Cover
Cover | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Entity Registrant Name | WETRADE GROUP INC |
Entity Central Index Key | 0001784970 |
Document Type | S-1/A |
Amendment Flag | true |
Entity Small Business | true |
Amendment Description | Amendment |
Entity Emerging Growth Company | true |
Entity Filer Category | Non-accelerated Filer |
Entity Ex Transition Period | false |
Entity Incorporation State Country Code | WY |
Entity Address Address Line 1 | No 1 Gaobei South Coast |
Entity Address Address Line 2 | Yi An Men 111 Block 37 |
Entity Address Address Line 3 | Chao Yang District |
Entity Address City Or Town | Beijing City |
Entity Address Postal Zip Code | 100020 |
City Area Code | 86 |
Local Phone Number | 135-011-76409 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | |||
Cash and Cash Equivalents | $ 1,395,025 | $ 4,640,603 | $ 6,591,128 |
Accounts Receivables | 6,680,260 | 2,609,520 | 0 |
Note receivable | 3,713,228 | 3,097,981 | 0 |
Other receivables | 39,242 | 5,771 | 0 |
Prepayments | 2,941,094 | 61,707 | 0 |
Total current assets | 14,768,849 | 10,415,582 | 6,591,128 |
Non current Assets: | |||
Property and equipment, net | 138,339 | 0 | 0 |
Right of use assets | 2,436,890 | 2,813,186 | 0 |
Intangible asset, net | 41,841 | 49,029 | 0 |
Rental deposit | 268,226 | 264,910 | |
Total non-current assets | 2,885,295 | 3,127,125 | |
Total Assets: | 17,654,144 | 13,542,707 | 6,591,128 |
Current Liabilities: | |||
Account payables | 226,850 | 8,176 | 0 |
Accrued expenses | 172,086 | 263,355 | 32,000 |
Tax payables | 150,709 | 828,695 | 0 |
Amount due to related parties | 668,500 | 416,500 | 1,754,515 |
Lease liabilities, current | 569,060 | 569,865 | 0 |
Other payables | 851,195 | 90,633 | 0 |
Total Current Liabilities | 2,638,401 | 2,177,224 | 1,786,515 |
Lease liabilities, non current | 2,087,480 | 2,471,598 | 0 |
Total Liabilities | 4,725,881 | 4,648,822 | 1,786,515 |
Stockholders' Equity: | |||
Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at June 31, 2021 and December 31, 2020 | 0 | 0 | 0 |
Additional Paid in Capital | 6,057,520 | 6,057,520 | 222,020 |
Share to be issued | 0 | 5,000,000 | |
Accumulated other comprehensive income | 708,728 | 578,735 | 0 |
Retained Earning | 6,162,015 | 2,257,630 | (417,407) |
Total Stockholders' Equity | 12,928,263 | 8,893,885 | 4,804,613 |
Total Liabilities and Stockholders' Equity | $ 17,654,144 | $ 13,542,707 | $ 6,591,128 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity | |||
Common stock, shares par value | $ 0 | $ 0 | $ 0 |
Common stock, shares issued | 305,451,498 | 305,451,498 | 300,222,000 |
Common stock, shares outstanding | 305,451,498 | 305,451,498 | 300,222,000 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Revenue: | ||||||
Service revenue, related party | $ 0 | $ 1,493,829 | $ 0 | $ 2,370,192 | $ 0 | $ 2,831,252 |
Service revenue | 4,598,675 | 518,269 | 11,262,491 | 518,269 | 0 | 3,440,312 |
Total service revenue | 4,598,675 | 2,012,098 | 11,262,491 | 2,888,461 | 0 | 6,271,564 |
Cost of revenue | (2,105,116) | (427,647) | (2,441,883) | (515,195) | 0 | (615,595) |
Gross Profit | 2,493,559 | 1,584,451 | 8,820,608 | 2,373,266 | 5,655,969 | |
Operating Expenses: | ||||||
General and administrative expense | 1,039,081 | 407,067 | 4,695,727 | 617,216 | (417,407) | (1,901,336) |
Total operating expenses | (1,039,081) | (407,067) | (4,695,727) | (617,216) | ||
Profit from operations | 1,454,478 | 1,177,384 | 4,124,881 | 1,756,050 | (417,407) | 3,754,633 |
Other revenue | 59,902 | 38,939 | 258,501 | 39,060 | ||
Other income | 0 | 82,960 | ||||
Profit before provision income taxes | 1,541,380 | 1,216,323 | 4,383,382 | 1,795,110 | (417,407) | 3,837,593 |
Income tax provision | (104,109) | (475,431) | (478,997) | (487,984) | 0 | (1,162,556) |
Net Income | 1,410,271 | 740,892 | 3,904,385 | 1,307,126 | (417,407) | 2,675,037 |
Comprehensive income | ||||||
Net income (loss) | 1,410,271 | 740,892 | 3,904,385 | 1,307,126 | ||
Other Comprehensive Income | ||||||
Foreign currency translation adjustment | 9,828 | 244,292 | 129,993 | 183,673 | 0 | 578,735 |
Total comprehensive Income | $ 1,420,099 | $ 985,184 | $ 4,034,378 | $ 1,490,799 | $ (417,407) | $ 3,253,772 |
Earning per share, basic and diluted | $ 0.01 | $ 0 | $ 0.01 | $ 0 | $ 0 | $ 0.01 |
Weighted average shares outstanding, basic and diluted* | 305,451,498 | 308,704,888 | 305,451,498 | 304,166,073 | 300,222,000 | 304,166,073 |
Statement of Changes in Stockho
Statement of Changes in Stockholders Equity (Deficit) (Unaudited) - USD ($) | Total | Weijafu [Member] | Common Stock | Additional Paid-In Capital | Shares To Be Issued [Member] | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss |
Balance, shares at Mar. 28, 2019 | 300,000,000 | ||||||
Stock issued during the year, shares | 222,000 | ||||||
Stock issued during the year, amount | $ 222,020 | $ 222,020 | |||||
Stock to be issued | 5,000,000 | $ 5,000,000 | |||||
Net loss for the period | (417,407) | $ (417,407) | $ 0 | ||||
Balance, shares at Dec. 31, 2019 | 300,222,000 | ||||||
Balance, amount at Dec. 31, 2019 | 4,804,613 | $ 0 | 222,020 | 5,000,000 | (417,407) | 0 | |
Stock issued during the year, shares | 5,229,498 | ||||||
Stock issued during the year, amount | 835,500 | 5,835,500 | (5,000,000) | 0 | |||
Net loss for the period | 1,307,126 | 1,307,126 | 0 | ||||
Foreign currency translation adjustment | 183,673 | 183,673 | |||||
Balance, shares at Sep. 30, 2020 | 305,451,498 | ||||||
Balance, amount at Sep. 30, 2020 | 7,130,912 | $ 0 | 6,057,520 | 0 | 889,719 | 183,673 | |
Balance, shares at Dec. 31, 2019 | 300,222,000 | ||||||
Balance, amount at Dec. 31, 2019 | $ 4,804,613 | $ 0 | 222,020 | 5,000,000 | (417,407) | 0 | |
Stock issued during the year, shares | 305,451,498 | ||||||
Stock issued during the year, amount | $ 835,500 | $ 5,229,498 | 5,835,500 | (5,000,000) | |||
Net loss for the period | 2,675,037 | 0 | 0 | 2,675,037 | 0 | ||
Foreign currency translation adjustment | 578,735 | ||||||
Balance, shares at Dec. 31, 2020 | 305,451,498 | ||||||
Balance, amount at Dec. 31, 2020 | 8,893,885 | $ 8,893,885 | $ 0 | 6,057,520 | 2,257,630 | 578,735 | |
Balance, shares at Jun. 30, 2020 | 305,221,998 | ||||||
Balance, amount at Jun. 30, 2020 | 5,388,227 | $ 0 | 5,222,020 | 78,000 | 148,826 | (60,619) | |
Stock issued during the year, shares | 229,500 | ||||||
Stock issued during the year, amount | 757,500 | $ 8 | 835,500 | (78,000) | 0 | ||
Net loss for the period | 740,892 | 740,893 | |||||
Foreign currency translation adjustment | 244,292 | 244,292 | |||||
Balance, shares at Sep. 30, 2020 | 305,451,498 | ||||||
Balance, amount at Sep. 30, 2020 | 7,130,912 | $ 0 | 6,057,520 | $ 0 | 889,719 | 183,673 | |
Balance, shares at Dec. 31, 2020 | 305,451,498 | ||||||
Balance, amount at Dec. 31, 2020 | $ 8,893,885 | $ 8,893,885 | $ 0 | 6,057,520 | 2,257,630 | 578,735 | |
Stock issued during the year, shares | 305,451,498 | ||||||
Net loss for the period | $ 3,904,385 | 3,904,385 | 0 | ||||
Foreign currency translation adjustment | 129,993 | 129,993 | |||||
Balance, shares at Sep. 30, 2021 | 305,451,498 | ||||||
Balance, amount at Sep. 30, 2021 | 12,928,263 | $ 0 | 6,057,520 | 6,162,015 | 708,728 | ||
Balance, shares at Jun. 30, 2021 | 305,451,498 | ||||||
Balance, amount at Jun. 30, 2021 | 11,508,164 | $ 0 | 6,057,520 | 4,751,744 | 698,900 | ||
Net loss for the period | 1,410,271 | 1,410,271 | 0 | ||||
Foreign currency translation adjustment | 9,828 | 9,828 | |||||
Balance, shares at Sep. 30, 2021 | 305,451,498 | ||||||
Balance, amount at Sep. 30, 2021 | $ 12,928,263 | $ 0 | $ 6,057,520 | $ 6,162,015 | $ 708,728 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | ||||
