Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 30, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | CHINA CHANGJIANG MINING & NEW ENERGY COMPANY, LTD. | ||
Entity Central Index Key | 29,952 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
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 | $ 436,216 | ||
Entity Common Stock, Shares Outstanding | 64,629,559 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 13,550 | $ 72,156 |
Other current assets and prepayments | 1,875 | 80,535 |
Total Current Assets | 15,425 | 152,691 |
Property, plant and equipment, net | 246,480 | 314,480 |
Land use rights, net | 15,062,438 | 16,323,725 |
Due from related parties | 1,176,265 | 6,609,329 |
TOTAL ASSETS | 16,500,608 | 23,400,225 |
Current Liabilities | ||
Other payables and accrued liabilities | 1,283,682 | 1,558,187 |
Total Current Liabilities | 1,283,682 | 1,558,187 |
Non-current liabilities | ||
Due to related parties | 510,356 | 2,136,239 |
Due to shareholders | 3,219,177 | 3,391,992 |
Total Liabilities | 5,013,215 | 7,086,418 |
EQUITY | ||
Common stock ($0.01 par value, 250,000,000 shares authorized, 64,629,559 shares issued and outstanding as of December 31, 2015 and 2014) | 646,295 | 646,295 |
Treasury stock | (489,258) | (489,258) |
Additional paid-in capital | 15,906,150 | 15,410,640 |
Accumulated deficit | (7,403,166) | (2,902,291) |
Accumulated other comprehensive income | 1,880,097 | 2,546,299 |
TOTAL SHAREHOLDERS' EQUITY | 10,540,118 | 15,211,685 |
Non-controlling interests | 947,275 | 1,102,122 |
TOTAL EQUITY | 11,487,393 | 16,313,807 |
TOTAL LIABILITIES AND EQUITY | $ 16,500,608 | $ 23,400,225 |
Series C Preferred Stock [Member] | ||
EQUITY | ||
Series C convertible preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares outstanding as of December 31, 2015 and 2014) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
EQUITY | ||
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 |
Series C Preferred Stock [Member] | ||
EQUITY | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Authorized | 10,000,000 | 10,000,000 |
Preferred stock, outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Income And Comprehensive Income Loss | ||
Sales revenue - related party | $ 16,718 | $ 1,247,273 |
Cost of revenue | 9,253 | 68,340 |
Gross Profit | 7,465 | 1,178,933 |
Operating expenses | ||
General and administrative expenses | 4,209,654 | 277,083 |
Depreciation | 53,174 | 55,324 |
Amortization | 411,717 | 416,527 |
Total operating expenses | 4,674,545 | 748,934 |
Income (loss) from operations | (4,667,080) | 429,999 |
Other Income (Expenses) | ||
Interest income | 139 | $ 3,376 |
Interest expenses | (679) | |
Other income (expense) | 11,898 | $ (4,330) |
Total Other Income (Expense) | 11,358 | (954) |
Income (loss) before tax | $ (4,655,722) | $ 429,045 |
Income tax expense (benefit) | ||
Net income (loss) | $ (4,655,722) | $ 429,045 |
Net income (loss) attributable to: | ||
Non-controlling interests | (154,847) | 5,353 |
Common Stockholders | (4,500,875) | 423,692 |
Other comprehensive income/(loss) | ||
Foreign currency translation adjustments | (666,202) | (102,835) |
Total Comprehensive Income (Loss) | $ (5,321,924) | $ 326,210 |
Weighted average shares-Basic | 64,629,559 | 64,629,559 |
Weighted average shares-Diluted | 64,629,559 | 64,629,559 |
Earnings per share, | ||
Basic | $ (0.07) | $ 0.01 |
Diluted | $ (0.07) | $ 0.01 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated other comprehensive income (Loss) | Accumulated Deficit | Total Shareholder's Equity | Noncontrolling Interest | Total |
Beginning Balance, Shares at Dec. 31, 2013 | 64,629,559 | 17,572,494 | ||||||
Beginning Balance, Amount at Dec. 31, 2013 | $ 646,295 | $ (489,258) | $ 13,316,682 | $ 2,649,134 | $ (3,325,983) | $ 12,796,870 | $ 1,096,769 | $ 13,893,639 |
Extinguishment of related party loan | $ 2,093,958 | 2,093,958 | 2,093,958 | |||||
Foreign currency translation adjustments | $ (102,835) | (102,835) | $ (102,835) | |||||
Imputed expenses | ||||||||
Forgiveness of receivables from entity under common control | ||||||||
Net income (loss) | $ 423,692 | 423,692 | $ 5,353 | $ 429,045 | ||||
Ending Balance, Shares at Dec. 31, 2014 | 64,629,559 | 17,572,494 | ||||||
Ending Balance, Amount at Dec. 31, 2014 | $ 646,295 | $ (489,258) | $ 15,410,640 | $ 2,546,299 | $ (2,902,291) | 15,211,685 | $ 1,102,122 | 16,313,807 |
Extinguishment of related party loan | $ 1,572,451 | 1,572,451 | 1,572,451 | |||||
Foreign currency translation adjustments | $ (666,202) | (666,202) | (666,202) | |||||
Imputed expenses | $ 97,164 | 97,164 | 97,164 | |||||
Forgiveness of receivables from entity under common control | $ (1,174,105) | (1,174,105) | (1,174,105) | |||||
Net income (loss) | $ (4,500,875) | (4,500,875) | $ (154,847) | (4,655,722) | ||||
Ending Balance, Shares at Dec. 31, 2015 | 64,629,559 | 17,572,494 | ||||||
