Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Apr. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | false | |||
Document Annual Report | true | |||
Document Transition Report | false | |||
Document Period End Date | Dec. 31, 2023 | |||
Document Fiscal Period Focus | FY | |||
Document Fiscal Year Focus | 2023 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity File Number | 000-55555 | |||
Entity Registrant Name | FORTUNE VALLEY TREASURES, INC. | |||
Entity Central Index Key | 0001626745 | |||
Entity Tax Identification Number | 32-0439333 | |||
Entity Incorporation, State or Country Code | NV | |||
Entity Address, Address Line One | 16th Floor, Building 2, A+Building | |||
Entity Address, Address Line Two | 139 Liansheng Road, Humen Town | |||
Entity Address, Address Line Three | Dongguan City | |||
Entity Address, City or Town | Guangdong Province | |||
Entity Address, Country | CN | |||
Entity Address, Postal Zip Code | 523000 | |||
City Area Code | 86 | |||
Local Phone Number | 769-8572 9133 | |||
Title of 12(g) Security | Common stock, par value $0.001 per share | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Business | true | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 8,580 | |||
Entity Common Stock, Shares Outstanding | 15,655,038 | |||
Documents Incorporated by Reference [Text Block] | None | |||
ICFR Auditor Attestation Flag | false | |||
Document Financial Statement Error Correction [Flag] | false | |||
Auditor Firm ID | 6781 | 206 | ||
Auditor Name | YCM CPA, Inc | MaloneBailey, LLP | ||
Auditor Location | Irvine, California | Shenzhen, China |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 288,255 | $ 165,685 |
Accounts receivable, net (including $61,113 and $146,087 from related parties as of December 31, 2023 and 2022, respectively) | 3,118,892 | 4,797,564 |
Inventories | 32,587 | 148,925 |
Prepayments and other current assets, net (including $941,978 and $1,102,861 to related parties as of December 31, 2023 and 2022, respectively) | 1,643,455 | 1,758,917 |
Total current assets | 5,083,189 | 6,871,091 |
Non-current assets | ||
Deposits paid, net (including $536,450 and $758,445 to related parties as of December 31, 2023 and 2022, respectively) | 618,456 | 1,121,302 |
Property and equipment, net | 83,706 | 97,890 |
Intangible assets, net | 151,639 | 370,926 |
Goodwill | 454,201 | |
Total Assets | 6,249,169 | 9,287,942 |
Current liabilities | ||
Accounts payable (including $162,310 and $80,426 to related parties as of December 31, 2023 and 2022, respectively) | 583,887 | 688,822 |
Accrued liabilities | 627,457 | 502,389 |
Bank and other borrowings - current | 458,023 | 422,653 |
Income tax payable | 1,453 | 38,879 |
Customer advances | 1,364,260 | 139,334 |
Total current liabilities | 3,851,925 | 2,484,582 |
Non-current liabilities | ||
Bank and other borrowings | 212,042 | 58,438 |
Total Liabilities | 4,258,331 | 2,788,033 |
Stockholders’ Equity | ||
Common stock, 150,000,000 shares authorized, 15,655,038 shares issued and outstanding as of December 31, 2023 and 2022 | 15,655 | 15,655 |
Additional paid-in capital | 11,061,233 | 11,061,233 |
Accumulated deficit and statutory reserves | (8,551,019) | (4,504,404) |
Accumulated other comprehensive income (loss) | (406,190) | (180,826) |
Total Fortune Valley Treasures, Inc. stockholders’ equity | 2,119,679 | 6,391,658 |
Noncontrolling interests | (128,841) | 108,251 |
Total Stockholders’ Equity | 1,990,838 | 6,499,909 |
Total Liabilities and Stockholders’ Equity | 6,249,169 | 9,287,942 |
Nonrelated Party [Member] | ||
Non-current assets | ||
Operating lease right-of-use assets, related parties | 248,626 | 297,232 |
Current liabilities | ||
Operating lease obligations, related parties - current | 119,633 | 110,201 |
Non-current liabilities | ||
Operating lease obligations, related parties – non-current | 153,487 | 189,957 |
Related Party [Member] | ||
Non-current assets | ||
Operating lease right-of-use assets, related parties | 63,553 | 75,300 |
Current liabilities | ||
Operating lease obligations, related parties - current | 16,986 | 16,629 |
Due to related parties | 680,226 | 565,675 |
Non-current liabilities | ||
Operating lease obligations, related parties – non-current | $ 40,877 | $ 55,056 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Deposit paid, related parties | $ 536,450 | $ 758,445 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 15,655,038 | 15,655,038 |
Common stock, shares outstanding | 15,655,038 | 15,655,038 |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts receivable | $ 61,113 | $ 146,087 |
Prepayments and other current assets, net | 941,978 | 1,102,861 |
Accounts payable | $ 162,310 | $ 80,426 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenues (including $88,684 and $238,824 from related parties for the years ended December 31, 2023 and 2022, respectively) | $ 4,236,565 | $ 9,234,079 |
Cost of revenues (including $608,872 and $1,302,498 from related parties for the years ended December 31, 2023 and 2022, respectively) | 2,255,306 | 4,593,405 |
Gross profit | 1,981,259 | 4,640,674 |
Operating expenses: | ||
Selling and distribution expenses | 57,422 | 61,047 |
General and administrative expenses | 5,636,052 | 4,685,932 |
Impairment loss on intangible asset | 979,428 | |
Impairment loss on goodwill | 444,012 | 863,833 |
Operating loss | (4,156,227) | (1,949,566) |
Other income (expense): | ||
Other income | 19,784 | 10,551 |
Interest income | 78 | 260 |
Interest expense | (38,389) | (31,444) |
Other expense, net | (18,527) | (20,633) |
Loss before income tax | (4,174,754) | (1,970,199) |
Income tax expense | 96,445 | 186,480 |
Net loss | (4,271,199) | (2,156,679) |
Less: Net loss attributable to noncontrolling interests | (224,584) | (213,956) |
Net loss attributable to Fortune Valley Treasures, Inc. | (4,046,615) | (1,942,723) |
Other comprehensive loss: | ||
Foreign currency translation loss | (237,872) | (807,766) |
Total comprehensive loss | (4,509,071) | (2,964,445) |
Less: comprehensive loss attributable to noncontrolling interests | (237,092) | (296,591) |
Comprehensive loss attributable to Fortune Valley Treasures, Inc. | $ (4,271,979) | $ (2,667,854) |
Earnings (loss) per share | ||
Basic earnings (loss) per share | $ (0.26) | $ (0.12) |
Diluted earnings (loss) per share | $ (0.26) | $ (0.12) |
Basic weighted average shares outstanding | 15,655,038 | 15,655,038 |
Diluted weighted average shares outstanding | 15,655,038 | 15,655,038 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Revenue from related parties | $ 4,236,565 | $ 9,234,079 |
Cost of revenue from related parties | 608,872 | 1,302,498 |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Revenue from related parties | $ 88,684 | $ 238,824 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance, value at Dec. 31, 2021 | $ 15,655 | $ 11,061,233 | $ (2,561,681) | $ 544,305 | $ 404,842 | $ 9,464,354 |
Balance, shares at Dec. 31, 2021 | 15,655,038 | |||||
Foreign currency translation adjustment | (725,131) | (82,635) | (807,766) | |||
Net loss | (1,942,723) | (213,956) | (2,156,679) | |||
Balance, value at Dec. 31, 2022 | $ 15,655 | 11,061,233 | (4,504,404) | (180,826) | 108,251 | 6,499,909 |
Balance, shares at Dec. 31, 2022 | 15,655,038 | |||||
Foreign currency translation adjustment | (225,364) | (12,508) | (237,872) | |||
Net loss | (4,046,615) | (224,584) | (4,271,199) | |||
Balance, value at Dec. 31, 2023 | $ 15,655 | $ 11,061,233 | $ (8,551,019) | $ (406,190) | $ (128,841) | $ 1,990,838 |
Balance, shares at Dec. 31, 2023 | 15,655,038 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (4,271,199) | $ (2,156,679) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 243,865 | 852,883 |
Non-cash lease expense | 50,693 | 172,314 |
Allowance for doubtful accounts | 3,355,805 | 2,564,686 |
Impairment loss on intangible asset | 979,428 | |
Impairment loss on goodwill | 444,012 | 863,833 |
Changes in operating assets and liabilities | ||
Accounts receivable | (168,106) | (2,417,438) |
Inventories | 112,862 | (76,524) |
Prepayments and other current assets, net | (1,075,718) | (1,033,644) |
Due from related parties | 24,958 | |
Deposits paid, net | (9,688) | (251,545) |
Accounts payable | (87,046) | 482,213 |
Due to related parties | (77,006) | (162,018) |
Customer advances | 1,233,751 | (218,717) |
Accrued liabilities | 136,250 | 531,332 |
Income tax payable | (36,548) | 15,660 |
Operating lease obligations | (31,137) | (163,815) |
Cash provided by (used in) operating activities | (179,210) | 6,927 |
Cash flows from investing activities | ||
Acquisition of intangible asset | (7,511) | |
Purchase of property and equipment | (4,879) | (2,599) |
Net cash used in investing activities | (4,879) | (10,110) |
Cash flows from financing activities | ||
Borrowings from a revolving credit line | (6,084) | 148,606 |
Borrowings from bank loans | 375,009 | 135,499 |
Borrowings from a third party | 80,338 | |
Repayments to related parties | (154,510) | |
Repayments to bank loans | (100,768) | (61,184) |
Repayments to a third party | (31,552) | (82,629) |
Net cash provided by financing activities | 236,605 | 66,120 |
Effect of exchange rate changes on cash and cash equivalents | 70,054 | (20,415) |
Net changes in cash and cash equivalents | 122,570 | 42,522 |
Cash and cash equivalents–beginning of the year | 165,685 | 123,163 |
Cash and cash equivalents–end of the year | 288,255 | 165,685 |
Supplementary cash flow information: | ||
Interest paid | 38,389 | 31,444 |
Income taxes paid | 178,966 | 166,516 |
Non-cash investing and financing activities | ||
Expenses paid by related parties on behalf of the Company | 135,774 | |
Remeasurement of the operating lease obligation and right-of-use asset due to lease modification | 32,875 | |
Operating lease right-of-use assets obtained in exchange for operating lease obligations | 123,829 | 94,285 |
Liabilities assumed in connection with purchase of PPE | $ 27,611 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS Fortune Valley Treasures, Inc. (formerly Crypto-Services, Inc.) (“FVTI” or the “Company”) was incorporated in the State of Nevada on March 21, 2014. The Company’s primary business operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors, and drinking water distribution and delivery are conducted through its subsidiaries in the People’s Republic of China (“PRC”). On April 11, 2018, the Company entered into a share exchange agreement by and among DaXingHuaShang Investment Group Limited (“DIGLS”) and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd. whereby the Company newly issued 15,000,000 On March 1, 2019, the Company entered into a sale and purchase agreement (the “SP Agreement”) to acquire 100 5 100 150 On June 22, 2020, the Company entered into a sale and purchase agreement along with Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd., a company incorporated in China and a wholly-owned subsidiary of FVTI (“QHDX”), to acquire 90 243,134 On January 6, 2021, FVTI, JJGS, Valley Holding Limited (“Valley Holdings”) and Angel International Investment Holdings Limited (the “Valley Holdings Seller”) signed a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed on March 16, 2020. On the same date, FVTI, DILHK, Valley Holdings and the Valley Holdings Seller entered into a new equity interest transfer agreement, pursuant to which DILHK agreed to purchase 70 On February 28, 2021, FVTI, QHDX and the original shareholders of Foshan BaiTaFeng Beverage Development Co., Ltd. (“BTF”) signed a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed on December 31, 2019 (“BTF Agreement”). The BTF Agreement was terminated effective February 28, 2021 and the parties have no further rights or obligations under the BTF Agreement. The parties further agreed to waive their rights to any claims that may arise under the BTF Agreement. As of the date of the termination agreement, no equity interest of BTF had been transferred to QHDX. Liquidity and capital resources As of December 31, 2023, the Company had working capital of $ 1,231,264 8,551,019 4,271,199 179,210 There and other factors raise substantial double about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to reflect to possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s fiscal year end is December 31. The Company’s financial statements are presented in U.S. dollars. Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations. As of December 31, 2023, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity % Owned by FVTI Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI 100 % Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS 100 % Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK 100 % Investment holding PRC FVTL May 31, 2011 QHDX 100 % Trading of food and platform PRC JJGS August 17, 2017 FVTI 100 % Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS 100 % Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK 100 % Trading of food PRC Xixingdao August 28, 2019 QHDX 100 % Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYBL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of alcoholic beverages and water purifier PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX 100 % Sales of alcoholic beverages PRC Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Chang Fu Trading Ltd (“CFTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City La Tong Trading Ltd (“LTTL”) August 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Kai Fu Trading Ltd (“KFTL”) September 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Non-controlling interests For the Company’s consolidated subsidiaries, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests are classified as a separate line item in the equity section of the Group’s consolidated balance sheets and have been separately disclosed in the Group’s consolidated statements of operations and comprehensive loss to distinguish the interests from that of the Company. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to going concern, allowance of doubtful accounts, allowance of deferred tax asset and uncertain tax position, implicit interest rate of operating leases, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these estimates. Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK’s functional currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi (“RMB”) as their functional currency. The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows: ● Monetary assets and liabilities at exchange rates in effect at the end of each period ● Nonmonetary assets and liabilities at historical rates ● Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations. The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: ● Assets and liabilities at the rate of exchange in effect at the balance sheet date ● Equities at the historical rate ● Revenue and expense items at the average rate of exchange prevailing during the period Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION 2023 2022 As of and for the year ended December 31, 2023 2022 Period-end RMB:US$1 exchange rate 0.14090 0.14474 Period-average RMB:US$1 exchange rate 0.14149 0.14896 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. The Company’s primary bank deposits are located in the PRC. Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. As of December 31, 2023 and 2022, the Company has 1,718,960 nil 1,726,142 nil Inventories Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of revenues when it has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages and water. The selling price of alcoholic beverages tends to increase over time, however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. Property and equipment, net Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT Categories Estimated useful life Office equipment 3 20 Leasehold improvements 3 The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. Intangible assets, net Intangible assets with definite lives are stated at cost less accumulated amortization and impairment, and consist mainly of distribution channel that was acquired in the acquisition of Xixingdao. Amortization is calculated on the straight-line basis over the following estimated useful lives: SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION Categories Estimated useful life Distribution channel 4 Others 5 Operating leases The Company recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. The Company elected the short-term lease exemption for contracts with lease terms of 12 months or less. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. Impairment of long-lived assets other than goodwill The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company did not recognize any impairment of long-lived assets during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recognized an impairment loss on an intangible asset, distribution channel, in the amount of $ 979,428 Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. The Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. During the years ended December 31, 2023 and 2022, the Company directly performed a quantitative assessment for goodwill impairment by comparing the fair value of Xixingdao to its carrying value, taking into account of the impairment of intangible asset as a triggering event. The Company used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation appraiser to estimate fair value, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rate. As a result, the impairment loss on goodwill of $ 444,012 863,833 nil Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of liquor, water, water purifier and other products directly to agents, wholesalers and end users, with majority of sales transactions were conducted offline. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for shipping and handling fees as a fulfillment cost. The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE 2023 2022 For the year ended 2023 2022 Sales of liquor $ 2,594,630 $ 3,875,500 Sales of water 883,179 3,743,146 Sales of water purifier 552,973 1,197,942 Others 205,783 417,491 Total $ 4,236,565 $ 9,234,079 Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines, water and other products prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of December 31, 2023 and December 31, 2022, the Company had customer advances of $ 1,364,260 139,334 79,685 332,806 Sales and distribution expenses Sales and distribution expenses amounted to $ 57,422 61,047 General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, general office expenses and professional service fees. Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 13 3 1.5 Income taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognizable tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive income as income tax expense. Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10 % of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50 % of the enterprise’s PRC registered capital. The Company had $ 1,204,787 1,047,959 to statutory reserves as of December 31, 2023 and 2022, respectively, which were included in accumulated deficit and statutory reserves in the Company’s consolidated balance sheets. Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Financial instruments The Company accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for financial assets and liabilities, which primarily consist of cash and cash equivalents, accounts receivable, inventories, prepayments and other current assets, accounts payable, accrued liabilities, income tax payable, customer advances, are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income (loss) are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income (loss) includes the foreign currency translation adjustment. Segment reporting The Company reports each material operating segment in accordance with ASC 280, “Segment Reporting”. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer. The Company has determined that it has only one operating segment. Significant risk Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, the PRC’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. The Company also exposures to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by group of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires payment after delivery of the goods within 90 to 120 days. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. For the years ended December 31, 2023 and 2022, no customer accounted for more than 10 10 10 Interest rate risk Fluctuations in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage our interest risk exposure. Related party transaction 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. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market 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. Recent Accounting Pronouncement In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC Topic 326, Financial Instruments – Credit Losses is effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption did not have a material impact on the Company’s consolidated financial statements. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 3 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2023 December 31, 2022 Accounts receivable (including $ 70,710 146,087 $ 4,837,852 $ 4,797,564 Less: Doubtful allowance (including $ 2,602 nil (1,718,960 ) - Accounts receivable, net $ 3,118,892 $ 4,797,564 Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE 2023 2022 Beginning balance $ - $ - Additions to allowance 1,726,142 - Foreign currency translation adjustment (7,182 ) - Ending balance $ 1,718,960 $ - |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments And Other Current Assets Net | |
PREPAYMENTS AND OTHER CURRENT ASSETS, NET | NOTE 4 – PREPAYMENTS AND OTHER CURRENT ASSETS, NET Prepayments and other current assets consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS 2023 2022 Prepayments (including $ 2,769,741 2,255,288 $ 3,995,750 $ 3,001,866 Other current assets 2,330 4,631 Total prepayments and other current assets 3,998,080 3,006,497 Less: Allowance for doubtful accounts (including $ 1,827,763 1,152,427 (2,354,625 ) (1,247,580 ) Prepayments and other current assets, net $ 1,643,455 $ 1,758,917 Balance of prepayments represented the advanced payments to suppliers including related party suppliers. Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS 2023 2022 Beginning balance $ 1,247,580 $ - Additions to allowance 1,169,058 1,284,005 Foreign currency translation adjustment (62,013 ) (36,425 ) Ending balance $ 2,354,625 $ 1,247,580 |
DEPOSITS PAID, NET
DEPOSITS PAID, NET | 12 Months Ended |
Dec. 31, 2023 | |
Deposits Paid Net | |
