Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2019 | Feb. 14, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | ADDENTAX GROUP CORP. | |
Entity Central Index Key | 0001650101 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,346,004 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 424,021 | $ 277,264 |
Accounts receivables, net | 3,678,982 | 1,798,489 |
Inventories, net | 318,971 | 318,047 |
Other receivables | 258,998 | 178,128 |
Advances to suppliers | 483,104 | 230,484 |
Total current assets | 5,164,076 | 2,802,412 |
NON-CURRENT ASSETS | ||
Plant and equipment, net | 667,806 | 694,431 |
Goodwill | 475,003 | 475,003 |
Operating lease right of use asset | 1,939,270 | |
Total non-current assets | 3,082,079 | 1,169,434 |
TOTAL ASSETS | 8,246,155 | 3,971,846 |
CURRENT LIABILITIES | ||
Short-term loan | 359,038 | 223,502 |
Accounts payable | 2,545,680 | 884,251 |
Amount due to related parties | 5,226,754 | 4,204,130 |
Advances from customers | 83,672 | 102,673 |
Accrued expenses and other payables | 1,138,575 | 259,837 |
Total current liabilities | 9,353,719 | 5,674,393 |
NON-CURRENT LIABILITIES | ||
Operating lease liability, net of current portion | 1,483,752 | |
Total non-current liabilities | 1,483,752 | |
TOTAL LIABILITIES | 10,837,471 | 5,674,393 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock ($0.001 par value, 25,346,004 shares issued and outstanding at December 31, 2019 and March 31, 2019, respectively) | 25,346 | 25,346 |
Additional paid-in capital | 61,050 | 61,050 |
Retained earnings | (2,724,989) | (1,775,767) |
Statutory reserve | 23,516 | 21,779 |
Accumulated other comprehensive loss | 23,761 | (34,955) |
Total deficit | (2,591,316) | (1,702,547) |
TOTAL LIABILITIES AND EQUITY | $ 8,246,155 | $ 3,971,846 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 25,346,004 | 25,346,004 |
Common stock, shares outstanding | 25,346,004 | 25,346,004 |
Consolidated Statements of Loss
Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
REVENUES | $ 4,027,902 | $ 2,541,803 | $ 8,182,396 | $ 8,108,408 |
COST OF REVENUES | (3,746,040) | (2,495,740) | (7,221,683) | (7,086,149) |
GROSS PROFIT | 281,862 | 46,063 | 960,713 | 1,022,259 |
OPERATING EXPENSES | ||||
Selling and marketing | (960) | (4,770) | (11,825) | (14,480) |
General and administrative | (526,194) | (586,310) | (1,857,288) | (1,589,906) |
Total operating expenses | (527,154) | (591,080) | (1,869,113) | (1,604,386) |
LOSS FROM OPERATIONS | (245,292) | (545,017) | (908,400) | (582,127) |
FINANCE COST, NET | (3,964) | (16,246) | ||
OTHER INCOME, (EXPENSE) | 66 | 2,142 | (10,753) | 19,132 |
LOSS BEFORE INCOME TAX EXPENSE | (249,190) | (542,875) | (935,399) | (562,995) |
INCOME TAX EXPENSE | (9,022) | (2,102) | (12,086) | (6,591) |
NET LOSS | (258,212) | (544,977) | (947,485) | (569,586) |
Foreign currency translation (loss) gain | (50,440) | (445) | 58,715 | 123,622 |
TOTAL COMPREHENSIVE LOSS | $ (308,652) | $ (545,422) | $ (888,770) | $ (445,964) |
LOSS PER SHARE | ||||
Basic and diluted | $ (0.01) | $ (0.02) | $ (0.04) | $ (0.02) |
Weighted average number of shares outstanding - Basic and diluted | 25,346,004 | 25,346,004 | 25,346,004 | 25,346,004 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (947,485) | $ (569,586) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 84,277 | 88,434 |
Loss on disposal of plant and equipment | 3,323 | |
(Increase) decrease in: | ||
Accounts receivable | (1,880,493) | 1,528,916 |
Inventories | (924) | (152,416) |
Advances to suppliers | (252,620) | 44,533 |
Other receivables | (80,870) | 1,809,372 |
Accounts payables | 1,661,429 | (338,726) |
Accrued expenses and other payables | 373,429 | 117,169 |
Advances from customers | (19,002) | (1,440,672) |
Taxes payable | (3,950) | |
Net cash (used in) provided by operating activities | (1,058,936) | 1,083,074 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of plant and equipment | (94,864) | (91,246) |
Net cash used in investing activities | (94,864) | (91,246) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from related party borrowings | 1,828,042 | 4,251,157 |
Repayment of related party borrowings | (665,323) | (5,388,040) |
Proceeds from third party borrowings | 3,596,628 | |
Repayment of third party borrowings | (3,507,077) | |
Proceeds from bank borrowings | 515,816 | 159,922 |
Repayment of bank borrowings | (372,135) | |
Net cash provided by (used in) financing activities | 1,306,400 | (887,410) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 152,600 | 104,418 |
Effect of exchange rate changes on cash and cash equivalents | (5,843) | (12,255) |
Cash and cash equivalents, beginning of the period | 277,264 | 264,806 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 424,021 | 356,969 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 11,244 | |
Cash paid during the period for income tax | 12,086 | 8,812 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 1,966,535 |
Consolidated Statements of Chan
Consolidated Statements of Change of Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings Unrestricted [Member] | Retained Earnings Statutory Reserve [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Mar. 31, 2018 | $ 506,920 | $ (420,524) | $ (1,081,198) | $ 21,539 | $ (131,671) | $ (1,104,934) |
Balance, shares at Mar. 31, 2018 | 506,920,000 | |||||
Foreign currency translation | 123,622 | 123,622 | ||||
Net loss for the period | (569,586) | (569,586) | ||||
Balance at Dec. 31, 2018 | $ 506,920 | (420,524) | (1,650,784) | 21,539 | (8,049) | (1,550,898) |
Balance,shares at Dec. 31, 2018 | 506,920,000 | |||||
Balance at Sep. 30, 2018 | $ 506,920 | (420,524) | (1,105,806) | 21,539 | (7,604) | (1,005,475) |
Balance, shares at Sep. 30, 2018 | 506,920,000 | |||||
Foreign currency translation | (445) | (445) | ||||
Net loss for the period | (544,977) | (544,977) | ||||
Balance at Dec. 31, 2018 | $ 506,920 | (420,524) | (1,650,784) | 21,539 | (8,049) | (1,550,898) |
Balance,shares at Dec. 31, 2018 | 506,920,000 | |||||
Balance at Mar. 31, 2019 | $ 25,346 | 61,050 | (1,775,767) | 21,779 | (34,955) | (1,702,547) |
Balance, shares at Mar. 31, 2019 | 25,346,004 | |||||
Foreign currency translation | 58,715 | 58,715 | ||||
Movement of Statutory reserve | (1,737) | 1,737 | ||||
Net loss for the period | (947,485) | (947,485) | ||||
Balance at Dec. 31, 2019 | $ 25,346 | 61,050 | (2,724,989) | 23,516 | 23,761 | (2,591,316) |
Balance,shares at Dec. 31, 2019 | 25,346,004 | |||||
Balance at Sep. 30, 2019 | $ 25,346 | 61,050 | (2,465,040) | 21,779 | 74,201 | (2,282,664) |
Balance, shares at Sep. 30, 2019 | 25,346,004 | |||||
Foreign currency translation | (50,440) | (50,440) | ||||
Movement of Statutory reserve | (1,737) | 1,737 | ||||
Net loss for the period | (258,212) | (258,212) | ||||
Balance at Dec. 31, 2019 | $ 25,346 | $ 61,050 | $ (2,724,989) | $ 23,516 | $ 23,761 | $ (2,591,316) |
Balance,shares at Dec. 31, 2019 | 25,346,004 |
Organization and Business Acqui
Organization and Business Acquisitions | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Acquisitions | 1. ORGANIZATION AND BUSINESS ACQUISITIONS Addentax Group Corp. (“ATXG”) was incorporated in Nevada on October 28, 2014, and before the transaction described below, ATXG is engaged in the field of producing images on multiple surfaces using heat transfer technology. On December 28, 2016, ATXG acquired 250,000,000 shares of the issued and outstanding stock of Yingxi Industrial Chain Group Co., Ltd. (“Yingxi”). The 250,000,000 shares of Yingxi were acquired from the members of Yingxi in a share exchange transaction in return for the issuance of 500,000,000 shares of common stock of ATXG. The 250,000,000 shares of Yingxi constitute 100% of its issued and outstanding stock, and as a result of the transaction, Yingxi became a wholly-owned subsidiary of ATXG. And following the consummation of the reverse acquisition effective on September 25, 2017, and giving effect to the securities exchanged in the offering, the members of Yingxi will beneficially own approximately ninty-nine percent (99%) of the issued and outstanding common stock of ATXG. For accounting purposes, the Company was treated as an acquiree and Yingxi as an acquirer, as a result, the business and financial information contained in this report is that of the acquirer prior to the consummation date and that of the combined entity after that date. Yingxi was incorporated in the Republic of Seychelles on August 4, 2016. ATXG, together with Yingxi and its subsidiaries (the “Company”) operates primarily in the People’s Republic of China (“PRC” or “China”) and is engaged in the business of garments manufacturing and providing logistic services. On December 15, 2016, Yingxi entered into an equity transfer agreement with the shareholder of Yingxi Industrial Chain Investment Co., Ltd (“Yingxi HK”) under which Yingxi agreed to pay total consideration of RMB21,008,886 (approximately $3,048,936) in cash in exchange for a 100% ownership interest in Yingxi HK. Yingxi HK was incorporated in Hong Kong in 2016. Yingxi HK is a holding company with no assets other than a 100% equity interest of the following subsidiaries: Qianhai Yingxi Textile & Garments Co., Ltd (“QYTG”), a wholly-owned subsidiary of Yingxi HK, was incorporated in the PRC in 2016. Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), a wholly-owned subsidiary of QYTG, was incorporated in the PRC in 2016. Xin Kuai Jie Transport Co., Ltd (“XKJ”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2001. XKJ is engaged in the provision of logistic services. Shenzhen Hua Peng Fa Logistics Co., Ltd (“HPF”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2006. HPF is engaged in the provision of logistic services. Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2009. HSW is a garment manufacturer. Shantou Chenghai Dai Tou Garments Co., Ltd (“DT”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2009. DT is a garment manufacturer. Dongguan Yingxi Daying Commercial Co., Ltd (“DY”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2019. DY is a property management company for the garment manufacturing industry. Dongguan Yushang Clothing Co., Ltd (“YS”), a wholly-owned subsidiary of YX, was incorporated in the PRC in 2019. YS is a garment manufacturer. Shantou Yi Bai Yi Garments Co., Ltd (“YBY”), a wholly-owned subsidiary of YX, was incorporated in PRC in 2019, YBY is a garment manufacturer. |
Basis of Presentation, Liquidit
Basis of Presentation, Liquidity | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Liquidity | 2. BASIS OF PRESENTATION, LIQUIDITY The accompanying consolidated financial statements of the Company and its subsidiaries are prepared pursuant to the rules and regulations of the U.S Securities and Exchanges Commission (“SEC”) and in conformity with generally accepted accounting principles in the U.S. (“US GAAP”). All material inter-company accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements are presented on the basis that the Company is a going concern. The going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net loss of $(258,212), $(544,977) for the three months ended December 31, 2019 and 2018, respectively, and $(947,485), $(569,586) for the nine months ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and March 31, 2019, the Company had net current liability of $4,189,643 and $2,871,981, respectively, and a deficit on total equity of $2,591,316 and $1,702,547, respectively. The ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO. During the period, the CEO has provided financial support for the operations of the Company. In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on the Company’s ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. (b) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity. (c) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. (d) Fair Value Measurement Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). At December 31, 2019, the Company has no financial assets or liabilities subject to recurring fair value measurements. The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, accounts payable, other payables, taxes payables and related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions. (e) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2019 and March 31, 2019. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. (f) Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit terms are dependent upon the segment, and the customer. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made for the three and nine months ended December 31, 2019 and 2018. The following customers had an accounts receivable balance greater than 10% of total accounts receivable at December 31, 2019 and March 31, 2019. December 31, 2019 March 31, 2019 Customer A 64 % 0 % Customer B 8 % 10 % Customer C 7 % 18 % Customer D 3 % 12 % Customer E 3 % 12 % (g) Inventories Manufacturing segment inventories consist of raw materials, work in progress and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. No allowance for obsolete finished goods for both three and nine months ended December 31, 2019 and 2018. During the three and nine months ended December 31, 2019 and 2018, approximately 99%, 91%, 76% and 51% of total inventory purchases were from the Company’s five largest suppliers, respectively. Management believes that should the Company lose any one of its major suppliers, other suppliers are available that could provide similar products to the Company. (h) Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: Production plant 5-10 years Motor vehicles 10-15 years Office equipment 5-10 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. (i) Goodwill Goodwill represents the excess of the purchase price over the net fair value of the identifiable tangible and intangible assets acquired and the fair value of liabilities assumed in acquisitions. ASC350-30-50 “Goodwill and Other Intangible Assets”, requires the testing of goodwill and indefinite-lived intangible assets for impairment at least annually. The Company tests goodwill for impairment in the fourth quarter of each years. Under applicable accounting guidance, the goodwill impairment analysis is a two-step test. The first step of the goodwill impairment test involves comparing the fair value of each reporting unit with its carrying amount including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step must be performed to measure potential impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated possible impairment. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess. The Company tested goodwill for impairment as of March 31, 2019 and it was determined that recoverable amount of one of the Company’s reporting units was higher than the carrying amount of the goodwill recorded. Therefore it was concluded that no impairment for goodwill is required. As of December 31, 2019 and March 31, 2019, no carrying amount of goodwill was impaired. (j) Accounting for the Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There was no impairment of long-lived assets as of December 31, 2019 and March 31, 2019. (k) Revenue Recognition Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods and services in the contract; (ii) determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules Cost of revenues for manufacturing segment includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of for service segment includes gasoline and diesel fuel, toll charges and subcontracting fees. (l) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive ordinary shares as of December 31, 2019 and March 31, 2019. (m) Income Taxes The Company accounts for income taxes using the asset and liability method prescribed by ASC 740 “Income Taxes”. 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 years in which the differences are expected to reverse. The Company records 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 rates is recognized as income or loss in the period that includes the enactment date. The Company has a history of tax losses and there is no convincing evidence that sufficient taxable income will be available against which the deferred tax asset can be utilised, therefore, the Company does not recognize any tax benefits for the three and nine months ended December 31, 2019 and 2018. The Company is governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25%. The Company files income tax returns with the relevant government authorities in the PRC. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the three and nine months ended December 31, 2019 and 2018. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatments. New U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transaction tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in a single lump-sum payment. The Company measured the current and deferred taxes based on the provisions of the Tax legislation. After the Company’s measurement, no deferred tax benefit nor expense were recorded relating to the Tax Act changes for the three and nine months ended December 31, 2019 and 2018. (n) Related party balances and transactions A related party is generally defined as: (i) any person that holds the Company’s securities including such person’s 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. (o) Interest Rate Risk Our exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of December 31, 2019, our total outstanding borrowings amounted to $359,038 (RMB2,500,000) with various interest rates from 4.84% to 6.96%. (Note 10) (p) Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, The Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. (q) Recently issued and adopted accounting pronouncements In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this ASU on update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method each period presented. The Company adopted this ASU on April 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”) In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This standard was effective for the Company on September 1, 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on December 15, 2019. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842)”, The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Accounts Receivables
Accounts Receivables | 9 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivables | 4. ACCOUNTS RECEIVABLES The receivables and allowance balances at December 31, 2019 and March 31 2019 are as follows: December 31, 2019 March 31, 2019 (unaudited) (audited) Accounts receivable $ 3,678,982 $ 1,798,489 Less: allowance for doubtful accounts - - Accounts receivable, net $ 3,678,982 $ 1,798,489 No allowance for doubtful accounts was made for the three and nine months ended December 31, 2019 and 2018. |
Other Receivables
Other Receivables | 9 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Other Receivables | 5. OTHER RECEIVABLES Other receivables primarily represent rental deposit; refundable security deposits to customers for quality assurance on the provision of logistic service; and unsecured and non-interest bearing short-term advances that the Company makes from time-to-time to employees. These advances are unsecured and due on demand. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. RELATED PARTY TRANSACTIONS Name of Related Parties Relationship with the Company Zhida Hong President, CEO and a director of the Company Zhongpeng Chen A legal representative of HPF Dewu Huang A legal representative of DT Jinlong Huang A spouse of legal representative of HSW The Company leases Shenzhen XKJ office rent-free from Bihua Yang. The Company had the following related party balances as of December 31, 2019 and March 31, 2019: Amounts due to related parties December 31, 2019 March 31, 2019 (unaudited) (audited) Zhida Hong $ 4,904,847 $ 3,989,382 Zhongpeng Chen 163,118 169,235 Jinlong Huang 98,470 45,513 Dewu, Huang 60,319 - $ 5,226,754 $ 4,204,130 The balances with related parties are unsecured, non-interest bearing and repayable on demand. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. INVENTORIES Inventories consist of the following as of December 31, 2019 and March 31, 2019: December 31, 2019 March 31, 2019 (unaudited) (audited) Raw materials $ 212,409 $ 157,382 Work in progress 38,413 160,665 Finished goods 68,149 - Total inventories, net $ 318,971 $ 318,047 There is no inventory allowance for the three and nine months ended December 31, 2019 and 2018. |
Advances to Suppliers
Advances to Suppliers | 9 Months Ended |
Dec. 31, 2019 | |
Advances To Suppliers | |
Advances to Suppliers | 8. ADVANCES TO SUPPLIERS The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand. The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected. |
Plant and Equipment
Plant and Equipment | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Plant and Equipment | 9. PLANT AND EQUIPMENT Plant and equipment consists of the following as of December 31, 2019 and March 31, 2019: December 31, 2019 March 31, 2019 (unaudited) (audited) Production plant $ 68,375 $ 107,173 Motor vehicles 1,053,996 1,016,818 Office equipment 19,798 14,722 1,142,169 1,138,713 Less: accumulated depreciation (474,363 ) (444,282 ) Plant and equipment, net $ 667,806 $ 694,431 Depreciation expense for the three and nine months ended December 31, 2019 and 2018 was $27,648 and $84,277, $28,391 and $88,434, respectively. |
Short-term Bank Loan
Short-term Bank Loan | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Bank Loan | 10. SHORT-TERM BANK LOAN In September 2018, HSW, a subsidiary of the Company entered into a facility agreement with Dongguan Agricultural Commercial Bank and obtained a line of credit, which allows the Company to borrow up to approximately $215,522 (RMB1,500,000) for daily operations. The loans are guaranteed at no cost by the legal representative of HSW. As of December 31, 2019, the Company has borrowed $215,423 (RMB1,500,000) under this line of credit with fixed interest rate of 6.96% per annum. The line of credit is fully used. The outstanding loan balance will be due in September 2020. In August 2019, HSW entered into a new facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company to borrow up to approximately $143,682 (RMB1,000,000) for daily operations. The loans are guaranteed at no cost by the legal representative of HSW. As of December 31, 2019, the Company has borrowed $143,616 (RMB1,000,000) under this line of credit with various annual interest rates from 4.84% to 4.9%. The line of credit is fully used. The outstanding loan balance will be due in July 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES (a) Enterprise Income Tax (“EIT”) The Company operates in the PRC and files tax returns in the PRC jurisdictions. Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes. Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a tax rate of 16.5%. No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the three and nine months ended December 31, 2019 and 2018. YX were incorporated in the PRC and is subject to the EIT tax rate of 25%. No provision for income taxes in the PRC has been made as YX had no taxable income for the three and nine months ended December 31, 2019 and 2018. The Company is governed by the Income Tax Laws of the PRC. Yingxi’s operating companies, QYTG, HSW, HPF, DT and YS were subject to an EIT rate of 25% in 2019 and 2018. XKJ enjoyed the preferential tax benefits and its EIT rate was 15% in 2019 and 2018. The Company’s parent entity, Addentax Group Corp. is an U.S entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Addentax Group Corp. had no United States taxable income for the three and nine months ended December 31, 2019 and 2018. No deferred taxes were recognized for the three and nine months ended December 31, 2019 and 2018. The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable to the PRC, to income tax expenses are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected expenses (62,297 ) (135,719 ) (233,850 ) (140,748 ) Temporary differences not recognized 22,942 (558 ) 32,028 (86,722 ) Tax losses not recognized 48,377 138,379 213,908 234,061 Income tax expense $ 9,022 $ 2,102 $ 12,086 $ 6,591 (b) Value Added Tax (“VAT”) In accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 17%, which is levied on the invoiced value of sales and is payable by the purchaser. The subsidiaries HSW, DT and YS enjoyed preferential VAT rate of 13%. The Companies are required to remit the VAT it collects to the tax authority. A credit is available whereby VAT paid on purchases can be used to offset the VAT due on sales. For services, the applicable VAT rate is 11% under the relevant tax category for logistic company, except the branch of HPF enjoyed the preferential VAT rate of 3% in 2019 and 2018. The Company is required to pay the full amount of VAT calculated at the applicable VAT rate of the invoiced value of sales as required. A credit is available whereby VAT paid on gasoline and toll charges can be used to offset the VAT due on service income. |
