Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | false |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Registrant Name | Jinxuan Coking Coal Ltd |
Entity Common Stock, Shares Outstanding | 14,333,334 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Central Index Key | 0001715194 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Trading Symbol | cik0001715194 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 115,440 | $ 848,522 |
Notes receivable | 2,393,853 | 2,539,309 |
Accounts receivable | 6,289,399 | 228,858 |
Other receivables, net | 160,668 | 12,846 |
Prepayments and other current assets | 134,132 | 2,939 |
Subscription receivable | 0 | 80,000 |
Total Current Assets | 9,093,492 | 3,712,474 |
Non-current assets | ||
Property and equipment, net | 307,928 | 270,814 |
Long-term deposits | 18,635 | 0 |
Right-of-use assets | 196,435 | 0 |
Total Assets | 9,616,490 | 3,983,288 |
Current liabilities | ||
Accounts payable | 4,430,519 | 283,311 |
Notes payable | 1,813,308 | 0 |
Other payable and accrued expenses | 274,946 | 246,002 |
Loan from third parties | 0 | 2,252,872 |
Income taxes payable | 197,338 | 65,677 |
Amount due to related parties | 1,058,623 | 407,706 |
Lease payment liability- current | 92,230 | 0 |
Total Current Liabilities | 7,866,964 | 3,255,568 |
Non-current liabilities | ||
Lease payment liability-non current | 96,707 | 0 |
Total Liabilities | 7,963,671 | 3,255,568 |
Commitments | ||
Shareholders' equity | ||
Ordinary shares (0.001 par value, 100,000,000 shares authorized, 14,333,334 and 14,333,334 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively) | 14,333 | 14,333 |
Additional paid-in capital | 861,301 | 861,301 |
Statutory reserve | 154,451 | 74,956 |
Retained earnings (accumulated deficit) | 721,068 | (145,972) |
Accumulated other comprehensive loss | (98,334) | (76,898) |
Total Shareholders' Equity | 1,652,819 | 727,720 |
Total Liabilities and Shareholders' Equity | $ 9,616,490 | $ 3,983,288 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 28, 2018 | Aug. 05, 2017 | Jul. 30, 2017 |
CONSOLIDATED BALANCE SHEETS Parenthetical | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Common Stock, Shares, Issued | 14,333,334 | 14,333,334 | 13,333,334 | ||
Common Stock, Shares, Outstanding | 14,333,334 | 14,333,334 | 14,333,334 | 13,333,334 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | |||
Total revenue | $ 6,385,992 | $ 6,721,728 | $ 179,757 |
Cost of revenue | |||
Total cost of revenue | 3,984,493 | 5,663,877 | 99,274 |
Gross profit | 2,401,499 | 1,057,851 | 80,483 |
Operating expenses | |||
Selling and marketing expenses | 497,198 | 355,369 | 104,730 |
General and administrative expenses | 652,667 | 650,845 | 722,291 |
Impairment loss on equipment | 0 | 17,652 | 0 |
Total operating expenses | 1,149,865 | 1,023,866 | 827,021 |
Profit (loss) from operations | 1,251,634 | 33,985 | (746,538) |
Other (expenses) income | |||
Total other (expenses) income, net | (12,143) | (84,342) | 878 |
Income(loss) before income tax | 1,239,491 | (50,357) | (745,660) |
Income tax expense | 292,956 | 11,567 | 0 |
Net income(loss) | 946,535 | (61,924) | (745,660) |
Other comprehensive (loss) income | |||
Foreign currency translation (loss) gain | (21,436) | (35,876) | 65,254 |
Comprehensive income(loss) | $ 925,099 | $ (97,800) | $ (680,406) |
Weighted average number of shares, basic and diluted | 14,333,334 | 13,590,868 | 13,333,334 |
Basic and diluted earnings(loss) per share | $ 0.066 | $ (0.005) | $ (0.056) |
Product [Member] | |||
Revenue | |||
Revenue | $ 5,219,063 | $ 6,684,112 | $ 79,946 |
Cost of revenue | |||
Total cost of revenue | 3,984,493 | 5,663,877 | 99,274 |
Service [Member] | |||
Revenue | |||
Revenue | $ 1,166,929 | $ 37,616 | $ 99,811 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Statutory Reserve | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (loss) income | Total |
Balance at Dec. 31, 2016 | $ 13,333 | $ 783,207 | $ 74,956 | $ 661,612 | $ (106,276) | $ 1,426,832 |
Balance, Shares at Dec. 31, 2016 | 13,333,334 | |||||
Net income (loss) | $ 0 | 0 | 0 | (745,660) | 0 | (745,660) |
Foreign currency translation loss | 0 | 0 | 0 | 0 | 65,254 | 65,254 |
Balance at Dec. 31, 2017 | $ 13,333 | 783,207 | 74,956 | (84,048) | (41,022) | 746,426 |
Balance, shares at Dec. 31, 2017 | 13,333,334 | |||||
Issuance of ordinary shares | $ 1,000 | 78,094 | 0 | 0 | 0 | 79,094 |
Issuance of ordinary shares (in shares) | 1,000,000 | |||||
Net income (loss) | $ 0 | 0 | 0 | (61,924) | 0 | (61,924) |
Statutory reserves | 0 | |||||
Foreign currency translation loss | 0 | 0 | 0 | 0 | (35,876) | (35,876) |
Balance at Dec. 31, 2018 | $ 14,333 | 861,301 | 74,956 | (145,972) | (76,898) | $ 727,720 |
Balance, shares at Dec. 31, 2018 | 14,333,334 | |||||
Issuance of ordinary shares (in shares) | 1,000,000 | |||||
Net income (loss) | $ 0 | 0 | 0 | 946,535 | 0 | $ 946,535 |
Statutory reserves | 0 | 0 | 79,495 | (79,495) | 0 | 79,495 |
Foreign currency translation loss | 0 | 0 | 0 | 0 | (21,436) | (21,436) |
Balance at Dec. 31, 2019 | $ 14,333 | $ 861,301 | $ 154,451 | $ 721,068 | $ (98,334) | $ 1,652,819 |
Balance, shares at Dec. 31, 2019 | 14,333,334 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 946,535 | $ (61,924) | $ (745,660) |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 93,009 | 68,056 | 62,602 |
Bad debt (recoveries) provision | (72,480) | 75,558 | 0 |
Disposal loss of long-lived assets | 5,484 | 0 | 0 |
Impairment loss on equipment | 0 | 17,652 | 0 |
Right-of-use asset amortization | 81,368 | ||
Changes in operating assets and liabilities | |||
Accounts receivable | (6,132,590) | (237,358) | 71,012 |
Notes receivable | 105,500 | (2,633,621) | 0 |
Other receivables | (77,218) | 24,247 | 0 |
Inventories | 59,862 | 64,569 | |
Income taxes payable | 134,220 | 11,567 | (153,213) |
Prepayments and other current assets | (138,547) | 34,241 | 25,668 |
Lease payment liability- current | 4,318 | 0 | 0 |
Lease payment liability-non current | (93,269) | 0 | 0 |
Accounts payable | 4,198,587 | 235,170 | (51,701) |
Notes payable | 1,833,744 | ||
Other payable and accrued expenses | (33,664) | 188,607 | (401,390) |
Due from a related party | 0 | 0 | 57,743 |
Due to a related party | (9,132) | 0 | 195,148 |
Long-term deposits | (18,845) | 0 | 0 |
Net cash provided by (used in) operating activities | 827,020 | (2,217,943) | (875,222) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (134,635) | 0 | (215,485) |
Collection from a related party | 0 | 0 | 740,255 |
Collection from third parties | 755,581 | 871,142 | |
Deposit for acquisition | 0 | 0 | (740,255) |
Net cash (used in) provided by investing activities | (134,635) | 755,581 | 655,657 |
Cash flows from financing activities: | |||
Repayment to a related party | (50,736) | ||
Repayment to a third party | 2,174,399 | 0 | 0 |
Receipt of loan from third parties | 0 | 2,336,547 | 18,183 |
Proceeds from share issuance | 80,000 | 0 | 0 |
Receipt of loan from a related party | 724,800 | 0 | 148,045 |
Payment of shares offering expense | 0 | (906) | 0 |
Net cash (used in) provided by financing activities | (1,420,335) | 2,335,641 | 166,228 |
Effect of exchange rate changes on cash and cash equivalents | (5,132) | (28,873) | 1,655 |
Net (decrease) increase in cash and cash equivalents | (733,082) | 844,406 | (51,682) |
Cash and cash equivalents at beginning of year | 848,522 | 4,116 | 55,798 |
Cash and cash equivalents at end of year | 115,440 | 848,522 | 4,116 |
Supplemental disclosure of cash flow information | |||
Recognition of Right-of-use and Lease payment liability | 280,017 | ||
Cash paid for interest | 86,975 | 0 | 0 |
Cash paid for income taxes | 165,647 | 0 | 153,213 |
Non-cash financing activity | |||
Subscription receivable | $ 0 | $ (80,000) | $ 0 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS DESCRIPTION | |
BUSINESS DESCRIPTION | NOTE 1. BUSINESS DESCRIPTION Organization and description of business Jinxuan Coking Coal Limited (“Jinxuan” or the “Company”), through its subsidiaries, is currently engaged in distributing and reselling blended coking coal in People’s Republic of China (“PRC” or “China”). Jinxuan is a limited company established under the laws of the Cayman Islands on February 24, 2017. The authorized number of ordinary shares was 50,000 shares with par value of $1 each. 50,000 ordinary shares were issued at par value, equivalent to share capital of $50,000. Mr. Xiangyang Guo (“Mr. Guo”), the Chairman and CEO of the Company, is the ultimate controlling shareholder (“the Controlling Shareholder”) of the Company. On July 30, 2017, the Company effected a 1‑for‑2,000 stock split of its ordinary share, after which the authorized number of ordinary shares became 100,000,000 shares with par value of $0.001. The PRC operating company, Shanxi Jinxuan Investment Co. Ltd. (“Shanxi Jinxuan” or “WOFE”, previously named Liulin Junhao Coal Trade Co., Ltd.) was incorporated as a PRC entity pursuant to PRC law on October 16, 2012 by two former shareholders. On February 26, 2015, the 100% ownership interest of Shanxi Jinxuan was transferred to Beijing Jinxuan Investment Co., Ltd (“Beijing Jinxuan”). On December 20, 2016, four individuals, including Mr. Guo, entered into a share transferring agreement with Beijing Jinxuan to acquire 100% of the ownership of Shanxi Jinxuan (the “share transferring transaction”). The share transferring transaction was closed at the end of business on December 31, 2016 and as a result, the controlling shareholder, Mr. Guo, held controlling interest of Shanxi Jinxuan on January 1, 2017. Reorganization During 2017, in anticipation of an initial