Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | CHINA CHANGJIANG MINING & NEW ENERGY COMPANY, LTD. | |
Entity Central Index Key | 29,952 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
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 Common Stock, Shares Outstanding | 64,629,559 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 12,244 | $ 13,550 |
Other current assets and prepayments | 1,686 | 1,875 |
Total Current Assets | 13,930 | 15,425 |
Property, plant and equipment, net | 216,664 | 246,480 |
Land use rights, net | 14,370,990 | 15,062,438 |
Due from related parties | 1,144,133 | 1,176,265 |
TOTAL ASSETS | 15,745,717 | 16,500,608 |
Current Liabilities | ||
Other payables and accrued liabilities | 1,250,476 | 1,283,682 |
Total Current Liabilities | 1,250,476 | 1,283,682 |
Non-current liabilities | ||
Due to related parties | 519,050 | 510,356 |
Due to shareholders | 3,136,566 | 3,219,177 |
Total Long-term Liabilities | 3,655,616 | 3,729,533 |
Total Liabilities | 4,906,092 | 5,013,215 |
SHAREHOLDERS' EQUITY | ||
Common stock ($0.01 par value, 250,000,000 shares authorized, 64,629,559 shares issued and outstanding as of September 30, 2016 and December 31, 2015) | 646,295 | 646,295 |
Treasury stock | (489,258) | (489,258) |
Additional paid-in capital | 15,961,247 | 15,906,150 |
Accumulated deficit | (7,781,403) | (7,403,166) |
Non-controlling interests | 929,748 | 947,275 |
Accumulated other comprehensive income | 1,572,996 | 1,880,097 |
Total Shareholders' Equity | 10,839,625 | 11,487,393 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 15,745,717 | 16,500,608 |
Series C Preferred Stock [Member] | ||
SHAREHOLDERS' EQUITY | ||
Series C convertible preferred stock ($0.01 par value, 10,000,000 shares authorized, no shares outstanding as of September 30, 2016 and December 31, 2015) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements Of Income And Comprehensive Income Loss | ||||
Sales revenue - related party | $ 4,850 | $ 304,983 | $ 12,356 | $ 926,521 |
Cost of revenue | 1,218 | 16,777 | 3,100 | 51,131 |
Gross Profit | 3,632 | 288,206 | 9,256 | 875,390 |
Operating expenses | ||||
Administrative expenses | 19,944 | 30,068 | 89,134 | 105,070 |
Depreciation | 7,422 | 13,207 | 23,530 | 40,249 |
Amortization | 95,966 | 102,255 | 291,811 | 311,639 |
Total operating expenses | 123,332 | 145,530 | 404,475 | 456,958 |
Income (Loss) from operations | (119,700) | 142,676 | (395,219) | 418,432 |
Other Income (Expenses) | ||||
Interest income | 12 | 134 | ||
Interest expenses | (93) | (151) | (545) | (584) |
Other expenses | 4 | (488) | ||
Total Other Expenses | (93) | (135) | (545) | (938) |
Income (Loss) before tax | (119,793) | 142,541 | (395,764) | 417,494 |
Income tax expense (benefit) | ||||
Net income (loss) | (119,793) | 142,541 | (395,764) | 417,494 |
Net income (loss) attributable to: | ||||
Non-controlling interests | (5,628) | 2,877 | (17,527) | 6,594 |
Common Stockholders | (114,165) | 139,664 | (378,237) | 410,900 |
Other comprehensive income loss | ||||
Foreign currency translation adjustments | (43,550) | (706,483) | (307,101) | (552,026) |
Total Comprehensive Income Loss | $ (163,343) | $ (563,942) | $ (702,865) | $ (134,532) |
Weighted average shares-Basic | 64,629,559 | 64,629,559 | 64,629,559 | 64,629,559 |
Weighted average shares-Diluted | 64,629,559 | 64,629,559 | 64,629,559 | 64,629,559 |
Earnings per share, | ||||
Basic | $ 0 | $ 0 | $ (0.01) | $ 0.01 |
Diluted | $ 0 | $ .00 | $ (0.01) | $ 0.01 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (395,764) | $ 417,494 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 315,341 | 351,888 |
Changes in operating assets and liabilities: | ||
Due from related party | (9,256) | (926,521) |
Other current assets and prepayments | 141 | (242) |
Other payables and accrued liabilities | 1,205 | 52,627 |
CASH USED IN OPERARATING ACTIVITIES | (88,333) | (104,754) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from related parties | 88,407 | 50,066 |
CASH PROVIDED BY FINANCING ACTIVITIES | 88,407 | 50,066 |
Effect of exchange rate changes on cash and cash equivalents | (1,380) | (1,566) |
NET DECREASE IN CASH | (1,306) | (56,254) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 13,550 | 72,156 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 12,244 | 15,902 |
Supplementary Disclosures for Cash Flow Information: | ||
Income taxes paid | ||
Interest expense | ||
Non-Cash Transactions | ||
