Cover
Cover - shares | 3 Months Ended | |
Oct. 31, 2019 | Jan. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --07-31 | |
Entity File Number | 000-54520 | |
Entity Registrant Name | XT Energy Group, Inc. | |
Entity Central Index Key | 0001472468 | |
Entity Tax Identification Number | 98-0632932 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | No.1 | |
Entity Address, Address Line Two | Fuqiao Village | |
Entity Address, Address Line Three | Henggouqiao Town | |
Entity Address, City or Town | Xianning | |
Entity Address Country | CN | |
Entity Address, Postal Zip Code | 437012 | |
City Area Code | 86 (400) | |
Local Phone Number | 103-7733 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 531,042,000 | |
Entity Information, Former Legal or Registered Name | Not Applicable |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Current assets | ||
Cash | $ 3,233,401 | $ 3,459,783 |
Restricted cash | 74,859 | 76,698 |
Short-term investment | 425,333 | 435,787 |
Notes receivable | 2,027,354 | 2,064,405 |
Accounts receivable, net | 2,822,277 | 3,928,854 |
Inventories, net | 5,966,635 | 6,839,579 |
Advances to suppliers | 3,415,448 | 4,723,258 |
Prepaid expenses | 903,305 | 1,551,203 |
Other receivables, net | 183,426 | 509,426 |
Other receivables - related parties | 20,779 | 6,537 |
Current assets of discontinued operations | 3,181,397 | 4,441,772 |
Total current assets | 22,254,214 | 28,037,302 |
Other assets | ||
Deposit for property, plant and equipment | 429,019 | |
Property, plant and equipment, net | 15,421,696 | 15,061,856 |
Right-of-use assets | 2,564,136 | |
Intangible assets, net | 7,494,729 | 7,789,979 |
Prepaid expenses - non-current | 166,014 | 192,327 |
Goodwill | 3,667,992 | 3,758,145 |
Other assets of discontinued operations | 9,214,988 | 9,537,179 |
Total other assets | 38,958,574 | 36,339,486 |
Total assets | 61,212,788 | 64,376,788 |
Current liabilities | ||
Accounts payable | 3,448,553 | 3,164,927 |
Accounts payable - related party | 11,413 | 9,554 |
Advance from customers | 15,210,837 | 15,599,402 |
Other payables and accrued liabilities | 1,576,683 | 2,117,660 |
Other payables - related parties and director | 6,912,433 | 6,375,385 |
Lease liabilities - current | 855,634 | |
Income taxes payable | 873,009 | 858,662 |
Current maturities of investment payable | 133,044 | 136,314 |
Current maturities of investment payable - related parties | 110,813 | 204,648 |
Current liabilities of discontinued operations | 1,397,255 | 1,499,012 |
Total current liabilities | 30,529,674 | 29,965,564 |
Other liabilities | ||
Investment payable - related parties | 226,155 | 279,764 |
Lease liabilities - noncurrent | 1,402,076 | |
Total other liabilities | 1,628,231 | 279,764 |
Total liabilities | 32,157,905 | 30,245,328 |
Equity | ||
Preferred stock: $0.001 par value, 100,000,000 shares authorized, none issued and outstanding | ||
Common stock: $0.001 par value, 1,000,000,000 shares authorized, 531,042,000 shares issued and outstanding as of October 31, 2019 and July 31, 2019 | 531,042 | 531,042 |
Additional paid-in capital | 40,680,195 | 40,680,195 |
Subscription receivable | (250,000) | (250,000) |
Statutory reserves | 593,055 | 572,642 |
Accumulated deficit | (12,180,993) | (8,292,847) |
Accumulated other comprehensive loss | (2,318,760) | (1,425,617) |
Total XT Energy Group, Inc. common stockholders' equity | 27,054,539 | 31,815,415 |
Noncontrolling interests | 2,000,344 | 2,316,045 |
Total equity | 29,054,883 | 34,131,460 |
Total liabilities and equity | $ 61,212,788 | $ 64,376,788 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2019 | Jul. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 531,042,000 | 531,042,000 |
Common stock, shares outstanding | 531,042,000 | 531,042,000 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue-products | $ 3,166,836 | $ 19,599,106 |
Revenue-installation of power systems | 389,332 | |
Total revenue | 3,166,836 | 19,988,438 |
Cost of sales-products | 3,773,780 | 15,435,353 |
Cost of sales-installation of power systems | 357,570 | |
Total cost of sales | 3,773,780 | 15,792,923 |
Gross (loss) profit | (606,944) | 4,195,515 |
Operating expenses: | ||
Selling expenses | 223,292 | 113,062 |
General and administrative expenses | 1,875,409 | 1,702,662 |
Research and development expenses | 97,123 | 3,047 |
(Recovery) provision for doubtful accounts | 1,120,131 | (164,887) |
Total operating expenses | 3,315,955 | 1,653,884 |
(Loss) income from operations | (3,922,899) | 2,541,631 |
Other income (expenses) | ||
Other income, net | 19,270 | 30,755 |
Interest income | 2,302 | 9,195 |
Interest expense | (5,953) | (477,228) |
Total other income (expenses), net | 15,619 | (437,278) |
(Loss) income before income taxes | (3,907,280) | 2,104,353 |
Income tax expense | (46,196) | (526,144) |
(Loss) income from continuing operations | (3,953,476) | 1,578,209 |
Net loss from discontinued operations, net of applicable income taxes | (174,762) | |
Net (loss) income | (4,128,238) | 1,578,209 |
Less: Net (loss) income attributable to noncontrolling interests from continuing operations | (243,029) | 202,442 |
Less: Net loss attributable to noncontrolling interests from discontinued operations | (17,476) | |
Net (loss) income attributable to XT Energy Group, Inc. | (3,867,733) | 1,375,767 |
Net (loss) income | (4,128,238) | 1,578,209 |
Foreign currency translation adjustment | (948,339) | (380,986) |
Total comprehensive (loss) income | (5,076,577) | 1,197,223 |
Less: Comprehensive (loss) income attributable to noncontrolling interests | (315,701) | 180,157 |
Comprehensive (loss) income attributable to XT Energy Group, Inc. | $ (4,760,876) | $ 1,017,066 |
(Loss) Earnings per common share - basic and diluted | ||
Continuing operations | $ (0.01) | $ 0 |
Discontinued operations | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 531,042,000 | 591,042,000 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Subscription Receivable [Member] | Accumulated Deficit Statutory Reserves [Member] | Accumulated Deficit Unrestricted [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jul. 31, 2018 | $ 591,042 | $ 9,860,068 | $ (310,000) | $ 108,487 | $ (6,743,399) | $ (932,061) | $ 882,925 | $ 3,457,062 | |
Balance (in shares) at Jul. 31, 2018 | 591,042,000 | ||||||||
Contribution by shareholder | 14,533,003 | 14,533,003 | |||||||
Statutory reserves | 149,543 | (149,543) | |||||||
Foreign currency translation adjustment | (358,701) | (22,285) | (380,986) | ||||||
Net loss attributable to XT Energy Group, Inc. | 1,375,767 | 1,375,767 | |||||||
Net loss attributable to noncontrolling interest | 202,442 | 202,442 | |||||||
Balance at Oct. 31, 2018 | $ 591,042 | 24,393,071 | (310,000) | 258,030 | (5,517,175) | (1,290,762) | 1,063,082 | 19,187,288 | |
Balance (in shares) at Oct. 31, 2018 | 591,042,000 | ||||||||
Balance at Jul. 31, 2019 | $ 531,042 | 40,680,195 | (250,000) | 572,642 | (8,292,847) | (1,425,617) | 2,316,045 | 34,131,460 | |
Balance (in shares) at Jul. 31, 2019 | 531,042,000 | ||||||||
Statutory reserves | 20,413 | (20,413) | |||||||
Foreign currency translation adjustment | (893,143) | (55,196) | (948,339) | ||||||
Net loss attributable to XT Energy Group, Inc. | (3,867,733) | (3,867,733) | |||||||
Net loss attributable to noncontrolling interest | (260,505) | (260,505) | |||||||
Balance at Oct. 31, 2019 | $ 531,042 | $ 40,680,195 | $ (250,000) | $ 593,055 | $ (12,180,993) | $ (2,318,760) | $ 2,000,344 | $ 29,054,883 | |
Balance (in shares) at Oct. 31, 2019 | 531,042,000 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (4,128,238) | $ 1,578,209 |
Net loss from discontinued operations | (174,762) | |
Net loss from continuing operations | (3,953,476) | 1,578,209 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation expense | 282,210 | 216,106 |
Amortization expense | 137,770 | 186,902 |
Amortization of operating lease right-of-use assets | 231,084 | |
Deferred tax expense | (17,369) | |
Allowance for (recovery of) doubtful accounts | 1,120,137 | (164,887) |
Impairment of inventories | 1,434,549 | |
Amortization of debt discount | 5,953 | 123,819 |
Changes in operating assets and liabilities | ||
Notes receivable | (12,469) | 793,842 |
Accounts receivable | (108,062) | 2,433,645 |
Inventories | (733,419) | (510,184) |
Advances to suppliers | 765,295 | (3,687,827) |
Contract assets | 3,391 | |
Prepaid expenses | 57,404 | 149,023 |
Other receivables | 313,701 | (3,875) |
Accounts payable | 359,457 | (1,711,721) |
Accounts payable - related party | 2,088 | |
Advance from customers | (14,352) | 17,323,053 |
Operating lease liabilities | 25,417 | |
Other payables and taxes payable | (451,942) | 153,686 |
Net cash (used in) provided by operating activities from continuing operations | (538,655) | 16,865,813 |
Net cash used in operating activities from discontinued operations | (243,265) | |
Net cash (used in) provided by operating activities | (781,920) | 16,865,813 |
Cash flows from investing activities: | ||
Payment to former shareholders on businesses acquired | (141,742) | (3,701,600) |
Purchases of property, plant and equipment | (995,178) | (478,662) |
Refund of long-term investment | 14,539 | |
Purchase of intangible assets | (29,418) | |
Collection of loan receivable | 1,744,708 | |
Net cash used in investing activities from continuing operations | (1,166,338) | (2,421,015) |
Net cash used in investing activities from discontinued operations | (3,549) | |
Net cash used in investing activities | (1,169,887) | (2,421,015) |
Cash flows from financing activities: | ||
Borrowings from related parties | 550,374 | 779,761 |
Capital contribution from stockholders | 14,533,003 | |
Payments of short-term loan - bank | (455,453) | |
Payments of from third party loan | (174,471) | |
Proceeds from related party loans | 2,035,492 | |
Payments of related party loans | (19,046,392) | |
Net cash provided by (used in) financing activities from continuing operations | 550,374 | (2,328,060) |
Net cash used in financing activities from discontinued operations | (11,502) | |
Net cash provided by (used in) financing activities | 538,872 | (2,328,060) |
Effect of exchange rate change on cash and restricted cash | (126,588) | (480,518) |
Net change in cash and restricted cash | (1,539,523) | 11,636,220 |
Cash and restricted cash - beginning of period | 5,466,380 | 14,245,783 |
Cash and restricted cash - end of period | 3,926,857 | 25,882,003 |
Less: Cash and restricted cash from discontinued operations | (618,597) | |
Cash and restricted cash from continuing operations, end of period | 3,308,260 | 25,882,003 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 49,848 | |
Income tax paid | 11,260 | 271,296 |
Supplemental non-cash information: | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 2,794,579 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows (Reconciliation of cash and restricted cash) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Statement of Cash Flows [Abstract] | ||
Cash | $ 3,233,401 | $ 3,459,783 |
Restricted cash | 74,859 | 76,698 |
Total cash and restricted cash shown in the consolidated statements of cash flows from continuing operations | $ 3,308,260 | $ 3,536,481 |
Nature of business and organiza
Nature of business and organization | 3 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of business and organization | Note 1 – Nature of business and organization XT Energy Group, Inc. (the "Company" or "XT Energy") was incorporated in the State of Delaware on September 2, 2008 as Goa Sweet Tours Ltd. On April 17, 2012, the Company entered into certain share purchase agreements, by and among Luck Sky International Investment Holdings Limited ("Luck Sky"), an entity owned and controlled by Zhou Deng Rong, the former Chief Executive Officer and director of the Company, and certain of the Company's former stockholders who owned, in the aggregate, 7,200,000 ( 90 7,200,000 235,000 On May 30, 2014, the Company purchased 100 Effective October 31, 2016, the Company was reincorporated from Delaware into Nevada as a result of its merger with and into its wholly owned Nevada subsidiary. The Company is engaged in a variety of energy-related businesses through its subsidiaries and controlled entities in China carried out through the Company's variable interest entities ("VIEs"), formerly Sanhe Luck Sky Electrical Engineering Co., Ltd. ("Sanhe Xiangtian") and now Xianning Xiangtian Energy Holding Group Co. Ltd. ("Xianning Xiangtian"), formerly known as Xianning Sanhe Power Equipment Manufacturing Co. Ltd. One of the businesses is in the field of Compressed Air Energy Storage in China and the Company produces electricity generation systems that combine its compressed air storage technology with photovoltaic ("PV") panels to achieve a continuous supply of power under weather conditions that are unfavorable to the generation of electricity from PV panels alone. The sales and installation of power generation systems and PV systems and the sales of PV panels, air compression equipment and heat pump products have been carried out through Xianning Xiangtian. In March 2018, Xianning Xiangtian formed Xiangtian Zhongdian (Hubei) New Energy Co. Ltd. ("Xiangtian Zhongdian"), a joint venture in China, in which Xianning Xiangtian holds a 70% ownership interest with the remaining 30% ownership held by Nanjing Zhongdian Photovoltaic Co. Ltd. Xiangtian Zhongdian is in the business of manufacturing and sales of PV panels. In April 2018, Xianning Xiangtian formed a wholly owned subsidiary, Jingshan Sanhe Xiangtian New Energy Technology Co. Ltd. ("Jingshan Sanhe"), which is engaged in the business of researching, manufacturing and sales of high-grade synthetic fuel products. In June 2018, Xianning Xiangtian acquired Hubei Jinli Hydraulic Co., Ltd. ("Hubei Jinli"), which is engaged in the business of manufacturing and sales of hydraulic parts and electronic components, and acquired Tianjin Jiabaili Petroleum Products Co. Ltd. ("Tianjin Jiabaili"), which is engaged in the business of manufacturing and sales of petroleum products (See Note 3 – Business combinations). In August 2018, Xianning Xiangtian formed a wholly owned subsidiary, Xianning Xiangtian Trade Co. Ltd. ("Xiangtian Trade"), which is engaged in trading general merchandise. In September and October 2018, January 2019 and March 2019, Mr. Jian Zhou, the Company's Chairman and principal shareholder as well as a shareholder of Xianning Xiangtian, and Zhou Deng Rong, the Company's former Chief Executive Officer and director, injected an aggregate of Renminbi ("RMB") 209,260,000 30.8 On November 5, 2018, the Company changed its name to XT Energy Group, Inc. through a merger with and into a newly formed, wholly-owned subsidiary, which subsidiary was formed for purposes of the name change. In December 2018, Xianning Xiangtian acquired 90% of the equity interest in each of Hubei Rongentang Wine Co., Ltd. ("Wine Co."), which is engaged in the business of manufacturing and sales of wine, and Hubei Rongentang Herbal Wine Co., Ltd. ("Herbal Wine Co.," collectively with "Wine Co.," "Rongentang"), which is engaged in the business of manufacturing and sales of herbal wine products (See Note 3 – Business Combinations). On May 24, 2019, the Company's Board of Directors (the "Board"), discussed a plan to pursue the potential sale of all its ownership interest in Herbal Wine Co. and Wine Co. in order to shift its business focus on its energy related business. Therefore, the result of operations was presented as discontinued operations as of and for the three months ended October 31, 2019 unaudited condensed consolidated financial statements. (See Note 4 – Discontinued Operations). On January 6, 2020, the Company entered into an equity transfer agreement with Kairui Tong and Hao Huang (the "Buyers"), which we agreed to sell its 90% 9.6 67.5 54% 36% 5.7 40.0 Reorganization On September 30, 2018, Xiangtian Shenzhen terminated its variable interest entity agreements (the "VIE Agreements") as part of its restructuring to facilitate the shift of business focus between entities controlled by the Company. After the restructuring, the Company's headquarters is located in the city of Xianning, Hubei Province, and Sanhe Xiangtian, the Company's previous headquarters, located in the city of Sanhe, Hebei Province, became the Company's sales office. The VIE Agreements include the following: ● Framework Agreement on Business Cooperation, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; ● Exclusive Management, Consulting and Training and Technical Service Agreement, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; ● Exclusive Option Agreement, dated July 25, 2014, by and among Xiangtian Shenzhen, Sanhe Xiangtian and all the shareholders of Sanhe Xiangtian ("Shanhe Xiangtian Shareholders"); ● Equity Pledge Agreement, dated July 25, 2014, by and among Xiangtian Shenzhen, Sanhe Xiangtian and the Shanhe Xiangtian Shareholders; ● Know-How Sub-License Agreement, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; and ● Powers of Attorney of the Sanhe Xiangtian Shareholders dated July 25, 2014. In connection with the termination of the VIE Agreements, on September 30, 2018, Sanhe Xiangtian transferred its 100% 100% On the same day, the Company, through Xiangtian Shenzhen and Xiangtian HK, entered into a new series of variable interest entity agreements ("New VIE Agreements"), pursuant to which Xianning Xiangtian became the Company's new contractually controlled affiliate. The New VIE Agreements allow the Company to: ● exercise effective control over Xianning Xiangtian; ● receive substantially all of the economic benefits of Xianning Xiangtian; and ● have an exclusive option to purchase all or part of the equity interests in Xianning Xiangtian when and to the extent permitted by the laws of the PRC. The New VIE Agreements include the following: ● Framework Agreement on Business Cooperation, entered between Xiangtian Shenzhen and Xianning Xiangtian. ● Agreement of Exclusive Management, Consulting and Training and Technical Service, entered between Xiangtian Shenzhen and Xianning Xiangtian,. ● Exclusive Option Agreement, entered among Xiangtian HK, Xiangtian Shenzhen, Fei Wang, Zhou Jian and Xianning Xiangtian, ● Equity Pledge Agreement, entered among Xiangtian Shenzhen, Fei Wang, Zhou Jian, and Xianning Xiangtian,. ● Know-How Sub-License Agreement, entered between Xiangtian Shenzhen and Xianning Xiangtian, pursuant to which Xiangtian Shenzhen; and ● Powers of Attorney of the Xianning Xiangtian stockholders. ● Spousal Consent Letters of each of the spouses of the Xianning Xiangtian Shareholders Framework Agreement on Business Cooperation Pursuant to the Framework Agreement on Business Cooperation between Xiangtian Shenzhen and Xianning Xiangtian, the parties agreed to enter into a series of agreements, including Agreement of Exclusive Management, Consulting and Training and Technical Service, Know-How Sub-License Agreement, Equity Pledge Agreement, Exclusive Option Agreement and Power of Attorney. Specifically, Xiangtian Shenzhen will dispatch an operative team to Xianning Xiangtian to assist with Xianning Xiangtian with its planning and managing and regular business operations. The parties agreed to share the cooperation profits as set forth in the New VIE Agreements. The term of cooperation is 10 years Agreement of Exclusive Management, Consulting and Training and Technical Service Pursuant to the Agreement of Exclusive Management, Consulting and Training and Technical Service between Xiangtian Shenzhen and Xianning Xiangtian, Xianning Xiangtian engaged Xiangtian Shenzhen to provide consulting, training, management services and technical support exclusively for a term of 10 years 100% Exclusive Option Agreement Pursuant to the Exclusive Option Agreement among Xiangtian Shenzhen, Xiangtian HK, Xianning Xiangtian and the shareholders holding an aggregate of 100% of Xianning Xiangtian's equity interest ("Xianning Xiangtian Shareholders"), the Xianning Xiangtian Shareholders irrevocably granted Xiangtian Shenzhen and Xiangtian HK an exclusive option to purchase from them, at its discretion, to the extent permitted under the PRC law, all or part of their equity interest in Xianning Xiangtian, and the purchase price will be the lowest price permitted by applicable PRC laws. The timing, method and times of exercise of this option to purchase are within Xiangtian Shenzhen and Xiangtian HK's sole discretion. In addition, each of the Xianning Xiangtian Shareholders agreed to waive their respective preemptive rights when the other shareholder transfers the equity interest of Xianning Xiangtian to Xiangtian Shenzhen or its designated party. The Xianning Xiangtian Shareholders further agreed, among other things, without the prior written consent of Xiangtian Shenzhen and Xiangtian HK, not to transfer, sell or pledge their equity interest of Xianning Xiangtian. Without the prior written consent of Xiangtian Shenzhen and Xiangtian HK, Xianning Xiangtian may not amend its articles of association, change the amount and structure of its registered capital or sell any of its assets or beneficial interest. Equity Pledge Agreement Pursuant to the Equity Pledge Agreement among Xiangtian Shenzhen, Xianning Xiangtian and the Xianning Xiangtian Shareholders, the Xianning Xiangtian Shareholders pledged all of their respective equity interest in Xianning Xiangtian to Xiangtian Shenzhen to guarantee the performance of Xianning Xiangtian's obligations under the New VIE Agreements, other than the Equity Pledge Agreement. Xiangtian Shenzhen will be deemed to have created the encumbrance of the first order in priority on the pledged equity interest. In the event of any breach of the VIE Agreements, other than this Equity Pledge Agreement, or failure to satisfy the guaranteed obligations, Xiangtian Shenzhen will have the right to dispose of the pledged equity interest. The Xianning Xiangtian Shareholders may receive dividends or share profits only with prior consent from Xiangtian Shenzhen, and such dividends and profits will be deposited into a bank account designated by and under supervision of Xiangtian Shenzhen and to be used for repayment of any liability due to any breach of the VIE Agreements by Xianning Xiangtian or the Xianning Xiangtian Shareholders. The agreement will remain effective until the termination of the VIE Agreements, other than this Equity Pledge Agreement. Know-How Sub-License Agreement Pursuant to the Know-How Sub-License Agreement between Xiangtian Shenzhen and Xianning Xiangtian, Xiangtian Shenzhen agreed to grant an exclusive and non-transferable sublicense to use the patents, patent applications and all related trade secrets and technology and improvements on photovoltaic installation and the air energy storage power generation technology ("Technology") but without sublease right in the territory of China, exclusive of the Hong Kong Special Administrative Region, the Macao Special Administrative Region and the Taiwan Region for the purpose of the agreement. Xianning Xiangtian agreed to pay Xiangtian Shenzhen a quarterly royalty fee equal to five percent ( 5 Power of Attorney Pursuant to the Powers of Attorney executed by the Xianning Xiangtian Shareholders, each of the shareholders irrevocably appointed Xiangtian Shenzhen as his attorney-in-fact to exercise any and all rights as a shareholder of Xianning Xiangtian, including, but not limited to, the right to attend shareholders' meetings, to execute shareholders' resolutions, to sell, assign, transfer or pledge any or all of his equity interest of Xianning Xiangtian, to vote as a shareholder for all matters, as well as full power to execute equity transfer agreement as referenced in the Exclusive Option Agreement and to perform under the Exclusive Option Agreement and Equity Pledge Agreement without limitation. Xiangtian Shenzhen is also authorized to transfer, allocate or use any cash dividends and non-cash income in accordance with the respective shareholder's instructions and to exercise all the necessary rights associated with the equity interest at Xiangtian Shenzhen's sole discretion and without the consent of the Xianning Xiangtian Shareholders. The Powers of Attorney will remain effective as long as the Xianning Xiangtian Shareholders remain the shareholders of Xianning Xiangtian. Spousal Consent Letters Pursuant to the Spousal Consent Letters, each of the spouses of the Xianning Xiangtian Shareholders unconditionally and irrevocably agreed to the execution of the Equity Pledge Agreement, Exclusive Option Agreement and Power of Attorney entered by her spouse and the disposal of equity interest of Xianning Xiangtian held by her spouse. Each of the spouses also agreed that she will not assert any rights over the equity interest in Xianning Xiangtian held by and registered in the name of her respective spouse. The Xianning Xiangtian Shareholders' actions to perform, amend or terminate the above-mentioned agreement do not need their spouses' authorization or consent. In addition, in the event that any of the spouses obtains any equity interest in Xianning Xiangtian held by her respective spouse for any reason, such spouse agrees to enter into similar contractual arrangements. All of the Company's operations are through its VIEs located in the PRC. The accompanying unaudited condensed consolidated financial statements reflect the activities of XT Energy and each of the following entities: Schedule of consolidated financial statements Background Ownership Name Background Ownership Xiangtian HK ● A Hong Kong company 100% owned by XT Energy Xiangtian BVI ● A British Virgin Islands company 100% owned by XT Energy Xiangtian Shenzhen ● A PRC limited liability company and deemed a wholly foreign owned enterprise ("WFOE") 100% owned by Xiangtian HK Sanhe Xiangtian ● A PRC limited liability company VIE of Xiangtian Shenzhen prior to September 30, 2018 and became subsidiary of Xianning Xiangtian on September 30, 2018 and thereafter Xianning Xiangtian ● A PRC limited liability company 100% owned by Sanhe Xiangtian prior to September 30, 2018 and became VIE of Xiangtian Shenzhen on September 30, 2018 and thereafter Xiangtian Zhongdian ● A PRC limited liability company 70% owned by Xianning Xiangtian Jingshan Sanhe ● A PRC limited liability company 100% owned by Xianning Xiangtian Hubei Jinli ● A PRC limited liability company 100% owned by Xianning Xiangtian Tianjin Jiabaili ● A PRC limited liability company 100% owned by Xianning Xiangtian Xiangtian Trade ● A PRC limited liability company 100% owned by Xianning Xiangtian Wine Co.