Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Apr. 15, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | FOUNTAIN HEALTHY AGING, INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 600,034,500 | ||
Entity Public Float | $ 94,188.45 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001309251 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
Entity File Number | 333-123774 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 61,517 | $ 23,046 |
Other receivables | 101,432 | 78,385 |
Inventory | 66,037 | 69,518 |
Prepayment | 133,646 | 129,879 |
Amount due from related parties | 142,450 | 57,446 |
Total current assets | 505,082 | 358,274 |
Non-current assets: | ||
Leasehold improvements and equipment, net | 87,333 | 104,432 |
Intangible assets | 76,546 | |
Operating lease right-of-use assets | 383,203 | 613,831 |
Total non-current assets | 470,536 | 794,809 |
Total assets | 975,618 | 1,153,083 |
Current liabilities: | ||
Accounts payable | 134,842 | 131,247 |
Income tax payables | 31,774 | 5,808 |
Other payables and accruals | 336,604 | 197,357 |
Advance from customers | 27,648 | 458,165 |
Amount due to related parties | 1,097,152 | 95,772 |
Current operating lease liabilities | 319,697 | 243,959 |
Total current liabilities | 1,947,717 | 1,132,308 |
Non-current liabilities: | ||
Non-current operating lease liabilities | 63,506 | 369,872 |
Total non-current liabilities | 63,506 | 369,872 |
Total liabilities | 2,011,223 | 1,502,180 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY (DEFICIT) | ||
Common Stock | 6,000 | 6,000 |
Additional paid in capital | (15,146) | (15,146) |
Foreign currency translation reserves | (54,091) | 4,547 |
Accumulated deficit | (973,368) | (345,498) |
Total deficit | (1,035,605) | (349,097) |
Total liabilities and equity | 975,618 | 1,153,083 |
Series A preferred Stock | ||
EQUITY (DEFICIT) | ||
Series A preferred Stock | $ 1,000 | $ 1,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common Stock, shares authorized | 750,000,000 | 750,000,000 |
Common Stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Common Stock, shares issued | 600,034,500 | 600,034,500 |
Common Stock, shares outstanding | 600,034,500 | 600,034,500 |
Series A preferred Stock | ||
Series A Preferred Stock, shares authorized | 100,000,000 | 100,000,000 |
Series A Preferred Stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 |
Series A preferred Stock, shares issued | 100,000,000 | 100,000,000 |
Series A preferred Stock, shares outstanding | 100,000,000 | 100,000,000 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 1,194,427 | $ 2,107,465 |
Cost of revenue | (176,393) | (275,916) |
Gross profit | 1,018,034 | 1,831,549 |
Selling and marketing expenses | (108,364) | (200,042) |
General and administrative expense | (1,519,552) | (1,963,728) |
Total operating expenses | (1,627,916) | (2,163,770) |
Operating loss | (609,882) | (332,221) |
Other income (expenses), net | 1,705 | (13,459) |
Loss before income taxes | (608,177) | (345,680) |
Income taxes | (19,693) | (5,866) |
Net loss for the year | (627,870) | (351,546) |
Foreign currency translation differences | (58,638) | 2,954 |
Total comprehensive loss for the year | $ (686,508) | $ (348,592) |
(Loss) Earnings per share: | ||
- Basic (in Dollars per share) | $ (0.001) | $ (0.001) |
- Diluted (in Dollars per share) | $ (0.001) | $ (0.001) |
Weighted average number of shares used in computation: | ||
- Basic (in Shares) | 600,034,500 | 600,034,500 |
- Diluted (in Shares) | 700,034,500 | 700,034,500 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) | Series A preferred Stock | Common Stock | Additional paid in Capital | Foreign Currency Translation Reserve | Accumulated Deficit - Unrestricted | Accumulated Deficit - Statutory Reserve | Total |
Balance at Dec. 31, 2018 | $ 6,000 | $ (15,146) | $ 1,593 | $ (40,417) | $ (47,970) | ||
Preferred stock issued to related party | 1,000 | 1,000 | |||||
Loss for the year | (311,975) | 6,894 | (305,081) | ||||
Other comprehensive income | 2,954 | 2,954 | |||||
Balance at Dec. 31, 2019 | 1,000 | 6,000 | (15,146) | 4,547 | (352,392) | 6,894 | (349,097) |
Loss for the year | (627,870) | (627,870) | |||||
Other comprehensive income | (58,638) | (58,638) | |||||
Balance at Dec. 31, 2020 | $ 1,000 | $ 6,000 | $ (15,146) | $ (54,091) | $ (980,262) | $ 6,894 | $ (1,035,605) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (627,870) | $ (351,546) |
Adjustments for: | ||
Depreciation and amortization | 25,559 | 28,002 |
Impairment of intangible assets | 77,264 | |
Changes in: | ||
Other receivables | (16,876) | (63,970) |
Inventory | 7,672 | (70,109) |
Prepayment | 4,616 | (130,983) |
Accounts payable | (4,864) | 132,362 |
Income tax payables | 24,208 | 5,857 |
Other payables and accruals | 119,498 | 150,744 |
Advance from customers | (436,297) | 462,058 |
Amount due to related parties | 864,845 | 49,310 |
Net cash provided by operating activities | 37,755 | 211,725 |
Cash flows from investing activities: | ||
Additions to leasehold improvements and equipment | (2,800) | (110,911) |
Additions to intangible assets | (79,984) | |
Net cash used in investing activities | (2,800) | (190,895) |
Effect of exchange rate changes on cash and cash equivalents | 3,516 | (203) |
Net increase in cash and cash equivalents | 38,471 | 20,627 |
Cash and cash equivalents at the beginning of year | 23,046 | 2,419 |
Cash and cash equivalents at the end of the year | 61,517 | 23,046 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 383,203 | $ 302,396 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Fountain Healthy Aging, Inc. (the “Company” or “FHAI”) was incorporated under the laws of the State of Nevada on February 25, 2004 with the original company name of Celtic Cross Ltd., initially for the purpose of acquiring timeshare entities and additional like entities. For unknown reasons, FHAI was later abandoned and ceased filings with the Nevada Secretary of State for more than ten years following December 2, 2008. Thereafter, on April 2019, the district court in Nevada appointed Custodian Ventures, LLC (“Custodian”) as the custodian of FHAI upon an application for appointment of custodian filed by the Custodian. The Custodian brought FHAI into active status with the State of Nevada, appointed directors and officers of FHAI, and took control of FHAI. Until February 2, 2021, FHAI has not engaged in any business, and has been a shell company. On February 1, 2021, FHAI entered into a Share Exchange Agreement (the “Exchange Agreement”), with Wei Lian Jin Meng Group Limited, a limited liability company incorporated in the Cayman Islands (“WLJM Cayman” and together with its subsidiaries, the “WLJM Subsidiaries Group”), and shareholders who together own shares constituting 100% of the issued and outstanding shares of WLJM Cayman (the “Sellers”). Pursuant to the terms of the Exchange Agreement, the Sellers transferred to FHAI all of their shares of WLJM Cayman in exchange for the issuance of 600,000,000 shares (the “Shares”) of FHAI’s common stock (the “Acquisition”). The Acquisition has been accounted for as a recapitalization of FHAI, whereby WLJM Cayman is the accounting acquirer. As a result of the Acquisition, FHAI is now a holding company, is