Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | China Customer Relations Centers, Inc. |
Entity Central Index Key | 1,620,664 |
Amendment Flag | false |
Trading Symbol | CCRC |
Current Fiscal Year End Date | --12-31 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,016 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 18,329,600 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 15,947,268 | $ 13,623,849 |
Accounts receivable, net | 13,595,396 | 8,852,024 |
Accounts receivable - related party | 353,513 | |
Notes receivable, current | 547,259 | 125,687 |
Prepayments | 504,780 | 708,549 |
Due from related parties | 248,866 | 675,623 |
Deferred tax assets, current | 69,864 | |
Other current assets | 1,041,923 | 1,045,932 |
Total current assets | 31,955,356 | 25,385,177 |
Restricted cash | 500,000 | 500,000 |
Notes receivable - related party, non-current | 907,297 | 970,620 |
Property and equipment, net | 4,360,976 | 4,129,561 |
Deferred tax assets, non-current | 23,974 | |
Total non-current assets | 5,768,273 | 5,624,155 |
Total assets | 37,723,629 | 31,009,332 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 664,838 | 310,216 |
Accounts payable - related party | 129,489 | |
Accrued liabilities and other payables | 3,603,471 | 3,333,960 |
Deferred revenue | 607,160 | |
Wages payable | 2,885,735 | 2,803,294 |
Income taxes payable | 883,654 | 1,014,595 |
Short term loans | 1,748,479 | |
Due to related parties | 446,050 | |
Deferred tax liabilities, current | 35,273 | |
Total current liabilities | 9,220,397 | 9,245,817 |
Total liabilities | 9,220,397 | 9,245,817 |
Shareholders' equity | ||
Common shares, $0.001 par value, 100,000,000 shares authorized, 18,329,600 shares issued and outstanding as of December 31, 2016 and 2015 | 18,330 | 18,330 |
Additional paid-in capital | 11,178,774 | 11,178,774 |
Retained earnings | 17,226,261 | 9,728,228 |
Statutory reserves | 2,067,835 | 1,288,617 |
Accumulated other comprehensive loss | (1,987,968) | (450,434) |
Total shareholders' equity | 28,503,232 | 21,763,515 |
Total liabilities and shareholders' equity | $ 37,723,629 | $ 31,009,332 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 18,329,600 | 18,329,600 |
Common stock, shares outstanding | 18,329,600 | 18,329,600 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues, net | $ 72,731,706 | $ 59,350,721 | $ 42,661,732 |
Revenues - related party | 11,407 | ||
Total revenues | 72,731,706 | 59,350,721 | 42,673,139 |
Cost of revenues | 53,098,552 | 46,891,617 | 35,188,331 |
Gross profit | 19,633,154 | 12,459,104 | 7,484,808 |
Operating expenses: | |||
Selling, general and administrative expenses | 11,082,106 | 7,259,279 | 5,779,600 |
Total operating expenses | 11,082,106 | 7,259,279 | 5,779,600 |
Income from operations | 8,551,048 | 5,199,825 | 1,705,208 |
Other income (expenses): | |||
Interest expense | (50,383) | (278,363) | (552,894) |
Government grants | 801,125 | 1,027,581 | 1,439,186 |
Other income | 479,387 | 225,306 | 64,873 |
Other expense | (55,003) | (124,273) | (238,413) |
Total other income | 1,175,126 | 850,051 | 712,752 |
Income before provision for income taxes | 9,726,174 | 6,049,876 | 2,417,960 |
Income tax provision | 1,448,923 | 1,275,633 | 635,859 |
Net income | 8,277,251 | 4,774,243 | 1,782,101 |
Comprehensive income | |||
Net income | 8,277,251 | 4,774,243 | 1,782,101 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | (1,537,534) | (684,590) | 27,280 |
Total comprehensive income | $ 6,739,717 | $ 4,089,653 | $ 1,809,381 |
Earnings per common share | |||
Basic | $ 0.45 | $ 0.30 | $ 0.11 |
Diluted | $ 0.45 | $ 0.30 | $ 0.11 |
Weighted average common shares outstanding | |||
Basic | 18,329,600 | 16,015,079 | 15,586,865 |
Diluted | 18,329,600 | 16,015,079 | 15,586,865 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Statutory Reserves | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2013 | $ 2,852,681 | $ 15,295 | $ (1,829,991) | $ 533,863 | $ 3,926,638 | $ 206,876 |
Balance, Shares at Dec. 31, 2013 | 15,294,800 | |||||
Net income | 1,782,101 | 1,782,101 | ||||
Issuance of common shares for cash | 1,174,380 | $ 635 | 1,173,745 | |||
Issuance of common shares for cash, Shares | 634,800 | |||||
Capital contribution from owners | 3,340,396 | 3,340,396 | ||||
Foreign currency translation adjustment | 27,280 | 27,280 | ||||
Transfer to reserve | 247,868 | (247,868) | ||||
Balance at Dec. 31, 2014 | 9,176,838 | $ 15,930 | 2,684,150 | 781,731 | 5,460,871 | 234,156 |
Balance, Shares at Dec. 31, 2014 | 15,929,600 | |||||
Net income | 4,774,243 | 4,774,243 | ||||
Issuance of common shares for cash | 8,497,024 | $ 2,400 | 8,494,624 | |||
Issuance of common shares for cash, Shares | 2,400,000 | |||||
Foreign currency translation adjustment | (684,590) | (684,590) | ||||
Transfer to reserve | 506,886 | (506,886) | ||||
Balance at Dec. 31, 2015 | 21,763,515 | $ 18,330 | 11,178,774 | 1,288,617 | 9,728,228 | (450,434) |
Balance, Shares at Dec. 31, 2015 | 18,329,600 | |||||
Net income | 8,277,251 | 8,277,251 | ||||
Foreign currency translation adjustment | (1,537,534) | (1,537,534) | ||||
Transfer to reserve | 779,218 | (779,218) | ||||
Balance at Dec. 31, 2016 | $ 28,503,232 | $ 18,330 | $ 11,178,774 | $ 2,073,060 | $ 17,271,379 | $ (1,990,149) |
Balance, Shares at Dec. 31, 2016 | 18,329,600 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 8,277,251 | $ 4,774,243 | $ 1,782,101 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,542,352 | 1,340,961 | 1,342,258 |
Allowance for doubtful accounts | 805,870 | 145,076 | |
Gain on disposal of property and equipment | (11,948) | ||
Deferred income taxes | (84,067) | (172,000) | 109,657 |
Changes in assets and liabilities: | |||
Accounts receivable | (5,561,722) | (2,499,956) | (3,251,749) |
Accounts receivable - related party | (11,407) | ||
Due from related parties | (114,670) | 468,555 | |
Due to related parties | (2,394) | 3,493 | |
Prepayments | (767,516) | (447,311) | (489,918) |
Other current assets | (63,669) | (191,536) | (234,429) |
Accounts payable | 193,639 | 113,033 | 18,998 |
Accounts payable - related party | 25,276 | ||
Wage payable | 277,335 | 908,720 | 267,931 |
Income taxes payable | (67,681) | 586,931 | 106,833 |
Deferred revenue | 634,644 | ||
Accrued liabilities and other payables | 454,572 | 1,277,678 | 250,276 |
Net cash provided by operating activities | 5,666,284 | 5,956,771 | 495,727 |
Cash flows from investing activities | |||
Purchase of property and equipment | (478,775) | (1,614,696) | (965,118) |
Change of restricted cash | (500,000) | ||
Proceeds from sale of property and equipment | 14,363 | ||
Loans to third parties | (563,896) | (132,742) | |
Repayment from third parties | 130,172 | ||
Advance to related parties | (18,210) | (930,536) | (1,986,421) |
Repayment from related parties | 40,011 | 1,095,087 | 1,633,073 |
Net cash used in investing activities | (1,020,870) | (1,950,145) | (1,306,673) |
Cash flows from financing activities | |||
Proceeds from issuances of common shares | 8,497,024 | 1,174,380 | |
Capital contribution | 3,340,396 | ||
Proceeds from related parties | 32,543 | ||
Repayment to related parties | (3,749,916) | ||
Borrowings from short term loan | 3,800,367 | 7,386,830 | |
Repayment of short term loans | (1,510,962) | (7,478,890) | (8,001,883) |
Net cash provided by (used in) financing activities | (1,510,962) | 4,818,501 | 182,350 |
Effect of exchange rate changes on cash and cash equivalents | (811,033) | (298,287) | 11,043 |
Net change in cash and cash equivalents | 2,323,419 | 8,526,839 | (617,553) |
Cash and cash equivalents, beginning of the year | 13,623,849 | 5,097,010 | 5,714,563 |
Cash and cash equivalents, end of the year | 15,947,268 | 13,623,849 | 5,097,010 |
Supplemental cash flow information | |||
Interest paid | 50,383 | 278,363 | 552,894 |
Income taxes paid | 1,558,290 | 915,895 | 490,318 |
Non-cash investing and financing activities | |||
Transfer from prepayments to property and equipment | 932,192 | 405,924 | 289,806 |
Liabilities assumed in connection with purchase of property and equipment | 672,715 | 23,900 | 68,839 |
Short term loan reclassified to due to related party | 203,048 | ||
Operating expenses paid by related parties | $ 107,634 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
Organization [Abstract] | |
ORGANIZATION | Note 1 – ORGANIZATION China Customer Relations Centers, Inc. (the “Company”), was incorporated on March 6, 2014 under the laws of British Virgin Islands. China BPO Holdings Limited (“CBPO”), the Company’s 100% owned subsidiary, was established in Hong Kong on March 28, 2014 as a limited liability company. Other than the equity interest in CBPO, the Company does not own any material assets or liabilities except for cash and restricted cash and other receivables as disclosed in the table at page F-10 or conduct any operations. CBPO holds all of the outstanding equity interest in Shandong Juncheng Information Technology Co., Ltd., a company established on August 19, 2014 in the People’s Republic of China (“PRC”) as a wholly foreign owned enterprise (“WFOE”). Other than the equity interest in WFOE, CBPO does not own any material assets or liabilities except for cash, long term investment, and other payables as disclosed in the table at page F-10 or conduct any operations. Shandong Taiying Technology Co., Ltd (“Taiying”) was incorporated on December 18, 2007 as a domestic Chinese corporation. Taiying and its fourteen wholly owned or majority owned subsidiaries are engaged in business process outsourcing (“BPO”), acting as a service provider focusing on the complex voice-based segment of customer care services, including customer relationship management, sales, customer retention, marketing surveys and research for some of China’s big enterprises. The Company does not conduct any substantive operations of its own, rather, it conducts its primary business operations through WFOE, which in turn, conducts its business through Taiying. Effective control over Taiying was transferred to the Company through the series of contractual arrangements without transferring legal ownership in Taiying (“reorganization”). As a result of these contractual arrangements, the Company maintained the ability to approve decisions made by Taiying and was entitled to substantially all of the economic benefits of Taiying. Under the laws and regulations of the PRC, foreign persons and foreign companies are restricted from investing directly in certain businesses within the PRC. Call center businesses are subject to these restrictions on foreign investment. In order to comply with these laws and regulations, on September 3, 2014, Taiying and its sole shareholder, Beijing Taiying Anrui Holding Co., Ltd. (“Beijing Taiying”), entered into an entrusted management agreement with WFOE, which provides that WFOE will be entitled to the full guarantee for the performance of such contracts, agreements or transactions entered into by Taiying. WFOE is also entitled to receive the residual return of Taiying. As a result of the agreement, WFOE will absorb 100% of the expected losses and gains of Taiying. WFOE also entered into a pledge of equity agreement with Taiying’s sole shareholder, Beijing Taiying, who pledged all its equity interest in these entities to WFOE. The pledge of equity agreement, which was entered into by Beijing Taiying, pledged its equity interest in WFOE as a guarantee for the entrustment payment under the Entrusted Management Agreement. The provincial Administration for Industry and Commerce approved and