* ● A PRC limited liability company 90% owned by Xianning Xiangtian Herbal Wine Co.* ● A PRC limited liability company 90% owned by Xianning Xiangtian * See Note 4 – Discontinued operations for details. * See Note 4 – Discontinued operations for details. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 – Summary of significant accounting policies Summary of significant accounting policies (Textual) Going concern In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from related parties have been utilized to finance the working capital requirements of the Company and acquisitions of businesses. As of October 31, 2019, the Company’s working capital deficit was approximately $ 8.3 3.2 6.9 1.4 The Companys management has considered whether there is a going concern issue due to the Companys recurring losses from operations. Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to cease or curtail its operations. Management is trying to alleviate the going concern risk through the following sources: ● the Company will continuously seek equity financing to support its working capital; ● other available sources of financing from PRC banks and other financial institutions; ● financial support and credit guarantee commitments from the Company’s related parties. Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s unaudited condensed consolidated financial statements are expressed in U.S. dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s financial position, its results of operations and its cash flows, as applicable, have been made. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s July 31, 2019 annual report on Form 10-K filed on October 15, 2019. Principles of consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company or its subsidiary is the primary beneficiary and the VIEs’ subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Use of estimates and assumptions The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the estimated cost used to calculate the percentage of completion recognized in the Company’s revenues, the useful lives of property, plant and equipment, impairment of long-lived assets, right-of-use assets, lease classification and liabilities, allowance for accounts receivable doubtful accounts, allowance for other accounts receivable doubtful accounts, allowance for inventory obsolescence reserve, allowance for deferred tax assets, fair value of the assets and the liabilities of the entities acquired through its business combination, valuation of warranty reserves, and the accrual of potential liabilities. Actual results could differ from these estimates. Variable interest entities On September 30, 2018, Xiangtian Shenzhen terminated the VIE Agreements as part of its restructuring to facilitate the shift of business focus between entities controlled by the Company. After the restructuring, the Company’s headquarter is now located in the city of Xianning, Hubei Province, and Sanhe Xiangtian, the Company’s previous headquarters, located in the city of Sanhe, Hebei Province, has become the Company’s sales office. The VIE Agreements include the following: ● Framework Agreement on Business Cooperation, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; ● Exclusive Management, Consulting and Training and Technical Service Agreement, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; ● Exclusive Option Agreement, dated July 25, 2014, by and among Xiangtian Shenzhen, Sanhe Xiangtian and Shanhe Xiangtian Shareholders; ● Equity Pledge Agreement, dated July 25, 2014, by and among Xiangtian Shenzhen, Sanhe Xiangtian and the Shanhe Xiangtian Shareholders; ● Know-How Sub-License Agreement, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; and ● Powers of Attorney of the Sanhe Xiangtian Shareholders dated July 25, 2014. In connection with the termination of the VIE Agreements, on September 30, 2018, Sanhe Xiangtian transferred its 100% equity interest of Xianning Xiangtian to the Sanhe Xiangtian Shareholders and the Sanhe Xiangtian Shareholders transferred their 100% equity interest of Sanhe Xiangtian to Xianning Xiangtian. On the same day, the Company, through Xiangtian Shenzhen and Xiangtian HK, entered into the New VIE Agreements, pursuant to which Xianning Xiangtian became the Company’s new contractually controlled affiliate. The principal terms of the New VIE Agreements entered into among Xianning Xiangtian and Xiangtian Shenzhen, the primary beneficiary, are described below: ● Framework Agreement on Business Cooperation ● Agreement of Exclusive Management, Consulting and Training and Technical Service 100% ● Exclusive Option Agreement ● Equity Pledge Agreement ● Know-How Sub-License Agreement ● Power of Attorney ● Spousal Consent Letters The Framework Agreement and the Exclusive Management Agreement have initial terms of ten years but each contains a renewal provision that allows Xiangtian Shenzhen to extend the term of such agreements at its sole option by written notice with no limitation as to such extensions. The Know-How Sub-License Agreement is valid for the duration of Xianning Xiangtian’s operation. The other agreements are of unlimited duration. The Company’s total assets and liabilities presented in the accompanying unaudited condensed consolidated financial statements represent substantially all of total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following financial statement amounts and balances of the VIE were included in the accompanying unaudited condensed consolidated financial statements as of October 31, 2019 and July 31, 2019 and for the three months ended October 31, 2019 and 2018, respectively: Schedule of financial statement amounts and balances of the VIE were included in the accompanying unaudited condensed consolidated financial statements October 31, July 31, Current assets $ 16,827,533 $ 22,287,078 Current assets of discontinued operations 3,181,397 4,441,772 Non-current assets 29,725,086 26,783,807 Non-current assets of discontinued operations 9,214,988 9,537,179 Total assets $ 58,949,004 $ 63,049,836 Current liabilities $ 23,447,115 $ 23,617,149 Current liabilities of discontinued operations 1,397,255 1,499,012 Non-current liabilities 1,628,231 279,764 Total liabilities $ 26,472,601 $ 25,395,925 For the For the Revenues $ 3,166,836 $ 19,988,438 Gross (loss) profit $ (606,944 ) $ 4,195,515 (Loss) income from continuing operations $ (3,607,152 ) $ 3,037,062 Net (loss) income from continuing operations attributable to XT Energy Group, Inc. $ (3,396,269 ) $ 1,869,784 Net loss from discontinued operations attributable to XT Energy Group, Inc. (157,286 ) - Net (loss) income attributable to XT Energy Group, Inc. $ (3,553,555 ) $ 1,869,784 Business Combinations The purchase price of an acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values, with the residual of the purchase price recorded as goodwill. The results of operations of the acquired business are included in the Company’s operating results from the date of acquisition. RMB [Member] Cash Cash denominated in RMB with a U.S. dollar equivalent of $ 3,056,683 3,250,535 2,222,144 2,333,681 71,000 500,000 As of October 31, 2019 and July 31, 2019, cash balance of $136,527 and $177,107, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations up to $250,000 per depositor. As of October 31, 2019 and July 31, 2019, cash balance of $28,523 and $26,288, respectively, were maintained at financial institutions in Hong Kong, and all were insured by the Hong Kong Deposit Protection Board up to a limit of HK $500,000 (approximately $64,000). Restricted Cash Restricted cash represents cash held by banks as guarantee deposit collateralizing notes payable pending release back to unrestricted cash upon completion of administrative process. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (230): Restricted Cash. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. Earlier adoption is permitted. The amendments in this update should be applied using a retrospective transition method to each period presented. On August 1, 2018, the Company adopted this guidance on a retrospective basis. Short-term Investment Short-term investment consists of time deposit placed with a bank, which contains a fixed or variable interest rate and has original maturity within one year. Such investment is permitted to be redeemed early without penalties prior to maturity. Given the short-term nature, the carrying value of short-term investment approximates its fair value. The Company does not intend to withdraw early. There was no other-than-temporary impairment of short-term investment for the three months ended October 31, 2019 and 2018. Notes Receivable Notes receivable represents commercial notes due from various customers where the customers’ banks have guaranteed the payments. The notes are noninterest bearing and normally paid within three to six months. The Company has the ability to submit requests for payments to the customer’s banks earlier than the scheduled payments date, but will incur an interest charge and a processing fee. Accounts Receivable, net Accounts receivables, net, are recognized and carried at the original invoiced amount less an allowance for any uncollectible accounts. The Company uses the aging method to estimate the valuation allowance for anticipated uncollectible receivable balances. Under the aging method, bad debts determined by management are based on historical experience as well as the current economic climate and are applied to customers’ balances categorized by the number of months the underlying invoices have remained outstanding. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. Inventories, net Inventories, net, consist of raw materials, work in progress and finished goods and are stated at the lower of cost or net realizable value using the weighted average method. When appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value. Advances to Suppliers Advances to suppliers are cash deposited or advanced to outside vendors or services providers for future inventory purchases or future services. This amount is refundable and bears no interest. For any advances to suppliers determined by management that such advances will not be in receipts of inventories or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its advances to suppliers on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. Contract Assets The differences between the timing of the Company’s revenue recognized (based on costs incurred) and customer billings (based on unconditional rights to receive the consideration in the contractual terms) results in changes to the Company’s contract asset or contract liability positions. Provisions for estimated losses of contract assets on uncompleted contracts are made in the period in which such losses are determined. Prepaid Expenses Prepaid expenses represent advance payments made to vendors for services such as rent, consulting and certification. Other Receivables, net Other receivables, net primarily include advances to employees, receivables from sales of equipment, and other deposits. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. Allowance amounted to $ 291,519 0 Other Receivables – Related Parties Other receivables – related parties present advances to the management of the Company for business development and travel advances. Property, Plant and Equipment, net Property, plant and equipment are stated at cost net of accumulated depreciation and impairment losses. Depreciation is provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Estimated useful lives are as follows, taking into account the assets’ estimated residual value: Plant and Buildings [Member] Machinery equipment [Member] Computer and Office Equipment [Member] Vehicles [Member] Plant Improvement and Fixtures [Member] Schedule of estimated useful lives of property, plant and equipment Classification Estimated Useful Life Estimated Residual Value Plant and buildings 5 20 0 5 Machinery equipment 5 10 0 5 Computer and office equipment 3 10 0 5 Vehicles 5 10 0 5 Plant improvement and fixtures Shorter of lease term or estimated useful live of 5 20 0 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of operations and other comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. Construction-in-progress represents contractor and labor costs, design fees and inspection fees in connection with the construction of the Company’s synthetic fuel raw materials production line, factory plantation, fire safety equipment installation, piping and plant improvement. No depreciation is provided for construction-in-progress until it is completed and placed into service. Intangible Assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: Land Use Rights [Member] Technology Know-hows [Member] Patents, Licenses and Certifications [Member] Software [Member] Schedule of estimated useful lives of intangible assets, net Classification Estimated Useful Life Land use rights 50 years Technology know-hows 10 years Patents, licenses and certifications 3 10 Software 3 years All land in the PRC is owned by the government; however, the government grants “land use rights.” The Company has obtained rights to use various parcels of land for 50 years through the acquisition of Hubei Jinli in June 2018 and through the acquisition of Wine Co. in December 2018. Technology know-hows, including LSC Hand-Held Diesel Pump, CB-39 Motor Oil Pump, 0-16 MPa series hydraulic cylinder, brake cylinder and hydraulic value, and certain special operating and production licenses were acquired through the acquisition of Hubei Jinli and Tianjin Jiabaili in June 2018 and through the acquisition of Herbal Wine Co. and Wine Co. in December 2018 with estimated finite useful lives between 4.5 years to 10 years. Certain PV panel certifications were contributed by the Company’s noncontrolling interest shareholders as capital contribution in March 2018 with an estimated finite useful lives of 10 years. The Company also acquired a safety production license and an accounting software with a finite useful life of 3 years in June 2018 and January 2019, respectively. Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company has the option to access qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantities impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. For the year ended July 31, 2019, an impairment of $ 339,221 no Impairment for Long-Lived Assets Long-lived assets, including plant and equipment and intangible with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the year ended July 31, 2019, an impairment of $ 644,382 no Subscription Receivable Subscription receivable represents unpaid capital contribution from its shareholders. Fair Value Measurement The Company applies the provisions of Accounting Standards Codification (“ASC”) Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities 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 pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of October 31, 2019 and July 31, 2019: Schedule of fair value hierarchy on a recurring basis Financial Assets Carrying Fair Value Measurements at Level 1 Level 2 Level 3 Short-term investment $ 425,333 $ 425,333 $ $ Financial Assets Carrying Fair Value Measurements at Level 1 Level 2 Level 3 Short-term investment $ 435,787 $ 435,787 $ $ The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis on level 3 measurements for the three months ended October 31, 2019 and for the year ended July 31, 2019: Schedule of reconciliation of assets and liabilities measured at fair value on a recurring basis October 31, July 31, Beginning balance $ $ 331,505 Change in estimated contingent liabilities - 243,658 Release from level 3 measurement due to contingent payments has been finalized - (570,322 ) Exchange rate effect - (4,841 ) Ending balance $ - $ - The Company believes the carrying amount reported in the unaudited condensed consolidated balance sheet for cash, restricted cash, notes receivable, accounts receivable, inventories, advance to suppliers, contract assets, prepaid expenses, other receivables, short-term loans, accounts payable, advances from customers, other payables and accrued liabilities, tax payables and short-term investment payable approximate fair value because of the short-term nature of such instruments. The carrying amount of long-term investment payable reported in the unaudited condensed consolidated balance sheets at carrying value, which approximates fair value as the rate of amortization of investment payment discount used were similar to interest rate charged by the bank in the PRC. As of October 31, 2019 and July 31, 2019, long-term investment payable balance was $ 226,155 22,191 279,764 25,999 Leases Effective August 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. The Company recognized approximately $ 2.6 2.3 4.75% and 4.90% based on duration of lease terms. Operating lease ROU assets and lease liabilities are recognized at the adoption date of August 1, 2019 or the commencement date, whichever is earlier, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows. Discontinued operations In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meet the criteria in paragraph 205-20-45-1E to be classified as discontinued operations. When all of the criteria to be classified as discontinued operations are met, including management having the authority to approve the action and committing to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from the balances of the continuing operations. At the same time, the results of discontinued operations, less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. See Note 4 – Discontinued operations. Revenue Recognition On August 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of July 31, 2018. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized over time for the Company’s sale and installation of power generation systems and are recognized at a point in time for the Company’s sale of products. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. Sale and installation of power generation systems Sales of power generation systems in conjunction of system installation are generally recognized based on the Company’s efforts or inputs to the satisfaction of a performance obligation using an input measure method, which was essentially the same as the percentage of completion method prior to August 1, 2018 for its installation project. Therefore, take into account the costs, estimated earnings and revenue to date on contracts not yet completed. Revenue recognized is that percentage of the total contract price that costs expended to date bear to anticipated final total costs, based on current estimates of costs to complete. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor and supplies. Adjustments to the original estimates of the total contract revenue, total contract costs, or the extent of progress toward completion are often required as work progresses. Such changes and refi |
Business combination
Business combination | 3 Months Ended |
Oct. 31, 2019 | |
Business Combinations [Abstract] | |
