s reportable segments. ASU 2023-07 will be effective for fiscal years commencing after December 15, 2023, and for interim periods starting after December 15, 2024, with the option for early adoption. We are presently assessing the potential impact of adopting ASU 2023-07 on our consolidated financial statements. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 3 - Inventories, net Inventories consisted of raw rubber materials, finished goods of rubber products and others, and are stated at the lower of cost or net realizable value. As of December 31, 2023 and December 31, 2022, inventories consisted of the following: Schedule of Inventories December 31, 2023 December 31, 2022 Raw materials $ 12,761 $ 8,900 Finished goods, net 747,849 1,329,577 Total 760,610 1,338,477 Gain on selling of imperfection During the year 2021, the Company has identified the inventory in the amount of $ 709,479 545,975 462,368 As of December 31, 2023 and 2022, $ nil 9,649 |
Plant and equipment, net
Plant and equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Plant and equipment, net | Note 4 - Plant and equipment, net Schedule of Plant and Equipment December 31, December 31, 2023 2022 Equipment and machinery $ 5,469,683 $ 5,633,421 Factory and Building 5,455,619 - Furniture and office equipment 4,257 3,505 Auto vehicles 23,645 19,783 Leasehold improvement 118,673 122,124 Minus: Accumulated depreciation and amortization (2,010,404 ) (1,497,885 ) Plant and equipment, net 9,061,473 4,280,948 Construction in progress - 2,518,836 Property plant and equipment, net $ 9,061,473 $ 6,799,784 Upon obtained the right use of land, RLSP started to build the manufacture plant on the land. The Company capitalized the cost in related to the construction, including the interests related to the borrowings, the utilities occurred in the construction, the amortization of land use of right. On August 5, 2022, RLSP and Ningbo Rongsen Construction Co., Ltd (“Ningbo Rongsen”) signed a Construction Engineering Contract, with an agreed project cost of US $ 4,931,105 35 5,221,922 37,064,159 For the equipment used for manufacturing, the depreciation expense is included as part of manufacturing overhead, while the equipment used for general administrative are included in selling, general and administrative expense on the statements of operations. For the years ended December 31, 2023 and 2022, the depreciation and amortization expenses were $ 556,530 614,744 |
Intangible asset, net
Intangible asset, net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible asset, net | Note 5 – Intangible asset, net On October 21, 2020, RLSP purchased land use rights, for 50 2,064,554 13,729,900 0.1504 Intangible asset, net consists of the following: Schedule of Intangible Asset December 31, December 31, 2023 2022 Land use rights $ 2,138,833 $ 2,201,040 Less: Accumulated amortization (137,720 ) (97,705 ) Intangible asset, net 2,001,113 2,103,335 For the years ended December 31, 2023 and 2022, $ 42,906 46,039 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 6 – Borrowings On November 30, 2020, RLSP entered a one-year bank loan of $ 2,298,851 15 4.7 5.44 35.2 2 2,017,005 13 one On April 30, 2021, RLSP borrowed $ 774,401 5 1 June 15, 2021 Pursuant to the loan agreement, the interest rate will increase to 2% monthly if RLSP is in default of loan terms and the lender may further obtain 5% of RLSP’s ownership December 31, 2023 267,689 1.9 275,474 1.9 On September 1, 2021, RLSP borrowed $ 154,832 (RMB 1 million) short-term loan from an unrelated individual. The loan has an annual interest rate of 13 % with due date on August 31, 2022 . RLSP has had several round financing transactions with the individual since then. As of December 31, 2023 and 2022, the individual loan balances were $ 67,627 (RMB 0.48 million) and $ 98,591 (RMB 0.68 million), respectively. RMB 480,000 67,627 loan balance has no maturity date. The Company may repay the loan anytime and no interest further on. On September 1, 2021, RLSP borrowed $ 247,732 1.6 8% August 31, 2022 152,359 Nil 28,263 69,256 183,881 1.3 61,909 0.43 December 31, 2023 On November 30, 2021, RLSP borrowed $ 314,857 (RMB 2 million) in the form of a secured note 2.3 million. The loan has a two-year term with due date on November 19, 2023 . The loan balances were $ 288,348 and $ 135,357 as of December 31, 2023 and 2022, respectively. On March 2022, RLSP borrowed $ 20,901 10,451 10,149 On November 18, 2022, RLSP entered a one-year bank loan of $ 1,884,823 13 4.5 3.44 23.69 September 22, 2023 1,837,092 13 1,837,092 13 1,831,553 1,884,823 On September 14, 2023, RLSP borrowed $ 2,054,513 15 2.5 November 30, 2023 1,780,578 13 15 281,777 2 On October 20 and October 30, 2023 365,245 2.6 353,287 2.5 3 718,532 5.1 Interest expense primarily consists of the interest incurred on the bank loans, commercial & individual loans and minor bank service charges. For years ended December 31, 2023 and 2022, the Company recorded the interest expense of $ 237,581 187,528 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions Purchase In order to reduce the purchase cost and enhance the purchase power, the Company purchases the main raw materials from Yongliansen Import and Export Trading Company (“Yongliansen”) and Shanghai Haozong Rubber & Plastic Technology Co., Ltd. (“Shanghai Haozong”), and also purchases equipment and rubber products under indirect supply model from Shanghai Huaxin Economic and Trade Co., Ltd. (“Shanghai Huaxin”) during the year ended December 31, 2023 and 2022. The Company’s founder holds minor equity interests of the three suppliers directly or indirectly and one of the Company directors, Mr. Jun Tong holds 30 For the years ended December 31, 2023 and 2022, RLSP purchased raw materials from Yongliansen (“Vendor C”) in the total amount of $ 438,230 2,626,103 219,734 10,353 15 2,113,331 th For the years ended December 31, 2023 and 2022, RLSP purchased $ 8,552,684 5,549,968 2,871,033 2,384,085 For the years ended December 31, 2023 and 2022, RLSP purchased $ Nil 79,608 4,364,105 5,135,351 Nil 38,119 On December 25, 2021, RLSP signed a Payment Extension Agreement with Shanghai Huaxin regarding outstanding account payable balance, which was amended on August 14, 2022. Under the amended Payment Extension Agreement, RLSP and Shanghai Huaxin both agreed that the $ 6,835,124 accounts payable as of June 30, 2022 shall be paid based on the agreed-upon payment schedule, of which $ 746,480 accounts payable should be paid before December 31, 2022. During the years ended December 31, 2023 and 2022, the Company has paid $ 628,003 4,440,000 1,626,379 11,350,337 ), respectively 4,364,105 Sales under Indirect Supply Model In order to stabilize customer relationships and maintain long-term orders, we authorized two related parties - Shanghai Xinsen (“Customer B”) and Hangzhou Xinsen (“Customer C”) as our distributors. The Company’s President, Ms. Xingxiu Hua, holds 90 70 Effective on October 1, 2022, Ms. Hua reduced her ownership of Shanghai Xinsen from 90% to 15%, and so accordingly reduced her indirect ownership of Hangzhou Xinsen from 63% to 10.5%. Xinsen Group is a rubber product trading expert with 20 years of experience in the auto parts market, who charges 1% of the total sales amount before VAT tax as sales commission before September 30, 2022, and subsequently 0.25% effective from October 1, 2022 after the renegotiation between RLSP and Xinsen Group. The sales commission incurred in each period is recorded as part of selling expense of the Company For the years ended December 31, 2023 and 2022, RLSP had indirect sales through Shanghai Xinsen that were sold to two certified first-tier suppliers of the Auto Manufacturers $ 8,593,998 5,388,728 5,209,169 4,665,735 18,378 18,912 Others As of December 31, 2023 and 2022, our CEO Mrs. Xingxiu Hua and CFO Mr. Hua Wang funded the Company and RLSP in the total amounts of $ 2,684,029 2,524,366 125,000 2,055,415 17,772,925 126 |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 8 – Shareholders’ Equity RLSP was established on July 8, 2019 with registered capital of $ 20 125,000 2,684,029 From May to July 2023, the Company issued 133,000 3.00 399,000 |