Net Income | $ 3,904,385 | $ 1,307,126 | $ (417,407) | $ 2,675,037 |
Adjustment to reconcile net income to cash flows from operating activities: | ||||
Amortization of intangible asset | 7,807 | 0 | 0 | 11,696 |
Changes in Operating Assets and Liabilities: | ||||
Trade Receivables | 0 | 0 | (2,489,993) | |
Trade receivables, related party | 0 | (478,679) | 0 | 0 |
Trade receivables, third party | (4,031,797) | (549,365) | 0 | 0 |
Note receivable | (609,770) | 0 | 0 | 0 |
Other receivables | 766,002 | (275,629) | 0 | (258,282) |
Prepayments | (2,750,419) | (206,845) | 0 | (41,141) |
Amount due to related parties | 252,000 | (1,560,020) | 254,515 | 0 |
Intangible asset | 0 | (76,980) | 0 | (58,480) |
Accounts payables | 218,232 | 0 | 0 | 0 |
Accrued expenses | 56,445 | 187,839 | 32,000 | 220,658 |
Right of use assets | 411,515 | (2,824,106) | 0 | (2,684,330) |
Lease liabilities | (422,999) | 2,878,801 | 0 | 2,902,151 |
Other payables | (610,232) | 555,248 | 0 | 48,524 |
Trade payable | 0 | 0 | 0 | 7,802 |
Tax payables | 0 | 0 | 0 | 828,695 |
Net Cash Used in Operating Activities: | (2,808,831) | (1,042,610) | (130,892) | 1,162,337 |
Cash flow from investing activity: | ||||
Office equipment | (138,124) | 0 | 0 | 0 |
Net cash provided by investing activity: | (138,124) | 0 | ||
Cash flow from financing activities: | ||||
Proceeds from issuance of common stock | 0 | 0 | 222,020 | 835,500 |
Share issued for cash | 0 | 835,500 | 0 | 0 |
Share to be issued | 0 | 0 | 5,000,000 | 0 |
Note receivable | 0 | 0 | 0 | (2,957,622) |
Related party loan | 0 | 0 | 1,500,000 | (1,560,020) |
Net cash provided by financing activities: | 0 | 835,500 | 6,722,020 | (3,682,142) |
Effect of exchange rate changes on cash | (298,623) | 403,517 | 0 | 569,280 |
Change in Cash and Cash Equivalents: | (3,245,578) | 196,407 | 6,591,128 | (1,950,525) |
Cash and Cash Equivalents, Beginning of Period | 4,640,603 | 6,591,128 | 0 | 6,591,128 |
Cash and Cash Equivalents, End of Period | 1,395,025 | 6,787,535 | 6,591,128 | 4,640,603 |
Supplemental Cash Flow Information: | ||||
Cash paid for interest | 0 | 0 | 0 | 0 |
Cash paid for taxes | $ 1,078,125 | $ 0 | $ 0 | $ 1,162,556 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
NATURE OF BUSINESS | ||
NOTE 1 - NATURE OF BUSINESS | NOTE 1 NATURE OF BUSINESS Organization WeTrade Group, Inc. was incorporated in the State of Wyoming on March 28, 2019 and is in the business of providing technical services and solutions via its membership-based social e-commerce platform. We are committed to providing an international cloud-based intelligence system and independently developed a micro-business cloud intelligence system called the “YCloud.” Our goal is to provide technical and auto-billing management services to micro-business online stores in China through big data analytics, machine learning mechanisms, social network recommendations, and multi-channel data analysis. We provide technology services to both individual and corporate users. Through Yueshang Beijing, we provide “YCloud” service to our customer, Zhuozhou Weijiafu Information Technology Limited, or Weijiafu, a PRC technology company, which provide “YCloud” services to individual and corporate micro-business owners. The market individual micro-business owners represents a potential of 330 million users by the year of 2023. YCloud serves corporate users in multiple industries, including Yuetao Group, Zhiding, Lvyue, Yuebei, Yuedian, Coke GO, and Zhongyanshangyue. We conduct business operations in mainland China and have established trial operations in Hong Kong, the Philippines, and Singapore. We expect to utilize the YCloud system to establish a global strategic cooperation with various social media platforms. Plan to negotiate with Kakao Talk, Line, Whatsapp, Ohho, and Bluechat. Additionally, we have formed long-term technical collaborations with Yuetao App, Daren App, Yuebei App, Zhiding App, Yuedian App, and Lvyue App through Weijiafu. In January 2020, we appointed a third party software company to develop an auto-billing management system (“WeTrade System”), the early stage of the YCloud system, at the cost of RMB 400,000 (or approximately USD $62,000) to provide online payment services for micro-business owners in the PRC. The main functions of the YCloud system is to manage users’ marketing relationships, CPS commission profit management, multi-channel data statistics, AI fission and management, and improved supply chain systems. Currently, YCloud serves the micro business industry. We expect to expand the application of YCloud to tourism, hospitality, livestreaming and short video, medical beauty and traditional retail industries. Our Business We believe that YCloud the first global micro-business cloud intelligent internationalization system. It conducts multi-channel data analysis through the learning of big data and social recommendation relationships. It also provides users with independent research and development of community AI fission and management systems and supply chain systems. It focuses on solving the problem of new maintenance, supply chain CPS integration output, and enrich the functional needs of users. YCloud has four main functions and competitive advantages as follows Multiple integrated payment methods and payment analytics: the YCloud system provides micro-business owners with multiple payment methods such as Alipay, WeChat, and UnionPay. The total order amount is directly entered into the platform to collect funds in separate accounts. Using YCloud’s technology support, the micro-business owners offer multiple channels of payments to their customers, including Alipay, WeChat, and UnionPay. Meanwhile, YCloud assigns a bar code to merchandises that purchasers can then scan to pay, allowing purchasers to make payments both online and offline. This proprietary payment technology allows our customers to reduce labor costs and error rates, thus significantly improving data analysis. Team management AI fission and management: Supply chain system integration: The following diagram sets forth the structure of the Company as of the date of this Current Report: Our business and corporate address in the United States is 1621 Central Ave, Cheyenne, WY 82001 Our telephone number is +852-67966335 and our registered agent for service of process is Wyoming Registered Agent, 1621 Central Ave, Cheyenne, WY 82001. Our fiscal year end is December 31. Our Chinese business and corporate address is No 1 Gaobei South Coast, Yi An Men 111 Block 37, Chao Yang District, Beijing City, People Republic of China, Tel. +8610-85788631. The Chinese address is where our management is located. | NOTE 1. NATURE OF BUSINESS Organization WeTrade Group, Inc. was incorporated in the State of Wyoming on March 28, 2019 and is in the business of providing technical services and solutions via its membership-based social e-commerce platform. We are committed to providing an international cloud-based intelligence system and independently developed a micro-business cloud intelligence system called the “YCloud.” Our goal is to provide technical and auto-billing management services to micro-business online stores in China through big data analytics, machine learning mechanisms, social network recommendations, and multi-channel data analysis. We provide technology services to both individual and corporate users. Through Yueshang Beijing, we provide “YCloud” service to our sole customers, Zhuozhou Weijiafu Information Technology Limited (“Weijiafu”), a PRC technology company, which provide “YCloud” services to individual and corporate micro-business owners. The market individual micro-business owners represents a potential of 330 million users by the year of 2023. (Source: iResrarch. http://xueqiu.com/8455183447/172404679?sharetime=2,2/22/2021). YCloud serves corporate users in multiple industries, including Yuetao Group, Zhiding, Lvyue, Yuebei, Yuedian, Coke GO, and Zhongyanshangyue. We conduct business operations in mainland China and have established trial operations in Hong Kong. We expect to utilize the YCloud system to establish a global strategic cooperation with various social media platforms. Plan to negotiate with Kakao Talk, Line, Whatsapp, Ohho, and Bluechat. Additionally, we have formed long-term technical collaborations with Yuetao App, Daren App, Yuebei App, Zhiding App, Yuedian App, and Lvyue App through Weijiafu. In January 2020, we appointed 3rd party software company to develop an auto-billing management system (“WeTrade System”), to provide online payment services for our customers in PRC. The main functions of YCloud System are users’ marketing relationship, CPS commission profit management, multi-channel data statistics, AI fission and management, improved supply chain system. YCloud applications cover the micro business industry, tourism industry, hospitality industry, livestreaming and short video industry, medical beauty industry and traditional retail industry. Currently, YCloud serves the micro business industry. We expect to expand the application of YCloud to tourism, hospitality, livestreaming and short video, medical beauty and traditional retail industries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation of financial statements The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements of the Company as of and for the nine months ended September 30, 2021 and 2020 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2021, the results of its operations for the period ended September 30, 2021 and 2020, and its cash flows for the period ended September 30, 2021 and 2020. Operating results for the quarterly periods presented are not necessarily indicative of the results to be expected for a full fiscal year. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The balance sheet as of December 31, 2020 has been derived from the Company’s audited financial statements included in the Form 10-K for the year ended December 31, 2020. The statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Company’s Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 31, 2020. As of September 30, 2021, the details of the consolidating subsidiaries are as follows: Place of Attributable Name of Company incorporation equity interest % Utour Pte Ltd Singapore 100 % WeTrade Information Technology Limited (“WITL”) Hong Kong 100 % Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C 100 % WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) P.R.C 100 % Nature of Operations WeTrade Group Inc. (the “Company” or or “We’ or “Us”) is a Wyoming corporation incorporated on March 28, 2019. The Company is an investment holding company that formed as a Wyoming corporation to use as a vehicle for raising equity outside the US. As of September 30, 2021, the nature operation of its subsidiaries are as follows: Place of Nature of Name of Company incorporation operation Utour Pte Ltd Singapore Investment holding company WeTrade Information Technology Limited (“WITL”) Hong Kong Investment holding company Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. Providing of social e-commerce services, technical system support and services Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C Providing of social e-commerce services, technical system support and services Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C Providing of social e-commerce services, technical system support and services WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) P.R.C Providing of social e-commerce services, technical system support and services COVID-19 outbreak In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. The COVID-19 pandemic has negatively impacted the global economy, workforces, customers, and created significant volatility and disruption of financial markets. It has also disrupted the normal operations of many businesses, including ours. This outbreak could decrease spending, adversely affect demand for our services and harm our business and results of operations. It is not possible for us to predict the duration or magnitude of the adverse results of the outbreak and its effects on our business or results of operations at this time. Revenue recognition The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in Singapore and PRC is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the PRC, or Singapore. Foreign Currency The Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions from the inception to September 30, 2021. September 30, 2021 December 31, 2020 RMB: US$ exchange rate 6.45 6.53 The balance sheet amounts, with the exception of equity, September 30, 2021 and December 31, 2020 were translated at 6.45 RMB and 6.53 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the period ended September 30, 2021 and year ended December 31, 2020 were 6.46 RMB and 6.84 RMB to1.00, respectively. Cash flows were also translated at average translation rates for the year and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The transactions dominated in SGD are immaterial. Use of Estimate The preparation of financial statements in conformity with 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 reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. Concentration of Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. Cash on hand amounted to $1,395,025 Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. Intangible Asset Intangible asset is software development cost incurred by company, it will be amortized on a straight line basis over the estimated useful life of5 years. Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. The estimated useful lives of computer and office equipment is 3 years. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Leases The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. Operating leases are included in operating lease right-of-use (“ROU”) assets and short-term and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, we use the industry incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. After the new adoption, $ ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow: Lease cost In USD Operating lease cost (included in general and admin in company’s statement of operations) $ 519,249 Other information Cash paid for amounts included in the measurement of lease liabilities for the nine months ended 9/30/2021 531,539 Weighted average remaining lease term-operating leases (in years) 3.92 Average discount rate - operating leases 5 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Long -term right-of-use assets 2,436,890 Total right-of-use assets $ 2,436,890 Short-term operating lease liabilities 569,060 Long-term operating lease liabilities 2,087,481 Total operating lease liabilities $ 2,656,541 Maturities of the Company’s lease liabilities are as follows: Year ending September 30, 2021 687,891 2022 730,133 2023 775,308 2024 742,160 2025 - Total lease payments 2,935,492 Less: Imputed interest/present value discount (278,951 ) Present value of lease liabilities $ 5,592,033 Income Tax Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has a subsidiary in Singapore and PRC. The Company is subject to tax in Singapore and PRC jurisdictions. As a result of its future business activities, the Company will be required to file tax returns that are subject to examination by the Inland Revenue Authority of Singapore and Tax Department of PRC. Profit Per Share Basic net income per share of common stock attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common stockholders when their effect is dilutive. Potential dilutive securities are excluded from the calculation of diluted EPS in profit periods as their effect would be anti-dilutive. As of September 30, 2021, there were no potentially dilutive shares. For the period September 30, 2021 For the period September 30, 2020 Statement of Operations Summary Information: Net Profit $ 3,904,385 1,307,126 Weighted-average common shares outstanding - basic and diluted 305,451,498 304,166,073 Net loss per share, basic and diluted $ 0.01 $ 0.00 Fair Value The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. As of December 31, 2020, the details of the consolidating subsidiaries are as follows: Place of Attributable Name of Company incorporation equity interest % Utour Pte Ltd Singapore 100 % WeTrade Information Technology Limited (“WITL”) Hong Kong 100 % Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C 100 % Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in preparing the financial statements are reasonable and prudent; however, actual results could differ from these estimates. Significant estimates include the allowance for doubtful accounts, impairment assessments of goodwill, valuation of deferred tax assets, rebilling collections and certain accrued liabilities such as contingent liabilities. Fair Value The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. Revenue recognition The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts As of December 31, 2020 December 31, 2019 RMB: US$ exchange rate 6.53 6.96 Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in Singapore and PRC is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the PRC, or Singapore. Foreign Currency The Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions from the inception to December 31, 2020. Year ended December 31, 2020 2019 RMB: US$ exchange rate 6.84 7.01 The balance sheet amounts, with the exception of equity, December 31, 2020 and December 31, 2019 were translated at 6.53 RMB and 6.96 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the year ended December 31, 2020 and year ended December 31, 2019 were 6.84 RMB and 7.01 RMB to $1.00, respectively. Cash flows were also translated at average translation rates for the year and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The transactions dominated in SGD are immaterial. Intangible Asset Intangible asset is software development cost of YCloud system incurred by the Company, it will be amortized on a straight line basis over the estimated useful life of 5 years. Commitments and contingencies On September 16, 2020 the Company entered into lease agreement for a new office space in Beijing. The term of the lease is for a (5) Five Years with first 4 months free on the 1st year of the term and 1st month free of each following years of the term. The monthly rent on the 1st year will be $54,081 with a 6% increase for each subsequent year. Total commitment for the full term of the lease will be $3,424,163. Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. After the new adoption, $2,813,186 of operating lease right-of-use asset and $3,041,463 of operating lease liabilities were reflected on the Company’s December 31, 2020 financial statements. ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow: Lease cost In USD Operating lease cost (included in general and admin in company’s statement of operations) $ 217,821 Other information Cash paid for amounts included in the measurement of lease liabilities for the quarter ended 12/31/2020 - Weighted average remaining lease term-operating leases (in years) 4.67 Average discount rate - operating leases 5 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Long -term right-of-use assets 2,813,186 Total right-of-use assets $ 2,813,186 Short-term operating lease liabilities 569,865 Long-term operating lease liabilities 2,471,598 Total operating lease liabilities $ 3,041,463 Maturities of the Company’s lease liabilities are as follows: Year ending December 31, 2021 709,227 2022 690,685 2023 733,273 2024 777,890 2025 513,088 Total lease payments 3,424,163 Less: Imputed interest/present value discount (382,700 ) Present value of lease liabilities $ 3,041,463 Income Tax Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has a subsidiary in Singapore and PRC. The Company is subject to tax in Singapore and PRC jurisdictions. As a result of its future business activities, the Company will be required to file tax returns that are subject to examination by the Inland Revenue Authority of Singapore and Tax Department of PRC. Capital Structure The Company currently has unlimited authorized shares of $0.00 par value common stock, with 305,451,498 shares issued and outstanding as of December 31, 2020. Earnings (loss) per share Basic net income (loss) per share of common stock attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common shareholders when their effect is dilutive. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. As of December 31, 2020 and 2019, there were no potentially dilutive shares. 2020 2019 Statement of Operations Summary Information: Net Profit/ (loss) $ 2,675,037 $ (417,407 ) Weighted-average common shares outstanding - basic and diluted 304,166,073 300,222,000 Net loss per share, basic and diluted $ 0.01 $ (0.00 ) |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2021 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
REVENUE
REVENUE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
REVENUE | ||
NOTE 4 - REVENUE | NOTE 4 - REVENUE In the business of providing technical services and solutions via a social e-commerce platform, we are committed to providing an international cloud-based intelligence system and independently developed the “YCloud” system. We aim to provide technical and auto-billing management services to micro-business online stores in China through big data analytics, machine learning mechanisms, social network recommendations, and multi-channel data analysis. We derive our revenue from service fees charged for transactions conducted through YCloud. We receive 3.5% of the total Gross Merchandise Volume generated in the platform as a service fee through our agreement with our customers (such as Weijiafu and Hainan Changtongfu), depending on the type of service and industry. Gross Merchandise Volume, or GMV, is a term used in online retailing to indicate a total sales monetary-value for merchandise sold through a particular marketplace over a certain time frame. We generally settle the service fee with customers within the first ten days of each calendar month. Sales to certain customers generated over 10% of the Company’s total net sales. Sales to Weijiafu for the nine months period ended September 30, 2021 were approximately 69.4% of the Company’s net sales. Sales to Hainan Changtongfu for the nine months period ended September 30, 2021 were approximately 30.6% of the Company’s net sales. Sales to certain customers generated over 10% of the Company’s total net sales. Sales to related company- Global Joy for the nine months period ended September 30, 2020 were approximately 82.1% of the Company’s net sales. Sales to Weijiafu for the nine months period ended September 30, 2020 were approximately 17.9% of the Company’s net sales. As of and for the nine months period ended September 30, 2021, we generated revenues from two customers amounting $ 11,262,491. | NOTE 3. REVENUE In the business of providing technical services and solutions via a social e-commerce platform, we are committed to providing an international cloud-based intelligence system and independently developed the “YCloud” system. We aim to provide technical and auto-billing management services to micro-business online stores in China through big data analytics, machine learning mechanisms, social network recommendations, and multi-channel data analysis. Weijiafu is in charge of the client profiles. Meanwhile, all YCloud users’ information is retained within YCloud system. We derive our revenue from service fees charged for transactions conducted through YCloud. We receive 2%-3.5% of the total Gross Merchandise Volume generated in the platform as a service fee through our agreement with Weijiafu, depending on the type of service and industry. Gross Merchandise Volume, or GMV, is a term used in online retailing to indicate a total sales monetary-value for merchandise sold through a particular marketplace over a certain time frame. We generally settle the service fee with Weijiafu within the first ten days of each calendar month. As of year ended December 31, 2020, we generated revenues from a non-related party amounting $3,440,312 and a related party amounting $2,831,252. |