DEPOSITS PAID, NET | NOTE 5 – DEPOSITS PAID, NET Deposits paid consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF DEPOSITS PAID 2023 2022 Deposits paid (including $ 1,597,060 1,628,511 $ 2,312,622 $ 2,365,652 Less: Allowance for doubtful accounts (including $ 1,060,610 870,066 (1,694,166 ) (1,244,350 ) Deposits paid, net $ 618,456 $ 1,121,302 Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID 2023 2022 Beginning balance $ 1,244,350 $ - Additions to allowance 484,800 1,280,681 Foreign currency translation adjustment (34,984 ) (36,331 ) Ending balance $ 1,694,166 $ 1,244,350 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF PROPERTY AND EQUIPMENT 2023 2022 Office equipment $ 106,225 $ 116,520 Leasehold improvement 114,495 126,386 Motor Vehicle 32,393 - Property and equipment 253,113 242,906 Less: Accumulated depreciation (169,407 ) (145,016 ) Property and equipment, net $ 83,706 $ 97,890 Depreciation expense, which was included in general and administrative expenses, for the years ended December 31, 2023 and 2022 was $ 34,332 46,344 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 – INTANGIBLE ASSETS Intangible assets and related accumulated amortization were as follows: SCHEDULE OF INTANGIBLE ASSETS 2023 2022 Distributor channel $ 3,035,029 $ 3,117,635 Others 25,601 27,809 Total intangible assets 3,060,630 3,145,444 Less: Accumulated amortization (1,982,560 ) (1,822,875 ) Less: Impairment loss (926,431 ) (951,643 ) Total $ 151,639 $ 370,926 Amortization expense for the years ended December 31, 2023 and 2022 was $ 209,533 806,539 nil 979,428 As of December 31, 2023, the future estimated amortization costs for intangible assets are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS Year ending December 31, 2023 2024 $ 140,523 2025 5,086 2026 5,086 2027 944 Total $ 151,639 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8 - INCOME TAXES United States of America The Company is registered in the State of Nevada and is subject to United States of America tax law. The U.S. federal income tax rate is 21 Seychelles Under the current laws of the Seychelles, DIGLS and JJGS are registered as an international business company which governed by the International Business Companies Act of Seychelles and there is no income tax charged in Seychelles. Hong Kong From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25 2,000,000 289,855 16.5 2,000,000 The PRC The Company’s subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws (“EIT Laws”) with the statutory income tax rate of 25 On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No.13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. MOF and SAT [2021] No.12 provides an enterprise income tax rate of 2.5% on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, approximately $142,209, from January 1, 2021 to December 31, 2022. MOF and SAT [2022] No.13 also provides an enterprise income tax rate of 5% on small-scale and low-profit enterprises whose annual taxable income is more than RMB1,000,000, approximately $142,209, but less than RMB3,000,000, approximately $426,627, from January 1, 2022 to December 31, 2024. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. All of the Company’s PRC subsidiaries met the criteria of small-scale and low-profit enterprises, except for Xixingdao, FVT Supply Chain and FLTT. The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION 2023 2022 Current: – United States of America $ 31,761 $ (41,444 ) – Seychelles – Hong Kong - – The PRC 64,684 227,924 Current income tax expense Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred income tax expense Total $ 96,445 $ 186,480 A summary of United States and foreign income (loss) before income taxes was composed of the following: SCHEDULE OF UNITED STATES AND FOREIGN INCOME LOSS BEFORE INCOME TAXES 2023 2022 Income (loss) attributed to PRC operations $ (3,501,303 ) $ (766,083 ) Loss attributed to Seychelles and Hong Kong (160 ) (19 ) Loss attributed to U.S. (673,291 ) (1,204,097 ) Income (loss) before tax $ (4,271,199 ) $ (1,970,199 ) The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the years ended December 31, 2023 and 2022: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2023 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % Income tax difference under different tax jurisdictions -0.3 % -9.3 % PRC tax exemption for qualified small-scale and low-profit enterprises 6.2 % 52.5 % Valuation allowance on deferred income tax assets 0.9 % -3.1 % Amortization and impairment loss not deductible for tax purposes 15.5 % -28.2 % Expenses not deductible for tax purpose -16.3 % -27.3 % Impact of GILTI -1.6 % -10.7 % Others -0.2 % -4.4 % The Company’s effective tax rate 25.2 % -9.5 % The effective tax rate in the years presented is the result of the mix of income and loss recognized in various tax jurisdictions that apply a broad range of income tax rates. The significant components of deferred taxes of the Company are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS December 31, 2023 December 31, 2022 As of December 31, 2023 December 31, 2022 Deferred tax assets: Net operating loss carry forwards $ - $ - -United States - - -Hong Kong - - -PRC 39,207 61,762 Gross deferred tax assets 39,207 61,762 Less: valuation allowance (39,207 ) (61,762 ) Total deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 9 - RELATED PARTY TRANSACTIONS Amounts due to related parties as of December 31, 2023 and 2022 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES 2023 2022 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director and majority shareholder $ 341,831 $ 389,051 Ms. Xiulan Zhou Manager of a subsidiary 2,118 508 Mr. Huagen Li Manager of a subsidiary 2,254 2,316 Mr. Guodong Jia Manager of a subsidiary 7,479 2,342 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 15 16 Mr. Anping Chen Manager of a subsidiary 12,798 1,290 Mr. Jiangwei Jia Manager of a subsidiary 10,449 3,678 Mr. Yuwen Li Vice President 122,327 64,924 Ms. Lihua Li Manager of a subsidiary 14,907 - Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 84,541 86,842 Ms. Chunxiang Zhang Manager of a subsidiary 6,810 998 Mr. Meng Xue Manager of a subsidiary 8,204 5,449 Ms. Shuqin Chen Manager of a subsidiary 18,171 1,358 Mr. Zhipeng Zuo Manager of a subsidiary 10,103 59 Mr. Deqin Ke Manager of a subsidiary - 724 Mr. Aisheng Zhang Manager of a subsidiary 28,751 2,320 Mr. Zhihua Liao Manager of a subsidiary 9,468 3,800 $ 680,226 $ 565,675 Revenues generated from related parties during the years ended December 31, 2023 and 2022 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2023 2022 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ 481 $ 777 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director and majority shareholder - 492 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 14 133 Mr. Zihao Ye Manager of a subsidiary - 658 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 397 - Mr. Jianglong Xiong Manager of a subsidiary - 18 Dongguan Humen Shuiyan Drinking Water Store Ms. Shuiyan Li, a shareholder of the Company, is the controlling shareholder of Dongguan Humen Shuiyan Drinking Water Store 37,135 139,172 Dongguan Huanhai Trading Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. 21,507 27,522 Dongguan Hualianguan Chemical Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Hualian Guanhua Gong Co., Ltd. 14,502 56,920 Guangdong Yuexin Jiaotong Construction Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd. 14,329 13,132 Mr. Yuwen Li Vice President 319 - Revenues generated from related parties $ 88,684 $ 238,824 Cost of revenues from related parties during the years ended December 31, 2023 and 2022 is as follows: SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES 2023 2022 Dongguan Anxiang Technology Co., Ltd. Significant influenced by the Company $ 98,119 $ 225,721 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significant influenced by the Company 142,349 305,645 Dongguan Baxi Food Distribution Co., Ltd. Significant influenced by the Company 104,973 40,931 Dongguan Dalingshan Xinwenhua Drinking Water Store Significant influenced by the Company 29,630 120,654 Dongguan Pengqin Drinking Water Co., Ltd. Significant influenced by the Company 26,330 124,502 Dongguan Tailai Trading Co., Ltd. Significant influenced by the Company 91,664 142,331 Dongguan Dalingshan Runxin Drinking Water Store Significant influenced by the Company 13,905 52,825 Dongguan Dengqinghu Drinking Water Store Significant influenced by the Company 3,291 2,799 Dongguan City Yijia Trading Co., Ltd. Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 98,611 287,090 Cost of revenues from related parties $ 608,872 $ 1,302,498 Purchases from related parties during the years ended December 31, 2023 and 2022 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2023 2022 Dongguan Anxiang Technology Co., Ltd. Significant influenced by the Company $ 97,095 $ 211,191 Guangdong Jiaduonuo Shengshi Tradong Co., Ltd. Significant influenced by the Company 140,161 317,023 Dongguan Baxi Food Distribution Co., Ltd. Significant influenced by the Company 104,973 44,312 Dongguan Dalingshan Xinwenhua Drinking Water Store Significant influenced by the Company 29,630 134,021 Dongguan Pengqin Drinking Water Co., Ltd. Significant influenced by the Company 26,330 128,317 Dongguan Tailai Trading Co., Ltd. Significant influenced by the Company 88,783 144,264 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 3,060 3,000 Dongguan Dalingshan Runxin Drinking Water Store Significant influenced by the Company 13,905 53,782 Dongguan City Yijia Trading Limited Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 94,520 273,639 Purchase from related party $ 598,457 $ 1,309,549 Due to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due on demand. In addition, during the years ended December 31, 2023 and 2022, these related parties paid expenses on the Company’s behalf in an amount of $ nil 135,774 Mr. Yuwen Li, the Vice President of the Company, authorized the Company to use trademarks that were owned by him for ten years from October 5, 2019 to October 4, 2029 at no cost. Also see Note 3, 4, 5, 10 and 11 for more transactions with related parties. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Operating Leases | |
OPERATING LEASES | NOTE 10 – OPERATING LEASES As of December 31, 2023, the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 6 months to 40 months Two of the leases described above were entered with related parties. The operating lease entered with Ms. Qingmei Lin, a related party, is for the premises in Dongguan City, PRC. The agreement covers the period from January 1, 2019 to April 30, 2027 10,000 1,490 The agreement covers the period from October 1, 2023 to September 30, 2026 960 143 The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) for the years ended December 31, 2023 December 31, 2022 Related parties $ 16,195 $ 20,736 Non-related parties 120,907 150,804 Other information for the years ended December 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease obligations $ 147,001 $ 172,425 Weighted average remaining lease term (in years) 2.33 3.11 Weighted average discount rate 3.23 % 3.23 % Maturities of the Company’s lease obligations as of December 31, 2023 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2024 $ 142,417 2025 129,968 2026 64,206 2027 5,636 Thereafter - Total lease payment 342,227 Less: Imputed interest (11,244 ) Operating lease obligations $ 330,983 Lease expenses were $ 137,102 171,540 |
BANK AND OTHER BORROWINGS
BANK AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
BANK AND OTHER BORROWINGS | NOTE 11 – BANK AND OTHER BORROWINGS In August 2020, the Company obtained a revolving credit line in the principal amount of RMB 910,000 139,000 4.10 August 7, 2023 In November 2021, the Company obtained a bank loan in the principal amount of RMB 500,000 79,000 3.6 December 11, 2021 December 21, 2023 500,750 79,000 10.71 In May 2022, the Company obtained a revolving credit line in the principal amount of RMB 1,000,000 149,000 4.45 May 26, 2023 In May 2022, the Company obtained a loan in the principal amount of RMB 161,000 24,000 11.34 May 21, 2024 In May 2022, the Company obtained a bank loan in the principal amount of RMB 69,000 10,000 11.34 May 21, 2024 In July 2022, the Company obtained two loans in the principal amount of RMB 99,000 15,000 231,000 34,000 14.4 July 8, 2024 In July 2022, the Company obtained two loans in the principal amount of RMB 153,000 23,000 357,000 53,000 14.4 July 13, 2024 On July, 2022, the Company obtained a loan in the principal amount of RMB 380,000 57,000 12.6 July 21, 2024 In February 2023, the Company obtained a revolving credit line in the principal amount of RMB 465,000 68,000 4.00 February 11, 2024 In April 2023, the Company obtained two bank loans in the principal amount of RMB 224,000 31,000 96,000 13,000 12.24 April 7, 2025 In April 2023, the Company obtained a mortgage loan in the principal amount of RMB 195,415 27,000 6.54 April 10, 2028 In May 2023, the Company obtained a revolving credit line in the principal amount of RMB 1,050,000 146,000 4.20 May 26, 2024 In July 2023, the Company obtained two bank loans in the principal amount of RMB 57,000 8,000 133,000 18,000 10.44 July 13, 2025 In July 2023, the Company obtained a revolving credit line in the principal amount of RMB 1,040,000 143,000 3.70 July 17, 2026 In July 2023, the Company obtained a revolving credit line in the principal amount of RMB 817,000 114,000 3.85 July 22, 2024 In November 2023, the Company obtained a bank loan in the principal amount of RMB 440,000 62,000 7.92 November 16, 2025 The balance of the loans borrowed as of December 31, 2023 and 2022 was as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES December 31, 2023 December 31, 2022 Bank loan from the trust in PRC $ 20,343 $ 60,049 China Construction Bank 475,121 276,447 Guangdong NanYue Bank 24,164 67,375 WeBank 129,396 77,220 Bank of Ningbo 21,041 - Aggregate outstanding principal balances 670,065 481,091 Less: current portion 458,023 422,653 Non-current portion $ 212,042 $ 58,438 The total interest expense was $ 38,389 31,444 Future minimum loan payments as of December 31, 2023 are as follows: SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS Year ending December 31, 2024 $ 367,178 2025 140,507 2026 154,144 2027 5,066 Thereafter 3,170 Total $ 670,065 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 12 – COMMON STOCK Effective on October 21, 2021, the Company has approved a reverse stock split of the Company’s authorized and issued and outstanding shares of common stock, par value $ 0.001 ratio of 1-for-20 150,000,000 313,098,220 15,655,038 0.001 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 - SUBSEQUENT EVENTS In February 2024, the Company obtained two bank loans, both in the principal amount of RMB 270,000 38,000 7.92 February 22, 2026 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s fiscal year end is December 31. The Company’s financial statements are presented in U.S. dollars. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations. As of December 31, 2023, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity % Owned by FVTI Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI 100 % Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS 100 % Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK 100 % Investment holding PRC FVTL May 31, 2011 QHDX 100 % Trading of food and platform PRC JJGS August 17, 2017 FVTI 100 % Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS 100 % Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK 100 % Trading of food PRC Xixingdao August 28, 2019 QHDX 100 % Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYBL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of alcoholic beverages and water purifier PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX 100 % Sales of alcoholic beverages PRC Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Chang Fu Trading Ltd (“CFTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City La Tong Trading Ltd (“LTTL”) August 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Kai Fu Trading Ltd (“KFTL”) September 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC |
Non-controlling interests | Non-controlling interests For the Company’s consolidated subsidiaries, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests are classified as a separate line item in the equity section of the Group’s consolidated balance sheets and have been separately disclosed in the Group’s consolidated statements of operations and comprehensive loss to distinguish the interests from that of the Company. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to going concern, allowance of doubtful accounts, allowance of deferred tax asset and uncertain tax position, implicit interest rate of operating leases, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these estimates. |
Foreign currency translation and re-measurement | Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “ Foreign Currency Matters The reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK’s functional currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi (“RMB”) as their functional currency. The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows: ● Monetary assets and liabilities at exchange rates in effect at the end of each period ● Nonmonetary assets and liabilities at historical rates ● Revenue and expense items at the average rate of exchange prevailing during the period Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations. The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows: ● Assets and liabilities at the rate of exchange in effect at the balance sheet date ● Equities at the historical rate ● Revenue and expense items at the average rate of exchange prevailing during the period Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION 2023 2022 As of and for the year ended December 31, 2023 2022 Period-end RMB:US$1 exchange rate 0.14090 0.14474 Period-average RMB:US$1 exchange rate 0.14149 0.14896 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities of less than three months. The Company’s primary bank deposits are located in the PRC. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. As of December 31, 2023 and 2022, the Company has 1,718,960 nil 1,726,142 nil |
Inventories | Inventories Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of revenues when it has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages and water. The selling price of alcoholic beverages tends to increase over time, however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. |
Property and equipment, net | Property and equipment, net Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT Categories Estimated useful life Office equipment 3 20 Leasehold improvements 3 The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. |
Intangible assets, net | Intangible assets, net Intangible assets with definite lives are stated at cost less accumulated amortization and impairment, and consist mainly of distribution channel that was acquired in the acquisition of Xixingdao. Amortization is calculated on the straight-line basis over the following estimated useful lives: SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION Categories Estimated useful life Distribution channel 4 Others 5 |
Operating leases | Operating leases The Company recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any lease incentives. The Company elected the short-term lease exemption for contracts with lease terms of 12 months or less. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. |
Impairment of long-lived assets other than goodwill | Impairment of long-lived assets other than goodwill The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated. If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company did not recognize any impairment of long-lived assets during the year ended December 31, 2023. During the year ended December 31, 2022, the Company recognized an impairment loss on an intangible asset, distribution channel, in the amount of $ 979,428 |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Intangibles-Goodwill and Others”, goodwill is subject to at least an annual assessment for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis. The Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit. During the years ended December 31, 2023 and 2022, the Company directly performed a quantitative assessment for goodwill impairment by comparing the fair value of Xixingdao to its carrying value, taking into account of the impairment of intangible asset as a triggering event. The Company used the income approach with the discounted cash flow valuation method with the assistance of a third-party valuation appraiser to estimate fair value, which requires management to make significant estimates and assumptions related to forecasted revenues and cash flows and the discount rate. As a result, the impairment loss on goodwill of $ 444,012 863,833 nil |
Revenue recognition | Revenue recognition The Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Under Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and relevant charges. We generate revenue primarily from the sales of liquor, water, water purifier and other products directly to agents, wholesalers and end users, with majority of sales transactions were conducted offline. We recognize product revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or delivered to our customers. We account for shipping and handling fees as a fulfillment cost. The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE 2023 2022 For the year ended 2023 2022 Sales of liquor $ 2,594,630 $ 3,875,500 Sales of water 883,179 3,743,146 Sales of water purifier 552,973 1,197,942 Others 205,783 417,491 Total $ 4,236,565 $ 9,234,079 |
Contract liabilities | Contract liabilities Contract liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers or wholesales customers for wines, water and other products prior to them taking possession of the Company’s products. The Company records these receipts as customer advances until the control of the products has been transferred the customers. As of December 31, 2023 and December 31, 2022, the Company had customer advances of $ 1,364,260 139,334 79,685 332,806 |
Sales and distribution expenses | Sales and distribution expenses Sales and distribution expenses amounted to $ 57,422 61,047 |
General and administrative expenses | General and administrative expenses General and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses, entertainment expenses, general office expenses and professional service fees. |
Value-added taxes | Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company is 13 3 1.5 |
Income taxes | Income taxes The Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate. The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognizable tax benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive income as income tax expense. |
Statutory reserves | Statutory reserves Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10 % of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50 % of the enterprise’s PRC registered capital. The Company had $ 1,204,787 1,047,959 to statutory reserves as of December 31, 2023 and 2022, respectively, which were included in accumulated deficit and statutory reserves in the Company’s consolidated balance sheets. |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Financial instruments | Financial instruments The Company accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for financial assets and liabilities, which primarily consist of cash and cash equivalents, accounts receivable, inventories, prepayments and other current assets, accounts payable, accrued liabilities, income tax payable, customer advances, are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows: ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Commitments and contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income (loss) are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income (loss) includes the foreign currency translation adjustment. |
Segment reporting | Segment reporting The Company reports each material operating segment in accordance with ASC 280, “Segment Reporting”. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is the chief executive officer. The Company has determined that it has only one operating segment. |
Significant risk | Significant risk Currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in the PRC must be processed through the PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company maintains certain bank accounts in the PRC. On May 1, 2015, the PRC’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000 Other than the deposit insurance mechanism in the PRC mentioned above, the Company’s bank accounts are not insured by Federal Deposit Insurance Corporation insurance or other insurance. Concentration and credit risk Financial instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. The Company also exposures to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by group of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires payment after delivery of the goods within 90 to 120 days. Credit limits are established and exposure is monitored in light of changing counterparty and market conditions. For the years ended December 31, 2023 and 2022, no customer accounted for more than 10 10 10 Interest rate risk Fluctuations in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The Company has not used any derivative financial instruments to manage our interest risk exposure. |
Related party transaction | Related party transaction 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. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market 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. |