Consolidated Segment Data
Consolidated Segment Data | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Consolidated Segment Data | 12. CONSOLIDATED SEGMENT DATA Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects this segment structure. The Company reports financial and operating information in the following two segments: (a) Manufacturing of garments (the “Manufacturing segment”); and (b) Providing logistic services (the “Service segment”). The Company also provides general corporate services to its segments and these costs are reported as “Corporate and others”. Selected information in the segment structure is presented in the following tables: Revenues by segment for the three and nine months ended December 31, 2019 and 2018 are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 Revenues (unaudited) (unaudited) (unaudited) (unaudited) Manufacturing segment 2,643,560 731,310 3,517,009 2,760,966 Service segment 1,384,342 1,810,493 4,665,387 5,347,442 $ 4,027,902 $ 2,541,803 $ 8,182,396 $ 8,108,408 Income from operations by segment for the three and nine months ended December 31, 2019 and 2018 are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 Operating income (loss) (unaudited) (unaudited) (unaudited) (unaudited) Manufacturing segment $ 158,268 $ (33,584 ) $ 187,803 $ (12,458 ) Service segment (176,350 ) (255,499 ) (168,634 ) 37,292 Corporate and other (227,210 ) (255,934 ) (927,569 ) (606,961 ) Income (loss) from operations $ (245,292 ) $ (545,017 ) $ (908,400 ) $ (582,127 ) Manufacturing segment (3,563 ) 5 (22,848 ) 13,358 Service segment (53 ) 2,072 (3,760 ) 2,726 Corporate and other (282 ) 65 (391 ) 3,048 Income (loss) before income tax $ (249,190 ) (542,875 ) (935,399 ) (562,995 ) Income tax expense (9,022 ) (2,102 ) (12,086 ) (6,591 ) Net income (loss) $ (258,212 ) $ (544,977 ) $ (947,485 ) $ (569,586 ) Depreciation and amortization by segment for the three and nine months ended December 31, 2019 and 2018 are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 Depreciation (unaudited) (unaudited) (unaudited) (unaudited) Manufacturing segment 1,746 4,237 7,536 18,987 Service segment 25,902 24,154 76,742 69,447 $ 27,648 $ 28,391 $ 84,278 $ 88,434 Total assets by segment at December 31, 2019 and March 31, 2019 are as follows: Total assets December 31, 2019 March 31, 2019 (unaudited) (audited) Manufacturing segment $ 3,518,909 $ 1,242,335 Service segment 2,237,225 2,253,308 Corporate and other 2,490,021 476,203 $ 8,246,155 $ 3,971,846 Goodwill by segment at December 31, 2019 and March 31, 2019 is as follows: Goodwill December 31, 2019 March 31, 2019 (unaudited) (audited) Manufacturing segment $ 475,003 $ 475,003 Service segment - - $ 475,003 $ 475,003 The recoverable amounts of reporting units are determined based on discounted cash flow calculations. The calculations use forecast for the first year and cash flow projections based on financial forecasts prepared by management covering the remaining 4-year operating period. The key assumptions include revenue, cost of sales and operating expenses which were determined by management based on the past performance and the implementation of the Company’s strategy. Based on the impairment test of goodwill, the recoverable amount was higher than the carrying amount of the goodwill recorded and it was concluded that no impairment against the amount of goodwill as of December 31, 2019 is necessary. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 9 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | 13. ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following as of December 31, 2019 and March 31, 2019: December 31, 2019 March 31, 2019 (unaudited) (audited) Lease liabilities – current portion (i) $ 455,518 $ - Accrued wages and welfare 84,085 84,677 Other payables 598,972 175,160 $ 1,138,575 $ 259,837 (i) Lease liabilities – current portion represents the operating lease liabilities due within next 12 months. |
Lease Right-of-Use Asset and Le
Lease Right-of-Use Asset and Lease Liabilities | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Right-of-Use Asset and Lease Liabilities | 14. LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES The Company implemented new accounting policy according to the ASC 842, Leases, on April 1, 2019 on a modified retrospective basis and did not restate comparative periods. Under the new policy, the Company recognized approximately $0.06 million lease liability as well as right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2019, with discounted rate of 4.35%. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. As of December 31, 2019 and March 31, 2019, the right-of use asset and lease liabilities are as follows: December 31, 2019 March 31, 2019 (unaudited) (audited) Right-of-use asset – operating leases $ 1,939,270 $ - Lease liabilities – current portion 455,518 - Lease liabilities – non-current portion 1,483,752 - $ 1,939,270 $ - Lease cost Three months ended Nine months ended 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) Operating lease cost 126,053 23,157 325,664 77,664 Short-term lease cost 6,445 - 70,231 - $ 132,498 $ 23,157 395,895 77,664 Other information Three months ended Nine months ended 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 132,498 $ - $ 395,895 $ - Right-of-use assets obtained in exchange for new operating leases liabilities 65,527 - 1,966,535 - Weighted average remaining lease term - Operating leases (years) 4.5 - 4.5 - Weighted average discount rate - Operating leases 4.35 % - 4.35 % - |
Reserves
Reserves | 9 Months Ended |
Dec. 31, 2019 | |
Reserves | |
Reserves | 15. RESERVES (a) Statutory reserve In accordance with the relevant laws and regulations of the PRC, the subsidiary of the Company established in the PRC is required to transfer 10% of its profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the subsidiary’s paid-up capital. Such reserve may be used to offset accumulated losses or increase the registered capital of the subsidiary, subject to the approval from the PRC authorities, and are not available for dividend distribution to the shareholders. The paid-up statutory reserve was $23,516 and $21,779 as of December 31, 2019 and March 31, 2019, respectively. (b) Currency translation reserve The currency translation reserve represents translation differences arising from translation of foreign currency financial statements into the Company’s functional currency. |
Reverse Stock Split
Reverse Stock Split | 9 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Reverse Stock Split | 16. REVERSE STOCK SPLIT On January 24, 2019, the Board of Directors of the Company approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”), at a ratio of 1-for-20 (the “Reverse Stock Split”). The Reverse Stock Split was effective on February 27, 2019 (the “Effective Date”). As a result of the filing of the Certificate, the number of shares of the Company’s authorized Common Stock was reduced from 1,000,000,000 shares to 50,000,000 shares and the issued and outstanding number of shares of the Company’s Common Stock was correspondingly decreased to 25,346,004. There was no change to the par value of the Company’s Common Stock. The decrease of Share Capital was transferred to and increased the Additional Paid In Capital. The Company has adjusted all references to number of share and loss per share amounts in the accompanying consolidated financial statements and notes to reflect the reverse stock split. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. SUBSEQUENT EVENTS The outbreak of the virus known as the coronavirus in January 2020 resulted in interruption of both manufacturing business and service business which adversely affected the businesses significantly. Management is evaluating the impact and developing actions plan to minimize the effect and to recover both businesses as soon as possible. . There is no other subsequent events have occurred that would require recognition or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Economic and Political Risks | (a) Economic and Political Risks The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. |