Extinguishment of related party loan | $ 55,097 | $ 1,572,451 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | The accounting policies and methods followed in preparing these unaudited consolidated financial statements are those used by China Changjiang Mining & New Energy Co., Ltd. and its consolidated subsidiaries (the Company) as described in the notes to consolidated financial statements included in Annual Report on Form 10-K for the year ended December 31, 2015. The unaudited consolidated financial statements for the nine-month period ended September 30, 2016 and 2015 have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission and do not conform in all respects to the disclosure and information that is required for annual consolidated financial statements. The year-end consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosure required by accounting principles generally accepted in the United States of America. These interim consolidated financial statements should be read in conjunction with the most recent annual consolidated financial statements of the Company. In the opinion of management, all adjustments, all of which are of a normal recurring nature, considered necessary for fair statement have been included in these interim consolidated financial statements. Operating results for the nine-month period ended September 30, 2016 are not indicative of the results that may be expected for the full year ending December 31, 2016. (a) Going Concern The Company had a working capital deficit of $1,236,546 as of September 30, 2016 and had a negative cash flow from operating activities amounted to $88,333 for the nine months period ended September 30, 2016. 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 develop its sales from its main business. These conditions and uncertainties raise substantial doubt as to the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. (b) Foreign Currency Translation Exchange rates applied for the foreign currency translation during the period are as follows: USD to RMB September 30, 2016 December 31, 2015 Period end USD : RMB exchange rate 6.6694 6.4907 Average periodic USD : RMB exchange rate 6.5792 6.2175 USD to HKD September 30, 2016 December 31, 2015 Period end USD : HKD exchange rate 7.7548 7.7504 Average periodic USD : HKD exchange rate 7.7633 7.7521 HKD is pegged to USD 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 USD at the rates used in translation. (c) 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. (d) Recent Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. These amendments provide cash flow statement classification guidance for: 1. Debt Prepayment or Debt Extinguishment Costs; 2. Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; 3. Contingent Consideration Payments Made after a Business Combination; 4. Proceeds from the Settlement of Insurance Claims; 5. Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; 6. Distributions Received from Equity Method Investees; 7. Beneficial Interests in Securitization Transactions; and 8. Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In September 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. These amendments change the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. If a reporting entity satisfies the first characteristic of a primary beneficiary (such that it is the single decision maker of a variable interest entity), the amendments require that reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a variable interest entity and, on a proportionate basis, its indirect variable interests in a variable interest entity held through related parties, including related parties that are under common control with the reporting entity. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the pending content that links to this paragraph in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 2 - LAND USE RIGHTS, NET | The following is a summary of land use rights, net: September 30, 2016 December 31, 2015 Cost of Land Use Rights $ 19,190,992 $ 19,719,353 Accumulated Amortization of Land Use Rights (4,820,002 ) (4,656,915 ) Land Use Rights, Net $ 14,370,990 $ 15,062,438 The difference for the balance of cost was mainly due to the fluctuation of exchange rate of USD to RMB. Amortization expenses were $291,811 and $311,639 for the nine months ended September 30, 2016 and 2015, respectively. |
DUE FROM RELATED PARTIES
DUE FROM RELATED PARTIES | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 3 - DUE FROM RELATED PARTIES | The balance of $1,144,133 due from related parties included loans of $1,128,043 from related parties and accounts receivable of $16,090 generated from related parties revenues. (1) Loans from related parties The loans owed by related parties are unsecured, interest free and not expected to be paid within twelve months from September 30, 2016. Loan from related parties consists of the following: September 30, December 31, 2016 2015 Interest Shaanxi Du Kang Liquor Group Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 1,123,170 $ 1,164,107 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 $ 4,873 $ 5,007 Interest free Total $ 1,128,043 $ 1,169,114 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. (2) 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 owned 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 September 30, 2016, 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 and thereafter. The Company provided solar power to one of its related parties, Heyang County Huanghe Bay Resort Hotel Co., Ltd. since 2014. As of September 30, 2016, 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 $16,090 at September 30, 2016. Accounts receivable from related parties consists of the following: September 30, December 31, 2016 2015 Interest Heyang County Huanghe Bay Resort Hotel Co.,Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 16,090 $ 7,151 Interest free Total $ 16,090 $ 7,151 |