Recent Accounting Pronouncement | Recent Accounting Pronouncement In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC Topic 326, Financial Instruments – Credit Losses is effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 on January 1, 2023 and the adoption did not have a material impact on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES | As of December 31, 2023, details of the Company’s major subsidiaries were as follows: SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES Entity Name Date of Incorporation Parent Entity % Owned by FVTI Nature of Operation Place of Incorporation DIGLS July 4, 2016 FVTI 100 % Investment holding Republic of Seychelles DILHK June 22, 2016 DIGLS 100 % Investment holding Hong Kong, PRC QHDX November 3, 2016 DILHK 100 % Investment holding PRC FVTL May 31, 2011 QHDX 100 % Trading of food and platform PRC JJGS August 17, 2017 FVTI 100 % Investment holding Republic of Seychelles JJHK August 24, 2017 JJGS 100 % Investment holding Hong Kong, PRC JJSZ November 16, 2018 JJHK 100 % Trading of food PRC Xixingdao August 28, 2019 QHDX 100 % Drinking water distribution and delivery PRC Dongguan City Fu La Tu Trade Ltd (“FLTT”) September 27, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) December 2, 2020 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Fu Xin Technology Ltd (“FXTL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) December 21, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Jing Technology Ltd (“FJTL”) November 17, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xiang Technology Ltd (“FGTL”) November 16, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) November 9, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Lai Food Ltd (“FLFL”) September 27, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Yi Beverage Ltd (“FYBL”) November 12, 2020 Xixingdao 90 % Drinking water distribution and delivery PRC Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) March 17, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of alcoholic beverages and water purifier PRC Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) March 29, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) June 7, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Li Trading Ltd (“FLTL”) September 10, 2021 Xixingdao 90 % Drinking water distribution and delivery, sales of water purifier PRC Dongguan City Fu Gu Supply Chain Group Ltd (“FGGC”) September 13, 2021 QHDX 100 % Sales of alcoholic beverages PRC Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Chang Fu Trading Ltd (“CFTL”) September 9, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City La Tong Trading Ltd (“LTTL”) August 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC Dongguan City Kai Fu Trading Ltd (“KFTL”) September 8, 2022 FVTL 100 % Trading of alcoholic beverages PRC |
SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION | Translation of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods: SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION 2023 2022 As of and for the year ended December 31, 2023 2022 Period-end RMB:US$1 exchange rate 0.14090 0.14474 Period-average RMB:US$1 exchange rate 0.14149 0.14896 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT | Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the property and equipment are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT Categories Estimated useful life Office equipment 3 20 Leasehold improvements 3 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION | Amortization is calculated on the straight-line basis over the following estimated useful lives: SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION Categories Estimated useful life Distribution channel 4 Others 5 |
SCHEDULE OF DISAGGREGATION REVENUE | The following table provides information about disaggregated revenue based on revenue by product types: SCHEDULE OF DISAGGREGATION REVENUE 2023 2022 For the year ended 2023 2022 Sales of liquor $ 2,594,630 $ 3,875,500 Sales of water 883,179 3,743,146 Sales of water purifier 552,973 1,197,942 Others 205,783 417,491 Total $ 4,236,565 $ 9,234,079 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2023 December 31, 2022 Accounts receivable (including $ 70,710 146,087 $ 4,837,852 $ 4,797,564 Less: Doubtful allowance (including $ 2,602 nil (1,718,960 ) - Accounts receivable, net $ 3,118,892 $ 4,797,564 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE 2023 2022 Beginning balance $ - $ - Additions to allowance 1,726,142 - Foreign currency translation adjustment (7,182 ) - Ending balance $ 1,718,960 $ - |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments And Other Current Assets Net | |
SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS | Prepayments and other current assets consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS 2023 2022 Prepayments (including $ 2,769,741 2,255,288 $ 3,995,750 $ 3,001,866 Other current assets 2,330 4,631 Total prepayments and other current assets 3,998,080 3,006,497 Less: Allowance for doubtful accounts (including $ 1,827,763 1,152,427 (2,354,625 ) (1,247,580 ) Prepayments and other current assets, net $ 1,643,455 $ 1,758,917 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS 2023 2022 Beginning balance $ 1,247,580 $ - Additions to allowance 1,169,058 1,284,005 Foreign currency translation adjustment (62,013 ) (36,425 ) Ending balance $ 2,354,625 $ 1,247,580 |
DEPOSITS PAID, NET (Tables)
DEPOSITS PAID, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits Paid Net | |
SCHEDULE OF DEPOSITS PAID | Deposits paid consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF DEPOSITS PAID 2023 2022 Deposits paid (including $ 1,597,060 1,628,511 $ 2,312,622 $ 2,365,652 Less: Allowance for doubtful accounts (including $ 1,060,610 870,066 (1,694,166 ) (1,244,350 ) Deposits paid, net $ 618,456 $ 1,121,302 |
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID | Allowance for doubtful accounts movement is as follows: SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID 2023 2022 Beginning balance $ 1,244,350 $ - Additions to allowance 484,800 1,280,681 Foreign currency translation adjustment (34,984 ) (36,331 ) Ending balance $ 1,694,166 $ 1,244,350 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following as of December 31, 2023 and 2022: SCHEDULE OF PROPERTY AND EQUIPMENT 2023 2022 Office equipment $ 106,225 $ 116,520 Leasehold improvement 114,495 126,386 Motor Vehicle 32,393 - Property and equipment 253,113 242,906 Less: Accumulated depreciation (169,407 ) (145,016 ) Property and equipment, net $ 83,706 $ 97,890 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets and related accumulated amortization were as follows: SCHEDULE OF INTANGIBLE ASSETS 2023 2022 Distributor channel $ 3,035,029 $ 3,117,635 Others 25,601 27,809 Total intangible assets 3,060,630 3,145,444 Less: Accumulated amortization (1,982,560 ) (1,822,875 ) Less: Impairment loss (926,431 ) (951,643 ) Total $ 151,639 $ 370,926 |
SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS | As of December 31, 2023, the future estimated amortization costs for intangible assets are as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS Year ending December 31, 2023 2024 $ 140,523 2025 5,086 2026 5,086 2027 944 Total $ 151,639 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION | The components of the income tax provision are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION 2023 2022 Current: – United States of America $ 31,761 $ (41,444 ) – Seychelles – Hong Kong - – The PRC 64,684 227,924 Current income tax expense Deferred – United States of America - - – Seychelles - - – Hong Kong - - – The PRC - - Deferred income tax expense Total $ 96,445 $ 186,480 |
SCHEDULE OF UNITED STATES AND FOREIGN INCOME LOSS BEFORE INCOME TAXES | A summary of United States and foreign income (loss) before income taxes was composed of the following: SCHEDULE OF UNITED STATES AND FOREIGN INCOME LOSS BEFORE INCOME TAXES 2023 2022 Income (loss) attributed to PRC operations $ (3,501,303 ) $ (766,083 ) Loss attributed to Seychelles and Hong Kong (160 ) (19 ) Loss attributed to U.S. (673,291 ) (1,204,097 ) Income (loss) before tax $ (4,271,199 ) $ (1,970,199 ) |
SCHEDULE OF EFFECTIVE INCOME TAX RATE | The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the years ended December 31, 2023 and 2022: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2023 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % Income tax difference under different tax jurisdictions -0.3 % -9.3 % PRC tax exemption for qualified small-scale and low-profit enterprises 6.2 % 52.5 % Valuation allowance on deferred income tax assets 0.9 % -3.1 % Amortization and impairment loss not deductible for tax purposes 15.5 % -28.2 % Expenses not deductible for tax purpose -16.3 % -27.3 % Impact of GILTI -1.6 % -10.7 % Others -0.2 % -4.4 % The Company’s effective tax rate 25.2 % -9.5 % |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS | The significant components of deferred taxes of the Company are as follows: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS December 31, 2023 December 31, 2022 As of December 31, 2023 December 31, 2022 Deferred tax assets: Net operating loss carry forwards $ - $ - -United States - - -Hong Kong - - -PRC 39,207 61,762 Gross deferred tax assets 39,207 61,762 Less: valuation allowance (39,207 ) (61,762 ) Total deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES | Amounts due to related parties as of December 31, 2023 and 2022 are as follows: SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES 2023 2022 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director and majority shareholder $ 341,831 $ 389,051 Ms. Xiulan Zhou Manager of a subsidiary 2,118 508 Mr. Huagen Li Manager of a subsidiary 2,254 2,316 Mr. Guodong Jia Manager of a subsidiary 7,479 2,342 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 15 16 Mr. Anping Chen Manager of a subsidiary 12,798 1,290 Mr. Jiangwei Jia Manager of a subsidiary 10,449 3,678 Mr. Yuwen Li Vice President 122,327 64,924 Ms. Lihua Li Manager of a subsidiary 14,907 - Shenzhen DaXingHuaShang Industry Development Ltd. Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd. 84,541 86,842 Ms. Chunxiang Zhang Manager of a subsidiary 6,810 998 Mr. Meng Xue Manager of a subsidiary 8,204 5,449 Ms. Shuqin Chen Manager of a subsidiary 18,171 1,358 Mr. Zhipeng Zuo Manager of a subsidiary 10,103 59 Mr. Deqin Ke Manager of a subsidiary - 724 Mr. Aisheng Zhang Manager of a subsidiary 28,751 2,320 Mr. Zhihua Liao Manager of a subsidiary 9,468 3,800 $ 680,226 $ 565,675 |
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES | Revenues generated from related parties during the years ended December 31, 2023 and 2022 are as follows: SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES 2023 2022 Mr. Kaihong Lin Chief Financial Officer and Treasurer $ 481 $ 777 Mr. Yumin Lin President, Chief Executive Officer, Secretary, Director and majority shareholder - 492 Ms. Xiulan Zhou Manager of a subsidiary, Mr. Yumin Lin’s wife 14 133 Mr. Zihao Ye Manager of a subsidiary - 658 Mr. Hongwei Ye Manager of a subsidiary, Shareholder 397 - Mr. Jianglong Xiong Manager of a subsidiary - 18 Dongguan Humen Shuiyan Drinking Water Store Ms. Shuiyan Li, a shareholder of the Company, is the controlling shareholder of Dongguan Humen Shuiyan Drinking Water Store 37,135 139,172 Dongguan Huanhai Trading Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd. 21,507 27,522 Dongguan Hualianguan Chemical Co., Ltd. Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Hualian Guanhua Gong Co., Ltd. 14,502 56,920 Guangdong Yuexin Jiaotong Construction Co., Ltd. Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd. 14,329 13,132 Mr. Yuwen Li Vice President 319 - Revenues generated from related parties $ 88,684 $ 238,824 |
SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES | Cost of revenues from related parties during the years ended December 31, 2023 and 2022 is as follows: SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES 2023 2022 Dongguan Anxiang Technology Co., Ltd. Significant influenced by the Company $ 98,119 $ 225,721 Guangdong Jiaduonuo Shengshi Trading Co., Ltd. Significant influenced by the Company 142,349 305,645 Dongguan Baxi Food Distribution Co., Ltd. Significant influenced by the Company 104,973 40,931 Dongguan Dalingshan Xinwenhua Drinking Water Store Significant influenced by the Company 29,630 120,654 Dongguan Pengqin Drinking Water Co., Ltd. Significant influenced by the Company 26,330 124,502 Dongguan Tailai Trading Co., Ltd. Significant influenced by the Company 91,664 142,331 Dongguan Dalingshan Runxin Drinking Water Store Significant influenced by the Company 13,905 52,825 Dongguan Dengqinghu Drinking Water Store Significant influenced by the Company 3,291 2,799 Dongguan City Yijia Trading Co., Ltd. Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 98,611 287,090 Cost of revenues from related parties $ 608,872 $ 1,302,498 |
