Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 30, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | CHINA CHANGJIANG MINING & NEW ENERGY COMPANY, LTD. | ||
Entity Central Index Key | 29952 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Is Entity a Well-known Seasoned Issuer | No | ||
Is Entity a Voluntary Filer | No | ||
Is Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $339,716 | ||
Entity Common Stock, Shares Outstanding | 64,629,559 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||
Cash and cash equivalents | $72,156 | $159,866 |
Other current assets and prepayments (Note 3) | 80,535 | 155,564 |
Total Current Assets | 152,691 | 315,430 |
Property, plant and equipment, net (Note 4) | 314,480 | 378,625 |
Land use rights, net (Note 5) | 16,323,725 | 16,875,045 |
Long-term investment (Note 6) | 132,229 | |
Due from related parties (Note 7) | 6,609,329 | 5,486,628 |
TOTAL ASSETS | 23,400,225 | 23,187,957 |
LIABILITIES & SHAREHOLDERS' EQUITY | ||
Other payables and accrued liabilities (Note 8) | 419,235 | 353,494 |
Total Current Liabilities | 419,235 | 353,494 |
Due to related parties (Note 9) | 3,275,191 | 3,473,437 |
Due to shareholders (Note 10) | 3,391,992 | 3,418,321 |
Payable on acquisition of a subsidiary (Note 11) | 2,049,066 | |
Total Long-term Liabilities | 6,667,183 | 8,940,824 |
SHAREHOLDERS' EQUITY | ||
Series C convertible preferred stock ($0.01 par value,10,000,000 shares authorized, no shares outstanding as of December 31, 2014 and 2013) | ||
Common stock ($0.01 par value, 250,000,000 shares authorized, 64,629,559 shares issued and outstanding as of December 31, 2014 and 2013) | 646,295 | 646,295 |
Treasury stock | -489,258 | -489,258 |
Additional paid-in capital | 15,410,640 | 13,316,682 |
Retained earnings | -2,902,291 | -3,325,983 |
Non-controlling interests | 1,102,122 | 1,096,769 |
Accumulated other comprehensive income | 2,546,299 | 2,649,134 |
TOTAL SHAREHOLDERS' EQUITY | 16,313,807 | 13,893,639 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $23,400,225 | $23,187,957 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
SHAREHOLDERS' EQUITY | ||
Series C Convertible preferred stock, par value | $0.01 | $0.01 |
Series C Convertible preferred stock, Authorized | 10,000,000 | 10,000,000 |
Series C Convertible preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, Authorized | 250,000,000 | 250,000,000 |
Common stock, Issued | 64,629,559 | 64,629,559 |
Common stock, outstanding | 64,629,559 | 64,629,559 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Income And Comprehensive Income Loss | ||
Sales revenue - related party (Note 12) | $1,247,273 | $1,211,397 |
Cost of revenue | 68,340 | 67,838 |
Gross Profit | 1,178,933 | 1,143,559 |
Operating expenses (income) | ||
Administrative expenses | 230,709 | 320,075 |
Bad debt expense | 46,374 | |
Depreciation | 55,324 | 37,951 |
Amortization | 416,527 | 414,416 |
Total operating expenses | 748,934 | 772,442 |
Income from operations | 429,999 | 371,117 |
Other Income (Expenses) | ||
Interest income | 3,376 | 13,840 |
Interest expenses | -1,015 | |
Gain on written off of Notes payable | 434,137 | |
Allowance for long term investment | -183,429 | |
Other expenses | -4,330 | -9,608 |
Total Other Income | -954 | 253,925 |
Income before tax | 429,045 | 625,042 |
Income tax expense (benefit) | ||
Income on continuing operations | 429,045 | 625,042 |
Income on discontinued operations | 1,693,219 | |
Net Income | 429,045 | 2,318,261 |
Net income attributable to: | ||
Non-controlling interests | 5,353 | 697,791 |
Common Stockholders | 423,692 | 1,620,470 |
Other comprehensive income/(loss) | ||
Foreign currency translation adjustments | -102,835 | 437,576 |
Total Comprehensive Income | $326,210 | $2,755,837 |
Weighted average shares-Basic | 64,629,559 | 64,629,559 |
Weighted average shares-Diluted | 64,629,559 | 64,629,559 |
Earnings per share, | ||
Basic | $0.01 | $0.04 |
Diluted | $0.01 | $0.04 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (USD $) | Common Stock | Treasury Stock | Additional Paid-In Capital | Noncontrolling Interest | Accumulated other comprehensive income | Retained Earnings | Total |
Beginning Balance, Amount at Dec. 31, 2012 | $646,295 | ($489,258) | $13,916,844 | $1,389,550 | $2,211,558 | ($4,946,453) | $12,728,536 |
Beginning Balance, Shares at Dec. 31, 2012 | 64,629,559 | 17,572,494 | |||||
Apportionment of loss to non-controlling interest | 697,791 | -697,791 | |||||
Discontinued a subsidiary | -600,162 | -990,572 | -1,590,734 | ||||
Extinguishment of liability to related party | |||||||
Net Loss | 2,318,261 | 2,318,261 | |||||
Ending Balance, Amount at Dec. 31, 2013 | 646,295 | -489,258 | 13,316,682 | 1,096,769 | 2,649,134 | -3,325,983 | 13,893,639 |
Ending Balance, Shares at Dec. 31, 2013 | 64,629,559 | 17,572,494 | |||||
Apportionment of loss to non-controlling interest | 5,353 | -5,353 | |||||
Foreign currency translation gain | -102,835 | -102,835 | |||||
Extinguishment of liability to related party | 2,093,958 | 2,093,958 | |||||
Net Loss | 429,045 | 429,045 | |||||
Ending Balance, Amount at Dec. 31, 2014 | $646,295 | ($489,258) | $15,410,640 | $1,102,122 | $2,546,299 | ($2,902,291) | $16,313,807 |
Ending Balance, Shares at Dec. 31, 2014 | 64,629,559 | 17,572,494 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $429,045 | $2,318,261 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income from discontinued operations | -1,693,219 | |
Depreciation and amortization | 471,851 | 447,372 |
Notes payable | -434,137 | |
Allowance for doubtful accounts | 46,374 | |
Allowance for long term investment | 190,536 | |
Changes in operating assets and liabilities: | ||
Due from Huanghe Bay | -1,247,273 | -1,230,133 |
Other current assets and prepayments | 27,416 | 42,493 |
Other payables and accrued liabilities | 68,568 | 138,442 |
CASH USED IN CONTINUING OPERARATIONS | -204,019 | -220,385 |
CASH USED IN DISCONTINUED OPERARATIONS | -576,994 | |
NET CASH USED IN OPERATING ACTIVITIES | -204,019 | -797,379 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | -64,082 | |
Due from related parties | 80,683 | -1,355,597 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES - CONTINUING OPERATIONS | 80,683 | -1,419,679 |
CASH PROVIDED BY INVESTING ACTIVITIES - DISCONTINUED OPERATIONS | 569,210 | |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 80,683 | -850,469 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from related parties | 31,404 | 87,558 |
Repayment to shareholders | -7,015 | |
CASH PROVIDED BY FINANCING ACTIVITIES - CONTINUING OPERATIONS | 31,404 | 80,543 |
CASH USED IN FINANCING ACTIVITIES - DISCONTINUED OPERATIONS | -98,659 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 31,404 | -18,116 |
Effect of exchange rate changes on cash and cash equivalents | 4,222 | 62,449 |
NET DECREASE IN CASH | -87,710 | -1,603,515 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 159,866 | 1,763,381 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 72,156 | 159,866 |
Supplementary Disclosures for Cash Flow Information: | ||
Income taxes paid | ||
Interest expense paid | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Netting off LT investment with due to related party | 140,637 | |
Extinguishment of liability to related party | 2,093,958 | |
Equity transfer consideration offsetted with due to shareholders | $885,696 |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES | The Company was incorporated under the laws of the State of Delaware in 1969. |
Hong Kong Wah Bon Enterprise Limited ("Wah Bon") was incorporated in Hong Kong on July 7, 2006 as an investment holding company. | |
Shaanxi Pacific New Energy Development Company Limited ("Shaanxi Pacific") was incorporated as a limited liability company in the People's Republic of China ("PRC") on July 20, 2007 as an investment holding company. | |
Shaanxi Changjiang Mining & New Energy Co., Ltd (“Shaanxi Changjiang”) (formerly Weinan Industrial and Commercial Company Limited) was incorporated as a limited liability company in the PRC on March 19, 1999. The Company became a joint stock company in January 2006 with its business activities in investment holding and the development of a theme park in Xi’An, PRC. | |
In August 2005, Shaanxi Changjiang contributed land use rights valued at $7,928,532 in lieu of cash to the registered capital of Huanghe representing 92.93% of the equity of Huanghe. Huanghe was incorporated as a limited liability company in the PRC on August 9, 2005 as Shaanxi Changjiang Petroleum and Energy Development Co., Limited and is engaged in the development of a theme park in Huanghe Bay (Huanghe Nantan), Heyang County, Shaanxi Province, PRC. | |
On February 5, 2007, Shaanxi Changjiang entered into an agreement with a third party to acquire 40% of the equity interest in East Mining Company Limited ("East Mining") for $3,117,267 in cash. East Mining is engaged in exploration for lead, zinc and gold for mining in Xunyan County, Shaanxi Province, PRC. | |
On March 22, 2007, Shaanxi Changjiang entered into an agreement with the majority shareholder of Shaanxi Changjiang to exchange its 92.93% interest in Huanghe for a 20% equity interest in East Mining owned by this related party. | |
On August 15, 2007, 97.2% of the shareholders of Shaanxi Changjiang entered into a definitive agreement with Shaanxi Pacific and the stockholders of Shaanxi Pacific in which they disposed their ownership in Shaanxi Changjiang to Shaanxi Pacific for 98% of ownership in Shaanxi Pacific and cash of $1,328,940 payable on or before December 31, 2007. | |
On September 2, 2007, Wah Bon acquired 100% ownership of Shaanxi Pacific for a cash consideration of $128,205. | |