Foreign Currency Translation | (b) Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity. |
Use of Estimates | (c) Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. |
Fair Value Measurement | (d) Fair Value Measurement Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The statement clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. It also emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and that market participant assumptions include assumptions about risk and effect of a restriction on the sale or use of an asset. This ASC establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). At December 31, 2019, the Company has no financial assets or liabilities subject to recurring fair value measurements. The Company’s financial instruments include cash, accounts receivable, advances to suppliers, other receivables, accounts payable, other payables, taxes payables and related party receivables or payables. Management estimates that the carrying amounts of financial instruments approximate their fair values due to their short-term nature. The fair value of amounts with related parties is not practicable to estimate due to the related party nature of the underlying transactions. |
Cash and Cash Equivalents | (e) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. All cash and cash equivalents relate to cash on hand and cash at bank at December 31, 2019 and March 31, 2019. The Renminbi is not freely convertible into foreign currencies. Under the PRC Foreign Exchange Control Regulations and Administration of Settlement, Sales and Payment of Foreign Exchange Regulations, the Company is permitted to exchange Renminbi for foreign currencies through banks that are authorized to conduct foreign exchange business. |
Accounts Receivable | (f) Accounts Receivable Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. The Company’s credit terms are dependent upon the segment, and the customer. The Company assesses the probability of collection from each customer at the outset of the arrangement based on a number of factors, including the customer’s payment history and its current creditworthiness. If in management’s judgment collection is not probable, the Company does not record revenue until the uncertainty is removed. Management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in existing accounts receivable. Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of trade receivables. In the analysis, management primarily considers the age of the customer’s receivable, and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, general economic conditions and trends, and the business relationship and history with its customers, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful accounts receivable is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. No allowance for doubtful accounts was made for the three and nine months ended December 31, 2019 and 2018. The following customers had an accounts receivable balance greater than 10% of total accounts receivable at December 31, 2019 and March 31, 2019. December 31, 2019 March 31, 2019 Customer A 64 % 0 % Customer B 8 % 10 % Customer C 7 % 18 % Customer D 3 % 12 % Customer E 3 % 12 % |
Inventories | (g) Inventories Manufacturing segment inventories consist of raw materials, work in progress and finished goods and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. When inventories are sold, their carrying amount is charged to expense in the period in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the period the impairment or loss occurs. No allowance for obsolete finished goods for both three and nine months ended December 31, 2019 and 2018. During the three and nine months ended December 31, 2019 and 2018, approximately 99%, 91%, 76% and 51% of total inventory purchases were from the Company’s five largest suppliers, respectively. Management believes that should the Company lose any one of its major suppliers, other suppliers are available that could provide similar products to the Company. |
Plant and Equipment | (h) Plant and Equipment Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows: Production plant 5-10 years Motor vehicles 10-15 years Office equipment 5-10 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to the statement of income as incurred, whereas significant renewals and betterments are capitalized. |
Goodwill | (i) Goodwill Goodwill represents the excess of the purchase price over the net fair value of the identifiable tangible and intangible assets acquired and the fair value of liabilities assumed in acquisitions. ASC350-30-50 “Goodwill and Other Intangible Assets”, requires the testing of goodwill and indefinite-lived intangible assets for impairment at least annually. The Company tests goodwill for impairment in the fourth quarter of each years. Under applicable accounting guidance, the goodwill impairment analysis is a two-step test. The first step of the goodwill impairment test involves comparing the fair value of each reporting unit with its carrying amount including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step must be performed to measure potential impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated possible impairment. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess. The Company tested goodwill for impairment as of March 31, 2019 and it was determined that recoverable amount of one of the Company’s reporting units was higher than the carrying amount of the goodwill recorded. Therefore it was concluded that no impairment for goodwill is required. As of December 31, 2019 and March 31, 2019, no carrying amount of goodwill was impaired. |
Accounting for the Impairment of Long-lived Assets | (j) Accounting for the Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There was no impairment of long-lived assets as of December 31, 2019 and March 31, 2019. |
Revenue Recognition | (k) Revenue Recognition Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods and services in the contract; (ii) determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery. For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules Cost of revenues for manufacturing segment includes the direct raw material cost, direct labor cost, manufacturing overheads including depreciation of production equipment and rent. Cost of for service segment includes gasoline and diesel fuel, toll charges and subcontracting fees. |
Earnings Per Share | (l) Earnings Per Share The Company reports earnings per share in accordance with ASC 260 “Earnings Per Share”, which requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the reporting period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Further, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split, the computations of a basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect that change in capital structure. The Company’s basic earnings per share is computed by dividing the net income available to holders by the weighted average number of the Company’s ordinary shares outstanding. Diluted earnings per share reflects the amount of net income available to each ordinary share outstanding during the period plus the number of additional shares that would have been outstanding if potentially dilutive securities had been issued. The Company had no potentially dilutive ordinary shares as of December 31, 2019 and March 31, 2019. |