Commitment and contingencies
Commitment and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment and contingencies | Note 9 - Commitment and contingencies On February 7, 2021, the landlord of the factory leased by RLSP filed a lawsuit against RLSP for default on lease payment pursuant to the lease agreement entered on November 11, 2019. The case was settled under the court mediation and a civil settlement was issued on April 20, 2021, pursuant to which, RLSP should pay the total unpaid balance of $ 46,454 300,000 24 58,855 380,000 RLSP extended the lease agreement multiple times with the landlord with the final extension to January 14, 2024 429,000 61,638 On July 5, 2022, Guangzhou FuRuiDe Metal Processing Machinery Manufacturing Co., Ltd. (“GFMP”) and RLSP entered into a settlement agreement regarding a dispute about the molds GFMP produced and RLSP purchased. GFMP manufactured five pair of molds for RLSP for the total purchase amount of RMB 200,000 31,000 30,000 5,000 170,000 131,850 20,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 - Income Taxes The Company, RLI is a Nevada company and subject to the United States federal income tax at a tax rate of 21 25 For the years ended December 31, 2023 and 2022, the provision for income taxes was $ 16,067 11,029 192,518 237,670 The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the years ended December 31, 2023 and 2022: Schedule of Federal Effective Tax Rate 2023 2022 Years Ended December 31, 2023 2022 U.S. federal income tax rate 21.0 % 21.0 % Tax rate difference 4.0 % 4.0 % Nontaxable items - % - % GILTI tax - % - % Others (1.2 )% (30.0 )% Valuation allowance (25.0 )% 6.6 % Effective tax rate (1.2 )% 1.4 % For U.S. income tax purposes, the Company has no cumulative undistributed earnings of foreign subsidiary as of December 31, 2023 after acquired RLSP on May 27, 2021. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings, nor is it practicable to estimate the amount of income taxes that would have to be provided if we concluded that such earnings will be remitted to the U.S. in the future. In addition, the 2017 Tax Act also creates a new requirement that certain income (i.e., Global Intangible Low-Taxed Income (“GILTI”)) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s net CFC tested income over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. For the years ended December 31, 2023 and 2022, no GILTI tax expense was incurred. ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and considered that no provision for uncertainty in income taxes was necessary as of December 31, 2023. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 11 - Segment Reporting We realize revenue primarily through the sale of synthetic rubber, rubber compound, car window seals, auto parts with two sales channels. The Company managed and reviewed its business as two operating and reporting segments: direct supply and indirect supply models. The business line distribution of the Company’s information as of and for the years ended December 31, 2023 and 2022, as following: Schedule of Business Line Distribution 2023 2022 For the years ended December 31 2023 2022 Revenue: Direct supply model $ 1,280,555 $ 5,259,447 Indirect supply model 8,709,595 5,388,728 Total 9,990,150 10,648,175 Revenue 9,990,150 10,648,175 Gross profit: Direct supply model 23 % 35 % Indirect supply model (4 )% (6 )% Total (4 )% 14 % Gross profit (4 )% 14 % Income(loss) from operations: Direct supply model (145,276 ) 1,702,897 Indirect supply model (450,600 ) (1,030,836 ) Corporate (557,333 ) (159,332 ) Income(loss) from operations (557,333 ) (159,332 ) Net income(loss) before tax Direct supply model (374,144 ) 1,496,210 Indirect supply model (450,600 ) (568,468 ) Corporate (557,333 ) (159,332 ) Net income(loss) (557,333 ) (159,332 ) December 31, December 31, 2023 2022 Reportable assets Direct supply model $ 10,930,729 $ 14,066,203 Indirect supply model 6,837,818 4,665,735 Corporate 2,069,222 22,938 Total 19,837,769 18,754,876 All long-term assets are managed under direct supply model by the chief operating decision maker. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 - Subsequent Events The Company has evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Based on our evaluation, no other event has occurred requiring adjustment or disclosure, except the following: On March 1, 2024, RLSP filed a complaint against Ningbo Rongsen in the Ningbo Intermediate People’s Court of China, challenging the overvalued construction costs of our newly constructed factory. On March 5, 2024, RLSP received a notification from Ningbo Fenghua District People’s Court that the construction project contract dispute case of RLSP vs. Ningbo Rongsen has been filed. The case number is (2024) Zhejiang 0213 Civil Litigation No. 1737. On August 5, 2022, RLSP and Ningbo Rongsen signed a Construction Engineering Contract, with an agreed project cost of US $ 4,931,105 35 6,519,991 46,277,593 7,171,990 50,905,352 However, a significant discrepancy emerged following a second evaluation by Kexin United Engineering Consulting Co., Ltd., which determined the project cost to be US $ 5,221,922 37,064,159 Our management maintains confidence in our legal standing and is actively pursuing a resolution that will be beneficial to us. As legal proceedings are subject to inherent uncertainties, we cannot predict the outcome of this matter at the time of filing this Annual Report. On March 25, 2024, Ningbo National High-Tech District branch of Industrial and Commercial Bank of China agreed to extend a credit line of RMB 56 two years |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation This summary of significant accounting policies is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements. With respect to the audited financial statements as of and for the year ended December 31, 2023, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements include the accounts of Rubber Leaf Inc, the parent company and its wholly owned subsidiary in China - Rubber Leaf Sealing Products (Zhejiang) Co., Ltd. All intercompany transactions and balances were eliminated in consolidation. |