registered such pledge of equity by which WFOE owns the right of pledge legally. In addition, WFOE entered into an option agreement to acquire its sole shareholder’s equity interest in these entities at such times as it may wish to do so. The followings are brief descriptions of contracts entered between WFOE, Taiying and its sole shareholder, Beijing Taiying: (1) Entrusted Management Agreement. (2) Exclusive Option Agreement. (3) Shareholder’s Voting Proxy Agreement. (4) Pledge of Equity Agreement Upon executing the above agreements, Taiying is considered a Variable Interest Entity (“VIE”) and WFOE is the primary beneficiary. Accordingly, Taiying is consolidated into WFOE under the guidance of FASB Accounting Standards Codification (“ASC”) 810, Consolidation. Except for the disclosed above, there are no arrangements that could require the Company to provide financial support to Taiying, including events or circumstances that could expose the Company to a loss. As stated in the disclosure of various agreements between the Company and Taiying, the Company has rights to acquire any portion of the equity interests of Taiying. Also, the Company may allocate its available funds to Taiying for business purposes. There are no fixed terms of such arrangements. Although the structure the Company has adopted is consistent with longstanding industry practice, and is commonly adopted by comparable companies in China, the PRC government may not agree that these arrangements comply with PRC licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted in the future. There are uncertainties regarding the interpretation and application of PRC laws and regulations including those that govern the Company’s contractual arrangements, which could limit the Company’s ability to enforce these contractual arrangements. If the Company or any of its variable interest entities are found to be in violation of any existing or future PRC laws, rules or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures, including levying fines, revoking business and other licenses of the Company’s variable interest entities, requiring the Company to discontinue or restrict its operations, restricting its right to collect revenue, requiring the Company to restructure its operations or taking other regulatory or enforcement actions against the Company. In addition, it is unclear what impact the PRC government actions would have on the Company and on its ability to consolidate the financial results of its variable interest entities in the consolidated financial statements, if the PRC government authorities were to find the Company’s legal structure and contractual arrangements to be in violation of PRC laws, rules and regulations. If the imposition of any of these government actions causes the Company to lose its right to direct the activities of Taiying and through Taiying’s equity interest in its subsidiaries or the right to receive their economic benefits, the Company would no longer be able to consolidate the Taiying and its subsidiaries. Immediately before and after the reorganization, the shareholder of Taiying controlled Taiying and the Company; therefore, for accounting purposes, the reorganization is accounted for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods presented. As of the filing date, the Company’s subsidiaries and variable interest entities are as follows: Name Date of Incorporation Place of incorporation Percentage of effective ownership Principal Activities China BPO Holdings Limited, (“CBPO”) March 28, 2014 Hong Kong 100% Holding company of WFOE Shandong Juncheng Information Technology Co., Ltd. (“WFOE”) August 19, 2014 PRC 100% Holding company Shandong Taiying Technology Co., Ltd. (“Taiying”) December 18, 2007 PRC Contractual arrangements (1) BPO service provider principally serves North China Chongqing Central BPO Industry Co., Ltd. (“Central BPO”) January 28, 2010 PRC 100% (2) BPO service provider principally serves South China Jiangsu Taiying Technology Co., Ltd. (“JTTC”) February 25, 2010 PRC 100% (2) BPO service provider which principally serves East China Hebei Taiying Communication BPO Co., Ltd. (“HTCC”) April 20, 2010 PRC 51% (4) BPO service provider which principally serves North China Shandong Central BPO Industry Co., Ltd. (“SCBI”) August 9, 2012 PRC 100% (2) BPO service provider which principally serves North China Shandong Taiying Technology Chongqing Branch Company (“STTCB”) February 22, 2013 PRC 100% (2) BPO service provider principally serves South China Shandong Taiying Technology Nanning Branch Company (“STTNB”) May 28, 2013 PRC 100% (2) BPO service provider principally serves South China Jiangsu Central Information Service Co., Ltd. (“JCBI”) December 12, 2013 PRC 100% (2) BPO service provider principally serves East China Anhui Taiying Information Technology Co., Ltd. (“ATIT”) December 26, 2013 PRC 100% (2) BPO service provider principally serves East China Jiangsu Taiying Information Service Co., Ltd. (“JTIS”) July 1, 2014 PRC 100% (2) BPO service provider principally serves East China Nanjing Taiying E-Commercial Business Co., Ltd. (“NTEB”) December 25, 2014 PRC 100% (2) BPO service provider principally serves East China Jiangxi Taiying Technology Co., Ltd. (“JXTT”) January 8, 2015 PRC 100% (2) BPO service provider principally serves Southeast China Xinjiang Taiying Technology Co., Ltd (“XTTC”) March 20, 2015 PRC 100% (2) BPO service provider principally serves Northwest, China Beijing Taiying Technology Co., Ltd. (“BTTC”) June 30, 2015 PRC 100% (2) BPO service provider principally serves North China Zaozhuang Shenggu E-commerce Co., Ltd. (“ZSEC”) June 16, 2016 PRC 100% (3) E-commerce service provider for the Company (1) VIE effectively controlled by WFOE through a series of contractual agreements (2) Wholly-owned subsidiaries of Taiying (3) Wholly-owned subsidiary of BTTC (4) 49% owned by Beijing Jiate Information Technology Co., Ltd., see Note 9 and Note 15 for detailed discussion. As of December 31, 2016 and 2015, the assets and liabilities in the Company’s balance sheets relate to CCRC, CBPO, and WOFE are as follows: December 31, 2016 December 31, 2015 Held by CCRC Held by CBPO Held by WFOE Held by CCRC Held by CBPO Held by WFOE Assets Cash $ 2,397,440 $ 2,354 $ 4,986,891 $ 7,999,771 $ 1,957 $ 650 Restricted cash 500,000 500,000 Other receivables 4,950,500 942 Long term investment 5,000,000 Liabilities Other payables $ 94,285 $ 5,002,500 $ 1,872 $ 64,534 $ 2,000 $ 1,030 As of December 31, 2016 and 2015, the carrying amount and classification of the assets and liabilities in the Company’s balance sheets that relate to the Company’s VIE and VIE’s subsidiaries is as follows: December 31, 2016 December 31, 2015 ASSETS Cash $ 8,560,583 $ 5,621,471 Accounts receivable 13,595,396 8,852,024 Accounts receivable - related party - 353,513 Notes receivable, current 547,259 125,687 Prepayments 504,780 708,549 Due from related parties 248,866 675,623 Deferred Income Tax Assets 69,864 - Other current assets 1,042,006 1,045,932 Total current assets of VIE and its subsidiaries 24,568,754 17,382,799 Notes receivable – related party, non-current 907,297 970,620 Property and equipment, net 4,360,976 4,129,561 Deferred tax assets, non-current - 23,974 Total non-current assets of VIE and its subsidiaries 5,268,273 5,124,155 Total assets of VIE and its subsidiaries $ 29,837,027 $ 22,506,954 LIABILITIES Accounts payable $ 664,838 $ 310,216 Accounts payable - related party 129,489 - Accrued liabilities and other payables 3,456,339 3,266,396 Deferred revenue 607,160 - Wages payable 2,885,735 2,803,294 Income taxes payable 883,654 1,014,595 Short term loans - 1,748,479 Due to related parties 446,050 - Deferred tax liabilities, current - 35,273 Total current liabilities of VIE and its subsidiaries 9,073,265 9,178,253 Total liabilities of VIE and its subsidiaries $ 9,073,265 $ 9,178,253 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principals of Consolidation The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company and Taiying, which is a variable interest entity with the Company as the primary beneficiary. In accordance with U.S. GAAP regarding “Consolidation of Variable Interest Entities (VIE)”, the Company identifies entities for which control is achieved through means other than through voting rights, and determines when and which business enterprise, if any, should consolidate the VIE. The Company evaluated its participating interest in Taiying and concluded it is the primary beneficiary of Taiying, a VIE. The Company consolidated Taiying and all significant intercompany transactions and balances have been eliminated. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar (“$”), which is the reporting currency of the Company. The functional currency of China Customer Relations Centers, Inc. and CBPO is United States dollar. The functional currency of the Company’s subsidiary and VIEs located in the PRC is Renminbi (“RMB”). For the subsidiaries whose functional currencies are RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income. Transaction gains and losses are reflected in the consolidated statements of income. For the year ended December 31, 2016, the Company had gain of $278,411 resulted from foreign currency transactions, which was included in other income. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, allowance for doubtful accounts, income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. Accounts Receivable Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer’s financial condition and collateral is not generally required. Certain credit sales are made to industries that are subject to cyclical economic changes. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments or to cover potential credit losses. Estimates are based on historical collection experience, current trends, credit policy and relationship between accounts receivable and revenues. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each client’s account to identify any specific customer collection issues. Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and include expenditures for additions and major improvements. Significant improvements and betterments are capitalized where it is probable that the expenditure resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. Routine repairs and maintenance are expensed when incurred. Gains and losses on disposal of fixed assets are recognized in the income statement based on the net disposal proceeds less the carrying amount of the assets. Certain call center decoration projects were still under construction as of December 31, 2016 and the costs of construction were reported as construction in progress. No provision for depreciation is made on the assets under construction until such time as the relevant assets are completed and ready for their intended use. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Electronic equipment 3-5 years Furniture and Fixture 5 years Motor vehicles 4 years Computer software 5 years Leasehold improvements 5 years Fair Value of Financial Instruments For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepayments, other current assets, accounts payable, accrued liabilities and other payables, deferred revenue, wages payable, and income taxes payable, the carrying amounts approximate their fair values due to the short maturities. Lease Commitments The Company has adopted FASB ASC 840. If the lease terms meet one or all of the following four criteria, it will be classified as a capital lease, otherwise, it is an operating lease: (1) The lease transfers the title to the lessee at the end of the term; (2) the lease contains a bargain purchase option; (3) the lease term is equal to 75% of the estimated economic life of the leased property or more; (4) the present value of the minimum lease payment in the term equals or exceeds 90% of the fair value of the leased property. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease period. Earnings Per Share Basic earnings per common share is computed by dividing net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the sum of the weighted average number of common stock outstanding and dilutive potential common stock during the period. Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, the delivery of service has occurred, the fee is fixed or determinable and collection is reasonably assured. The Company provides i) inbound call service, which includes directory assistance, mobile phone service plan, billing questions, hotline consultation, complaints, customer feedbacks, customer relationship management, etc., and ii) outbound call service, which includes products selling, marketing surveys, new products informing, plans expiration and bills overdue notification, etc. The BPO inbound and outbound service fees are based on either a per minute, per hour, per transaction or per call basis. For inbound call service, the revenues are recognized in the same period when the service is provided and the actual costs occurred. For outbound call service, certain business successful rate was obtained. The fee is determined on a per-call basis where the Company receives a basic standard fee for each call plus an extra fee for successfully selling a product or completing a survey, etc. Certain client programs provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based contingencies. Revenue recognition is limited to the amount that is not contingent upon delivery of future services or meeting other specified performance conditions. Government Grants Government grants include cash subsidies as well as other subsidies received from various government agencies by the subsidiaries of the Company. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements of income and comprehensive income when the relevant performance criteria specified in the grant are met, for instance, locating contact centers in their jurisdictions or helping local employment needs. Grants applicable to purchase of property and equipment are credited to deferred revenue upon receipt and are amortized over the life of depreciable assets. For the year ended December 31, 2016, the Company received grant of $270,962 for the purpose of making improvement on its leased offices. The Company included this amount in deferred revenue as the performance obligation is not fulfilled as of December 31, 2016. Research and Development Expenses Research and development expenses consist primarily of wage expense incurred to personnel to continuously upgrade the Company’s existing software products. For the years ended December 31, 2016, 2015, and 2014, research and development expenses of $3,264,073, $1,962,659, and $679,755 were included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income. Income taxes The Company accounts for income taxes under the provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company routinely assesses the financial strength of the customer and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. Related Parties Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Segment Reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Recently Issued Accounting Pronouncements In May 2016, the FASB issued ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. In October 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control” In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash” In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)”. |
Notes Receivable, Current
Notes Receivable, Current | 12 Months Ended |
Dec. 31, 2016 | |
Notes Receivable, Current and Accounts Receivable, Net [Abstract] | |
NOTES RECEIVABLE, CURRENT | Note 3 – NOTES RECEIVABLE, CURRENT The notes receivable includes due on demand interest-free notes to third parties. For the year ended December 31, 2016, the Company advanced a loan of $563,896 to a third party company. The loan is non-interest bearing and due on demand. For the year ended December 31, 2014, the Company received repayments of notes for a total amount of $130,172 from a third party individual. As of December 31, 2016 and 2015, balance of notes receivable, current was $547,259, and $125,687, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes Receivable, Current and Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 4 – ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consists of the following: December 31, 2016 December 31, 2015 Accounts receivable $ 13,595,396 $ 8,874,559 Less: Allowance for doubtful accounts - (22,535) Accounts receivable, net $ 13,595,396 $ 8,852,024 The changes in allowance for doubtful accounts consist of the following: For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Balance, beginning of the year $ 22,535 $ 23,799 Provision for doubtful accounts 33,993 - Uncollectible receivables written-off (56,010) - Translation adjustments (518) (1,264) Balance, end of the year $ - $ 22,535 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Assets [Abstract] | |
OTHER CURRENT ASSETS | Note 5 – OTHER CURRENT ASSETS Other current assets consist of other receivables and deposits. Other receivable principally includes advances to employees for business travel or business development purpose and other miscellaneous receivables such utility fees, social insurances, and personal income tax paid in advances on behalf of employees. Deposits include guarantee deposit, rent deposit, and security deposit for bidding customer projects. As of December 31, 2016 and 2015, other current assets consist of the following: December 31, 2016 2015 Other receivables $ 263,791 $ 321,773 Deposits 777,808 724,159 Others 324 - Total other current assets $ 1,041,923 $ 1,045,932 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 6 – PROPERTY AND EQUIPMENT, NET As of December 31, 2016 and 2015, property and equipment consist of the following: December 31, 2016 December 31, 2015 Electronic equipment $ 6,123,356 $ 5,834,784 Office furniture and equipment 1,978,542 1,358,324 Motor vehicles 609,853 624,992 Construction in progress 567,846 464,252 Computer software 258,802 261,070 Leasehold improvements 1,463,575 1,489,991 Total property and equipment 11,001,974 10,033,413 Accumulated depreciation (6,640,998 ) (5,903,852) Property and equipment, net $ 4,360,976 $ 4,129,561 Depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $1,542,352, $1,345,217 and $1,145,348, respectively. For the year ended December 31, 2016, the Company acquired property and equipment on credit in the amount of $672,715, among which $238,353 is acquired through a related party, refer to Note 9 for further discussion. For the years ended December 31, 2015 and 2014, the Company acquired property and equipment on credit in the amount of $23,900 and $68,839, respectively. |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Tax Assets and Deferred Tax Liabilities/Income Taxes [Abstract] | |
DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES | Note 7 – DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES The components of the deferred tax assets and liabilities are as follows: December 31, 2016 2015 Deferred tax assets, current Revenue an expense cutoff $ 62,789 $ - Allowance for doubtful accounts 153,957 5,634 Accrued revenue (net of cost) - 49,870 216,746 55,504 Less: valuation allowance - - 216,746 55,504 Deferred tax assets, non-current Depreciation expense - 2,085 Loss carryforward - 25,847 - 27,932 Less: valuation allowance - (3,958 ) - 23,974 Deferred tax liability, current Accrued revenue (net of cost) (60,476 ) (90,777 ) Revenue and expense cutoff (86,406 ) - (146,882 ) (90,777 ) For the purpose of presentation in the consolidated balance sheets, certain deferred income tax assets and liabilities have been offset. The following is the analysis of the deferred income tax balances for financial reporting purpose: December 31, 2016 2015 Deferred tax assets, current $ 69,864 $ - Deferred tax assets, non-current - 23,974 Deferred tax liabilities, current - (35,273 ) |
Short Term Loans
Short Term Loans | 12 Months Ended |
Dec. 31, 2016 | |
Short Term Loans [Abstract] | |
SHORT TERM LOANS | Note 8 – SHORT TERM LOANS Short term loans and related guarantees are comprised of the following: December 31, 2016 December 31, 2015 Guarantee Balance Balance Industrial Bank Co., Ltd., Taian Branch Taian Development District Taishan Venture Capital Co., Ltd and Gary Wang - 1,540,666 Subtotal of bank loans $ - $ 1,540,666 The annual interest rates of the short-term bank loans listed above ranged from 6.4% to 6.5%. On June 24, 2016, the Company repaid the outstanding bank loans in full. In addition to the short-term bank loans, the Company also entered into short term loan agreements with other third party individuals and companies for the years ended December 31, 2015 and 2014. For the year ended December 31, 2015, the Company borrowed $2,172,163 from one third party individual and two third party companies, and repaid an amount of $2,171,291. A loan with an amount of $965,018 was secured by certain fixed assets of Taiying and was charged with a monthly interest rate of 1.67%. The net carrying value of the fixed assets of Taiying pledged for the loan amounted to $2,493,055. As of December 31, 2015, this secured loan has been paid off. All other three loans are unsecured and bear an annual interest rate ranging from 0% to 10%. For the year ended December 31, 2014, the Company borrowed $1,722,622 from two third party individuals and two third party companies, and repaid an amount of $1,722,622. For the year ended December 31, 2014, all these loans are unsecured and bear no interest. The loans were borrowed primarily to pay off salaries and other payable related to the business operation. The interest expenses for the years ended December 31, 2016, 2015 and 2014 were $50,383, $278,363 and $552,894, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 9 – RELATED PARTY TRANSACTIONS The related parties had transactions for the years ended December 31, 2016, 2015 and 2014 consist of the following: Name of Related Party Nature of Relationship Guoan Xu Shareholder, Director and Vice President Beijing Taiying Anrui Holding Co., Ltd. Sole Shareholder Shandong Luk Information Technology Co., Ltd. Controlled by the brother of Gary Wang Chunmei Sun Wife of Gary Wang Chongqing Shenggu Human Resources Co., Ltd. Controlled by Beijing Taiying Chongqing Taiying Shiye Development Co., Ltd. David Wang being a 5% shareholder Beijing Jiate Information Technology Co., Ltd. Shareholder of HTCC Beijing Jiate Information Technology Co., Ltd. In July 2016, HTCC, its parent company Taiying, and Beijing Jiate Information Technology Co., Ltd. (“Jiate”) entered into an investment agreement, pursuant to which Jiate will contribute RMB4,900,000 (approximately $706,000) into HTCC in order to obtain 49% equity interest in HTCC. Based on the agreement, all the parties agreed to complete the registration process with local administrative department within 30 days after the agreement was signed and Jiate is entitled to HTCC’s earnings after injecting the first