public offering (“IPO”) of its equity securities, the Company undertook a reorganization (“the Reorganization”) and became the ultimate holding company of Jinxuan JH limited (“Jinxuan JH”), Junhao Coking Coal International Holding Limited (“Junhao International”), Jacqueline G.D International Limited (“Jacqueline G.D”) and Shanxi Jinxuan, which were all controlled by the same shareholders after Mr. Guo held controlling interest of Shanxi Jinxuan on January 1, 2017. Details of the subsidiaries of the Company are set out below: Date of Place of Percentage of Subsidiaries incorporation Incorporation ownership Principal activity Jinxuan JH March 20, 2017 British Virgin Islands 100 Investment holding Jacquline G.D January 10, 2017 Hong Kong 100 Investment holding Junhao International April 10, 2017 Hong Kong 100 Investment holding Shanxi Jinxuan October 16, 2012 PRC 100 Distribution and resell of coking coal On August 5, 2017, as a result of the Reorganization, there were 13,333,334 ordinary shares issued and outstanding, and the Reorganization was accounted for as a recapitalization. The Company believes it is appropriate to reflect the Reorganization on a retroactive basis similar to stock split pursuant to ASC 260. The Company, together with its wholly-owned subsidiaries Jinxuan JH, Jacquiline G.D, Junhao International and Shanxi Jinxuan were effectively controlled by the same shareholders before and after the Reorganization and therefore the Reorganization is considered under common control after Mr. Guo obtained controlling interest of Shanxi Jinxuan on January 1, 2017 and was accounted for similar to the pooling method of accounting as of then. On September 28, 2018, the Company offered 1,000,000 ordinary shares at a fixed price of $0.08 per share, par value $0.001 per share pursuant to its initial public offering. At the completion of this offering, there is 14,333,334 shares of ordinary shares issued and outstanding. The gross proceeds from this offering was $80,000, which the Company received in January 2019. The net proceeds from this offering, after deducting the offering expenses paid by the Company of $906 was $79,094. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates. (c) Foreign currency translation and transactions The functional currency of Shanxi Jinxuan is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income for the respective periods. For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into Company’s reporting currency, the United States Dollar (“U.S. dollar” or “US$”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive loss in shareholders’ equity. The exchange rates applied are as follows: December 31, 2019 2018 RMB exchange rate at balance sheet dates 6.9762 6.8632 The Years Ended December 31 2019 2018 2017 Average exchange rate for the year 6.8985 6.6174 6.7547 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from People’s Bank of China. (d) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of December 31, 2019, and 2018, cash were $115,440 and $848,522, respectively. (e) Notes receivables and payables Notes receivables represent bank acceptance bills received from customers in the ordinary operation of business, and bank acceptance bills are due within one year or less. Notes payables represent bank acceptance bills paid to suppliers in the ordinary of business, and bank acceptance bill are due within one year or less. (f) Accounts receivable and other receivables, net Accounts receivable and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. During the years ended December 31, 2019 and 2018, both of the allowance for doubtful accounts from accounts receivable were nil; the allowances for doubtful accounts from other receivables were nil and $72,852, respectively. (g) Property and equipment, net The Company states property and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with 0% to 5% residual value. Estimated useful lives of property and equipment: Useful Life Vehicles 4 years Machine 10 years Furniture 5 years Building 20 years Leasehold improvement Shorter of the remaining lease terms or estimated useful life The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of operations. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized. (h) Revenue recognition On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, applying the modified retrospective method. The adoption did not result in a material adjustment to the accumulated deficit as of January 1, 2018. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Accordingly, revenues for the years ended December 31, 2019 and 2018 were presented under ASC 606, and revenues for the years ended December 31, 2017 have not been adjusted and continued to be presented under ASC topic 605 (“ASC 605”), Revenue Recognition. There was no material impact on its financial statements and disclosures in the periods after adopting ASC 606. The Company’s revenues are derived principally from product sales to third parties (“coking coal sales”) and agent fee from third parties (“coal sales agent service”). Commencing on January 1, 2018, the Company recognizes revenue in accordance with ASC 606 and revenue is recognized when control of promised goods or services is transferred to the Company’s customers. The Company’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Coking coal sales revenue The Company has the right to receive the consideration by providing agreed quantity and quality coking coal to the customers, and the price for the product is fixed. The Company is a principal because the Company controls the promised goods (coking coal) before the Company transfers the goods to the customer. In addition, the Company is responsible for fulfilling the promise to provide the goods to the customer. There is no variable consideration and non-cash consideration agreed with customer. The transaction price is fixed and allocated to the delivery of goods, the only performance obligation. The revenue is recognized when the Company satisfied its performance obligation by transferring the promised goods to the customer with agreed point of time, fixed price and location. Coal sales agent services revenue When serving as an agent, the Company signed contracts with customer, supplier and carrier separately. The Company’s obligation is to provide the specified services to arrange for the supplier and carrier to provide those goods (coking coal) to the customer. When the Company satisfies the performance obligation, the Company recognizes revenue in the amount of the fee to which it expects to be entitled in exchange for arranging for the supplier to provide its goods. The Company’s fee is the net amount of consideration that the Company retains after paying the supplier and the carrier the consideration received in exchange for the goods to be provided by the supplier and transport services to be provided by the carrier. In addition, the supplier assumes the Company’s performance obligations and contractual rights in the contract signed with customer so that the Company is no longer obliged to satisfy the performance obligation to transfer the promised good to the customer. The contracts with coal sales agent service customers have specific prices and terms for the service provided. The revenue is recognized upon the services of delivery of coking coal to a customer. Contract costs For the years ended December 31, 2019 and 2018, the Company did not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers within the scope of ASC Topic 606, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract. Contract balances The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business. Advances received from customers related to unsatisfied performance obligations are recorded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers. The Company does not have advances from customers as of December 31, 2019 and 2018. For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within 90 days after a bill is issued. The Company does not have any contract assets (unbilled receivables) since revenue is recognized when control of the promised goods or services is transferred and the payment from customers is not contingent on a future event. (i) Cost of revenue Cost of revenue mainly comprised of coking coal, raw material costs, inbound transportation expense and production costs, depreciation, workers’ salary, technical personnel’s performance salary and site lease. (j) Shipping and handling costs The Company expenses the shipping and handling costs in conjunction with sale of its products as incurred and the shipping and handling costs is included as part of selling and marketing expenses. Total shipping and handling costs were $420,960, $290,130 and $89,027 for the years ended December 31, 2019, 2018 and 2017, respectively. (k) Taxation a) Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts a teach period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company is required to file its income tax return with Cayman Island and its subsidiaries located in BVI, Hong Kong, and PRC are required to file tax return with BVI, Hong Kong and PRC respectively. b) Value added tax (“VAT”) Revenues are subject to VAT. The VAT rate is 16% for taxpayers selling goods, labor services, or tangible movable property leasing services or importing goods before April 1, 2019, after which subject to 13%, except otherwise specified; 10% for taxpayers leasing services, or transportation expense before April 1, 2019, after which subject to 9%, except otherwise specified. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of taxes payable on the consolidated balance sheets. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. c) Uncertain tax positions An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2019 and 2018, and there were no uncertain tax positions as of December 31, 2019 and 2018. All tax returns since the Company’s inception are still subject to examination by tax authorities. (l) Comprehensive income (loss) Recognized revenue, expenses, gains and losses are included as net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the balance sheet, such items, along with net income or loss, are components of comprehensive income or loss. The components of other comprehensive income or loss consist solely of foreign currency translation adjustments. (m) Fair value of financial instruments The Company’s financial instruments consist principally of cash and cash equivalents, notes receivable, accounts receivable, other receivables, accounts payable and notes payable. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. (n) Earnings (loss) per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. (o) Impairment of long-lived assets Long-lived assets, including property, equipment, and right-of-use asset with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. The impairment loss of long-lived assets were nil, $17,652 and nil for the years ended December 31, 2019, 2018 and 2017, respectively. (p) Leases The Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) from January 1, 2019 by using the modified retrospective method and did not restate the comparable periods. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Company determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Company recognizes an ROU asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Lease expense is recorded on a straight-line basis over the lease term. Upon adoption, the Company recognized ROU assets of $196,435 and total lease liabilities (including current and non-current) $188,937 for operating leases as of December 31, 2019. The impact of adopting ASU 2016-02 on the Company’s opening retained earnings and current year net income was insignificant. (q) Recently issued accounting standards FASB Accounting Standards Update No. 2016‑02 In June 2016, the FASB amended guidance related impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For all other entities including EGC, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is in the process of evaluating the impact that this guidance will have on its consolidated financial statements. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to the financial statements by removing, modifying, and adding certain fair value disclosure requirements to facilitate clear communication of the information required by generally accepted accounting principles. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted upon issuance of this ASU. The Company is currently evaluating the potential impact of this new guidance. Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company’s consolidated results of operations or financial position. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 3. ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: As of December 31, 2019 2018 Receivable from product sales $ 5,853,142 $ 228,858 Receivable from agent fee 436,257 — Total $ 6,289,399 $ 228,858 |
OTHER RECEIVABLES, NET
OTHER RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2019 | |
OTHER RECEIVABLES, NET | |
OTHER RECEIVABLES, NET | NOTE 4. OTHER RECEIVABLES, NET Other receivables consisted of the following: As of December 31, 2019 2018 Rental deposit $ — $ 7,712 Property management fee deposit 5,472 — Due from third parties 2,150 77,986 Other receivable from customer in agent service 153,046 — Total other receivables 160,668 85,698 Less: Provision for doubtful accounts — (72,852) Other receivables, net $ 160,668 $ 12,846 As of December 31, 2019, other receivable from customer in agent service was derived from coal sales agent services in which the Company had the right to collect money for the suppliers, and should pay the suppliers after receiving money from the customers. As of December 31, 2018, the Company evaluated the collectability of loan to third parties and recorded an allowance of $72,852 for doubtful accounts. As of December 31, 2019, the Company reversed the allowance as the loan principal was fully collected in September 2019. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | NOTE 5. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets consisted of the following: As of December 31, 2019 2018 Prepayments for inventory $ — $ 463 Prepayments for services 124,724 — Prepaid rental 3,082 — Others 6,326 2,476 Total $ 134,132 $ 2,939 Prepayments for services are related to transportation fees, professional service fees and property management fees. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of December 31, 2019 2018 Vehicles $ 186,102 $ 189,167 Machine 6,167 6,268 Furniture 43,127 12,123 Leasehold improvement 107,696 27,894 Building 170,580 173,388 Less: accumulated depreciation (205,744) (138,026) Property and equipment, net $ 307,928 $ 270,814 Depreciation expense was $93,009, $68,056 and $62,602, respectively, for the years ended December 31, 2019, 2018 and 2017. The net book value of the unused coal distributor was fully impaired as of December 31, 2018 as it was not expected to generate future cash flow to the Company. The coal distributor is a machine used for coal blending manufacture and was bought in February 2016, and was not regularly used in the daily manufacture. An impairment loss of $17,652 was recognized in the statements of operations for the year ended December 31, 2018. |
LONG-TERM DEPOSITS
LONG-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM DEPOSITS | |
LONG-TERM DEPOSITS | NOTE 7. LONG-TERM DEPOSITS Long-term deposits consisted of the following: As of December 31, 2019 2018 Office rental deposits $ 18,635 $ — Total $ 18,635 $ — The office rental deposits were made under the non-cancelable operating lease agreement that expires on March 31, 2022 and are refundable at the end of the lease term. |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | NOTE 8. ACCOUNTS PAYABLE Accounts payable consisted of the following: As of December 31, 2019 2018 Payable to suppliers $ 4,430,519 $ 282,596 Others — 715 Total $ 4,430,519 $ 283,311 |
OTHER PAYABLE AND ACCRUED EXPEN
OTHER PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER PAYABLE AND ACCRUED EXPENSES | |
OTHER PAYABLE AND ACCRUED EXPENSES | NOTE 9. OTHER PAYABLE AND ACCRUED EXPENSES Other payable and accrued expenses consisted of the following: As of December 31, 2019 2018 Accrued payroll $ 21,751 $ 1,941 Other tax payable 49,333 82,606 Other payable 203,862 161,455 Total $ 274,946 $ 246,002 As of December 31, 2019, other tax payable of $49,333 primarily included unpaid value-added tax and surcharges. As of December 31, 2019, other payable of $203,862 primarily consisted of other payable to third parties and unpaid attorney fees. Other payable to third parties mainly included the payment to the supplier in the agent service in which the Company had the right to collect money from the customers for the suppliers. As of December 31, 2018, other payable of $161,455 primarily consisted of unpaid rental fees and interest-free loans of $119,478 that matured on December 31, 2018. Such interest-free loans were renewed with a maturity date of December 31, 2019 on January 1, 2019, and were repaid in September 2019. |
LOAN FROM THIRD PARTIES
LOAN FROM THIRD PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
LOAN FROM THIRD PARTIES | |
LOAN FROM THIRD PARTIES | NOTE 10. LOAN FROM THIRD PARTIES As of December 31, 2019 2018 Principle of loan from third parties $ — $ 2,185,569 Accrued interest payable — 67,303 Total $ — $ 2,252,872 As of December 31, 2018, the Company obtained a loan from a third party in the amount of $2,185,569 with an interest rate of 4% per annum. The term of the loan was from March 25, 2018 to March 24, 2019. Interests were required to be paid along with the principal on the due date. The interest payable as of December 31, 2018 was $67,303. On March 14, 2019, the loan principal and interests were fully repaid. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2019 | |
TAXATION | |