Ending Balance, Amount at Dec. 31, 2015 | $ 646,295 | $ (489,258) | $ 15,906,150 | $ 1,880,097 | $ (7,403,166) | $ 10,540,118 | $ 947,275 | $ 11,487,393 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (4,655,722) | $ 429,045 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 464,891 | $ 471,851 |
Imputed expenses | 97,164 | |
Allowance for doubtful accounts | 4,171,598 | $ 46,374 |
Changes in operating assets and liabilities: | ||
Due from related party | (16,718) | (1,247,273) |
Other current assets and prepayments | 5,829 | 27,416 |
Other payables and accrued liabilities | (200,180) | 68,568 |
NET CASH USED IN OPERATING ACTIVITIES | $ (133,138) | (204,019) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Due from related parties | 80,683 | |
CASH PROVIDED BY INVESTING ACTIVITIES | 80,683 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from related parties | $ 68,426 | 31,404 |
CASH PROVIDED BY FINANCING ACTIVITIES | 68,426 | 31,404 |
Effect of exchange rate changes on cash and cash equivalents | 6,106 | 4,222 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (58,606) | (87,710) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 72,156 | 159,866 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 13,550 | $ 72,156 |
Supplementary Disclosures for Cash Flow Information: | ||
Income taxes paid | ||
Interest expense | ||
Non-Cash Transactions | ||
Forgiveness of receivables from entity under common control | $ 1,174,105 | |
Netting off LT investment with due to related party | $ 140,637 | |
Extinguishment of related party loan | $ 1,572,451 | $ 2,093,958 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES | China Changjiang Mining & New Energy Company, Ltd. ("China Changjiang", "we", 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 Company, 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 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. 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 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, 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 director and principal shareholder of the Company, accounted for the other 49% shares. On December 30, 2013, the Company transferred all of its 60% equity of East Mining to its director and principal shareholder, Mr. Zhang Hong Jun and one of its 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 ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 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. All intercompany accounts and transactions have been eliminated. (c) 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. (d) Going Concern The Company had a working capital deficit of $1,268,257 as of December 31, 2015 and had a negative cash flow from operating activities amounted to $133,138 for the year ended December 31, 2015. If the Company cannot generate enough cash flow from its operating activities, it will need to consider other financing methods such as borrowing from banking institutions or raising additional capital through new equity issuance. There are no assurances that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. The Company plans to continue to control its administrative expenses in the coming periods as well as further developing its sales from its main business. (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, deferred income taxes and the estimation on useful lives of property, plant and equipment. 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. (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. (l) Fair value of financial instruments 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 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 the estimated fair values of the financial instruments including other current assets and prepayments and other payables and accrued liabilities are 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. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. (m) Foreign Currency Translation The Company maintains its consolidated financial statements in the functional currency. The functional currency of China Changjiang 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 December 31, 2015 December 31, 2014 Period end US$ : RMB exchange rate 6.4907 6.1460 Average periodic US$ : RMB exchange rate 6.2175 6.1457 USD to HKD December 31, 2015 December 31, 2014 Period end US$ : UHK exchange rate 7.7504 7.7580 Average periodic US$ : UHK exchange rate 7.7521 7.7519 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. (n) 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. (o) 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 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. (p) Income Taxes ASC 740 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. (q) 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. (r) Earnings/Loss per share Basic earnings/loss per share is computed by dividing earnings/loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings/loss per share is computed in a manner similar to basic earnings/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. (s) Recent Accounting Pronouncements In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments". The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The adoption of this standard is not expected to have a material impact on the Company's financial position and results of operations. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company's financial position and results of operations. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". The amendments in ASU 2016-01, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. . The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. In addition, the new guidance permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". 'The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. (t) Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassification had no impact on net earnings and financial position. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 3 - PROPERTY, PLANT AND EQUIPMENT | The following is a summary of property, plant and equipment: December 31, 2015 December 31, 2014 Cost Motor vehicles $ 224,859 $ 237,471 EPC equipment 301,583 318,498 Office equipment 12,475 21,783 Total 538,917 577,752 Accumulated depreciation (292,437 ) (263,272 ) Property, plant and equipment, net $ 246,480 $ 314,480 Depreciation expenses for the years ended December 31, 2015 and 2014 were $53,174 and $55,324 respectively. |
INTANGIBLE ASSET
INTANGIBLE ASSET | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 4 - INTANGIBLE ASSET | The following is a summary of intangible asset: December 31, 2015 December 31, 2014 Cost of Land use right $ 19,719,353 $ 20,825,318 Accumulated Amortization of Land use right (4,656,915 ) (4,501,593 ) Intangible Asset, net $ 15,062,438 $ 16,323,725 Amortization expenses were approximately $411,717 and $416,527 for the years ended December 31, 2015, and 2014, respectively. |
DUE FROM RELATED PARTIES
DUE FROM RELATED PARTIES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 5 - DUE FROM RELATED PARTIES | The balance of $1,176,265 due from related parties included loans receivable of $1,169,114 from related parties and accounts receivable of $7,151 generated from related party revenue. (a) Loans from related parties The loans owed by related parties are unsecured, interest free and not expected to be paid within twelve months from December 31, 2015. Loans receivable from related parties consists of the following: December 31, 2015 December 31, 2014 Shaanxi Jiuzu Shaokang Liquor Co., Ltd. (Previously Shaanxi Baishui Dukang Liquor Development Co., Ltd.), controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ - $ 813,537 interest free Shaanxi Du Kang Liquor Group Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 1,164,107 1,246,025 interest free Zhongke Aerospace & Agriculture Development Stock Co., Ltd., manager of which is Zhang Hongjun, the Director and principal shareholder of the Company - 459,649 interest free Shaanxi Tangrenjie Advertising Media Co., Ltd. (Previously Shaanxi Changjiang Zhongxiayou Investment Co., Ltd.), manager of which is Zhang Hongjun, the Director and principal shareholder of the Company 5,007 5,288 interest free Shaanxi Changfa Industrial Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company - 374,227 interest free Shaanxi East Mining Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company - 22,779 interest free $ 1,169,114 $ 2,921,505 In April 2015, Shaanxi Changjiang moved to a new office that is owned by Shaanxi Baishui Dukang Liquor Co., Ltd., a related company. Shaanxi Changjiang is allowed to occupy the space for free. At the year end of 2015, the Company decided to write off total balances of $1,628,468 (equivalent to RMB 10,125,000) due from related parties due to the uncertain collectability. Those receivable balances consist of $454,363 receivable from Zhongke Aerospace & Agriculture Development Stock Co., Ltd., $804,181 receivable from Shaanxi Jiuzu Shaokang Liquor Co., Ltd. and $369,924 receivable from Shaanxi Changfa Industrial Co., Ltd. As Shaanxi Jiuzu Shaokang Liquor Co., Ltd. is owned by Zhang Hongjun (95% ownership), Shaanxi Changfa Industrial Co., Ltd. is owned by Zhang Hongjun (39% ownership) and Shaanxi Changjiang (13% ownership), the write-offs of $1,174,105 related to those companies are accounted for as a transaction between entities under common control and recorded as an adjustment to stockholder's equity (additional paid-in capital). (b) Sales revenue from related parties The Company entered into a lease and a complementary agreement with Shaanxi Huanghe Bay Ecological Agriculture Co., Ltd, a company owed by Zhang Hongjun (82% ownership), dated July 26, 2010 and March 25, 2011, respectively. According to the agreements, the use right of a piece of land with the area of 5,706,666.67 square meters was leased to Shaanxi Huanghe Bay Ecological Agriculture Co., Ltd. for traveling and amusement from January 1, 2011 to December 31, 2029. The annual rent in US dollars is approximately $1.2 million (equivalent to RMB 7,500,000). As of December 