portion of investment in the amount of RMB2,450,000 (approximately $356,000) prior to February 1, 2017. The registration process was completed on July 11, 2016 and HTCC received the capital contribution of $356,000 on January 31, 2017. As a result, Jiate became the related party of the Company. Jiate acts as an intermediary agent and receives commission for referring customers to HTCC. The services provided by Jiate were recorded as related party transactions in the year ended December 31, 2016. See more details in services provides by related parties. As of December 31, 2015, the balance of receivable from Jiate was $125,687 which was recorded as notes receivable, current. The balance was fully settled during the year ended December 31, 2016 by a repayment of $40,011 and payment of expense made by Jiate on behalf of the Company in the amount of 82,794. Notes receivable from related party Chongqing Taiying Shiye Co., Ltd. (“Shiye”), a company in which David Wang owns 5% of the equity interest, borrowed $1,130,765 from the Company for a construction project in the year ended December 31, 2013. The receivable bears no interest and is due on demand. During the year ended December 31, 2014, Shiye repaid $113,901 to the Company. As of December 31, 2016 and 2015, the receivable from Shiye was recorded as notes receivable – related party, non-current in the amount of $907,297 and $970,620, respectively. Revenues from related party The Company was the subcontractor of Shandong Luk Information Technology Co., Ltd. (“Shandong Luk”) to provide BPO services, a related party controlled by the brother of Gary Wang. The Company did not generate any related party revenues from Shandong Luk for the years ended December 31, 2016 and 2015. And the Company generated revenues in the amount of $11,407 for the year ended December 31, 2014. The accounts receivable with Shandong Luk amounted to $353,513 as of December 31, 2015. During the year ended December 31, 2016, the Company decided to record an allowance for all the receivable balance from Shandong Luk, included in accounts receivable – related party, as the Company does not expect to collect from Shandong Luk within a reasonable period of time. Services provided by related parties The Company subcontracted projects to a related party, Shandong Luk, and the related party provided services in the amount of $485,304, $892,595 and $718,756 for the years ended December 31, 2016, 2015 and 2014, respectively, which was included in cost of revenues. Out of the services provided, both parties agreed to use $0, $26,830, and $426,434 to settle part of the balances that Shandong Luk owed to the Company as of December 31, 2016, 2015, and 2014, respectively. Jiate charged the Company $188,319 for the customers it referred to the Company during the year ended December 31, 2016, which was included in selling, general and administrative expenses. As of December 31, 2016 and 2015, the related party accounts payable balance was $129,489 and $0, respectively. Due from related parties Due from related parties consist of the following: Name of Related Party December 31, 2016 December 31, 2015 Shandong Luk Information Technology Co., Ltd. $ - $ 448,339 Beijing Taiying Anrui Holding Co., Ltd. 50,811 15,406 Chongqing Shenggu Human Resources Co., Ltd. 198,055 211,878 $ 248,866 $ 675,623 The Company provided a loan of $18,210 to Beijing Taiying during the year ended December 31, 2016. The amount owed to the Company by related party companies represents non-secured short-term loans obtained from the Company, which bears no interest and was due on demand. During the year ended December 31, 2016, the Company decided to record an allowance for all the receivable balance from Shandong Luk, included in due from related parties, as the Company does not expect to collect from Shandong Luk within a reasonable period of time. Due to related parties The balance of due to related parties was $446,050 and $0 as of December 31, 2016 and 2015, respectively. In 2014, the Company repaid a loan obtained from Chunmei Sun for $392,118. The loan bears an annual interest rate of 15%. For the year ended December 31, 2014, the interest expense recorded for the related party loan amounted to $108,264. During the year ended December 31, 2016, a related party paid expenses on behalf of the Company in the amount of $1,746. As of December 31, 2016, the balance owed to this related party was $1,670. For the years ended December 31, 2015 and 2014, the Company borrowed $19,841 and $294,500 from Jiate, and repaid $0 and $95,987 to Jiate, respectively. For the year ended December 31, 2016, the Company purchased property and equipment through Jiate in the amount of $238,353. Jiate also paid expenses on behalf of the Company in the amount of $23,094. As of December 31, 2015, the balance owed to Jiate was $207,813, which was included in short term loans. For the year ended December 31, 2016, $203,048 was reclassified from short term loans to due to related parties as Jiate became a related party of the Company. As of December 31, 2016, the balance owed to Jiate was $444,380, which was included in due to related parties. |
Major Customers and Credit Risk
Major Customers and Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Major Customers and Credit Risk [Abstract] | |
MAJOR CUSTOMERS AND CREDIT RISK | Note 10 – MAJOR CUSTOMERS AND CREDIT RISK The Company had two customers including their provincial subsidiaries in each of the years ended December 31, 2016, 2015 and 2014 that contributed at least 10% of total revenues. The provincial subsidiaries of both customers are in the telecommunications industry, which collectively represents 48%, 64% and 74% of the total revenues for the years ended December 31, 2016, 2015 and 2014, respectively. The account receivable balances due from these two customers were $4,025,927 and $3,903,981 at December 31, 2016 and 2015, respectively. The loss of one or more of its significant customers could have a material adverse effect on the Company’s business, operating results, or financial condition. The Company does not require collateral from its customers. To limit the Company’s credit risk, management performs periodic credit evaluations of its customers and maintains allowances for uncollectible accounts. Although the Company’s accounts receivable could increase dramatically as the Company grows its sales, management does not believe significant credit risk exists as of December 31, 2016 and 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Tax Assets and Deferred Tax Liabilities/Income Taxes [Abstract] | |
INCOME TAXES | Notes 11 – INCOME TAXES British Virgin Islands (“BVI”) Under the current laws of BVI, China Customer Relations Centers, Inc. is not subject to tax on income or capital gain. In addition, payments of dividends by the Company to their shareholders are not subject to withholding tax in the BVI. Hong Kong The Company’s subsidiary, CBPO, is incorporated in Hong Kong and has no operating profit or tax liabilities during the period. CBPO is subject to tax at 16.5% on the assessable profits arising in or derived from Hong Kong. PRC The Company’s subsidiary, VIE and VIE’s subsidiaries registered in the PRC are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. On March 16, 2007, the National People’s Congress enacted a new enterprise income tax law, which took effect on January 1, 2008. The law applies a uniform 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According to the tax law, entities that qualify as high and new technology enterprises (“HNTE”) supported by the PRC government are allowed a 15% preferential tax rate instead of the uniform tax rate of 25%. Taiying was granted the HNTE valid for three years starting from June 12, 2009 and successfully renewed the qualification of HNTE in the year of 2012, and subsequently in the year of 2015. The qualification of HNTE will be renewed after evaluation by relevant government authorities every three years. Taiying is entitled to a preferential EIT rate of 15%. Other PRC entities are subject to the 25% EIT rate of their taxable income. The provision for income taxes consists of the following: For the Years Ended December 31, 2016 2015 2014 Current $ 1,554,060 1,447,633 $ 526,202 Deferred (105,137 ) (172,000 ) 109,657 Total $ 1,448,923 1,275,633 $ 635,859 The reconciliations of the PRC statutory income tax rate and the Company’s effective income tax rate are as follows: For the Years Ended December 31, 2016 2015 2014 PRC statutory income tax rate 25 % 25 % 25 % Effect of income tax exemptions and reliefs (7.36 %) (4.82 %) (8.10 %) Effect of expenses not deductible for tax purposes 0.39 % 0.83 % 2.10 % Effect of income not taxable (0.49 %) (2.17 %) (3.89 %) Effect of additional deduction allowed for tax purposes (2.66 %) - - Effect of valuation allowance on deferred income tax assets 0.00 % 0.02 % 4.98 % Effect of income tax rate difference under different tax jurisdictions 1.73 % 2.62 % 6.21 % Others (1.61 %) (0.39 %) 0.00 % Total 15.00 % 21.09 % 26.30 % Accounting for Uncertainty in Income Taxes The tax authority of the PRC Government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. Therefore, the Company’s PRC entities’ tax filings results are subject to change. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s PRC entities’ tax filings, which may lead to additional tax liabilities. ASC 740 requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and concluded that no provision for uncertainty in income taxes was necessary as of December 31, 2016 and 2015. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments [Abstract] | |
COMMITMENTS | Notes 12 – COMMITMENTS The Company leases facilities with expiration dates between February 2016 and December 2024. Rental expense for the years ended December 31, 2016, 2015 and 2014 was $1,783,888, $1,426,695 and $788,216, respectively. The Company has future minimum lease obligations as of December 31, 2016 as follows: 2017 1,125,865 2018 521,376 2019 436,176 2020 351,265 2021 155,128 Thereafter 465,383 Total $ 3,055,193 JTIS leased offices and apartments located in Huai’an Economic and Technology Development District (the “District”). To attract more business in the newly constructed business center, the local government provided incentive to all companies located in the District by offering free office rent for certain period of time. The initial rent free period given to JTIS is 5 years and subject to change. For the year ended December 31, 2016, JTIS was also provided three apartments free of charge by the local government. |
Statutory Reserves
Statutory Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Reserves [Abstract] | |