engaged in providing products and services in the food and beverage industry, including producing and selling “coffee tea” products, which represent drinks made from a mixture of coffee and tea, black coffee products and other coffee products. Immediately after completion of the Acquisition on February 2, 2020 (the “Closing Date”), FHAI’s capital stock consisted of: (i) 750,000,000 shares of common stock, par value $0.00001 per share (“Common Stock”), authorized, of which 600,034,500 shares are issued and outstanding; and (ii) 100,000,000 shares of preferred stock, par value $0.00001 per share, of which all 100,000,000 shares are designated Series A Preferred Stock (“Series A Preferred Stock”), of which all 100,000,000 shares are issued and outstanding. As a result of the Acquisition, as of the Closing Date the Company has ceased to fall under the definition of shell company as defined in Rule 12b-2 under the Exchange Act of 1934, as amended (the “Exchange Act”) and WLJM Cayman is now a wholly owned subsidiary. For accounting purposes, the Share Exchange was treated as a reverse acquisition with WLJM Cayman as the acquirer and the Company as the acquired party. WLJM Cayman was incorporated in the Cayman Islands under the Cayman Islands Companies Law on June 30, 2020. The Company does not conduct any substantive operations on its own but instead conducts its business operations through its subsidiaries in in the Peoples’ Republic of China (the “PRC”). Wei Lian Jin Meng (Hong Kong) Co., Ltd. (“WLJM HK”) was incorporated in Hong Kong under the Hong Kong Companies’ Ordinance (Chapter 622), on August 5, 2020. WLJM HK is a 100% owned subsidiary of WLJM Cayman. Jin You Wei Meng (Shenzhen) Consulting Co., Ltd. (“JYWM WFOE”) was incorporated in the Peoples’ Republic of China (the “PRC”) on November 24, 2020. JYWM WFOE is a 100% owned subsidiary of WLJM HK. Shenzhen Wei Lian Jin Meng Electronic Commerce Limited (“Shenzhen Wei Lian”) was incorporated in the Peoples’ Republic of China (the “PRC”) on October 17, 2017. Shenzhen Wei Lian is a 100% owned subsidiary of JYWM WFOE. Shenzhen Wei Lian wholesales “coffee tea” products to retail partners and corporate customers. Dongguan Dishi Coffee Limited (“Dongguan Dishi”) was incorporated in the Peoples’ Republic of China (the “PRC”) on October 25, 2018. Dongguan Dishi is a 100% owned subsidiary of Shenzhen Wei Lian. Dongguan Dishi merchandizes “coffee tea” products for Shenzhen Wei Lian. Shenzhen Nainiang Coffee Art Museum Limited (“Shenzhen Nainiang”) was incorporated in the Peoples’ Republic of China (the “PRC”) on June 20, 2019. Shenzhen Nainiang is a 100% owned subsidiary of Shenzhen Wei Lian. Shenzhen Nainiang starts generating revenues in the fiscal year 2020. Currently, Shenzhen Nainiang sells “coffee tea” products to individual consumers and provides pre-opening assistance to retail partners to operate coffee stores The reorganization of WLJM Cayman and its subsidiaries was completed on December 24, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $627,870 and $351,546 during the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company had net current liability of $1,442,635 and a deficit on equity of $1,035,605. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the shareholders of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the shareholders of the Company indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. (b) Basis of Consolidation Pursuant to the reorganization, WLJM Cayman became the holding company of WLJM Subsidiaries Group, which were under the common control of the controlling shareholder before and after the reorganization. And as a result of the acquisition with FHAI, accordingly, FHAI and its subsidiaries’ (collectively referred to as the “Company”) financial statements have been prepared on a consolidated basis by applying the predecessor value method as if the reorganization had been completed at the beginning of the earliest reporting period. The consolidated statements of profit or loss and other comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows of the Company for the relevant periods include the results and cash flows of all companies now comprising the Company from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the common control of the controlling shareholders, wherever the period is shorter. The consolidated balance sheets of the Company as of December 31, 2020 and 2019 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholders’ perspective. No adjustments are made to reflect fair values, or to recognize any new assets or liabilities as a result of the reorganization. All intra-group and inter-company transactions and balances have been eliminated on consolidation. (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts, etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2020 and 2019. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (e) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of profit or loss during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: Leasehold improvement Shorter of the lease term or estimated useful life Equipment 5 years Machinery 10 years Computer equipment and software 3 years Motor vehicle 4 years The assets’ residual value, useful lives, and depreciation method are regularly reviewed. (f) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of profit or loss where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded an impairment loss on intangible assets of $77,264 and $nil during the years ended December 31, 2020 and 2019, respectively. (g) Revenue Recognition The Company recognizes revenue from the sale of “coffee tea” products, net of value-added taxes, upon delivery at such time when title passes to the customer. Customers are required to pay in advance before making sales orders and the advance is initially recorded as advance from customers. During the year ended December 31, 2020 and 2019, product revenue amounted to $1,218,256 and $ , respectively. In addition, the Company provides pre-opening assistance to retail partners to operate coffee stores, revenue is recognized upon the completion of services. During the year ended December 31, 2020 and 2019, service revenue amounted to $66,022 and $nil, respectively. The Company’s revenue recognition policy is in compliance with ASU No. 2014-09, Revenue from Contracts with Customers whereby revenue is recognized when a customer obtains control of promised goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery or service being rendered. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. (h) Research and Development Costs Research and development costs are expensed as incurred. Research and development costs included in general and administrative expenses for the years ended December 31, 2020 and 2019 was $98,892 and $99,687, respectively. (i) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. (j) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and 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 equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: 2020 2019 Year-end RMB exchange rate 6.53 6.96 Annual average RMB exchange rate 6.90 6.90 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. (k) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. All the Company’s cash and cash equivalents are in RMB. (l) COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in the last two months of the financial year and subsequent to the financial year end. As the situation continues to evolve with significant level of uncertainty, the Company is unable to reasonably estimate the full financial impact of the COVID-19 outbreak. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. (m) Fair Value Fair value is the price that would be received from selling 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 required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (n) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivables, other receivables, accounts payable, other payables and advance from customers. The carrying amounts of these balances approximate their fair values due to the short-term maturities of these instruments. (o) Inventories Inventories primarily consist of packing materials and finished goods, which are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. No allowance for obsolete finished goods for the years ended December 31, 2020 and 2019. (p) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. Series A Preferred Stock was included in the dilutive ordinary shares as of December 31, 2020 and 2019. (q) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. (r) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. (s) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, other receivables and amounts due from related parties. As of December 31, 2020 and 2019, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. The Company did not have any customers constituting 10% or more of the net revenues in the years of 2020 and 2019. (t) Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For smaller public business entities, the amendments in this Update are effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. |
Other Receivables
Other Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | 3. OTHER RECEIVABLES As of December 31, 2020 and 2019, other receivables mainly consist of employees advance to be spent for company purposes and refundable rental deposits. The balances are unsecured, non-interest bearing and repayable on demand. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 4. INVENTORY As of December 31, 2020 2019 Raw materials (1) $ 51,521 $ 36,849 Finished goods 14,516 32,669 $ 66,037 $ 69,518 (1) Raw materials mainly consist of unprocessed coffee beans and packaging materials |
Prepayment
Prepayment | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
PREPAYMENT | 5. PREPAYMENT As of December 31, 2020 and 2019, prepayment mainly consists of prepaid administrative expenses that has been utilized subsequently. |
Leasehold Improvement and Equip
Leasehold Improvement and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET | 6. LEASEHOLD IMPROVEMENT AND EQUIPMENT, NET As of December 31, 2020 2019 Leasehold improvement $ 64,191 $ 60,186 Equipment 16,653 15,614 Machinery 32,563 30,531 Computer equipment and software 20,355 16,311 Motor vehicle 7,245 6,793 $ 141,007 $ 129,435 Less: accumulated depreciation (53,673 ) (25,003 ) $ 87,333 $ 104,432 Depreciation expense for the years ended December 31, 2020 and 2019 was $25,559 and $24,635 respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 7. INTANGIBLE ASSETS As of December 31, 2020 2019 APP Platform $ - $ 79,885 Less: accumulated amortization - (3,339 ) $ - $ 76,546 Amortization expense for the years ended December 31, 2020 and 2019 was $nil and $3,368, respectively. The Company recorded an impairment loss on intangible assets of $77,264 to write off the APP Platform during the year ended December 31, 2020. |
Other Payables and Accruals
Other Payables and Accruals | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES AND ACCRUALS | 8. OTHER PAYABLES AND ACCRUALS As of December 31, 2020 2019 Accrued payroll and welfare payable $ 180,878 $ 72,808 VAT and other taxes payable 92,608 58,435 Others (1) 63,118 66,114 $ 336,604 $ 197,357 (1) As of December 31, 2020 and 2019, others mainly consist of the outstanding refundable balance upon termination of the cooperative agreement with one customer of $30,634 (RMB200,000) and $33,031 (RMB230,000), respectively. In addition, there were payables for rental expenses of $21,865 (RMB142,748) as of December 31, 2020. |
Advance from Customers
Advance from Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
ADVANCE FROM CUSTOMERS | 9. ADVANCE FROM CUSTOMERS The Company requires retail partners to sign cooperative agreement and to pay in advance for the supply of goods. Such advance is appropriated against future sales orders. These advances are interest free, unsecured and short-term in nature. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES FHAI was incorporated in the State of Nevada. FHAI is an U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as FHAI had no United States taxable income for the years ended December 31, 2020 and 2019. WLJM Cayman was incorporated in Cayman Islands . Under the current tax laws of Cayman Islands, WLJM Cayman is not subject to tax on their income or capital gains. In addition, upon of dividends by WLJM Cayman to its shareholders, no Cayman Islands withholding tax will be imposed. WLJM HK was incorporated in Hong Kong and is subject to an income tax rate of 16.5% for taxable income generated from operations in Hong Kong. JYWM WFOE, Shenzhen Wei Lian, Dongguan Dishi and Shenzhen Nainiang were incorporated in the PRC and they are subject to profits tax rate at 25% for income generated and operation in the country. The full realization of the tax benefit associated with the losses carried forward depends predominantly upon the Company’s ability to generate taxable income during the carry forward period. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The Company did not record deferred tax assets as of December 31, 2020 and 2019. Income tax expense (benefits) For the years ended 2020 2019 Current tax expense $ 19,693 $ 5,866 Deferred tax benefits - - $ 19,693 $ 5,866 A reconciliation of the effective tax rates from 25% statutory tax rates for the years ended December 31, 2020 and 2019 is as follows: For the years ended 2020 2019 Loss before tax $ (608,177 ) $ (345,680 ) Tax benefit calculated at statutory tax rate 25 % 25 % Computed expected benefits (152,044 ) (86,420 ) Tax losses not recognized 171,737 80,554 $ 19,693 $ 5,866 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | 11. LEASES The adoption of the new lease guidance did not have a material impact on the Company’s results of operations or liquidity, but resulted in the recognition of operating lease liabilities and operating lease right-of-use assets on its balance sheets. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The company has leases for the office, factory and warehouse in the PRC, under operating leases expiring on various dates through September 2023, which is classified as operating leases. There are no residual value guarantees and no restrictions or covenants imposed by the leases. Rent expense for the years ended December 31, 2020 and 2019 were $268,120 and $208,949, respectively. Cash paid for the operating leases was included in the operating cash flows. As of December 31, 2020, the Company has $383,203 of right-of-use assets, $319,697 in current operating lease liabilities and $63,506 in non-current operating lease liabilities. As of December 31, 2019, the Company has $613,831 of right-of-use assets, $243,959 in current operating lease liabilities and $369,872 in non-current operating lease liabilities. Significant assumptions and judgments made as part of the adoption of this new lease standard include determining (i) whether a contract contains a lease, (ii) whether a contract involves an identified asset, and (iii) which party to the contract directs the use of the asset. The discount rates used to calculate the present value of lease payments were determined based on hypothetical borrowing rates available to the Company over terms similar to the lease terms. The Company’s future minimum payments under long-term non-cancelable operating leases are as follows: 2020 Within 1 year $ 332,867 After 1 year but within 5 years 95,586 Total lease payments $ 428,453 Less: imputed interest (45,250 ) Total lease obligations 383,203 Less: current obligations (319,697 ) Long-term lease obligations $ 63,506 Other information: For the years ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 268,120 $ 208,949 Right-of-use assets obtained in exchange for operating lease liabilities 383,203 302,396 Remaining lease term for operating leases (years) 1.88 2.88 Weighted average discount rate for operating leases 4.75 % 4.75 % |
Related Parties Transactions
Related Parties Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES TRANSACTIONS | 12. RELATED PARTIES TRANSACTIONS The Company had the following balances with related parties: (a) Amount due from related parties As of December 31, Relationship 2020 2019 Ye Aiyun Shareholder of the Company 142,450 57,446 Total $ 142,450 $ 57,446 Amount due from related parties represents cash advance to Ye Aiyun, shareholder of the Company. The balance is unsecured, non-interest bearing and repayable on demand. (b) Amount due to related parties As of December 31, Relationship 2020 2019 Zhu Hong Shareholder of the Company 1,059,853 94,149 Zhu Jian Yong Shareholder of the Company 1,731 1,623 Shenzhen Weilian Jin Meng Culture Spreading Limited Zhu Hong is the shareholder 24,800 - Shenzhen Nainiang Wine Limited Zhu Hong is the shareholder 10,768 - Total $ 1,097,152 $ 95,772 The balances represent cash advances to related parties, which were offset with the Company’s assets and expenses paid on behalf by the related parties. The balances with a related party are unsecured, non-interest bearing and repayable on demand. (c) Transactions For the years ended Cash advance from related parties 2020 2019 Zhu Jian Yong - 1,623 Shenzhen Nainiang Wine Limited 66,683 - Shenzhen Weilian Jin Meng Culture Spreading Limited 29,282 - Total $ 95,965 $ 1,623 For the years ended Cash advance to related parties 2020 2019 Zhu Hong 200,876 1,858,057 Ye Aiyun 76,830 - Shenzhen Weilian Jin Meng Culture Spreading Limited 6,204 - Shenzhen Nainiang Wine Limited 56,492 57,446 Total $ 340,402 $ 1,915,503 For the years ended Cash repayment from related parties 2020 2019 Zhu Hong 1,093,131 1,505,893 Total $ 1,093,131 $ 1,505,893 For the years ended Assets purchased on behalf by related parties 2020 2019 Zhu Hong - 45,806 Total $ - $ 45,806 For the years ended Expense paid on behalf by related parties 2020 2019 Zhu Hong 15,758 360,737 Total $ 15,758 $ 360,737 For the years ended Advance from customers received on behalf by related parties 2020 2019 Zhu Hong - 498,775 Total $ - $ 498,775 For the years ended Advance from customers refunded on behalf by related parties 2020 2019 Zhu Hong - 557,861 Total $ - $ 557,861 |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Reserves [Abstract] | |
RESERVES | 13. RESERVES (a) Statutory reserve Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises, the Company must make appropriations from after-tax profit to non-distributable reserve funds. Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under the PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Company’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. The Company did not accrue the statutory reserve during the years ended December 31, 2020 and 2019. (b) Currency translation reserve The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s reporting currency. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Commitment consist of a non-cancelable consultancy service agreement entered into with a third-party for the provision of services related to the US listing with a contract sum of $1,200,000. The outstanding committed contract amount is $120,000. The terms of the agreement are for various milestones stages to be completed within two years through 2021. Future commitments within one year as of December 31, 2020 was $120,000. No future commitments more than one year as of December 31, 2020. Except the above commitments and the operating lease commitment as disclosed at Note 6, there are no material commitments. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS There is no subsequent events have occurred that would require recognition or disclosure in the financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying financial statements include the balances and results of operations of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). The accompanying financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $627,870 and $351,546 during the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company had net current liability of $1,442,635 and a deficit on equity of $1,035,605. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the shareholders of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the shareholders of the Company indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Basis of Consolidation | (b) Basis of Consolidation Pursuant to the reorganization, WLJM Cayman became the holding company of WLJM Subsidiaries Group, which were under the common control of the controlling shareholder before and after the reorganization. And as a result of the acquisition with FHAI, accordingly, FHAI and its subsidiaries’ (collectively referred to as the “Company”) financial statements have been prepared on a consolidated basis by applying the predecessor value method as if the reorganization had been completed at the beginning of the earliest reporting period. The consolidated statements of profit or loss and other comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows of the Company for the relevant periods include the results and cash flows of all companies now comprising the Company from the earliest date presented or since the date when the subsidiaries and/or businesses first came under the common control of the controlling shareholders, wherever the period is shorter. The consolidated balance sheets of the Company as of December 31, 2020 and 2019 have been prepared to present the assets and liabilities of the subsidiaries using the existing book values from the controlling shareholders’ perspective. No adjustments are made to reflect fair values, or to recognize any new assets or liabilities as a result of the reorganization. All intra-group and inter-company transactions and balances have been eliminated on consolidation. |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent liabilities at the balance sheet date, and revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s financial statements include the valuation allowance for deferred tax assets, economic lives and impairment of leasehold improvements and equipment, allowance for doubtful accounts, etc. Actual results could differ from those estimates and such differences could affect the results of operations reported in future periods. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2020 and 2019. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. |