Business combination | Note 3 – Business combination Business combination (Textual) Acquisition of Wine Co. and Herbal Wine Co. On December 21, 2018, Xianning Xiangtian completed its acquisition (the “Transaction”) of 90% Pursuant to the Agreement, Xianning Xiangtian paid a total cash consideration of RMB67.5 million (approximately $9.7 million) (“Total Consideration”) to be contributed into Wine Co. as registered capital. RMB60 million (approximately $8.7 million) of the Total Consideration was deposited into an escrow account held by Xianning Wenquan Branch of Agricultural Bank of China as escrow agent on December 14, 2018. In addition, Rongentang Shareholders completed the title transfer procedures with the PRC government authorities for all the real property and land use rights possessed by Rongentang to Wine Co. (“Title Transfer”) from the owner of such real property and land use rights, Xianning Rongentang Wine Co., Ltd. (“Xianning Rongentang”), an entity controlled by the Rongentang Shareholders, in February 2019. Rongentang also obtained a three-year royalty-free license from Xianning Rongentang, the owner of the trademark “Rongentang,” to use such trademark, in January 2019. The Company paid the remaining RMB 7.5 1.1 Rongentang Shareholders were responsible for taxes and undisclosed liabilities of Rongentang prior to the closing, including but not limited to, the guarantee liability of Wine Co. under certain loan agreement, pursuant to which a security interest in the real property possessed by Rongentang was granted to secure the repayment of a loan of a party related to Rongentang Shareholders of up to RMB10 million (approximately $1.5 million) to a PRC commercial bank. RMB10 million (approximately $1.5 million) of the funds received by the Rongentang Shareholders in connection with the Transaction was used to pay off this loan on January 18, 2019. Upon closing of the Transaction, Rongentang became majority owned subsidiaries of Xianning Xiangtian and the Company began in business of the production and sales of compound wine and herbal wine products through Rongentang. The Company’s acquisition of Wine Co. and Herbal Wine Co. was accounted for as a business combination in accordance with ASC 805. The Company has allocated the purchase price of Wine Co. and Herbal Wine Co. based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the business combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from independent appraisers. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of Wine Co. and Herbal Wine Co. based on a valuation performed by an independent valuation firm engaged by the Company: Schedule of fair value of identifiable assets acquired and liabilities assumed at the acquisition date Fair Value Cash $ 6,890 Accounts receivable, net 23,612 Inventories, net 1,035,186 Advances to suppliers 25,719 Other receivables 244,279 Plant and equipment, net 4,351,805 Intangible assets, net 2,999,442 Goodwill 1,976,878 Total assets 10,663,811 Advance from customers 13,904 Other payables and accrued liabilities 6,128,289 Other payables – related parties and director 3,653,843 Taxes payable 5,582 Total liabilities 9,801,618 Net assets acquired prior to capital contribution $ 862,193 Total consideration for capital injection 9,699,669 Additional capital contribution by noncontrolling shareholder 215,548 Net assets acquired after capital contribution 10,777,410 Percentage of interest acquired 90.0 % Total net assets acquired $ 9,699,669 Approximately $ 1.9 For the three months ended October 31, 2018, the impact of the acquisition of Wine Co. and Herbal Wine Co. to the unaudited pro forma consolidated statements of operations and comprehensive loss was not material. On May 24, 2019, the Board discussed a plan to pursue the potential sale of all its ownership interest in Herbal Wine Co. and Wine Co. in order to shift its business focus on its energy related business. Therefore, the result of operations was presented as discontinued operations as of and for the three months ended October 31, 2019 unaudited condensed consolidated financial statements. On January 6, 2020, the Company entered into an equity transfer agreement with Kairui Tong and Hao Huang (the "Buyers"), which we agreed to sell its 90 9.6 67.5 54 36 Investment payable Investment payable consists of the following: Schedule of investment payable Name of Payee Relationship Nature October 31, July 31, Guifen Wang Former shareholder of Tianjin Jiabaili Payment for acquisition of Tianjin Jiabaili 133,044 136,314 Total 133,044 136,314 Short-term (133,044 ) (136,314 ) Long-term $ - $ - The maturities schedule is as follows as of October 31, 2019: Schedule of maturities investment payable repayment date Repayment date Amount Due on demand (see Note 15 – Commitments and Contingencies) $ 133,044 Total $ 133,044 Investment payable – related parties Investment payable – related parties consist of the following: Schedule of investment payables related parties Name of Related Party Relationship Nature October 31, July 31, Wenhe Han (see Note 15 – Commitments and Contingencies) Vice general manager of Tianjin Jiabaili Payment for acquisition of Tianjin Jiabaili $ 110,813 $ 113,537 Heping Zhang General manager of Hubei Jinli Payment for acquisition of Hubei Jinli 226,155 370,875 Total 336,968 484,412 Short-term (110,813 ) (204,648 ) Long-term $ 226,155 $ 279,764 The maturities schedule is as follows as of October 31, 2019: Schedule of maturity related party repayment date Repayment date Amount Due on demand $ 110,813 June 2020 7,549 June 2021 248,346 Debt discount (29,740 ) Total $ 336,968 Debt discount Debt discount, net of accumulated amortization, totaled $ 29,740 36,571 5,953 123,819 |
Discontinued operations
Discontinued operations | 3 Months Ended |
Oct. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued operations | Note 4 – Discontinued operations On May 24, 2019, the Company’s Board, discussed a plan to pursue the potential sale of all its ownership interest in Herbal Wine Co. and Wine Co. in order to shift the business focus on its energy related business. The decision and action taken by the Company of disposing Herbal Wine Co. and Wine Co. represent a major shift that will have a major effect on the Company’s operations and financial results, which trigger discontinued operations accounting in accordance with ASC 205-20-45. On January 6, 2020, the Company entered into an equity transfer agreement with Kairui Tong and Hao Huang (the "Buyers"), which we agreed to sell its 90 9.6 67.5 54 36 The fair value of discontinued operations, determined as of October 31, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations, no impairment was indicated as of October 31, 2019 and July 31, 2019. Reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations in the unaudited condensed consolidated balance sheets, including Herbal Wine Co. and Wine Co. as of October 31, 2019. Carrying amounts of major classes of assets included as part of discontinued operations: Schedule of assets and liabilities from discontinued operations October 31, July 31, CURRENT ASSETS: Cash $ 618,597 $ 1,929,899 Accounts receivable, net 522,292 471,889 Inventories 1,904,460 1,785,176 Advances to suppliers 43,130 181,101 Other receivables – related party 11,505 - Other current assets 81,413 73,707 Total current assets of discontinued operations 3,181,397 4,441,772 OTHER ASSETS: Property, plant and equipment, net 4,416,476 4,588,449 Intangible assets, net 2,848,064 2,950,343 Goodwill 1,950,448 1,998,387 Total other assets of discontinued operations 9,214,988 9,537,179 Total assets of the disposal group classified as discontinued operations $ 12,396,385 $ 13,978,951 Carrying amounts of major classes of liabilities included as part of discontinued operations: CURRENT LIABILITIES: Accounts payable $ 18,720 $ 25,266 Advance from customers 1,091,573 1,124,608 Other payables and accrued liabilities 42,524 42,778 Income taxes payable 244,438 306,360 Total current liabilities of discontinued operations 1,397,255 1,499,012 Total liabilities of the disposal group classified as discontinued operations $ 1,397,255 $ 1,499,012 Reconciliation of the amounts of major classes of income and losses from discontinued operations in the unaudited condensed consolidated statements of operations and comprehensive loss, including Herbal Wine Co. and Wine Co. for the three months ended October 31, 2019. Schedule of income and loses from discontinued operations For the 2019 Revenue: Revenue-products $ 73,805 Total revenue 73,805 Cost of sales-products 13,909 Gross profit 59,896 OPERATING EXPENSES: Selling expenses 7,290 General and administrative expenses 283,092 Total operating expenses 290,382 Loss from operations (230,486 ) OTHER INCOME (EXPENSES) Other expenses, net (147 ) Interest income 1,312 Total other income, net 1,165 Loss before income taxes (229,321 ) Income tax benefit 54,559 Net loss from discontinued operations (174,762 ) Less: Net loss attributable to non-controlling interest from discontinued operations (17,476 ) Net loss from discontinued operations attributable to XT Energy Group, Inc. $ (157,286 ) |
Accounts receivable, net
Accounts receivable, net | 3 Months Ended |
Oct. 31, 2019 | |
Receivables [Abstract] | |
Accounts receivable, net | Note 5 – Accounts receivable, net Accounts receivable, net, consist of the following: Schedule of accounts receivable October 31, July 31, Accounts receivable $ 5,828,263 $ 6,096,212 Less: allowance for doubtful accounts (2,483,694 ) (1,695,469 ) Accounts receivable, net 3,344,569 4,400,743 Less: accounts receivable – discontinued operations (522,292 ) (471,889 ) Accounts receivable, net – continuing operations $ 2,822,277 $ 3,928,854 Movement of allowance for doubtful accounts is as follows: Schedule of doubtful accounts Three Months Ended Year Ended Beginning balance $ 1,695,469 $ 1,374,155 Provision for doubtful accounts 828,686 422,684 Wrote off - (118,684 ) Allowance acquired from acquisition - 32,478 Exchange rate effect (40,461 ) (15,164 ) Ending balance 2,483,694 1,695,469 Less: balance – discontinued operations (31,468 ) (32,242 ) Ending balance – continuing operations $ 2,452,226 $ 1,663,227 |
Inventories, net
Inventories, net | 3 Months Ended |
Oct. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 6 – Inventories, net Inventories, net, consist of the following: Schedule of inventories, net October 31, July 31, Raw materials and parts $ 2,117,169 $ 1,607,472 Work in progress 323,748 258,634 Semi-finished goods 383,350 392,772 Finished goods 6,534,852 6,420,298 Total 9,359,119 8,679,176 Less: allowance for inventory reserve (1,488,024 ) (54,421 ) Inventories, net 7,871,095 8,624,755 Less: inventories – discontinued operations (1,904,460 ) (1,785,176 ) Inventories, net – continuing operations $ 5,966,635 $ 6,839,579 Inventories, net (Textual) For the three months ended October 31, 2019 and 2018, an impairment of $ 1,434,549 0 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Note 7 – Property, plant and equipment, net Property, plant and equipment, net (Textual) Property, plant and equipment consist of the following: Schedule of property, plant and equipment October 31, July 31, Plant and buildings $ 12,050,724 $ 11,773,196 Machinery equipment 9,804,282 9,040,901 Computer and office equipment 663,000 668,741 Vehicles 457,252 468,486 Plant improvement 1,211,133 1,146,692 Construction in progress 975,354 1,650,429 Subtotal 25,161,745 24,748,445 Less: accumulated depreciation (5,323,573 ) (5,098,140 ) Property, plant and equipment, net 19,838,172 19,650,305 Less: property, plant and equipment – discontinued operations (4,416,476 ) (4,588,449 ) Property, plant and equipment, net – continuing operations $ 15,421,696 $ 15,061,856 Depreciation expenses from continuing operations for the three months ended October 31, 2019 and 2018 were $ 282,210 216,106 150,921 116,889 131,289 99,217 Depreciation expenses from discontinued operations for the three months ended October 31, 2019 was $ 65,434 46,171 19,263 Construction-in-progress consist of the following as of October 31, 2019: Schedule of construction-in-progress Construction-in-progress description Value Estimated Estimated Additional Cost to Complete Synthetic fuel raw materials production line $ 520,650 January 2020* $ 1,418 Automobile exhaust cleaner construction project 433,368 January 2020* 708,888 Fire safety equipment installation 7,158 April 2020 - Piping 14,178 February 2020 - Total construction-in-progress – continuing operations $ 975,354 $ 710,306 *Completed in January 2020 |
Intangible assets, net
Intangible assets, net | 3 Months Ended |
Oct. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | Note 8 – Intangible assets, net Intangible assets, net, consist of the following: Technology Know-hows [Member] Patents, Licenses and Certifications [Member] Intangible assets, net (Textual) Schedule of intangible assets October 31, July 31, Land use rights $ 7,054,287 $ 7,227,670 Technology know-hows 1,798,101 1,812,147 Patents, licenses and certifications 2,350,655 2,408,430 Software 7,272 7,451 Less: accumulated amortization (867,522 ) (715,376 ) Intangible assets, net 10,342,793 10,740,322 Less: intangible assets – discontinued operations (2,848,064 ) (2,950,343 ) Intangible assets, net – continuing operations $ 7,494,729 $ 7,789,979 Amortization expenses from continuing operations for the three months ended October 31, 2019 and 2018 amounted to $ 137,770 186,902 Amortization expenses from discontinued operations for the three months ended October 31, 2019 amounted to $ 31,495 Based on the finite-lived intangible assets as of October 31, 2019, the expected amortization expenses from continuing operations are estimated as follows: Schedule of amortization expenses estimated Twelve Months Ending October 31, Estimated 2020 $ 677,159 2021 675,149 2022 673,803 2023 672,576 2024 671,597 Thereafter 6,972,509 Total 10,342,793 Less: intangible assets – discontinued operations (2,848,064 ) Total intangible assets, net – continuing operations $ 7,494,729 |
Goodwill
Goodwill | 3 Months Ended |
Oct. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 9 – Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows : Schedule of carrying amount of goodwill Hubei Jinli [Member] Tianjin Jiabaili [Member] Wine Co. and Herbal Wine Co [Member] Total Reportable Segment [Member] Hubei Jinli Tianjin Jiabaili Wine Co. Total Balance as of July 31, 2018 $ 3,793,245 $ 339,898 $ - $ 4,133,143 Goodwill acquired through acquisitions - - 1,976,878 1,976,878 Goodwill impairment - (339,221 ) - (339,221 ) Foreign currency translation adjustment (35,100 ) (677 ) 21,509 (14,268 ) Balance as of July 31, 2019 3,758,145 - 1,998,387 5,756,532 Balance as of July 31, 2019 3,758,145 - 1,998,387 5,756,532 Foreign currency translation adjustment (90,153 ) - (47,939 ) (138,092 ) Balance as of October 31, 2019 3,667,992 - 1,950,448 5,618,440 Less: goodwill – discontinued operations - - (1,950,448 ) (1,950,448 ) Goodwill – continuing operations $ 3,667,992 $ - $ - $ 3,667,992 |
Leases
Leases | 3 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 10 – Leases Leases (Textual) The Company determines if a contract contains a lease at inception. US GAAP requires that the Company’s leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain and failure to exercise such option which result in an economic penalty. All of the Company’s real estate leases are classified as operating leases. The Company has several production plant and equipment lease agreements, and factory and dormitory lease agreements with lease terms ranging from two to seven years. Upon adoption of ASU 2016-02, the Company recognized approximately $ 2.6 2.3 4.75 4.90 3.15 years The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases generally do not contain options to extend at the time of expiration. For the three months ended October 31, 2019 and 2018, rent expense amounted to approximately $ 327,000 82,000 The maturity of the Company’s lease obligations for the next five years and thereafter is presented below: Schedule of maturity of lease obligations Twelve Months Ending October 31, Operating Lease Amount 2020 $ 936,167 2021 1,026,054 2022 424,786 2023 425 Thereafter 1,276 Total lease payments 2,388,708 Less: Interest (130,998 ) Present value of lease liabilities $ 2,257,710 |
Related party balances and tran
Related party balances and transactions | 3 Months Ended |
Oct. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | Note 11 – Related party balances and transactions Leases with related parties Sanhe Xiangtian leases its principal office, factory and dormitory from LuckSky Holding (Group) Co. Ltd. (“LuckSky Group”) in Sanhe City, Hebei Province, PRC. LuckSky Group is owned by Zhou Deng Rong, the Company's former Chief Executive Officer, and Zhou Jian, the Company's Chairman. The space in the office, factory and dormitory being leased are 1,296, 5,160 and 1,200 square meters, respectively. The office and factory space are leased for a rent of $105,053 (RMB 697,248) per year and the dormitory is leased for a rent of $19,527 (RMB 129,600) per year. The leases expire on July 31, 2024 and are subject to renewal with two-month advance written notice. This lease was terminated in April 2019. For the three months ended October 31, 2019 and 2018, rent expense for the lease with Lucksky Group was $0 and $30,054, respectively. In June 2018, Sanhe Xiangtian leased another office in Sanhe City from Sanhe Dong Yi Glass Machine Company Ltd ("Sanhe Dong Yi") which is owned by Zhou Deng Rong with the lease term expired on June 14, 2019 for a rent of approximately $7,000 (RMB 48,000) per year. 1,701 1,745 Related party balances a. Other receivables – related parties: Lei su [Member] Tianyu Ma [Member] Heping Zhang [Member] Deng Hua Zhou [Member] Schedule of related party other receivable Relationship Nature Name of Related Party Relationship Nature October 31, July 31, Lei Su Legal representative of Tianjin Jiabaili Employee advances $ - $ 2,905 Tianyu Ma General manager of Tianjin Jiabaili Employee advances 10,146 - Heping Zhang General Manager of Hubei Jinli Employee advances 7,089 - Deng Hua Zhou Chief Executive Officer Employee advances 3,544 3,632 Total $ 20,779 $ 6,537 b. Accounts payable – related parties: Xianning Baizhuang Tea Industry Co., Ltd. [Member] Schedule of related party accounts payable Relationship Nature Name of Related Party Relationship Nature October 31, July 31, Xianning Baizhuang Tea Industry Co., Ltd. Bin Zhou is the CEO of the company Purchase of materials $ 11,413 $ 9,554 Total $ 11,413 $ 9,554 c. Other payables – related parties and director: Luck Sky International Investment Holdings Ltd. [Member] Lucksky Group [Member] Sanhe Dong Yi [Member] Hubei Henghao Real Estate Development Co., Ltd. [Member] Zhou Deng Rong [Member] Jian Zhou [Member] Zhimin Feng [Member] Heping Zhang [Member] Schedule of related parties other payables Relationship Nature Name of Related Party Relationship Nature October 31, July 31, Luck Sky International Investment Holdings Ltd. Owned by Zhou Deng Rong, former Chief Executive Officer and director Payment for U.S. professional fee $ 625,441 $ 593,941 Lucksky Group Owned by Zhou Deng Rong, former Chief Executive Officer and director, and Zhou Jian, Chairman Lease payable 615,450 600,549 Sanhe Dong Yi Owned by Zhou Deng Rong, former Chief Executive Officer and director Lease payable 2,552 872 Hubei Henghao Real Estate Development Co., Ltd. Bin Zhou, son of Zhou Deng Hua, is the executive director and general manager Interest payable 476,737 488,455 Zhou Deng Rong Former Chief Executive Officer and director Payment for U.S. professional fee 2,748,260 2,748,259 Jian Zhou Chairman Advances for operational purpose 2,401,884 1,900,164 Zhimin Feng Legal representative of Jingshan Sanhe Advances for operational purpose 3,144 3,222 Heping Zhang General Manager of Hubei Jinli Payment for acquisition of Hubei Jinli 38,965 39,923 Total $ 6,912,433 $ 6,375,385 d. Investment payables – related parties (See Note 3) |
Significant customer, former re
Significant customer, former related party | 3 Months Ended |
Oct. 31, 2019 | |
Significant Customer Former Related Party | |
Significant customer, former related party | Note 12 – Significant customer, former related party Prior to April 10, 2014, Zhou Deng Rong, the Company's former Chief Executive Officer and director, owned 70 30 70 70 30 During the three months ended October 31, 2019 and 2018, the Company entered into a series of sales contracts with Xianning Lucksky. These contracts represented approximately $ 2,000 1,011,000 On July 27, 2016, Xianning Xiangtian entered into a rental agreement with Xianning Lucksky to lease 4,628 83,132 555,360 the Company terminated the lease early in February 2018 when the Company through Xiangtian Zhongdian signed another lease agreement which expired on February 5, 2019 with a rent of approximately $25,000 (RMB 168,922) 5,671 6,250 On February 1, 2018, Xianning Xiangtian entered into a lease with Xianning Lucksky for 4,628 25,000 168,922 5,986 0 On July 27, 2018, Xianning Xiangtian entered into a lease with Xianning Lucksky for a space of 3,128 17,000 114,172 from August 1, 2018 to July 31, 2020 and is subject to renewal with a one-month advance written notice. 4,046 3,464 |
Employee benefits government pl
Employee benefits government plan | 3 Months Ended |
Oct. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee benefits government plan | Note 13 – Employee benefits government plan The Company participates in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. PRC labor regulations require the Company to pay to the local labor bureau a monthly contribution calculated at a stated contribution rate based on the basic monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution. As of October 31, 2019 and July 31, 2019, the outstanding amount due to the local labor bureau was $ 201,094 199,500 |
Income taxes
Income taxes | 3 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 14 – Income taxes Income Taxes (Textual) United States [Member] Hong Kong [Member] PRC [Member] Income tax United States Under the provisions of the “Tax Cuts and Jobs Act” (the “Act”), the U.S. corporate tax rate is enacted at 21 British Virgin Islands Xiangtian BVI is incorporated in the British Virgin Islands and is not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong Xiangtian HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5 PRC The Company’s PRC subsidiaries and VIEs and their controlled entities are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC, Chinese enterprises are subject to income tax at a rate of 25 Significant components of the income tax (benefit) expense consisted of the following for the three months ended October 31: Schedule of components of the income tax expense 2019 2018 Current $ (8,363 ) $ 543,513 Deferred - (17,369 ) Provision for income tax (income tax benefit) (8,363 ) 526,144 Less: income tax benefit – discontinued operations (54,559 ) - Provision for income tax – continuing operations $ 46,196 $ 526,144 Significant components of the continuing operations of the Company’s deferred tax assets as of October 31, 2019 and July 31, 2019 are approximately as follows: Schedule continuing operations of deferred tax assets October 31, 2019 July 31, 2019 Deferred tax assets: Net operating loss carry forwards $ 2,357,800 $ 1,967,400 Accounts receivable allowance 613,100 415,800 Inventory allowance 372,000 13,600 Deposit for investment allowance 77,600 79,500 Accrued liabilities 70,300 72,000 Warranty and other 15,900 16,300 Deferred tax assets before valuation allowance 3,506,700 2,564,600 Less: valuation allowance (3,506,700 ) (2,564,600 ) Net deferred tax assets $ - $ - As of October 31, 2019, the Company had U.S. federal Net Operating Losses ("NOLs") of approximately $5,404,000 that expire beginning in 2029 to 2038 with deferred tax assets of approximately $1,135,000 the Company had approximately $30,000 of NOLs related to its Hong Kong holding companies that can be carried forward indefinitely with deferred tax assets of approximately $5,000. the Company had approximately $4,872,000 of NOLs related to its PRC subsidiaries and VIEs that expire in years 2019 through 2023 with deferred tax assets of approximately $1,218,000. Significant components of the discontinued operations of the Company’s deferred tax assets as of October 31, 2019 and July 31, 2019 are approximately as follows: Schedule of discontinued operations deferred tax assets October 31, 2019 July 31, 2019 Deferred tax assets: Accounts receivable allowance $ 7,900 $ 8,100 Less: valuation allowance (7,900 ) (8,100 ) Net deferred tax assets $ - $ - The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carry forward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. If applicable, interest costs related to the unrecognized tax benefits are required to be calculated and would be classified as “Other Income (Expense)” in the statement of operations. Penalties would be recognized as a component of “General and Administrative Expenses” in the statement of operations. The Company stayed current with its July 31, 2019 tax return filing with the extended due date of May 15, 2020, a six month extension from November 15, 2019. No interest or penalty on unpaid tax was recorded during both the three months ended October 31, 2019 and 2018. As of October 31, 2019 and July 31, 2019, no liability for unrecognized tax benefits was required to be reported. The Company does not expect any significant changes in its unrecognized tax benefits in the next quarter. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 15 – Commitments and contingencies Commitments and Contingencies (Textual) Contingencies Contract dispute – Sanhe Xiangtian vs. Shandong Taidai Sanhe Xiangtian is involved in a litigation with Shandong Taidai Photovoltaic Technology Co., Ltd. (“Shandong Taidai”) for contractual dispute. Sanhe Xiangtian filed a complaint on January 24, 2018 with the Sanhe People’s Court and claimed damages of RMB 1,000,000 149,245 15,826,000 2.3 23,000 $3,000 Shandong Taidai filed a lawsuit against Sanhe Xiangtian with Dongying City Intermediate People’s Court of Shandong Province on November 29, 2018 regarding the same project and claimed unpaid work of RMB 4,089,150 $610,284 2,025,139 302,242 4,089,150 610,284 848,655 126,657 Acquisition payment dispute – Sanhe Xiangtian vs. Wehhan Han and Guifen Wang On March 19, 2019, Wenhe Han and Guifen Wang, former shareholders of Tianjin Jiabaili (collectively known as the “Plaintiffs”), filed a lawsuit against Xianning Xiangtian in People’s Court of Jizhou District, Tianjin City for a dispute over the equity transfer of Tianjin Jiabaili between Plaintiffs and Xianning Xiangtian. The Plaintiffs claimed damage amounting to RMB 2,000,000 0.3 1,720,000 0.3 3,720,000 0.6 On April 15, 2019, Xianning Xiangtian filed a lawsuit against Wenhan Han and Guifen Wang, former shareholders of Tianjin Jiabaili, for the same dispute over the equity transfer of Tianjin Jiabaili in the People’s Court of Jizhou District, Tianjin City. Xianning Xiangtian claimed damage amounting to RMB 2,000,000 0.3 5,080,000 0.8 6% 7,080,000 1.0 Other legal matters From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The majority of these claims and proceedings related to or arise from, being guarantor of a third party and employment contract dispute. The Company accrues costs related to these matters when they become probable and as a result the amount of loss can be reasonably estimated. In determining whether a loss from a claim is probable, and if it is possible to estimate the potential litigation losses, in those situations, the Company discloses an estimate of the probable losses or a range of possible losses, if such estimates can be made. As of October 31, 2019, the type of complaints and disputes and their potential claims that the Company does not accrue costs for potential litigation losses as the probability of repaying these claims are remote. These potential claims are summarized as follows: Labor dispute – Qiao Lijuan vs. Tianjin JiaBaiLi Regarding the labor dispute lawsuit between Qiao Lijuan and Tianjin JiaBaiLi Petroleum Products Co., Ltd. (Hereinafter referred to as “JiaBaiLi”), on July 23, 2019, Qiao Lijuan sued JiaBaiLi (Defendant A) and the 1st Sales Company of JiaBaiLi (Defendant B) before Jizhou Court claiming Defendant B to pay RMB 7,000 (approximately $1,000) for salary, Defendant A to bear the joint and several liability and both Defendant A and B to bear the litigation fees. On October 23, 2019, Jizhou Court reached a verdict that Defendant A must pay Qiao Lijuan salary of RMB 11,000 (approximately $1,600). The Company does not believe the litigation will have a material impact on its current operations and financial statements. Negotiable instruments dispute – Kelin Environmental Protection Equipment, Inc. Regarding the negotiable instruments dispute of Kelin Environmental Protection Equipment, Inc. (hereinafter referred to as “Kelin”), as Kelin had not paid the draft due and expired, it was pursued by the negotiable instruments holders. Xiangtian Zhongdian, as the one of the endorsers, are involved in 14 lawsuits currently and the amount is RMB 4.0 0.6 Negotiable instruments [Member] Labor [Member] Schedule of accrue costs for potential litigation losses Total Dispute matter Claim amount 1) Negotiable instruments $ 567,110 2) Labor 992 Total $ 568,102 Shimen Government Inquiry On June 10, 2019, Xianning Xiangtian received an inquiry from Shimen County Market Supervision Bureau (the "Bureau") with respect to a formal investigation it initiated against Xianning Xiangtian on May 10, 2019. The Bureau stated it is investigating that Xianning Xiangtian was selling its shares to the public in anticipation of a Nasdaq listing in the near future as part of a multi-level marketing scheme. On June 14, 2019, Xianning Xiangtian issued a Letter of Statement in response to the inquiry and stated Xianning Xiangtian never issued any shares to the unspecified public since its incorporation and that all of the Company's shares are registered with the Company's Transfer Agent. Following Xianning Xiangtian’s delivery of its Letter of Statement, it has not received any further inquiries from the Bureau. The Company believes that these allegations are false and without merit, and intends to vigorously defend against them. Variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the New VIE Agreements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of Xiangtian Shenzhen and the VIE are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the New VIE Agreements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the New VIE Agreements is remote based on current facts and circumstances. |
Concentrations
Concentrations | 3 Months Ended |
Oct. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 16 – Concentrations Concentrations (Textual Customer concentration risk For the three months ended October 31, 2019, three customers accounted for 25.1% 17.9% 14.8% 43.3% 18.1% 14.0% 11.1% As of October 31, 2019, four customers accounted for 17.9% 13.4% 13.3% 10.3% 20.8% 17.7% 17.3% 12.9% Vendor concentration risk For the three months ended October 31, 2019, two vendors accounted for 13.8% 12.2% 42.5% 25.8% As of October 31, 2019, two vendors accounted for 44.6% 12.3% 49.8% 13.7% 11.4% |
Segment reporting
Segment reporting | 3 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting | Note 17 – Segment reporting The Company evaluates performance and determines resource allocations based on a number of factors, the primary measurement being income from operations of the Company’s nine reportable divisions in the PRC: Sanhe Xiangtian, Xianning Xiangtian, Xiangtian Zhongdian, Jingshan Sanhe, Hubei Jinli, Tianjin Jiabaili, Xiangtian Trade, Wine Co., and Herbal Wine Co. Tianjin Jiabaili did not have any operations as of October 31, 2019. These reportable divisions are consistent with the way the Company manages its business and each division operates under separate management groups and produces discrete financial information. The accounting principles applied at the operating division level in determining income (loss) from operations is generally the same as those applied at the unaudited condensed consolidated financial statement level. The following represents results of division operations for the three months ended October 31, 2019 and 2018: Schedule of represents results of division operations 2019 2018 Revenues: Sanhe Xiangtian $ 1,523 $ 1,920,878 Xianning Xiangtian 62,801 4,233,629 Jingshan Sanhe 39,608 3,576,328 Xiangtian Zhongdian 1,697,349 9,101,868 Hubei Jinli 1,364,077 1,155,735 Xiangtian Trade 1,478 - Wine Co. 3,152 - Herbal Wine Co. 70,653 - Consolidated revenues 3,240,641 19,988,438 Less: revenues – discontinued operations (73,805 ) - Revenues – continuing operations $ 3,166,836 $ 19,988,438 2019 2018 Gross profit: Sanhe Xiangtian $ 1,523 $ 707,409 Xianning Xiangtian (949,437 ) 853,785 Jingshan Sanhe 4,138 1,187,491 Xiangtian Zhongdian (447,356 ) 908,334 Hubei Jinli 784,155 538,496 Xiangtian Trade 33 - Wine Co. 392 - Herbal Wine Co. 59,504 - Consolidated gross profit (547,048 ) 4,195,515 Less: gross profit – discontinued operations (59,896 ) - Gross profit – continuing operations $ (606,944 ) $ 4,195,515 2019 2018 (Loss) income from operations: Sanhe Xiangtian $ (1,020,922 ) $ 669,762 Xianning Xiangtian (1,305,638 ) 622,068 Jingshan Sanhe (712,977 ) 1,012,957 Xiangtian Zhongdian (819,022 ) 801,752 Hubei Jinli 292,641 107,436 Tianjin Jiabaili (27,848 ) (176,912 ) Xiangtian Trade (13,380 ) - Wine Co. (240,594 ) - Herbal Wine Co. 10,108 - All four holding entities (315,753 ) (495,432 ) Consolidated income (loss) from operations (4,153,385 ) 2,541,631 Less: loss from operations – discontinued operations 230,486 - (Loss) income from operations – continuing operations $ (3,922,899 ) $ 2,541,631 2019 2018 Net (loss) income attributable to controlling interest: Sanhe Xiangtian $ (973,857 ) $ 547,514 Xianning Xiangtian (1,308,464 ) 209,416 Jingshan Sanhe (712,689 ) 757,356 Xiangtian Zhongdian (567,067 ) 472,364 Hubei Jinli 204,133 63,268 Tianjin Jiabaili (27,752 ) (180,132 ) Xiangtian Trade (10,567 ) - Wine Co. (164,727 ) - Herbal Wine Co. 7,441 - All four holding entities (314,184 ) (494,019 ) Consolidated net (loss) income attributable to controlling interest (3,867,733 ) 1,375,767 Less: net loss attributable to controlling interest - discontinued operations 157,286 - Net (loss) income attributable to controlling interest - continuing operations $ (3,710,447 ) $ 1,375,767 2019 2018 Depreciation and amortization expenses: Sanhe Xiangtian $ 31,066 $ 43,063 Xianning Xiangtian 570 57 Jingshan Sanhe 81,888 8,705 Xiangtian Zhongdian 68,529 74,890 Hubei Jinli 232,416 221,785 Tianjin Jiabaili 5,218 54,508 Xiangtian Trade 293 - Wine Co. 82,138 - Herbal Wine Co. 14,790 - Consolidated depreciation and amortization expenses 516,908 403,008 Less: depreciation and amortization expenses - discontinued operations (96,928 ) - Depreciation and amortization expenses - continuing operations $ 419,980 $ 403,008 2019 2018 Interest expense: Sanhe Xiangtian $ - $ 6,041 Xianning Xiangtian 5,953 413,105 Hubei Jinli - 58,082 Consolidated interest expense $ 5,953 $ 477,228 2019 2018 Capital expenditures: Sanhe Xiangtian $ - $ 47,031 Xianning Xiangtian 2,340 1,265 Jingshan Sanhe 1,014,504 265,323 Xiangtian Zhongdian - 8,040 Hubei Jinli 7,752 144,643 Tianjin Jiabaili - 12,360 Wine Co. 3,549 - Consolidated capital expenditures 1,028,145 478,662 Less: capital expenditures - discontinued operations (3,549 ) - Capital expenditures - continuing operations $ 1,024,596 $ 478,662 Total assets of each division as of October 31, 2019 and July 31, 2019 consisted of the following: October 31, July 31, Total assets: Sanhe Xiangtian $ 3,692,238 $ 4,889,875 Xianning Xiangtian 7,039,892 7,969,624 Jingshan Sanhe 9,050,508 6,969,849 Xiangtian Zhongdian 6,450,049 7,731,512 Hubei Jinli 21,439,029 21,635,194 Tianjin Jiabaili 321,704 302,518 Xiangtian Trade 454,822 483,168 Wine Co. 9,468,884 11,005,886 Herbal Wine Co. 2,927,501 2,973,064 All four holding entities 368,161 416,098 Consolidated assets 61,212,788 64,376,788 Less: assets - discontinued operations (12,396,385 ) (13,978,950 ) Total assets - continuing operations $ 48,816,403 $ 50,397,838 |
Subsequent events
Subsequent events | 3 Months Ended |
Oct. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 18 – Subsequent events On January 6, 2020, the Company entered into an equity transfer agreement with Kairui Tong and Hao Huang (the "Buyers"), which the Company agreed to sell its 90 9.6 67.5 54 36 5.7 40.0 On December 16, 2019, the board of directors of Xiangtian Zhongdian made a decision to suspend its current operations temporarily and will further make determination on its future sales plan of PV Panels in Xiangtian Zhongdian. In addition, the Company will also be leasing its production equipment while the operations were paused. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Going concern | Going concern In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from related parties have been utilized to finance the working capital requirements of the Company and acquisitions of businesses. As of October 31, 2019, the Company’s working capital deficit was approximately $ 8.3 3.2 6.9 1.4 The Companys management has considered whether there is a going concern issue due to the Companys recurring losses from operations. Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to cease or curtail its operations. Management is trying to alleviate the going concern risk through the following sources: ● the Company will continuously seek equity financing to support its working capital; ● other available sources of financing from PRC banks and other financial institutions; ● financial support and credit guarantee commitments from the Company’s related parties. |
Basis of presentation | Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s unaudited condensed consolidated financial statements are expressed in U.S. dollars. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s financial position, its results of operations and its cash flows, as applicable, have been made. Interim results are not necessarily indicative of results to be expected for the full year. The information included in this Form 10-Q should be read in conjunction with information included in the Company’s July 31, 2019 annual report on Form 10-K filed on October 15, 2019. |
Principles of consolidation | Principles of consolidation The unaudited condensed consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs for which the Company or its subsidiary is the primary beneficiary and the VIEs’ subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the estimated cost used to calculate the percentage of completion recognized in the Company’s revenues, the useful lives of property, plant and equipment, impairment of long-lived assets, right-of-use assets, lease classification and liabilities, allowance for accounts receivable doubtful accounts, allowance for other accounts receivable doubtful accounts, allowance for inventory obsolescence reserve, allowance for deferred tax assets, fair value of the assets and the liabilities of the entities acquired through its business combination, valuation of warranty reserves, and the accrual of potential liabilities. Actual results could differ from these estimates. |
Variable interest entities | Variable interest entities On September 30, 2018, Xiangtian Shenzhen terminated the VIE Agreements as part of its restructuring to facilitate the shift of business focus between entities controlled by the Company. After the restructuring, the Company’s headquarter is now located in the city of Xianning, Hubei Province, and Sanhe Xiangtian, the Company’s previous headquarters, located in the city of Sanhe, Hebei Province, has become the Company’s sales office. The VIE Agreements include the following: ● Framework Agreement on Business Cooperation, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; ● Exclusive Management, Consulting and Training and Technical Service Agreement, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; ● Exclusive Option Agreement, dated July 25, 2014, by and among Xiangtian Shenzhen, Sanhe Xiangtian and Shanhe Xiangtian Shareholders; ● Equity Pledge Agreement, dated July 25, 2014, by and among Xiangtian Shenzhen, Sanhe Xiangtian and the Shanhe Xiangtian Shareholders; ● Know-How Sub-License Agreement, dated July 25, 2014, by and between Xiangtian Shenzhen and Sanhe Xiangtian; and ● Powers of Attorney of the Sanhe Xiangtian Shareholders dated July 25, 2014. In connection with the termination of the VIE Agreements, on September 30, 2018, Sanhe Xiangtian transferred its 100% equity interest of Xianning Xiangtian to the Sanhe Xiangtian Shareholders and the Sanhe Xiangtian Shareholders transferred their 100% equity interest of Sanhe Xiangtian to Xianning Xiangtian. On the same day, the Company, through Xiangtian Shenzhen and Xiangtian HK, entered into the New VIE Agreements, pursuant to which Xianning Xiangtian became the Company’s new contractually controlled affiliate. The principal terms of the New VIE Agreements entered into among Xianning Xiangtian and Xiangtian Shenzhen, the primary beneficiary, are described below: ● Framework Agreement on Business Cooperation ● Agreement of Exclusive Management, Consulting and Training and Technical Service 100% ● Exclusive Option Agreement ● Equity Pledge Agreement ● Know-How Sub-License Agreement ● Power of Attorney ● Spousal Consent Letters The Framework Agreement and the Exclusive Management Agreement have initial terms of ten years but each contains a renewal provision that allows Xiangtian Shenzhen to extend the term of such agreements at its sole option by written notice with no limitation as to such extensions. The Know-How Sub-License Agreement is valid for the duration of Xianning Xiangtian’s operation. The other agreements are of unlimited duration. The Company’s total assets and liabilities presented in the accompanying unaudited condensed consolidated financial statements represent substantially all of total assets and liabilities of the VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following financial statement amounts and balances of the VIE were included in the accompanying unaudited condensed consolidated financial statements as of October 31, 2019 and July 31, 2019 and for the three months ended October 31, 2019 and 2018, respectively: Schedule of financial statement amounts and balances of the VIE were included in the accompanying unaudited condensed consolidated financial statements October 31, July 31, Current assets $ 16,827,533 $ 22,287,078 Current assets of discontinued operations 3,181,397 4,441,772 Non-current assets 29,725,086 26,783,807 Non-current assets of discontinued operations 9,214,988 9,537,179 Total assets $ 58,949,004 $ 63,049,836 Current liabilities $ 23,447,115 $ 23,617,149 Current liabilities of discontinued operations 1,397,255 1,499,012 Non-current liabilities 1,628,231 279,764 Total liabilities $ 26,472,601 $ 25,395,925 For the For the Revenues $ 3,166,836 $ 19,988,438 Gross (loss) profit $ (606,944 ) $ 4,195,515 (Loss) income from continuing operations $ (3,607,152 ) $ 3,037,062 Net (loss) income from continuing operations attributable to XT Energy Group, Inc. $ (3,396,269 ) $ 1,869,784 Net loss from discontinued operations attributable to XT Energy Group, Inc. (157,286 ) - Net (loss) income attributable to XT Energy Group, Inc. $ (3,553,555 ) $ 1,869,784 |
Business Combinations | Business Combinations The purchase price of an acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values, with the residual of the purchase price recorded as goodwill. The results of operations of the acquired business are included in the Company’s operating results from the date of acquisition. |
Cash | Cash Cash denominated in RMB with a U.S. dollar equivalent of $ 3,056,683 3,250,535 2,222,144 2,333,681 71,000 500,000 As of October 31, 2019 and July 31, 2019, cash balance of $136,527 and $177,107, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations up to $250,000 per depositor. As of October 31, 2019 and July 31, 2019, cash balance of $28,523 and $26,288, respectively, were maintained at financial institutions in Hong Kong, and all were insured by the Hong Kong Deposit Protection Board up to a limit of HK $500,000 (approximately $64,000). |
Restricted Cash | Restricted Cash Restricted cash represents cash held by banks as guarantee deposit collateralizing notes payable pending release back to unrestricted cash upon completion of administrative process. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (230): Restricted Cash. The amendments in this update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. Earlier adoption is permitted. The amendments in this update should be applied using a retrospective transition method to each period presented. On August 1, 2018, the Company adopted this guidance on a retrospective basis. |
Short-term Investment | Short-term Investment Short-term investment consists of time deposit placed with a bank, which contains a fixed or variable interest rate and has original maturity within one year. Such investment is permitted to be redeemed early without penalties prior to maturity. Given the short-term nature, the carrying value of short-term investment approximates its fair value. The Company does not intend to withdraw early. There was no other-than-temporary impairment of short-term investment for the three months ended October 31, 2019 and 2018. |
Notes Receivable | Notes Receivable Notes receivable represents commercial notes due from various customers where the customers’ banks have guaranteed the payments. The notes are noninterest bearing and normally paid within three to six months. The Company has the ability to submit requests for payments to the customer’s banks earlier than the scheduled payments date, but will incur an interest charge and a processing fee. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivables, net, are recognized and carried at the original invoiced amount less an allowance for any uncollectible accounts. The Company uses the aging method to estimate the valuation allowance for anticipated uncollectible receivable balances. Under the aging method, bad debts determined by management are based on historical experience as well as the current economic climate and are applied to customers’ balances categorized by the number of months the underlying invoices have remained outstanding. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. |
Inventories, net | Inventories, net Inventories, net, consist of raw materials, work in progress and finished goods and are stated at the lower of cost or net realizable value using the weighted average method. When appropriate, impairment to inventories are recorded to write down the cost of inventories to their net realizable value. |
Advances to Suppliers | Advances to Suppliers Advances to suppliers are cash deposited or advanced to outside vendors or services providers for future inventory purchases or future services. This amount is refundable and bears no interest. For any advances to suppliers determined by management that such advances will not be in receipts of inventories or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its advances to suppliers on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. |
Contract Assets | Contract Assets The differences between the timing of the Company’s revenue recognized (based on costs incurred) and customer billings (based on unconditional rights to receive the consideration in the contractual terms) results in changes to the Company’s contract asset or contract liability positions. Provisions for estimated losses of contract assets on uncompleted contracts are made in the period in which such losses are determined. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses represent advance payments made to vendors for services such as rent, consulting and certification. |
Other Receivables, net | Other Receivables, net Other receivables, net primarily include advances to employees, receivables from sales of equipment, and other deposits. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. Allowance amounted to $ 291,519 0 |
Other Receivables – Related Parties | Other Receivables – Related Parties Other receivables – related parties present advances to the management of the Company for business development and travel advances. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are stated at cost net of accumulated depreciation and impairment losses. Depreciation is provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Estimated useful lives are as follows, taking into account the assets’ estimated residual value: Plant and Buildings [Member] Machinery equipment [Member] Computer and Office Equipment [Member] Vehicles [Member] Plant Improvement and Fixtures [Member] Schedule of estimated useful lives of property, plant and equipment Classification Estimated Useful Life Estimated Residual Value Plant and buildings 5 20 0 5 Machinery equipment 5 10 0 5 Computer and office equipment 3 10 0 5 Vehicles 5 10 0 5 Plant improvement and fixtures Shorter of lease term or estimated useful live of 5 20 0 5 The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited condensed consolidated statements of operations and other comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. Construction-in-progress represents contractor and labor costs, design fees and inspection fees in connection with the construction of the Company’s synthetic fuel raw materials production line, factory plantation, fire safety equipment installation, piping and plant improvement. No depreciation is provided for construction-in-progress until it is completed and placed into service. |