STATUTORY RESERVES | Note 13 – STATUTORY RESERVES According to the Company Law in the PRC, companies are required to set aside 10% of their after-tax profit to general reserves each year, based on the PRC accounting standards, until the cumulative total of such reserves reaches 50% of the registered capital. These general reserves are not distributable as cash dividends to equity owners. The Company had appropriated $2,067,835 and $1,288,617 to statutory reserves as of December 31, 2016 and 2015, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 14 – STOCKHOLDERS’ EQUITY On March 6, 2014, China Customer Relations Centers, Inc. (“CCRC”) was incorporated in the British Virgin Islands. On the same day, the Company issued 10,000 common shares at $0.001 per share to its incorporator for a consideration of $10. On June 16, 2014, a total of 634,800 shares were issued at $1.85 per share to two individuals and three corporations with cash proceeds of $222,000 received in June, 2014 and the remaining cash proceeds received in July 2014. On September 3, 2014, the Company entered into certain control agreements with Taiying and its sole shareholder, Beijing Taiying, pursuant to which we, by virtue of our ownership of CBPO and CBPO’s ownership of WFOE, control Taiying. In exchange for these control and grants, the shareholders of Beijing Taiying received ownership of the majority of the shares of CCRC. That is, 20 Beijing Taiying shareholders (including Gary Wang, who founded Taiying and is the chairman of the boards of both Taiying and CCRC) transferred their right to control Taiying to WFOE. Beijing Taiying shareholders then collectively received 15,284,800 of CCRC’s 15,929,600 presently issued and outstanding shares, representing 96% of CCRC’s issued common shares. On September 3, 2014, the Company’s Board of Directors approved the 2014 Share Incentive Plan (“the Plan”). Under the Plan, awards of options and restricted stock may be granted. These options may be incentive stock options or non-statutory stock options. Under the Plan, a total of 1,832,960 unissued shares shall be reserved. The exercise price of an option shall not be less than 100% of the fair market value of such shares on the date of grant. On December 18, 2015, the Company completed its initial public offering on the NASDAQ Capital Market under the symbol of "CCRC." The Company offered 2,400,000 common shares at $4 per share. Net proceeds raised by the Company from the initial public offering amounted to $8,497,024 after deducting underwriting discounts and commissions and other offering expenses. Out of the $8.5 million net proceeds, $500,000 was deposited into an escrow account to satisfy the initial $500,000 in potential indemnification obligations arising during an escrow period of two years following the closing date of December 18, 2015 and was presented as restricted cash. As of the filing date, there is a total number of 18,329,600 shares outstanding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 15 – SUBSEQUENT EVENTS In July 2016, HTCC, its parent company Taiying, and Beijing Jiate Information Technology Co., Ltd. (“Jiate”) entered into an investment agreement, pursuant to which Jiate will contribute RMB4,900,000 (approximately $706,000) into HTCC in order to obtain 49% equity interest in HTCC. Based on the agreement, all the parties agreed to complete the registration process with local administrative department within 30 days after the agreement was signed and Jiate is entitled to HTCC’s earnings after injecting the first portion of investment in the amount of RMB2,450,000 (approximately $356,000) prior to February 1, 2017. The registration process was completed on July 11, 2016 and HTCC received the capital contribution of $356,000 on January 31, 2017. See Note 9 for more discussion. On November 12, 2016, the Company entered into a share subscription agreement with Beijing Ling Ban Future Technology Co. Ltd. (“Ling Ban”), pursuant to which the Company agreed to invest RMB 18 million (approximately $2,592,000) in Ling Ban in order to obtain 6% equity interest in Ling Ban. On March 23, 2017, the Company transferred RMB 8 million (approximately $1,162,000) to Ling Ban. No additional investment was made by the Company as of the filing date. On November 12, 2016, the Company entered into an investment agreement with Beijing Ling Ban Intelligence Online Services Co., Ltd. (“Ling Ban Online”), a wholly owned subsidiary of Ling Ban. Pursuant to the agreement the Company agreed to invest RMB 6 million (approximately $864,000) in Ling Ban Online in order to obtain 10% of equity interest in Ling Ban Online as well as to acquire additional 10% equity interest in Ling Ban Online from Ling Ban for a cash consideration of RMB 6 million (approximately $864,000). On January 4, 2017, the Company transferred RMB 6 million (approximately $864,000) to Ling Ban Online. No additional payment was made by the Company as of the filing date. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings and financial position. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollar (“$”), which is the reporting currency of the Company. The functional currency of China Customer Relations Centers, Inc. and CBPO is United States dollar. The functional currency of the Company’s subsidiary and VIEs located in the PRC is Renminbi (“RMB”). For the subsidiaries whose functional currencies are RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are included in determining other comprehensive income. Transaction gains and losses are reflected in the consolidated statements of income. For the year ended December 31, 2016, the Company had gain of $278,411 resulted from foreign currency transactions, which was included in other income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful lives and impairment of long-lived assets, allowance for doubtful accounts, income taxes including the valuation allowance for deferred tax assets. While the Company believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and cash in time deposits, certificates of deposit and all highly liquid instruments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable consists principally of amounts due from trade customers. Credit is extended based on an evaluation of the customer’s financial condition and collateral is not generally required. Certain credit sales are made to industries that are subject to cyclical economic changes. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its clients to make required payments or to cover potential credit losses. Estimates are based on historical collection experience, current trends, credit policy and relationship between accounts receivable and revenues. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each client’s account to identify any specific customer collection issues. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve management’s estimates on asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management which could have a material effect on our reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and include expenditures for additions and major improvements. Significant improvements and betterments are capitalized where it is probable that the expenditure resulted in an increase in the future economic benefits expected to be obtained from the use of the asset beyond its originally assessed standard of performance. Routine repairs and maintenance are expensed when incurred. Gains and losses on disposal of fixed assets are recognized in the income statement based on the net disposal proceeds less the carrying amount of the assets. Certain call center decoration projects were still under construction as of December 31, 2016 and the costs of construction were reported as construction in progress. No provision for depreciation is made on the assets under construction until such time as the relevant assets are completed and ready for their intended use. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Electronic equipment 3-5 years Furniture and Fixture 5 years Motor vehicles 4 years Computer software 5 years Leasehold improvements 5 years |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepayments, other current assets, accounts payable, accrued liabilities and other payables, deferred revenue, wages payable, and income taxes payable, the carrying amounts approximate their fair values due to the short maturities. |
Lease Commitments | Lease Commitments The Company has adopted FASB ASC 840. If the lease terms meet one or all of the following four criteria, it will be classified as a capital lease, otherwise, it is an operating lease: (1) The lease transfers the title to the lessee at the end of the term; (2) the lease contains a bargain purchase option; (3) the lease term is equal to 75% of the estimated economic life of the leased property or more; (4) the present value of the minimum lease payment in the term equals or exceeds 90% of the fair value of the leased property. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease period. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net earnings attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the sum of the weighted average number of common stock outstanding and dilutive potential common stock during the period. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when evidence of an arrangement exists, the delivery of service has occurred, the fee is fixed or determinable and collection is reasonably assured. The Company provides i) inbound call service, which includes directory assistance, mobile phone service plan, billing questions, hotline consultation, complaints, customer feedbacks, customer relationship management, etc., and ii) outbound call service, which includes products selling, marketing surveys, new products informing, plans expiration and bills overdue notification, etc. The BPO inbound and outbound service fees are based on either a per minute, per hour, per transaction or per call basis. For inbound call service, the revenues are recognized in the same period when the service is provided and the actual costs occurred. For outbound call service, certain business successful rate was obtained. The fee is determined on a per-call basis where the Company receives a basic standard fee for each call plus an extra fee for successfully selling a product or completing a survey, etc. Certain client programs provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based contingencies. Revenue recognition is limited to the amount that is not contingent upon delivery of future services or meeting other specified performance conditions. |
Government Grants | Government Grants Government grants include cash subsidies as well as other subsidies received from various government agencies by the subsidiaries of the Company. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements of income and comprehensive income when the relevant performance criteria specified in the grant are met, for instance, locating contact centers in their jurisdictions or helping local employment needs. Grants applicable to purchase of property and equipment are credited to deferred revenue upon receipt and are amortized over the life of depreciable assets. For the year ended December 31, 2016, the Company received grant of $270,962 for the purpose of making improvement on its leased offices. The Company included this amount in deferred revenue as the performance obligation is not fulfilled as of December 31, 2016. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of wage expense incurred to personnel to continuously upgrade the Company’s existing software products. For the years ended December 31, 2016, 2015, and 2014, research and development expenses of $3,264,073, $1,962,659, and $679,755 were included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income. |
Income taxes | Income taxes The Company accounts for income taxes under the provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company routinely assesses the financial strength of the customer and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. |