Leasehold Improvement and Equipment | (e) Leasehold Improvement and Equipment An item of leasehold improvement and equipment is stated at cost less any accumulated depreciation and any accumulated allowance for decrease in value (if any). The cost of an item of leasehold improvement and equipment comprises its purchase price, import duties and non-refundable purchase taxes (after deducting trade discounts and rebates) and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. These can include the initial estimate of costs of dismantling and removing the item, and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period. The cost of replacing part of leasehold improvement and equipment is included in the carrying amount of the asset when it is probable that future economic benefits will flow to the Company and the carrying amount of those replaced parts is derecognized. Repairs and maintenance are charged to the statement of profit or loss during the financial period in which they are incurred. Depreciation is calculated on the straight-line basis to write off the cost of each asset to its residual value over the estimated useful life as follows: Leasehold improvement Shorter of the lease term or estimated useful life Equipment 5 years Machinery 10 years Computer equipment and software 3 years Motor vehicle 4 years The assets’ residual value, useful lives, and depreciation method are regularly reviewed. |
Impairment of long-lived assets | (f) Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Whenever there is an indication showing a permanent decrease in the amount of leasehold improvement and equipment; such as an evidence of obsolescence or physical damage of an asset, significant changes in the manner in which an asset is used or is expected to be used, the Company shall recognize loss on decrease in value of leasehold improvement and equipment in the statement of profit or loss where the carrying amount of asset is higher than the recoverable amount. The Company measures impairment by comparing the carrying value of the long-lived assets to the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected discounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the fair value of the assets. The Company recorded an impairment loss on intangible assets of $77,264 and $nil during the years ended December 31, 2020 and 2019, respectively |
Revenue Recognition | (g) Revenue Recognition The Company recognizes revenue from the sale of “coffee tea” products, net of value-added taxes, upon delivery at such time when title passes to the customer. Customers are required to pay in advance before making sales orders and the advance is initially recorded as advance from customers. During the year ended December 31, 2020 and 2019, product revenue amounted to $1,218,256 and $ , respectively. In addition, the Company provides pre-opening assistance to retail partners to operate coffee stores, revenue is recognized upon the completion of services. During the year ended December 31, 2020 and 2019, service revenue amounted to $66,022 and $nil, respectively. The Company’s revenue recognition policy is in compliance with ASU No. 2014-09, Revenue from Contracts with Customers whereby revenue is recognized when a customer obtains control of promised goods and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the services in the contract; (ii) determination of whether the services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery or service being rendered. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules. |
Research and Development Costs | (h) Research and Development Costs Research and development costs are expensed as incurred. Research and development costs included in general and administrative expenses for the years ended December 31, 2020 and 2019 was $98,892 and $99,687, respectively. |
Operating leases | (i) Operating leases The Company determines if an arrangement contains a lease at inception. The Company elected the practical expedient, for all asset classes, to account for each lease component of a contract and its associated non-lease components as a single lease component, rather than allocating a standalone value to each component of a lease. For purposes of calculating operating lease obligations under the standard, the Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company’s leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The discount rate used to measure a lease obligation is usually the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. |
Foreign Currency Translation | (j) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar and the functional currency is the Chinese Renminbi (“RMB”). All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and 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 equity. Transactions in currencies other than the functional currencies during the year are converted into the applicable functional currencies at the applicable rates of exchange prevailing at the dates of the transactions. Exchange gains and losses are recognized in the statements of operations. The exchange rates utilized as follows: 2020 2019 Year-end RMB exchange rate 6.53 6.96 Annual average RMB exchange rate 6.90 6.90 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. |
Foreign Currency Risk | (k) Foreign Currency Risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of the RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. All the Company’s cash and cash equivalents are in RMB. |
COVID-19 | (l) COVID-19 The Coronavirus Disease (COVID-19) outbreak and the measures taken to contain the spread of the pandemic have created a high level of uncertainty to global economic prospects and this has impacted the Company’s operations and its financial performance in the last two months of the financial year and subsequent to the financial year end. As the situation continues to evolve with significant level of uncertainty, the Company is unable to reasonably estimate the full financial impact of the COVID-19 outbreak. The Company is monitoring the situation closely and to mitigate the financial impact, it is conscientiously managing its cost by adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to align repayment obligations with receivable collections. |