TAXATION | NOTE 11. TAXATION a) Enterprise Income Taxes The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Jinxuan JH was incorporated in the BVI. Under the current law of the BVI, Jinxuan JH is not subject to tax on income or capital gains. Additionally, if dividends are paid by Jinxuan JH to its shareholders, no BVI withholding tax will be imposed. Jacqueline G.D and Junhao International were both incorporated in Hong Kong and do not conduct any substantial operations of their own. Under the Hong Kong tax laws, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. From year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. Subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. No provision for Hongkong profits tax has been made in the consolidated financial statements as Jacqueline G.D and Junhao International both have no assessable profits for the year ended December 31, 2019. Shanxi Jinxuan, incorporated in the PRC, is governed by the enterprise income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). Effective from January 1, 2008, the EIT rate of PRC is 25%, and applies to both domestic and foreign invested enterprises. The effective tax rates of the Company were 24%, -23% and 0% for the years ended December 31, 2019, 2018 and 2017, respectively. The components of the income tax expenses for the years ended December 31, 2019, 2018 and 2017 are as follows The Years ended December 31, 2019 2018 2017 Current income tax provision $ 292,956 $ 11,567 $ — Deferred income tax provision — — — Total $ 292,956 $ 11,567 $ — Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2019 , 2018 and 2017 and the Company’s effective income tax rates are as follows: The Years ended December 31, 2019 2018 2017 Income(loss) before income taxes $ 1,239,491 $ (50,357) $ (745,660) Statutory EIT rate 25 % 25 % 25 % Income tax benefit(expense) computed at statutory EIT rate 309,873 (12,589) (186,415) Reconciling items: International tax rate differential (16) 46 — Non-deductible expenses 1,219 132,498 57,401 Valuation allowance change (18,120) (108,388) 129,014 Income tax expense $ 292,956 $ 11,567 $ — Effective tax rate 24 % (23) % — % b) Deferred Tax According to PRC tax regulations, net operating losses can be carried forward to offset future operating income for five years. Significant components of deferred tax assets were as follows: The Years Ended December 31, 2019 2018 Allowance for doubtful accounts — 18,213 Impairment expenses 4,186 4,255 Deferred tax assets, gross 4,186 22,468 Less: Valuation allowance (4,186) (22,468) Deferred tax assets, net $ — $ — The Company follows ASC 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Due to the Company’s history of recurrent losses, the management did not expect the Company will generate enough profit to utilize the DTA in the future. Accordingly, a full deferred tax asset valuation allowance has been provided. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Valuation allowance decreased by $18,282 in 2019, and increased by $106,546 in 2018. c) Uncertain tax positions An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2019 and 2018, and there were no uncertain tax positions as of December 31, 2019 and 2018. d) Value-added Tax PRC Value-added Tax Shanxi Jinxuan is the operating entity who provided services in China and therefore is subject to a Chinese value-added tax (“VAT”). Revenue represents the invoiced value of goods delivered net of a VAT. The application tax rate was cut from 16% to 13% for selling product and from 10% to 9% for transportation expense on April 1, 2019. Furthermore, paid VAT during this fiscal year is subject to 6% surcharges, which includes urban maintenance and construction taxes and additional education fees. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
LEASE | NOTE 12. LEASE The Company has an operating lease for office with a three-year term and an operating lease for employee's dormitory with a one-year term. Both of the Company’s leases are classified as operating leases. The operating lease for office includes one option to renew, which is typically at the Company's sole discretion. The renewal to extend the lease term is not included in our right of use assets and lease liabilities as it is not reasonably certain of exercise. The Company regularly evaluates the renewal option, and, when it is reasonably certain to exercise, it will include the renewal period in its lease term. New lease modifications result in remeasurement of the right of use asset and lease liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to the operating lease for office was as follows: The Years Ended December 31, 2019 2018 Right-of-use assets $ 196,435 $ — Lease payment liability- current 92,230 — Lease payment liability-non current 96,707 — Total lease payment liability $ 188,937 $ — The remaining lease term and discount rate for the operating lease for office were as follows as of December 31, 2019: Remaining lease term (years) 2.3 Discount rate 4.75 % For the years ended December 31, 2019, the lease expense was as follows in 2019: For the Year Ended December 31, 2019 Operating lease cost $ 90,990 Short-term lease cost 16,550 Total $ 107,540 Cash payment for operating lease under ASC 842 in the year of 2019 was $131,232. For the years ended December 31, 2018 and 2017, rental expenses based on ASC 840 were $59,414 and $70,586, respectively. The operating lease payment for the employee's dormitory was fully paid as of December 31, 2019. The following is a schedule, by fiscal years, of the maturities of lease liabilities as of December 31, 2019: 2020 $ 97,474 2021 97,474 2022 and thereafter — Total lease payments 194,948 Less: imputed interest (6,011) Present value of lease liabilities $ 188,937 |
ORDINARY SHARE
ORDINARY SHARE | 12 Months Ended |
Dec. 31, 2019 | |
ORDINARY SHARE | |
ORDINARY SHARE | NOTE 13. ORDINARY SHARE On September 28, 2018, the Company offered 1,000,000 ordinary shares at a fixed price of $0.08 per share, par value of $0.001 per share. At the completion of the offering, there were 14,333,334 shares of ordinary shares issued and outstanding. The 1,000,000 shares were issued to 30 individuals. The gross proceeds from the shares issuance of $80,000 were received in January 2019. |
STATUTORY RESERVE
STATUTORY RESERVE | 12 Months Ended |
Dec. 31, 2019 | |
STATUTORY RESERVE | |
STATUTORY RESERVE | NOTE 14. STATUTORY RESERVE Shanxi Jinxuan is required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. For the years ended December 31, 2019 and 2018, the Company provided statutory reserve as follows: Statutory Reserve Balance – December 31, 2017 $ 74,956 Appropriation to statutory reserve — Balance - December 31, 2018 74,956 Appropriation to statutory reserve 79,495 Balance - December 31, 2019 $ 154,451 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 15. RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability, directly or indirectly, to control the other parties or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, stockholder, or a related corporation. a) The table below summarizes the major related parties and their relationships with the Company: Name of related parties Relationship with the Company Mr. Bingshan Guo 23.3% beneficial owner of the Company Mr. Xiangyang Guo CEO, director and chairman of the board of the Company Mr. Yonghong Che 9.3% beneficial owner of the Company b) During the periods presented, the details of the related party balances and transactions were as follows: Amount due to related parties: As of December 31, 2019 2018 Mr. Bingshan Guo $ 198,556 $ 211,005 Mr. Xiangyang Guo 860,067 145,704 Mr. Yonghong Che — 50,997 Total $ 1,058,623 $ 407,706 In 2017, Mr. Bingshan Guo paid the professional service fees for the initial public offering on behalf of the Company; these amounts were non-interest bearing with no payment terms. The Company obtained interest-free loans from Mr. Xiangyang Guo and Mr. Yonghong Che. As of December 31, 2019, the Company had fully repaid the loan from Mr. Yonghong Che. The loans the Company obtained from Mr. Xiangyang Guo in 2017 and 2019 were in the amount of RMB1,000,000 and RMB5,000,000, respectively. On December 31, 2019,Mr. Xiangyang Guo agreed with the Company to extend the maturity date of the loan for the RMB1,000,000 loan to December 31, 2020. Transactions with related parties: 1. Lease from a related party For the year ended December 31, 2016, the Company leased a coal yard from Liulin Hongxing Coking Coal Trade Co., Ltd. (“Hongxing”), under a non-cancelable operating lease agreement that expires on December 31, 2020. The lease is on a fixed payment basis, with a five-year lease term and no contingent rentals. Due to the change of business address, the Company decided to terminate the agreement in January 2019. Expenses from this lease recorded during the year ended December 31, 2019, 2018 and 2017 were as below: For the Years ended December 31, 2019 2018 2017 Hongxing $ — $ 17,698 $ 19,246 Total $ — $ 17,698 $ 19,246 2. Loan provided by related parties On August 21, 2019, Mr. Xiangyang Guo agreed to provide an interest-free loan in the amount of $724,800 ( RMB5,000,000) to the Company, with a term from August 25, 2019 to August 24, 2020. The proceeds from the loan was mainly used in the operating activities. For the Years ended December 31, 2019 2018 2017 Related party paid on behalf of the Company for operations: Mr. Bingshan Guo $ — $ — $ 195,148 Loan provided by related party to the Company: Mr. Xiangyang Guo 724,800 — 148,045 Total $ 724,800 $ — $ 343,193 Loan repaid to related party by the Company Mr. Yonghong Che 50,736 — — Mr. Bingshan Guo 9,132 — — Total $ 59,868 $ — $ — 3. Guarantee provided by related parties On November 5, 2019, the Company signed a bank acceptance contract with Industrial Bank Co. Ltd. Taiyuan Branch (the “Bank”). The Bank promised to unconditionally accept the note payables issued by the Company. The total amount of notes payable involved in the contract was $1,813,308 (RMB 12,650,000). Correspondingly, Mr. Xiangyang Guo personally deposited $2,150,168 (RMB 15,000,000) in the Bank as a pledge for the note payables the Company issued. |
CONCENTRATION AND RISK
CONCENTRATION AND RISK | 12 Months Ended |
Dec. 31, 2019 | |
CONCENTRATION AND RISK | |