Intangible Assets, net | Intangible Assets, net Intangible assets, net, are stated at cost, less accumulated amortization. Amortization expense is recognized on the straight-line basis over the estimated useful lives of the assets as follows: Land Use Rights [Member] Technology Know-hows [Member] Patents, Licenses and Certifications [Member] Software [Member] Schedule of estimated useful lives of intangible assets, net Classification Estimated Useful Life Land use rights 50 years Technology know-hows 10 years Patents, licenses and certifications 3 10 Software 3 years All land in the PRC is owned by the government; however, the government grants “land use rights.” The Company has obtained rights to use various parcels of land for 50 years through the acquisition of Hubei Jinli in June 2018 and through the acquisition of Wine Co. in December 2018. Technology know-hows, including LSC Hand-Held Diesel Pump, CB-39 Motor Oil Pump, 0-16 MPa series hydraulic cylinder, brake cylinder and hydraulic value, and certain special operating and production licenses were acquired through the acquisition of Hubei Jinli and Tianjin Jiabaili in June 2018 and through the acquisition of Herbal Wine Co. and Wine Co. in December 2018 with estimated finite useful lives between 4.5 years to 10 years. Certain PV panel certifications were contributed by the Company’s noncontrolling interest shareholders as capital contribution in March 2018 with an estimated finite useful lives of 10 years. The Company also acquired a safety production license and an accounting software with a finite useful life of 3 years in June 2018 and January 2019, respectively. |
Goodwill | Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company has the option to access qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantities impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. For the year ended July 31, 2019, an impairment of $ 339,221 no |
Impairment for Long-Lived Assets | Impairment for Long-Lived Assets Long-lived assets, including plant and equipment and intangible with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the year ended July 31, 2019, an impairment of $ 644,382 no |
Subscription Receivable | Subscription Receivable Subscription receivable represents unpaid capital contribution from its shareholders. |
Fair Value Measurement | Fair Value Measurement The Company applies the provisions of Accounting Standards Codification (“ASC”) Subtopic 820-10, “Fair Value Measurements”, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities 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 pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy, the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of October 31, 2019 and July 31, 2019: Schedule of fair value hierarchy on a recurring basis Financial Assets Carrying Fair Value Measurements at Level 1 Level 2 Level 3 Short-term investment $ 425,333 $ 425,333 $ $ Financial Assets Carrying Fair Value Measurements at Level 1 Level 2 Level 3 Short-term investment $ 435,787 $ 435,787 $ $ The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis on level 3 measurements for the three months ended October 31, 2019 and for the year ended July 31, 2019: Schedule of reconciliation of assets and liabilities measured at fair value on a recurring basis October 31, July 31, Beginning balance $ $ 331,505 Change in estimated contingent liabilities - 243,658 Release from level 3 measurement due to contingent payments has been finalized - (570,322 ) Exchange rate effect - (4,841 ) Ending balance $ - $ - The Company believes the carrying amount reported in the unaudited condensed consolidated balance sheet for cash, restricted cash, notes receivable, accounts receivable, inventories, advance to suppliers, contract assets, prepaid expenses, other receivables, short-term loans, accounts payable, advances from customers, other payables and accrued liabilities, tax payables and short-term investment payable approximate fair value because of the short-term nature of such instruments. The carrying amount of long-term investment payable reported in the unaudited condensed consolidated balance sheets at carrying value, which approximates fair value as the rate of amortization of investment payment discount used were similar to interest rate charged by the bank in the PRC. As of October 31, 2019 and July 31, 2019, long-term investment payable balance was $ 226,155 22,191 279,764 25,999 |
Leases | Leases Effective August 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that does not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. The Company also adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. The Company recognized approximately $ 2.6 2.3 4.75% and 4.90% based on duration of lease terms. Operating lease ROU assets and lease liabilities are recognized at the adoption date of August 1, 2019 or the commencement date, whichever is earlier, based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company use its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of operating lease liabilities in any tested asset group and includes the associated operating lease payments in the undiscounted future pre-tax cash flows. |
Discontinued operations | Discontinued operations In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meet the criteria in paragraph 205-20-45-1E to be classified as discontinued operations. When all of the criteria to be classified as discontinued operations are met, including management having the authority to approve the action and committing to a plan to sell the entity, the major current assets, other assets, current liabilities, and noncurrent liabilities shall be reported as components of total assets and liabilities separate from the balances of the continuing operations. At the same time, the results of discontinued operations, less applicable income taxes (benefit), shall be reported as components of net income (loss) separate from the net income (loss) of continuing operations in accordance with ASC 205-20-45. See Note 4 – Discontinued operations. |
Revenue Recognition | Revenue Recognition On August 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of July 31, 2018. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations. The core principle underlying the revenue recognition ASU is that the Company will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized over time for the Company’s sale and installation of power generation systems and are recognized at a point in time for the Company’s sale of products. The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition. Sale and installation of power generation systems Sales of power generation systems in conjunction of system installation are generally recognized based on the Company’s efforts or inputs to the satisfaction of a performance obligation using an input measure method, which was essentially the same as the percentage of completion method prior to August 1, 2018 for its installation project. Therefore, take into account the costs, estimated earnings and revenue to date on contracts not yet completed. Revenue recognized is that percentage of the total contract price that costs expended to date bear to anticipated final total costs, based on current estimates of costs to complete. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor and supplies. Adjustments to the original estimates of the total contract revenue, total contract costs, or the extent of progress toward completion are often required as work progresses. Such changes and refinements in estimation are reflected in reported results of operations as they occur; if material, the effects of changes in estimates are disclosed in the notes to the unaudited condensed consolidated financial statements. The key assumptions used in the estimate of costs to complete relate to the unit material cost, the quantity of materials to be used, the installation cost and those indirect costs related to contract performance. The estimate of unit material cost is reviewed and updated on a quarterly basis, based on the updated information available in the supply markets. The estimate of material quantity to be used for completion and the installation cost is also reviewed and updated on a quarterly basis, based on the updated information on the progress of project execution. If the supply market conditions or the progress of project execution were different, it is likely that materially different amounts of contract costs would be used in the input method of accounting. Thus the uncertainty associated with those estimates may impact the Company’s unaudited condensed consolidated financial statements. Selling, general, and administrative costs are charged to expense as incurred. At the time a loss on a contract becomes known, the entire amount of the estimated ultimate loss is recognized in the unaudited condensed consolidated financial statements. Claims for additional contract costs are recognized upon a signed change order from the customer. The installation revenues and sales of equipment and system component are combined and considered as one performance obligation. The promises to transfer the equipment and system component and installation are not separately identifiable, which is evidencing by the fact that the Company provides a significant service of integrating the goods and services into a power generation system for which the customer has contracted. The Company currently does not have any modification of contract and the contract currently does not have any variable consideration. The Company’s sale and installation of power generation systems revenue for the three months ended October 31, 2019 and 2018 were $ 0 389,332 Sales of products The Company continues to derive its revenues from sales contracts with its customers with revenues being recognized upon delivery of products. Persuasive evidence of an arrangement is demonstrated via sales contract and invoice; and the sales price to the customer is fixed upon acceptance of the sales contract and there is no separate sales rebate, discount, or other incentive. Such revenues are recognized at a point in time after all performance obligations are satisfied and based on when control of goods transfer to a customer, which is generally similar to when its delivery has occurred prior to August 1, 2018. The Company’s disaggregate Revenues - sale of products information for the three months ended October 31, 2019 and 2018 are summarized as follows: Schedule of disaggregate sale of products streams For the For the Revenues – sales of products PV panels and others $ 1,704,797 $ 9,101,844 Air compression equipment and other components - 1,001,211 Heat pumps 57,986 4,243,564 High-grade synthetic fuel 39,976 4,096,752 Hydraulic parts and electronic components 1,364,077 1,155,735 Wine and herbal wine 73,805 - Total revenue – sales of products 3,240,641 19,599,106 Less: revenues – sales of products from discontinued operations (73,805 ) - Revenues – sales of products from continuing operations $ 3,166,836 $ 19,599,106 Gross versus Net Revenue Reporting In the normal course of the Company’s trading business, the Company orders products directly from its suppliers and drop ships the products directly to its customers. In these situations, the Company generally collects the sales proceeds directly from its customers and pays for the inventory purchases to its suppliers separately. The determination of whether revenues should be reported on a gross or net basis is based on the Company’s assessment of whether it is the principal or an agent in the transaction. In determining whether the Company is the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. Because the Company is not the primary obligor and is not responsible for (i) fulfilling the resale products delivery, (ii) establishing the selling prices for delivery of the resale products, (iii) performing all billing and collection activities including retaining credit risk and (iv) baring the back-end risk of inventory loss with respect to any product return from its customer, the Company has concluded that it is the agent in these arrangements, and therefore reports revenues and cost of revenues on a net basis. |
Warranty | Warranty The Company generally provides limited warranties for work performed under its contracts. At the time a sale is recognized, the Company records estimated future warranty costs under ASC 460. Such estimated costs for warranties are estimated at completion and these warrants are not service warranties separately sold by the Company. Generally, the estimated claim rates of warranty are based on actual warranty experience or Company’s best estimate. There were no such reserves recorded for the three months ended October 31, 2019 and 2018. No right of return exists on sales of inventory. As of October 31, 2019 and July 31, 2019, accrued warranty expense amounted to $ 63,618 65,182 |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in selling and general and administrative expenses. Advertising costs amounted to $ 25,508 31,972 |
Employee Benefit | Employee Benefit The full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Total expenses for the plans were $ 115,035 42,722 |
Research and development (“R&D”) | Research and development (“R&D”) Research and development expenses include salaries and other compensation-related expenses paid to the Company’s research and product development personnel while they are working on R&D projects, as well as raw materials used for the R&D projects. R&D expenses amounted to $ 97,123 3,047 |
Value Added Taxes | Value Added Taxes The Company is subject to value added tax (“VAT”). Revenue from sales of goods purchased from other entities is generally subject to VAT at the rate of 13% starting in April 2019, 16% starting in April 2018 and 17% prior to April 2018 and prior for all of its products except Herbal Wine which is at the rate of 3%. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the unaudited condensed consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) ASC 220 “Reporting Comprehensive Income”. Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. The Company had other comprehensive loss of $ 948,339 380,986 |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company is the RMB as substantially all of the Company’s PRC subsidiaries’ operations use this denomination. Foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenues and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. For the purpose of presenting these financial statements of subsidiaries in PRC, the Company’s assets and liabilities are expressed in U.S. dollars at the exchange rate on the balance sheet date, which is 7.0533 6.8841 7.0551 6.8779 For the purpose of presenting these financial statements of the subsidiary in Hong Kong, the Company’s assets and liabilities are expressed in U.S. dollars at the exchange rate on the balance sheet date, which is 7.8376 7.8275 7.8398 7.8417 |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted loss per share gives effect to all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options or warrants), and convertible debt or convertible preferred stock, using the if-converted method. Loss per share excludes all potential dilutive shares of common stock if their effect is anti-dilutive. |
Statutory Reserves | Statutory Reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable statutory surplus reserve fund. Subject to certain cumulative limits, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the reserve fund. For foreign invested enterprises, the annual appropriation for the reserve fund cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulated loss. For the three months ended October 31, 2019 and 2018, the Company has contributed $ 20,413 149,543 |
Contingencies | Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s unaudited condensed consolidated financial position, results of operations and cash flows. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In January 2017, the FASB issued ASU - , Intangibles - Goodwill and Other (Topic 350) which simplifies goodwill impairment testing by requiring that such periodic testing be performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for the Company for annual and interim reporting periods beginning August 1, 2020. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements and related disclosures, which is effective for fiscal years, including interim periods, beginning after December 15, 2019. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted this ASU on August 1, 2019 and determined the adoption of this ASU did not have a material effect on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework —Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 removes, modifies and adds certain disclosure requirements in Topic 820 “Fair Value Measurement”. ASU 2018-13 eliminates certain disclosures related to transfers and the valuations process, modifies disclosures for investments that are valued based on net asset value, clarifies the measurement uncertainty disclosure, and requires additional disclosures for Level 3 fair value measurements. ASU 2018-13 is effective for the Company for annual and interim reporting periods beginning August 1, 2020. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements and related disclosures. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning August 1, 2020. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements and related disclosures. Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Nature of business and organi_2
Nature of business and organization (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements | Schedule of consolidated financial statements Background Ownership Name Background Ownership Xiangtian HK ● A Hong Kong company 100% owned by XT Energy Xiangtian BVI ● A British Virgin Islands company 100% owned by XT Energy Xiangtian Shenzhen ● A PRC limited liability company and deemed a wholly foreign owned enterprise ("WFOE") 100% owned by Xiangtian HK Sanhe Xiangtian ● A PRC limited liability company VIE of Xiangtian Shenzhen prior to September 30, 2018 and became subsidiary of Xianning Xiangtian on September 30, 2018 and thereafter Xianning Xiangtian ● A PRC limited liability company 100% owned by Sanhe Xiangtian prior to September 30, 2018 and became VIE of Xiangtian Shenzhen on September 30, 2018 and thereafter Xiangtian Zhongdian ● A PRC limited liability company 70% owned by Xianning Xiangtian Jingshan Sanhe ● A PRC limited liability company 100% owned by Xianning Xiangtian Hubei Jinli ● A PRC limited liability company 100% owned by Xianning Xiangtian Tianjin Jiabaili ● A PRC limited liability company 100% owned by Xianning Xiangtian Xiangtian Trade ● A PRC limited liability company 100% owned by Xianning Xiangtian Wine Co.* ● A PRC limited liability company 90% owned by Xianning Xiangtian Herbal Wine Co.* ● A PRC limited liability company 90% owned by Xianning Xiangtian * See Note 4 – Discontinued operations for details. * See Note 4 – Discontinued operations for details. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of financial statement amounts and balances of the VIE were included in the accompanying unaudited condensed consolidated financial statements | Schedule of financial statement amounts and balances of the VIE were included in the accompanying unaudited condensed consolidated financial statements October 31, July 31, Current assets $ 16,827,533 $ 22,287,078 Current assets of discontinued operations 3,181,397 4,441,772 Non-current assets 29,725,086 26,783,807 Non-current assets of discontinued operations 9,214,988 9,537,179 Total assets $ 58,949,004 $ 63,049,836 Current liabilities $ 23,447,115 $ 23,617,149 Current liabilities of discontinued operations 1,397,255 1,499,012 Non-current liabilities 1,628,231 279,764 Total liabilities $ 26,472,601 $ 25,395,925 For the For the Revenues $ 3,166,836 $ 19,988,438 Gross (loss) profit $ (606,944 ) $ 4,195,515 (Loss) income from continuing operations $ (3,607,152 ) $ 3,037,062 Net (loss) income from continuing operations attributable to XT Energy Group, Inc. $ (3,396,269 ) $ 1,869,784 Net loss from discontinued operations attributable to XT Energy Group, Inc. (157,286 ) - Net (loss) income attributable to XT Energy Group, Inc. $ (3,553,555 ) $ 1,869,784 |
Schedule of estimated useful lives of property, plant and equipment | Schedule of estimated useful lives of property, plant and equipment Classification Estimated Useful Life Estimated Residual Value Plant and buildings 5 20 0 5 Machinery equipment 5 10 0 5 Computer and office equipment 3 10 0 5 Vehicles 5 10 0 5 Plant improvement and fixtures Shorter of lease term or estimated useful live of 5 20 0 5 |
Schedule of estimated useful lives of intangible assets, net | Schedule of estimated useful lives of intangible assets, net Classification Estimated Useful Life Land use rights 50 years Technology know-hows 10 years Patents, licenses and certifications 3 10 Software 3 years |
Schedule of fair value hierarchy on a recurring basis | Schedule of fair value hierarchy on a recurring basis Financial Assets Carrying Fair Value Measurements at Level 1 Level 2 Level 3 Short-term investment $ 425,333 $ 425,333 $ $ Financial Assets Carrying Fair Value Measurements at Level 1 Level 2 Level 3 Short-term investment $ 435,787 $ 435,787 $ $ |
Schedule of reconciliation of assets and liabilities measured at fair value on a recurring basis | Schedule of reconciliation of assets and liabilities measured at fair value on a recurring basis October 31, July 31, Beginning balance $ $ 331,505 Change in estimated contingent liabilities - 243,658 Release from level 3 measurement due to contingent payments has been finalized - (570,322 ) Exchange rate effect - (4,841 ) Ending balance $ - $ - |
Schedule of disaggregate sale of products streams | Schedule of disaggregate sale of products streams For the For the Revenues – sales of products PV panels and others $ 1,704,797 $ 9,101,844 Air compression equipment and other components - 1,001,211 Heat pumps 57,986 4,243,564 High-grade synthetic fuel 39,976 4,096,752 Hydraulic parts and electronic components 1,364,077 1,155,735 Wine and herbal wine 73,805 - Total revenue – sales of products 3,240,641 19,599,106 Less: revenues – sales of products from discontinued operations (73,805 ) - Revenues – sales of products from continuing operations $ 3,166,836 $ 19,599,106 |
Business combination (Tables)
Business combination (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of fair value of identifiable assets acquired and liabilities assumed at the acquisition date | Schedule of fair value of identifiable assets acquired and liabilities assumed at the acquisition date Fair Value Cash $ 6,890 Accounts receivable, net 23,612 Inventories, net 1,035,186 Advances to suppliers 25,719 Other receivables 244,279 Plant and equipment, net 4,351,805 Intangible assets, net 2,999,442 Goodwill 1,976,878 Total assets 10,663,811 Advance from customers 13,904 Other payables and accrued liabilities 6,128,289 Other payables – related parties and director 3,653,843 Taxes payable 5,582 Total liabilities 9,801,618 Net assets acquired prior to capital contribution $ 862,193 Total consideration for capital injection 9,699,669 Additional capital contribution by noncontrolling shareholder 215,548 Net assets acquired after capital contribution 10,777,410 Percentage of interest acquired 90.0 % Total net assets acquired $ 9,699,669 |
Schedule of investment payable | Schedule of investment payable Name of Payee Relationship Nature October 31, July 31, Guifen Wang Former shareholder of Tianjin Jiabaili Payment for acquisition of Tianjin Jiabaili 133,044 136,314 Total 133,044 136,314 Short-term (133,044 ) (136,314 ) Long-term $ - $ - |
Schedule of maturities investment payable repayment date | Schedule of maturities investment payable repayment date Repayment date Amount Due on demand (see Note 15 – Commitments and Contingencies) $ 133,044 Total $ 133,044 |
Schedule of investment payables related parties | Schedule of investment payables related parties Name of Related Party Relationship Nature October 31, July 31, Wenhe Han (see Note 15 – Commitments and Contingencies) Vice general manager of Tianjin Jiabaili Payment for acquisition of Tianjin Jiabaili $ 110,813 $ 113,537 Heping Zhang General manager of Hubei Jinli Payment for acquisition of Hubei Jinli 226,155 370,875 Total 336,968 484,412 Short-term (110,813 ) (204,648 ) Long-term $ 226,155 $ 279,764 |
Schedule of maturity related party repayment date | Schedule of maturity related party repayment date Repayment date Amount Due on demand $ 110,813 June 2020 7,549 June 2021 248,346 Debt discount (29,740 ) Total $ 336,968 |
