| 2. Summary of significant accounting policies | Principles of consolidation The ., Ltd. 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), 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, 2016 and December 31, 2015, the Company reserved $1,697,094 and $1,644,340 respectively, for
other receivable bad debt, and $661,217 and $675,929 respectively, for accounts receivable bad debt. The Company also reserved
$1,752,960 and $2,415,944 respectively for loans receivable as of June 30, 2016 and December 31, 2015 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, 2016 and December 31, 2015 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, 2016 and December 31, 2015, net property held for rental amounted to $32,777,297 and $35,502,002
respectively. Accumulated depreciation of rental properties amounted to $35,669,413 as ofJune 30, 2016 and $35,044,528 as of December
31, 2015. Investment Our long-term investments consist of cost method investment. The
Company carries at cost with its investment in investees which does not have readily determinable fair value and the Company does
not have significant influence. The Company only adjusts for other-than-temporary declines in fair value and distributions of earnings
that exceed the Companys share of earnings since its investment. The Company regularly evaluates the impairment of the cost
method investments based on performance and financial position of the investee as well as other evidence of market value. Such
evaluation includes, but is not limited to, reviewing the investees cash position, recent financing, projected and historical
financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess
of the investments cost over its fair value at the balance sheet date of the reporting period for which the assessment is
made. The fair value would then become the new cost basis of investment. 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. Real estate sales Revenue from the sales of development properties
is recognized by the full accrual method when the sale is consummated. A sale is not considered consummated until (1) the parties
are bound by the terms of a contract, (2) all consideration has been exchanged, (3) any permanent financing of which the seller
is responsible has been arranged, (4) all conditions precedent to closing have been performed, (5) the seller does not have substantial
continuing involvement with the property, and (6) the usual risks and rewards of ownership have been transferred to the buyer.
Sales transactions not meeting all the conditions of the full accrual method are accounted for using the deposit method of accounting.
Under the deposit method, all costs are capitalized as incurred, and payments received from the buyer are recorded as a deposit
liability. Real estate capitalization and cost allocation Real estate
held for development or sale is stated at cost or estimated net realizable value, whichever is lower. Costs include land and land
improvements, direct construction costs and development costs, including predevelopment costs, interest on indebtedness, real estate
taxes, insurance, construction overhead and indirect project costs. Selling and advertising costs are expensed as incurred. Total
estimated costs of multi-unit developments are allocated to individual units based upon specific identification methods. Fair Value Measurements The Company applies the provisions of ASC Subtopic
820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities
and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC
820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or
most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing
the asset or liability. ASC 820 establishes a fair value hierarchy that
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
ASC 820 establishes three levels of inputs to measure fair value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving
significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are 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. There were no assets or liabilities measured
at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of June 30, 2016 and September 30,
2015. Impairment If real estate is determined to be impaired, it
will be written down to its fair market value. Real estate held for development or sale costs include the cost of land use rights,
land development and home construction costs, engineering costs, insurance costs, wages, real estate taxes, and interest related
to development and construction. All costs are accumulated by specific projects and allocated to residential and commercial units
within the respective projects. The Company leases the land for the residential unit sites under land use rights with various terms
from the government of the PRC. The Company evaluates the carrying value for impairment based on the undiscounted future cash flows
of the assets. Write-downs of inventory deemed impaired would be recorded as adjustments to the cost basis. No depreciation is
provided for construction in progress. Other income Other income consists of land leveling income, 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, 2016 and December 31, 2015, 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 as the effect of options outstanding at that time was anti- dilutive. 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. Non-controlling interest Non-controlling interest represents the
portion of equity that is not attributable to the Company. The net income (loss) attributable to non-controlling interests are
separately presented in the accompanying statements of income and other comprehensive income. Losses attributable to non-controlling
interests in a subsidiary may exceed the interest in the subsidiarys equity. The related non-controlling interest continues
to be attributed its share of losses even if that attribution results in a deficit of the non-controlling interest balance. The
non-controlling interest % of entity Panacea Co., Ltd., which was set up in April 2015, was 47%, with the amount of $67,342 and
$142,782 as of June 30, 2016 and December 31, 2015, respectively. 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 two major banks in China. The aggregate balance in such accounts as of June 30, 2016 was $203,794. 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. Reclassifications Certain amounts in the 2015 financial statements may have been reclassified
to conform to the 2016 presentation. These reclassifications had no effect on previously reported results of operations or retained
earnings. Recent accounting pronouncements Revenue Recognition Disclosure of Going Concern Uncertainties Liabilities Financial instrument Leases Stock-based Compensation |