CONCENTRATION AND RISK | NOTE 16. CONCENTRATION AND RISK Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, and other receivables. The Company maintains certain bank accounts in the PRC, Hong Kong. As of December 31, 2019 and 2018, $35,367 and $848,514, respectively, were deposited in major financial institutions located in Mainland China, and $80,073 and $8, respectively, were deposited in a major financial institution located in Hong Kong Special Administration. Management believes that these financial institutions are of high credit quality and continually monitor the credit worthiness of these financial institutions. Currency convertibility risk Significant part of the Company’s businesses is transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. These exchange control measures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiary to transfer its net assets, to the Company through loans, advances or cash dividends. Concentration of customers The following tables summarized the information about the For the Year Ended December 31, 2019 2018 2017 Customer A * 33 % * B * 17 % * C * 14 % * D * 11 % * E * * 46 % F * * 54 % G 99 % * * Accounts receivable substantially comes from customer G as of December 31, 2019. No other customer accounts for more than 10% of the total accounts receivable as of December 31, 2019 and 2018. Concentration of suppliers The following tables summarized the information about the Company’s concentration of suppliers for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 2018 2017 Supplier P 100 % * * J * 60 % * K * 16 % * Accounts payable comes from one single supplier P as of December 31, 2019. Accounts payable to supplier M and N account for 65% and 34% of the Company’s total accounts payable as of December 31, 2018. * |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS Novel coronavirus (COVID-19) was first found in December of 2019. Subsequently, COVID-19 spread rapidly to other parts of China and around the world. To reduce the impacts of the pandemic, the governments of many countries implemented measures such as quarantines, travel restrictions, and the temporary restrictions of business activities. Substantially all of the Company’s workforce are concentrated in China. Consequently, the COVID-19 outbreak may materially adversely affect our business operations and the Company’s financial condition and operating results for the fiscal year 2020, including, but not limited to material negative impacts on the Company’s total revenues, slower collection of accounts receivables and additional allowance for doubtful accounts and significant downward adjustments or impairment to the Company’s long-lived assets. Because of the significant uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. The Company’s management has performed subsequent events procedures through the date the consolidated financial statements are issued. There were no subsequent events requiring adjustment or disclosure in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of estimates | (b) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount 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. |
Foreign currency translation and transactions | (c) Foreign currency translation and transactions The functional currency of Shanxi Jinxuan is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income for the respective periods. For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into Company’s reporting currency, the United States Dollar (“U.S. dollar” or “US$”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive loss in shareholders’ equity. The exchange rates applied are as follows: December 31, 2019 2018 RMB exchange rate at balance sheet dates 6.9762 6.8632 The Years Ended December 31 2019 2018 2017 Average exchange rate for the year 6.8985 6.6174 6.7547 No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from People’s Bank of China. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. As of December 31, 2019, and 2018, cash were $115,440 and $848,522, respectively. |
Notes receivables and payables | (e) Notes receivables and payables Notes receivables represent bank acceptance bills received from customers in the ordinary operation of business, and bank acceptance bills are due within one year or less. Notes payables represent bank acceptance bills paid to suppliers in the ordinary of business, and bank acceptance bill are due within one year or less. |
Accounts receivable and other receivables, net | (f) Accounts receivable and other receivables, net Accounts receivable and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. During the years ended December 31, 2019 and 2018, both of the allowance for doubtful accounts from accounts receivable were nil; the allowances for doubtful accounts from other receivables were nil and $72,852, respectively. |
Property and equipment, net | (g) Property and equipment, net The Company states property and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with 0% to 5% residual value. Estimated useful lives of property and equipment: Useful Life Vehicles 4 years Machine 10 years Furniture 5 years Building 20 years Leasehold improvement Shorter of the remaining lease terms or estimated useful life The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of operations. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized. |
Revenue recognition | (h) Revenue recognition On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers”, applying the modified retrospective method. The adoption did not result in a material adjustment to the accumulated deficit as of January 1, 2018. In accordance with ASC Topic 606, revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining when and how much revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. Accordingly, revenues for the years ended December 31, 2019 and 2018 were presented under ASC 606, and revenues for the years ended December 31, 2017 have not been adjusted and continued to be presented under ASC topic 605 (“ASC 605”), Revenue Recognition. There was no material impact on its financial statements and disclosures in the periods after adopting ASC 606. The Company’s revenues are derived principally from product sales to third parties (“coking coal sales”) and agent fee from third parties (“coal sales agent service”). Commencing on January 1, 2018, the Company recognizes revenue in accordance with ASC 606 and revenue is recognized when control of promised goods or services is transferred to the Company’s customers. The Company’s revenue recognition policies effective upon the adoption of ASC 606 are as follows: Coking coal sales revenue The Company has the right to receive the consideration by providing agreed quantity and quality coking coal to the customers, and the price for the product is fixed. The Company is a principal because the Company controls the promised goods (coking coal) before the Company transfers the goods to the customer. In addition, the Company is responsible for fulfilling the promise to provide the goods to the customer. There is no variable consideration and non-cash consideration agreed with customer. The transaction price is fixed and allocated to the delivery of goods, the only performance obligation. The revenue is recognized when the Company satisfied its performance obligation by transferring the promised goods to the customer with agreed point of time, fixed price and location. Coal sales agent services revenue When serving as an agent, the Company signed contracts with customer, supplier and carrier separately. The Company’s obligation is to provide the specified services to arrange for the supplier and carrier to provide those goods (coking coal) to the customer. When the Company satisfies the performance obligation, the Company recognizes revenue in the amount of the fee to which it expects to be entitled in exchange for arranging for the supplier to provide its goods. The Company’s fee is the net amount of consideration that the Company retains after paying the supplier and the carrier the consideration received in exchange for the goods to be provided by the supplier and transport services to be provided by the carrier. In addition, the supplier assumes the Company’s performance obligations and contractual rights in the contract signed with customer so that the Company is no longer obliged to satisfy the performance obligation to transfer the promised good to the customer. The contracts with coal sales agent service customers have specific prices and terms for the service provided. The revenue is recognized upon the services of delivery of coking coal to a customer. Contract costs For the years ended December 31, 2019 and 2018, the Company did not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers within the scope of ASC Topic 606, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract. Contract balances The Company evaluates overall economic conditions, its working capital status and customer specific credit and negotiates the payment terms of a contract with individual customer on a case by case basis in its normal course of business. Advances received from customers related to unsatisfied performance obligations are recorded as contract liabilities (advance from customers), which will be realized as revenues upon the satisfaction of performance obligations through the transfer of related promised goods and services to customers. The Company does not have advances from customers as of December 31, 2019 and 2018. For contracts without a full or any advance payments required, the Company bills the customers any unpaid contract price immediately upon satisfaction of the related performance obligations when revenue is recognized, and the Company normally receives payment from customers within 90 days after a bill is issued. The Company does not have any contract assets (unbilled receivables) since revenue is recognized when control of the promised goods or services is transferred and the payment from customers is not contingent on a future event. |
Cost of revenue | (i) Cost of revenue Cost of revenue mainly comprised of coking coal, raw material costs, inbound transportation expense and production costs, depreciation, workers’ salary, technical personnel’s performance salary and site lease. |