CASH AT BANK
CASH AT BANK | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
CASH AT BANK | ||
NOTE 5 - CASH AT BANK | NOTE 5 - CASH AT BANK As of September 30, 2021, the Company held cash in bank in the amount of $ 1,395,025 which consist of the following: September 30, 2021 December 31, 2020 Bank Deposits-China $ 766,079 $ 4,593,943 Bank Deposits-Singapore 628,946 46,660 $ 1,395,025 $ 4,640,603 | NOTE 4 - CASH As of December 31, 2020, the Company held cash in bank in the amount of $4,640,603 which consist of the following: December 31, 2020 December 31, 2019 Bank Deposits-China $ 4,593,943 5,000,014 Bank Deposits-Singapore 46,660 1,591,114 4,640,603 6,591,128 |
INTANGIBLE ASSET
INTANGIBLE ASSET | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSET | ||
NOTE 6 - INTANGIBLE ASSET | NOTE 6 - INTANGIBLE ASSET Intangible asset is software development cost incurred by company, it will be amortized on a straight line basis over the estimated useful life of 5 years as follow: September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Intangible assets: Software development $ 57,143 $ (7,807 ) $ 49,336 5 Foreign currency translation adjustment - - (7,495 ) Intangible assets, net $ 57,143 $ (7,807 ) $ 41,841 Amortization expense for intangible assets was $7,807 for the nine months period ended September 30, 2021. Expected future intangible asset amortization as of September 30, 2021 was as follows: Fiscal years: Remaining 2021 $ 3,101 2022 12,412 2023 12,412 Thereafter 12,381 | NOTE 5 - INTANGIBLE ASSET Intangible asset is software development cost incurred by company, it will be amortized on a straight line basis over the estimated useful life of 5 years as follow: December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Intangible assets: Software development $ 57,143 $ (11,696 ) $ 45,447 5 Foreign currency translation adjustment - - 3,582 Intangible assets, net $ 57,143 $ (11,696 ) $ 49,029 Amortization expense for intangible assets was $11,696 for the year ended December 31, 2020. Expected future intangible asset amortization as of December 31, 2020 was as follows: Fiscal years: Remaining 2020 $ 49,029 2021 36,772 2022 24,515 2023 12,257 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
INTANGIBLE ASSET | |
NOTE 7 - PROPERTY AND EQUIPMENT | NOTE 7 - PROPERTY AND EQUIPMENT As of September 30, 2021, property and equipment consist of the following: September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Property and equipment: Office equipment $ 150,915 $ (12,557 ) $ 138,358 3 Foreign currency translation adjustment - - (19 ) Property and equipment, net $ 150,915 $ (12,557 ) $ 138,339 Depreciation expenses were $12,557 and nil for the period ended September 30, 2021 and year ended December 31, 2020 respectively as the computer and office equipment were acquired on June 29, 2021. |
ACCOUNT RECEIVABLES
ACCOUNT RECEIVABLES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
ACCOUNT RECEIVABLES | ||
NOTE 8 - ACCOUNT RECEIVABLES | NOTE 8 - ACCOUNT RECEIVABLES As of September 30, 2021, account receivables consist of the following: September 30, 2021 December 31, 2020 Services fee receivable $ 6,680,260 $ 2,609,520 $ 6,680,260 $ 2,609,520 Account receivables is related to the services fee receivable from third party customers. Account receivables from Weijafu for the nine months period ended September 30, 2021 were approximately 65.4% of the Company’s services fee receivables. Account receivables from Hainan Changtongfu for the nine months period ended September 30, 2021 were approximately 34.6% of the Company’s services fee receivables. Account receivables from Weijafu for the nine months period ended September 30, 2020 were approximately 53.4% of the Company’s services fee receivables. Account receivables from a related company-Global Joy Co Ltd for the nine months period ended September 30, 2020 were approximately 46.5% of the Company’s services fee receivables. | NOTE 6 - ACCOUNT RECEIVABLES As of December 31, 2020, account receivables consist of the following: December 31, 2020 December 31, 2019 Account Receivables $ 2,609,520 - Account receivables-Third parties is related to the services fee receivable from a third party customer. |
PREPAYMENTS
PREPAYMENTS | 9 Months Ended |
Sep. 30, 2021 | |
PREPAYMENTS | |
NOTE 8 - PREPAYMENTS | NOTE 9 - PREPAYMENTS As of September 30, 2021, prepayments consist of the following: September 30, 2021 December 31, 2020 Office furniture $ 2,090,723 $ - Office Rental 181,379 - Block chain software and annual fee 621,402 - Software licenses fee and others 47,590 61,707 $ 2,941,094 $ 61,707 |
NOTE RECEIVABLES
NOTE RECEIVABLES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
NOTE RECEIVABLES | ||
NOTE 10 - NOTE RECEIVABLES | NOTE 10 - NOTE RECEIVABLES As of September 30, 2021, Note receivables consist of the following: September 30, 2021 December 31, 2020 Note receivables $ 3,713,228 $ 3,097,981 $ 3,713,228 $ 3,097,981 Note receivable is related to the short-term loan of RMB 30 million (approximately of US$4.65 million) to a third party with annual interest of 5%, which has been matured on November 4, 2021. On October 3, 2021, the third party lender has entered the supplementary agreement with the company to extend the loan period to May 4, 2022. The accrued interest and principal amount of the loan for the period ended September 30, 2021 and December 31, 2020 are as follow: September 30, 2021 December 31, 2020 Principal $ 3,589,156 $ 3,064,336 Accrued interest 124,072 33,645 $ 3,713,228 $ 3,097,981 | NOTE 7 - NOTE RECEIVABLES As of December 31, 2020, Note receivables consist of the following: December 31, 2020 December 31, 2019 Note receivables 3,097,981 - Note receivable is related to the short-term loan of RMB 20 million (approximately of USD 3.1 million) to a third party with annual interest of 5%, which will be matured on November 4, 2021. As at December 31, 2020, the accrued interest for the loan is $33,646. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
OTHER RECEIVABLES | ||
NOTE 11 - OTHER RECEIVABLE | NOTE 11 - OTHER RECEIVABLES As of September 30, 2021, other receivables consist of rental deposit, property management fee deposit, prepaid trademark system set up fees and staff reserve fund as follow: September 30, 2021 December 31, 2020 Prepaid trademark and system set up fee $ - $ 3,318 Staff reserve fund and others 39,242 2,453 $ 39,242 $ 5,771 | NOTE 8 - OTHER RECEIVABLES As of December 31, 2020, other receivables is consist of rental deposit, property management fee deposit, prepaid trademark and system set up fees as follow: December 31, 2020 December 31, 2019 Rental deposit 230,620 - Property management fee deposit 34,290 - Prepaid trademark and system set up fee 3,318 - Others 2,453 - 270,681 - |