31, 2015, the Company only received rent payment for year 2011 and no any collection afterward. Due to the uncertain collectability, the Company decided to write off all the uncollected receivables related to land lease in the amount of $3,618,818 (equivalent to RMB 22,500,000) and decided not to recognize any revenue for the year ended December 31, 2015. The Company provided solar power to one of its related parties, Heyang County Huanghe Bay Resort Hotel Co., Ltd. since 2014. As of December 31, 2015, no collection has been received. The Company wrote off the receivable balance of $26,597 (equivalent to RMB 165,366) for 2014 and the remaining receivable balance was $7,151 at December 31, 2015. Accounts receivable from related parties consists of the following: December 31, 2015 December 31, 2014 Shaanxi Huanghe Bay Ecological Agriculture Co.,Ltd. (Previously Shaanxi Huanghe Bay Spring Lake Park Co., Ltd.), controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ - $ 3,660,918 interest free Heyang County Huanghe Bay Resort Hotel Co.,Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 7,151 $ 26,906 interest free 7,151 3,687,824 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 6 - OTHER PAYABLES AND ACCRUED EXPENSES | The following is a summary of other payables and accrued liabilities: December 31, 2015 December 31, 2014 Tax payable $ 64,696 $ 273,358 Salary and welfare payable 302 318 Other payable 1,218,684 1,284,511 $ 1,283,682 $ 1,558,187 |
DUE TO RELATED PARTIES
DUE TO RELATED PARTIES | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 7 - DUE TO RELATED PARTIES | The balance of $510,356 due to related parties represents the loans owed to related parties, which are interest free, unsecured and the Company does not intend to be repay within twelve months from December 31, 2015. December 31, 2015 December 31, 2014 Baishui Dukang Marketing Management Co., Ltd. (Previously Huitong World Property Superintendent Co.,Ltd.), controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 385,166 $ 406,769 Shaanxi Dukang Liquor Trading Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 58,391 16,759 Shaanxi East Mining Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 56,614 1,701,956 Baishui Du Kang Brand Management Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 9,244 9,762 Shaanxi Xi Deng Hui Development Stock Co., Ltd., 29.74% equity interest of which is owned by Zhang Hong Jun, the Director and principal shareholder of the Company, and senior executives of which are Wang Sheng Li, Li Ping and Tian Hailong, the directors and shareholders of the Company 941 993 $ 510,356 $ 2,136,239 The office space occupied by Shaanxi Pacific is a property owned by Zhang Hongjun, the Company is allowed to use it for free. The office space occupied by Changjiang PV is a property owned by Shaanxi Xi Deng Hui Development Stock Co., Ltd., a related party. The Company is allowed to use it for free. In April 2015, Shaanxi Jiuzu Shaokang Liquor Co., Ltd. made rent payment of RMB 12,000 (approximately $1,930) on behalf of Shaanxi Changjiang and agreed to waive the repayment. Since Shaanxi Jiuzu Shaokang Liquor Co., Ltd. is owed by Zhang Hongjun (95% ownership), the exemption of $1,930 is accounted for as a transaction between entities under common control and recorded as an adjustment to stockholder's equity (additional paid - in capital). During the year ended December 31, 2015, Shaanxi Dukang Liquor Trading Co., Ltd. and Shaanxi Dukang Liquor Group Co., Ltd. made salary payment of RMB 592,119 (approximately $95,234) on behalf of Shaanxi Changjiang and agreed to waive the repayment. Since Shannxi Dukang Liquor Trading Co., Ltd. is owned by Zhang Hongjun (40% ownership) and Shaanxi Dukang Liquor Group Co., Ltd. (40% ownership) and Zhang Hongjun is the principal owner of Shaanxi Dukang Liquor Group Co., Ltd., the exemption of $95,234 is accounted for as a transaction between entities under common control and recorded as an adjustment to stockholder's equity (additional paid - in capital). Additionally, Shaanxi Xi Deng Hui Development Stock Co., Ltd. made salary payment of RMB 73,980 (approximately $11,898) on behalf of the Company and later agreed to waive the repayment. The exemption of $11,898 is recorded as other income for the year ended December 31, 2015. On September 15, 2015, the Company was exempt from the loan of RMB 10,000,000 (approximately $1,572,451) owed to Shaanxi East Mining Co., Ltd, a company owned by Zhang Hongjun (70% ownership) and Wang Shengli (30% ownership). As both Shaanxi East Mining Co., Ltd and the Company are under common control of Zhang Hongjun and Wang Shengli, the extinguishment of related party loan is accounted for as a transaction between entities under common control with $1,572,451 recorded as an adjustment to stockholders' equity (additional paid-in capital). |
DUE TO SHAREHOLDERS