Shipping and handling costs | (j) Shipping and handling costs The Company expenses the shipping and handling costs in conjunction with sale of its products as incurred and the shipping and handling costs is included as part of selling and marketing expenses. Total shipping and handling costs were $420,960, $290,130 and $89,027 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Taxation | (k) Taxation a) Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts a teach period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company is required to file its income tax return with Cayman Island and its subsidiaries located in BVI, Hong Kong, and PRC are required to file tax return with BVI, Hong Kong and PRC respectively. b) Value added tax (“VAT”) Revenues are subject to VAT. The VAT rate is 16% for taxpayers selling goods, labor services, or tangible movable property leasing services or importing goods before April 1, 2019, after which subject to 13%, except otherwise specified; 10% for taxpayers leasing services, or transportation expense before April 1, 2019, after which subject to 9%, except otherwise specified. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of taxes payable on the consolidated balance sheets. All of the VAT returns of the Company have been and remain subject to examination by the tax authorities for five years from the date of filing. c) Uncertain tax positions An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2019 and 2018, and there were no uncertain tax positions as of December 31, 2019 and 2018. All tax returns since the Company’s inception are still subject to examination by tax authorities. |
Comprehensive income (loss) | (l) Comprehensive income (loss) Recognized revenue, expenses, gains and losses are included as net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the balance sheet, such items, along with net income or loss, are components of comprehensive income or loss. The components of other comprehensive income or loss consist solely of foreign currency translation adjustments. |
Fair value of financial instruments | (m) Fair value of financial instruments The Company’s financial instruments consist principally of cash and cash equivalents, notes receivable, accounts receivable, other receivables, accounts payable and notes payable. The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature. It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments. |
Earnings (loss) per share | (n) Earnings (loss) per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Impairment of long-lived assets | (o) Impairment of long-lived assets Long-lived assets, including property, equipment, and right-of-use asset with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. The impairment loss of long-lived assets were nil, $17,652 and nil for the years ended December 31, 2019, 2018 and 2017, respectively. |
Leases | (p) Leases The Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) from January 1, 2019 by using the modified retrospective method and did not restate the comparable periods. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. Lastly, the Company elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Company determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Company recognizes an ROU asset and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Lease expense is recorded on a straight-line basis over the lease term. Upon adoption, the Company recognized ROU assets of $196,435 and total lease liabilities (including current and non-current) $188,937 for operating leases as of December 31, 2019. The impact of adopting ASU 2016-02 on the Company’s opening retained earnings and current year net income was insignificant. |
Recently issued accounting standards | (q) Recently issued accounting standards FASB Accounting Standards Update No. 2016‑02 In June 2016, the FASB amended guidance related impairment of financial instruments as part of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The guidance replaces the incurred loss impairment methodology with an expected credit loss model for which a company recognizes an allowance based on the estimate of expected credit loss. The ASU is effective for public company for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. For all other entities including EGC, the ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early application will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is in the process of evaluating the impact that this guidance will have on its consolidated financial statements. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to the financial statements by removing, modifying, and adding certain fair value disclosure requirements to facilitate clear communication of the information required by generally accepted accounting principles. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted upon issuance of this ASU. The Company is currently evaluating the potential impact of this new guidance. Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company’s consolidated results of operations or financial position. |
BUSINESS DESCRIPTION (Tables)
BUSINESS DESCRIPTION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS DESCRIPTION | |
Schedule of Business Description | Details of the subsidiaries of the Company are set out below: Date of Place of Percentage of Subsidiaries incorporation Incorporation ownership Principal activity Jinxuan JH March 20, 2017 British Virgin Islands 100 Investment holding Jacquline G.D January 10, 2017 Hong Kong 100 Investment holding Junhao International April 10, 2017 Hong Kong 100 Investment holding Shanxi Jinxuan October 16, 2012 PRC 100 Distribution and resell of coking coal |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Foreign Currency Exchange Rate | The exchange rates applied are as follows: December 31, 2019 2018 RMB exchange rate at balance sheet dates 6.9762 6.8632 The Years Ended December 31 2019 2018 2017 Average exchange rate for the year 6.8985 6.6174 6.7547 |
Schedule of Property and equipment, net | Estimated useful lives of property and equipment: Useful Life Vehicles 4 years Machine 10 years Furniture 5 years Building 20 years Leasehold improvement Shorter of the remaining lease terms or estimated useful life |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following: As of December 31, 2019 2018 Receivable from product sales $ 5,853,142 $ 228,858 Receivable from agent fee 436,257 — Total $ 6,289,399 $ 228,858 |
OTHER RECEIVABLES, NET (Tables)
OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER RECEIVABLES, NET | |
Schedule of Other Receivables, net | Other receivables consisted of the following: As of December 31, 2019 2018 Rental deposit $ — $ 7,712 Property management fee deposit 5,472 — Due from third parties 2,150 77,986 Other receivable from customer in agent service 153,046 — Total other receivables 160,668 85,698 Less: Provision for doubtful accounts — (72,852) Other receivables, net $ 160,668 $ 12,846 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of Prepayments and Other Current Assets | Prepayments and other current assets consisted of the following: As of December 31, 2019 2018 Prepayments for inventory $ — $ 463 Prepayments for services 124,724 — Prepaid rental 3,082 — Others 6,326 2,476 Total $ 134,132 $ 2,939 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property, Plant and Equipment, net | Property and equipment consisted of the following: As of December 31, 2019 2018 Vehicles $ 186,102 $ 189,167 Machine 6,167 6,268 Furniture 43,127 12,123 Leasehold improvement 107,696 27,894 Building 170,580 173,388 Less: accumulated depreciation (205,744) (138,026) Property and equipment, net $ 307,928 $ 270,814 |
LONG TERM DEPOSITS (Tables)
LONG TERM DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM DEPOSITS | |
Schedule of long term deposits | As of December 31, 2019 2018 Office rental deposits $ 18,635 $ — Total $ 18,635 $ — |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS PAYABLE | |
Schedule of Accounts Payable | Accounts payable consisted of the following: As of December 31, 2019 2018 Payable to suppliers $ 4,430,519 $ 282,596 Others — 715 Total $ 4,430,519 $ 283,311 |
OTHER PAYABLE AND ACCRUED EXP_2
OTHER PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER PAYABLE AND ACCRUED EXPENSES | |
Schedule of Other Payable and Accrued Expenses | Other payable and accrued expenses consisted of the following: As of December 31, 2019 2018 Accrued payroll $ 21,751 $ 1,941 Other tax payable 49,333 82,606 Other payable 203,862 161,455 Total $ 274,946 $ 246,002 |
LOAN FROM THIRD PARTIES (Tables
LOAN FROM THIRD PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOAN FROM THIRD PARTIES | |
Schedule of Loan From Third Parties | As of December 31, 2019 2018 Principle of loan from third parties $ — $ 2,185,569 Accrued interest payable — 67,303 Total $ — $ 2,252,872 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TAXATION | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expenses for the years ended December 31, 2019, 2018 and 2017 are as follows The Years ended December 31, 2019 2018 2017 Current income tax provision $ 292,956 $ 11,567 $ — Deferred income tax provision — — — Total $ 292,956 $ 11,567 $ — |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the income tax expenses at the PRC statutory EIT rate of 25% for the years ended December 31, 2019 , 2018 and 2017 and the Company’s effective income tax rates are as follows: The Years ended December 31, 2019 2018 2017 Income(loss) before income taxes $ 1,239,491 $ (50,357) $ (745,660) Statutory EIT rate 25 % 25 % 25 % Income tax benefit(expense) computed at statutory EIT rate 309,873 (12,589) (186,415) Reconciling items: International tax rate differential (16) 46 — Non-deductible expenses 1,219 132,498 57,401 Valuation allowance change (18,120) (108,388) 129,014 Income tax expense $ 292,956 $ 11,567 $ — Effective tax rate 24 % (23) % — % |