On May 30, 2007, amended to July 5, 2007, North American Gaming and Entertainment Corporation (“North American”) entered into a Material Definitive Agreement, pursuant to which the shareholders of Shaanxi Changjiang exchanged all their shares in Shaanxi Changjiang for 500,000 shares of series C convertible preferred stock ("series C shares") in North American which carried the right of 1,218 votes per share and was convertible to 609,000,000 common shares. In connection with the exchange, Shaanxi Changjiang also delivered $370,000 to North American and certain non-affiliates of North American will transfer to North American or its designee a total of 3,800,000 shares of common stock, par value of $0.01 per share, of North American which had been held for longer than 2 years by such non-affiliates, in exchange for the issuance by North American to each of such non-affiliates of 2,250,000 shares of common stock of North American. Issued and outstanding share of series C preferred stock were automatically converted into that number of fully paid and non-assessable shares of common stock based upon the conversion rate upon the filing by the Company of an amendment to its Certificate of Incorporation, increasing the number of authorized shares of common stock to 800,000,000 shares, changing the Company's name to China Changjiang Mining & New Energy Co. Limited and implementing a one for ten reverse stock split. The transaction was closed on February 4, 2008 and Wah Bon became a wholly owned subsidiary of North American. | |
There was a 10 to 1 reverse stock split for the Company’s common stock during December 2009 and all the shares information are retroactively restated to reflect the reverse stock split. The Company will affect the reverse stock splits upon obtaining regulatory approval. The preferred stock holders will not convert their C convertible preferred stock until after the completion of the reverse stock split. | |
On February 9, 2010, we filed a Certificate of Amendment to our Articles of Incorporation to effect a 1-for-10 reverse stock split of our common stock, subject to FINRA approval. The 1-for-10 reverse split was approved by FINRA on July 30, 2010, effective August 2, 2010. | |
The Company was reincorporated from the state of Delaware to the state of Nevada with the intent to effect a statutory merger of the Delaware corporation "North American Gaming and Entertainment Corporation", into China Changjiang and to swap all issued and outstanding shares in the Delaware corporation for comparable shares in China Changjiang and dissolve the Delaware corporation. | |
The members have limited liability for the obligations or debts of the entity. | |
The merger of North American and Wah Bon was treated for accounting purposes as a capital transaction and recapitalization by Wah Bon ("the accounting acquirer") and re-organization by North American ("the accounting acquiree"). The consolidated financial statements have been prepared as if the reorganization had occurred retroactively. | |
On February 4, 2008, (the "Closing Date") we acquired Wah Bon and its three subsidiaries: Shaanxi Pacific; Shaanxi Changjiang and East Mining. Wah Bon owns 100% of Shaanxi Pacific. Shaanxi Pacific owns 97.2% of Shaanxi Changjiang; and Shaanxi Changjiang owns 60% of East Mining. The minority interests represent the minority shareholders' 2.8% and 40% share of the results of Shaanxi Changjiang and East Mining respectively. | |
The Company established a subsidiary, named Shaanxi Weinan Changjiang Solar Photovoltaic Energy Applied Science and Technology Co., Ltd. (“Changjiang PV”), in April 2012. The Company’s subsidiary, Shaanxi Changjiang accounted for 51% shares of Changjiang PV, and Mr. Zhang Hong Jun, the controlling person, accounted for the other 49% shares. | |
On December 30, 2013, the Company transferred all of the 60% equity of East Mining to its common control person, Mr. Zhang Hong Jun and one of the shareholders, Mr. Wang Sheng Li with a consideration of $885,696 (RMB 5,400,000). Each of the acquirers obtained 30% equity of East Mining in this transaction. There is no gain or loss recognized because this is a transaction between entities under common control. | |
China Changjiang, Wah Bon, Shaanxi Pacific, Shaanxi Changjiang and Changjiang PV are hereafter referred to collectively as "the Company". |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (a) Method of Accounting | ||||||||
The Company maintains its accounts and prepares its financial statements using the accrual method accounting. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied. | |||||||||
(b) Principles of consolidation | |||||||||
The accompanying consolidated financial statements as of December 31, 2014 and 2013 consolidate the financial statements of China Changjiang and its 100% owned subsidiary Wah Bon, 100% owned subsidiary Shaanxi Pacific, 97.2% owned subsidiary Shaanxi Changjiang and 51% owned subsidiary Changjiang PV. The minority interests represent the minority shareholders' 2.8% shares of the results of Shaanxi Changjiang and 49% shares of the results of Changjiang PV. | |||||||||
(c) Business combinations and consolidated financial statements | |||||||||
The acquisition on March 22, 2007, which Shaanxi Changjiang entered into an agreement with the majority stockholder of Shaanxi Changjiang to exchange its 92.93% interest in Huanghe for 20% equity interest in East Mining owned by this related party; the acquisition on August 15, 2007, which 97.2% of the stockholders of Shaanxi Changjiang entered into a definitive agreement with Shaanxi Pacific and the stockholders of Shaanxi Pacific pursuant to which they disposed their ownership in Shaanxi Changjiang to Shaanxi Pacific for 98% of ownership in Shaanxi Pacific; The acquisition on September 2, 2007, in which Wah Bon acquired 100% ownership of Shaanxi Pacific at a consideration of $128,205 in cash; and the stripping off of East Mining on December 25, 2013 were all accounted for as a reorganization of entities under common control. | |||||||||
(d) Basis of Presentation | |||||||||
The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). | |||||||||
This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC ("PRC GAAP"), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company to present them in conformity with US GAAP. | |||||||||
(e) Economic and Political Risks | |||||||||
The Company's operations are conducted in the PRC and involve risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | |||||||||
(f) Use of Estimates | |||||||||
In preparing of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These accounts and estimates include, but are not limited to, the valuation of accounts receivable, inventories, deferred income taxes and the estimation on useful lives of plant and machinery. Actual results could differ from those estimates. | |||||||||
(g) Concentrations of Credit Risk | |||||||||
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, notes receivable and amounts due from a related party. The Company places its cash with financial institutions with high-credit ratings and quality. In addition, the Company conducts periodic reviews of the related party financial conditions and payment practices. | |||||||||
(h) Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with initial maturities of three months or less to be cash equivalents. | |||||||||
(i) Property, plant and equipment | |||||||||
Property, plant and equipment, are stated at cost less depreciation and amortization and accumulated impairment loss. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. | |||||||||
Depreciation of property, plant and equipment is calculated based on cost, less their estimated residual value, if any, using the straight-line method over their estimated useful lives. Estimated useful lives are as follows: | |||||||||
Machinery | 5 years | ||||||||
Motor vehicles | 10 years | ||||||||
Furniture and office equipment | 5 years | ||||||||
(j) Intangible assets | |||||||||
All land belongs to the State in PRC. Enterprises and individuals can pay the State a fee to obtain a right to use a piece of land for commercial purpose or residential purpose for an initial period of 50 years or 70 years, respectively. The land use right can be sold, purchased, and exchanged in the market. The successor owner of the land use right will reduce the amount of time which has been consumed by the predecessor owner. | |||||||||
We acquired the 5.71 sq.km land use right parcel, located in Heyang Country, Shaanxi Province in 2005. Our land use rights are amortized over their fifty year term from October 2001 to October 2051. We have leased our land use right to Huanghe, a related party, and began to generate rent revenue from the year ended December 31, 2011. | |||||||||
(k) Impairment of long-lived assets | |||||||||
The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. There was no impairment of long-lived assets for the years ended December 31, 2014. The Company accrued a provision of $183,429 for its long-term investment to Shaanxi Changjiang Electricity & New Energy Co., Ltd. at the year ended December 31, 2013. And the Company disposed the remaining net value of $132,229 for the year ended December 31, 2014. | |||||||||
(l) Equity-method investment | |||||||||
An affiliated company over which the Company has the ability to exercise significant influence, but does not have a controlling interest is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee of between 20% and 50%, and other factors, such as representation on the investee’s Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company’s share of earnings of equity affiliate is included in the accompanying consolidated statements of operations below provision for income taxes. | |||||||||
(m) Fair value of financial instruments | |||||||||
The Company adopted ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”) (formerly SFAS No. 157, “Fair Value Measurements”), ASC 820 use of financial instruments Intangible Assets" and "Accounting for Impairment or Disposal of Long-Lived Assets" ("SFAS No. 142 and 144"). ASC Topic 820 defines fair value, establishes a three level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for current receivables and payables qualify as financial instruments. Management concluded the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available. The three levels are defined as follows: | |||||||||