Reclassifications | Reclassifications Certain amounts on the prior-years’ consolidated balance sheets, consolidated statements of operations and cash flows were reclassified to conform to current-year presentation, with no effect on ending stockholders’ equity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates. Signiant estimates are used in the collectability of accounts receivable, the useful lives and impairment of long-lived assets, the valuation of deferred tax assets, inventories reserve and provisions for income taxes, among others. |
Revenue Recognition | Revenue Recognition The Company early adopted Accounting Standards Update (“ASU”) 2014-09, Accounting Standards Codification Topic 606, Revenue from Contracts with Customers We generate revenue through selling automotive rubber and plastic sealing strips under two models of supply: Model A (Direct Supply Model) Following successful on-site inspections by auto OEMs, RLSP secures listing in its directories as a first-tier supplier that directly provides products to the OEM. For example, eGT is an auto OEM, and we serve as their first-tier supplier. eGT directly signs purchase or supply agreements with RLSP. This positions RLSP to independently procure raw materials, manufacture final products and directly deliver finished goods to the warehouses of the auto OEMs. RLSP fulfills its performance obligation upon the delivery of finished products to their warehouses, following a subsequent quality inspection approved by them. Simultaneously, they may request product replacements for disqualified items. Ownership and control of our finished products transfer to customers upon successful inspection and acceptance into an OEM’s warehouse. Revenue recognition occurs upon the transfer of control of our products to a customer, with payments made directly by the OEM. Model B (Indirect Supply Model) RLSP receives the purchase orders from our related parties-Shanghai Xinsen and Xinsen Sealing Products (Hangzhou) Co., Ltd (“Hangzhou Xinsen”) (collectively named as “Xinsen Group” for two companies together). The Company’s Chief Executive Officer, President and Chairperson, Ms. Xingxiu Hua, previously held a 90 70 Effective October 1, 2022, Ms. Hua reduced her ownership of Shanghai Xinsen from 90% to 15%, and accordingly reduced her indirect ownership of Hangzhou Xinsen from 63% to 10.5% We employ two distinct forms of outsourced processing under Model B. 1) RLSP purchases raw materials and subcontracts production to third-party manufacturers for WIP. Once WIP is finished and delivered to RLSP’s warehouse, RLSP performs certain manual processes, such as welding and constructing in order to meet the specification of the purchase orders. The completion of the final products is contingent upon a rigorous quality inspection conducted by RLSP, ensuring they meet the highest standards. 2) RLSP purchases raw materials and subcontracts third party manufacturers to produce finished products. RLSP will trace and observe each step of production undertaken by third-party manufacturers, with a primary focus on the final quality control step. The finished products are delivered to the warehouses of Xinsen Group’s upstream first-tier suppliers, either from our locations or those of the third-party manufacturers. Quality inspection is carried out by assigned inspectors from Xinsen Group upon delivery. RLSP fulfills its obligation when the finished products reach Xinsen Group’s customers and pass the qualified quality inspection. In the event of products that do not pass inspection, the Xinsen Group initiates a product replacement process. Upon confirmation of quality and quantity, and acceptance of finished products into Xinsen Group’s customers’ warehouses, invoices are provided to us as proof of delivery. The date of the invoices signifies the transfer of ownership and control of the finished products under model B from us to Xinsen Group and indirectly to its upstream first-tier suppliers. We recognize at such time as Xinsen Group’s customers accept delivery of products. |
Cost of revenue | Cost of revenue Cost of revenues is comprised of raw materials consumed, manufacturing costs, third party logistics and distribution costs including packaging, freight, transportation, shipping and handling costs, and inventory adjustment due to the defectives and inventory count. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include bank deposits and liquid investments with original maturities of three months or less as of the purchase date of such investments. |
Restricted cash | Restricted cash The Company had notes payable outstanding with Ningbo bank and was required to keep certain amounts on deposit that were subject to withdrawal restrictions. The notes payables were generally short term in nature due to its maturity period of six months or less, thus restricted cash was classified as a current asset. |
Concentration risk | Concentration risk The Company maintains cash with banks in the United States of America (“USA”) and PRC. Should any bank holding cash become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash with that bank; however, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. In China, a depositor has up to RMB 500,000 250,000 Financial instruments that potentially subject the Company to significant concentrations of credit risk are cash and cash equivalents and accounts receivable. As of December 31, 2023 and 2022, $ Nil 1,240,272 Major customers For the years ended December 31, 2023 and 2022, the Company’s revenues from two major customers accounted more than 10% of the total revenue were as following: Schedule of Concentration Risk Percent Year ended As of Year ended As of Amount % of Total Revenue Accounts Receivable % of Total Accounts Receivable Amount % of Total Revenue Accounts Receivable % of Total Accounts Receivable Customer A $ 1,280,555 13 % - - % $ 5,259,447 49 % $ - - % Customer B $ 8,593,998 86 % $ 5,209,169 100 % $ 5,338,728 50 % $ 4,665,735 100 % ● Customer A: eGT New Energy Automotive Co., Ltd. (“eGT”), an unrelated party. ● Customer B: Shanghai Xinsen Import & Export Co., Ltd (“Shanghai Xinsen”), a related party that sells RLSP’s products to Shanghai Hongyang Sealing Co., Ltd. (“Shanghai Hongyang”) and Wuhu Huichi Auto Parts Co., Ltd. (“Wuhu Huichi”), two unrelated parties of RLSP and the Company, and certified first-tier suppliers of Auto Manufacturers. Major vendors For the years ended December 31, 2023 and 2022, the Company made purchases from the major vendors accounted more than 10% of the total purchases were as following: Year ended As of Year ended As of Amount % of Total Purchase Accounts payable % of Total Accounts Payable Amount % of Total Purchase Accounts payable % of Total Accounts Payable Vendor A $ 8,552,684 95 % $ 2,871,033 40 % $ 5,549,968 67 % $ 2,384,085 32 % Vendor B - - $ 4,364,105 60 % $ 79,608 1 % $ 5,135,351 68 % Vendor C $ 438,230 5 % - - $ 2,626,103 32 % - - ● Vendor A: Shanghai Haozong Rubber & Plastic Technology Co., Ltd. (“Shanghai Haozong”), a related party. ● Vendor B: Shanghai Huaxin Economic and Trade Co., Ltd. (“Shanghai Huaxin”), a related party, purchase amounts and accounts payable balances include retainage payables. ● Vendor C: Shanghai Yongliansen Import and Export Trading Company (“Yongliansen”), a related party. |