Related Parties Transactions | Related Parties Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business. Related parties may be individuals or corporate entities. Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, freemarket dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Segment Reporting | Segment Reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information of separate operating segments based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by customer. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2016, the FASB issued ASU 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. In October 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control” In November 2016, the FASB issued ASU 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash” In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)”. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |
Summary of balance sheet | December 31, 2016 December 31, 2015 Held by CCRC Held by CBPO Held by WFOE Held by CCRC Held by CBPO Held by WFOE Assets Cash $ 2,397,440 $ 2,354 $ 4,986,891 $ 7,999,771 $ 1,957 $ 650 Restricted cash 500,000 500,000 Other receivables 4,950,500 942 Long term investment 5,000,000 Liabilities Other payables $ 94,285 $ 5,002,500 $ 1,872 $ 64,534 $ 2,000 $ 1,030 |
VIE and VIE's subsidiaries [Member] | |
Variable Interest Entity [Line Items] | |
Summary of subsidiaries and variable interest entities | Name Date of Incorporation Place of incorporation Percentage of effective ownership Principal Activities China BPO Holdings Limited, (“CBPO”) March 28, 2014 Hong Kong 100% Holding company of WFOE Shandong Juncheng Information Technology Co., Ltd. (“WFOE”) August 19, 2014 PRC 100% Holding company Shandong Taiying Technology Co., Ltd. (“Taiying”) December 18, 2007 PRC Contractual arrangements (1) BPO service provider principally serves North China Chongqing Central BPO Industry Co., Ltd. (“Central BPO”) January 28, 2010 PRC 100% (2) BPO service provider principally serves South China Jiangsu Taiying Technology Co., Ltd. (“JTTC”) February 25, 2010 PRC 100% (2) BPO service provider which principally serves East China Hebei Taiying Communication BPO Co., Ltd. (“HTCC”) April 20, 2010 PRC 51% (4) BPO service provider which principally serves North China Shandong Central BPO Industry Co., Ltd. (“SCBI”) August 9, 2012 PRC 100% (2) BPO service provider which principally serves North China Shandong Taiying Technology Chongqing Branch Company (“STTCB”) February 22, 2013 PRC 100% (2) BPO service provider principally serves South China Shandong Taiying Technology Nanning Branch Company (“STTNB”) May 28, 2013 PRC 100% (2) BPO service provider principally serves South China Jiangsu Central Information Service Co., Ltd. (“JCBI”) December 12, 2013 PRC 100% (2) BPO service provider principally serves East China Anhui Taiying Information Technology Co., Ltd. (“ATIT”) December 26, 2013 PRC 100% (2) BPO service provider principally serves East China Jiangsu Taiying Information Service Co., Ltd. (“JTIS”) July 1, 2014 PRC 100% (2) BPO service provider principally serves East China Nanjing Taiying E-Commercial Business Co., Ltd. (“NTEB”) December 25, 2014 PRC 100% (2) BPO service provider principally serves East China Jiangxi Taiying Technology Co., Ltd. (“JXTT”) January 8, 2015 PRC 100% (2) BPO service provider principally serves Southeast China Xinjiang Taiying Technology Co., Ltd (“XTTC”) March 20, 2015 PRC 100% (2) BPO service provider principally serves Northwest, China Beijing Taiying Technology Co., Ltd. (“BTTC”) June 30, 2015 PRC 100% (2) BPO service provider principally serves North China Zaozhuang Shenggu E-commerce Co., Ltd. (“ZSEC”) June 16, 2016 PRC 100% (3) E-commerce service provider for the Company (1) VIE effectively controlled by WFOE through a series of contractual agreements (2) Wholly-owned subsidiaries of Taiying (3) Wholly-owned subsidiary of BTTC (4) 49% owned by Beijing Jiate Information Technology Co., Ltd., see Note 9 and Note 15 for detailed discussion. |
Summary of balance sheet | December 31, 2016 December 31, 2015 ASSETS Cash $ 8,560,583 $ 5,621,471 Accounts receivable 13,595,396 8,852,024 Accounts receivable - related party - 353,513 Notes receivable, current 547,259 125,687 Prepayments 504,780 708,549 Due from related parties 248,866 675,623 Deferred Income Tax Assets 69,864 - Other current assets 1,042,006 1,045,932 Total current assets of VIE and its subsidiaries 24,568,754 17,382,799 Notes receivable – related party, non-current 907,297 970,620 Property and equipment, net 4,360,976 4,129,561 Deferred tax assets, non-current - 23,974 Total non-current assets of VIE and its subsidiaries 5,268,273 5,124,155 Total assets of VIE and its subsidiaries $ 29,837,027 $ 22,506,954 LIABILITIES Accounts payable $ 664,838 $ 310,216 Accounts payable - related party 129,489 - Accrued liabilities and other payables 3,456,339 3,266,396 Deferred revenue 607,160 - Wages payable 2,885,735 2,803,294 Income taxes payable 883,654 1,014,595 Short term loans - 1,748,479 Due to related parties 446,050 - Deferred tax liabilities, current - 35,273 Total current liabilities of VIE and its subsidiaries 9,073,265 9,178,253 Total liabilities of VIE and its subsidiaries $ 9,073,265 $ 9,178,253 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of property and equipment estimated useful lives | Electronic equipment 3-5 years Furniture and Fixture 5 years Motor vehicles 4 years Computer software 5 years Leasehold improvements 5 years |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Receivable, Current and Accounts Receivable, Net [Abstract] | |
Summary of accounts receivable, net | December 31, 2016 December 31, 2015 Accounts receivable $ 13,595,396 $ 8,874,559 Less: Allowance for doubtful accounts - (22,535) Accounts receivable, net $ 13,595,396 $ 8,852,024 |
Schedule of changes in allowance for doubtful accounts | For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Balance, beginning of the year $ 22,535 $ 23,799 Provision for doubtful accounts 33,993 - Uncollectible receivables written-off (56,010) - Translation adjustments (518) (1,264) Balance, end of the year $ - $ 22,535 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Assets [Abstract] | |
Schedule of other current assets | December 31, 2016 2015 Other receivables $ 263,791 $ 321,773 Deposits 777,808 724,159 Others 324 - Total other current assets $ 1,041,923 $ 1,045,932 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net [Abstract] | |
Schedule of property and equipment | December 31, 2016 December 31, 2015 Electronic equipment $ 6,123,356 $ 5,834,784 Office furniture and equipment 1,978,542 1,358,324 Motor vehicles 609,853 624,992 Construction in progress 567,846 464,252 Computer software 258,802 261,070 Leasehold improvements 1,463,575 1,489,991 Total property and equipment 11,001,974 10,033,413 Accumulated depreciation (6,640,998 ) (5,903,852) Property and equipment, net $ 4,360,976 $ 4,129,561 |
Deferred Tax Assets and Defer28
Deferred Tax Assets and Deferred Tax Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Tax Assets and Deferred Tax Liabilities/Income Taxes [Abstract] | |
Summary of deferred tax assets and liabilities | December 31, 2016 2015 Deferred tax assets, current Revenue an expense cutoff $ 62,789 $ - Allowance for doubtful accounts 153,957 5,634 Accrued revenue (net of cost) - 49,870 216,746 55,504 Less: valuation allowance - - 216,746 55,504 Deferred tax assets, non-current Depreciation expense - 2,085 Loss carryforward - 25,847 - 27,932 Less: valuation allowance - (3,958 ) - 23,974 Deferred tax liability, current Accrued revenue (net of cost) (60,476 ) (90,777 ) Revenue and expense cutoff (86,406 ) - (146,882 ) (90,777 ) |
Schedule of deferred income tax balances for financial reporting | December 31, 2016 2015 Deferred tax assets, current $ 69,864 $ - Deferred tax assets, non-current - 23,974 Deferred tax liabilities, current - (35,273 ) |
Short Term Loans (Tables)
Short Term Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Short Term Loans [Abstract] | |
Schedule of short term loans and related guarantees | December 31, 2016 December 31, 2015 Guarantee Balance Balance Industrial Bank Co., Ltd., Taian Branch Taian Development District Taishan Venture Capital Co., Ltd and Gary Wang - 1,540,666 Subtotal of bank loans $ - $ 1,540,666 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | Name of Related Party December 31, 2016 December 31, 2015 Shandong Luk Information Technology Co., Ltd. $ - $ 448,339 Beijing Taiying Anrui Holding Co., Ltd. 50,811 15,406 Chongqing Shenggu Human Resources Co., Ltd. 198,055 211,878 $ 248,866 $ 675,623 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Tax Assets and Deferred Tax Liabilities/Income Taxes [Abstract] | |
Schedule of provision for income taxes | For the Years Ended December 31, 2016 2015 2014 Current $ 1,554,060 1,447,633 $ 526,202 Deferred (105,137 ) (172,000 ) 109,657 Total $ 1,448,923 1,275,633 $ 635,859 |
Schedule of reconciliations of company's effective income tax rate | For the Years Ended December 31, 2016 2015 2014 PRC statutory income tax rate 25 % 25 % 25 % Effect of income tax exemptions and reliefs (7.36 %) (4.82 %) (8.10 %) Effect of expenses not deductible for tax purposes 0.39 % 0.83 % 2.10 % Effect of income not taxable (0.49 %) (2.17 %) (3.89 %) Effect of additional deduction allowed for tax purposes (2.66 %) - - Effect of valuation allowance on deferred income tax assets 0.00 % 0.02 % 4.98 % Effect of income tax rate difference under different tax jurisdictions 1.73 % 2.62 % 6.21 % Others (1.61 %) (0.39 %) 0.00 % Total 15.00 % 21.09 % 26.30 % |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments [Abstract] | |
Summary of the company future minimum lease obligations | 2017 1,125,865 2018 521,376 2019 436,176 2020 351,265 2021 155,128 Thereafter 465,383 Total $ 3,055,193 |
Organization (Details)
Organization (Details) | 12 Months Ended | |
Dec. 31, 2016 | ||
China BPO Holdings Limited, ("CBPO") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 28, 2014 | |
Entity Incorporation, State Country Name | Hong Kong | |
Percentage of effective ownership | 100.00% | |
Principal Activities | Holding company of WFOE | |
Shandong Juncheng Information Technology Co., Ltd. (''WFOE'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Aug. 19, 2014 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | |
Principal Activities | Holding company | |
Shandong Taiying Technology Co., Ltd. ("Taiying") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 18, 2007 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership, description | Contractual arrangments | [1] |
Principal Activities | BPO service provider principally serves North China | |
Chongqing Central BPO Industry Co., Ltd. ("Central BPO") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 28, 2010 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves South China | |
Jiangsu Taiying Technology Co., Ltd. ("JTTC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Feb. 25, 2010 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider which principally serves East China | |
HTCC [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Apr. 20, 2010 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 51.00% | [3] |
Principal Activities | BPO service provider which principally serves North China | |
Shandong Central BPO Industry Co., Ltd. ("SCBI") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Aug. 9, 2012 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider which principally serves North China | |
Shandong Taiying Technology Chongqing Branch Company ("STTCB") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Feb. 22, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves South China | |