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | |||||||||
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value. | |||||||||
It is management’s opinion that as of December 31, 2014, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheet. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. | |||||||||
(n) Foreign Currency Translation | |||||||||
The Group maintains its consolidated financial statements in the functional currency. The functional currency of the Company is US dollar (“USD”), the functional currency of "Wah Bon" is Hong Kong dollar (“HKD”), and the functional currency of "Shaanxi Pacific", "Shaanxi Changjiang" and "Changjiang PV" are the Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchanges rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. | |||||||||
For financial reporting purposes, the consolidated financial statements of the Company, "Wah Bon", "Shaanxi Pacific", "Shaanxi Changjiang" and "Changjiang PV" which are prepared using the functional currency have been translated into United States dollars (“USD”). Assets and liabilities are translated at the exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and stockholders’ equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity. | |||||||||
Exchange rates applied for the foreign currency translation during the period are as follows: | |||||||||
USD to RMB | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Period end US$ : RMB exchange rate | 6.146 | 6.0969 | |||||||
Average periodic US$ : RMB exchange rate | 6.1457 | 6.1912 | |||||||
USD to HKD | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Period end US$ : UHK exchange rate | 7.758 | 7.7555 | |||||||
Average periodic US$ : UHK exchange rate | 7.7519 | 7.7542 | |||||||
HK$ is pegged to US$ and hence there is no significant translation adjustment impact on these consolidated financial statements. | |||||||||
RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. | |||||||||
(o) Related Party | |||||||||
A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, member of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting party might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | |||||||||
Cash flows from due from related parties are classified as cash flows from investing activities. Cash flows from due to related parties are classified as cash flows from financing activities. | |||||||||
(p) Revenue Recognition | |||||||||
The Company recognizes revenue when the earnings process is complete, both significant risks and rewards of ownership are transferred or services have been rendered and accepted, the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||
The Company currently leased the land use right to Huanghe Bay Springs Lake Theme Park Ltd., a related company, for the development and operation of a theme park. The Company generally collects the annual rent every year, and then recognizes land use right leasing revenue over the beneficial period described by the agreement, as the revenue is realized or realizable and earned. | |||||||||
The Company supplied electricity power by its solar PV energy segment. The electricity revenue is earned and recognized upon transmission of electricity to Heyang County Huanghe Bay Resort Hotel Co., Ltd., a related company or the power grid controlled and owned by the respective regional or provincial grid companies. | |||||||||
(q) Income Taxes | |||||||||
The Company utilizes SFAS No. 109, “Accounting for Income Taxes,” codified in FASB ASC Topic 740, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |||||||||
ASC 740-10-25 clarifies the accounting for uncertain tax positions and requires that an entity recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as a component of income tax expense in the consolidated statements of income. | |||||||||
(r) Comprehensive Income/Loss | |||||||||
Comprehensive income/loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a consolidated financial statement that is presented with the same prominence as other financial statements. At present, the only component of other comprehensive income is the company’s foreign currency translation adjustment. | |||||||||
(s) Earning/Loss per share | |||||||||
Basic earning/loss per share is computed by dividing earning/loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earning/loss per share is computed in a manner similar to basic earning/loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. | |||||||||
(t) Recent Accounting Pronouncements | |||||||||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern”, which requires changes to the disclosure of uncertainties about an entity’s ability to continue as a going concern. Under U.S. GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, these changes require an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. These changes become effective for the Company for the 2016 annual period. Management does not expect the adoption of these changes to have a material impact on the Consolidated Financial Statements. | |||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard for revenue recognition, Accounting Standards Codification 606 (ASC 606). The purpose of ASC 606 is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability across industries. ASC 606 is effective for the Company for annual periods beginning January 1, 2017. The Company is currently evaluating the impact the adoption of this new standard will have on its financial position, results of operations, and cash flows. | |||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued guidance that changes the criteria for reporting a discontinued operation. According to the new guidance, only disposals of a component that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results are a discontinued operation. The new guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. The guidance is effective beginning January 1, 2015 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The Company does not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. |
OTHER_CURRENT_ASSETS_AND_PREPA
OTHER CURRENT ASSETS AND PREPAYMENTS | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 3 - OTHER CURRENT ASSETS AND PREPAYMENTS | Other current assets and prepayments of $80,535 mainly represent the small amount advances to the employees. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 4 - PROPERTY, PLANT AND EQUIPMENT | The following is a summary of property, plant and equipment: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Cost | |||||||||
Motor vehicles | $ | 237,471 | $ | 257,699 | |||||
EPC equipment | 318,498 | 321,063 | |||||||
Office equipment | 21,783 | 21,958 | |||||||
Total | 577,752 | 600,720 | |||||||
Accumulated depreciation | (263,272 | ) | (222,095 | ) | |||||
Property, plant and equipment, net | $ | 314,480 | $ | 378,625 | |||||
Depreciation expenses for the years ended December 31, 2014 and 2013 were $55,324 and $37,951 respectively. |
INTANGIBLE_ASSET
INTANGIBLE ASSET | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 5 - INTANGIBLE ASSET | The following is a summary of intangible asset: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Cost of Land use right | $ | 20,825,318 | $ | 20,993,030 | |||||
Accumulated Amortization of Land use right | (4,501,593 | ) | (4,117,985 | ) | |||||
Intangible Asset, net | $ | 16,323,725 | $ | 16,875,045 | |||||
The difference for the balance of cost was mainly due to fluctuation of exchange rate of USD to RMB. | |||||||||
Amortization expenses were approximately $416,527 and $414,416 for the years ended December 31, 2014, and 2013, respectively. |
LONG_TERM_INVESTMENT
LONG TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 6. LONG TERM INVESTMENT | The balance of $132,229 as of December 31, 2013 represents net value of the 20% equity of Shaanxi Changjiang Electricity & New Energy Co., Ltd. The Company is holding 20% equity of this associated company from 2008, with an investment cost of $315,658 (RMB 2, 000,000) and impairment of $183,429 was provided at the year ended December 31, 2013. |
On December 31, 2014 the Company disposed of this equity interest in exchange for a waiver of the debt of $201,899 owed to Shaanxi Changjiang Electricity & New Energy Co., Ltd., and the balance of long-term investment was zero at the year ended December 31, 2014 (refer to Note 17). |
DUE_FROM_RELATED_PARTIES_NON_C
DUE FROM RELATED PARTIES - NON CURRENT | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
Note 7 - DUE FROM RELATED PARTIES - NON CURRENT | The balance of $6,609,329 due from related parties represents the loan borrowed from related parties, which are unsecured and repayable on demand. | |||||||||
Due from related parties consists of the following. | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Du Kang Liquor Development Co., Ltd. | $ | 813,537 | $ | 820,089 | Interest free | |||||
Shaanxi Du Kang Liquor Group Co., Ltd. | 1,246,025 | 1,337,388 | Bear interest in the benchmark lending rate over the same period | |||||||
Zhongke Aerospace & Agriculture Development Stock Co., Ltd. | 459,649 | 463,350 | Interest free | |||||||
Shaanxi Huanghe Bay Springs Lake Theme Park Ltd. | 3,660,918 | 2,460,267 | Interest free | |||||||
Shaanxi Changfa Industrial Co., Ltd. | 374,227 | 377,241 | Interest free | |||||||
Shaanxi East Mining Co., Ltd. | 22,779 | 22,962 | Interest free | |||||||
Shaanxi Tangrenjie Advertising Co. (Previously “Shaanxi Changjiang Zhongxiayou Investment Co., Ltd.) | 5,288 | 5,331 | Interest free | |||||||
Heyang County Huanghe Bay Resort Hotel Co., Ltd. | 26,906 | - | Interest free | |||||||
Total | $ | 6,609,329 | $ | 5,486,628 |
OTHER_PAYABLES_AND_ACCRUED_EXP
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 8 - OTHER PAYABLES AND ACCRUED EXPENSES | The following is a summary of other payables and accrued liabilities: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Tax payable | $ | 273,358 | $ | 206,681 | |||||