DUE TO SHAREHOLDERS | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 8 - DUE TO SHAREHOLDERS | The balance of $3,219,177 due to shareholders represents the loans owed to the shareholders, which are interest free and unsecured. The management does not intend to repay the loans within twelve months from December 31, 2015. Due to shareholders consist of the following: December 31, 2015 December 31, 2014 Due to Wang Shengli $ 1,699,954 $ 1,795,296 Due to Zhang Hongjun 934,722 987,147 Due to Chen Min 584,501 609,549 $ 3,219,177 $ 3,391,992 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 9 - 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, 2015 and 2014. The Company's other subsidiaries 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 years ended December 31, 2015 and 2014. 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. Shaanxi Pacific did not incur any operating income for the years ended December 31, 2015 and 2014. Shaanxi Changjiang incurred net loss, for income tax purpose, for the year ended December 31, 2015, and had net income for the year ended December 31, 2014. Changjiang PV had net losses for the year ended December 31, 2015 and 2014. 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. As no entities had any net income, the Company did not provide any income tax expense for the year ended December 31, 2015. And the Company also did not provide income tax expense for the year ended December 31, 2014 due to the use of net loss carry-forwards from prior years. 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, 2015 For the year ended December 31, 2014 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, 2015, the Company's PRC subsidiaries had net taxable operating loss carry-forwards of approximately $1,505,660. 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 $376,415 was recorded. Components of the Company's net deferred tax assets are set forth below: December 31, 2015 December 31, 2014 Deferred tax assets Net operating loss carry-forwards $ 376,415 $ 185,148 Total of deferred tax assets $ 376,415 $ 185,148 Less: valuation allowance $ (376,415 ) $ (185,148 ) 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 10 - SEGMENT INFORMATION | The Company operated in two reportable segments, Land use right leasing, and solar PV energy for the year ended December 31, 2014. The Company did not recognize Land use right leasing revenue for the year ended December 31, 2015 because of the uncertain collectability of this revenue. See Note 5. Summarized information by business segment for the years ended December 31, 2015 and 2014 is as follows. For the year ended December 31, 2015 For the year ended December 31, 2014 Revenue Land use right leasing $ - $ 1,220,365 Solar PV energy 16,718 26,908 Cost of revenue Land use right leasing - 68,340 Solar PV energy 9,253 - Gross Profits Land use right leasing - 1,152,025 Solar PV energy 7,465 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. |
OPERATING LEASE
OPERATING LEASE | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 11 - OPERATING LEASE | Shaanxi Changjiang entered into a lease agreement for the lease of its office space in February 2011 for two years expired on March 1, 2013. The agreement was renewed in February 2013 for an additional year with the annual lease payment increased to RMB100,000 (approximately $16,084). The agreement was further renewed in 2014 to extend the expiration date to April 30, 2015 with annual lease payment remained unchanged. Rental expense for the years ended December 31, 2015 and 2014 was $8,256 and $19,200, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Note 12 - SUBSEQUENT EVENTS | In January 2016, the Company borrowed two one-year loans in the total amount of $29,273 (equivalent to RMB 190,000) from Shaanxi Dukang Liquor Trading Co., Ltd., a related party of the Company. The loans are unsecured, bearing no interest and were borrowed to maintain cash flow for the Company's operations. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 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. All intercompany accounts and transactions have been eliminated. |
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. |
Going Concern | The Company had a working capital deficit of $1,268,257 as of December 31, 2015 and had a negative cash flow from operating activities amounted to $133,138 for the year ended December 31, 2015. If the Company cannot generate enough cash flow from its operating activities, it will need to consider other financing methods such as borrowing from banking institutions or raising additional capital through new equity issuance. There are no assurances that additional funds will be available when needed from any source or, if available, will be available on terms that are acceptable to us. The Company plans to continue to control its administrative expenses in the coming periods as well as further developing its sales from its main business. |
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, deferred income taxes and the estimation on useful lives of property, plant and equipment. 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. |