Accounts Receivable | Accounts Receivable Accounts receivables are reported at their net realizable value. Any value adjustments are booked directly against the relevant receivable. We have standard payment terms that generally require payment within approximately 30 to 60 days. Management performs ongoing credit evaluations of its customers. An allowance for potentially uncollectible accounts is provided based on history, economic conditions, and composition of the accounts receivable aging. As of December 31, 2023 and 2022 no credit risk identified and no allowance for doubtful accounts. |
Inventories, net | Inventories, net Inventories consist of raw materials and finished products, and are stated at the lower of cost or net realizable value. Cost is calculated by applying the weighted -average method and physically applied first-in-first-out method (FIFO) in inventory stock in and out. The Company regularly reviews inventory quantities on hand and writes down to its net realizable value any inventory that it believes to be impaired. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. |
Advances to vendors | Advances to vendors From time to time, we paid advances to our vendors in order to secure our purchase orders or as retainers required pursuant to various purchase agreements related to production and the 2 nd |
Property and equipment | Property and equipment Property and equipment are initially recorded at their historical cost. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives of the depreciable assets: ● Land use rights: 50 ● Leasehold improvement: shorter of the estimate useful life or lease term ● Factory and Building: 47 ● Factory equipment: 3 36 ● Auto vehicles: 4 ● Office equipment and furniture: 4 10 Construction in progress (“CIP”) includes pre-construction costs, construction costs, interest incurred on financing, amortization of land use right during the construction period, insurance and overhead costs related to construction. Interest of borrowings specific for the construction project and amortization of land use rights are capitalized under CIP when development activities commence, and end when the qualifying assets are ready for their intended use. |
Intangible Assets | Intangible Assets All land in the PRC is owned by the PRC government and cannot be sold to any individual or company. The Company has recorded the amounts paid to the PRC government when acquired long-term interests of land use rights under intangible assets. This type of arrangement is common for the use of land in the PRC. The Company amortizes land use rights based on the term of the respective land use rights granted, which generally ranges from 15 50 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company’s long-lived assets mainly include property and equipment, land use right recorded under intangible assets and right-of-use assets obtained through operating lease. In accordance with ASC 360, Property, Plant, and Equipment, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of a long-lived asset, or group of assets, as appropriate, may not be recoverable. If the aggregate undiscounted future net cash flows expected to result from the use and the eventual disposition of a long-lived asset is less than its carrying value, then the Company would recognize an impairment loss based on the excess of the carrying value over the fair value. For the years ended December 31, 2023 and 2022, the Company determined there was no |
Notes payable | Notes payable Short-term notes payable are lines of credit extended by banks. The banks in-turn issue the Company a bankers acceptance note, which can be endorsed and assigned to vendors as payments for purchases. These short-term notes payable bears no interest and is guaranteed by the bank for its complete face value and usually matures within three to six-month period. The banks usually require the Company to deposit a certain amount of cash at the bank as a guarantee deposit, which is classified on the balance sheet as restricted cash. As of December 31, 2023 and 2022, RLSP held $ Nil 1,312,362 |
Advances from customers | Advances from customers From time to time, we received advances from our customers, which are made normally under sales frame contracts, each sales transaction will be initiated by purchase orders received under the frame contracts. The advances have no interest bearing, normally settled along with purchase/sales transactions within 60 to 180 days. |
Retainage Payables | Retainage Payables For equipment purchased from Shanghai Huaxin in the PRC, a related party, by RLSP in the PRC, the Company typically retains a portion of the purchase invoices, typically 3-5%, for 12 to 24 months to ensure the quality of equipment after installation during the qualifying warranty period Nil 38,138 |
Income Taxes | Income Taxes We are governed by the Income Tax Law of the PRC and the United States. The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The 2017 Tax Reform Act permanently reduces the U.S. corporate income tax rate to a 21 25 |
Value added tax | Value added tax The Company is subject to value added tax (“VAT”). The applicable VAT rate is 13 |
Earnings Per Share | Earnings Per Share The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. Pursuant to ASC 260-10-55, EPS computations should be based on the facts and circumstances of the transaction for reorganization. The Company calculated its EPS retrospectively akin to a normal share issuance as if the reorganization incurred from the inception. The Company does not have any potentially dilutive instruments as of December 31, 2023 and 2022, and, thus, anti-dilution issues are not applicable. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s balance sheets include certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2023 and 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash and cash equivalent, restricted cash, accounts receivables, advances to vendors, inventories, other current assets, accounts payables, advances from customers and other current liabilities. For short term borrowings and notes payable, the Company concluded the carrying values are a reasonable estimate of fair values because of the short period of time between the origination and repayment and as their stated interest rates approximate current rates available. |
Operating Leases | Operating Leases The Company adopted ASC 842 since its inception. The Company determines if an arrangement is or contains a lease at inception. Operating leases with lease terms of more than 12 months are included in operating lease assets, accrued and other current liabilities, and long-term operating lease liabilities on its consolidated balance sheet. Operating lease assets represent its right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments over the lease term. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using its incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term. |
Related Parties | Related Parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. The Company follows ASC 850, Related Party Disclosures, |