Salary and welfare payable | 318 | 321 | |||||||
Other payable | 145,559 | 146,492 | |||||||
$ | 419,235 | $ | 353,494 |
DUE_TO_RELATED_PARTIES
DUE TO RELATED PARTIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 9 - DUE TO RELATED PARTIES | The balance of $3,275,191 due to related parties represents the loan owed to related parties, which are interest free, unsecured and repayable on demand twelve months after December 31, 2014. | ||||||||
Due to related parties consists of the following. | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Due to Huitong World Property Superintendent Company | $ | 406,769 | $ | 410,044 | |||||
Due to Zhongke Lvxiang Development Stock Co., Ltd | 1,138,952 | 1,148,124 | |||||||
Due to Shaanxi Changjiang Electricity & New Energy Co., Ltd | - | 203,525 | |||||||
Due to Shaanxi East Mining Co., Ltd | 1,701,956 | 1,700,901 | |||||||
Due to Baishui Du Kang Brand Management Co., Ltd | 9,762 | 9,841 | |||||||
Due to Shaanxi Xidenghui Technology Co. Ltd. | 993 | 1,002 | |||||||
Due to Shaanxi Dukang Liquor Trading Co., Ltd. | 16,759 | - | |||||||
Total | $ | 3,275,191 | $ | 3,473,437 |
DUE_TO_SHAREHOLDERS
DUE TO SHAREHOLDERS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 10 - DUE TO SHAREHOLDERS | The balance of $3,391,992 due to shareholders represents the loan owed to the shareholders, which are interest free, unsecured and repayable on demand twelve months after December 31, 2014. | ||||||||
Due to shareholders consists of the following. | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Due to Wang Sheng Li | $ | 1,795,296 | $ | 1,809,755 | |||||
Due to Zhang Hong Jun | 987,147 | 995,096 | |||||||
Due to Chen Min | 609,549 | 613,470 | |||||||
$ | 3,391,992 | $ | 3,418,321 | ||||||
The Company transferred 30% equity of East Mining to Mr. Zhang Hong Jun, with a consideration of $442,848 (RMB 2,700,000), on December 30, 2013. The balance of $995,096 as of December 31, 2013 and the balance of $987,147 as of December 31, 2014 represent the result after offsetting the due from amount of $442,848. | |||||||||
The Company transferred 30% equity of East Mining to Mr. Wang Sheng Li, with a consideration of $442,848 (RMB 2,700,000), on December 30, 2013. The balance of $1,809,755 as of December 31, 2013 and the balance of $1,795,296 as of December 31, 2014 represent the result after offsetting the due from amount of $442,848. | |||||||||
The transfer of East Mining is a transaction between entities under common control. No gain or loss is recognized for the transaction. |
PAYABLE_ON_ACQUISITION_OF_A_SU
PAYABLE ON ACQUISITION OF A SUBSIDIARY | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 11 - PAYABLE ON ACQUISITION OF A SUBSIDIARY | The payable of $2,049,066 (RMB 12,492,950) to a third party on acquisition of a subsidiary as of December 31, 2013 was a portion of the total acquisition consideration of $3,117,267 for 40% equity interest in East Mining Company Limited on February 5, 2007. |
On December 30, 2013, the Company transferred all of the 60% equity of East Mining to its control person, Mr. Zhang Hong Jun and one of the other company shareholders, Mr. Wang Sheng Li, with a consideration of $885,696 (RMB 5,400,000). | |
On December 31, 2014, the third party obligee, who held 2.75% equity interest of the Company, disclaimed the right to collect this remaining amount of $2,049,066. The balance of payable on acquisition of a subsidiary was zero as of December 31, 2014. | |
The extinguishment of the payable on acquisition of a subsidiary is related to the disposal of the East Mining as disclosed in Footnote 10 and is deemed as part of the transaction between entities under common control. No gain is recognized for the transaction. Instead, the amount is recorded as a credit to additional paid in capital. |
RELATED_PARTY_SALES_REVENUE
RELATED PARTY SALES REVENUE | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 12 - RELATED PARTY SALES REVENUE | The Company entered into a lease and complementary agreements with the related company Huanghe Bay Springs Lake Theme Park Ltd. dated July 26, 2010. According to the agreements, a piece of land with the area of 5,706,666.67 square meters was leased to Huanghe for traveling and amusement from January 1, 2011 to December 31, 2029. The rent revenue for the year ended December 31, 2014 was $1,220,365 (RMB 7,500,000). |
In addition, the Company began to generate electricity revenue of $ 26,908 in solar PV business for the year ended December 31, 2014. All of this electricity power was supplied to Heyang County Huanghe Bay Resort Hotel Co. Ltd., a related company of the Company. |
INCOME_TAX
INCOME TAX | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
Note 13 - INCOME TAX | China Changjiang is incorporated in the United States and has incurred net operating income of nil, as for income tax purposes, both for the years ended December 31, 2014 and 2013. The Company’s other subsidiaries and discontinued operations are subject to income tax described below. | |||||||||
Hong Kong | ||||||||||
Wah Bon is incorporated in Hong Kong and subject to Hong Kong profits tax. Wah Bon has no operating profit or tax liabilities during the period presented. | ||||||||||
PRC | ||||||||||
On March 16, 2007, the National People’s Congress passed the Enterprise Income Tax Law (“the China EIT Law”), which was effective as of January 1, 2008. | ||||||||||
Shaanxi Pacific, Shaanxi Changjiang and Changjiang PV are incorporated in the PRC and subject to 25% China statutory tax rate. And they are subject to effective income tax rate of zero both for the year ended December 31, 2014 and 2013. Shaanxi Pacific did not incur any operating income for the years ended December 31, 2014 and 2013. Shaanxi Changjiang incurred net loss, for income tax purpose, for the year ended December 31, 2014 and 2013. Changjiang PV had net losses for the year ended December 31, 2014 and 2013. | ||||||||||
The China EIT Law also provides that an enterprise established under the laws of foreign countries or regions but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purpose and consequently be subject to the PRC income tax at the rate of 25% for its worldwide income. The Implementing Rules of the China EIT Law merely defines the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” On April 22, 2009, the PRC State Administration of Taxation further issued a notice entitled “Notice regarding Recognizing Offshore-Established Enterprises Controlled by PRC Shareholders as Resident Enterprises Based on Their place of Effective Management.” Under this notice, a foreign company controlled by a PRC company or a group of PRC companies shall be deemed as a PRC resident enterprise, if (i) the senior management and the core management departments in charge of its daily operations mainly function in the PRC; (ii) its financial decisions and human resource decisions are subject to decisions or approvals of persons or institutions in the PRC; (iii) its major assets, accounting books, company sales, minutes and files of board meetings and shareholders’ meetings are located or kept in the PRC; and (iv) more than half of the directors or senior management personnel with voting rights reside in the PRC. Based on a review of surrounding facts and circumstances, the Company does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the China EIT Law, should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC tax on worldwide income at a uniform tax rate of 25% retroactive to September 19, 2008. | ||||||||||
The China EIT Law also imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. Such withholding income tax was exempted under the previous income tax regulations. The United States of America, where the Company is incorporated, has such tax treaty with China. | ||||||||||
The provision for taxes on earnings consisted of: | ||||||||||
For the year ended December 31, 2014 | For the year ended December 31, 2013 | |||||||||
$ | $ | |||||||||
PRC Enterprise Income Tax | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
United States Federal Income Tax | Continuing operations | - | - | |||||||
Discontinued operations | N/A | - | ||||||||
Income tax expense (benefit),net | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
The income taxes expense (benefit), which is all incurred in PRC, consists of the following: | ||||||||||
For the year ended December 31, 2014 | For the year ended December 31, 2013 | |||||||||
$ | $ | |||||||||
Current income tax expense | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
Deferred income tax benefit | Continuing operations | - | - | |||||||
Discontinued operations | N/A | - | ||||||||
Income tax expense (benefit),net | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
The following table reconciles the statutory U.S. federal income tax rate to the Company’s effective income tax rate for the year ended December 31, 2014 and 2013 for continuing operations: | ||||||||||
For the year ended December 31, 2014 | For the year ended December 31, 2013 | |||||||||
U.S. Federal statutory rate | 35 | % | 35 | % | ||||||
PRC Statutory rate (25%) difference | -10 | % | -10 | % | ||||||
Changes in valuation allowance for DTA | -25 | % | -25 | % | ||||||
Effective income tax rate | 0 | % | 0 | % | ||||||
As of December 31, 2014, the Company had net taxable operating losses of approximately $528,840 carried forward for the future years. The PRC Income Tax allows the enterprises to offset their future taxable income with taxable operating losses carried forward in a 5-year period. The Management believes that the Company’s cumulative losses arising from recurring business in recent years constituted significant negative evidence that most of the deferred tax assets would not be realizable and this evidence outweighed the expectations that the Company would generate future taxable income. The valuation allowance of $132,210 was recorded. | ||||||||||