RENTAL DEPOSIT
RENTAL DEPOSIT | 9 Months Ended |
Sep. 30, 2021 | |
RENTAL DEPOSIT | |
NOTE 12 - RENTAL DEPOSIT | NOTE 12 - RENTAL DEPOSIT As of September 30, 2021, rental deposit of $ 268,226 is the office lease deposit with the tenancy period of 5 years, which consist of rental deposit and property management fee deposit. |
AMOUNT DUE TO DIRECTOR
AMOUNT DUE TO DIRECTOR | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
AMOUNT DUE TO DIRECTOR | ||
NOTE 13 - AMOUNT DUE TO DIRECTOR | NOTE 13 - AMOUNT DUE TO DIRECTOR As of September 30, 2021, amount due to related parties consist of the following: As of September 30, 2021 As of December 31, 2020 Related parties payable $ 276,500 $ 276,500 Related party loan 140,000 140,000 Director fee payable 252,001 - $ 668,501 $ 416,500 The related party balance of $668,500 represented an outstanding loan of $140,000 from the related company owned by Company’s director-Dai Zheng for daily business operation in Singapore, and professional expenses paid on behalf by Director of $276,500 and which consist of $224,500 advance from Dai Zheng, $42,000 advance from Li Zhuo and $10,000 from Che Kean Tat. It is unsecured, interest-free with no fixed payment term and imputed interest is consider to be immaterial. As of September 30, 2021, there were $140,000 of related party loan that are due to the company owned by Mr. Dai, the Chairman of the Board. | NOTE 9 - AMOUNT DUE TO RELATED PARTIES As of December 31, 2020, amount due to related parties consist of the following: As of December 31, 2020 As of December 31, 2019 Related parties payable 276,500 254,515 Related party loan 140,000 1,500,000 $ 416,500 1,754,515 The related party balance of $416,500 represented an outstanding loan of $140,000 from the related company owned by Company’s director-Dai Zheng for daily business operation in Singapore, and professional expenses paid on behalf by Director of $276,500 and which consist of $224,500 advance from Dai Zheng, $42,000 advance from Li Zhuo and $10,000 from Che Kean Tat. It is unsecured, interest-free with no fixed payment term and imputed interest is consider to be immaterial. The Company have settled related party loan of $650,000 and $710,000 in January 21, 2020 and March 2, 2020 respectively due to cost cutting in business operation in Singapore as a result of change in business plan. As of December 31, 2020, there were $140,000 of related party loan that are due to the company owned by Mr. Dai, the Chairman of the Board. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2021 | |
ACCRUED EXPENSES | |
NOTE 14 - ACCRUED EXPENSES | NOTE 14 - ACCRUED EXPENSES Accrued expenses of $ 172,086 consists of the accrued payroll, CPF and social welfare as follow: September 30, 2021 December 31, 2020 Accrued payroll $ 172,086 $ 263,355 $ 172,086 $ 263,355 |
TAX PAYABLES
TAX PAYABLES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
TAX PAYABLES | ||
NOTE 15 - TAX PAYABLES | NOTE 15 - TAX PAYABLES As of September 30, 2021, tax payable of $ 150,709 (December 31, 2020: $828,695) is consist of PRC corporate income tax at the rate of 25%, Value-added Tax of6% and PRC Urban construction tax and levies. | NOTE 10 - TAX PAYABLES As of December 31, 2020, tax payable of $828,695 is consist of PRC corporate income tax at the rate of 25%, Value-added Tax of 6% and PRC Urban construction tax and levies. |
OTHER PAYABLES
OTHER PAYABLES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
OTHER PAYABLES | ||
NOTE 16 - OTHER PAYABLES | NOTE 16 - OTHER PAYABLES Other payables of $ 851,195 is consist of the payables of securities account set up fee and office lease payable. | NOTE 11 - OTHER PAYABLES Other payables of $90,632 is consist of the payables of securities account set up fee and related documentation expenses. |
SHAREHOLDERS EQUITY (DEFICIT)
SHAREHOLDERS EQUITY (DEFICIT) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
STATEMENTS OF OPERATIONS (Unaudited) | ||
NOTE 17 - SHAREHOLDERS EQUITY (DEFICIT) | NOTE 17 - SHAREHOLDERS’ EQUITY (DEFICIT) The company has an unlimited number of ordinary shares authorized, and has issued 305,451,498 shares with no par value as of September 30, 2021. On March 29, 2019, the company has issued 100,000,000 shares with no par value to thirty-three founders. On September 3, 2019, the company has issued a total 74,000 shares at $3 each to 5 non-US shareholders. The total outstanding shares has increased to 100,074,000shares as at December 31, 2019. In February 2020, there are 1,666,666 shares issued at $3 per share to 2new shareholders. On July 10, 2020, the company has issued another 26,000 shares at $3 per share to 2 new shareholders and the total outstanding shares has increased to 101,766,666 shares. On September 15, 2020, the Wyoming Secretary of State approved the Company’s certificate of amendment to amend its Articles of Incorporation to effectuate a 3 for 1 forward stock split. The total issued and outstanding shares of the Company’s common stock has been increased from 101,766,666 to 305,299,998 shares, with the par value unchanged at zero. On September 21, 2020, there are 151,500 shares issued at $5 per share to 303 new shareholders, the Company’s common stock issued has been increased to 305,451,498 shares as of December 31, 2020. | NOTE 12 - EQUITY The company has an unlimited number of shares of common stock authorized, and has issued 305,451,498 shares with no par value as of December 31, 2020. On March 29, 2019, the company has issued 100,000,000 shares with no par value to thirty-three founders. On September 3, 2019, the company has issued a total 74,000 shares at $3 each to 5 non-US shareholders. The total outstanding shares has increased to 100,074,000 shares as at December 31, 2019. In February, 2020, there are 1,666,666 shares issued at $3 per share to 2 new shareholders. On July 10, 2020, the company has issued another 26,000 shares at $3 per share to 2 new shareholders and the total outstanding shares has increased to 101,766,666 shares. On September 15, 2020, the Wyoming Secretary of State approved the Company’s certificate of amendment to amend its Articles of Incorporation to effectuate a 3 for 1 forward stock split. The total issued and outstanding shares of the Company’s common stock has been increased from 101,766,666 to 305,299,998 shares, with the par value unchanged at zero. On September 21, 2020, there are 151,500 shares issued at $5 per share to 303 new shareholders, the Company’s common stock issued has been increased to 305,451,498 shares as of December 31, 2020. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