Foreign Currency | Foreign Currency Amounts reported in the condensed consolidated financial statements are stated in United States dollars, unless stated otherwise. The Company’s subsidiary in the PRC use the Chinese renminbi (RMB) as their functional currency and the holding company - RLI uses the United States dollar as their functional currency. For subsidiaries that use the local currency as the functional currency, all assets and liabilities are translated to United States dollars using exchange rates in effect at the end of the respective periods and the results of operations have been translated into United States dollars at the weighted average rates during the periods the transactions were recognized. Resulting translation gains or losses are recognized as a component of other comprehensive income (loss). In accordance with ASC 830, Foreign Currency Matters (ASC 830), the Company translates the assets and liabilities into United States dollars using the rate of exchange prevailing at the balance sheet date and the statements of operations and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from RMB into United States dollar are recorded in stockholders’ equity as part of accumulated other comprehensive income. Further, foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Gains and losses on those foreign currency transactions are included in other income (expense), net for the period in which exchange rates change. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company accounts for comprehensive income (loss) in accordance with ASC 220, Income Statement-Reporting Comprehensive Income |
Segment Information | Segment Information Operating segments are defined as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the executive team, which is comprised of the chief executive officer and the chief financial officer. Based on the financial information presented to and reviewed by the chief operating decision maker in deciding how to allocate the resources and in assessing the performance, the Company has determined that it has two |
Recent Accounting Standard Adopted | Recent Accounting Standard Adopted In June 2016, the FASB issued ASC Update No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASC update introduces new guidance for the accounting for credit losses on financial instruments within its scope. A new model, referred to as the current expected credit losses model, requires an entity to determine credit-related impairment losses for financial instruments held at amortized cost and to estimate these expected credit losses over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider both historical and current information, reasonable and supportable forecasts, as well as estimates of prepayments. The estimated credit losses and subsequent adjustment to such loss estimates will be recorded through an allowance account which is deducted from the amortized cost of the financial instrument, with the offset recorded in current earnings. ASC No. 2016-13 also modifies the impairment model for available-for-sale debt securities. The new model will require an estimate of expected credit losses only when the fair value is below the amortized cost of the asset, thus the length of time the fair value of an available-for-sale debt security has been below the amortized cost will no longer affect the determination of whether a credit loss exists. In addition, credit losses on available-for-sale debt securities will be limited to the difference between the security’s amortized cost basis and its fair value. The updated guidance is effective for all entities other than public companies’ fiscal years beginning after December 15, 2022. The Company has adopted this accounting standard, effective January 1, 2023. Management assessed the adoption of this standard on the effective date and concluded that the adoption did not have a material effect on the Company’s financial condition, results of operations, and cash flows during the year ended December 31, 2023. |
Accounting Standards Issued but Not Yet Adopted | Accounting Standards Issued but Not Yet Adopted Income Tax Disclosures - In December 2023, the Financial Accounting Standards Board (FASB) released ASU No. 2023-09, titled “Income Taxes (Topic 740): Enhancements to Income Tax Disclosures” (referred to as “ASU 2023-09”). This new standard mandates the disclosure, on an annual basis, of specific categories in the rate reconciliation and the disaggregation of income taxes paid by jurisdiction. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2025. The Company anticipates that the adoption of this standard will not significantly impact its financial position, results of operations, or cash flows. In November 2023, the Financial Accounting Standards Board (FASB) released ASU 2023-07, titled “Enhancements to Reportable Segment Disclosures” (“ASU 2023-07”). This standard necessitates companies to provide additional, more comprehensive details regarding significant expenses of a reportable segment, even if there is only one such segment. Its purpose is to enhance disclosures related to a public entity’s reportable segments. ASU 2023-07 will be effective for fiscal years commencing after December 15, 2023, and for interim periods starting after December 15, 2024, with the option for early adoption. We are presently assessing the potential impact of adopting ASU 2023-07 on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk Percent | For the years ended December 31, 2023 and 2022, the Company’s revenues from two major customers accounted more than 10% of the total revenue were as following: Schedule of Concentration Risk Percent Year ended As of Year ended As of Amount % of Total Revenue Accounts Receivable % of Total Accounts Receivable Amount % of Total Revenue Accounts Receivable % of Total Accounts Receivable Customer A $ 1,280,555 13 % - - % $ 5,259,447 49 % $ - - % Customer B $ 8,593,998 86 % $ 5,209,169 100 % $ 5,338,728 50 % $ 4,665,735 100 % ● Customer A: eGT New Energy Automotive Co., Ltd. (“eGT”), an unrelated party. ● Customer B: Shanghai Xinsen Import & Export Co., Ltd (“Shanghai Xinsen”), a related party that sells RLSP’s products to Shanghai Hongyang Sealing Co., Ltd. (“Shanghai Hongyang”) and Wuhu Huichi Auto Parts Co., Ltd. (“Wuhu Huichi”), two unrelated parties of RLSP and the Company, and certified first-tier suppliers of Auto Manufacturers. Major vendors For the years ended December 31, 2023 and 2022, the Company made purchases from the major vendors accounted more than 10% of the total purchases were as following: Year ended As of Year ended As of Amount % of Total Purchase Accounts payable % of Total Accounts Payable Amount % of Total Purchase Accounts payable % of Total Accounts Payable Vendor A $ 8,552,684 95 % $ 2,871,033 40 % $ 5,549,968 67 % $ 2,384,085 32 % Vendor B - - $ 4,364,105 60 % $ 79,608 1 % $ 5,135,351 68 % Vendor C $ 438,230 5 % - - $ 2,626,103 32 % - - ● Vendor A: Shanghai Haozong Rubber & Plastic Technology Co., Ltd. (“Shanghai Haozong”), a related party. ● Vendor B: Shanghai Huaxin Economic and Trade Co., Ltd. (“Shanghai Huaxin”), a related party, purchase amounts and accounts payable balances include retainage payables. ● Vendor C: Shanghai Yongliansen Import and Export Trading Company (“Yongliansen”), a related party. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of raw rubber materials, finished goods of rubber products and others, and are stated at the lower of cost or net realizable value. As of December 31, 2023 and December 31, 2022, inventories consisted of the following: Schedule of Inventories December 31, 2023 December 31, 2022 Raw materials $ 12,761 $ 8,900 Finished goods, net 747,849 1,329,577 Total 760,610 1,338,477 |