Income Taxes | (m) Income Taxes The Company accounts for income taxes using the asset and liability method prescribed by ASC 740 “Income Taxes”. 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 years in which the differences are expected to reverse. The Company records 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 rates is recognized as income or loss in the period that includes the enactment date. The Company has a history of tax losses and there is no convincing evidence that sufficient taxable income will be available against which the deferred tax asset can be utilised, therefore, the Company does not recognize any tax benefits for the three and nine months ended December 31, 2019 and 2018. The Company is governed by the Income Tax Laws of the PRC. The PRC federal statutory tax rate is 25%. The Company files income tax returns with the relevant government authorities in the PRC. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the three and nine months ended December 31, 2019 and 2018. The Company’s effective tax rate differs from the PRC federal statutory rate primarily due to non-deductible expenses, temporary differences and preferential tax treatments. New U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transaction tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years, or in a single lump-sum payment. The Company measured the current and deferred taxes based on the provisions of the Tax legislation. After the Company’s measurement, no deferred tax benefit nor expense were recorded relating to the Tax Act changes for the three and nine months ended December 31, 2019 and 2018. |
Related Party Balances and Transactions | (n) Related party balances and transactions A related party is generally defined as: (i) any person that holds the Company’s securities including such person’s 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. |
Interest Rate Risk | (o) Interest Rate Risk Our exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the interest income generated by cash invested in cash deposits and liquid investments. As of December 31, 2019, our total outstanding borrowings amounted to $359,038 (RMB2,500,000) with various interest rates from 4.84% to 6.96%. (Note 10) |
Leases | (p) Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, The Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Recently Issued and Adopted Accounting Pronouncements | (q) Recently issued and adopted accounting pronouncements In November 2016, the FASB issued ASU 2016-18: Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this ASU on update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this Update should be applied using a retrospective transition method each period presented. The Company adopted this ASU on April 1, 2018 and determined it had no impact on its consolidated financial statements as of December 31, 2019. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement to ASC Topic 820, Fair Value Measurement (“ASC 820”) In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This standard was effective for the Company on September 1, 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This standard will be effective for the Company on December 15, 2019. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842)”, The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Concentration of Risk by Customers | The following customers had an accounts receivable balance greater than 10% of total accounts receivable at December 31, 2019 and March 31, 2019. December 31, 2019 March 31, 2019 Customer A 64 % 0 % Customer B 8 % 10 % Customer C 7 % 18 % Customer D 3 % 12 % Customer E 3 % 12 % |
Schedule of Plant and Equipment Useful Lives | Estimated useful lives of the plant and equipment are as follows: Production plant 5-10 years Motor vehicles 10-15 years Office equipment 5-10 years |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivables and Allowance Balances | The receivables and allowance balances at December 31, 2019 and March 31 2019 are as follows: December 31, 2019 March 31, 2019 (unaudited) (audited) Accounts receivable $ 3,678,982 $ 1,798,489 Less: allowance for doubtful accounts - - Accounts receivable, net $ 3,678,982 $ 1,798,489 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Parties | Name of Related Parties Relationship with the Company Zhida Hong President, CEO and a director of the Company Zhongpeng Chen A legal representative of HPF Dewu Huang A legal representative of DT Jinlong Huang A spouse of legal representative of HSW |
Schedule of Related Parties Transactions | The Company had the following related party balances as of December 31, 2019 and March 31, 2019: Amounts due to related parties December 31, 2019 March 31, 2019 (unaudited) (audited) Zhida Hong $ 4,904,847 $ 3,989,382 Zhongpeng Chen 163,118 169,235 Jinlong Huang 98,470 45,513 Dewu, Huang 60,319 - $ 5,226,754 $ 4,204,130 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following as of December 31, 2019 and March 31, 2019: December 31, 2019 March 31, 2019 (unaudited) (audited) Raw materials $ 212,409 $ 157,382 Work in progress 38,413 160,665 Finished goods 68,149 - Total inventories, net $ 318,971 $ 318,047 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Plant and Equipment | Plant and equipment consists of the following as of December 31, 2019 and March 31, 2019: December 31, 2019 March 31, 2019 (unaudited) (audited) Production plant $ 68,375 $ 107,173 Motor vehicles 1,053,996 1,016,818 Office equipment 19,798 14,722 1,142,169 1,138,713 Less: accumulated depreciation (474,363 ) (444,282 ) Plant and equipment, net $ 667,806 $ 694,431 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Taxes | The reconciliation of income taxes computed at the PRC federal statutory tax rate applicable to the PRC, to income tax expenses are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) PRC statutory tax rate 25 % 25 % 25 % 25 % Computed expected expenses (62,297 ) (135,719 ) (233,850 ) (140,748 ) Temporary differences not recognized 22,942 (558 ) 32,028 (86,722 ) Tax losses not recognized 48,377 138,379 213,908 234,061 Income tax expense $ 9,022 $ 2,102 $ 12,086 $ 6,591 |
Consolidated Segment Data (Tabl
Consolidated Segment Data (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Revenues by segment for the three and nine months ended December 31, 2019 and 2018 are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 Revenues (unaudited) (unaudited) (unaudited) (unaudited) Manufacturing segment 2,643,560 731,310 3,517,009 2,760,966 Service segment 1,384,342 1,810,493 4,665,387 5,347,442 $ 4,027,902 $ 2,541,803 $ 8,182,396 $ 8,108,408 Income from operations by segment for the three and nine months ended December 31, 2019 and 2018 are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 Operating income (loss) (unaudited) (unaudited) (unaudited) (unaudited) Manufacturing segment $ 158,268 $ (33,584 ) $ 187,803 $ (12,458 ) Service segment (176,350 ) (255,499 ) (168,634 ) 37,292 Corporate and other (227,210 ) (255,934 ) (927,569 ) (606,961 ) Income (loss) from operations $ (245,292 ) $ (545,017 ) $ (908,400 ) $ (582,127 ) Manufacturing segment (3,563 ) 5 (22,848 ) 13,358 Service segment (53 ) 2,072 (3,760 ) 2,726 Corporate and other (282 ) 65 (391 ) 3,048 Income (loss) before income tax $ (249,190 ) (542,875 ) (935,399 ) (562,995 ) Income tax expense (9,022 ) (2,102 ) (12,086 ) (6,591 ) Net income (loss) $ (258,212 ) $ (544,977 ) $ (947,485 ) $ (569,586 ) Depreciation and amortization by segment for the three and nine months ended December 31, 2019 and 2018 are as follows: Three months ended Nine months ended December 31, December 31, 2019 2018 2019 2018 Depreciation (unaudited) (unaudited) (unaudited) (unaudited) Manufacturing segment 1,746 4,237 7,536 18,987 Service segment 25,902 24,154 76,742 69,447 $ 27,648 $ 28,391 $ 84,278 $ 88,434 Total assets by segment at December 31, 2019 and March 31, 2019 are as follows: Total assets December 31, 2019 March 31, 2019 (unaudited) (audited) Manufacturing segment $ 3,518,909 $ 1,242,335 Service segment 2,237,225 2,253,308 Corporate and other 2,490,021 476,203 $ 8,246,155 $ 3,971,846 Goodwill by segment at December 31, 2019 and March 31, 2019 is as follows: Goodwill December 31, 2019 March 31, 2019 (unaudited) (audited) Manufacturing segment $ 475,003 $ 475,003 Service segment - - $ 475,003 $ 475,003 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Payables | Accrued expenses and other payables consist of the following as of December 31, 2019 and March 31, 2019: December 31, 2019 March 31, 2019 (unaudited) (audited) Lease liabilities – current portion (i) $ 455,518 $ - Accrued wages and welfare 84,085 84,677 Other payables 598,972 175,160 $ 1,138,575 $ 259,837 (i) Lease liabilities – current portion represents the operating lease liabilities due within next 12 months. |