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. |
Fair value of financial instruments | 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 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 the estimated fair values of the financial instruments including other current assets and prepayments and other payables and accrued liabilities are 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. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Foreign Currency Translation | The Company maintains its consolidated financial statements in the functional currency. The functional currency of China Changjiang 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 December 31, 2015 December 31, 2014 Period end US$ : RMB exchange rate 6.4907 6.1460 Average periodic US$ : RMB exchange rate 6.2175 6.1457 USD to HKD December 31, 2015 December 31, 2014 Period end US$ : UHK exchange rate 7.7504 7.7580 Average periodic US$ : UHK exchange rate 7.7521 7.7519 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. |
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 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. |
Income Taxes | ASC 740 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 earnings/loss per share is computed by dividing earnings/loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings/loss per share is computed in a manner similar to basic earnings/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 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments". The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The adoption of this standard is not expected to have a material impact on the Company's financial position and results of operations. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company's financial position and results of operations. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". The amendments in ASU 2016-01, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. . The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. In addition, the new guidance permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". 'The amendments in this ASU are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. |
Reclassification | Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassification had no impact on net earnings and financial position. |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies Tables | |
Estimated useful lives | 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 |
Exchange rates applied for foreign currency translation | Exchange rates applied for the foreign currency translation during the period are as follows: USD to RMB December 31, 2015 December 31, 2014 Period end US$ : RMB exchange rate 6.4907 6.1460 Average periodic US$ : RMB exchange rate 6.2175 6.1457 USD to HKD December 31, 2015 December 31, 2014 Period end US$ : UHK exchange rate 7.7504 7.7580 Average periodic US$ : UHK exchange rate 7.7521 7.7519 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment Tables | |
Property plant and equipment | The following is a summary of property, plant and equipment: December 31, 2015 December 31, 2014 Cost Motor vehicles $ 224,859 $ 237,471 EPC equipment 301,583 318,498 Office equipment 12,475 21,783 Total 538,917 577,752 Accumulated depreciation (292,437 ) (263,272 ) Property, plant and equipment, net $ 246,480 $ 314,480 |
INTANGIBLE ASSET (Tables)
INTANGIBLE ASSET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Asset Tables | |
Summary of intangible asset | The following is a summary of intangible asset: December 31, 2015 December 31, 2014 Cost of Land use right $ 19,719,353 $ 20,825,318 Accumulated Amortization of Land use right (4,656,915 ) (4,501,593 ) Intangible Asset, net $ 15,062,438 $ 16,323,725 |
DUE FROM RELATED PARTIES (Table
DUE FROM RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Due From Related Parties Tables | |
Loans receivable related parties | Loans receivable from related parties consists of the following: December 31, 2015 December 31, 2014 Shaanxi Jiuzu Shaokang Liquor Co., Ltd. (Previously Shaanxi Baishui Dukang Liquor Development Co., Ltd.), controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ - $ 813,537 interest free Shaanxi Du Kang Liquor Group Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 1,164,107 1,246,025 interest free Zhongke Aerospace & Agriculture Development Stock Co., Ltd., manager of which is Zhang Hongjun, the Director and principal shareholder of the Company - 459,649 interest free Shaanxi Tangrenjie Advertising Media Co., Ltd. (Previously Shaanxi Changjiang Zhongxiayou Investment Co., Ltd.), manager of which is Zhang Hongjun, the Director and principal shareholder of the Company 5,007 5,288 interest free Shaanxi Changfa Industrial Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company - 374,227 interest free Shaanxi East Mining Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company - 22,779 interest free $ 1,169,114 $ 2,921,505 |