Fair Value | (m) Fair Value Fair value is the price that would be received from selling 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 required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when valuing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Fair Value of financial instruments | (n) Fair Value of financial instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivables, other receivables, accounts payable, other payables and advance from customers. The carrying amounts of these balances approximate their fair values due to the short-term maturities of these instruments. |
Inventories | (o) Inventories Inventories primarily consist of packing materials and finished goods, which are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. No allowance for obsolete finished goods for the years ended December 31, 2020 and 2019. |
Income Taxes | (q) Income Taxes Income tax expense comprises current and deferred taxation and is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized directly in other comprehensive income or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable with respect to previous periods. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax basis of assets and liabilities, net of operating loss carry forwards and credits, by applying enacted tax rates that will be in effect for the period in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in the statements of operations in the period of change. The Company accounts for uncertain tax positions by reporting a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Tax benefits are recognized from uncertain tax positions when the Company believes that it is more likely than not that the tax position will be sustained on examination by the tax authorities based on the technical merits of the position. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expenses. |
Comprehensive income | (r) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of comprehensive income. |
Concentration of credit risk | (s) Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash and cash equivalents, other receivables and amounts due from related parties. As of December 31, 2020 and 2019, substantially all of the Company’s cash and cash equivalents were deposited with financial institutions with high-credit ratings and quality. The Company did not have any customers constituting 10% or more of the net revenues in the years of 2020 and 2019. |
Recent accounting pronouncements | (t) Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For smaller public business entities, the amendments in this Update are effective for fiscal years beginning after January 1, 2023, including interim periods within those fiscal years. All entities may adopt the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s financial statements. |
Earnings Per Share, Policy [Policy Text Block] | (p) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. Series A Preferred Stock was included in the dilutive ordinary shares as of December 31, 2020 and 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful life | Leasehold improvement Shorter of the lease term or estimated useful life Equipment 5 years Machinery 10 years Computer equipment and software 3 years Motor vehicle 4 years |
Schedule of foreign currency translation exchange rates | 2020 2019 Year-end RMB exchange rate 6.53 6.96 Annual average RMB exchange rate 6.90 6.90 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of December 31, 2020 2019 Raw materials (1) $ 51,521 $ 36,849 Finished goods 14,516 32,669 $ 66,037 $ 69,518 (1) Raw materials mainly consist of unprocessed coffee beans and packaging materials |
Leasehold Improvement and Equ_2
Leasehold Improvement and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of leasehold improvement and equipment, net | As of December 31, 2020 2019 Leasehold improvement $ 64,191 $ 60,186 Equipment 16,653 15,614 Machinery 32,563 30,531 Computer equipment and software 20,355 16,311 Motor vehicle 7,245 6,793 $ 141,007 $ 129,435 Less: accumulated depreciation (53,673 ) (25,003 ) $ 87,333 $ 104,432 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | As of December 31, 2020 2019 APP Platform $ - $ 79,885 Less: accumulated amortization - (3,339 ) $ - $ 76,546 |
Other Payables and Accruals (Ta
Other Payables and Accruals (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of other payables and accruals | As of December 31, 2020 2019 Accrued payroll and welfare payable $ 180,878 $ 72,808 VAT and other taxes payable 92,608 58,435 Others (1) 63,118 66,114 $ 336,604 $ 197,357 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (Benefits) | For the years ended 2020 2019 Current tax expense $ 19,693 $ 5,866 Deferred tax benefits - - $ 19,693 $ 5,866 |
Schedule of reconciliation of effective tax rates | For the years ended 2020 2019 Loss before tax $ (608,177 ) $ (345,680 ) Tax benefit calculated at statutory tax rate 25 % 25 % Computed expected benefits (152,044 ) (86,420 ) Tax losses not recognized 171,737 80,554 $ 19,693 $ 5,866 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ASU 2016-02 Transition [Abstract] | |
Schedule of future minimum payments under long-term non-cancelable operating leases | 2020 Within 1 year $ 332,867 After 1 year but within 5 years 95,586 Total lease payments $ 428,453 Less: imputed interest (45,250 ) Total lease obligations 383,203 Less: current obligations (319,697 ) Long-term lease obligations $ 63,506 |
Schedule of other information | For the years ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 268,120 $ 208,949 Right-of-use assets obtained in exchange for operating lease liabilities 383,203 302,396 Remaining lease term for operating leases (years) 1.88 2.88 Weighted average discount rate for operating leases 4.75 % 4.75 % |
Related Parties Transactions (T
Related Parties Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of amount due to related parties | As of December 31, Relationship 2020 2019 Ye Aiyun Shareholder of the Company 142,450 57,446 Total $ 142,450 $ 57,446 |
Schedule of amount due to related parties | As of December 31, Relationship 2020 2019 Zhu Hong Shareholder of the Company 1,059,853 94,149 Zhu Jian Yong Shareholder of the Company 1,731 1,623 Shenzhen Weilian Jin Meng Culture Spreading Limited Zhu Hong is the shareholder 24,800 - Shenzhen Nainiang Wine Limited Zhu Hong is the shareholder 10,768 - Total $ 1,097,152 $ 95,772 |
Schedule of cash advance from related parties | For the years ended Cash advance from related parties 2020 2019 Zhu Jian Yong - 1,623 Shenzhen Nainiang Wine Limited 66,683 - Shenzhen Weilian Jin Meng Culture Spreading Limited 29,282 - Total $ 95,965 $ 1,623 |
Schedule of cash advance to related parties | For the years ended Cash advance to related parties 2020 2019 Zhu Hong 200,876 1,858,057 Ye Aiyun 76,830 - Shenzhen Weilian Jin Meng Culture Spreading Limited 6,204 - Shenzhen Nainiang Wine Limited 56,492 57,446 Total $ 340,402 $ 1,915,503 |
Schedule of cash repayment from related parties | For the years ended Cash repayment from related parties 2020 2019 Zhu Hong 1,093,131 1,505,893 Total $ 1,093,131 $ 1,505,893 |
Schedule of assets purchased on behalf by related parties | For the years ended Assets purchased on behalf by related parties 2020 2019 Zhu Hong - 45,806 Total $ - $ 45,806 |
Schedule of expense paid on behalf by related parties | For the years ended Expense paid on behalf by related parties 2020 2019 Zhu Hong 15,758 360,737 Total $ 15,758 $ 360,737 |