Components of the Company’s net deferred tax assets for continuing operations are set forth below: | ||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||
Deferred tax assets | ||||||||||
Net operating loss carry-forward | $ | 185,148 | $ | 5,604,537 | ||||||
Total of Deferred tax assets | $ | 185,148 | $ | 5,604,537 | ||||||
Less: valuation allowance | $ | (185,148 | ) | $ | (5,604,537 | ) | ||||
Net deferred assets | $ | - | $ | - | ||||||
Accounting for Uncertainty in Income Taxes | ||||||||||
The Company adopted the provisions of Accounting for Uncertainty in Income Taxes. The provisions clarify the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with the standard “Accounting for Income Taxes,” and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The provisions of Accounting for Uncertainty in Income Taxes also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. | ||||||||||
Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements. | ||||||||||
The Company may from time to time be assessed interest or penalties by major tax jurisdictions. In the event it receives an assessment for interest and/or penalties, it will be classified in the financial statements as tax expense. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
Note 14. DISCONTINUED OPERATIONS | On December 30, 2013, the Company transferred all of the 60% equity of East Mining to its control person, Mr. Zhang Hong Jun and one of the other company shareholders, Mr. Wang Sheng Li, with a consideration of $885,696 (RMB 5,400,000). Each of the acquirers obtained 30% equity in this transaction. The transfer of East Mining is a transaction between entities under common control. No gain or loss is recognized for the transaction | |||||||||
The following table summarized the financial position of East Mining as of the date of sale. | ||||||||||
Balance as of December 30, 2013 | Balance as of December 30, 2013 | |||||||||
$ | $ | |||||||||
Cash on hand | 271 | Due to shareholders | 8,201 | |||||||
Cash in bank | 24,274 | Wages Payable | 25,178 | |||||||
Other receivable | 1,636,503 | Tax Payable | 953,965 | |||||||
Due From Related Party | 1,881,186 | Other payable | 9,629 | |||||||
Due from shareholders | 49,205 | Due To Related Party | 121,373 | |||||||
Inventories, Net | 213 | Invested capital | 1,476,160 | |||||||
Fixed Asset, Net | 3,124 | Retained earnings | 1,000,270 | |||||||
Total Assets | 3,594,776 | Total Liabilities & Shareholders' Equity | 3,594,776 | |||||||
East Mining consummated the sale of its mines exploration rights to Xunyang County Yongjin Mining Co., Ltd for business purpose with a consideration of $2,422,794 (RMB 15,000,000). The transaction was completed and the outstanding amount was settled as of December 31, 2013. The gain of $2,294,386 on disposal of mines consists of the considerations and the total of $128,408 for the related business tax and the surcharges. | ||||||||||
Discontinued operations for the years ended December 31, 2013 are summarized as follows. | ||||||||||
For the year ended December 31, 2013 | ||||||||||
$ | ||||||||||
Sales revenue | - | |||||||||
Cost of revenue | - | |||||||||
Gross Profit | - | |||||||||
Operating expenses(income) | ||||||||||
Administrative expenses | 74,407 | |||||||||
Gain on disposal of asset | (2,294,386 | ) | ||||||||
Depreciation | 1,427 | |||||||||
Total operating income | (2,218,552 | ) | ||||||||
Income from operations | 2,218,552 | |||||||||
Other Income (Expenses) | ||||||||||
Interest income | 41,027 | |||||||||
Interest expenses | (1,752 | ) | ||||||||
Allowance for long term investment | - | |||||||||
Total Other Income | 39,275 | |||||||||
Income before tax | 2,257,827 | |||||||||
Income tax expense | 564,608 | |||||||||
Net Income | 1,693,219 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 15 - RELATED PARTY TRANSACTIONS | In addition to the other transactions and balances disclosed elsewhere in the financial statements, the Company generated revenue with related parties as follows. |
The Company leased the land use right to Shaanxi Huanghe Bay Springs Lake Theme Park Ltd., a company with the same controlling person as the Company, and generated rent revenue of $1,220,365 at the year ended December 31, 2014. | |
The Company began to provide solar power to Heyang County Huanghe Bay Resort Hotel Co., Ltd., a company with the same controlling person as the Company, with a revenue of $26,908 at the year ended December 31, 2014. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Notes to Financial Statements | |||||||||
Note 16 - SEGMENT INFORMATION | Company operated in two reportable segments, Land use right leasing, and solar PV energy. Summarized information by business segment for the year ended December 31, 2014 and 2013 is as follows. | ||||||||
For the year ended | For the year ended | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Revenue | |||||||||
Land use right leasing | $ | 1,220,365 | $ | 1,211,397 | |||||
Solar PV energy | 26,908 | - | |||||||
Cost of revenue | |||||||||
Land use right leasing | 68,340 | 67,838 | |||||||
Solar PV energy | - | - | |||||||
Gross Profits | |||||||||
Land use right leasing | 1,152,025 | 1,143,559 | |||||||
Solar PV energy | 26,908 | - | |||||||
The Company evaluates segment performance based on income from operations. As a result, the components of operating income for one segment may not be comparable to another segment. |
EXEMPTION_FROM_DEBT_OWED_TO_A_
EXEMPTION FROM DEBT OWED TO A RELATED PARTY | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 17 - EXEMPTION FROM DEBT OWED TO A RELATED PARTY | The Company was exempt from a loan of $201,899, owed to Shaanxi Changjiang Electricity & New Energy Co., Ltd., a related company with the same controlling person, as of December 31, 2014. |
Because the Company disposed of its 20% equity interest in Shaanxi Changjiang Electricity & New Energy Co., Ltd., whose net value was $132,229, in exchange for a waiver of this loan as of December 31, 2014 (Note 6). | |
The exemption of loan is a transaction between entities under common control. No gain is recognized for the transaction. Instead, the amount $69,670, after netting the loan with long-term investment, is recorded as a credit to additional paid in capital. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 18 - SUBSEQUENT EVENTS | On August 2, 2013, the Company entered into a leasing agreement for its headquarters in Xi’an City, Shaanxi Province PRC with Binlin Zhao, for a term of one year. The lease agreement was expired on January 31, 2015. After the agreement expired, the Company continued to lease with the same landlord on a month by month basis. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary Of Significant Accounting Policies Policies | |||||||||
Method of Accounting | The Company maintains its accounts and prepares its financial statements using the accrual method accounting. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied. | ||||||||
Principles of consolidation | The accompanying consolidated financial statements as of December 31, 2014 and 2013 consolidate the financial statements of China Changjiang and its 100% owned subsidiary Wah Bon, 100% owned subsidiary Shaanxi Pacific, 97.2% owned subsidiary Shaanxi Changjiang and 51% owned subsidiary Changjiang PV. The minority interests represent the minority shareholders' 2.8% shares of the results of Shaanxi Changjiang and 49% shares of the results of Changjiang PV. | ||||||||
Business combinations and consolidated financial statements | The acquisition on March 22, 2007, which Shaanxi Changjiang entered into an agreement with the majority stockholder of Shaanxi Changjiang to exchange its 92.93% interest in Huanghe for 20% equity interest in East Mining owned by this related party; the acquisition on August 15, 2007, which 97.2% of the stockholders of Shaanxi Changjiang entered into a definitive agreement with Shaanxi Pacific and the stockholders of Shaanxi Pacific pursuant to which they disposed their ownership in Shaanxi Changjiang to Shaanxi Pacific for 98% of ownership in Shaanxi Pacific; The acquisition on September 2, 2007, in which Wah Bon acquired 100% ownership of Shaanxi Pacific at a consideration of $128,205 in cash; and the stripping off of East Mining on December 25, 2013 were all accounted for as a reorganization of entities under common control. | ||||||||
Basis of Presentation | The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). | ||||||||
This basis of accounting differs in certain material respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC ("PRC GAAP"), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company to present them in conformity with US GAAP. | |||||||||
Economic and Political Risks | The Company's operations are conducted in the PRC and involve risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. | ||||||||
Use of Estimates | In preparing of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These accounts and estimates include, but are not limited to, the valuation of accounts receivable, inventories, deferred income taxes and the estimation on useful lives of plant and machinery. Actual results could differ from those estimates. | ||||||||
Concentrations of Credit Risk | Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, notes receivable and amounts due from a related party. The Company places its cash with financial institutions with high-credit ratings and quality. In addition, the Company conducts periodic reviews of the related party financial conditions and payment practices. | ||||||||
Cash and Cash Equivalents | The Company considers all highly liquid investments with initial maturities of three months or less to be cash equivalents. | ||||||||
Property, plant and equipment | Property, plant and equipment, are stated at cost less depreciation and amortization and accumulated impairment loss. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. | ||||||||
