| 2. Summary of significant accounting policies | Unaudited Interim Financial Information The accompanying unaudited financial statements of the Company have
been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they
do not include all of the information required by generally accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation
have been included. Operating results for the interim periods are not necessarily indicative of the results for any future period.
These statements should be read in conjunction with the Company's audited financial statements and notes thereto for the fiscal
year ended December 31, 2014. The results of the six months periods ended June 30, 2015 are not necessarily indicative of the results
to be expected for the full fiscal year ending December 31, 2015 Principles of consolidation The accompanying consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances within the Company are
eliminated in consolidation. Use of estimates The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires management to make estimates and assumptions that affect
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign currency translation The Company uses the United States dollar for financial reporting
purposes. The Companys subsidiaries maintain their books and records in their functional currency - Chinese Yuan Renminbi
(CNY) and Japanese Yen, being the primary currency of the economic environment in which their operations are conducted. All assets
and liabilities are translated at the current exchange rate, stockholders equity are translated at the historical rates
and income statement and statement of cash flows items are translated at the average exchange rate for the period. As a result,
amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the
corresponding balances on the balance sheet. The resulting translation adjustments are reported under other comprehensive as a
component of shareholders equity. Cash and cash equivalents The Company considers all cash on hand and in banks, including accounts
in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less,
when purchased, to be cash and cash equivalents. Allowance for doubtful accounts The Company maintains reserves for potential credit losses on accounts
receivable. Management reviews the composition of accounts receivable and other receivable and analyzes historical bad debts, customer
concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy
of these reserves. As of June 30, 2015 and December 31, 2014, the Company reserved $1,819,147 and $1,817,799 respectively, for
other receivable bad debt, and $706,214 and $705,691, respectively, for accounts receivable bad debt. The Company also reserved
$3,169,355 and $4,778,713 respectively for loans receivable as of June 30, 2015 and December 31, 2014 respectively. Property and equipment Property and equipment is being depreciated over the estimated useful
lives of the related assets. Depreciation is computed on the straight-line basis over useful lives as follows:
Buildings 8-26 years
Equipment 5 years
Automobile 5 years
Office furniture and fixtures 5 years Repairs and maintenance costs are normally charged to the statement
of operations and other comprehensive income in the year in which they are incurred. In situations where it can be clearly demonstrated
that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset,
the expenditure is capitalized as an additional cost of the asset. Property and equipment are evaluated annually for any impairment
in value. Where the recoverable amount of any property and equipment is determined to have declined below its carrying amount,
the carrying amount is reduced to reflect the decline in value. There were no property and equipment impairments recognized as
of June 30,2015 and December 31, 2014 respectively. Properties held for rental Properties include buildings held for rental and land use rights,
which are being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line
basis over 20-26 years. As of June 30, 2015 and December 31, 2014, net property held for rental amounted to $38,691,731 and $40,281,831
respectively. Accumulated depreciation of rental properties amounted to $34,994,762 as of June 30, 2015 and $33,350,033 as of December
31, 2014. Revenue recognition Rental income and management fee income The Company recognizes
the rental income on the straight-line basis over the terms of the tenancy agreements. The management fee, including the service
fee mainly for property management, maintenance and repair, and security, is recognized quarterly over the terms of the tenancy
agreements. Other income Other income consists of parking lot income, cleaning income and
etc. This income was recognized as the services were performed and the settled amount has been paid in accordance with the terms
of the agreement. Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income
by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by
dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the
period. As of June 30, 2015 and December 31, 2014, respectively, there were
no outstanding securities or other contracts to issue common stock, such as options, warrants or conversion rights, which would
have a dilutive effect on earnings per share.The basic and diluted weighted-average number of common shares are 12,967,148 and
11,759,966 as of June 30, 2015 and December 31, 2014, respectively. Stock issuance On March 27, 2015, the Company completed the sale of 2,300,000 shares
of its common stock at a price of US$3.28 per share, or a total of $7,544,000, to two non-U.S. unrelated business entities. The
Company had received all proceeds from these two entities. There are no options or warrants associated, nor conversion
features embedded in this transaction. Income taxes The Company accounts for income taxes using an asset and liability
approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax
benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income
tax purposes. The Company recognizes deferred tax assets and liabilities for the
expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method,
deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and
liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable
to the periods in which the difference are expected to affect taxable income. The Company records a valuation allowance for deferred tax assets,
if any, based on its estimates of its future taxable income as well as its tax planning strategies when it is more likely than
not that a portion or all of its deferred tax assets will not be realized. Concentrations of business and credit risk Financial instruments that potentially subject the Company to concentrations
of credit risk are cash and cash equivalents, accounts receivable and other receivables arising from its normal business activities.
The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company maintains
large sums of cash in one bank in United States and two major banks in China. The aggregate balance in such accounts in United
States and China as of June 30,2015 was $7,234,385 and $1,265,257, respectively. There is no insurance securing these deposits
in China. The Company has a diversified customer base, most of which are in China. The Company controls credit risk related to accounts receivable through
credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers
and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as
a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. Statement of cash flows Cash flows from the Company's operations is calculated based upon
the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily
agree with changes in the corresponding balances on the balance sheet. Recent accounting pronouncements There have been no new accounting pronouncements as the date of June
30, 2015 that are of significance, or potential significance, to the Company. Reclassifications Certain amounts in the 2014 financial statements may have been reclassified
to conform to the 2015 presentation. These reclassifications had no effect on previously reported results of operations or retained
earnings. |