Accounts receivable related parties | Accounts receivable from related parties consists of the following: December 31, 2015 December 31, 2014 Shaanxi Huanghe Bay Ecological Agriculture Co.,Ltd. (Previously Shaanxi Huanghe Bay Spring Lake Park Co., Ltd.), controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ - $ 3,660,918 interest free Heyang County Huanghe Bay Resort Hotel Co.,Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 7,151 $ 26,906 interest free 7,151 3,687,824 |
OTHER PAYABLES AND ACCRUED EX24
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Payables And Accrued Expenses Tables | |
Summary of other payables and accrued liabilities | The following is a summary of other payables and accrued liabilities: December 31, 2015 December 31, 2014 Tax payable $ 64,696 $ 273,358 Salary and welfare payable 302 318 Other payable 1,218,684 1,284,511 $ 1,283,682 $ 1,558,187 |
DUE TO RELATED PARTIES (Tables)
DUE TO RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Due To Related Parties Tables | |
Due to related parties | The balance of $510,356 due to related parties represents the loans owed to related parties, which are interest free, unsecured and the Company does not intend to be repay within twelve months from December 31, 2015. December 31, 2015 December 31, 2014 Baishui Dukang Marketing Management Co., Ltd. (Previously Huitong World Property Superintendent Co.,Ltd.), controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 385,166 $ 406,769 Shaanxi Dukang Liquor Trading Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 58,391 16,759 Shaanxi East Mining Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 56,614 1,701,956 Baishui Du Kang Brand Management Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company 9,244 9,762 Shaanxi Xi Deng Hui Development Stock Co., Ltd., 29.74% equity interest of which is owned by Zhang Hong Jun, the Director and principal shareholder of the Company, and senior executives of which are Wang Sheng Li, Li Ping and Tian Hailong, the directors and shareholders of the Company 941 993 $ 510,356 $ 2,136,239 |
DUE TO SHAREHOLDERS (Tables)
DUE TO SHAREHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Due To Shareholders Tables | |
Due to shareholders | Due to shareholders consist of the following: December 31, 2015 December 31, 2014 Due to Wang Shengli $ 1,699,954 $ 1,795,296 Due to Zhang Hongjun 934,722 987,147 Due to Chen Min 584,501 609,549 $ 3,219,177 $ 3,391,992 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Tables | |
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, 2015 For the year ended December 31, 2014 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 are set forth below: December 31, 2015 December 31, 2014 Deferred tax assets Net operating loss carry-forwards $ 376,415 $ 185,148 Total of deferred tax assets $ 376,415 $ 185,148 Less: valuation allowance $ (376,415 ) $ (185,148 ) Net deferred assets $ - $ - |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information Tables | |
Summarized information by business segment | Summarized information by business segment for the years ended December 31, 2015 and 2014 is as follows. For the year ended December 31, 2015 For the year ended December 31, 2014 Revenue Land use right leasing $ - $ 1,220,365 Solar PV energy 16,718 26,908 Cost of revenue Land use right leasing - 68,340 Solar PV energy 9,253 - Gross Profits Land use right leasing - 1,152,025 Solar PV energy 7,465 26,908 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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 ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details1) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
USD to RMB [Member] | ||
Period end exchange rate | 6.4907 | 6.1460 |
Average periodic exchange rate | 6.2175 | 6.1457 |
USD to HKD [Member] | ||
Period end exchange rate | 7.7504 | 7.7580 |
Average periodic exchange rate | 7.7521 | 7.7519 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Working capital deficit | $ 1,268,257 | |
Cash flow from operating activities | $ (133,138) | $ (204,019) |
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% |
Changjiang PV [Member] | ||
Ownership interest in subsidiary | 51.00% | 51.00% |
Minority interest | 49.00% | 49.00% |
PROPERTY, PLANT AND EQUIPMENT32
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total | $ 538,917 | $ 577,752 |
Accumulated depreciation | (292,437) | (263,272) |
Property, plant & equipment, net | 246,480 | 314,480 |
Motor vehicles [Member] | ||
Total | 224,859 | 237,471 |
EPC Equipments [Member] | ||
Total | 301,583 | 318,498 |
Office Equipment [Member] | ||
Total | $ 12,475 | $ 21,783 |
PROPERTY, PLANT AND EQUIPMENT33
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment Details Narrative | ||
Depreciation expenses | $ 53,174 | $ 55,324 |
INTANGIBLE ASSET (Details)
INTANGIBLE ASSET (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Asset Tables | ||
Cost of Land use right | $ 19,719,353 | $ 20,825,318 |