Lease Right-of-Use Asset and _2
Lease Right-of-Use Asset and Lease Liabilities (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Right-of Use Asset and Lease Liability | As of December 31, 2019 and March 31, 2019, the right-of use asset and lease liabilities are as follows: December 31, 2019 March 31, 2019 (unaudited) (audited) Right-of-use asset – operating leases $ 1,939,270 $ - Lease liabilities – current portion 455,518 - Lease liabilities – non-current portion 1,483,752 - $ 1,939,270 $ - |
Schedule of Lease Cost | Lease cost Three months ended Nine months ended 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) Operating lease cost 126,053 23,157 325,664 77,664 Short-term lease cost 6,445 - 70,231 - $ 132,498 $ 23,157 395,895 77,664 |
Schedule of Other Information for Right-of Use Asset and Lease Liabilities | Other information Three months ended Nine months ended 2019 2018 2019 2018 (unaudited) (unaudited) (unaudited) (unaudited) Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 132,498 $ - $ 395,895 $ - Right-of-use assets obtained in exchange for new operating leases liabilities 65,527 - 1,966,535 - Weighted average remaining lease term - Operating leases (years) 4.5 - 4.5 - Weighted average discount rate - Operating leases 4.35 % - 4.35 % - |
Organization and Business Acq_2
Organization and Business Acquisitions (Details Narrative) - Yingxi Industrial Chain Group Co., Ltd [Member] | Dec. 28, 2016shares | Dec. 15, 2016USD ($) | Dec. 15, 2016CNY (¥) |
Number of shares acquired | 250,000,000 | ||
Number of shares issued | 500,000,000 | ||
Equity investment percentage | 100.00% | ||
Beneficially owned percentage | 99.00% | ||
Equity Transfer Agreement [Member] | |||
Equity investment percentage | 100.00% | 100.00% | |
Business combination total consideration | $ | $ 3,048,936 | ||
Equity Transfer Agreement [Member] | RMB [Member] | |||
Business combination total consideration | ¥ | ¥ 21,008,886 |
Basis of Presentation, Liquid_2
Basis of Presentation, Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Net loss | $ (258,212) | $ (544,977) | $ (947,485) | $ (569,586) | ||||
Net current liability | 4,189,643 | 4,189,643 | $ 2,871,981 | |||||
Deficit on total equity | $ (2,591,316) | $ (1,550,898) | $ (2,591,316) | $ (1,550,898) | $ (2,282,664) | $ (1,702,547) | $ (1,005,475) | $ (1,104,934) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($)shares | Apr. 02, 2019USD ($) | |
Cash equivalents | |||||||
Allowance for doubtful accounts | |||||||
Allowance for obsolete finished goods | |||||||
Impairment loss on goodwill | |||||||
Impairment of long-lived assets | |||||||
Potentially dilutive ordinary shares | shares | |||||||
Deferred tax benefit | |||||||
Outstanding borrowings | 359,038 | ||||||
Operating lease, right of use asset | 1,939,270 | 1,939,270 | |||||
Operating lease, liability | 1,939,270 | 1,939,270 | |||||
ASU 2016-02 [Member] | |||||||
Operating lease, right of use asset | 1,900,000 | 1,900,000 | $ 60,000 | ||||
Operating lease, liability | $ 1,900,000 | $ 1,900,000 | $ 60,000 | ||||
Dongguan Agricultural Bank of China [Member] | Minimum [Member] | |||||||
Line of credit facility, interest rate | 4.84% | 4.84% | |||||
Dongguan Agricultural Bank of China [Member] | Maximum [Member] | |||||||
Line of credit facility, interest rate | 6.96% | 6.96% | |||||
RMB [Member] | |||||||
Outstanding borrowings | ¥ | ¥ 2,500,000 | ||||||
U.S. Tax Reform [Member] | |||||||
Effective federal statutory tax rate | 21.00% | 21.00% | |||||
Income tax examination, description | The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017 | The U.S. Tax Reform modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017 | |||||
People's Republic of China [Member] | |||||||
Effective federal statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | ||
Five Largest Suppliers [Member] | |||||||
Percentage of inventory purchase | 99.00% | 76.00% | 91.00% | 91.00% | 51.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Concentration of Risk by Customers (Details) - Accounts Receivable [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Customer A [Member] | ||
Concentration risk, percentage | 64.00% | 0.00% |
Customer B [Member] | ||
Concentration risk, percentage | 8.00% | 10.00% |
Customer C [Member] | ||
Concentration risk, percentage | 7.00% | 18.00% |
Customer D [Member] | ||
Concentration risk, percentage | 3.00% | 12.00% |
Customer E [Member] | ||
Concentration risk, percentage | 3.00% | 12.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Concentration of Risk by Customers (Details) (Parenthetical) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Accounts Receivable [Member] | Customers [Member] | ||
Concentration risk percentage | 10.00% | 10.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Plant and Equipment Useful Lives (Details) | 9 Months Ended |
Dec. 31, 2019 | |
Production Plant [Member] | Minimum [Member] | |
Plant and equipment, useful lives | 5 years |
Production Plant [Member] | Maximum [Member] | |
Plant and equipment, useful lives | 10 years |
Motor Vehicles [Member] | Minimum [Member] | |
Plant and equipment, useful lives | 10 years |
Motor Vehicles [Member] | Maximum [Member] | |
Plant and equipment, useful lives | 15 years |
Office Equipment [Member] | Minimum [Member] | |
Plant and equipment, useful lives | 5 years |
Office Equipment [Member] | Maximum [Member] | |
Plant and equipment, useful lives | 10 years |
Accounts Receivables (Details N
Accounts Receivables (Details Narrative) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Allowance for doubtful accounts |
Accounts Receivables - Schedule
Accounts Receivables - Schedule of Accounts Receivables and Allowance Balances (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Accounts receivable | $ 3,678,982 | $ 1,798,489 | |
Less: allowance for doubtful accounts | |||
Accounts receivable, net | $ 3,678,982 | $ 1,798,489 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Parties (Details) | 9 Months Ended |
Dec. 31, 2019 | |
Zhida Hong [Member] | |
Name of Related Parties | Zhida Hong |
Relationship with the Company | President, CEO and a director of the Company |
Zhongpeng Chen [Member] | |
Name of Related Parties | Zhongpeng Chen |
Relationship with the Company | A legal representative of HPF |
Dewu Huang [Member] | |
Name of Related Parties | Dewu Huang |
Relationship with the Company | A legal representative of DT |
Jinlong Huang [Member] | |
Name of Related Parties | Jinlong Huang |
Relationship with the Company | A spouse of legal representative of HSW |
Related Party Transactions - _2
Related Party Transactions - Schedule of Related Parties Transactions (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Amounts due to related parties | $ 5,226,754 | $ 4,204,130 |
Zhida Hong [Member] | ||
Amounts due to related parties | 4,904,847 | 3,989,382 |
Zhongpeng Chen [Member] | ||
Amounts due to related parties | 163,118 | 169,235 |
Jinlong Huang [Member] | ||
Amounts due to related parties | 98,470 | 45,513 |
Dewu, Huang [Member] | ||
Amounts due to related parties | $ 60,319 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory allowance |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 212,409 | $ 157,382 |
Work in progress | 38,413 | 160,665 |
Finished goods | 68,149 | |
Total inventories, net | $ 318,971 | $ 318,047 |
Plant and Equipment (Details Na
Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 27,648 | $ 28,391 | $ 84,277 | $ 88,434 |
Plant and Equipment - Schedule
Plant and Equipment - Schedule of Plant and Equipment (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 |
Plant and equipment, gross | $ 1,142,169 | $ 1,138,713 |
Less: accumulated depreciation | (474,363) | (444,282) |
Plant and equipment, net | 667,806 | 694,431 |
Production Plant [Member] | ||
Plant and equipment, gross | 68,375 | 107,173 |
Motor Vehicles [Member] | ||
Plant and equipment, gross | 1,053,996 | 1,016,818 |