SCHEDULE OF PURCHASES FROM RELATED PARTIES | Purchases from related parties during the years ended December 31, 2023 and 2022 are as follows: SCHEDULE OF PURCHASES FROM RELATED PARTIES 2023 2022 Dongguan Anxiang Technology Co., Ltd. Significant influenced by the Company $ 97,095 $ 211,191 Guangdong Jiaduonuo Shengshi Tradong Co., Ltd. Significant influenced by the Company 140,161 317,023 Dongguan Baxi Food Distribution Co., Ltd. Significant influenced by the Company 104,973 44,312 Dongguan Dalingshan Xinwenhua Drinking Water Store Significant influenced by the Company 29,630 134,021 Dongguan Pengqin Drinking Water Co., Ltd. Significant influenced by the Company 26,330 128,317 Dongguan Tailai Trading Co., Ltd. Significant influenced by the Company 88,783 144,264 Dongguan Dengqinghu Drinking Water Store Significantly influenced by the Company 3,060 3,000 Dongguan Dalingshan Runxin Drinking Water Store Significant influenced by the Company 13,905 53,782 Dongguan City Yijia Trading Limited Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd. 94,520 273,639 Purchase from related party $ 598,457 $ 1,309,549 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Leases | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION | The components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 are as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Operating lease cost (included in general and administrative expenses in the Company’s consolidated statements of operations) for the years ended December 31, 2023 December 31, 2022 Related parties $ 16,195 $ 20,736 Non-related parties 120,907 150,804 Other information for the years ended December 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease obligations $ 147,001 $ 172,425 Weighted average remaining lease term (in years) 2.33 3.11 Weighted average discount rate 3.23 % 3.23 % |
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS | Maturities of the Company’s lease obligations as of December 31, 2023 are as follows: SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS Year ending December 31, 2024 $ 142,417 2025 129,968 2026 64,206 2027 5,636 Thereafter - Total lease payment 342,227 Less: Imputed interest (11,244 ) Operating lease obligations $ 330,983 |
BANK AND OTHER BORROWINGS (Tabl
BANK AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES | The balance of the loans borrowed as of December 31, 2023 and 2022 was as follows: SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES December 31, 2023 December 31, 2022 Bank loan from the trust in PRC $ 20,343 $ 60,049 China Construction Bank 475,121 276,447 Guangdong NanYue Bank 24,164 67,375 WeBank 129,396 77,220 Bank of Ningbo 21,041 - Aggregate outstanding principal balances 670,065 481,091 Less: current portion 458,023 422,653 Non-current portion $ 212,042 $ 58,438 |
SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS | Future minimum loan payments as of December 31, 2023 are as follows: SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS Year ending December 31, 2024 $ 367,178 2025 140,507 2026 154,144 2027 5,066 Thereafter 3,170 Total $ 670,065 |
SCHEDULE OF ENTITIES AND ITS SU
SCHEDULE OF ENTITIES AND ITS SUBSIDIARIES (Details) | 12 Months Ended |
Dec. 31, 2023 | |
DIGLS [Member] | |
Entity Name | DIGLS |
Entity incorporation date | Jul. 04, 2016 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Republic of Seychelles |
DILHK [Member] | |
Entity Name | DILHK |
Entity incorporation date | Jun. 22, 2016 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Hong Kong, PRC |
QHDX [Member] | |
Entity Name | QHDX |
Entity incorporation date | Nov. 03, 2016 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | PRC |
FVTL [Member] | |
Entity Name | FVTL |
Entity incorporation date | May 31, 2011 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of food and platform |
Country of incorporation | PRC |
JJGS [Member] | |
Entity Name | JJGS |
Entity incorporation date | Aug. 17, 2017 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Republic of Seychelles |
JJHK [Member] | |
Entity Name | JJHK |
Entity incorporation date | Aug. 24, 2017 |
Ownership percentage by parent | 100% |
Nature of operation | Investment holding |
Country of incorporation | Hong Kong, PRC |
JJSZ [Member] | |
Entity Name | JJSZ |
Entity incorporation date | Nov. 16, 2018 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of food |
Country of incorporation | PRC |
Xixingdao [Member] | |
Entity Name | Xixingdao |
Entity incorporation date | Aug. 28, 2019 |
Ownership percentage by parent | 100% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FLTT [Member] | |
Entity Name | Dongguan City Fu La Tu Trade Ltd (“FLTT”) |
Entity incorporation date | Sep. 27, 2020 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
FXGT [Member] | |
Entity Name | Dongguan City Fu Xin Gu Trade Ltd (“FXGT”) |
Entity incorporation date | Dec. 02, 2020 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
FXTL [Member] | |
Entity Name | Dongguan City Fu Xin Technology Ltd (“FXTL”) |
Entity incorporation date | Nov. 12, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FGHL [Member] | |
Entity Name | Dongguan City Fu Guan Healthy Industry Technology Ltd (“FGHL”) |
Entity incorporation date | Dec. 21, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FJTL [Member] | |
Entity Name | Dongguan City Fu Jing Technology Ltd (“FJTL”) |
Entity incorporation date | Nov. 17, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FGTL [Member] | |
Entity Name | Dongguan City Fu Xiang Technology Ltd (“FGTL”) |
Entity incorporation date | Nov. 16, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FJFL [Member] | |
Entity Name | Dongguan City Fu Ji Food & Beverage Ltd (“FJFL”) |
Entity incorporation date | Nov. 09, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FLFL [Member] | |
Entity Name | Dongguan City Fu Lai Food Ltd (“FLFL”) |
Entity incorporation date | Sep. 27, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FYBL [Member] | |
Entity Name | Dongguan City Fu Yi Beverage Ltd (“FYBL”) |
Entity incorporation date | Nov. 12, 2020 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery |
Country of incorporation | PRC |
FXWL [Member] | |
Entity Name | Dongguan City Fu Xi Drinking Water Company Ltd (“FXWL”) |
Entity incorporation date | Mar. 17, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of alcoholic beverages and water purifier |
Country of incorporation | PRC |
FJWL [Member] | |
Entity Name | Dongguan City Fu Jia Drinking Water Company Ltd (“FJWL”) |
Entity incorporation date | Mar. 29, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FSWL [Member] | |
Entity Name | Dongguan City Fu Sheng Drinking Water Company Ltd (“FSWL”) |
Entity incorporation date | Mar. 29, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FJSTL [Member] | |
Entity Name | Shenzhen Fu Jin Trading Technology Company Ltd (“FJSTL”) |
Entity incorporation date | Jun. 07, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FLTL [Member] | |
Entity Name | Dongguan City Fu Li Trading Ltd (“FLTL”) |
Entity incorporation date | Sep. 10, 2021 |
Ownership percentage by parent | 90% |
Nature of operation | Drinking water distribution and delivery, sales of water purifier |
Country of incorporation | PRC |
FGGC [Member] | |
Entity Name | Dongguan City Fu Gu Supply Chain Group Ltd (“FGGC”) |
Entity incorporation date | Sep. 13, 2021 |
Ownership percentage by parent | 100% |
Nature of operation | Sales of alcoholic beverages |
Country of incorporation | PRC |
FZGTL [Member] | |
Entity Name | Dongguan City Fu Zhi Gu Trading Ltd (“FZGTL”) |
Entity incorporation date | Sep. 09, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
CFTL [Member] | |
Entity Name | Dongguan City Chang Fu Trading Ltd (“CFTL”) |
Entity incorporation date | Sep. 09, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
LTTL [Member] | |
Entity Name | Dongguan City La Tong Trading Ltd (“LTTL”) |
Entity incorporation date | Aug. 08, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
KFTL [Member] | |
Entity Name | Dongguan City Kai Fu Trading Ltd (“KFTL”) |
Entity incorporation date | Sep. 08, 2022 |
Ownership percentage by parent | 100% |
Nature of operation | Trading of alcoholic beverages |
Country of incorporation | PRC |
SCHEDULE OF FOREIGN CURRENCY EX
SCHEDULE OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Period-End RMB:US$1 Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Period-average RMB:US$1 exchange rate | 0.14090 | 0.14474 |
Period-Average RMB:US$1 Exchange Rate [Member] | ||
Offsetting Assets [Line Items] | ||
Period-average RMB:US$1 exchange rate | 0.14149 | 0.14896 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - USD ($) | 12 Months Ended | |||||
Jun. 22, 2020 | Mar. 01, 2019 | Apr. 11, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 06, 2021 | |
Working capital | $ 1,231,264 | |||||
Accumulated deficit | 8,551,019 | $ 4,504,404 | ||||
Net loss | 4,271,199 | 2,156,679 | ||||
Net cash in operating activities | $ 179,210 | $ (6,927) | ||||
DaXingHuaShang Investment Group Limited [Member] | ||||||
Equity method investment ownership percentage | 70% | |||||
Share Exchange Agreement [Member] | DaXingHuaShang Investment Group Limited [Member] | ||||||
Number of shares exchanged | 15,000,000 | |||||
Sale and Purchase Agreement [Member] | Jiujiu Group Stock Co., Ltd [Member] | ||||||
Number of shares exchanged | 5 | |||||
Equity method investment ownership percentage | 100% | |||||
Value shares issued in exchange | $ 150 | |||||
Xixingdao Agreement [Member] | QHDX [Member] | ||||||
Number of shares exchanged | 243,134 | |||||
Equity method investment ownership percentage | 90% |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT (Details) | Dec. 31, 2023 |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of equipment | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of equipment | 20 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of equipment | 3 years |
SCHEDULE OF ESTIMATED USEFUL _2
SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION (Details) | Dec. 31, 2023 |
FXGT [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 4 years |
Others [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 5 years |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||
Total | $ 4,236,565 | $ 9,234,079 |
Sales of Liquor [Member] | ||
Product Information [Line Items] | ||
Total | 2,594,630 | 3,875,500 |
Sales of Water [Member] | ||
Product Information [Line Items] | ||
Total | 883,179 | 3,743,146 |
Sales of Water Purifier [Member] | ||
Product Information [Line Items] | ||
Total | 552,973 | 1,197,942 |
Others [Member] | ||
Product Information [Line Items] | ||
Total | $ 205,783 | $ 417,491 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2021 USD ($) | |
Product Information [Line Items] | ||||
Allowance for doubtful accounts | $ 1,718,960 | |||
Incurred allowance for doubtful accounts | 1,726,142 | |||
Impairment on intangible assets | 979,428 | |||
Impairment loss on goodwill | 444,012 | 863,833 | ||
Goodwill | 454,201 | |||
Contract with customer advance | 1,364,260 | 139,334 | ||
Amount of customer advances in opening balance | 79,685 | 332,806 | ||
Sales and distribution expenses | $ 57,422 | 61,047 | ||
Value added tax | 13% | |||
Statutory reserves | $ 1,204,787 | $ 1,047,959 | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | No Customer [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10% | 10% | ||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Three Suppliers [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10% | |||
Accounts Payable [Member] | Customer Concentration Risk [Member] | Two Suppliers [Member] | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10% | |||