Discontinued operations (Tables
Discontinued operations (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Discontinued Operations [Abstract] | |
Schedule of assets and liabilities from discontinued operations | Schedule of assets and liabilities from discontinued operations October 31, July 31, CURRENT ASSETS: Cash $ 618,597 $ 1,929,899 Accounts receivable, net 522,292 471,889 Inventories 1,904,460 1,785,176 Advances to suppliers 43,130 181,101 Other receivables – related party 11,505 - Other current assets 81,413 73,707 Total current assets of discontinued operations 3,181,397 4,441,772 OTHER ASSETS: Property, plant and equipment, net 4,416,476 4,588,449 Intangible assets, net 2,848,064 2,950,343 Goodwill 1,950,448 1,998,387 Total other assets of discontinued operations 9,214,988 9,537,179 Total assets of the disposal group classified as discontinued operations $ 12,396,385 $ 13,978,951 Carrying amounts of major classes of liabilities included as part of discontinued operations: CURRENT LIABILITIES: Accounts payable $ 18,720 $ 25,266 Advance from customers 1,091,573 1,124,608 Other payables and accrued liabilities 42,524 42,778 Income taxes payable 244,438 306,360 Total current liabilities of discontinued operations 1,397,255 1,499,012 Total liabilities of the disposal group classified as discontinued operations $ 1,397,255 $ 1,499,012 |
Schedule of income and loses from discontinued operations | Schedule of income and loses from discontinued operations For the 2019 Revenue: Revenue-products $ 73,805 Total revenue 73,805 Cost of sales-products 13,909 Gross profit 59,896 OPERATING EXPENSES: Selling expenses 7,290 General and administrative expenses 283,092 Total operating expenses 290,382 Loss from operations (230,486 ) OTHER INCOME (EXPENSES) Other expenses, net (147 ) Interest income 1,312 Total other income, net 1,165 Loss before income taxes (229,321 ) Income tax benefit 54,559 Net loss from discontinued operations (174,762 ) Less: Net loss attributable to non-controlling interest from discontinued operations (17,476 ) Net loss from discontinued operations attributable to XT Energy Group, Inc. $ (157,286 ) |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Schedule of accounts receivable October 31, July 31, Accounts receivable $ 5,828,263 $ 6,096,212 Less: allowance for doubtful accounts (2,483,694 ) (1,695,469 ) Accounts receivable, net 3,344,569 4,400,743 Less: accounts receivable – discontinued operations (522,292 ) (471,889 ) Accounts receivable, net – continuing operations $ 2,822,277 $ 3,928,854 |
Schedule of doubtful accounts | Schedule of doubtful accounts Three Months Ended Year Ended Beginning balance $ 1,695,469 $ 1,374,155 Provision for doubtful accounts 828,686 422,684 Wrote off - (118,684 ) Allowance acquired from acquisition - 32,478 Exchange rate effect (40,461 ) (15,164 ) Ending balance 2,483,694 1,695,469 Less: balance – discontinued operations (31,468 ) (32,242 ) Ending balance – continuing operations $ 2,452,226 $ 1,663,227 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories, net | Schedule of inventories, net October 31, July 31, Raw materials and parts $ 2,117,169 $ 1,607,472 Work in progress 323,748 258,634 Semi-finished goods 383,350 392,772 Finished goods 6,534,852 6,420,298 Total 9,359,119 8,679,176 Less: allowance for inventory reserve (1,488,024 ) (54,421 ) Inventories, net 7,871,095 8,624,755 Less: inventories – discontinued operations (1,904,460 ) (1,785,176 ) Inventories, net – continuing operations $ 5,966,635 $ 6,839,579 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Schedule of property, plant and equipment October 31, July 31, Plant and buildings $ 12,050,724 $ 11,773,196 Machinery equipment 9,804,282 9,040,901 Computer and office equipment 663,000 668,741 Vehicles 457,252 468,486 Plant improvement 1,211,133 1,146,692 Construction in progress 975,354 1,650,429 Subtotal 25,161,745 24,748,445 Less: accumulated depreciation (5,323,573 ) (5,098,140 ) Property, plant and equipment, net 19,838,172 19,650,305 Less: property, plant and equipment – discontinued operations (4,416,476 ) (4,588,449 ) Property, plant and equipment, net – continuing operations $ 15,421,696 $ 15,061,856 |
Schedule of construction-in-progress | Schedule of construction-in-progress Construction-in-progress description Value Estimated Estimated Additional Cost to Complete Synthetic fuel raw materials production line $ 520,650 January 2020* $ 1,418 Automobile exhaust cleaner construction project 433,368 January 2020* 708,888 Fire safety equipment installation 7,158 April 2020 - Piping 14,178 February 2020 - Total construction-in-progress – continuing operations $ 975,354 $ 710,306 *Completed in January 2020 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Schedule of intangible assets October 31, July 31, Land use rights $ 7,054,287 $ 7,227,670 Technology know-hows 1,798,101 1,812,147 Patents, licenses and certifications 2,350,655 2,408,430 Software 7,272 7,451 Less: accumulated amortization (867,522 ) (715,376 ) Intangible assets, net 10,342,793 10,740,322 Less: intangible assets – discontinued operations (2,848,064 ) (2,950,343 ) Intangible assets, net – continuing operations $ 7,494,729 $ 7,789,979 |
Schedule of amortization expenses estimated | Schedule of amortization expenses estimated Twelve Months Ending October 31, Estimated 2020 $ 677,159 2021 675,149 2022 673,803 2023 672,576 2024 671,597 Thereafter 6,972,509 Total 10,342,793 Less: intangible assets – discontinued operations (2,848,064 ) Total intangible assets, net – continuing operations $ 7,494,729 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill | Schedule of carrying amount of goodwill Hubei Jinli [Member] Tianjin Jiabaili [Member] Wine Co. and Herbal Wine Co [Member] Total Reportable Segment [Member] Hubei Jinli Tianjin Jiabaili Wine Co. Total Balance as of July 31, 2018 $ 3,793,245 $ 339,898 $ - $ 4,133,143 Goodwill acquired through acquisitions - - 1,976,878 1,976,878 Goodwill impairment - (339,221 ) - (339,221 ) Foreign currency translation adjustment (35,100 ) (677 ) 21,509 (14,268 ) Balance as of July 31, 2019 3,758,145 - 1,998,387 5,756,532 Balance as of July 31, 2019 3,758,145 - 1,998,387 5,756,532 Foreign currency translation adjustment (90,153 ) - (47,939 ) (138,092 ) Balance as of October 31, 2019 3,667,992 - 1,950,448 5,618,440 Less: goodwill – discontinued operations - - (1,950,448 ) (1,950,448 ) Goodwill – continuing operations $ 3,667,992 $ - $ - $ 3,667,992 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Schedule of maturity of lease obligations | Schedule of maturity of lease obligations Twelve Months Ending October 31, Operating Lease Amount 2020 $ 936,167 2021 1,026,054 2022 424,786 2023 425 Thereafter 1,276 Total lease payments 2,388,708 Less: Interest (130,998 ) Present value of lease liabilities $ 2,257,710 |
Related party balances and tr_2
Related party balances and transactions (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party other receivable | Schedule of related party other receivable Relationship Nature Name of Related Party Relationship Nature October 31, July 31, Lei Su Legal representative of Tianjin Jiabaili Employee advances $ - $ 2,905 Tianyu Ma General manager of Tianjin Jiabaili Employee advances 10,146 - Heping Zhang General Manager of Hubei Jinli Employee advances 7,089 - Deng Hua Zhou Chief Executive Officer Employee advances 3,544 3,632 Total $ 20,779 $ 6,537 |
Schedule of related party accounts payable | Schedule of related party accounts payable Relationship Nature Name of Related Party Relationship Nature October 31, July 31, Xianning Baizhuang Tea Industry Co., Ltd. Bin Zhou is the CEO of the company Purchase of materials $ 11,413 $ 9,554 Total $ 11,413 $ 9,554 |
Schedule of related parties other payables | Schedule of related parties other payables Relationship Nature Name of Related Party Relationship Nature October 31, July 31, Luck Sky International Investment Holdings Ltd. Owned by Zhou Deng Rong, former Chief Executive Officer and director Payment for U.S. professional fee $ 625,441 $ 593,941 Lucksky Group Owned by Zhou Deng Rong, former Chief Executive Officer and director, and Zhou Jian, Chairman Lease payable 615,450 600,549 Sanhe Dong Yi Owned by Zhou Deng Rong, former Chief Executive Officer and director Lease payable 2,552 872 Hubei Henghao Real Estate Development Co., Ltd. Bin Zhou, son of Zhou Deng Hua, is the executive director and general manager Interest payable 476,737 488,455 Zhou Deng Rong Former Chief Executive Officer and director Payment for U.S. professional fee 2,748,260 2,748,259 Jian Zhou Chairman Advances for operational purpose 2,401,884 1,900,164 Zhimin Feng Legal representative of Jingshan Sanhe Advances for operational purpose 3,144 3,222 Heping Zhang General Manager of Hubei Jinli Payment for acquisition of Hubei Jinli 38,965 39,923 Total $ 6,912,433 $ 6,375,385 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax expense | Schedule of components of the income tax expense 2019 2018 Current $ (8,363 ) $ 543,513 Deferred - (17,369 ) Provision for income tax (income tax benefit) (8,363 ) 526,144 Less: income tax benefit – discontinued operations (54,559 ) - Provision for income tax – continuing operations $ 46,196 $ 526,144 |
Schedule continuing operations of deferred tax assets | Schedule continuing operations of deferred tax assets October 31, 2019 July 31, 2019 Deferred tax assets: Net operating loss carry forwards $ 2,357,800 $ 1,967,400 Accounts receivable allowance 613,100 415,800 Inventory allowance 372,000 13,600 Deposit for investment allowance 77,600 79,500 Accrued liabilities 70,300 72,000 Warranty and other 15,900 16,300 Deferred tax assets before valuation allowance 3,506,700 2,564,600 Less: valuation allowance (3,506,700 ) (2,564,600 ) Net deferred tax assets $ - $ - |
Schedule of discontinued operations deferred tax assets | Schedule of discontinued operations deferred tax assets October 31, 2019 July 31, 2019 Deferred tax assets: Accounts receivable allowance $ 7,900 $ 8,100 Less: valuation allowance (7,900 ) (8,100 ) Net deferred tax assets $ - $ - |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of accrue costs for potential litigation losses | Schedule of accrue costs for potential litigation losses Total Dispute matter Claim amount 1) Negotiable instruments $ 567,110 2) Labor 992 Total $ 568,102 |
Segment reporting (Tables)
Segment reporting (Tables) | 3 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of represents results of division operations | Schedule of represents results of division operations 2019 2018 Revenues: Sanhe Xiangtian $ 1,523 $ 1,920,878 Xianning Xiangtian 62,801 4,233,629 Jingshan Sanhe 39,608 3,576,328 Xiangtian Zhongdian 1,697,349 9,101,868 Hubei Jinli 1,364,077 1,155,735 Xiangtian Trade 1,478 - Wine Co. 3,152 - Herbal Wine Co. 70,653 - Consolidated revenues 3,240,641 19,988,438 Less: revenues – discontinued operations (73,805 ) - Revenues – continuing operations $ 3,166,836 $ 19,988,438 2019 2018 Gross profit: Sanhe Xiangtian $ 1,523 $ 707,409 Xianning Xiangtian (949,437 ) 853,785 Jingshan Sanhe 4,138 1,187,491 Xiangtian Zhongdian (447,356 ) 908,334 Hubei Jinli 784,155 538,496 Xiangtian Trade 33 - Wine Co. 392 - Herbal Wine Co. 59,504 - Consolidated gross profit (547,048 ) 4,195,515 Less: gross profit – discontinued operations (59,896 ) - Gross profit – continuing operations $ (606,944 ) $ 4,195,515 2019 2018 (Loss) income from operations: Sanhe Xiangtian $ (1,020,922 ) $ 669,762 Xianning Xiangtian (1,305,638 ) 622,068 Jingshan Sanhe (712,977 ) 1,012,957 Xiangtian Zhongdian (819,022 ) 801,752 Hubei Jinli 292,641 107,436 Tianjin Jiabaili (27,848 ) (176,912 ) Xiangtian Trade (13,380 ) - Wine Co. (240,594 ) - Herbal Wine Co. 10,108 - All four holding entities (315,753 ) (495,432 ) Consolidated income (loss) from operations (4,153,385 ) 2,541,631 Less: loss from operations – discontinued operations 230,486 - (Loss) income from operations – continuing operations $ (3,922,899 ) $ 2,541,631 2019 2018 Net (loss) income attributable to controlling interest: Sanhe Xiangtian $ (973,857 ) $ 547,514 Xianning Xiangtian (1,308,464 ) 209,416 Jingshan Sanhe (712,689 ) 757,356 Xiangtian Zhongdian (567,067 ) 472,364 Hubei Jinli 204,133 63,268 Tianjin Jiabaili (27,752 ) (180,132 ) Xiangtian Trade (10,567 ) - Wine Co. (164,727 ) - Herbal Wine Co. 7,441 - All four holding entities (314,184 ) (494,019 ) Consolidated net (loss) income attributable to controlling interest (3,867,733 ) 1,375,767 Less: net loss attributable to controlling interest - discontinued operations 157,286 - Net (loss) income attributable to controlling interest - continuing operations $ (3,710,447 ) $ 1,375,767 2019 2018 Depreciation and amortization expenses: Sanhe Xiangtian $ 31,066 $ 43,063 Xianning Xiangtian 570 57 Jingshan Sanhe 81,888 8,705 Xiangtian Zhongdian 68,529 74,890 Hubei Jinli 232,416 221,785 Tianjin Jiabaili 5,218 54,508 Xiangtian Trade 293 - Wine Co. 82,138 - Herbal Wine Co. 14,790 - Consolidated depreciation and amortization expenses 516,908 403,008 Less: depreciation and amortization expenses - discontinued operations (96,928 ) - Depreciation and amortization expenses - continuing operations $ 419,980 $ 403,008 2019 2018 Interest expense: Sanhe Xiangtian $ - $ 6,041 Xianning Xiangtian 5,953 413,105 Hubei Jinli - 58,082 Consolidated interest expense $ 5,953 $ 477,228 2019 2018 Capital expenditures: Sanhe Xiangtian $ - $ 47,031 Xianning Xiangtian 2,340 1,265 Jingshan Sanhe 1,014,504 265,323 Xiangtian Zhongdian - 8,040 Hubei Jinli 7,752 144,643 Tianjin Jiabaili - 12,360 Wine Co. 3,549 - Consolidated capital expenditures 1,028,145 478,662 Less: capital expenditures - discontinued operations (3,549 ) - Capital expenditures - continuing operations $ 1,024,596 $ 478,662 Total assets of each division as of October 31, 2019 and July 31, 2019 consisted of the following: October 31, July 31, Total assets: Sanhe Xiangtian $ 3,692,238 $ 4,889,875 Xianning Xiangtian 7,039,892 7,969,624 Jingshan Sanhe 9,050,508 6,969,849 Xiangtian Zhongdian 6,450,049 7,731,512 Hubei Jinli 21,439,029 21,635,194 Tianjin Jiabaili 321,704 302,518 Xiangtian Trade 454,822 483,168 Wine Co. 9,468,884 11,005,886 Herbal Wine Co. 2,927,501 2,973,064 All four holding entities 368,161 416,098 Consolidated assets 61,212,788 64,376,788 Less: assets - discontinued operations (12,396,385 ) (13,978,950 ) Total assets - continuing operations $ 48,816,403 $ 50,397,838 |
Nature of Business and Organi_3
Nature of Business and Organization (Details) | 3 Months Ended | |
Oct. 31, 2019 | ||
Xiangtian Hk [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A Hong Kong company | |
Ownership | 100% owned by XT Energy | |
Xiangtian Bvi [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A British Virgin Islands company | |
Ownership | 100% owned by XT Energy | |
Xiangtian Shenzhen [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company and deemed a wholly foreign owned enterprise ("WFOE") | |
Ownership | 100% owned by Xiangtian HK | |
Sanhe Xiangtian [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company● Incorporated on July 8, 2013● Sales and installation of power generation systems and PV systems and sales of PV Panels, air compression equipment and heat pump products | |
Ownership | VIE of Xiangtian Shenzhen prior to September 30, 2018 and became subsidiary of Xianning Xiangtian on September 30, 2018 and thereafter | |
Xianning Xiangtian [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on May 30, 2016 ● Manufacturing and sales of air compression equipment and heat pump products | |
Ownership | 100% owned by Sanhe Xiangtian prior to September 30, 2018 and became VIE of Xiangtian Shenzhen on September 30, 2018 and thereafter | |
Xiangtian Zhongdian [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on March 7, 2018 ● Manufacturing and sales of PV panels | |
Ownership | 70% owned by Xianning Xiangtian | |
Jingshan Sanhe [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company● Incorporated on April 17, 2018● Researching, manufacturing and sales of high-grade synthetic fuel products | |
Ownership | 100% owned by Xianning Xiangtian | |
Hubei Jinli [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on December 27, 2004 and acquired on June 30, 2018 ● Manufacturing and sales of hydraulic parts and electronic components | |
Ownership | 100% owned by Xianning Xiangtian | |
Tianjin Jiabaili [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on April 10, 2007 and acquired on June 30, 2018 ● Manufacturing and sales of petroleum products | |
Ownership | 100% owned by Xianning Xiangtian | |
Xiangtian Trade [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on August 9, 2018 ● Expected to engage in trading chemical raw materials to support fuel production | |
Ownership | 100% owned by Xianning Xiangtian | |
Wine Co [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on August 9, 2011 and acquired on December 14, 2018 ● Manufacturing and sales of wine products | [1] |
Ownership | 90% owned by Xianning Xiangtian | [1] |
Herbal Wine Co [Member] | ||
Entity Listings [Line Items] | ||
Background | ● A PRC limited liability company ● Incorporated on August 9, 2018 and acquired on December 14, 2018 ● Manufacturing and sales of herbal wine products | [1] |
Ownership | 90% owned by Xianning Xiangtian | [1] |
[1] | See Note 4 – Discontinued operations for details. |
Nature of business and organi_4
Nature of business and organization (Details Narrative) | Jan. 06, 2020USD ($) | Jan. 06, 2020CNY (¥) | May 15, 2012USD ($)shares | Apr. 17, 2012shares | Aug. 31, 2019 | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Jan. 31, 2019USD ($) | Jan. 31, 2019CNY (¥) | Oct. 31, 2018USD ($) | Oct. 31, 2018CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) | Mar. 31, 2018 | Jul. 31, 2019 | Dec. 21, 2018 | May 30, 2014 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Percentage of acquired equity interest | 90.00% | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Cash received from transaction | $ 5,700,000 | ||||||||||||||||
Equity Method Investment, Amount Sold | $ 9,600,000 | ||||||||||||||||
RMB [Member] | Subsequent Event [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Cash received from transaction | ¥ | ¥ 40,000,000 | ||||||||||||||||
Equity Method Investment, Amount Sold | ¥ | ¥ 67,500,000 | ||||||||||||||||
Xiangtian Hk [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Owners, percentage | 100.00% | ||||||||||||||||
Xiangtian Zhongdian New Energy Co Ltd [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Description of business transaction | Xianning Xiangtian holds a 70% ownership interest with the remaining 30% ownership held by Nanjing Zhongdian Photovoltaic Co. Ltd. Xiangtian Zhongdian is in the business of manufacturing and sales of PV panels. | ||||||||||||||||
Xianning Xiangtian [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Capital contribution | $ 30,800,000 | $ 30,800,000 | $ 30,800,000 | $ 30,800,000 | |||||||||||||
Xianning Xiangtian [Member] | RMB [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Capital contribution | ¥ | ¥ 209,260,000 | ¥ 209,260,000 | ¥ 209,260,000 | ¥ 209,260,000 | |||||||||||||
Wine Co [Member] | Subsequent Event [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Owners, percentage | 90.00% | 90.00% | |||||||||||||||
Kairui Tong [Member] | Subsequent Event [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Owners, percentage | 54.00% | 54.00% | |||||||||||||||
Hao Huang [Member] | Subsequent Event [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Owners, percentage | 36.00% | 36.00% | |||||||||||||||
Share Purchase Agreement [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Aggregate shares of common stock | shares | shares | 7,200,000 | 7,200,000 | |||||||||||||||
Percentage of acquired equity interest | 90.00% | ||||||||||||||||
Cash received from transaction | $ 235,000 | ||||||||||||||||
Variable Interest Entity Agreement [Member] | Xianning Xiangtian [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Percentage of VIE agreements equity interest | 100.00% | 100.00% | |||||||||||||||
Variable Interest Entity Agreement [Member] | Sanhe Xiangtian [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Percentage of VIE agreements equity interest | 100.00% | 100.00% | |||||||||||||||
Framework Agreement On Business Cooperation [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Agreement term | 10 years | ||||||||||||||||
Agreement Of Exclusive Management Consulting And Training And Technical Service [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Agreement term | 10 years | ||||||||||||||||
Exclusive Option Agreement [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Owners, percentage | 100.00% | ||||||||||||||||
Know How Sub License Agreement [Member] | |||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||
Royalty fee | 5.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2019 | |
Accounting Policies [Abstract] | |||
Current assets | $ 16,827,533 | $ 22,287,078 | |
Current assets of discontinued operations | 3,181,397 | 4,441,772 | |
Non-current assets | 29,725,086 | 26,783,807 | |
Non-current assets of discontinued operations | 9,214,988 | 9,537,179 | |
Total assets | 58,949,004 | 63,049,836 | |
Current liabilities | 23,447,115 | 23,617,149 | |
Current liabilities of discontinued operations | 1,397,255 | 1,499,012 | |
Non-current liabilities | 1,628,231 | 279,764 | |
Total liabilities | 26,472,601 | $ 25,395,925 | |
Revenues | 3,166,836 | $ 19,988,438 | |
Gross (loss) profit | (606,944) | 4,195,515 | |
(Loss) income from continuing operations | (3,607,152) | 3,037,062 | |
Net (loss) income from continuing operations attributable to XT Energy Group, Inc. | (3,396,269) | 1,869,784 | |
Net loss from discontinued operations attributable to XT Energy Group, Inc. | (157,286) | ||
Net (loss) income attributable to XT Energy Group, Inc. | $ (3,553,555) | $ 1,869,784 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended |
Oct. 31, 2019 | |
Plant and Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Estimated Residual Value | 0.00% |
Plant and Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 20 years |
Estimated Residual Value | 5.00% |
Machinery equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Estimated Residual Value | 0.00% |
Machinery equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Estimated Residual Value | 5.00% |
Computer and Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Estimated Residual Value | 0.00% |
Computer and Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Estimated Residual Value | 5.00% |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Estimated Residual Value | 0.00% |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Estimated Residual Value | 5.00% |
Plant Improvement and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Estimated Residual Value | 0.00% |
Plant Improvement and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 20 years |
Estimated Residual Value | 5.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details 2) | 3 Months Ended |
Oct. 31, 2019 | |
Land Use Rights [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 50 years |
Technology Know-hows [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Patents, Licenses and Certifications [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Patents, Licenses and Certifications [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 3) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Financial Assets | ||
Short-term investment | $ 425,333 | $ 435,787 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets | ||
Short-term investment | 425,333 | 435,787 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets | ||
Short-term investment | ||
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets | ||
Short-term investment |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details 4) - USD ($) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Jul. 31, 2019 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 331,505 | |
Change in estimated contingent liabilities | 243,658 | |