Shandong Taiying Technology Nanning Branch Company (''STTNB'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | May 28, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves South China | |
Jiangsu Central Information Service Co., Ltd. ("JCBI") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 12, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves East China | |
Anhui Taiying Information Technology Co., Ltd. ("ATIT") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 26, 2013 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves East China | |
Jiangsu Taiying Information Service Co., Ltd. (''JTIS'') | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jul. 1, 2014 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider which principally serves East China | |
Nanjing Taiying E-Commercial Business Co., Ltd. (''NTEB'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Dec. 25, 2014 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves East China | |
Jiangxi Taiying Technology Co., Ltd. (''JXTT'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jan. 8, 2015 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Southeast China | |
Xinjiang Taiying Technology Co., Ltd ("XTTC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Mar. 20, 2015 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves Northwest, China | |
Beijing Taiying Technology Co., Ltd. (''BTTC'') [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jun. 30, 2015 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [2] |
Principal Activities | BPO service provider principally serves North, China | |
Zaozhuang Shenggu E-commerce Co., Ltd. ("ZSEC") [Member] | ||
Variable Interest Entity [Line Items] | ||
Entity Incorporation, Date of Incorporation | Jun. 16, 2016 | |
Entity Incorporation, State Country Name | PRC | |
Percentage of effective ownership | 100.00% | [4] |
Principal Activities | E-commerce service provider for the Company | |
[1] | VIE effectively controlled by WFOE through a series of contractual agreements | |
[2] | Wholly-owned subsidiaries of Taiying | |
[3] | 49% owned by Beijing Jiate Information Technology Co., Ltd., see Note 9 and Note 15 for detailed discussion | |
[4] | Wholly-owned subsidiary of BTTC |
Organization (Details 1)
Organization (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash | $ 15,947,268 | $ 13,623,849 | $ 5,097,010 | $ 5,714,563 |
Long term investment | 1,440 | |||
CCRC [Member] | ||||
Assets | ||||
Cash | 2,397,440 | 7,999,771 | ||
Restricted cash | 500,000 | 500,000 | ||
Other receivables | 4,950,500 | |||
Long term investment | ||||
Liabilities | ||||
Other payables | 94,285 | 64,534 | ||
CBPO [Member] | ||||
Assets | ||||
Cash | 2,354 | 1,957 | ||
Long term investment | 5,000,000 | |||
Liabilities | ||||
Other payables | 5,002,500 | 2,000 | ||
WFOE [Member] | ||||
Assets | ||||
Cash | 4,986,891 | 650 | ||
Other receivables | 942 | |||
Liabilities | ||||
Other payables | $ 1,872 | $ 1,030 |
Organization (Details 2)
Organization (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash | $ 15,947,268 | $ 13,623,849 | $ 5,097,010 | $ 5,714,563 |
Accounts receivable | 13,595,396 | 8,852,024 | ||
Accounts receivable - related party | 353,513 | |||
Notes receivable, current | 547,259 | 125,687 | ||
Prepayments | 504,780 | 708,549 | ||
Due from related parties | 248,866 | 675,623 | ||
Deferred Income Tax Assets | 69,864 | |||
Other current assets | 1,041,923 | 1,045,932 | ||
Total current assets of VIE and its subsidiaries | 31,955,356 | 25,385,177 | ||
Notes receivable - related party, non-current | 907,297 | 970,620 | ||
Property and equipment, net | 4,360,976 | 4,129,561 | ||
Deferred tax assets, non-current | 23,974 | |||
Total non-current assets of VIE and its subsidiaries | 5,768,273 | 5,624,155 | ||
Total assets of VIE and its subsidiaries | 37,723,629 | 31,009,332 | ||
LIABILITIES | ||||
Accounts payable | 664,838 | 310,216 | ||
Accounts payable - related party | 129,489 | |||
Accrued liabilities and other payables | 60,476 | 90,777 | ||
Deferred revenue | 607,160 | |||
Wages payable | 2,885,735 | 2,803,294 | ||
Income taxes payable | 883,654 | 1,014,595 | ||
Short term loans | 1,748,479 | |||
Due to related parties | 446,050 | $ 2,422 | ||
Deferred tax liabilities, current | 35,273 | |||
Total current liabilities of VIE and its subsidiaries | 9,220,397 | 9,245,817 | ||
Total liabilities of VIE and its subsidiaries | 9,220,397 | 9,245,817 | ||
VIE and VIE's subsidiaries [Member] | ||||
ASSETS | ||||
Cash | 8,560,583 | 5,621,471 | ||
Accounts receivable | 13,595,396 | 8,852,024 | ||
Accounts receivable - related party | 353,513 | |||
Notes receivable, current | 547,259 | 125,687 | ||
Prepayments | 504,780 | 708,549 | ||
Due from related parties | 248,866 | 675,623 | ||
Deferred Income Tax Assets | 69,864 | |||
Total current assets of VIE and its subsidiaries | 24,568,754 | 17,382,799 | ||
Notes receivable - related party, non-current | 907,297 | 970,620 | ||
Property and equipment, net | 4,360,976 | 4,129,561 | ||
Deferred tax assets, non-current | 23,974 | |||
Total non-current assets of VIE and its subsidiaries | 5,268,273 | 5,124,155 | ||
Total assets of VIE and its subsidiaries | 29,837,027 | 22,506,954 | ||
LIABILITIES | ||||
Accounts payable | 664,838 | 310,216 | ||
Accounts payable - related party | 129,489 | |||
Accrued liabilities and other payables | 3,456,339 | 3,266,396 | ||
Deferred revenue | 607,160 | |||
Wages payable | 2,885,735 | 2,803,294 | ||
Income taxes payable | 883,654 | 1,014,595 | ||
Short term loans | 1,748,479 | |||
Due to related parties | 446,050 | |||
Deferred tax liabilities, current | 35,273 | |||
Total current liabilities of VIE and its subsidiaries | 9,073,265 | 9,178,253 | ||
Total liabilities of VIE and its subsidiaries | $ 9,073,265 | $ 9,178,253 |
Organization (Details Textual )
Organization (Details Textual ) | Dec. 31, 2016 | Mar. 28, 2014 | |
China BPO Holdings Limited (''CBPO'') [Member] | |||
Organization Consolidation And Presentation [Line Items] | |||
Percentage of effective ownership | 100.00% | ||
China BPO Holdings Limited (''CBPO'') [Member] | Hong Kong [Member] | |||
Organization Consolidation And Presentation [Line Items] | |||
Percentage of effective ownership | 100.00% | ||
Beijing TaiyingAnrui Holding Co., Ltd [Member] | |||
Organization Consolidation And Presentation [Line Items] | |||
Percentage of effective ownership | [1] | 100.00% | |
[1] | Wholly-owned subsidiaries of Taiying |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture & Fixture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 4 years |
Computer software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies (Textual) | |||
Capital leases, description | (1) The lease transfers the title to the lessee at the end of the term; (2) the lease contains a bargain purchase option; (3) the lease term is equal to 75% of the estimated economic life of the leased property or more; (4) the present value of the minimum lease payment in the term equals or exceeds 90% of the fair value of the leased property. | ||
Related party, description | (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. | ||
Foreign currency transactions | $ 278,411 | ||
Received grant | 270,962 | ||
Research and development expenses | $ 3,264,073 | $ 1,962,659 | $ 679,755 |
Notes Receivable, Current (Deta
Notes Receivable, Current (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Notes Receivable (Textual) | |||
Repayment from third parties | $ 130,172 | ||
Advanced to third parties | $ 563,896,000 | ||
Notes receivable current | $ 547,259 | $ 125,687 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Notes Receivable, Current and Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 13,595,396 | $ 8,874,559 |
Less: Allowance for doubtful accounts | (22,535) | |
Accounts receivable, net | $ 13,595,396 | $ 8,852,024 |
Accounts Receivable, Net (Det41
Accounts Receivable, Net (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Notes Receivable, Current and Accounts Receivable, Net [Abstract] | |||
Balance, beginning of the year | $ 22,535 | $ 23,799 | $ 28,872 |
Provision for doubtful accounts | 805,870 | 145,076 | |
Uncollectible receivables written-off | (56,010) | ||
Translation adjustments | (518) | (1,264) | |
Balance, end of the year | $ 22,535 | $ 23,799 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Other Current Assets [Abstract] | ||
Other receivables | $ 263,791 | $ 321,773 |
Deposits | 777,808 | 724,159 |
Others | 324 | |
Total other current assets | $ 1,041,923 | $ 1,045,932 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 11,001,974 | $ 10,033,413 |
Accumulated depreciation | (6,640,998) | (5,903,852) |
Property and equipment, net | 4,360,976 | 4,129,561 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,123,356 | 5,834,784 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,978,542 | 1,358,324 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 609,853 | 624,992 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 567,846 | 464,252 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 258,802 | 261,070 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,463,575 | $ 1,489,991 |
Property and Equipment, Net (44
Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property and Equipment, Net (Textual) | |||
Depreciation expense | $ 1,542,352 | $ 1,345,217 | $ 1,145,348 |
Property and equipment acquired on credit | 672,715 | $ 23,900 | $ 68,839 |
Property and equipment acquired through related party | $ 238,353 |
Deferred Tax Assets and Defer45
Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets, current | ||
Revenue an expense cutoff | $ 62,789 | |
Allowance for doubtful accounts | 153,957 | 5,634 |
Accrued revenue (net of cost) | 49,870 | |
Deferred tax assets, current, Gross | 216,746 | 55,504 |
Less: valuation allowance | ||
Deferred tax assets current, Net | 216,746 | 55,504 |
Deferred tax assets, non-current | ||
Depreciation expense | 2,085 | |
Loss carryforward | 25,847 | |
Deferred tax assets, non-current, Gross | 27,932 | |
Less: valuation allowance | (3,958) | |
Deferred tax assets, non-current, Net | 23,974 | |
Deferred tax liability, current | ||
Accrued revenue (net of cost) | (60,476) | (90,777) |
Revenue and expense cutoff | (86,406) | |
Deferred tax liability, current gross | $ (146,882) | $ (90,777) |
Deferred Tax Assets and Defer46
Deferred Tax Assets and Deferred Tax Liabilities (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets and Deferred Tax Liabilities/Income Taxes [Abstract] | ||
Deferred tax assets, current | $ 69,864 | |
Deferred tax assets, non-current | 23,974 | |
Deferred tax liabilities, current | $ 35,273 |
Short Term Loans (Details)
Short Term Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Subtotal of bank loans | $ 1,540,666 | |
Industrial Bank Co., Ltd., Taian Branch [Member] | ||
Short-term Debt [Line Items] | ||
Subtotal of bank loans | $ 1,540,666 | |
Guarantee | Taian Development District Taishan Venture Capital Co., Ltd and Gary Wang |
Short Term Loans (Details Textu
Short Term Loans (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)ThirPartyIndividualThirdPartyCompanySecuredLoanUnSecuredLoan | Dec. 31, 2014USD ($)ThirPartyIndividualThirdPartyCompany | |
Short Term Loans (Textual) | |||
Short-term loans borrowed | $ 2,172,163 | $ 1,722,622 | |
Short-term loans repaid | 2,171,291 | 1,722,622 | |
Secured short-term loan | $ 965,018 | ||
Secured loan monthly interest percentage | 1.67% | ||