DUE TO RELATED PARTIES
DUE TO RELATED PARTIES | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 4 - DUE TO RELATED PARTIES | The balance of $519,050 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 September 30, 2016. Due to related parties consists of the following. September 30, December 31, 2016 2015 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 $ 374,846 $ 385,166 Shaanxi Dukang Liquor Trading Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 95,308 $ 58,391 Shaanxi East Mining Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company (officially canceled on April 29, 2016) $ - $ 56,614 Baishui Du Kang Brand Management Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 8,996 $ 9,244 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 $ 916 $ 941 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 $ 38,984 $ - Total $ 519,050 $ 510,356 Shaanxi East Mining Co., Ltd., a company owned by Zhang Hongjun (70% ownership) and Wang Shengli (30% ownership), cancelled its registration on April 29, 2016 and agreed to forgive the loan borrowed by the Company. 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 $55,097 recorded as an adjustment to stockholders' equity (additional paid-in capital). 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. |
DUE TO SHAREHOLDERS
DUE TO SHAREHOLDERS | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 5 - DUE TO SHAREHOLDERS | The balance of $3,136,566 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 September 30, 2016. Due to shareholders consists of the following: September 30, 2016 December 31, 2015 Due to Wang Shengli $ 1,654,405 $ 1,699,954 Due to Zhang Hongjun 909,677 934,722 Due to Chen Min $ 572,484 $ 584,501 $ 3,136,566 $ 3,219,177 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 6 - INCOME TAXES | The Company did not have income tax expense or income tax payable due to the use of net loss carryover from prior years. As of September 30, 2016, the Company had net taxable operating loss carry forwards of approximately $1,616,776. 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 Companys 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 $404,194 was recorded. Components of the Companys net deferred tax assets are set forth below: September 30, 2016 December 31, 2015 Deferred tax assets Net operating loss carry-forward $ 404,194 $ 376,415 Total of Deferred tax assets $ 404,194 $ 376,415 Less: valuation allowance $ (404,194 ) $ (376,415 ) Net deferred assets $ - $ - |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Note 7 - SEGMENT INFORMATION | The Company operated in two reportable segments, Land use right leasing, and Solar PV energy for the nine months ended September 30, 2016. The Company did not recognize Land use right leasing revenue for the nine months ended September 30, 2016 because of the uncertain collectability of the revenues. See Note 3. Summarized information by business segment for the three and nine months ended September 30, 2016 and 2015 is as follows. For the Three months ended September 30, For the Nine months ended September 30, 2016 2015 2016 2015 Revenue Land use right leasing $ - 299,594 $ - 913,060 Solar PV energy 4,850 5,389 12,356 13,461 Cost of revenue Land use right leasing - 16,777 - 51,131 Solar PV energy 1,218 - 3,100 - Gross Profits Land use right leasing - 282,817 - 861,929 Solar PV energy 3,632 5,389 9,256 13,461 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. |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Summary Of Significant Accounting Policies Policies | |
Going Concern | The Company had a working capital deficit of $1,236,546 as of September 30, 2016 and had a negative cash flow from operating activities amounted to $88,333 for the nine months period ended September 30, 2016. 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 develop its sales from its main business. These conditions and uncertainties raise substantial doubt as to the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Foreign Currency Translation | Exchange rates applied for the foreign currency translation during the period are as follows: USD to RMB September 30, 2016 December 31, 2015 Period end USD : RMB exchange rate 6.6694 6.4907 Average periodic USD : RMB exchange rate 6.5792 6.2175 USD to HKD September 30, 2016 December 31, 2015 Period end USD : HKD exchange rate 7.7548 7.7504 Average periodic USD : HKD exchange rate 7.7633 7.7521 HKD is pegged to USD 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 USD at the rates used in translation. |
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. |