Plant and equipment, net (Table
Plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Plant and Equipment | Schedule of Plant and Equipment December 31, December 31, 2023 2022 Equipment and machinery $ 5,469,683 $ 5,633,421 Factory and Building 5,455,619 - Furniture and office equipment 4,257 3,505 Auto vehicles 23,645 19,783 Leasehold improvement 118,673 122,124 Minus: Accumulated depreciation and amortization (2,010,404 ) (1,497,885 ) Plant and equipment, net 9,061,473 4,280,948 Construction in progress - 2,518,836 Property plant and equipment, net $ 9,061,473 $ 6,799,784 |
Intangible asset, net (Tables)
Intangible asset, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset | Intangible asset, net consists of the following: Schedule of Intangible Asset December 31, December 31, 2023 2022 Land use rights $ 2,138,833 $ 2,201,040 Less: Accumulated amortization (137,720 ) (97,705 ) Intangible asset, net 2,001,113 2,103,335 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal Effective Tax Rate | The table below summarizes the difference between the U.S. statutory federal tax rate and the Company’s effective tax rate for the years ended December 31, 2023 and 2022: Schedule of Federal Effective Tax Rate 2023 2022 Years Ended December 31, 2023 2022 U.S. federal income tax rate 21.0 % 21.0 % Tax rate difference 4.0 % 4.0 % Nontaxable items - % - % GILTI tax - % - % Others (1.2 )% (30.0 )% Valuation allowance (25.0 )% 6.6 % Effective tax rate (1.2 )% 1.4 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Business Line Distribution | The business line distribution of the Company’s information as of and for the years ended December 31, 2023 and 2022, as following: Schedule of Business Line Distribution 2023 2022 For the years ended December 31 2023 2022 Revenue: Direct supply model $ 1,280,555 $ 5,259,447 Indirect supply model 8,709,595 5,388,728 Total 9,990,150 10,648,175 Revenue 9,990,150 10,648,175 Gross profit: Direct supply model 23 % 35 % Indirect supply model (4 )% (6 )% Total (4 )% 14 % Gross profit (4 )% 14 % Income(loss) from operations: Direct supply model (145,276 ) 1,702,897 Indirect supply model (450,600 ) (1,030,836 ) Corporate (557,333 ) (159,332 ) Income(loss) from operations (557,333 ) (159,332 ) Net income(loss) before tax Direct supply model (374,144 ) 1,496,210 Indirect supply model (450,600 ) (568,468 ) Corporate (557,333 ) (159,332 ) Net income(loss) (557,333 ) (159,332 ) December 31, December 31, 2023 2022 Reportable assets Direct supply model $ 10,930,729 $ 14,066,203 Indirect supply model 6,837,818 4,665,735 Corporate 2,069,222 22,938 Total 19,837,769 18,754,876 |
Organization and Description _2
Organization and Description of Business (Details Narrative) - USD ($) $ in Millions | May 27, 2021 | Jul. 08, 2019 |
Registered capital amount | $ 20 | |
RLSP [Member] | ||
Registered capital amount | $ 20 | |
RLSP [Member] | XingxiuHua [Member] | ||
Number of shares issued | 40,000,000 |
Schedule of Concentration Risk
Schedule of Concentration Risk Percent (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||
Revenues | $ 9,990,150 | $ 10,648,175 |
Purchase | 10,061,164 | 9,149,717 |
Vendor A [Member] | ||
Product Information [Line Items] | ||
Accounts payable | 2,871,033 | 2,384,085 |
Vendor B [Member] | ||
Product Information [Line Items] | ||
Accounts payable | 4,364,105 | 5,135,351 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 1,280,555 | $ 5,259,447 |
Concentrationr risk, percentage | 13% | 49% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 8,593,998 | $ 5,338,728 |
Concentrationr risk, percentage | 86% | 50% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | ||
Accounts receivable | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | 100% | 100% |
Accounts receivable | $ 5,209,169 | $ 4,665,735 |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor A [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | 95% | 67% |
Purchase | $ 8,552,684 | $ 5,549,968 |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor B [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | 1% | |
Purchase | $ 79,608 | |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Vendor C [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | 5% | 32% |
Purchase | $ 438,230 | $ 2,626,103 |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor A [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | 40% | 32% |
Accounts payable | $ 2,871,033 | $ 2,384,085 |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor B [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | 60% | 68% |
Accounts payable | $ 4,364,105 | $ 5,135,351 |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor C [Member] | ||
Product Information [Line Items] | ||
Concentrationr risk, percentage | ||
Accounts payable |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2023 CNY (¥) | Oct. 21, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
FSD insured amonut | ¥ | ¥ 500,000 | |||
FDIC insured amount | $ 250,000 | |||
Cash and restricted cash uninsured | $ 1,240,272 | |||
Impairment of long lived assets | 0 | 0 | ||
Notes payable | 1,312,362 | |||
Retainage payable description | For equipment purchased from Shanghai Huaxin in the PRC, a related party, by RLSP in the PRC, the Company typically retains a portion of the purchase invoices, typically 3-5%, for 12 to 24 months to ensure the quality of equipment after installation during the qualifying warranty period | |||
Retainage payable | $ 38,138 | |||
PRC income tax rate | 21% | 21% | ||
Value added tax rate | 13% | 13% | ||
Number of operating and reporting segments | Segment | 2 | 2 | ||
State Administration of Taxation, China [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
PRC income tax rate | 25% | |||
Land Use Rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset useful life | 50 years | |||
Minimum [Member] | Land Use Rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset useful life | 15 years | 15 years | ||
Maximum [Member] | Land Use Rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset useful life | 50 years | 50 years | ||
Land Use Rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 50 years | 50 years | ||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Shorter of Lease Term or Asset Utility [Member] | Useful Life, Shorter of Lease Term or Asset Utility [Member] | ||
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 47 years | 47 years | ||
Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 3 years | 3 years | ||
Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 36 years | 36 years | ||
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 4 years | 4 years | ||
Office Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 4 years | 4 years | ||
Office Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, useful life | 10 years | 10 years | ||
Shanghai Xinsen Import and Export Co Ltd [Member] | XingxiuHua [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Ownership percentage | 90% | 90% | ||