Schedule of advance from customers received on behalf by related parties | For the years ended Advance from customers received on behalf by related parties 2020 2019 Zhu Hong - 498,775 Total $ - $ 498,775 |
Schedule of advance from customers refunded on behalf by related parties | For the years ended Advance from customers refunded on behalf by related parties 2020 2019 Zhu Hong - 557,861 Total $ - $ 557,861 |
Description of Business (Detail
Description of Business (Details) - $ / shares | Feb. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Description of Business (Details) [Line Items] | |||
Common stock, shares authorized | 750,000,000 | 750,000,000 | |
Common stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 | |
Common stock, shares issued | 600,034,500 | 600,034,500 | |
Common stock, shares outstanding | 600,034,500 | 600,034,500 | |
Wei Lian Jin Meng (Hong Kong) Co., Ltd. [Member] | |||
Description of Business (Details) [Line Items] | |||
Ownership percentage | 100.00% | ||
Jin You Wei Meng (Shenzhen) Consulting Co., Ltd. [Member] | |||
Description of Business (Details) [Line Items] | |||
Ownership percentage | 100.00% | ||
Shenzhen Wei Lian Jin Meng Electronic Commerce Limited [Member] | |||
Description of Business (Details) [Line Items] | |||
Ownership percentage | 100.00% | ||
Dongguan Dishi Coffee Limited [Member] | |||
Description of Business (Details) [Line Items] | |||
Ownership percentage | 100.00% | ||
Shenzhen Nainiang Coffee Art Museum Limited [Member] | |||
Description of Business (Details) [Line Items] | |||
Ownership percentage | 100.00% | ||
Subsequent Event [Member] | WLJM Group [Member] | |||
Description of Business (Details) [Line Items] | |||
Ownership percentage | 100.00% | ||
Subsequent Event [Member] | Wei Lian Jin Meng Group Limited [Member] | |||
Description of Business (Details) [Line Items] | |||
Common stock, shares authorized | 600,000,000 | ||
Series A Preferred Stock [Member] | |||
Description of Business (Details) [Line Items] | |||
Preferred Stock, shares authorized | 100,000,000 | 100,000,000 | |
Preferred stock, par value (in Dollars per share) | $ 0.00001 | $ 0.00001 | |
Preferred stock, shares issued | 100,000,000 | 100,000,000 | |
Preferred stock, shares outstanding | 100,000,000 | 100,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Net loss | $ (627,870) | $ (351,546) | |
Net current liability | 1,442,635 | ||
Deficit on equity | (1,035,605) | (349,097) | $ (47,970) |
Impairment loss on intangible assets | 77,264 | ||
Research and development costs | 98,892 | 99,687 | |
Product [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Revenues | 1,218,256 | 2,107,465 | |
Service [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Revenues | $ 66,022 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life | 12 Months Ended |
Dec. 31, 2020 | |
Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life [Line Items] | |
Estimated useful life | 5 years |
Machinery [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life [Line Items] | |
Estimated useful life | 10 years |
Computer equipment and software [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life [Line Items] | |
Estimated useful life | 3 years |
Motor vehicle [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful life [Line Items] | |
Estimated useful life | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of foreign currency translation exchange rates | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of foreign currency translation exchange rates [Abstract] | ||
Year-end RMB exchange rate | 6.53 | 6.96 |
Annual average RMB exchange rate | 6.90 | 6.90 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Inventory [Abstract] | |||
Raw materials | [1] | $ 51,521 | $ 36,849 |
Finished goods | 14,516 | 32,669 | |
Inventory, total | $ 66,037 | $ 69,518 | |
[1] | Raw materials mainly consist of unprocessed coffee beans and packaging materials |
Leasehold Improvement and Equ_3
Leasehold Improvement and Equipment, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 25,559 | $ 24,635 |
Leasehold Improvement and Equ_4
Leasehold Improvement and Equipment, Net (Details) - Schedule of leasehold improvement and equipment, net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvement and equipment, gross | $ 141,007 | $ 129,435 |
Less: accumulated depreciation | (53,673) | (25,003) |
Leasehold improvement and equipment, net | 87,333 | 104,432 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvement and equipment, gross | 64,191 | 60,186 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvement and equipment, gross | 16,653 | 15,614 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvement and equipment, gross | 32,563 | 30,531 |
Computer equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvement and equipment, gross | 20,355 | 16,311 |
Motor vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvement and equipment, gross | $ 7,245 | $ 6,793 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 3,368 | |
Impairment loss on intangible assets | $ 77,264 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of intangible assets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of intangible assets [Abstract] | ||
APP Platform | $ 79,885 | |
Less: accumulated amortization | (3,339) | |
Intangible assets, net | $ 76,546 |
Other Payables and Accruals (De
Other Payables and Accruals (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) |
Payables and Accruals [Abstract] | ||||
Number of customers | 1 | 1 | 1 | 1 |
Others outstanding refundable balance | $ 30,634 | ¥ 200,000 | $ 33,031 | ¥ 230,000 |
Rental expenses | $ 21,865 | ¥ 142,748 |
Other Payables and Accruals (_2
Other Payables and Accruals (Details) - Schedule of other payables and accruals - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of other payables and accruals [Abstract] | |||
Accrued payroll and welfare payable | $ 180,878 | $ 72,808 | |
VAT and other taxes payable | 92,608 | 58,435 | |
Others | [1] | 63,118 | 66,114 |
Other payables and accruals | $ 336,604 | $ 197,357 | |
[1] | As of December 31, 2020 and 2019, others mainly consist of the outstanding refundable balance upon termination of the cooperative agreement with one customer of $30,634 (RMB200,000) and $33,031 (RMB230,000), respectively. In addition, there were payables for rental expenses of $21,865 (RMB142,748) as of December 31, 2020. |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes (Details) [Line Items] | ||
Statutory tax rates | 25.00% | 25.00% |
HONG KONG | ||
Income Taxes (Details) [Line Items] | ||
Income tax rate | 16.50% | |
PRC | ||
Income Taxes (Details) [Line Items] | ||
Income tax rate | 25.00% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income tax expense (Benefits) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of income tax expense (Benefits) [Abstract] | ||
Current tax expense | $ 19,693 | $ 5,866 |
Deferred tax benefits | ||
Income tax expense (benefits) | $ 19,693 | $ 5,866 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciliation of effective tax rates - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of reconciliation of effective tax rates [Abstract] | ||
Loss before tax | $ (608,177) | $ (345,680) |
Tax benefit calculated at statutory tax rate | 25.00% | 25.00% |