NOTE 13- INCOME TAXES | NOTE 13 - INCOME TAXES The Company is subject to U.S. Federal tax laws. The Company has not recognized an income tax benefit for its operating losses in the United States because the Company does not expect to commence active operations in the United States. UTour Pte Ltd was incorporated in Singapore and is subject to Singapore profits tax at a tax rate of 17%. Since UTour Pte Ltd had no taxable income during the reporting period, it has not paid Singapore profits taxes. UTour has not recognized an income tax benefit for its operating losses in Singapore because the Company does not expect to commence active operations in Singapore. WeTrade Information Technology Limited (“WITL”) was incorporated in Hong Kong and is subject to Hong Kong profits tax at a tax rate of 16.5%. Since WITL had no taxable income during the reporting period, it has not paid Hong Kong profits taxes. WITL has not recognized an income tax benefit for its operating losses in Hong Kong because the Company does not expect to commence active operations in Hong Kong. The Company is currently conducting its major operations in the PRC through Yueshang Information Technology (Beijing) Co., Ltd., Yushang Group (Hunan) Network Technology Limited and Yueshang Technology Group( Hainan) Limited, which are in accordance with the relevant tax laws and regulations and the corporate income tax rate in China is 25%. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 14 - SUBSEQUENT EVENTS | NOTE 14 - SUBSEQUENT EVENTS On January 25, 2021, the Company has provided a short-term loan of RMB 9 million (approximately of USD 1.38 million) to a third party with annual interest of 5%, which will be matured on November 4, 2021. On January 27, 2021, the Company has appointed a third party software company to develop a customized YCloud system to provide auto-billing management, stock management and online payment systems for a PRC tobacco Company. The estimated total development cost of customized YCloud system will be RMB 7 million (approximately of USD 1.08 million), the company has paid RMB 4 million (approximately of USD 0.62 million) for the initial development cost on January 27, 2021. On January 27, 2021, the Company made the payment of RMB 5 million (approximately of USD 0.77 million) for its renovation expenses of new office located in Beijing Economic and Technological Development Zone, Beijing, China. The Company is plan to move the headquarter to the above-mentioned office in July 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of preparation of financial statements | The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements of the Company as of and for the nine months ended September 30, 2021 and 2020 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2021, the results of its operations for the period ended September 30, 2021 and 2020, and its cash flows for the period ended September 30, 2021 and 2020. Operating results for the quarterly periods presented are not necessarily indicative of the results to be expected for a full fiscal year. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period’s presentation. The balance sheet as of December 31, 2020 has been derived from the Company’s audited financial statements included in the Form 10-K for the year ended December 31, 2020. The statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Company’s Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 31, 2020. As of September 30, 2021, the details of the consolidating subsidiaries are as follows: Place of Attributable Name of Company incorporation equity interest % Utour Pte Ltd Singapore 100 % WeTrade Information Technology Limited (“WITL”) Hong Kong 100 % Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C 100 % WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) P.R.C 100 % | The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. As of December 31, 2020, the details of the consolidating subsidiaries are as follows: Place of Attributable Name of Company incorporation equity interest % Utour Pte Ltd Singapore 100 % WeTrade Information Technology Limited (“WITL”) Hong Kong 100 % Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C 100 % |
Nature of Operations | WeTrade Group Inc. (the “Company” or or “We’ or “Us”) is a Wyoming corporation incorporated on March 28, 2019. The Company is an investment holding company that formed as a Wyoming corporation to use as a vehicle for raising equity outside the US. As of September 30, 2021, the nature operation of its subsidiaries are as follows: Place of Nature of Name of Company incorporation operation Utour Pte Ltd Singapore Investment holding company WeTrade Information Technology Limited (“WITL”) Hong Kong Investment holding company Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. Providing of social e-commerce services, technical system support and services Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C Providing of social e-commerce services, technical system support and services Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C Providing of social e-commerce services, technical system support and services WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) P.R.C Providing of social e-commerce services, technical system support and services | |
COVID-19 outbreak | In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. The COVID-19 pandemic has negatively impacted the global economy, workforces, customers, and created significant volatility and disruption of financial markets. It has also disrupted the normal operations of many businesses, including ours. This outbreak could decrease spending, adversely affect demand for our services and harm our business and results of operations. It is not possible for us to predict the duration or magnitude of the adverse results of the outbreak and its effects on our business or results of operations at this time. | |
Revenue recognition | The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts | The Company follows the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts As of December 31, 2020 December 31, 2019 RMB: US$ exchange rate 6.53 6.96 |
Cash and Cash Equivalents | The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in Singapore and PRC is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the PRC, or Singapore. | The Company considers all highly liquid debt instruments purchased with a maturity period of three months or less to be cash or cash equivalents. The carrying amounts reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair value. All of the Company’s cash that is held in bank accounts in Singapore and PRC is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the PRC, or Singapore. |
Foreign Currency | The Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions from the inception to September 30, 2021. September 30, 2021 December 31, 2020 RMB: US$ exchange rate 6.45 6.53 The balance sheet amounts, with the exception of equity, September 30, 2021 and December 31, 2020 were translated at 6.45 RMB and 6.53 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the period ended September 30, 2021 and year ended December 31, 2020 were 6.46 RMB and 6.84 RMB to1.00, respectively. Cash flows were also translated at average translation rates for the year and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The transactions dominated in SGD are immaterial. | The Company’s principal country of operations is the PRC. The accompanying consolidated financial statements are presented in US$. The functional currency of the Company is US$, and the functional currency of the Company’s subsidiaries is RMB. The consolidated financial statements are translated into US$ from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting translation adjustments are recorded as a component of shareholders’ equity included in other comprehensive income. Gains and losses from foreign currency transactions are included in profit or loss. There were no gains and losses from foreign currency transactions from the inception to December 31, 2020. Year ended December 31, 2020 2019 RMB: US$ exchange rate 6.84 7.01 The balance sheet amounts, with the exception of equity, December 31, 2020 and December 31, 2019 were translated at 6.53 RMB and 6.96 RMB to $1.00, respectively. The equity accounts were stated at their historical rates. The average translation rates applied to statements of operations and comprehensive income (loss) accounts for the year ended December 31, 2020 and year ended December 31, 2019 were 6.84 RMB and 7.01 RMB to $1.00, respectively. Cash flows were also translated at average translation rates for the year and, therefore, amounts reported on the statement of cash flows would not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. The transactions dominated in SGD are immaterial. |