Depreciation of property, plant and equipment is calculated based on cost, less their estimated residual value, if any, using the straight-line method over their estimated useful lives. Estimated useful lives are as follows: | |||||||||
Machinery | 5 years | ||||||||
Motor vehicles | 10 years | ||||||||
Furniture and office equipment | 5 years | ||||||||
Intangible assets | All land belongs to the State in PRC. Enterprises and individuals can pay the State a fee to obtain a right to use a piece of land for commercial purpose or residential purpose for an initial period of 50 years or 70 years, respectively. The land use right can be sold, purchased, and exchanged in the market. The successor owner of the land use right will reduce the amount of time which has been consumed by the predecessor owner. | ||||||||
We acquired the 5.71 sq.km land use right parcel, located in Heyang Country, Shaanxi Province in 2005. Our land use rights are amortized over their fifty year term from October 2001 to October 2051. We have leased our land use right to Huanghe, a related party, and began to generate rent revenue from the year ended December 31, 2011. | |||||||||
Impairment of long-lived assets | The Company accounts for impairment of property and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value. There was no impairment of long-lived assets for the years ended December 31, 2014. The Company accrued a provision of $183,429 for its long-term investment to Shaanxi Changjiang Electricity & New Energy Co., Ltd. at the year ended December 31, 2013. And the Company disposed the remaining net value of $132,229 for the year ended December 31, 2014. | ||||||||
Equity-method investment | An affiliated company over which the Company has the ability to exercise significant influence, but does not have a controlling interest is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee of between 20% and 50%, and other factors, such as representation on the investee’s Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. The Company’s share of earnings of equity affiliate is included in the accompanying consolidated statements of operations below provision for income taxes. | ||||||||
Fair value of financial instruments | The Company adopted ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”) (formerly SFAS No. 157, “Fair Value Measurements”), ASC 820 use of financial instruments Intangible Assets" and "Accounting for Impairment or Disposal of Long-Lived Assets" ("SFAS No. 142 and 144"). ASC Topic 820 defines fair value, establishes a three level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for current receivables and payables qualify as financial instruments. Management concluded the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available. The three levels are defined as follows: | ||||||||
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | |||||||||
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value. | |||||||||
It is management’s opinion that as of December 31, 2014, the estimated fair values of the financial instruments were not materially different from their carrying values as presented on the balance sheet. This is attributed to the short maturities of the instruments and that interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective balance sheet dates. | |||||||||
Foreign Currency Translation | The Group maintains its consolidated financial statements in the functional currency. The functional currency of the Company is US dollar (“USD”), the functional currency of "Wah Bon" is Hong Kong dollar (“HKD”), and the functional currency of "Shaanxi Pacific", "Shaanxi Changjiang" and "Changjiang PV" are the Renminbi (“RMB”). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchanges rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. | ||||||||
For financial reporting purposes, the consolidated financial statements of the Company, "Wah Bon", "Shaanxi Pacific", "Shaanxi Changjiang" and "Changjiang PV" which are prepared using the functional currency have been translated into United States dollars (“USD”). Assets and liabilities are translated at the exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and stockholders’ equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity. | |||||||||
Exchange rates applied for the foreign currency translation during the period are as follows: | |||||||||
USD to RMB | |||||||||
31-Dec-14 | December 31, | ||||||||
2013 | |||||||||
Period end US$ : RMB exchange rate | 6.146 | 6.0969 | |||||||
Average periodic US$ : RMB exchange rate | 6.1457 | 6.1912 | |||||||
USD to HKD | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Period end US$ : UHK exchange rate | 7.758 | 7.7555 | |||||||
Average periodic US$ : UHK exchange rate | 7.7519 | 7.7542 | |||||||
HK$ is pegged to US$ and hence there is no significant translation adjustment impact on these consolidated financial statements. | |||||||||
RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation | |||||||||
Related Party | A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, member of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting party might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party. | ||||||||
Cash flows from due from related parties are classified as cash flows from investing activities. Cash flows from due to related parties are classified as cash flows from financing activities. | |||||||||
Revenue Recognition | The Company recognizes revenue when the earnings process is complete, both significant risks and rewards of ownership are transferred or services have been rendered and accepted, the selling price is fixed or determinable, and collectability is reasonably assured. | ||||||||
The Company currently leased the land use right to Huanghe Bay Springs Lake Theme Park Ltd., a related company, for the development and operation of a theme park. The Company generally collects the annual rent every year, and then recognizes land use right leasing revenue over the beneficial period described by the agreement, as the revenue is realized or realizable and earned. | |||||||||
The Company supplied electricity power by its solar PV energy segment. The electricity revenue is earned and recognized upon transmission of electricity to Heyang County Huanghe Bay Resort Hotel Co., Ltd., a related company or the power grid controlled and owned by the respective regional or provincial grid companies. | |||||||||
Income Taxes | The Company utilizes SFAS No. 109, “Accounting for Income Taxes,” codified in FASB ASC Topic 740, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||
ASC 740-10-25 clarifies the accounting for uncertain tax positions and requires that an entity recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as a component of income tax expense in the consolidated statements of income. | |||||||||
Comprehensive Income/Loss | Comprehensive income/loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a consolidated financial statement that is presented with the same prominence as other financial statements. At present, the only component of other comprehensive income is the company’s foreign currency translation adjustment. | ||||||||
Earning/Loss per share | Basic earning/loss per share is computed by dividing earning/loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earning/loss per share is computed in a manner similar to basic earning/loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. | ||||||||
Recent Accounting Pronouncements | In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern”, which requires changes to the disclosure of uncertainties about an entity’s ability to continue as a going concern. Under U.S. GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Even if an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. Because there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related note disclosures, there is diversity in practice whether, when, and how an entity discloses the relevant conditions and events in its financial statements. As a result, these changes require an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued. Substantial doubt is defined as an indication that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that financial statements are issued. If management has concluded that substantial doubt exists, then the following disclosures should be made in the financial statements: (i) principal conditions or events that raised the substantial doubt, (ii) management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, (iii) management’s plans that alleviated the initial substantial doubt or, if substantial doubt was not alleviated, management’s plans that are intended to at least mitigate the conditions or events that raise substantial doubt, and (iv) if the latter in (iii) is disclosed, an explicit statement that there is substantial doubt about the entity’s ability to continue as a going concern. These changes become effective for the Company for the 2016 annual period. Management does not expect the adoption of these changes to have a material impact on the Consolidated Financial Statements. | ||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard for revenue recognition, Accounting Standards Codification 606 (ASC 606). The purpose of ASC 606 is to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability across industries. ASC 606 is effective for the Company for annual periods beginning January 1, 2017. The Company is currently evaluating the impact the adoption of this new standard will have on its financial position, results of operations, and cash flows. | |||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued guidance that changes the criteria for reporting a discontinued operation. According to the new guidance, only disposals of a component that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results are a discontinued operation. The new guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. The guidance is effective beginning January 1, 2015 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The Company does not expect the adoption of the new provisions to have a material impact on our financial condition or results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary Of Significant Accounting Policies Tables | |||||||||