Recent Accounting Pronouncements | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. These amendments provide cash flow statement classification guidance for: 1. Debt Prepayment or Debt Extinguishment Costs; 2. Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; 3. Contingent Consideration Payments Made after a Business Combination; 4. Proceeds from the Settlement of Insurance Claims; 5. Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; 6. Distributions Received from Equity Method Investees; 7. Beneficial Interests in Securitization Transactions; and 8. Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In September 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. These amendments change the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity by changing how a reporting entity that is a single decision maker of a variable interest entity treats indirect interests in the entity held through related parties that are under common control with the reporting entity. If a reporting entity satisfies the first characteristic of a primary beneficiary (such that it is the single decision maker of a variable interest entity), the amendments require that reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a variable interest entity and, on a proportionate basis, its indirect variable interests in a variable interest entity held through related parties, including related parties that are under common control with the reporting entity. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the pending content that links to this paragraph in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary Of Significant Accounting Policies Tables | |
Exchange rates applied for foreign currency translation | Exchange rates applied for the foreign currency translation during the period are as follows: USD to RMB September 30, 2016 December 31, 2015 Period end USD : RMB exchange rate 6.6694 6.4907 Average periodic USD : RMB exchange rate 6.5792 6.2175 USD to HKD September 30, 2016 December 31, 2015 Period end USD : HKD exchange rate 7.7548 7.7504 Average periodic USD : HKD exchange rate 7.7633 7.7521 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Land Use Rights Net Tables | |
Summary of land use rights, net | The following is a summary of land use rights, net: September 30, 2016 December 31, 2015 Cost of Land Use Rights $ 19,190,992 $ 19,719,353 Accumulated Amortization of Land Use Rights (4,820,002 ) (4,656,915 ) Land Use Rights, Net $ 14,370,990 $ 15,062,438 |
DUE FROM RELATED PARTIES (Table
DUE FROM RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Due From Related Parties Tables | |
Loans receivable related parties | Loan from related parties consists of the following: September 30, December 31, 2016 2015 Interest Shaanxi Du Kang Liquor Group Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 1,123,170 $ 1,164,107 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 $ 4,873 $ 5,007 Interest free Total $ 1,128,043 $ 1,169,114 |
Accounts receivable related parties | Accounts receivable from related parties consists of the following: September 30, December 31, 2016 2015 Interest Heyang County Huanghe Bay Resort Hotel Co.,Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 16,090 $ 7,151 Interest free Total $ 16,090 $ 7,151 |
DUE TO RELATED PARTIES (Tables)
DUE TO RELATED PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Due To Related Parties Tables | |
Due to related parties | Due to related parties consists of the following. September 30, December 31, 2016 2015 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 $ 374,846 $ 385,166 Shaanxi Dukang Liquor Trading Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 95,308 $ 58,391 Shaanxi East Mining Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company (officially canceled on April 29, 2016) $ - $ 56,614 Baishui Du Kang Brand Management Co., Ltd., controlled by Zhang Hongjun, the Director and principal shareholder of the Company $ 8,996 $ 9,244 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 $ 916 $ 941 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 $ 38,984 $ - Total $ 519,050 $ 510,356 |
DUE TO SHAREHOLDERS (Tables)
DUE TO SHAREHOLDERS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Due To Shareholders Tables | |
Due to shareholders | Due to shareholders consists of the following: September 30, 2016 December 31, 2015 Due to Wang Shengli $ 1,654,405 $ 1,699,954 Due to Zhang Hongjun 909,677 934,722 Due to Chen Min $ 572,484 $ 584,501 $ 3,136,566 $ 3,219,177 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes Tables | |
Components of the Company's net deferred tax | Components of the Companys net deferred tax assets are set forth below: September 30, 2016 December 31, 2015 Deferred tax assets Net operating loss carry-forward $ 404,194 $ 376,415 Total of Deferred tax assets $ 404,194 $ 376,415 Less: valuation allowance $ (404,194 ) $ (376,415 ) Net deferred assets $ - $ - |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Information Tables | |