Schedule of Deferred tax assets | Significant components of deferred tax assets were as follows: The Years Ended December 31, 2019 2018 Allowance for doubtful accounts — 18,213 Impairment expenses 4,186 4,255 Deferred tax assets, gross 4,186 22,468 Less: Valuation allowance (4,186) (22,468) Deferred tax assets, net $ — $ — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
Schedule of supplemental balance sheet information related to the operating lease for | The Years Ended December 31, 2019 2018 Right-of-use assets $ 196,435 $ — Lease payment liability- current 92,230 — Lease payment liability-non current 96,707 — Total lease payment liability $ 188,937 $ — |
Schedule of remaining lease terms and discount rates | Remaining lease term (years) 2.3 Discount rate 4.75 % |
Summary of lease expense | For the Year Ended December 31, 2019 Operating lease cost $ 90,990 Short-term lease cost 16,550 Total $ 107,540 |
Schedule of maturities of lease liabilities | 2020 $ 97,474 2021 97,474 2022 and thereafter — Total lease payments 194,948 Less: imputed interest (6,011) Present value of lease liabilities $ 188,937 |
STATUTORY RESERVE (Tables)
STATUTORY RESERVE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STATUTORY RESERVE | |
Schedule of statutory reserve | Statutory Reserve Balance – December 31, 2017 $ 74,956 Appropriation to statutory reserve — Balance - December 31, 2018 74,956 Appropriation to statutory reserve 79,495 Balance - December 31, 2019 $ 154,451 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
Schedule of Related Party Transactions | During the periods presented, the details of the related party balances and transactions were as follows: Amount due to related parties: As of December 31, 2019 2018 Mr. Bingshan Guo $ 198,556 $ 211,005 Mr. Xiangyang Guo 860,067 145,704 Mr. Yonghong Che — 50,997 Total $ 1,058,623 $ 407,706 |
Schedule of Related Party Transactions, Sales to a Related Party | For the Years ended December 31, 2019 2018 2017 Hongxing $ — $ 17,698 $ 19,246 Total $ — $ 17,698 $ 19,246 |
Schedule Of Due From Due To Related Parties | For the Years ended December 31, 2019 2018 2017 Related party paid on behalf of the Company for operations: Mr. Bingshan Guo $ — $ — $ 195,148 Loan provided by related party to the Company: Mr. Xiangyang Guo 724,800 — 148,045 Total $ 724,800 $ — $ 343,193 Loan repaid to related party by the Company Mr. Yonghong Che 50,736 — — Mr. Bingshan Guo 9,132 — — Total $ 59,868 $ — $ — |
CONCENTRATION AND RISK (Tables)
CONCENTRATION AND RISK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CONCENTRATION AND RISK | |
Schedule of Concentration risk information about customer | The following tables summarized the information about the For the Year Ended December 31, 2019 2018 2017 Customer A * 33 % * B * 17 % * C * 14 % * D * 11 % * E * * 46 % F * * 54 % G 99 % * * |
Schedules of Concentration of Risk, by Risk Factor | The following tables summarized the information about the Company’s concentration of suppliers for the years ended December 31, 2019, 2018 and 2017, respectively: For the Year Ended December 31, 2019 2018 2017 Supplier P 100 % * * J * 60 % * K * 16 % * |
BUSINESS DESCRIPTION (Details)
BUSINESS DESCRIPTION (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Jinxuan JH [Member] | |
Date of incorporation | Mar. 20, 2017 |
Place of Incorporation | British Virgin Islands |
Percentage of ownership | 100.00% |
Principal activity | Investment holding |
Jacquline G.D [Member] | |
Date of incorporation | Jan. 10, 2017 |
Place of Incorporation | Hong Kong |
Percentage of ownership | 100.00% |
Principal activity | Investment holding |
Junhao International [Member] | |
Date of incorporation | Apr. 10, 2017 |
Place of Incorporation | Hong Kong |
Percentage of ownership | 100.00% |
Principal activity | Investment holding |
Shanxi Jinxuan [Member] | |
Date of incorporation | Oct. 16, 2012 |
Place of Incorporation | PRC |
Percentage of ownership | 100.00% |
Principal activity | Distribution and resell of coking coal |
BUSINESS DESCRIPTION (Details T
BUSINESS DESCRIPTION (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2019 | Sep. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 05, 2017 | Jul. 30, 2017 | Feb. 24, 2017 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common Stock, Shares, Issued | 14,333,334 | 14,333,334 | 13,333,334 | ||||
Common Stock, Value, Issued | $ 14,333 | $ 14,333 | |||||
Common Stock, Shares, Outstanding | 14,333,334 | 14,333,334 | 14,333,334 | 13,333,334 | |||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||||
Stock Issued During Period, Value, New Issues | $ 80,000 | $ 79,094 | |||||
Payments for Repurchase of Initial Public Offering | 906 | ||||||
Proceeds from Issuance Initial Public Offering | $ 79,094 | ||||||
Common Stock | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||||||
Common Stock, Shares, Issued | 1,000,000 | 14,333,334 | |||||
Common Stock, Value, Issued | $ 14,333,334 | ||||||
Shares Issued, Price Per Share | $ 0.08 | ||||||
Stock Issued During Period, Shares, New Issues | 14,333,334 | 1,000,000 | |||||
Stock Issued During Period, Value, New Issues | $ 1,000 | ||||||
Jinxuan Coking Coal Ltd [Member] | |||||||
Common Stock, Shares Authorized | 50,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ 1 | ||||||
Common Stock, Shares, Issued | 50,000 | ||||||
Common Stock, Value, Issued | $ 50,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
RMB exchange rate at balance sheet dates | 6.9762 | 6.8632 | |
Average exchange rate for each year | 6.8985 | 6.6174 | 6.7547 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Leasehold improvement | Shorter of the remaining lease terms or estimated useful life |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 4 years |
Machine [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Building [Member] | |
Property, Plant and Equipment, Useful Life | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cost of Goods and Services Sold | $ 3,984,493 | $ 5,663,877 | $ 99,274 | ||
Cash | 115,440 | 848,522 | |||
Allowance for Doubtful Accounts Receivable | 0 | ||||
Allowance for Doubtful Other Receivables, Current | 0 | 72,852 | |||
Impairment loss of long lived assets | 0 | 0 | 0 | ||
ROU assets | 196,435 | 0 | |||
Lease Payment liability | $ 188,937 | 0 | |||
Minimum [Member] | |||||
Property, Plant and Equipment, Salvage Value, Percentage | 0.00% | ||||
Maximum [Member] | |||||
Property, Plant and Equipment, Salvage Value, Percentage | 5.00% | ||||
Shipping and Handling [Member] | |||||
Cost of Goods and Services Sold | $ 420,960 | $ 290,130 | $ 89,027 | ||
Product Sales | |||||
Percentage of Value Added Tax | 13.00% | 16.00% | |||
Leasing Services | |||||
Percentage of Value Added Tax | 9.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU assets | $ 196,435 | $ 0 |
Total lease payment liability | 188,937 | $ 0 |
Restatement | ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU assets | 196,435 | |
Total lease payment liability | $ 188,937 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | $ 6,289,399 | $ 228,858 |
Product Sales | ||
Accounts receivable | 5,853,142 | 228,858 |
Agent Fee | ||
Accounts receivable | $ 436,257 | $ 0 |
OTHER RECEIVABLES, NET (Details
OTHER RECEIVABLES, NET (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER RECEIVABLES, NET | ||
Rental deposit | $ 0 | $ 7,712 |
Property management fee deposit | 5,472 | 0 |
Due from third parties | 2,150 | 77,986 |
Other receivable from customer in agent service | 153,046 | 0 |
Total other receivables | 160,668 | 85,698 |
Less: Provision for doubtful accounts | 0 | (72,852) |
Other receivables, net | $ 160,668 | $ 12,846 |
OTHER RECEIVABLES, NET (Detai_2
OTHER RECEIVABLES, NET (Details Textual) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER RECEIVABLES, NET | ||
Allowance for Doubtful Other Receivables, Current | $ 0 | $ 72,852 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
PREPAYMENTS AND OTHER CURRENT ASSETS | ||
Prepayments for inventory | $ 0 | $ 463 |
Prepayments for services | 124,724 | 0 |
Prepaid rental | 3,082 | 0 |
Others | 6,326 | 2,476 |
Total | $ 134,132 | $ 2,939 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Less: accumulated depreciation | $ (205,744) | $ (138,026) |
Property and equipment, net | 307,928 | 270,814 |
Building [Member] | ||
Property and equipment, gross | 170,580 | 173,388 |
Vehicles [Member] | ||
Property and equipment, gross | 186,102 | 189,167 |
Machine [Member] | ||
Property and equipment, gross | 6,167 | 6,268 |
Furniture [Member] | ||
Property and equipment, gross | 43,127 | 12,123 |
Leasehold improvement [Member] | ||
Property and equipment, gross | $ 107,696 | $ 27,894 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET | |||
Depreciation | $ 93,009 | $ 68,056 | $ 62,602 |
Impairment loss on equipment | $ 0 | $ 17,652 | $ 0 |
LONG TERM DEPOSITS (Details)
LONG TERM DEPOSITS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Total | $ 18,635 | $ 0 |
Office rental deposits | ||
Total | $ 18,635 | $ 0 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ACCOUNTS PAYABLE | ||
Payable to suppliers | $ 4,430,519 | $ 282,596 |
Others | 0 | 715 |
Total | $ 4,430,519 | $ 283,311 |
OTHER PAYABLE AND ACCRUED EXP_3