Xinsen Sealing Products (Hangzhou) Co., Ltd [Member] | XingxiuHua [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Ownership percentage | 90% | 90% | ||
Ownership percentage description | Effective October 1, 2022, Ms. Hua reduced her ownership of Shanghai Xinsen from 90% to 15%, and accordingly reduced her indirect ownership of Hangzhou Xinsen from 63% to 10.5% | |||
Xinsen Sealing Products (Hangzhou) Co., Ltd [Member] | Shanghai Xinsen [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Ownership percentage | 70% | 70% |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 12,761 | $ 8,900 |
Finished goods, net | 747,849 | 1,329,577 |
Total | $ 760,610 | $ 1,338,477 |
Inventories, net (Details Narra
Inventories, net (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |||
Gain on sale of imperfection | $ 462,368 | $ 709,479 | |
Sale of imperfection | 545,975 | ||
Inventory obsolete | $ 9,649 |
Schedule of Plant and Equipment
Schedule of Plant and Equipment (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Equipment and machinery | $ 5,469,683 | $ 5,633,421 |
Factory and Building | 5,455,619 | |
Furniture and office equipment | 4,257 | 3,505 |
Auto vehicles | 23,645 | 19,783 |
Leasehold improvement | 118,673 | 122,124 |
Minus: Accumulated depreciation and amortization | (2,010,404) | (1,497,885) |
Plant and equipment, net | 9,061,473 | 4,280,948 |
Construction in progress | 2,518,836 | |
Property plant and equipment, net | $ 9,061,473 | $ 6,799,784 |
Plant and equipment, net (Detai
Plant and equipment, net (Details Narrative) | 12 Months Ended | |||||
Dec. 25, 2023 USD ($) | Dec. 25, 2023 CNY (¥) | Aug. 05, 2022 USD ($) | Aug. 05, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Cost, direct labor | $ 4,931,105 | ¥ 35,000,000 | ||||
Construction costs | $ 6,519,991 | ¥ 46,277,593 | ||||
Depreciation and amortization expenses | $ 556,530 | $ 614,744 | ||||
Factory and Building [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Construction costs | $ 5,221,922 | ¥ 37,064,159 |
Schedule of Intangible Asset (D
Schedule of Intangible Asset (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Land use rights | $ 2,138,833 | $ 2,201,040 |
Less: Accumulated amortization | (137,720) | (97,705) |
Intangible asset, net | $ 2,001,113 | $ 2,103,335 |
Intangible asset, net (Details
Intangible asset, net (Details Narrative) - Land Use Rights [Member] | 12 Months Ended | |||
Oct. 21, 2020 USD ($) | Oct. 21, 2020 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset useful life | 50 years | 50 years | ||
Finite-lived intangible assets acquired | $ 2,064,554 | ¥ 13,729,900 | ||
Exchange rate | 0.1504 | 0.1504 | ||
Amortization of intangible assets | $ 42,906 | $ 46,039 |
Borrowings (Details Narrative)
Borrowings (Details Narrative) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Oct. 30, 2023 USD ($) | Oct. 20, 2023 USD ($) | Sep. 14, 2023 USD ($) | Mar. 11, 2023 | Nov. 18, 2022 USD ($) | Nov. 30, 2021 CNY (¥) | Nov. 10, 2021 | Sep. 01, 2021 USD ($) | Apr. 30, 2021 USD ($) | Nov. 30, 2020 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 CNY (¥) | Apr. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 25, 2023 USD ($) | Dec. 25, 2023 CNY (¥) | Oct. 30, 2023 CNY (¥) | Oct. 20, 2023 CNY (¥) | Sep. 21, 2023 USD ($) | Sep. 21, 2023 CNY (¥) | Sep. 14, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Nov. 18, 2022 CNY (¥) | Mar. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | Sep. 01, 2021 CNY (¥) | Apr. 30, 2021 CNY (¥) | Nov. 30, 2020 CNY (¥) | |
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Land use right value | $ 2,138,833 | $ 2,201,040 | |||||||||||||||||||||||||||||
Repayment of loan | 6,028,058 | 2,380,856 | |||||||||||||||||||||||||||||
Bank Loan [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Interest expense | 237,581 | 187,528 | |||||||||||||||||||||||||||||
Bank Loan [Member] | Fenghua Chunhu Branch [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 1,884,823 | $ 2,298,851 | $ 1,837,092 | ¥ 13,000,000 | $ 1,837,092 | ¥ 13,000,000 | ¥ 13,000,000 | $ 2,017,005 | ¥ 13,000,000 | ¥ 15,000,000 | |||||||||||||||||||||
Borrowings, interest rate | 4.50% | 4.70% | |||||||||||||||||||||||||||||
Repayment of loan | ¥ | ¥ 2,000,000 | ||||||||||||||||||||||||||||||
Debt term | 1 year | ||||||||||||||||||||||||||||||
Borrowings, maturity date | Sep. 22, 2023 | ||||||||||||||||||||||||||||||
Borrowings, face amount | 1,831,553 | 1,884,823 | |||||||||||||||||||||||||||||
Bank Loan [Member] | Fenghua Chunhu Branch [Member] | Asset Pledged as Collateral [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 3,440,000 | ¥ 23,690,000 | |||||||||||||||||||||||||||||
Land use right value | $ 5,440,000 | ¥ 35,200,000 | |||||||||||||||||||||||||||||
Term Loan [Member] | Unrelated Individual [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 353,287 | $ 365,245 | $ 2,054,513 | $ 154,832 | $ 774,401 | ¥ 2,500,000 | ¥ 2,600,000 | ¥ 15,000,000 | ¥ 1,000,000 | ¥ 5,000,000 | |||||||||||||||||||||
Borrowings, interest rate | 3% | 3% | 2.50% | 13% | 1% | ||||||||||||||||||||||||||
Repayment of loan | $ 1,780,578 | ¥ 13,000,000 | |||||||||||||||||||||||||||||
Borrowings, maturity date | Nov. 30, 2023 | Dec. 31, 2023 | Aug. 31, 2022 | Jun. 15, 2021 | |||||||||||||||||||||||||||
Interest rate term | Pursuant to the loan agreement, the interest rate will increase to 2% monthly if RLSP is in default of loan terms and the lender may further obtain 5% of RLSP’s ownership | ||||||||||||||||||||||||||||||
Borrowings, face amount | 281,777 | ¥ 2,000,000 | |||||||||||||||||||||||||||||
Repayment of loan | ¥ | ¥ 15,000,000 | ||||||||||||||||||||||||||||||
Term Loan [Member] | Officer [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 247,732 | 152,359 | ¥ 1,600,000 | ||||||||||||||||||||||||||||
Borrowings, interest rate | 8% | ||||||||||||||||||||||||||||||
Repayment of loan | 28,263 | 69,256 | |||||||||||||||||||||||||||||
Borrowings, maturity date | Dec. 31, 2023 | Aug. 31, 2022 | |||||||||||||||||||||||||||||
April 30, 2021 Term Loan [Member] | Unrelated Individual [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | 267,689 | 275,474 | 1,900,000 | ¥ 1,900,000 | |||||||||||||||||||||||||||
September 1, 2021 Term Loan [Member] | Unrelated Individual [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | 67,627 | 98,591 | 480,000 | 680,000 | |||||||||||||||||||||||||||
September 1, 2021 Term Loan [Member] | Officer [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | 183,881 | 61,909 | 1,300,000 | ¥ 430,000 | |||||||||||||||||||||||||||
Mortgages [Member] | Zhejiang Yongyin Financial leasing Co., Ltd [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 314,857 | 2,000,000 | |||||||||||||||||||||||||||||
Borrowings, maturity date | Nov. 19, 2023 | ||||||||||||||||||||||||||||||
Borrowings, face amount | 288,348 | 135,357 | |||||||||||||||||||||||||||||
Mortgages [Member] | Zhejiang Yongyin Financial leasing Co., Ltd [Member] | Asset Pledged as Collateral [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | ¥ | ¥ 2,300,000 | ||||||||||||||||||||||||||||||
Personal Loan [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 10,149 | ||||||||||||||||||||||||||||||
Personal loan | $ 20,901 | ||||||||||||||||||||||||||||||