Summarized information by business segment | Summarized information by business segment for the three and nine months ended September 30, 2016 and 2015 is as follows. For the Three months ended September 30, For the Nine months ended September 30, 2016 2015 2016 2015 Revenue Land use right leasing $ - 299,594 $ - 913,060 Solar PV energy 4,850 5,389 12,356 13,461 Cost of revenue Land use right leasing - 16,777 - 51,131 Solar PV energy 1,218 - 3,100 - Gross Profits Land use right leasing - 282,817 - 861,929 Solar PV energy 3,632 5,389 9,256 13,461 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
USD to RMB [Member] | ||
Period end exchange rate | 6.6694 | 6.4907 |
Average periodic exchange rate | 6.5792 | 6.2175 |
USD to HKD [Member] | ||
Period end exchange rate | 7.7548 | 7.7504 |
Average periodic exchange rate | 7.7633 | 7.7521 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary Of Significant Accounting Policies Details Narrative | ||
Working capital deficit | $ 1,236,546 | |
Cash flow from operating activities | $ (88,333) | $ (104,754) |
LAND USE RIGHTS, NET (Details)
LAND USE RIGHTS, NET (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Land Use Rights Net Details | ||
Cost of Land use right | $ 19,190,992 | $ 19,719,353 |
Accumulated Amortization of Land use right | (4,820,002) | (4,656,915) |
Land Use Rights, Net | $ 14,370,990 | $ 15,062,438 |
LAND USE RIGHTS, NET (Details N
LAND USE RIGHTS, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Land Use Rights Net Details Narrative | ||||
Amortization expenses | $ 95,966 | $ 102,255 | $ 291,811 | $ 311,639 |
DUE FROM RELATED PARTIES (Detai
DUE FROM RELATED PARTIES (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Due from related parties non current | $ 1,128,043 | $ 1,169,114 |
Shaanxi Du Kang Liquor Group Co., Ltd. [Member] | ||
Due from related parties non current | $ 1,123,170 | $ 1,164,107 |
Interest | Interest free | Interest free |
Shaanxi Tangrenjie Advertising Media Co., Ltd. [Member] | ||
Due from related parties non current | $ 4,873 | $ 5,007 |
Interest | Interest free | Interest free |
DUE FROM RELATED PARTIES (Det26
DUE FROM RELATED PARTIES (Details 1) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Due from related parties non current | $ 16,090 | $ 7,151 |
Heyang County Huanghe Bay Resort Hotel Co., Ltd.[Member] | ||
Due from related parties non current | $ 16,090 | $ 7,151 |
Interest | Interest free | Interest free |
DUE FROM RELATED PARTIES (Det27
DUE FROM RELATED PARTIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | |
Due From Related Parties Details Narrative | ||
Due from related parties | $ 1,176,265 | $ 1,144,133 |
Write off - land lease amount | 3,618,818 | |
Due from related parties non current | $ 7,151 | $ 16,090 |
DUE TO RELATED PARTIES (Details
DUE TO RELATED PARTIES (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Due to related parties | $ 519,050 | $ 510,356 |
Baishui Dukang Marketing Management Co., Ltd. [Member] | ||
Due to related parties | 374,846 | 385,166 |
Shaanxi Dukang Liquor Trading Co., Ltd [Member] | ||
Due to related parties | 95,308 | 58,391 |
Shaanxi East Mining Co., Ltd., [Member] | ||
Due to related parties | 56,614 | |
Baishui Du Kang Brand Management Co., Ltd., [Member] | ||
Due to related parties | 8,996 | 9,244 |
Shaanxi Xi Deng Hui Development Stock Co., Ltd.,[Member] | ||
Due to related parties | 916 | 941 |
Shaanxi Huanghe Bay Ecological Agriculture Co.,Ltd., [Member] | ||
Due to related parties | $ 38,984 |
DUE TO RELATED PARTIES (Detai29
DUE TO RELATED PARTIES (Details Narrative) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Due To Related Parties Details Narrative | ||
Due to related parties | $ 519,050 | $ 510,356 |
DUE TO SHAREHOLDERS (Details)
DUE TO SHAREHOLDERS (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Due to shareholders | $ 3,136,566 | $ 3,219,177 |
Due to Wang Shengli [Member] | ||
Due to shareholders | 1,654,405 | 1,699,954 |
Due to Zhang Hongjun [Member] | ||
Due to shareholders | 909,677 | 934,722 |
Due to Chen Min [Member] | ||
Due to shareholders | $ 572,484 | $ 584,501 |
DUE TO SHAREHOLDERS (Details Na
DUE TO SHAREHOLDERS (Details Narrative) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Due To Shareholders Details Narrative | ||
Due to shareholders | $ 3,136,566 | $ 3,219,177 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Net operating loss carry-forward | $ 404,194 | $ 376,415 |
Total of Deferred tax assets | 404,194 | 376,415 |
Less: valuation allowance | (404,194) | (376,415) |
Net deferred assets |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Income Taxes Details Narrative | ||
Net taxable operating losses | $ 1,616,776 | |
Valuation allowance | $ 404,194 | $ 376,415 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cost of revenue | $ 1,218 | $ 16,777 | $ 3,100 | $ 51,131 |
Gross Profits | 3,632 | 288,206 | 9,256 | 875,390 |
Land use right leasing [Member] | ||||
Revenue | 299,594 | 913,060 | ||
Cost of revenue | 16,777 | 51,131 | ||
Gross Profits | 282,817 | 861,929 | ||
Solar PV energy [Member] | ||||
Revenue | 4,850 | 5,389 | 12,356 | 13,461 |
Cost of revenue | 1,218 | 3,100 | ||
Gross Profits | $ 3,632 | $ 5,389 | $ 9,256 | $ 13,461 |