Estimated useful lives | Estimated useful lives are as follows: | ||||||||
Machinery | 5 years | ||||||||
Motor vehicles | 10 years | ||||||||
Furniture and office equipment | 5 years | ||||||||
Exchange rates applied for foreign currency translation | Exchange rates applied for the foreign currency translation during the period are as follows: | ||||||||
USD to RMB | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Period end US$ : RMB exchange rate | 6.146 | 6.0969 | |||||||
Average periodic US$ : RMB exchange rate | 6.1457 | 6.1912 | |||||||
USD to HKD | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Period end US$ : UHK exchange rate | 7.758 | 7.7555 | |||||||
Average periodic US$ : UHK exchange rate | 7.7519 | 7.7542 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant And Equipment Tables | |||||||||
Property plant and equipment | The following is a summary of property, plant and equipment: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Cost | |||||||||
Motor vehicles | $ | 237,471 | $ | 257,699 | |||||
EPC equipment | 318,498 | 321,063 | |||||||
Office equipment | 21,783 | 21,958 | |||||||
Total | 577,752 | 600,720 | |||||||
Accumulated depreciation | (263,272 | ) | (222,095 | ) | |||||
Property, plant and equipment, net | $ | 314,480 | $ | 378,625 |
INTANGIBLE_ASSET_Tables
INTANGIBLE ASSET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Intangible Asset Tables | |||||||||
Summary of intangible asset | The following is a summary of intangible asset: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Cost of Land use right | $ | 20,825,318 | $ | 20,993,030 | |||||
Accumulated Amortization of Land use right | (4,501,593 | ) | (4,117,985 | ) | |||||
Intangible Asset, net | $ | 16,323,725 | $ | 16,875,045 |
DUE_FROM_RELATED_PARTIES_NON_C1
DUE FROM RELATED PARTIES - NON CURRENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Due From Related Parties - Non Current Tables | ||||||||||
Due from related parties | Due from related parties consists of the following. | |||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Du Kang Liquor Development Co., Ltd. | $ | 813,537 | $ | 820,089 | Interest free | |||||
Shaanxi Du Kang Liquor Group Co., Ltd. | 1,246,025 | 1,337,388 | Bear interest in the benchmark lending rate over the same period | |||||||
Zhongke Aerospace & Agriculture Development Stock Co., Ltd. | 459,649 | 463,350 | Interest free | |||||||
Shaanxi Huanghe Bay Springs Lake Theme Park Ltd. | 3,660,918 | 2,460,267 | Interest free | |||||||
Shaanxi Changfa Industrial Co., Ltd. | 374,227 | 377,241 | Interest free | |||||||
Shaanxi East Mining Co., Ltd. | 22,779 | 22,962 | Interest free | |||||||
Shaanxi Tangrenjie Advertising Co. (Previously “Shaanxi Changjiang Zhongxiayou Investment Co., Ltd.) | 5,288 | 5,331 | Interest free | |||||||
Heyang County Huanghe Bay Resort Hotel Co., Ltd. | 26,906 | - | Interest free | |||||||
Total | $ | 6,609,329 | $ | 5,486,628 |
OTHER_PAYABLES_AND_ACCRUED_EXP1
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Payables And Accrued Expenses Tables | |||||||||
Summary of other payables and accrued liabilities | The following is a summary of other payables and accrued liabilities: | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Tax payable | $ | 273,358 | $ | 206,681 | |||||
Salary and welfare payable | 318 | 321 | |||||||
Other payable | 145,559 | 146,492 | |||||||
$ | 419,235 | $ | 353,494 |
DUE_TO_RELATED_PARTIES_Tables
DUE TO RELATED PARTIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Due To Related Parties Tables | |||||||||
Due to related parties | Due to related parties consists of the following. | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Due to Huitong World Property Superintendent Company | $ | 406,769 | $ | 410,044 | |||||
Due to Zhongke Lvxiang Development Stock Co., Ltd | 1,138,952 | 1,148,124 | |||||||
Due to Shaanxi Changjiang Electricity & New Energy Co., Ltd | - | 203,525 | |||||||
Due to Shaanxi East Mining Co., Ltd | 1,701,956 | 1,700,901 | |||||||
Due to Baishui Du Kang Brand Management Co., Ltd | 9,762 | 9,841 | |||||||
Due to Shaanxi Xidenghui Technology Co. Ltd. | 993 | 1,002 | |||||||
Due to Shaanxi Dukang Liquor Trading Co., Ltd. | 16,759 | - | |||||||
Total | $ | 3,275,191 | $ | 3,473,437 |
DUE_TO_SHAREHOLDERS_Tables
DUE TO SHAREHOLDERS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Due To Shareholders Tables | |||||||||
Due to shareholders | Due to shareholders consists of the following. | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Due to Wang Sheng Li | $ | 1,795,296 | $ | 1,809,755 | |||||
Due to Zhang Hong Jun | 987,147 | 995,096 | |||||||
Due to Chen Min | 609,549 | 613,470 | |||||||
$ | 3,391,992 | $ | 3,418,321 |
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Tables | ||||||||||
Provision for taxes on earnings | The provision for taxes on earnings consisted of: | |||||||||
For the year ended December 31, 2014 | For the year ended December 31, 2013 | |||||||||
$ | $ | |||||||||
PRC Enterprise Income Tax | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
United States Federal Income Tax | Continuing operations | - | - | |||||||
Discontinued operations | N/A | - | ||||||||
Income tax expense (benefit),net | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
Income taxes expense (benefit) | The income taxes expense (benefit), which is all incurred in PRC, consists of the following: | |||||||||
For the year ended December 31, 2014 | For the year ended December 31, 2013 | |||||||||
$ | $ | |||||||||
Current income tax expense | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
Deferred income tax benefit | Continuing operations | - | - | |||||||
Discontinued operations | N/A | - | ||||||||
Income tax expense (benefit),net | Continuing operations | - | - | |||||||
Discontinued operations | N/A | 564,608 | ||||||||
Schedule of Income Tax Rate Reconciliation | The following table reconciles the statutory U.S. federal income tax rate to the Company’s effective income tax rate for the year ended December 31, 2014 and 2013 for continuing operations: | |||||||||
For the year ended December 31, 2014 | For the year ended December 31, 2013 | |||||||||
U.S. Federal statutory rate | 35 | % | 35 | % | ||||||
PRC Statutory rate (25%) difference | -10 | % | -10 | % | ||||||
Changes in valuation allowance for DTA | -25 | % | -25 | % | ||||||
Effective income tax rate | 0 | % | 0 | % | ||||||
Components of the Company's net deferred tax | Components of the Company’s net deferred tax assets for continuing operations are set forth below: | |||||||||
31-Dec-14 | 31-Dec-13 | |||||||||
Deferred tax assets | ||||||||||
Net operating loss carry-forward | $ | 185,148 | $ | 5,604,537 | ||||||
Total of Deferred tax assets | $ | 185,148 | $ | 5,604,537 | ||||||
Less: valuation allowance | $ | (185,148 | ) | $ | (5,604,537 | ) | ||||
Net deferred assets | $ | - | $ | - | ||||||
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Discontinued Operations Tables | ||||||||||
Summarized financial position, discontinued operations | The following table summarized the financial position of East Mining as of the date of sale. | |||||||||
Balance as of December 30, 2013 | Balance as of December 30, 2013 | |||||||||
$ | $ | |||||||||
Cash on hand | 271 | Due to shareholders | 8,201 | |||||||
Cash in bank | 24,274 | Wages Payable | 25,178 | |||||||
Other receivable | 1,636,503 | Tax Payable | 953,965 | |||||||
Due From Related Party | 1,881,186 | Other payable | 9,629 | |||||||
Due from shareholders | 49,205 | Due To Related Party | 121,373 | |||||||
Inventories, Net | 213 | Invested capital | 1,476,160 | |||||||
Fixed Asset, Net | 3,124 | Retained earnings | 1,000,270 | |||||||
Total Assets | 3,594,776 | Total Liabilities & Shareholders' Equity | 3,594,776 | |||||||
Summarized income statement, discontinued operations | Discontinued operations for the years ended December 31, 2013 are summarized as follows. | |||||||||
For the year ended December 31, 2013 | ||||||||||
$ | ||||||||||
Sales revenue | - | |||||||||
Cost of revenue | - | |||||||||
Gross Profit | - | |||||||||
Operating expenses(income) | ||||||||||
Administrative expenses | 74,407 | |||||||||
Gain on disposal of asset | (2,294,386 | ) | ||||||||
Depreciation | 1,427 | |||||||||
Total operating income | (2,218,552 | ) | ||||||||
Income from operations | 2,218,552 | |||||||||
Other Income (Expenses) | ||||||||||
Interest income | 41,027 | |||||||||
Interest expenses | (1,752 | ) | ||||||||
Allowance for long term investment | - | |||||||||
Total Other Income | 39,275 | |||||||||
Income before tax | 2,257,827 | |||||||||
Income tax expense | 564,608 | |||||||||
Net Income | 1,693,219 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Segment Information Tables | |||||||||
Summarized information by business segment | Summarized information by business segment for the year ended December 31, 2014 and 2013 is as follows. | ||||||||
For the year ended | For the year ended | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Revenue | |||||||||
Land use right leasing | $ | 1,220,365 | $ | 1,211,397 | |||||
Solar PV energy | 26,908 | - | |||||||
Cost of revenue | |||||||||
Land use right leasing | 68,340 | 67,838 | |||||||
Solar PV energy | - | - | |||||||
Gross Profits | |||||||||
Land use right leasing | 1,152,025 | 1,143,559 | |||||||
Solar PV energy | 26,908 | - |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Machinery [Member] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Estimated useful lives | 10 years |
Furniture and office equipment [Member] | |
Estimated useful lives | 5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details1) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
USD to RMB [Member] | ||
Period end exchange rate | 6.146 | 6.0969 |
Average periodic exchange rate | 6.1457 | 6.1912 |