Release from level 3 measurement due to contingent payments has been finalized | (570,322) | |
Exchange rate effect | (4,841) | |
Ending balance |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details 5) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Product Information [Line Items] | ||
Revenues | $ 3,166,836 | $ 19,988,438 |
Total revenue – sales of products | 3,240,641 | 19,599,106 |
Less: revenues – sales of products from discontinued operations | (73,805) | |
Revenues – sales of products from continuing operations | 3,166,836 | 19,599,106 |
P Vpanelsandothers [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,704,797 | 9,101,844 |
Aircompressionequipmentandothercomponents [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,001,211 | |
Heatpumps [Member] | ||
Product Information [Line Items] | ||
Revenues | 57,986 | 4,243,564 |
Highgradesyntheticfuel [Member] | ||
Product Information [Line Items] | ||
Revenues | 39,976 | 4,096,752 |
Hydraulicpartsandelectroniccomponents [Member] | ||
Product Information [Line Items] | ||
Revenues | 1,364,077 | 1,155,735 |
Wineand Herbal Wine [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 73,805 |
Summary of significant accou_10
Summary of significant accounting policies (Details Narrative) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 31, 2019USD ($) | Oct. 31, 2019CNY (¥) | |
Summary of significant accounting policies (Textual) | |||||
Working capital deficit | $ 8,300,000 | ||||
Cash Equivalents, at Carrying Value | 3,200,000 | ||||
Due to Other Related Parties, Current | 6,900,000 | ||||
Excluding other payable to related parties working capital deficit | 1,400,000 | ||||
Variable interest agreements, description | Sanhe Xiangtian transferred its 100% equity interest of Xianning Xiangtian to the Sanhe Xiangtian Shareholders and the Sanhe Xiangtian Shareholders transferred their 100% equity interest of Sanhe Xiangtian to Xianning Xiangtian. | ||||
Cash denominated in Renminbi (RMB) with US dollar | 3,056,683 | $ 3,250,535 | |||
Balances are not covered by insurance as the deposit | 2,222,144 | 2,333,681 | |||
Insured each depositor per bank for a maximum | $ 71,000 | ||||
Cash balance, Description | As of October 31, 2019 and July 31, 2019, cash balance of $136,527 and $177,107, respectively, were maintained at U.S. financial institutions, and were insured by the Federal Deposit Insurance Corporation or other programs subject to certain limitations up to $250,000 per depositor. As of October 31, 2019 and July 31, 2019, cash balance of $28,523 and $26,288, respectively, were maintained at financial institutions in Hong Kong, and all were insured by the Hong Kong Deposit Protection Board up to a limit of HK $500,000 (approximately $64,000). | ||||
Allowance amount | $ 291,519 | 0 | |||
Land use rights, description | All land in the PRC is owned by the government; however, the government grants “land use rights.” The Company has obtained rights to use various parcels of land for 50 years through the acquisition of Hubei Jinli in June 2018 and through the acquisition of Wine Co. in December 2018. | ||||
Technology know-hows, description | Technology know-hows, including LSC Hand-Held Diesel Pump, CB-39 Motor Oil Pump, 0-16 MPa series hydraulic cylinder, brake cylinder and hydraulic value, and certain special operating and production licenses were acquired through the acquisition of Hubei Jinli and Tianjin Jiabaili in June 2018 and through the acquisition of Herbal Wine Co. and Wine Co. in December 2018 with estimated finite useful lives between 4.5 years to 10 years. | ||||
Patents, licenses and certifications, description | Certain PV panel certifications were contributed by the Company’s noncontrolling interest shareholders as capital contribution in March 2018 with an estimated finite useful lives of 10 years. | ||||
Production license and accounting software, description | The Company also acquired a safety production license and an accounting software with a finite useful life of 3 years in June 2018 and January 2019, respectively. | ||||
Goodwill impairment | $ 0 | $ 0 | 339,221 | ||
Intangible assets impairment | 0 | 0 | 644,382 | ||
Long-term investment payable balance | 226,155 | 279,764 | |||
Net of discount | 22,191 | 25,999 | |||
Right of use assets | 2,564,136 | ||||
Lease liabilities | 855,634 | ||||
Installation of power generation systems | 0 | 389,332 | |||
Accrued warranty expense | 63,618 | $ 65,182 | |||
Advertising costs | 25,508 | 31,972 | |||
Employee benefit expenses | 115,035 | 42,722 | |||
Research and development expense | $ 97,123 | 3,047 | |||
Value added taxes, description | The Company is subject to value added tax (“VAT”). Revenue from sales of goods purchased from other entities is generally subject to VAT at the rate of 13% starting in April 2019, 16% starting in April 2018 and 17% prior to April 2018 and prior for all of its products except Herbal Wine which is at the rate of 3%. | ||||
Income tax examination, description | The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. | ||||
Other comprehensive loss from foreign currency translation adjustments | $ 948,339 | 380,986 | |||
Statutory surplus reserve fund percentage description | Subject to certain cumulative limits, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the reserve fund. For foreign invested enterprises, the annual appropriation for the reserve fund cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulated loss. For the three months ended October 31, 2019 and 2018, the Company has contributed $20,413 and $149,543, respectively, to the statutory reserves. | ||||
Statutory reserves | $ 20,413 | $ 149,543 | |||
Subsidiaries In P R C [Member] | |||||
Summary of significant accounting policies (Textual) | |||||
Foreign currency exchange rate | 7.0533 | 6.8841 | 7.0533 | ||
Weighted average exchange rate | 7.0551 | 6.8779 | |||
Subsidiaries In Hong Kong [Member] | |||||
Summary of significant accounting policies (Textual) | |||||
Foreign currency exchange rate | 7.8376 | 7.8275 | 7.8376 | ||
Weighted average exchange rate | 7.8398 | 7.8417 | |||
Accounting Standards Update 2016-02 [Member] | |||||
Summary of significant accounting policies (Textual) | |||||
Right of use assets | $ 2,600,000 | ||||
Lease liabilities | $ 2,300,000 | ||||
Description of incremental borrowing rate | 4.75% and 4.90% based on duration of lease terms. | ||||
RMB [Member] | |||||
Summary of significant accounting policies (Textual) | |||||
Insured each depositor per bank for a maximum | ¥ | ¥ 500,000 | ||||
Xiangtian Shenzhen [Member] | |||||
Summary of significant accounting policies (Textual) | |||||
Percentage of amount received in net income | 100.00% |
Business Combination (Details)
Business Combination (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 | Dec. 21, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,667,992 | $ 3,758,145 | |
Percentage of interest acquired | 90.00% | ||
Wine Co. and Herbal Wine Co [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 6,890 | ||
Accounts receivable, net | 23,612 | ||
Inventories, net | 1,035,186 | ||
Advances to suppliers | 25,719 | ||
Other receivables | 244,279 | ||
Plant and equipment, net | 4,351,805 | ||
Intangible assets, net | 2,999,442 | ||
Goodwill | 1,976,878 | ||
Total assets | 10,663,811 | ||
Advance from customers | 13,904 | ||
Other payables and accrued liabilities | 6,128,289 | ||
Other payables – related parties and director | 3,653,843 | ||
Taxes payable | 5,582 | ||
Total liabilities | 9,801,618 | ||
Net assets acquired prior to capital contribution | 862,193 | ||
Total consideration for capital injection | 9,699,669 | ||
Additional capital contribution by noncontrolling shareholder | 215,548 | ||
Net assets acquired after capital contribution | $ 10,777,410 | ||
Percentage of interest acquired | 90.00% | ||
Total net assets acquired | $ 9,699,669 |
Business Combination (Details 1
Business Combination (Details 1) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Investment Payable [Member] | ||
Business Acquisition [Line Items] | ||
Total | $ 133,044 | $ 136,314 |
Short-term | (133,044) | (136,314) |
Long-term | ||
Guifen Wang [Member] | ||
Business Acquisition [Line Items] | ||
Name of Payee | Guifen Wang | |
Relationship | Former shareholder of Tianjin Jiabaili | |
Nature | Payment for acquisition of Tianjin Jiabaili | |
Total | $ 133,044 | $ 136,314 |
Business Combination (Details 2
Business Combination (Details 2) - Investment Payable [Member] - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Business Acquisition [Line Items] | ||
Due on demand (see Note 15 – Commitments and Contingencies) | $ 133,044 | |
Total | $ 133,044 | $ 136,314 |
Business Combination (Details 3
Business Combination (Details 3) - USD ($) | 10 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Investment Payable Related Parties [Member] | ||
Business Acquisition [Line Items] | ||
Total | $ 336,968 | $ 484,412 |
Short-term | (110,813) | (204,648) |
Long-term | $ 226,155 | 279,764 |
Wenhe Han [Member] | ||
Business Acquisition [Line Items] | ||
Name of Related Party | Wenhe Han (see Note 15 – Commitments and Contingencies) | |
[custom:BusinessAcquisitionRelationshipOfAcquiredEntity] | Vice general manager of Tianjin Jiabaili | |
Nature | Payment for acquisition of Tianjin Jiabaili | |
Total | $ 110,813 | 113,537 |
Heping Zhang [Member] | ||
Business Acquisition [Line Items] | ||
Name of Related Party | Heping Zhang | |
[custom:BusinessAcquisitionRelationshipOfAcquiredEntity] | General manager of Hubei Jinli | |
Nature | Payment for acquisition of Hubei Jinli | |
Total | $ 226,155 | $ 370,875 |
Business Combinations (Details
Business Combinations (Details 4) - Investment Payable Related Parties [Member] - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Business Acquisition [Line Items] | ||
Due on demand | $ 110,813 | |
June 2020 | 7,549 | |
June 2021 | 248,346 | |
Debt discount | (29,740) | |
Total | $ 336,968 | $ 484,412 |
Business combination (Details N
Business combination (Details Narrative) ¥ in Thousands | Jan. 06, 2020USD ($) | Jan. 06, 2020CNY (¥) | Dec. 14, 2018 | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Jan. 18, 2019 | Dec. 21, 2018USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 31, 2019USD ($) |
Business Combination (Textual) | ||||||||||
Percentage of capital stock acquire | 90.00% | |||||||||
Shareholders consideration, description | pursuant to which a security interest in the real property possessed by Rongentang was granted to secure the repayment of a loan of a party related to Rongentang Shareholders of up to RMB10 million (approximately $1.5 million) to a PRC commercial bank. RMB10 million (approximately $1.5 million) of the funds received by the Rongentang Shareholders in connection with the Transaction was used to pay off this loan on January 18, 2019. | |||||||||
Goodwill arising from the acquisition | $ 1,900,000 | |||||||||
Deferred financing fees, net of accumulated amortization | $ 29,740 | $ 36,571 | ||||||||
Amortization expense related to the debt discount | $ 5,953 | $ 123,819 | ||||||||
Subsequent Event [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Equity Method Investment, Amount Sold | $ 9,600,000 | |||||||||
Subsequent Event [Member] | RMB [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Equity Method Investment, Amount Sold | ¥ | ¥ 67,500 | |||||||||
Wine Co [Member] | Subsequent Event [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Equity Method Investment, Ownership Percentage | 90.00% | 90.00% | ||||||||
Kairui Tong [Member] | Subsequent Event [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Equity Method Investment, Ownership Percentage | 54.00% | 54.00% | ||||||||
Hao Huang [Member] | Subsequent Event [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Equity Method Investment, Ownership Percentage | 36.00% | 36.00% | ||||||||
Rongentang [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Ownership and payment term, description | Pursuant to the Agreement, Xianning Xiangtian paid a total cash consideration of RMB67.5 million (approximately $9.7 million) (“Total Consideration”) to be contributed into Wine Co. as registered capital. RMB60 million (approximately $8.7 million) of the Total Consideration was deposited into an escrow account held by Xianning Wenquan Branch of Agricultural Bank of China as escrow agent on December 14, 2018. | |||||||||
Aggregate consideration | $ 1,100,000 | |||||||||
Rongentang [Member] | C N Y [Member] | ||||||||||
Business Combination (Textual) | ||||||||||
Aggregate consideration | ¥ | ¥ 7,500 |
Discontinued operations (Detail
Discontinued operations (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
CURRENT ASSETS: | ||
Cash | $ 3,056,683 | $ 3,250,535 |
Accounts receivable, net | 2,822,277 | 3,928,854 |
Inventories | 5,966,635 | 6,839,579 |
Advances to suppliers | 3,415,448 | 4,723,258 |
Total current assets of discontinued operations | 3,181,397 | 4,441,772 |
OTHER ASSETS: | ||
Property, plant and equipment, net | 15,421,696 | 15,061,856 |
Intangible assets, net | 7,494,729 | 7,789,979 |
Goodwill | 3,667,992 | 3,758,145 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,448,553 | 3,164,927 |
Advance from customers | 15,210,837 | 15,599,402 |
Income taxes payable | 873,009 | 858,662 |
Total liabilities of the disposal group classified as discontinued operations | 1,397,255 | 1,499,012 |
Parent [Member] | ||
CURRENT ASSETS: | ||
Cash | 618,597 | 1,929,899 |
Accounts receivable, net | 522,292 | 471,889 |
Inventories | 1,904,460 | 1,785,176 |
Advances to suppliers | 43,130 | 181,101 |
Other receivables – related party | 11,505 | |
Other current assets | 81,413 | 73,707 |
Total current assets of discontinued operations | 3,181,397 | 4,441,772 |
OTHER ASSETS: | ||
Property, plant and equipment, net | 4,416,476 | 4,588,449 |
Intangible assets, net | 2,848,064 | 2,950,343 |
Goodwill | 1,950,448 | 1,998,387 |
Total other assets of discontinued operations | 9,214,988 | 9,537,179 |
Total assets of the disposal group classified as discontinued operations | 12,396,385 | 13,978,951 |
CURRENT LIABILITIES: | ||
Accounts payable | 18,720 | 25,266 |
Advance from customers | 1,091,573 | 1,124,608 |
Other payables and accrued liabilities | 42,524 | 42,778 |
Income taxes payable | 244,438 | 306,360 |
Total liabilities of the disposal group classified as discontinued operations | $ 1,397,255 | $ 1,499,012 |
Discontinued operations (Deta_2
Discontinued operations (Details 1) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Revenue: | ||
Revenue-products | $ 3,166,836 | $ 19,599,106 |
Total revenue | 3,166,836 | 19,988,438 |
Cost of sales-products | 3,773,780 | 15,792,923 |
Gross profit | (606,944) | 4,195,515 |
OPERATING EXPENSES: | ||
Selling expenses | 223,292 | 113,062 |
General and administrative expenses | 1,875,409 | 1,702,662 |
Total operating expenses | 3,315,955 | 1,653,884 |
Loss from operations | (3,922,899) | 2,541,631 |
Other expenses, net | 19,270 | 30,755 |
Interest income | 2,302 | 9,195 |
Total other income, net | 15,619 | (437,278) |
Loss before income taxes | (3,907,280) | 2,104,353 |
Income tax benefit | 46,196 | 526,144 |
Less: Net loss attributable to non-controlling interest from discontinued operations | (17,476) | |
Net loss from discontinued operations attributable to XT Energy Group, Inc. | (174,762) | |
Parent [Member] | ||
Revenue: | ||
Revenue-products | 73,805 | |
Total revenue | 73,805 | |
Cost of sales-products | 13,909 | |
Gross profit | 59,896 | |
OPERATING EXPENSES: | ||
Selling expenses | 7,290 | |
General and administrative expenses | 283,092 | |
Total operating expenses | 290,382 | |
Loss from operations | (230,486) | |
Other expenses, net | (147) | |
Interest income | 1,312 | |
Total other income, net | 1,165 | |
Loss before income taxes | (229,321) | |
Income tax benefit | 54,559 | |
Net loss from discontinued operations | (174,762) | |
Less: Net loss attributable to non-controlling interest from discontinued operations | (17,476) | |
Net loss from discontinued operations attributable to XT Energy Group, Inc. | $ (157,286) |
Discontinued operations (Deta_3
Discontinued operations (Details Narrative) - Subsequent Event [Member] ¥ in Thousands, $ in Thousands | Jan. 06, 2020USD ($) | Jan. 06, 2020CNY (¥) |
Entity Listings [Line Items] | ||
Equity Method Investment, Amount Sold | $ | $ 9,600 | |
RMB [Member] | ||
Entity Listings [Line Items] | ||
Equity Method Investment, Amount Sold | ¥ | ¥ 67,500 | |
Wine Co [Member] | ||
Entity Listings [Line Items] | ||
Equity Method Investment, Ownership Percentage | 90.00% | 90.00% |
Kairui Tong [Member] | ||
Entity Listings [Line Items] | ||
Equity Method Investment, Ownership Percentage | 54.00% | 54.00% |
Hao Huang [Member] | ||
Entity Listings [Line Items] | ||
Equity Method Investment, Ownership Percentage | 36.00% | 36.00% |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 5,828,263 | $ 6,096,212 |
Less: allowance for doubtful accounts | (2,483,694) | (1,695,469) |
Accounts receivable, net | 3,344,569 | 4,400,743 |
Less: accounts receivable – discontinued operations | (522,292) | (471,889) |
Accounts receivable, net – continuing operations | $ 2,822,277 | $ 3,928,854 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details1) - USD ($) | 3 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Jul. 31, 2019 | |
Receivables [Abstract] | ||
Beginning balance | $ 1,695,469 | $ 1,374,155 |
Provision for doubtful accounts | 828,686 | 422,684 |
Wrote off | (118,684) | |
Allowance acquired from acquisition | 32,478 | |
Exchange rate effect | (40,461) | (15,164) |
Ending balance | 2,483,694 | 1,695,469 |
Less: balance – discontinued operations | (31,468) | (32,242) |
Ending balance – continuing operations | $ 2,452,226 | $ 1,663,227 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 2,117,169 | $ 1,607,472 |
Work in progress | 323,748 | 258,634 |
Semi-finished goods | 383,350 | 392,772 |
Finished goods | 6,534,852 | 6,420,298 |
Total | 9,359,119 | 8,679,176 |
Less: allowance for inventory reserve | (1,488,024) | (54,421) |
Inventories, net | 7,871,095 | 8,624,755 |
Less: inventories – discontinued operations | (1,904,460) | (1,785,176) |
Inventories, net – continuing operations | $ 5,966,635 | $ 6,839,579 |
Inventories, net (Details Narra
Inventories, net (Details Narrative) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Inventories, net (Textual) | ||
Impairment of inventory | $ 1,434,549 | $ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Plant and buildings | $ 12,050,724 | $ 11,773,196 |
Machinery equipment | 9,804,282 | 9,040,901 |
Computer and office equipment | 663,000 | 668,741 |
Vehicles | 457,252 | 468,486 |
Plant improvement | 1,211,133 | 1,146,692 |
Construction in progress | 975,354 | 1,650,429 |
Subtotal | 25,161,745 | 24,748,445 |
Less: accumulated depreciation | (5,323,573) | (5,098,140) |
Property, plant and equipment, net | 19,838,172 | 19,650,305 |
Less: property, plant and equipment – discontinued operations | (4,416,476) | (4,588,449) |
Property, plant and equipment, net – continuing operations | $ 15,421,696 | $ 15,061,856 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net (Details 1) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Value | $ 975,354 | $ 1,650,429 |
Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Value | 975,354 | |
Estimated Additional Cost to Complete | $ 710,306 | |
Synthetic Fuel Raw Materials Production Line [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction-in-progress description | Synthetic fuel raw materials production line | |
Value | $ 520,650 | |
Estimated Completion date | January 2020* | |
Estimated Additional Cost to Complete | $ 1,418 | |
Automobile Exhaust Cleaner Construction Project [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction-in-progress description | Automobile exhaust cleaner construction project | |
Value | $ 433,368 | |
Estimated Completion date | January 2020* | |
Estimated Additional Cost to Complete | $ 708,888 | |
Fire Safety Equipment Installation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction-in-progress description | Fire safety equipment installation | |
Value | $ 7,158 | |
Estimated Completion date | April 2020 | |
Estimated Additional Cost to Complete | ||
Piping [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Construction-in-progress description | Piping | |
Value | $ 14,178 | |
Estimated Completion date | February 2020 | |
Estimated Additional Cost to Complete |
Property, plant and equipment_5
Property, plant and equipment, net (Details Narrative) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Property, plant and equipment, net (Textual) | ||
Depreciation expenses | $ 282,210 | $ 216,106 |
Property, Plant and Equipment [Member] | Continuing Operations [Member] | ||
Property, plant and equipment, net (Textual) | ||
Depreciation expenses | 282,210 | 216,106 |
Cost, Depreciation | 150,921 | 116,889 |
Selling, General and Administrative Expense | 131,289 | $ 99,217 |
Property, Plant and Equipment [Member] | Discontinued Operations [Member] | ||
Property, plant and equipment, net (Textual) | ||
Depreciation expenses | 65,434 | |
Cost, Depreciation | 46,171 | |
Selling, General and Administrative Expense | $ 19,263 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 10,342,793 | $ 10,740,322 |
Less: accumulated amortization | (867,522) | (715,376) |
Less: intangible assets – discontinued operations | (2,848,064) | (2,950,343) |
Intangible assets, net – continuing operations | 7,494,729 | 7,789,979 |
Land Use Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 7,054,287 | 7,227,670 |
Technology Know-hows [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 1,798,101 | 1,812,147 |
Patents, Licenses and Certifications [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | 2,350,655 | 2,408,430 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 7,272 | $ 7,451 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details 1) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 677,159 | |
2021 | 675,149 | |
2022 | 673,803 | |
2023 | 672,576 | |
2024 | 671,597 | |
Thereafter | 6,972,509 | |
Total | 10,342,793 | $ 10,740,322 |
Less: intangible assets – discontinued operations | (2,848,064) | (2,950,343) |
Total intangible assets, net – continuing operations | $ 7,494,729 | $ 7,789,979 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Balance as of July 31, 2019 | $ 3,758,145 | ||
Goodwill impairment | 0 | $ 0 | $ (339,221) |
Balance as of October 31, 2019 | 3,667,992 | 3,758,145 | |
Total Reportable Segment [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Balance as of July 31, 2019 | 5,756,532 | 4,133,143 | 4,133,143 |
Goodwill acquired through acquisitions | 1,976,878 | ||
Goodwill impairment | (339,221) | ||
Foreign currency translation adjustment | (138,092) | (14,268) | |
Balance as of October 31, 2019 | 5,618,440 | 5,756,532 | |
Less: goodwill – discontinued operations | (1,950,448) | ||
Goodwill – continuing operations | 3,667,992 | ||
Wine Co. and Herbal Wine Co [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Balance as of July 31, 2019 | 1,998,387 | ||
Goodwill acquired through acquisitions | 1,976,878 | ||
Goodwill impairment | |||
Foreign currency translation adjustment | (47,939) | 21,509 | |
Balance as of October 31, 2019 | 1,950,448 | 1,998,387 | |
Less: goodwill – discontinued operations | (1,950,448) | ||
Goodwill – continuing operations | |||
Hubei Jinli [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Balance as of July 31, 2019 | 3,758,145 | 3,793,245 | 3,793,245 |
Goodwill acquired through acquisitions | |||
Goodwill impairment | |||
Foreign currency translation adjustment | (90,153) | (35,100) | |
Balance as of October 31, 2019 | 3,667,992 | 3,758,145 | |
Less: goodwill – discontinued operations | |||
Goodwill – continuing operations | 3,667,992 | ||
Tianjin Jiabaili [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Balance as of July 31, 2019 | $ 339,898 | 339,898 | |
Goodwill acquired through acquisitions | |||
Goodwill impairment | (339,221) | ||