Personl loans for employees | $ 10,451 | ||||||||||||||||||||||||||||||
October 2023 Term Loan [Member] | Unrelated Individual [Member] | |||||||||||||||||||||||||||||||
Short-Term Debt [Line Items] | |||||||||||||||||||||||||||||||
Borrowings, face amount | $ 718,532 | ¥ 5,100,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 12 Months Ended | |||||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Jun. 30, 2022 USD ($) | Nov. 30, 2020 USD ($) | Nov. 30, 2020 CNY (¥) | |
Related Party Transaction [Line Items] | ||||||||
Retainage payable | $ 38,138 | |||||||
Ownership description | Effective on October 1, 2022, Ms. Hua reduced her ownership of Shanghai Xinsen from 90% to 15%, and so accordingly reduced her indirect ownership of Hangzhou Xinsen from 63% to 10.5%. Xinsen Group is a rubber product trading expert with 20 years of experience in the auto parts market, who charges 1% of the total sales amount before VAT tax as sales commission before September 30, 2022, and subsequently 0.25% effective from October 1, 2022 after the renegotiation between RLSP and Xinsen Group. The sales commission incurred in each period is recorded as part of selling expense of the Company | Effective on October 1, 2022, Ms. Hua reduced her ownership of Shanghai Xinsen from 90% to 15%, and so accordingly reduced her indirect ownership of Hangzhou Xinsen from 63% to 10.5%. Xinsen Group is a rubber product trading expert with 20 years of experience in the auto parts market, who charges 1% of the total sales amount before VAT tax as sales commission before September 30, 2022, and subsequently 0.25% effective from October 1, 2022 after the renegotiation between RLSP and Xinsen Group. The sales commission incurred in each period is recorded as part of selling expense of the Company | ||||||
Cash FDIC insured amount | $ 250,000 | |||||||
Unpaid registered capital | 17,772,925 | ¥ 126 | ||||||
CEO and CFO [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other receivables | 2,684,029 | 2,524,366 | ||||||
Cash FDIC insured amount | 125,000 | 2,055,415 | ||||||
Payment Extension Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other receivables | 4,364,105 | |||||||
Accounts payable | 746,480 | $ 6,835,124 | ||||||
Repayments of related party debt | 628,003 | ¥ 4,440,000 | 1,626,379 | ¥ 11,350,337 | ||||
Sales Under Indirect Supply Model [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Purchases from related party | 8,593,998 | 5,388,728 | ||||||
Accounts payable | 18,378 | 18,912 | ||||||
Accounts receivable, related parties | 5,209,169 | 4,665,735 | ||||||
Vendor C [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Purchases from related party | 438,230 | 2,626,103 | ||||||
Related party transaction, advanced | 219,734 | 10,353 | ||||||
Other receivables | $ 2,113,331 | ¥ 15,000,000 | ||||||
Vendor A [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Purchases from related party | 8,552,684 | 5,549,968 | ||||||
Accounts payable | 2,871,033 | 2,384,085 | ||||||
Vendor B [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Purchases from related party | 79,608 | |||||||
Accounts payable | 4,364,105 | 5,135,351 | ||||||
Retainage payable | $ 38,119 | |||||||
Shanghai Haozong Rubber & Plastic Technology Co., Ltd [Member] | Jun Tong [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 30% | 30% | ||||||
Xinsen Sealing Products (Hangzhou) Co., Ltd [Member] | XingxiuHua [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 90% | 90% | ||||||
Xinsen Sealing Products (Hangzhou) Co., Ltd [Member] | Shanghai Xinsen [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 70% | 70% |
Shareholders_ Equity (Details N
Shareholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 08, 2019 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Registered capital | $ 20,000,000 | |||
Cash | $ 125,000 | $ 2,684,029 | ||
Total value subscription | 399,000 | |||
Private Placement [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common shares, issued | 133,000 | |||
Share price | $ 3 | |||
Total value subscription | $ 399,000 |
Commitment and contingencies (D
Commitment and contingencies (Details Narrative) | 1 Months Ended | ||||||||||
Jan. 14, 2023 USD ($) | Jan. 14, 2023 CNY (¥) | Jul. 05, 2022 CNY (¥) | Apr. 20, 2021 USD ($) | Apr. 20, 2021 CNY (¥) | Oct. 31, 2019 USD ($) | Oct. 31, 2019 CNY (¥) | Jul. 05, 2022 USD ($) | Jul. 05, 2022 CNY (¥) | Apr. 20, 2021 CNY (¥) | Oct. 31, 2019 CNY (¥) | |
Related Party Transaction [Line Items] | |||||||||||
Loss contingency, damages sought, value | $ 46,454 | ¥ 300,000 | |||||||||
Loss contingency damages sought interest | 24% | 24% | |||||||||
Lease deposit liability | $ 58,855 | ¥ 380,000 | |||||||||
Operating lease, payments | $ 61,638 | ¥ 429,000 | |||||||||
Settlement Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party unpaid purchase amount | ¥ 170,000 | $ 31,000 | ¥ 200,000 | ||||||||
Remaining unpaid balance | $ 5,000 | $ 20,000 | ¥ 131,850 | ¥ 30,000 |
Schedule of Federal Effective T
Schedule of Federal Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal income tax rate | 21% | 21% |
Tax rate difference | 4% | 4% |
Nontaxable items | ||
GILTI tax | ||
Others | (1.20%) | (30.00%) |
Valuation allowance | (25.00%) | 6.60% |
Effective tax rate | (1.20%) | 1.40% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Corporate tax rate | 21% | |
PRC applies, income tax rate | 25% | |
Income tax expense | $ 16,067 | $ 11,029 |
Income tax payable | $ 192,518 | $ 237,670 |
Schedule of Business Line Distr
Schedule of Business Line Distribution (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 9,990,150 | $ 10,648,175 |
Income(loss) from operations | (1,153,209) | 512,729 |
Net income(loss) | (1,398,144) | 757,381 |
Total | 19,837,769 | 18,754,876 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 9,990,150 | $ 10,648,175 |
Gross profit | (4.00%) | 14% |
Total | $ 19,837,769 | $ 18,754,876 |
Operating Segments [Member] | Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Income(loss) from operations | (557,333) | (159,332) |
Net income(loss) | (557,333) | (159,332) |
Total | 2,069,222 | 22,938 |
Operating Segments [Member] | Direct Supply Model [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,280,555 | $ 5,259,447 |
Gross profit | 23% | 35% |
Income(loss) from operations | $ (145,276) | $ 1,702,897 |
Net income(loss) | (374,144) | 1,496,210 |
Total | 10,930,729 | 14,066,203 |
Operating Segments [Member] | Indirect Supply Model [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 8,709,595 | $ 5,388,728 |
Gross profit | (4.00%) | (6.00%) |
Income(loss) from operations | $ (450,600) | $ (1,030,836) |
Net income(loss) | (450,600) | (568,468) |
Total | $ 6,837,818 | $ 4,665,735 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Mar. 25, 2024 CNY (¥) | Jan. 07, 2024 USD ($) | Jan. 07, 2024 CNY (¥) | Aug. 05, 2022 USD ($) | Aug. 05, 2022 CNY (¥) |
Subsequent Event [Line Items] | |||||
Cost, direct labor | $ 4,931,105 | ¥ 35,000,000 | |||
Construction costs | $ 6,519,991 | ¥ 46,277,593 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cost, direct labor | $ 5,221,922 | ¥ 37,064,159 | |||
Construction costs | $ 7,171,990 | ¥ 50,905,352 | |||
Line of credit | ¥ 56,000,000 | ||||
Line of credit term | 2 years |