USD to HKD [Member] | ||
Period end exchange rate | 7.758 | 7.7555 |
Average periodic exchange rate | 7.7519 | 7.7542 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for long term investment | ($183,429) | |
Disposed remaining net value | 132,229 | |
Wah Bon [Member] | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Shaanxi Pacific [Member] | ||
Ownership interest in subsidiary | 100.00% | 100.00% |
Shaanxi Changjiang [Member] | ||
Ownership interest in subsidiary | 97.20% | 97.20% |
Minority interest | 2.80% | 2.80% |
Allowance for long term investment | 183,429 | |
Disposed remaining net value | $132,229 | |
Changjiang PV [Member] | ||
Ownership interest in subsidiary | 51.00% | 51.00% |
Minority interest | 49.00% | 49.00% |
OTHER_CURRENT_ASSETS_AND_PREPA1
OTHER CURRENT ASSETS AND PREPAYMENTS (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Current Assets And Prepayments Details Narrative | ||
Other current assets and prepayments | $80,535 | $155,564 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total | $577,752 | $600,720 |
Accumulated depreciation | -263,272 | -222,095 |
Preperty, plant & equipment, net | 314,480 | 378,625 |
Motor vehicles [Member] | ||
Total | 237,471 | 257,699 |
EPC Equipments [Member] | ||
Total | 318,498 | 321,063 |
Office Equipment [Member] | ||
Total | $21,783 | $21,958 |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment Details Narrative | ||
Depreciation expenses | $55,324 | $37,951 |
INTANGIBLE_ASSET_Details
INTANGIBLE ASSET (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Intangible Asset Tables | ||
Cost of Land use right | $20,825,318 | $20,993,030 |
Accumulated Amortization of Land use right | -4,501,593 | -4,117,985 |
Intangible Asset, net | $16,323,725 | $16,875,045 |
INTANGIBLE_ASSET_Details_Narra
INTANGIBLE ASSET (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Asset Details Narrative | ||
Amortization expenses | $416,527 | $414,416 |
LONG_TERM_INVESTMENT_Details_N
LONG TERM INVESTMENT( Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disposed remaining net value | $132,229 | |
Impairment | 183,429 | |
Shaanxi Changjiang [Member] | ||
Disposed remaining net value | 132,229 | |
Disposed equity interest | $201,899 |
DUE_FROM_RELATED_PARTIES_NON_C2
DUE FROM RELATED PARTIES - NON CURRENT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due from related parties non current | $6,609,329 | $5,486,628 |
Du Kang Liquor Development Co Ltd [Member] | ||
Due from related parties non current | 813,537 | 820,089 |
Shaanxi Du Kang Liquor Group Co Ltd [Member] | ||
Due from related parties non current | 1,246,025 | 1,337,388 |
Zhongke Aerospace And Agriculture Development Stock Co Ltd [Member] | ||
Due from related parties non current | 459,649 | 463,350 |
Shaanxi Huanghe Bay Springs Lake Theme Park Ltd [Member] | ||
Due from related parties non current | 3,660,918 | 2,460,267 |
Shaanxi Changfa Industrial Co LTD [Member] | ||
Due from related parties non current | 374,227 | 377,241 |
Shaanxi East Mining Co Ltd [Member] | ||
Due from related parties non current | 22,779 | 22,962 |
Shaanxi Tangrenjie Advertising Co. (Previously BShaanxi Changjiang Zhongxiayou Investment Co., Ltd.) | ||
Due from related parties non current | 5,288 | 5,331 |
Heyang County Huanghe Bay Resort Hotel Co., Ltd.[Member] | ||
Due from related parties non current | $26,906 |
DUE_FROM_RELATED_PARTIES_NON_C3
DUE FROM RELATED PARTIES - NON CURRENT (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due From Related Parties - Non Current Details Narrative | ||
Due from related parties non current | $6,609,329 | $5,486,628 |
OTHER_PAYABLES_AND_ACCRUED_EXP2
OTHER PAYABLES AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Payables And Accrued Expenses Details | ||
Tax payable | $273,358 | $206,681 |
Salary and welfare payable | 318 | 321 |
Other payable | 145,559 | 146,492 |
Total | $419,235 | $353,494 |
DUE_TO_RELATED_PARTIES_Details
DUE TO RELATED PARTIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due to related parties | $3,275,191 | $3,473,437 |
Due to Huiton World Property Superintendent Company [Member] | ||
Due to related parties | 406,769 | 410,044 |
Due to Zhongke Lvxiang Development Stock Co Ltd [Member] | ||
Due to related parties | 1,138,952 | 1,148,124 |
Due to Shaanxi Changjiang Electricity And New Energy Co Ltd [Member] | ||
Due to related parties | 203,525 | |
Shaanxi East Mining Co Ltd [Member] | ||
Due to related parties | 1,701,956 | 1,700,901 |
Due to Baishui Du Kang Brand Management Co Ltd [Member] | ||
Due to related parties | 9,762 | 9,841 |
Due to Shaanxi Xidenghui Technology Co Ltd [Member] | ||
Due to related parties | 993 | 1,002 |
Due to Shaanxi Dukang Liquor Group Co Ltd [Member] | ||
Due to related parties | $16,759 |
DUE_TO_RELATED_PARTIES_Details1
DUE TO RELATED PARTIES (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due To Related Parties Details Narrative | ||
Due to related parties | $3,275,191 | $3,473,437 |
DUE_TO_SHAREHOLDERS_Details
DUE TO SHAREHOLDERS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due to shareholders | $3,391,992 | $3,418,321 |
Due to Wang Shengli [Member] | ||
Due to shareholders | 1,795,296 | 1,809,755 |
Due to Zhang Hongjun [Member] | ||
Due to shareholders | 987,147 | 995,096 |
Due to Chen Min [Member] | ||
Due to shareholders | $609,549 | $613,470 |
DUE_TO_SHAREHOLDERS_Details_Na
DUE TO SHAREHOLDERS (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due to shareholders | $3,391,992 | $3,418,321 |
Mr. Zhang Hong Jun [Member] | ||
Due to shareholders | 442,848 | |
Mr. Wang Sheng Li [Member] | ||
Due to shareholders | $442,848 |
PAYABLE_ON_ACQUISITION_OF_A_SU1
PAYABLE ON ACQUISITION OF A SUBSIDIARY (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Payable On Acquisition Of Subsidiary Details Narrative | ||
Payable on acquisition of a subsidiary | $2,049,066 |
RELATED_PARTY_SALES_REVENUE_De
RELATED PARTY SALES REVENUE (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Sales Revenue Details Narrative | |
Rent revenue | $1,220,365 |
Generate electricity revenue | $26,908 |
INCOME_TAX_Details
INCOME TAX (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax expense (benefit), net | ||
Continuing Operations [Member] | ||
PRC Enterprise Income Tax | ||
United States Federal Income Tax | ||
Income tax expense (benefit), net | ||
Discontinued Operation [Member] | ||
PRC Enterprise Income Tax | 564,608 | |
United States Federal Income Tax | ||
Income tax expense (benefit), net | $564,608 |
INCOME_TAX_Details_1
INCOME TAX (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Continuing Operations [Member] | ||
Current income tax expense | ||
Deferred income tax benefit | ||
Income tax expense (benefit),net | ||
Discontinued Operation [Member] | ||
Current income tax expense | 564,608 | |
Deferred income tax benefit | ||
Income tax expense (benefit),net | $564,608 |
INCOME_TAX_Details_2
INCOME TAX (Details 2) (Continuing Operations [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Continuing Operations [Member] | ||
U.S. Federal statutory rate | 35.00% | 35.00% |
PRC Statutory rate (25%) difference | -10.00% | -10.00% |
Changes in valuation allowance for DTA | -25.00% | -25.00% |
Effective income tax rate | 0.00% | 0.00% |
INCOME_TAX_Details_3
INCOME TAX (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred tax assets | ||
Net operating loss carry-forward | $185,148 | $5,604,537 |
Total of Deferred tax assets | 185,148 | 5,604,537 |
Less: valuation allowance | -185,148 | -5,604,537 |
Net deferred assets |
INCOME_TAX_Details_Narrative
INCOME TAX (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effective income tax rate | 25.00% | 25.00% |
Net taxable operating losses | $528,840 | |
Valuation allowance | $132,210 | |
Shaanxi Pacific [Member] | ||
Effective income tax rate | 0.00% | 0.00% |
Shaanxi Changjiang [Member] | ||
Effective income tax rate | 0.00% | 0.00% |
Changjiang PV [Member] | ||
Effective income tax rate | 0.00% | 0.00% |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total Assets | $23,400,225 | $23,187,957 |
Retained earnings | -2,902,291 | -3,325,983 |
Total Liabilities & Shareholders' Equity | 23,400,225 | 23,187,957 |
Discontinued Operation [Member] | ||
Cash on hand | 271 | |
Cash in bank | 24,274 | |
Other receivable | 1,636,503 | |
Due From Related Party | 1,881,186 | |
Due from shareholders | 49,205 | |
Inventories, Net | 213 | |
Fixed Asset, Net | 3,124 | |
Total Assets | 3,594,776 | |
Due to shareholders | 8,201 | |
Wages Payable | 25,178 | |
Tax Payable | 953,965 | |
Other payable | 9,629 | |
Due To Related Party | 121,373 | |
Invested capital | 1,476,160 | |
Retained earnings | 1,000,270 | |
Total Liabilities & Shareholders' Equity | $3,594,776 |
DISCONTINUED_OPERATIONS_Detail1
DISCONTINUED OPERATIONS (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income from operations | $429,045 | $625,042 |
Other Income (Expenses) | 4,330 | 9,608 |
Allowance for long term investment | 190,536 | |
Income before tax | 429,045 | 625,042 |
Income tax expense | ||
Net Income | 429,045 | 2,318,261 |
Discontinued Operation [Member] | ||
Sales revenue | ||
Cost of revenue | ||
Gross Profit | ||
Operating expenses (income) | ||
Administrative expenses | 74,407 | |
Gain on disposal of asset | -2,294,386 | |
Depreciation | 1,427 | |
Total operating income | -2,218,552 | |
Income from operations | 2,218,552 | |
Other Income (Expenses) | ||
Interest income | 41,027 | |
Interest expenses | -1,752 | |
Allowance for long term investment | ||
Total Other Income | 39,275 | |
Income before tax | 2,257,827 | |
Income tax expense | 564,608 | |
Net Income | $1,693,219 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cost of revenue | $68,340 | $67,838 |
Gross profit | 1,178,933 | 1,143,559 |
Land use right leasing [Member] | ||
Revenue | 1,220,365 | 1,211,397 |
Cost of revenue | 68,340 | 67,838 |
Gross profit | 1,152,025 | 1,143,559 |
Solar PV energy [Member] | ||
Revenue | 26,908 | |
Cost of revenue | ||
Gross profit | $26,908 |