Computed expected benefits | $ (152,044) | $ (86,420) |
Tax losses not recognized | 171,737 | 80,554 |
Income tax expense (benefits) | $ 19,693 | $ 5,866 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
ASU 2016-02 Transition [Abstract] | ||
Rent expense | $ 268,120 | $ 208,949 |
Operating leases right-of-use assets | 383,203 | 613,831 |
Current operating lease liabilities | 319,697 | 243,959 |
Non-current operating lease liabilities | $ 63,506 | $ 369,872 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of future minimum payments under long-term non-cancelable operating leases | Dec. 31, 2020USD ($) |
Schedule of future minimum payments under long-term non-cancelable operating leases [Abstract] | |
Within 1 year | $ 332,867 |
After 1 year but within 5 years | 95,586 |
Total lease payments | 428,453 |
Less: imputed interest | (45,250) |
Total lease obligations | 383,203 |
Less: current obligations | (319,697) |
Long-term lease obligations | $ 63,506 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of other information - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating leases | $ 268,120 | $ 208,949 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 383,203 | $ 302,396 |
Remaining lease term for operating leases (years) | 1 year 321 days | 2 years 321 days |
Weighted average discount rate for operating leases | 4.75% | 4.75% |
Related Parties Transactions (D
Related Parties Transactions (Details) - Schedule of amount due from related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Parties Transactions (Details) - Schedule of amount due from related parties [Line Items] | ||
Total | $ 142,450 | $ 57,446 |
Ye Aiyun [Member] | ||
Related Parties Transactions (Details) - Schedule of amount due from related parties [Line Items] | ||
Relationship, description | Shareholder of the Company | |
Total | $ 142,450 | $ 57,446 |
Related Parties Transactions _2
Related Parties Transactions (Details) - Schedule of amount due to related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Total | $ 1,097,152 | $ 95,772 |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Relationship, decription | Shareholder of the Company | |
Total | $ 1,059,853 | 94,149 |
Zhu Jian Yong [Member] | ||
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Relationship, decription | Shareholder of the Company | |
Total | $ 1,731 | 1,623 |
Shenzhen Weilian Jin Meng Culture Spreading Limited [Member] | ||
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Relationship, decription | Zhu Hong is the shareholder | |
Total | $ 24,800 | |
Shenzhen Nainiang Wine Limited [Member] | ||
Related Parties Transactions (Details) - Schedule of amount due to related parties [Line Items] | ||
Relationship, decription | Zhu Hong is the shareholder | |
Total | $ 10,768 |
Related Parties Transactions _3
Related Parties Transactions (Details) - Schedule of cash advance from related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions (Details) - Schedule of cash advance from related parties [Line Items] | ||
Total | $ 95,965 | $ 1,623 |
Zhu Jian Yong [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance from related parties [Line Items] | ||
Total | 1,623 | |
Shenzhen Nainiang Wine Limited [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance from related parties [Line Items] | ||
Total | 66,683 | |
Shenzhen Weilian Jin Meng Culture Spreading Limited [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance from related parties [Line Items] | ||
Total | $ 29,282 |
Related Parties Transactions _4
Related Parties Transactions (Details) - Schedule of cash advance to related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions (Details) - Schedule of cash advance to related parties [Line Items] | ||
Total | $ 340,402 | $ 1,915,503 |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance to related parties [Line Items] | ||
Total | 200,876 | 1,858,057 |
Ye Aiyun [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance to related parties [Line Items] | ||
Total | 76,830 | |
Shenzhen Weilian Jin Meng Culture Spreading Limited [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance to related parties [Line Items] | ||
Total | 6,204 | |
Shenzhen Nainiang Wine Limited [Member] | ||
Related Parties Transactions (Details) - Schedule of cash advance to related parties [Line Items] | ||
Total | $ 56,492 | $ 57,446 |
Related Parties Transactions _5
Related Parties Transactions (Details) - Schedule of cash repayment from related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions (Details) - Schedule of cash repayment from related parties [Line Items] | ||
Total | $ 1,093,131 | $ 1,505,893 |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of cash repayment from related parties [Line Items] | ||
Total | $ 1,093,131 | $ 1,505,893 |
Related Parties Transactions _6
Related Parties Transactions (Details) - Schedule of assets purchased on behalf by related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Parties Transactions (Details) - Schedule of assets purchased on behalf by related parties [Line Items] | ||
Total | $ 45,806 | |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of assets purchased on behalf by related parties [Line Items] | ||
Total | $ 45,806 |
Related Parties Transactions _7
Related Parties Transactions (Details) - Schedule of expense paid on behalf by related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Parties Transactions (Details) - Schedule of expense paid on behalf by related parties [Line Items] | ||
Total | $ 15,758 | $ 360,737 |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of expense paid on behalf by related parties [Line Items] | ||
Total | $ 15,758 | $ 360,737 |
Related Parties Transactions _8
Related Parties Transactions (Details) - Schedule of advance from customers received on behalf by related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions (Details) - Schedule of advance from customers received on behalf by related parties [Line Items] | ||
Total | $ 498,775 | |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of advance from customers received on behalf by related parties [Line Items] | ||
Total | $ 498,775 |
Related Parties Transactions _9
Related Parties Transactions (Details) - Schedule of advance from customers refunded on behalf by related parties - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions (Details) - Schedule of advance from customers refunded on behalf by related parties [Line Items] | ||
Total | $ 557,861 | |
Zhu Hong [Member] | ||
Related Parties Transactions (Details) - Schedule of advance from customers refunded on behalf by related parties [Line Items] | ||
Total | $ 557,861 |
Reserves (Details)
Reserves (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Reserves [Abstract] | |
General reserve, percentage | 10.00% |
Entity registered capital, percentage | 50.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies, description | the US listing with a contract sum of $1,200,000. The outstanding committed contract amount is $120,000. The terms of the agreement are for various milestones stages to be completed within two years through 2021. Future commitments within one year as of December 31, 2020 was $120,000. No future commitments more than one year as of December 31, 2020. |