Minimum [Member] | ||||
Product Information [Line Items] | ||||
Statutory reserves percentage | 10% | |||
Maximum [Member] | ||||
Product Information [Line Items] | ||||
Statutory reserves percentage | 50% | |||
Maximum [Member] | China Deposit Insurance System [Member] | ||||
Product Information [Line Items] | ||||
FDIC insured amount | ¥ | ¥ 500,000 | |||
VAT Small Taxpayers [Member] | Minimum [Member] | ||||
Product Information [Line Items] | ||||
Value added tax | 3% | |||
VAT Small Taxpayers [Member] | Maximum [Member] | ||||
Product Information [Line Items] | ||||
Value added tax | 1.50% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Credit Loss [Abstract] | ||
Accounts receivable (including $70,710 and $146,087 from related parties as of December 31, 2023 and December 31, 2022, respectively) | $ 4,837,852 | $ 4,797,564 |
Less: Doubtful allowance (including $2,602 and $nil from related parties as of December 31, 2023 and December 31, 2022, respectively) | (1,718,960) | |
Accounts receivable, net | $ 3,118,892 | $ 4,797,564 |
SCHEDULE OF ACCOUNTS RECEIVAB_2
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Doubtful allowance | $ 1,718,960 | |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accounts receivable | 70,710 | 146,087 |
Doubtful allowance | $ 2,602 |
SCHEDULE OF ALLOWANCE FOR DOUBT
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Credit Loss [Abstract] | ||
Beginning balance | ||
Additions to allowance | 1,726,142 | |
Foreign currency translation adjustment | (7,182) | |
Ending balance | $ 1,718,960 |
SCHEDULE OF PREPAYMENT AND OTHE
SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Prepayments And Other Current Assets Net | |||
Prepayments (including $2,769,741 and $2,255,288 to related parties as of December 31, 2023 and 2022, respectively) | $ 3,995,750 | $ 3,001,866 | |
Other current assets | 2,330 | 4,631 | |
Total prepayments and other current assets | 3,998,080 | 3,006,497 | |
Less: Allowance for doubtful accounts (including $1,827,763 and $1,152,427 to related parties as of December 31, 2023 and 2022, respectively) | (2,354,625) | (1,247,580) | |
Prepayments and other current assets, net | $ 1,643,455 | $ 1,758,917 |
SCHEDULE OF PREPAYMENT AND OT_2
SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS (Details) (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Prepayments to related parties | $ 3,995,750 | $ 3,001,866 | |
Allowance for doubtful accounts | 2,354,625 | 1,247,580 | |
Related Party [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prepayments to related parties | 2,769,741 | 2,255,288 | |
Allowance for doubtful accounts | $ 1,827,763 | $ 1,152,427 |
SCHEDULE OF ALLOWANCE FOR DOU_2
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Prepayments And Other Current Assets Net | ||
Beginning balance | $ 1,247,580 | |
Additions to allowance | 1,169,058 | 1,284,005 |
Foreign currency translation adjustment | (62,013) | (36,425) |
Ending balance | $ 2,354,625 | $ 1,247,580 |
SCHEDULE OF DEPOSITS PAID (Deta
SCHEDULE OF DEPOSITS PAID (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits Paid Net | |||
Deposits paid (including $1,597,060 and $1,628,511 to related parties as of December 31, 2023 and 2022, respectively) | $ 2,312,622 | $ 2,365,652 | |
Less: Allowance for doubtful accounts (including $1,060,610 and $870,066 to related parties as of December 31, 2023 and 2022, respectively) | (1,694,166) | (1,244,350) | |
Deposits paid, net | $ 618,456 | $ 1,121,302 |
SCHEDULE OF DEPOSITS PAID (De_2
SCHEDULE OF DEPOSITS PAID (Details) (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Deposits paid | $ 2,312,622 | $ 2,365,652 | |
Deposits paid allowance for doubtful accounts | 1,694,166 | 1,244,350 | |
Related Party [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deposits paid | 1,597,060 | 1,628,511 | |
Deposits paid allowance for doubtful accounts | $ 1,060,610 | $ 870,066 |
SCHEDULE OF ALLOWANCE FOR DOU_3
SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deposits Paid Net | ||
Beginning balance | $ 1,244,350 | |
Additions to allowance | 484,800 | 1,280,681 |
Foreign currency translation adjustment | (34,984) | (36,331) |
Ending balance | $ 1,694,166 | $ 1,244,350 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 253,113 | $ 242,906 |
Less: Accumulated depreciation | (169,407) | (145,016) |
Property and equipment, net | 83,706 | 97,890 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 106,225 | 116,520 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 114,495 | 126,386 |
Vehicle [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 32,393 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 34,332 | $ 46,344 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 3,060,630 | $ 3,145,444 |
Less: Accumulated amortization | (1,982,560) | (1,822,875) |
Less: Impairment loss | (926,431) | (951,643) |
Total | 151,639 | 370,926 |
Distribution Channel [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 3,035,029 | 3,117,635 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 25,601 | $ 27,809 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS (Details) | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 140,523 |
2025 | 5,086 |
2026 | 5,086 |
2027 | 944 |
Total | $ 151,639 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expenses | $ 209,533 | $ 806,539 |
Impairment loss on intangible assets | $ 979,428 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Total | $ 96,445 | $ 186,480 |
UNITED STATES | ||
Operating Loss Carryforwards [Line Items] | ||
Current income tax expense | 31,761 | (41,444) |
Deferred income tax expense | ||
Seychelle [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred income tax expense | ||
HONG KONG | ||
Operating Loss Carryforwards [Line Items] | ||
Current income tax expense | ||
Deferred income tax expense | ||
CHINA | ||
Operating Loss Carryforwards [Line Items] | ||
Current income tax expense | 64,684 | 227,924 |
Deferred income tax expense |
SCHEDULE OF UNITED STATES AND F
SCHEDULE OF UNITED STATES AND FOREIGN INCOME LOSS BEFORE INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | $ (4,271,199) | $ (1,970,199) |
People's Republic of China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | (3,501,303) | (766,083) |
Seychelles and HongKong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | (160) | (19) |
UNITED STATES | ||
Operating Loss Carryforwards [Line Items] | ||
Income (loss) before tax | $ (673,291) | $ (1,204,097) |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory income tax rate | 21% | 21% |
Income tax difference under different tax jurisdictions | (0.30%) | (9.30%) |
PRC tax exemption for qualified small-scale and low-profit enterprises | 6.20% | 52.50% |
Valuation allowance on deferred income tax assets | 0.90% | (3.10%) |
Amortization and impairment loss not deductible for tax purposes | 15.50% | (28.20%) |
Expenses not deductible for tax purpose | (16.30%) | (27.30%) |
Impact of GILTI | (1.60%) | (10.70%) |
Others | (0.20%) | (4.40%) |
The Company’s effective tax rate | 25.20% | (9.50%) |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | ||
Gross deferred tax assets | 39,207 | 61,762 |
Less: valuation allowance | (39,207) | (61,762) |
Total deferred tax assets, net | ||
Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Gross deferred tax assets | ||
Inland Revenue, Hong Kong [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Gross deferred tax assets | ||
State Administration of Taxation, China [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Gross deferred tax assets | $ 39,207 | $ 61,762 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
U.S federal income tax rate | 21% | 21% | 21% |
Effective income tax percentage | 25.20% | 25.20% | (9.50%) |
People Republic Of China [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective income tax percentage | 25% | 25% | |
People's Republic of China [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax examination, description | On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No.13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. MOF and SAT [2021] No.12 provides an enterprise income tax rate of 2.5% on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, approximately $142,209, from January 1, 2021 to December 31, 2022. MOF and SAT [2022] No.13 also provides an enterprise income tax rate of 5% on small-scale and low-profit enterprises whose annual taxable income is more than RMB1,000,000, approximately $142,209, but less than RMB3,000,000, approximately $426,627, from January 1, 2022 to December 31, 2024. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. All of the Company’s PRC subsidiaries met the criteria of small-scale and low-profit enterprises, except for Xixingdao, FVT Supply Chain and FLTT. | On January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No.13 for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. MOF and SAT [2021] No.12 provides an enterprise income tax rate of 2.5% on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, approximately $142,209, from January 1, 2021 to December 31, 2022. MOF and SAT [2022] No.13 also provides an enterprise income tax rate of 5% on small-scale and low-profit enterprises whose annual taxable income is more than RMB1,000,000, approximately $142,209, but less than RMB3,000,000, approximately $426,627, from January 1, 2022 to December 31, 2024. The qualifications of small-scale and low-profit enterprises were examined annually by the Tax Bureau. All of the Company’s PRC subsidiaries met the criteria of small-scale and low-profit enterprises, except for Xixingdao, FVT Supply Chain and FLTT. | |
Up To HK$2,000,000 [Member] | Inland Revenue, Hong Kong [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Profit tax rates | 8.25% | 8.25% | |
Income tax assessable profit | $ 289,855 | $ 2,000,000 | |
Over HK$2,000,000 [Member] | Inland Revenue, Hong Kong [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Profit tax rates | 16.50% | 16.50% | |
Income tax assessable profit | $ 2,000,000 |
SCHEDULE OF AMOUNT DUE FROM AND
SCHEDULE OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES (Details) - Related Party [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 680,226 | $ 565,675 |
President, Chief Executive Officer, Secretary, Director and Majority shareholder [Member] | Mr Yumin Lin [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 341,831 | 389,051 |
Manager of a Subsidiary, Mr. Yumin Lins Wife [Member] | Ms. Xiulan Zhou [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,118 | 508 |
Manager of a Subsidiary [Member] | Mr. Huagen Li [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,254 | 2,316 |
Manager of a Subsidiary [Member] | Mr. Guodong Jia [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 7,479 | 2,342 |
Manager of a Subsidiary [Member] | Mr. Anping Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 12,798 | 1,290 |
Manager of a Subsidiary [Member] | Mr. Jiangwei Jia [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 10,449 | 3,678 |
Manager of a Subsidiary [Member] | Ms. Lihua Li [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 14,907 | |
Manager of a Subsidiary [Member] | Ms. Chunxiang Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 6,810 | 998 |
Manager of a Subsidiary [Member] | Mr. Meng Xue [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 8,204 | 5,449 |
Manager of a Subsidiary [Member] | Ms. Shuqin Chen [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 18,171 | 1,358 |
Manager of a Subsidiary [Member] | Mr. Zhipeng Zuo [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 10,103 | 59 |
Manager of a Subsidiary [Member] | Mr. Deqin ke [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 724 | |
Manager of a Subsidiary [Member] | Mr. Aisheng Zhang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 28,751 | 2,320 |
Manager of a Subsidiary [Member] | Mr. Zhihua Liao [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 9,468 | 3,800 |
Manager of a Subsidiary, Shareholder [Member] | Mr. Hongwei Ye [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 15 | 16 |