Foreign currency translation adjustment | (677) | ||
Balance as of October 31, 2019 | |||
Less: goodwill – discontinued operations | |||
Goodwill – continuing operations |
Intangible assets, net (Detai_3
Intangible assets, net (Details Narrative) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Intangible assets, net (Textual) | ||
Amortization expenses | $ 137,770 | $ 186,902 |
Continuing Operations [Member] | ||
Intangible assets, net (Textual) | ||
Amortization expenses | 137,770 | $ 186,902 |
Discontinued Operations [Member] | ||
Intangible assets, net (Textual) | ||
Amortization expenses | $ 31,495 |
Leases (Details)
Leases (Details) | Oct. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 936,167 |
2021 | 1,026,054 |
2022 | 424,786 |
2023 | 425 |
Thereafter | 1,276 |
Total lease payments | 2,388,708 |
Less: Interest | (130,998) |
Present value of lease liabilities | $ 2,257,710 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Leases (Textual) | ||
Operating lease right of use assets | $ 2,600,000 | |
Present Value of Future Minimum Lease Payments, Sale Leaseback Transactions | $ 2,300,000 | |
Weighted average remaining lease term | 3.15 years | |
Rent expenses | $ 327,000 | $ 82,000 |
Minimum [Member] | ||
Leases (Textual) | ||
Capital Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 4.75% | |
Maximum [Member] | ||
Leases (Textual) | ||
Capital Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 4.90% |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Related party balances | $ 20,779 | $ 6,537 |
Lei su [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Legal representative of Tianjin Jiabaili | |
Nature | Employee advances | |
Related party balances | 2,905 | |
Tianyu Ma [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | General manager of Tianjin Jiabaili | |
Nature | Employee advances | |
Related party balances | $ 10,146 | |
Heping Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | General Manager of Hubei Jinli | |
Nature | Employee advances | |
Related party balances | $ 7,089 | |
Deng Hua Zhou [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Chief Executive Officer | |
Nature | Employee advances | |
Related party balances | $ 3,544 | $ 3,632 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details 1) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Related party balances | $ 11,413 | $ 9,554 |
Xianning Baizhuang Tea Industry Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Relationship | Bin Zhou is the CEO of the company | |
Nature | Purchase of materials | |
Related party balances | $ 11,413 | $ 9,554 |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details 2) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Jul. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Related party balances | $ 6,912,433 | $ 6,375,385 |
Luck Sky International Investment Holdings Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Owned by Zhou Deng Rong, former Chief Executive Officer and director | |
Nature | Payment for U.S. professional fee | |
Related party balances | $ 625,441 | 593,941 |
Lucksky Group [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Owned by Zhou Deng Rong, former Chief Executive Officer and director, and Zhou Jian, Chairman | |
Nature | Lease payable | |
Related party balances | $ 615,450 | 600,549 |
Sanhe Dong Yi [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Owned by Zhou Deng Rong, former Chief Executive Officer and director | |
Nature | Lease payable | |
Related party balances | $ 2,552 | 872 |
Hubei Henghao Real Estate Development Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Bin Zhou, son of Zhou Deng Hua, is the executive director and general manager | |
Nature | Interest payable | |
Related party balances | $ 476,737 | 488,455 |
Zhou Deng Rong [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Former Chief Executive Officer and director | |
Nature | Payment for U.S. professional fee | |
Related party balances | $ 2,748,260 | 2,748,259 |
Jian Zhou [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Chairman | |
Nature | Advances for operational purpose | |
Related party balances | $ 2,401,884 | 1,900,164 |
Zhimin Feng [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | Legal representative of Jingshan Sanhe | |
Nature | Advances for operational purpose | |
Related party balances | $ 3,144 | 3,222 |
Heping Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Description of Transaction | General Manager of Hubei Jinli | |
Nature | Payment for acquisition of Hubei Jinli | |
Related party balances | $ 38,965 | $ 39,923 |
Related party balances and tr_6
Related party balances and transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Lease description | The space in the office, factory and dormitory being leased are 1,296, 5,160 and 1,200 square meters, respectively. The office and factory space are leased for a rent of $105,053 (RMB 697,248) per year and the dormitory is leased for a rent of $19,527 (RMB 129,600) per year. The leases expire on July 31, 2024 and are subject to renewal with two-month advance written notice. This lease was terminated in April 2019. For the three months ended October 31, 2019 and 2018, rent expense for the lease with Lucksky Group was $0 and $30,054, respectively. | |
Rent expense | $ 327,000 | $ 82,000 |
Sanhe Dong Yi [Member] | ||
Related Party Transaction [Line Items] | ||
Lease description | the lease term expired on June 14, 2019 for a rent of approximately $7,000 (RMB 48,000) per year. | |
Rent expense | $ 1,701 | $ 1,745 |
Significant customer, former _2
Significant customer, former related party (Details Narrative) | Feb. 02, 2018USD ($)ft² | Feb. 02, 2018CNY (¥)ft² | Jul. 27, 2018USD ($)ft² | Jul. 27, 2018CNY (¥)ft² | Jul. 27, 2016USD ($)ft² | Jul. 27, 2016CNY (¥)ft² | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Apr. 10, 2014ft² | Apr. 08, 2014 |
Related Party Transaction [Line Items] | ||||||||||
Rent expense related to the leases | $ 327,000 | $ 82,000 | ||||||||
Xianning Xiangtian [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Factory leased space | ft² | 4,628 | 4,628 | 3,128 | 3,128 | 4,628 | 4,628 | ||||
Payments for rent | $ 25,000 | $ 83,132 | ||||||||
Lease expiration, description | from August 1, 2018 to July 31, 2020 and is subject to renewal with a one-month advance written notice. | from August 1, 2018 to July 31, 2020 and is subject to renewal with a one-month advance written notice. | the Company terminated the lease early in February 2018 when the Company through Xiangtian Zhongdian signed another lease agreement which expired on February 5, 2019 with a rent of approximately $25,000 (RMB 168,922) | the Company terminated the lease early in February 2018 when the Company through Xiangtian Zhongdian signed another lease agreement which expired on February 5, 2019 with a rent of approximately $25,000 (RMB 168,922) | ||||||
Rent expense related to the leases | $ 17,000 | 5,986 | 0 | |||||||
Xianning Xiangtian [Member] | RMB [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments for rent | ¥ | ¥ 168,922 | ¥ 555,360 | ||||||||
Rent expense related to the leases | ¥ | ¥ 114,172 | |||||||||
Xianning Xiangtian One [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Rent expense related to the leases | 5,671 | 6,250 | ||||||||
Xianning Xiangtian One [Member] | Lease Amount [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Rent expense related to the leases | 4,046 | 3,464 | ||||||||
Luck Sky Hong Kong Aerodynamic Electricity Limited [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenues from a significant customer | $ 2,000 | $ 1,011,000 | ||||||||
Zhou Deng Rong [Member] | Luck Sky Hong Kong Aerodynamic Electricity Limited [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Owners, percentage | 70.00% | 70.00% | ||||||||
Land use right for approximately acres | ft² | 0.70 | |||||||||
Zhou Jian [Member] | Luck Sky Hong Kong Aerodynamic Electricity Limited [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Owners, percentage | 30.00% | 30.00% |
Employee benefits government _2
Employee benefits government plan (Details Narrative) - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Retirement Benefits [Abstract] | ||
Outstanding amount due to the local labor bureau | $ 201,094 | $ 199,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current | $ (8,363) | $ 543,513 |
Deferred | (17,369) | |
Provision for income tax (income tax benefit) | (8,363) | 526,144 |
Less: income tax benefit – discontinued operations | (54,559) | |
Provision for income tax – continuing operations | $ 46,196 | $ 526,144 |
Income Taxes (Details 1)
Income Taxes (Details 1) - Continuing Operations [Member] - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 2,357,800 | $ 1,967,400 |
Accounts receivable allowance | 613,100 | 415,800 |
Inventory allowance | 372,000 | 13,600 |
Deposit for investment allowance | 77,600 | 79,500 |
Accrued liabilities | 70,300 | 72,000 |
Warranty and other | 15,900 | 16,300 |
Deferred tax assets before valuation allowance | 3,506,700 | 2,564,600 |
Less: valuation allowance | (3,506,700) | (2,564,600) |
Net deferred tax assets |
Income Taxes (Details 2)
Income Taxes (Details 2) - Discontinued Operations [Member] - USD ($) | Oct. 31, 2019 | Jul. 31, 2019 |
Deferred tax assets: | ||
Accounts receivable allowance | $ 7,900 | $ 8,100 |
Less: valuation allowance | (7,900) | (8,100) |
Net deferred tax assets |
Income taxes (Details Narrative
Income taxes (Details Narrative) | 3 Months Ended |
Oct. 31, 2019 | |
Income taxes (Textual) | |
Net operating loss carryforwards, description | the Company had U.S. federal Net Operating Losses ("NOLs") of approximately $5,404,000 that expire beginning in 2029 to 2038 with deferred tax assets of approximately $1,135,000 |
United States [Member] | |
Income taxes (Textual) | |
Corporate tax rate | 21.00% |
Hong Kong [Member] | |
Income taxes (Textual) | |
Corporate tax rate | 16.50% |
Net operating loss carryforwards, description | the Company had approximately $30,000 of NOLs related to its Hong Kong holding companies that can be carried forward indefinitely with deferred tax assets of approximately $5,000. |
PRC [Member] | |
Income taxes (Textual) | |
Corporate tax rate | 25.00% |
Net operating loss carryforwards, description | the Company had approximately $4,872,000 of NOLs related to its PRC subsidiaries and VIEs that expire in years 2019 through 2023 with deferred tax assets of approximately $1,218,000. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Oct. 31, 2019USD ($) |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |
Total | $ 568,102 |
Labor [Member] | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |
Total | 992 |
Negotiable instruments [Member] | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | |
Total | $ 567,110 |
Commitments and contingencies_3
Commitments and contingencies (Details Narrative) | Jun. 11, 2019USD ($) | Jun. 11, 2019CNY (¥) | Jun. 05, 2019USD ($) | Jun. 05, 2019CNY (¥) | Jan. 24, 2018USD ($) | Jan. 24, 2018CNY (¥) | Dec. 23, 2019USD ($) | Dec. 23, 2019CNY (¥) | Jul. 23, 2019 | Apr. 15, 2019USD ($) | Apr. 15, 2019CNY (¥) | Mar. 19, 2019USD ($) | Mar. 19, 2019CNY (¥) | Nov. 29, 2018USD ($) | Nov. 29, 2018CNY (¥) | Oct. 31, 2019USD ($) | Oct. 31, 2019CNY (¥) |
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | $ 300,000 | ||||||||||||||||
Payment of unpaid equity transfer | 300,000 | ||||||||||||||||
Liquidated damages | 600,000 | ||||||||||||||||
Labor dispute, Description | Regarding the labor dispute lawsuit between Qiao Lijuan and Tianjin JiaBaiLi Petroleum Products Co., Ltd. (Hereinafter referred to as “JiaBaiLi”), on July 23, 2019, Qiao Lijuan sued JiaBaiLi (Defendant A) and the 1st Sales Company of JiaBaiLi (Defendant B) before Jizhou Court claiming Defendant B to pay RMB 7,000 (approximately $1,000) for salary, Defendant A to bear the joint and several liability and both Defendant A and B to bear the litigation fees. On October 23, 2019, Jizhou Court reached a verdict that Defendant A must pay Qiao Lijuan salary of RMB 11,000 (approximately $1,600). The Company does not believe the litigation will have a material impact on its current operations and financial statements. | ||||||||||||||||
Xiangtian Zhongdian [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Instruments dispute | $ 600,000 | ||||||||||||||||
RMB [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | ¥ | ¥ 2,000,000 | ||||||||||||||||
Payment of unpaid equity transfer | ¥ | ¥ 1,720,000 | ||||||||||||||||
Liquidated damages | $ 3,720,000 | ||||||||||||||||
RMB [Member] | Xiangtian Zhongdian [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Instruments dispute | ¥ | ¥ 4,000,000 | ||||||||||||||||
Sanhe Xiangtian [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | $ 2,300,000 | $ 149,245 | $ 610,284 | ||||||||||||||
Associated fees | $ 3,000 | ||||||||||||||||
Liquidated damages | $ 302,242 | ||||||||||||||||
Sanhe Xiangtian [Member] | Subsequent Event [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | $ 610,284 | ||||||||||||||||
Liquidated damages | $ 126,657 | ||||||||||||||||
Sanhe Xiangtian [Member] | RMB [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | ¥ | ¥ 15,826,000 | ¥ 1,000,000 | ¥ 4,089,150 | ||||||||||||||
Associated fees | ¥ | ¥ 23,000 | ||||||||||||||||
Liquidated damages | ¥ | ¥ 2,025,139 | ||||||||||||||||
Sanhe Xiangtian [Member] | RMB [Member] | Subsequent Event [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | ¥ | ¥ 4,089,150 | ||||||||||||||||
Liquidated damages | ¥ | ¥ 848,655 | ||||||||||||||||
Xianning Xiangtian [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | $ 300,000 | ||||||||||||||||
Payment of unpaid equity transfer | $ 800,000 | ||||||||||||||||
[custom:AnnualInterestRates-0] | 6.00% | 6.00% | |||||||||||||||
Xianning Xiangtian [Member] | RMB [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Claim for damages | ¥ | ¥ 2,000,000 | ||||||||||||||||
Payment of unpaid equity transfer | ¥ | ¥ 5,080,000 | ||||||||||||||||
Wenhan Han And Guifen Wangs [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Personal assets | $ 1,000,000 | ||||||||||||||||
Wenhan Han And Guifen Wangs [Member] | RMB [Member] | |||||||||||||||||
Commitments and Contingencies (Textual) | |||||||||||||||||
Personal assets | ¥ | ¥ 7,080,000 |
Concentrations (Details Narrati
Concentrations (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2019 | |
Vendor One [Member] | Accounts Payable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 44.60% | 49.80% | |
Vendor Two [Member] | Accounts Payable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 12.30% | 13.70% | |
Vendor Three [Member] | Accounts Payable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 11.40% | ||
Purchases [Member] | Vendor One [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 13.80% | 42.50% | |
Purchases [Member] | Vendor Two [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 12.20% | 25.80% | |
Customer One [Member] | Revenue Benchmark [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 25.10% | 43.30% | |
Customer One [Member] | Accounts Receivable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 17.90% | 20.80% | |
Customer Two [Member] | Revenue Benchmark [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 17.90% | 18.10% | |
Customer Two [Member] | Accounts Receivable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 13.40% | 17.70% | |
Customer Three [Member] | Revenue Benchmark [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 14.80% | 14.00% | |
Customer Three [Member] | Accounts Receivable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 13.30% | 17.30% | |
Customer Four [Member] | Revenue Benchmark [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 11.10% | ||
Customer Four [Member] | Accounts Receivable [Member] | |||
Concentrations (Textual) | |||
Concentration risk, percentage | 10.30% | 12.90% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2019 | |
Entity Listings [Line Items] | |||
Revenues - continuing operations | $ 3,166,836 | $ 19,988,438 | |
Gross profit - continuing operations | (606,944) | 4,195,515 | |
(Loss) income from operations - continuing operations | (3,922,899) | 2,541,631 | |
Net (loss) income attributable to controlling interest - continuing operations | (3,867,733) | 1,375,767 | |
Consolidated interest expense | 5,953 | 477,228 | |
Total assets - continuing operations | 61,212,788 | $ 64,376,788 | |
Discontinued Operations [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | (73,805) | ||
Gross profit - continuing operations | (59,896) | ||
(Loss) income from operations - continuing operations | 230,486 | ||
Net (loss) income attributable to controlling interest - continuing operations | 157,286 | ||
Depreciation and amortization expenses - continuing operations | (96,928) | ||
Capital expenditures - continuing operations | (3,549) | ||
Total assets - continuing operations | (12,396,385) | (13,978,950) | |
Continuing Operations [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 3,166,836 | 19,988,438 | |
Gross profit - continuing operations | (606,944) | 4,195,515 | |
(Loss) income from operations - continuing operations | (3,922,899) | 2,541,631 | |
Net (loss) income attributable to controlling interest - continuing operations | (3,710,447) | 1,375,767 | |
Depreciation and amortization expenses - continuing operations | 419,980 | 403,008 | |
Capital expenditures - continuing operations | 1,024,596 | 478,662 | |
Total assets - continuing operations | 48,816,403 | 50,397,838 | |
Consolidated Entities [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 3,240,641 | 19,988,438 | |
Gross profit - continuing operations | (547,048) | 4,195,515 | |
(Loss) income from operations - continuing operations | (4,153,385) | 2,541,631 | |
Net (loss) income attributable to controlling interest - continuing operations | (3,867,733) | 1,375,767 | |
Depreciation and amortization expenses - continuing operations | 516,908 | 403,008 | |
Consolidated interest expense | 5,953 | 477,228 | |
Capital expenditures - continuing operations | 1,028,145 | 478,662 | |
Total assets - continuing operations | 61,212,788 | 64,376,788 | |
Sanhe Xiangtian [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 1,523 | 1,920,878 | |
Gross profit - continuing operations | 1,523 | 707,409 | |
(Loss) income from operations - continuing operations | (1,020,922) | 669,762 | |
Net (loss) income attributable to controlling interest - continuing operations | (973,857) | 547,514 | |
Depreciation and amortization expenses - continuing operations | 31,066 | 43,063 | |
Consolidated interest expense | 6,041 | ||
Capital expenditures - continuing operations | 47,031 | ||
Total assets - continuing operations | 3,692,238 | 4,889,875 | |
Xianning Xiangtian [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 62,801 | 4,233,629 | |
Gross profit - continuing operations | (949,437) | 853,785 | |
(Loss) income from operations - continuing operations | (1,305,638) | 622,068 | |
Net (loss) income attributable to controlling interest - continuing operations | (1,308,464) | 209,416 | |
Depreciation and amortization expenses - continuing operations | 570 | 57 | |
Consolidated interest expense | 5,953 | 413,105 | |
Capital expenditures - continuing operations | 2,340 | 1,265 | |
Total assets - continuing operations | 7,039,892 | 7,969,624 | |
Jingshan Sanhe [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 39,608 | 3,576,328 | |
Gross profit - continuing operations | 4,138 | 1,187,491 | |
(Loss) income from operations - continuing operations | (712,977) | 1,012,957 | |
Net (loss) income attributable to controlling interest - continuing operations | (712,689) | 757,356 | |
Depreciation and amortization expenses - continuing operations | 81,888 | 8,705 | |
Capital expenditures - continuing operations | 1,014,504 | 265,323 | |
Total assets - continuing operations | 9,050,508 | 6,969,849 | |
Xiangtian Zhongdian [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 1,697,349 | 9,101,868 | |
Gross profit - continuing operations | (447,356) | 908,334 | |
(Loss) income from operations - continuing operations | (819,022) | 801,752 | |
Net (loss) income attributable to controlling interest - continuing operations | (567,067) | 472,364 | |
Depreciation and amortization expenses - continuing operations | 68,529 | 74,890 | |
Capital expenditures - continuing operations | 8,040 | ||
Total assets - continuing operations | 6,450,049 | 7,731,512 | |
Hubei Jinli [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 1,364,077 | 1,155,735 | |
Gross profit - continuing operations | 784,155 | 538,496 | |
(Loss) income from operations - continuing operations | 292,641 | 107,436 | |
Net (loss) income attributable to controlling interest - continuing operations | 204,133 | 63,268 | |
Depreciation and amortization expenses - continuing operations | 232,416 | 221,785 | |
Consolidated interest expense | 58,082 | ||
Capital expenditures - continuing operations | 7,752 | 144,643 | |
Total assets - continuing operations | 21,439,029 | 21,635,194 | |
Xiangtian Trade [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 1,478 | ||
Gross profit - continuing operations | 33 | ||
(Loss) income from operations - continuing operations | (13,380) | ||
Net (loss) income attributable to controlling interest - continuing operations | (10,567) | ||
Depreciation and amortization expenses - continuing operations | 293 | ||
Total assets - continuing operations | 454,822 | 483,168 | |
Wine Co [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 3,152 | ||
Gross profit - continuing operations | 392 | ||
(Loss) income from operations - continuing operations | (240,594) | ||
Net (loss) income attributable to controlling interest - continuing operations | (164,727) | ||
Depreciation and amortization expenses - continuing operations | 82,138 | ||
Capital expenditures - continuing operations | 3,549 | ||
Total assets - continuing operations | 9,468,884 | 11,005,886 | |
Herbal Wine Co [Member] | |||
Entity Listings [Line Items] | |||
Revenues - continuing operations | 70,653 | ||
Gross profit - continuing operations | 59,504 | ||
(Loss) income from operations - continuing operations | 10,108 | ||
Net (loss) income attributable to controlling interest - continuing operations | 7,441 | ||
Depreciation and amortization expenses - continuing operations | 14,790 | ||
Total assets - continuing operations | 2,927,501 | 2,973,064 | |
Tianjin Jiabaili [Member] | |||
Entity Listings [Line Items] | |||
(Loss) income from operations - continuing operations | (27,848) | (176,912) | |
Net (loss) income attributable to controlling interest - continuing operations | (27,752) | (180,132) | |
Depreciation and amortization expenses - continuing operations | 5,218 | 54,508 | |
Capital expenditures - continuing operations | 12,360 | ||
Total assets - continuing operations | 321,704 | 302,518 | |
All Four Holding Entities [Member] | |||
Entity Listings [Line Items] | |||
(Loss) income from operations - continuing operations | (315,753) | (495,432) | |
Net (loss) income attributable to controlling interest - continuing operations | (314,184) | $ (494,019) | |
Total assets - continuing operations | $ 368,161 | $ 416,098 |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - Subsequent Event [Member] ¥ in Thousands, $ in Thousands | Jan. 06, 2020USD ($) | Jan. 06, 2020CNY (¥) |
Subsequent Event [Line Items] | ||
Equity Method Investment, Amount Sold | $ | $ 9,600 | |
Sale of Stock, Consideration Received on Transaction | $ | $ 5,700 | |
RMB [Member] | ||
Subsequent Event [Line Items] | ||
Equity Method Investment, Amount Sold | ¥ | ¥ 67,500 | |
Sale of Stock, Consideration Received on Transaction | ¥ | ¥ 40,000 | |
Wine Co [Member] | ||
Subsequent Event [Line Items] | ||
Equity Method Investment, Ownership Percentage | 90.00% | 90.00% |
Kairui Tong [Member] | ||
Subsequent Event [Line Items] | ||
Equity Method Investment, Ownership Percentage | 54.00% | 54.00% |
Hao Huang [Member] | ||
Subsequent Event [Line Items] | ||
Equity Method Investment, Ownership Percentage | 36.00% | 36.00% |