OTHER PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER PAYABLE AND ACCRUED EXPENSES | ||
Accrued payroll | $ 21,751 | $ 1,941 |
Other tax payable | 49,333 | 82,606 |
Other payable | 203,862 | 161,455 |
Total | $ 274,946 | $ 246,002 |
OTHER PAYABLE AND ACCRUED EXP_4
OTHER PAYABLE AND ACCRUED EXPENSES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OTHER PAYABLE AND ACCRUED EXPENSES | ||
Accrual for Taxes Other than Income Taxes, Current | $ 49,333 | $ 82,606 |
Accounts Payable, Other, Current | $ 203,862 | 161,455 |
Unpaid Rental Fees and Interest Free Loans | $ 119,478 | |
Debt Instrument, Maturity Date | Dec. 31, 2019 |
LOAN FROM THIRD PARTIES (Detail
LOAN FROM THIRD PARTIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
LOAN FROM THIRD PARTIES | ||
Principal of loan from third parties | $ 0 | $ 2,185,569 |
Accrued interest payable | 0 | 67,303 |
Total | $ 0 | $ 2,252,872 |
LOAN FROM THIRD PARTIES (Deta_2
LOAN FROM THIRD PARTIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
LOAN FROM THIRD PARTIES | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,185,569 | |
Line of Credit Facility, Interest Rate During Period | 4.00% | |
Debt Instrument, Periodic Payment, Interest | $ 0 | $ 67,303 |
TAXATION (Details)
TAXATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION | |||
Current income tax provision | $ 292,956 | $ 11,567 | $ 0 |
Deferred income tax provision | 0 | 0 | 0 |
Total | $ 292,956 | $ 11,567 | $ 0 |
TAXATION (Details 1)
TAXATION (Details 1) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION | ||||
Income(loss) before income taxes | $ 1,239,491 | $ (50,357) | $ (745,660) | |
Statutory EIT rate | 25.00% | 25.00% | 25.00% | 25.00% |
Income tax benefit(expense) computed at statutory EIT rate | $ 309,873 | $ (12,589) | $ (186,415) | |
Reconciling items: | ||||
International tax rate differential | (16) | 46 | 0 | |
Non-deductible expenses | 1,219 | 132,498 | 57,401 | |
Valuation allowance | (18,120) | (108,388) | 129,014 | |
Income tax expense | $ 292,956 | $ 11,567 | $ 0 | |
Effective tax rate | 24.00% | (23.00%) | 0.00% |
TAXATION (Details 2)
TAXATION (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
TAXATION | ||
Allowance for doubtful accounts | $ 0 | $ 18,213 |
Impairment expenses | 4,186 | 4,255 |
Deferred tax assets, gross | 4,186 | 22,468 |
Less: Valuation allowance | (4,186) | (22,468) |
Deferred tax assets, net | $ 0 | $ 0 |
TAXATION (Details Textual)
TAXATION (Details Textual) | Apr. 01, 2019 | Jan. 31, 2008 | Dec. 31, 2019HKD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Surtax Including Urban Maintenance and Construction Taxes and Additional Education Fees, Rate | 6.00% | 6.00% | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 1,239,491 | $ (50,357) | $ (745,660) | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (18,282) | $ 106,546 | ||||
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent | 50.00% | 50.00% | ||||
Hong Kong [Member] | ||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 2,000,000 | |||||
Maximum [Member] | Hong Kong [Member] | ||||||
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 16.50% | 16.50% | ||||
Minimum [Member] | Hong Kong [Member] | ||||||
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | 8.25% | 8.25% | ||||
Product [Member] | Maximum [Member] | ||||||
Value-Added Tax Rate | 16.00% | |||||
Product [Member] | Minimum [Member] | ||||||
Value-Added Tax Rate | 13.00% | |||||
Cargo and Freight [Member] | Maximum [Member] | ||||||
Value-Added Tax Rate | 10.00% | |||||
Cargo and Freight [Member] | Minimum [Member] | ||||||
Value-Added Tax Rate | 9.00% |
LEASE (Details)
LEASE (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
LEASE | ||
Right-of-use assets | $ 196,435 | $ 0 |
Lease payment liability- current | 92,230 | 0 |
Lease payment liability- current | 96,707 | 0 |
Total lease payment liability | $ 188,937 | $ 0 |
LEASE (Details 1)
LEASE (Details 1) | 12 Months Ended |
Dec. 31, 2019 | |
Remaining lease term and discount rate: | |
Remaining Lease term (Years) | 2 years 3 months 18 days |
Discount rate | 4.75% |
LEASE (Details 2)
LEASE (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease expense | |||
Operating lease cost | $ 90,990 | ||
Short-term lease cost | 16,550 | ||
Total | 107,540 | ||
Cash payment for operating lease under ASC 842 | $ 131,232 | ||
Rental expenses based on ASC 840 | $ 59,414 | $ 70,586 |
LEASE (Details 3)
LEASE (Details 3) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
LEASE | ||
2020 | $ 97,474 | |
2021 | 97,474 | |
2022 and thereafter | 0 | |
Total lease payments | 194,948 | |
Less: imputed interest | (6,011) | |
Present value of lease liabilities | $ 188,937 | $ 0 |
ORDINARY SHARE (Details Textual
ORDINARY SHARE (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 05, 2017 | Jul. 30, 2017 | |
Common Stock, Shares, Issued | 14,333,334 | 14,333,334 | 13,333,334 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||
Common Stock, Shares, Outstanding | 14,333,334 | 14,333,334 | 14,333,334 | 13,333,334 | |
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||
Common Stock, Value, Issued | $ 14,333 | $ 14,333 | |||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 80,000 | ||||
Common Stock | |||||
Common Stock, Shares, Issued | 1,000,000 | 14,333,334 | |||
Shares Issued, Price Per Share | $ 0.08 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||||
Stock Issued During Period, Shares, New Issues | 14,333,334 | 1,000,000 | |||
Common Stock, Value, Issued | $ 14,333,334 |
STATUTORY RESERVE (Details)
STATUTORY RESERVE (Details) | 12 Months Ended |
Dec. 31, 2019 | |
STATUTORY RESERVE | |
Net profit after income tax, reserve percentage | 10.00% |
Statutory reserve percentage of registered capital | 50.00% |
STATUTORY RESERVE (Details 1)
STATUTORY RESERVE (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
STATUTORY RESERVE | ||
Balance | $ 74,956 | $ 74,956 |
Appropriation to statutory reserve | 79,495 | 0 |
Balance | $ 154,451 | $ 74,956 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2017CNY (¥) | |
Due to Related Parties, Current | $ 407,706 | $ 1,058,623 | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | 17,698 | $ 19,246 | |||
Loan borrowed | ¥ | ¥ 1,000,000 | |||||
Mr. Yonghong Che | ||||||
Due to Related Parties, Current | 50,997 | |||||
Equity Method Investment, Ownership Percentage | 9.30% | 9.30% | ||||
Mr. Bingshan Guo | ||||||
Due to Related Parties, Current | 211,005 | $ 198,556 | ||||
Equity Method Investment, Ownership Percentage | 23.30% | 23.30% | ||||
XiangyangGuo [Member] | ||||||
Due to Related Parties, Current | 145,704 | $ 860,067 | ||||
Loan borrowed | ¥ | ¥ 5,000,000 | ¥ 1,000,000 | ||||
Hongxing [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 17,698 | $ 19,246 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional (Details) | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Nov. 05, 2019CNY (¥) | Nov. 05, 2019USD ($) | Aug. 21, 2019CNY (¥) | Aug. 21, 2019USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||||
Loans and Leases Receivable, Related Parties | $ 724,800 | $ 343,193 | ||||
Loan repaid to related party by the Company | 59,868 | |||||
Total amount of notes payable involved in the contract | ¥ 12,650,000 | $ 1,813,308 | ||||
Mr. Yonghong Che | ||||||
Related Party Transaction [Line Items] | ||||||
Loan repaid to related party by the Company | 50,736 | |||||
Mr. Bingshan Guo | ||||||
Related Party Transaction [Line Items] | ||||||
Loans and Leases Receivable, Related Parties | 195,148 | |||||
Loan repaid to related party by the Company | 9,132 | |||||
XiangyangGuo [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Loans and Leases Receivable, Related Parties | $ 724,800 | ¥ 5,000,000 | $ 724,800 | $ 148,045 | ||
Pledge for the note payables | ¥ 15,000,000 | $ 2,150,168 |
CONCENTRATION AND RISK (Details
CONCENTRATION AND RISK (Details 1) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Customer A [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 33.00% | ||
Customer B [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 17.00% | ||
Customer C [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 14.00% | ||
Customer D [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 11.00% | ||
Customer E [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 46.00% | ||
Customer F [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 54.00% | ||
Customer G [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 99.00% | ||
[1] | Less than 10%. |
CONCENTRATION AND RISK (Detai_2
CONCENTRATION AND RISK (Details 2) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplier P [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 100.00% | ||
Supplier J [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 60.00% | ||
Supplier K [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | [1] | 16.00% | ||
[1] | Less than 10%. |
CONCENTRATION AND RISK (Detai_3
CONCENTRATION AND RISK (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Customer D [Member] | ||||
Concentration Risk, Percentage | [1] | 11.00% | ||
Supplier J [Member] | ||||
Concentration Risk, Percentage | [1] | 60.00% | ||
CHINA | ||||
Amount deposited in major financial institutions | $ 80,073 | $ 8 | ||
HONG KONG | ||||
Amount deposited in major financial institutions | $ 35,367 | $ 848,514 | ||
Accounts Receivable [Member] | Customer D [Member] | ||||
Concentration Risk, Percentage | 10.00% | 10.00% | ||
Accounts Payable [Member] | Supplier M [Member] | ||||
Concentration Risk, Percentage | 65.00% | |||
Accounts Payable [Member] | Supplier N [Member] | ||||
Concentration Risk, Percentage | 34.00% | |||
[1] | Less than 10%. |