Office Equipment [Member] | ||
Plant and equipment, gross | $ 19,798 | $ 14,722 |
Short-term Bank Loan (Details N
Short-term Bank Loan (Details Narrative) | 9 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Dongguan Agricultural Bank of China [Member] | Minimum [Member] | ||||||
Line of credit facility, interest rate | 4.84% | |||||
Dongguan Agricultural Bank of China [Member] | Maximum [Member] | ||||||
Line of credit facility, interest rate | 6.96% | |||||
Facility Agreement [Member] | Dongguan Agricultural Commercial Bank [Member] | ||||||
Line of credit maximum borrowing capacity | $ | $ 215,522 | |||||
Line of credit outstanding value | $ | $ 215,423 | |||||
Line of credit facility, interest rate | 6.96% | |||||
Line of credit facility, maturity date | Sep. 30, 2020 | |||||
Facility Agreement [Member] | Dongguan Agricultural Commercial Bank [Member] | RMB [Member] | ||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,500,000 | |||||
Line of credit outstanding value | ¥ | ¥ 1,500,000 | |||||
New Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | ||||||
Line of credit maximum borrowing capacity | $ | $ 143,682 | |||||
Line of credit outstanding value | $ | $ 143,616 | |||||
Line of credit facility, maturity date | Jul. 31, 2020 | |||||
New Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | Minimum [Member] | ||||||
Line of credit facility, interest rate | 4.84% | |||||
New Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | Maximum [Member] | ||||||
Line of credit facility, interest rate | 4.90% | |||||
New Facility Agreement [Member] | Dongguan Agricultural Bank of China [Member] | RMB [Member] | ||||||
Line of credit maximum borrowing capacity | ¥ | ¥ 1,000,000 | |||||
Line of credit outstanding value | ¥ | ¥ 1,000,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Percentage on enterprise income tax | 25.00% | 25.00% | ||
Percentage of preferential tax benefits and EIT rate | 15.00% | 15.00% | ||
Deferred taxes | ||||
Percentage of preferential value added tax | 3.00% | 3.00% | ||
Domestic Tax Authority [Member] | ||||
Percentage of value added tax | 17.00% | |||
Dongguan Heng Sheng Wei Garments Co., Ltd [Member] | ||||
Percentage of preferential value added tax | 13.00% | |||
Logistic Company [Member] | ||||
Percentage of value added tax | 11.00% | |||
Hong Kong [Member] | ||||
Income tax rate | 16.50% | 16.50% | ||
People's Republic of China [Member] | ||||
Federal statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax expense | $ 9,022 | $ 2,102 | $ 12,086 | $ 6,591 |
People's Republic of China [Member] | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
Computed expected expenses | $ (62,297) | $ (135,719) | $ (233,850) | $ (140,748) |
Temporary differences not recognized | 22,942 | (558) | 32,028 | (86,722) |
Tax losses not recognized | 48,377 | 138,379 | 213,908 | 234,061 |
Income tax expense | $ 9,022 | $ 2,102 | $ 12,086 | $ 6,591 |
Consolidated Segment Data (Deta
Consolidated Segment Data (Details Narrative) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019USD ($)Segment | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | Segment | 2 | |
Impairment loss on goodwill | $ |
Consolidated Segment Data - Sch
Consolidated Segment Data - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Revenues | $ 4,027,902 | $ 2,541,803 | $ 8,182,396 | $ 8,108,408 | |
Income (loss) from operations | (245,292) | (545,017) | (908,400) | (582,127) | |
Income (loss) before income tax | (249,190) | (542,875) | (935,399) | (562,995) | |
Income tax expense | (9,022) | (2,102) | (12,086) | (6,591) | |
Net income (loss) | (258,212) | (544,977) | (947,485) | (569,586) | |
Depreciation | 27,648 | 28,391 | 84,277 | 88,434 | |
Total assets | 8,246,155 | 8,246,155 | $ 3,971,846 | ||
Goodwill | 475,003 | 475,003 | 475,003 | ||
Manufacturing Segment [Member] | |||||
Revenues | 2,643,560 | 731,310 | 3,517,009 | 2,760,966 | |
Income (loss) from operations | 158,268 | (33,584) | 187,803 | (12,458) | |
Income (loss) before income tax | (3,563) | 5 | (22,848) | 13,358 | |
Depreciation | 1,746 | 4,237 | 7,536 | 18,987 | |
Total assets | 3,518,909 | 3,518,909 | 1,242,335 | ||
Goodwill | 475,003 | 475,003 | 475,003 | ||
Service Segment [Member] | |||||
Revenues | 1,384,342 | 1,810,493 | 4,665,387 | 5,347,442 | |
Income (loss) from operations | (176,350) | (255,499) | (168,634) | 37,292 | |
Income (loss) before income tax | (53) | 2,072 | (3,760) | 2,726 | |
Depreciation | 25,902 | 24,154 | 76,742 | 69,447 | |
Total assets | 2,237,225 | 2,237,225 | 2,253,308 | ||
Goodwill | |||||
Corporate and Other [Member] | |||||
Revenues | |||||
Income (loss) from operations | (227,210) | (255,934) | (927,569) | (606,961) | |
Income (loss) before income tax | (282) | 65 | (391) | 3,048 | |
Depreciation | |||||
Total assets | $ 2,490,021 | $ 2,490,021 | $ 476,203 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables - Schedule of Accrued Expenses and Other Payables (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |||
Lease liabilities - current portion | [1] | $ 455,518 | |
Accrued wages and welfare | 84,085 | 84,677 | |
Other payables | 598,972 | 175,160 | |
Accrued expenses and other payables | $ 1,138,575 | $ 259,837 | |
[1] | Lease liabilities - current portion represents the operating lease liabilities due within next 12 months. |
Lease Right-of-Use Asset and _3
Lease Right-of-Use Asset and Lease Liabilities (Details Narrative) - USD ($) | Dec. 31, 2019 | Apr. 02, 2019 | Mar. 31, 2019 |
Operating lease, right of use asset | $ 1,939,270 | ||
Operating lease, liability | $ 1,939,270 | ||
Weighted average discount rate leases | 4.35% | ||
ASU 2016-02 [Member] | |||
Operating lease, right of use asset | $ 1,900,000 | $ 60,000 | |
Operating lease, liability | $ 1,900,000 | $ 60,000 |
Lease Right-of-Use Asset and _4
Lease Right-of-Use Asset and Lease Liabilities - Schedule of Right-of Use Asset and Lease Liability (Details) - USD ($) | Dec. 31, 2019 | Mar. 31, 2019 | |
Leases [Abstract] | |||
Right-of-use asset - operating leases | $ 1,939,270 | ||
Lease liabilities - current portion | [1] | 455,518 | |
Lease liabilities - non-current portion | 1,483,752 | ||
Lease liabilities | $ 1,939,270 | ||
[1] | Lease liabilities - current portion represents the operating lease liabilities due within next 12 months. |
Lease Right-of-Use Asset and _5
Lease Right-of-Use Asset and Lease Liabilities - Schedule of Lease Cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||||
Operating lease cost | $ 126,053 | $ 23,157 | $ 325,664 | $ 77,664 |
Short-term lease cost | 6,445 | 70,231 | ||
Lease cost | $ 132,498 | $ 23,157 | $ 395,895 | $ 77,664 |
Lease Right-of-Use Asset and _6
Lease Right-of-Use Asset and Lease Liabilities - Schedule of Other Information for Right-of Use Asset and Lease Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases | $ 132,498 | $ 395,895 | ||
Right-of-use assets obtained in exchange for new operating leases liabilities | $ 65,527 | $ 1,966,535 | ||
Weighted average remaining lease term - Operating leases (years) | 4 years 6 months | 4 years 6 months | ||
Weighted average discount rate - Operating leases | 4.35% | 4.35% |
Reserves (Details Narrative)
Reserves (Details Narrative) - USD ($) | 9 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | |
Reserves | ||
Description on statutory reserve | In accordance with the relevant laws and regulations of the PRC, the subsidiary of the Company established in the PRC is required to transfer 10% of its profit after taxation prepared in accordance with the accounting regulations of the PRC to the statutory reserve until the reserve balance reaches 50% of the subsidiary's paid-up capital. | |
Paid-up statutory reserve | $ 23,516 | $ 21,779 |
Reverse Stock Split (Details Na
Reverse Stock Split (Details Narrative) - $ / shares | Jan. 24, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 27, 2019 |
Equity [Abstract] | ||||
Common stock shares issued and outstanding par value | $ 0.001 | $ 0.001 | $ 0.001 | |
Reverse stock split description | Ratio of 1-for-20 | |||
Number of common stock shares authorized | 1,000,000,000 | 50,000,000 | ||
Decreased number of common stock shares issued and outstanding | 25,346,004 |