Vice President [Member] | Mr. Yuwen Li [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 122,327 | 64,924 |
Mr. Yumin Lin is the Supervisor of Shenzhen DaXingHuaShang Industry Development Ltd [Member] | Shenzhen Da Xing Hua Shang Industry Development Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 84,541 | $ 86,842 |
SCHEDULE OF REVENUE GENERATED F
SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | $ 88,684 | $ 238,824 |
Mr. Naiyong Luo, a Manager [Member] | Related Party [Member] | Guangdong Yuexin Jiaotong Construction Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 14,329 | 13,132 |
Mr. Kaihong Lin [Member] | Chief Financial Officer and Treasurer [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 481 | 777 |
Mr Yumin Lin [Member] | President, Chief Executive Officer, Secretary, Director and Majority shareholder [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 492 | |
Xiu Lan Zhou [Member] | Manager of a Subsidiary, Mr. Yumin Lins Wife [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 14 | 133 |
Mr. Zihao Ye [Member] | Manager of a Subsidiary [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 658 | |
Mr Hongwei Ye [Member] | Manager of a Subsidiary, Shareholder [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 397 | |
Mr Jiang long Xiong [Member] | Manager of a Subsidiary [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 18 | |
Dongguan Humen Shuiyan Drinking Water Store [Member] | Shuiyan Li [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 37,135 | 139,172 |
Dongguan Huanhai Trading Co., Ltd. [Member] | Mr. Hongwei Ye [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 21,507 | 27,522 |
Dongguan Hualianguan Chemical Co., Ltd. [Member] | Mr. Hongwei Ye [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | 14,502 | 56,920 |
Mr. Yuwen Li [Member] | Vice President [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues generated from related parties | $ 319 |
SCHEDULE OF COST OF REVENUES FR
SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | $ 2,255,306 | $ 4,593,405 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 608,872 | 1,302,498 |
Dongguan Anxiang Technology Co., Ltd. [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 98,119 | 225,721 |
Guangdong Jiaduonuo Shengshi Tradong Co., Ltd. [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 142,349 | 305,645 |
Dongguan Baxi Food Distribution Co., Ltd. [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 104,973 | 40,931 |
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 29,630 | 120,654 |
Dongguan Pengqin Drinking Water Co., Ltd. [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 26,330 | 124,502 |
Dongguan Tailai Trading Co., Ltd. [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 91,664 | 142,331 |
Dongguan Dalingshan Runxin Drinking Water Store [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 13,905 | 52,825 |
Dongguan Dengqinghu Drinking Water Store [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | 3,291 | 2,799 |
Dongguan City Yijia Trading Limited [Member] | Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of revenues from related parties | $ 98,611 | $ 287,090 |
SCHEDULE OF PURCHASES FROM RELA
SCHEDULE OF PURCHASES FROM RELATED PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Purchase from related party | $ 598,457 | $ 1,309,549 |
Dongguan Anxiang Technology Co., Ltd. [Member] | ||
Purchase from related party | 97,095 | 211,191 |
Guangdong Jiaduonuo Shengshi Tradong Co., Ltd. [Member] | ||
Purchase from related party | 140,161 | 317,023 |
Dongguan Baxi Food Distribution Co., Ltd. [Member] | ||
Purchase from related party | 104,973 | 44,312 |
Dongguan Dalingshan Xinwenhua Drinking Water Store [Member] | ||
Purchase from related party | 29,630 | 134,021 |
Dongguan Pengqin Drinking Water Co., Ltd. [Member] | ||
Purchase from related party | 26,330 | 128,317 |
Dongguan Tailai Trading Co., Ltd. [Member] | ||
Purchase from related party | 88,783 | 144,264 |
Dongguan Dengqinghu Drinking Water Store [Member] | ||
Purchase from related party | 3,060 | 3,000 |
Dongguan Dalingshan Runxin Drinking Water Store [Member] | ||
Purchase from related party | 13,905 | 53,782 |
Dongguan City Yijia Trading Limited [Member] | ||
Purchase from related party | $ 94,520 | $ 273,639 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Member] | ||
Related Party Transaction [Line Items] | ||
Related parties paid expenses | $ 135,774 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Cash paid for amounts included in the measurement of lease obligations | $ 147,001 | $ 172,425 |
Weighted average remaining lease term (in years) | 2 years 3 months 29 days | 3 years 1 month 9 days |
Operating lease, weighted average discount rate, percent | 3.23% | 3.23% |
Related Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-related parties | $ 16,195 | $ 20,736 |
Nonrelated Party [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-related parties | $ 120,907 | $ 150,804 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS (Details) | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 142,417 |
2025 | 129,968 |
2026 | 64,206 |
2027 | 5,636 |
Thereafter | |
Total lease payment | 342,227 |
Less: Imputed interest | (11,244) |
Operating lease obligations | $ 330,983 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Operating lease description | the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 6 months to 40 months | the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen stores in PRC with remaining lease terms of from 6 months to 40 months | |
Lease expenses | $ 137,102 | $ 171,540 | |
Qingmei Lin [Member] | Operating Lease Agreement [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Operating lease description | The agreement covers the period from January 1, 2019 to April 30, 2027 | The agreement covers the period from January 1, 2019 to April 30, 2027 | |
Payments for rent | $ 1,490 | ¥ 10,000 | |
Mr. Hongwei Ye [Member] | Operating Lease Agreement [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Operating lease description | The agreement covers the period from October 1, 2023 to September 30, 2026 | The agreement covers the period from October 1, 2023 to September 30, 2026 | |
Payments for rent | $ 143 | ¥ 960 |
SCHEDULE OF BALANCE OF LOAN BOR
SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | $ 670,065 | $ 481,091 |
Less: current portion | 458,023 | 422,653 |
Non-current portion | 212,042 | 58,438 |
Bank loan from the Trust in PRC [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 20,343 | 60,049 |
China Construction Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 475,121 | 276,447 |
Guangdong Nanyue Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 24,164 | 67,375 |
WeBank [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | 129,396 | 77,220 |
Bank of Ningbo [Member] | ||
Line of Credit Facility [Line Items] | ||
Aggregate outstanding principal balances | $ 21,041 |
SCHEDULE OF FUTURE MINIMUM LOAN
SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 367,178 | |
2025 | 140,507 | |
2026 | 154,144 | |
2027 | 5,066 | |
Thereafter | 3,170 | |
Total | $ 670,065 | $ 481,091 |
BANK AND OTHER BORROWINGS (Deta
BANK AND OTHER BORROWINGS (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 11, 2021 USD ($) | Nov. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jul. 31, 2022 USD ($) | May 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Aug. 31, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2023 CNY (¥) | Jul. 31, 2023 CNY (¥) | May 31, 2023 CNY (¥) | Apr. 30, 2023 CNY (¥) | Feb. 28, 2023 CNY (¥) | Jul. 31, 2022 CNY (¥) | May 31, 2022 CNY (¥) | Dec. 11, 2021 CNY (¥) | Nov. 30, 2021 CNY (¥) | Aug. 31, 2020 CNY (¥) | |
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest expense | $ 38,389 | $ 31,444 | ||||||||||||||||||||
China Construction Bank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 146,000 | $ 68,000 | $ 149,000 | $ 139,000 | ¥ 1,050,000 | ¥ 465,000 | ¥ 1,000,000 | ¥ 910,000 | ||||||||||||||
Interest rate | 4.20% | 4% | 4.45% | 4.10% | ||||||||||||||||||
Maturity date | May 26, 2024 | Feb. 11, 2024 | May 26, 2023 | Aug. 07, 2023 | ||||||||||||||||||
WeBank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 79,000 | $ 62,000 | $ 8,000 | $ 13,000 | $ 10,000 | $ 79,000 | ¥ 440,000 | ¥ 57,000 | ¥ 96,000 | 69,000 | ¥ 500,750 | ¥ 500,000 | ||||||||||
Interest rate | 10.71% | 7.92% | 11.34% | 3.60% | ||||||||||||||||||
Maturity date | Dec. 21, 2023 | Nov. 16, 2025 | May 21, 2024 | Dec. 11, 2021 | ||||||||||||||||||
Huaneng Guicheng Trust Co Ltd [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 24,000 | ¥ 161,000 | ||||||||||||||||||||
Interest rate | 11.34% | |||||||||||||||||||||
Maturity date | May 21, 2024 | |||||||||||||||||||||
WeBank One [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 15,000 | ¥ 99,000 | ||||||||||||||||||||
Guangdong Nanyue Bank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 34,000 | 231,000 | ||||||||||||||||||||
WeBank and Guangdong Nanyue Bank Co Ltd. [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest rate | 14.40% | |||||||||||||||||||||
Maturity date | Jul. 08, 2024 | |||||||||||||||||||||
WeBank Two [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 23,000 | 153,000 | ||||||||||||||||||||
Nanyue Bank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 18,000 | $ 53,000 | 133,000 | 357,000 | ||||||||||||||||||
WeBank and Nanyue Bank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest rate | 10.44% | 14.40% | ||||||||||||||||||||
Maturity date | Jul. 13, 2025 | Jul. 13, 2024 | ||||||||||||||||||||
Huaneng Guicheng [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 57,000 | ¥ 380,000 | ||||||||||||||||||||
Interest rate | 12.60% | |||||||||||||||||||||
Maturity date | Jul. 21, 2024 | |||||||||||||||||||||
Bank of Ningbo [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 31,000 | 224,000 | ||||||||||||||||||||
Bank of Ningbo and WeBank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Interest rate | 12.24% | |||||||||||||||||||||
Maturity date | Apr. 07, 2025 | |||||||||||||||||||||
Car Loan WeBank [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 27,000 | ¥ 195,415 | ||||||||||||||||||||
Interest rate | 6.54% | |||||||||||||||||||||
Maturity date | Apr. 10, 2028 | |||||||||||||||||||||
China Construction Bank Loan One [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 143,000 | 1,040,000 | ||||||||||||||||||||
Interest rate | 3.70% | |||||||||||||||||||||
Maturity date | Jul. 17, 2026 | |||||||||||||||||||||
China Construction Bank Loan Two [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Principal amount | $ 114,000 | ¥ 817,000 | ||||||||||||||||||||
Interest rate | 3.85% | |||||||||||||||||||||
Maturity date | Jul. 22, 2024 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - $ / shares | Oct. 21, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2020 |
Equity [Abstract] | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Reverse stock split, description | ratio of 1-for-20 | |||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | |
Common stock, shares, issued | 15,655,038 | 15,655,038 | 15,655,038 | 313,098,220 |
Common stock, shares, outstanding | 15,655,038 | 15,655,038 | 313,098,220 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - WeBank [Member] | 1 Months Ended | |||||||||||||
Dec. 11, 2021 USD ($) | Feb. 29, 2024 USD ($) | Nov. 30, 2023 USD ($) | May 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Feb. 29, 2024 CNY (¥) | Nov. 30, 2023 CNY (¥) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 CNY (¥) | Apr. 30, 2023 USD ($) | Apr. 30, 2023 CNY (¥) | May 31, 2022 CNY (¥) | Dec. 11, 2021 CNY (¥) | Nov. 30, 2021 CNY (¥) | |
Subsequent Event [Line Items] | ||||||||||||||
Principal amount | $ 79,000 | $ 62,000 | $ 10,000 | $ 79,000 | ¥ 440,000 | $ 8,000 | ¥ 57,000 | $ 13,000 | ¥ 96,000 | ¥ 69,000 | ¥ 500,750 | ¥ 500,000 | ||
Interest rate | 10.71% | 7.92% | 11.34% | 3.60% | ||||||||||
Maturity date | Dec. 21, 2023 | Nov. 16, 2025 | May 21, 2024 | Dec. 11, 2021 | ||||||||||
Subsequent Event [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Principal amount | $ 38,000 | ¥ 270,000 | ||||||||||||
Interest rate | 7.92% | |||||||||||||
Maturity date | Feb. 22, 2026 |