Net carrying value of the fixed assets of Taiying pledged for the loan amount | $ 2,493,055 | ||
Interest expenses | $ 50,383 | $ 278,363 | $ 552,894 |
Number of third party individuals | ThirPartyIndividual | 1 | 2 | |
Number of third party companies | ThirdPartyCompany | 3 | 3 | |
Number of secured loans | SecuredLoan | 1 | ||
Number of unsecured loans | UnSecuredLoan | 3 | ||
Maximum [Member] | |||
Short Term Loans (Textual) | |||
Short-term bank loans annual interest percentage | 6.50% | ||
Minimum [Member] | |||
Short Term Loans (Textual) | |||
Short-term bank loans annual interest percentage | 6.40% | ||
Unsecured loan [Member] | Maximum [Member] | |||
Short Term Loans (Textual) | |||
Short-term bank loans annual interest percentage | 10.00% | ||
Unsecured loan [Member] | Minimum [Member] | |||
Short Term Loans (Textual) | |||
Short-term bank loans annual interest percentage | 0.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 248,866 | $ 675,623 |
Shandong Luk Information Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 448,339 | |
Beijing Taiying Anrui Holding Co.,Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 50,811 | 15,406 |
Chongqing Shenggu Human Resources Co., Ltd. Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties | $ 198,055 | $ 211,878 |
Related Party Transactions (D50
Related Party Transactions (Details Textual) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2016CNY (¥) | Dec. 31, 2013USD ($) | |
Related Party Transactions (Textual) | |||||||
Revenues from related party | $ 11,407 | ||||||
Revenue from related party for services | 718,756 | 892,595 | 485,304 | ||||
Related party account payable | 0 | 26,830 | 426,434 | ||||
Repayments of notes | 40,011 | 1,095,087 | 1,633,073 | ||||
Related party receivable | 353,513 | ||||||
Notes receivable | 547,259 | 125,687 | |||||
Due from related parties | 248,866 | 675,623 | |||||
Loan provided to related parties | (18,210) | (930,536) | (1,986,421) | ||||
Due to related parties | 446,050 | 2,422 | |||||
Short term borrowings | 1,748,479 | ||||||
Purchase of property and equipment | $ 238,353 | ||||||
Invetment term | 30 days | ||||||
Capital contribution | 3,340,396 | ||||||
Investment Agreement [Member] | Beijing Jiate Information Technology, Ltd. [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Investments | $ 706,000 | ¥ 4,900,000 | |||||
Equity interest, percentage | 49.00% | 49.00% | |||||
Investment Agreement [Member] | Beijing Jiate Information Technology, Ltd. [Member] | Subsequent Event [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Capital contribution | $ 356,000 | ||||||
Investment Agreement [Member] | HTCC [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Investments | $ 356,000 | ¥ 2,450,000 | |||||
Equity interest, percentage | 49.00% | 49.00% | |||||
Due to related parties [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Related parties expenses | 1,746 | ||||||
Loans from Chunmei Sun | $ 392,118 | ||||||
Interest on loan | 15.00% | ||||||
Interest expense | 108,264 | ||||||
Short term borrowings | 1,670 | 1,670 | |||||
Jiate [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Related party account payable | 129,489 | 0 | |||||
Due to related parties | 444,380 | ||||||
Short term borrowings | 203,048 | 207,813 | |||||
General & administrative expenses | 188,319 | ||||||
Jiate [Member] | Due from related parties [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Related parties expenses | 23,094 | 82,794 | |||||
Loan provided to related parties | 18,210 | ||||||
Jiate [Member] | Due to related parties [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Due to related parties | 446,050 | 0 | 95,987 | ||||
Short term borrowings | 19,841 | 294,500 | |||||
Repayments of borrowings | 0 | ||||||
Purchase of property and equipment | 238,353 | ||||||
Chongqing Taiying Shiye Co Ltd [Member] | Notes Receivable From Related Party [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Short term borrowings | $ 1,130,765 | ||||||
Repayments of borrowings | $ 113,901 | ||||||
Equity interest, percentage | 5.00% | ||||||
Notes receivable - related party | $ 907,297 | $ 970,620 |
Major Customers and Credit Ri51
Major Customers and Credit Risk (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Customers | Dec. 31, 2015USD ($)Customers | Dec. 31, 2014Customers | |
Major Customers and Credit Risk (Textual) | |||
Number of customers | Customers | 2 | 2 | 2 |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Telecommunications Industry [Member] | |||
Major Customers and Credit Risk (Textual) | |||
Concentration risk, percentage | 48.00% | 64.00% | 74.00% |
Account receivable balances due | $ | $ 4,025,927 | $ 3,903,981 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of provision for income taxes | |||
Current | $ 1,581,340 | $ 1,447,633 | $ 526,202 |
Deferred | (84,067) | (172,000) | 109,657 |
Total | $ 1,448,923 | $ 1,275,633 | $ 635,859 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of reconciliations of the PRC statutory income tax rate | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Effect of income tax exemptions and reliefs | (7.36%) | (4.82%) | (8.10%) |
Effect of expenses not deductible for tax purposes | 0.39% | 0.83% | 2.10% |
Effect of income not taxable | (0.49%) | (2.17%) | (3.89%) |
Effect of additional deduction allowed for tax purposes | (2.66%) | ||
Effect of valuation allowance on deferred income tax assets | 0.00% | 0.02% | 4.98% |
Effect of income tax rate difference under different tax jurisdictions | 1.73% | 2.62% | 6.21% |
Others | (1.61%) | (0.39%) | 0.00% |
Total | 15.00% | 21.09% | 26.30% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes (Textual) | |
Tax percentage | 25.00% |
Preferred Partner [Member] | |
Income Taxes (Textual) | |
Tax percentage | 15.00% |
HONG KONG | |
Income Taxes (Textual) | |
Tax percentage | 16.50% |
Commitments (Details)
Commitments (Details) | Dec. 31, 2016USD ($) |
Summary of the company future minimum lease obligations | |
2,017 | $ 1,125,865 |
2,018 | 521,376 |
2,019 | 436,176 |
2,020 | 351,265 |
2,021 | 155,128 |
Thereafter | 465,383 |
Total | $ 3,055,193 |
Commitments (Details Textual)
Commitments (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments (Textual) | |||
Rental expense | $ 1,783,888 | $ 1,426,695 | $ 788,216 |
Operating lease expiration | Between February 2016 and December 2024. | ||
Rent free period | 5 years |
Statutory Reserves (Details)
Statutory Reserves (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Reserves (Textual) | ||
General reserves, description | According to the Company Law in the PRC, companies are required to set aside 10% of their after-tax profit to general reserves each year, based on the PRC accounting standards, until the cumulative total of such reserves reaches 50% of the registered capital. | |
Statutory reserves | $ 2,067,835 | $ 1,288,617 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Sep. 03, 2014shares | Mar. 06, 2014USD ($)$ / sharesshares | Dec. 18, 2015USD ($)$ / sharesshares | Jun. 16, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) |
Stockholders' Equity (Textual) | |||||||
Issuance of common stock, value consideration | $ | $ 8,497,024 | $ 1,174,380 | |||||
Common stock, shares outstanding | 18,329,600 | 18,329,600 | |||||
Proceeds from issuances of common shares | $ | $ 8,497,024 | $ 1,174,380 | |||||
Common stock, shares issued | 18,329,600 | 18,329,600 | |||||
Unissued shares | 1,832,960 | ||||||
Option exercise price, description | The exercise price of an option shall not be less than 100% of the fair market value of such shares on the date of grant. | ||||||
Beijing Taiying [Member] | |||||||
Stockholders' Equity (Textual) | |||||||
Common stock shares issued percentage | 96 | ||||||
Common stock, shares outstanding | 15,929,600 | ||||||
Common stock, shares issued | 15,929,600 | ||||||
Number of shares received | 15,284,800 | ||||||
CCRC [Member] | |||||||
Stockholders' Equity (Textual) | |||||||
Common stock per share price | $ / shares | $ 0.001 | $ 4 | |||||
Issuance of common stock, value consideration | $ | $ 10 | ||||||
Proceeds from issuances of common shares | $ | $ 8,497,024 | ||||||
Escrow deposit | $ | $ 500,000 | ||||||
Issuance of common stock | 10,000 | 2,400,000 | |||||
Initial public offering, Description | The Company completed its initial public offering on the NASDAQ Capital Market under the symbol of "CCRC." The Company offered 2,400,000 common shares at $4 per share. Net proceeds raised by the Company from the initial public offering amounted to $8,497,027 after deducting underwriting discounts and commissions and other offering expenses. Out of the $8.5 million net proceeds, $500,000 was deposited into an escrow account to satisfy the initial $500,000 in potential indemnification obligations arising during an escrow period of two years following the closing date of December 18, 2015 and was presented as restricted cash. | ||||||
Three Corporations [Member] | |||||||
Stockholders' Equity (Textual) | |||||||
Common stock per share price | $ / shares | $ 1.85 | ||||||
Proceeds from issuances of common shares | $ | $ 222,000 | ||||||
Issuance of common stock | 634,800 | ||||||
Two Individuals [Member] | |||||||
Stockholders' Equity (Textual) | |||||||
Common stock per share price | $ / shares | $ 1.85 | ||||||
Proceeds from issuances of common shares | $ | $ 222,000 | ||||||
Issuance of common stock | 634,800 |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 12, 2016USD ($) | Nov. 12, 2016CNY (¥) | Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 23, 2017USD ($) | Mar. 23, 2017CNY (¥) | Jan. 04, 2017USD ($) | Jan. 04, 2017CNY (¥) | Nov. 12, 2016CNY (¥) | Jul. 31, 2016USD ($) | Jul. 31, 2016CNY (¥) |
Subsequent Event (Textual) | |||||||||||||
Capital contribution | $ 3,340,396 | ||||||||||||
Investment Agreement [Member] | Beijing Jiate Information Technology, Ltd. [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Investment | $ 706,000 | ¥ 4,900,000 | |||||||||||
Equity interest, percentage | 49.00% | 49.00% | |||||||||||
Investment Agreement [Member] | Hebei Taiying [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Investment | $ 356,000 | ¥ 2,450,000 | |||||||||||
Equity interest, percentage | 49.00% | 49.00% | |||||||||||
Investment Agreement [Member] | Beijing Ling Ban Intelligence Online Services Co Ltd [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Investment | $ 864,000 | ¥ 6,000,000 | |||||||||||
Equity interest, percentage | 10.00% | 10.00% | |||||||||||
Acquire additional equity interest percentage | 10.00% | 10.00% | |||||||||||
Cash consideration | $ 864,000 | ¥ 6,000,000 | |||||||||||
Subscription Agreement [Member] | Beijing Ling Ban Future Technology Co Ltd [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Investment | $ 2,592,000 | ¥ 18,000,000 | |||||||||||
Equity interest, percentage | 6.00% | 6.00% | |||||||||||
Subsequent Event [Member] | Investment Agreement [Member] | Beijing Jiate Information Technology, Ltd. [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Capital contribution | $ 356,000 | ||||||||||||
Subsequent Event [Member] | Investment Agreement [Member] | Beijing Ling Ban Intelligence Online Services Co Ltd [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Amount trnasferred to Ling Ban Online | $ 864,000 | ¥ 6,000,000 | |||||||||||
Subsequent Event [Member] | Subscription Agreement [Member] | Beijing Ling Ban Future Technology Co Ltd [Member] | |||||||||||||
Subsequent Event (Textual) | |||||||||||||
Tranferred to investment | $ 1,162,000 | ¥ 8,000,000 |