Accumulated Amortization of Land use right | (4,656,915) | (4,501,593) |
Intangible Asset, net | $ 15,062,438 | $ 16,323,725 |
INTANGIBLE ASSET (Details Narra
INTANGIBLE ASSET (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Asset Details Narrative | ||
Amortization expenses | $ 411,717 | $ 416,527 |
DUE FROM RELATED PARTIES (Detai
DUE FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Due from related parties non current | $ 1,169,114 | $ 2,921,505 |
Shaanxi Jiuzu Shaokang Liquor Co [Member] | ||
Due from related parties non current | $ 813,537 | |
Interest | interest free | interest free |
Shaanxi Du Kang Liquor Group Co., Ltd. [Member] | ||
Due from related parties non current | $ 1,164,107 | $ 1,246,025 |
Interest | interest free | interest free |
Zhongke Aerospace & Agriculture Development Stock Co., Ltd. [Member] | ||
Due from related parties non current | $ 459,649 | |
Interest | interest free | interest free |
Shaanxi Tangrenjie Advertising Media Co., Ltd. [Member] | ||
Due from related parties non current | $ 5,007 | $ 5,288 |
Interest | interest free | interest free |
Shaanxi Changfa Industrial Co., Ltd., [Member] | ||
Due from related parties non current | $ 374,227 | |
Interest | interest free | interest free |
Shaanxi East Mining Co., Ltd., [Member] | ||
Due from related parties non current | $ 22,779 | |
Interest | interest free | interest free |
DUE FROM RELATED PARTIES (Det37
DUE FROM RELATED PARTIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Due from related parties non current | $ 7,151 | $ 3,687,824 |
Shaanxi Huanghe Bay Ecological Agriculture Co.,Ltd [Member] | ||
Due from related parties non current | $ 3,660,918 | |
Interest | Interest free | Interest free |
Heyang County Huanghe Bay Resort Hotel Co.,Ltd.,[Member] | ||
Due from related parties non current | $ 7,151 | $ 26,906 |
Interest | Interest free | Interest free |
DUE FROM RELATED PARTIES (Det38
DUE FROM RELATED PARTIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Due From Related Parties Details Narrative | ||
Write off balance from related party | $ 1,628,468 | |
Write off land lease amount | 3,618,818 | |
Wrote off the receivable balance | $ 7,151 | $ 26,597 |
OTHER PAYABLES AND ACCRUED EX39
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Other Payables And Accrued Expenses Details | ||
Tax payable | $ 64,696 | $ 273,358 |
Salary and welfare payable | 302 | 318 |
Other payable | 1,218,684 | 1,284,511 |
Total | $ 1,283,682 | $ 1,558,187 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Due to related parties | $ 510,356 | $ 2,136,239 |
Baishui Dukang Marketing Management Co., Ltd. [Member] | ||
Due to related parties | 385,166 | 406,769 |
Shaanxi Dukang Liquor Trading Co., Ltd [Member] | ||
Due to related parties | 58,391 | 16,759 |
Shaanxi East Mining Co., Ltd., [Member] | ||
Due to related parties | 56,614 | 1,701,956 |
Baishui Du Kang Brand Management Co., Ltd., [Member] | ||
Due to related parties | 9,244 | 9,762 |
Shaanxi Xi Deng Hui Development Stock Co., Ltd.,[Member] | ||
Due to related parties | $ 941 | $ 993 |
DUE TO RELATED PARTIES (Detai41
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Due To Related Parties Details Narrative | ||
Due to related parties | $ 510,356 | $ 2,136,239 |
Salary payment to related parties | 95,234 | |
Other income (expense) | $ 11,898 | $ (4,330) |
DUE TO SHAREHOLDERS (Details)
DUE TO SHAREHOLDERS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Due to shareholders | $ 3,219,177 | $ 3,391,992 |
Due to Wang Shengli [Member] | ||
Due to shareholders | 1,699,954 | 1,795,296 |
Due to Zhang Hongjun [Member] | ||
Due to shareholders | 934,722 | 987,147 |
Due to Chen Min [Member] | ||
Due to shareholders | $ 584,501 | $ 609,549 |
DUE TO SHAREHOLDERS (Details Na
DUE TO SHAREHOLDERS (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Due To Shareholders Details Narrative | ||
Due to shareholders | $ 3,219,177 | $ 3,391,992 |
INCOME TAX (Details)
INCOME TAX (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Details | ||
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 1)
INCOME TAX (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets | ||
Net operating loss carry-forward | $ 376,415 | $ 185,148 |
Total of Deferred tax assets | 376,415 | 185,148 |
Less: valuation allowance | $ (376,415) | $ (185,148) |
Net deferred assets |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) | Dec. 31, 2015USD ($) |
Income Tax Details Narrative | |
Net taxable operating losses | $ 1,505,660 |
Valuation allowance | $ 376,415 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cost of revenue | $ 9,253 | $ 68,340 |
Gross Profits | $ 7,465 | 1,178,933 |
Land use right leasing [Member] | ||
Revenue | 1,220,365 | |
Cost of revenue | 68,340 | |
Gross Profits | 1,152,025 | |
Solar PV energy [Member] | ||
Revenue | $ 16,718 | $ 26,908 |
Cost of revenue | 9,253 | |
Gross Profits | $ 7,465 | $ 26,908 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Lease Details Narrative | ||
Rental expense | $ 8,256 | $ 19,200 |