Use of Estimate | The preparation of financial statements in conformity with 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 reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in preparing the financial statements are reasonable and prudent; however, actual results could differ from these estimates. Significant estimates include the allowance for doubtful accounts, impairment assessments of goodwill, valuation of deferred tax assets, rebilling collections and certain accrued liabilities such as contingent liabilities. |
Concentration of Risk | Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. Cash on hand amounted to $1,395,025 | |
Accounts receivable | Accounts receivable are presented net of allowance for doubtful accounts. The Group uses specific identification in providing for bad debts when facts and circumstances indicate that collection is doubtful and based on factors listed in the following paragraph. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowance may be required. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability. | |
Intangible Asset | Intangible asset is software development cost incurred by company, it will be amortized on a straight line basis over the estimated useful life of5 years. | Intangible asset is software development cost of YCloud system incurred by the Company, it will be amortized on a straight line basis over the estimated useful life of 5 years. |
Property and Equipment, net | Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. The estimated useful lives of computer and office equipment is 3 years. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets. | |
Leases | The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. Operating leases are included in operating lease right-of-use (“ROU”) assets and short-term and long-term lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, we use the industry incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. | In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. After the new adoption, $2,813,186 of operating lease right-of-use asset and $3,041,463 of operating lease liabilities were reflected on the Company’s December 31, 2020 financial statements. ASU 2016-02 requires that public companies use a secured incremental browning rate for the present value of lease payments when the rate implicit in the contract is not readily determinable. We determine a secured rate on a quarterly basis and update the weighted average discount rate accordingly. Lease terms and discount rate follow: Lease cost In USD Operating lease cost (included in general and admin in company’s statement of operations) $ 217,821 Other information Cash paid for amounts included in the measurement of lease liabilities for the quarter ended 12/31/2020 - Weighted average remaining lease term-operating leases (in years) 4.67 Average discount rate - operating leases 5 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Long -term right-of-use assets 2,813,186 Total right-of-use assets $ 2,813,186 Short-term operating lease liabilities 569,865 Long-term operating lease liabilities 2,471,598 Total operating lease liabilities $ 3,041,463 Maturities of the Company’s lease liabilities are as follows: Year ending December 31, 2021 709,227 2022 690,685 2023 733,273 2024 777,890 2025 513,088 Total lease payments 3,424,163 Less: Imputed interest/present value discount (382,700 ) Present value of lease liabilities $ 3,041,463 |
Income Tax | Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has a subsidiary in Singapore and PRC. The Company is subject to tax in Singapore and PRC jurisdictions. As a result of its future business activities, the Company will be required to file tax returns that are subject to examination by the Inland Revenue Authority of Singapore and Tax Department of PRC. | Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has a subsidiary in Singapore and PRC. The Company is subject to tax in Singapore and PRC jurisdictions. As a result of its future business activities, the Company will be required to file tax returns that are subject to examination by the Inland Revenue Authority of Singapore and Tax Department of PRC. |
Profit Per Share | Basic net income per share of common stock attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common stockholders when their effect is dilutive. Potential dilutive securities are excluded from the calculation of diluted EPS in profit periods as their effect would be anti-dilutive. As of September 30, 2021, there were no potentially dilutive shares. For the period September 30, 2021 For the period September 30, 2020 Statement of Operations Summary Information: Net Profit $ 3,904,385 1,307,126 Weighted-average common shares outstanding - basic and diluted 305,451,498 304,166,073 Net loss per share, basic and diluted $ 0.01 $ 0.00 | Basic net income (loss) per share of common stock attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average shares of common stock outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards, warrants, options, or convertible debt using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income (loss) per share of common stock attributable to common shareholders when their effect is dilutive. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. As of December 31, 2020 and 2019, there were no potentially dilutive shares. 2020 2019 Statement of Operations Summary Information: Net Profit/ (loss) $ 2,675,037 $ (417,407 ) Weighted-average common shares outstanding - basic and diluted 304,166,073 300,222,000 Net loss per share, basic and diluted $ 0.01 $ (0.00 ) |
Fair Value | The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. | The Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The carrying amounts of financial assets such as cash approximate their fair values because of the short maturity of these instruments. |
Commitments and contingencies | On September 16, 2020 the Company entered into lease agreement for a new office space in Beijing. The term of the lease is for a (5) Five Years with first 4 months free on the 1st year of the term and 1st month free of each following years of the term. The monthly rent on the 1st year will be $54,081 with a 6% increase for each subsequent year. Total commitment for the full term of the lease will be $3,424,163. | |
Capital Structure | The Company currently has unlimited authorized shares of $0.00 par value common stock, with 305,451,498 shares issued and outstanding as of December 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of consolidated subsidiaries | Place of Attributable Name of Company incorporation equity interest % Utour Pte Ltd Singapore 100 % WeTrade Information Technology Limited (“WITL”) Hong Kong 100 % Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C 100 % WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) P.R.C 100 % | Place of Attributable Name of Company incorporation equity interest % Utour Pte Ltd Singapore 100 % WeTrade Information Technology Limited (“WITL”) Hong Kong 100 % Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. 100 % Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C 100 % Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C 100 % |
Schedule of investment holding company | Place of Nature of Name of Company incorporation operation Utour Pte Ltd Singapore Investment holding company WeTrade Information Technology Limited (“WITL”) Hong Kong Investment holding company Yueshang Information Technology (Beijing) Co., Ltd. (“YITB”) P.R.C. Providing of social e-commerce services, technical system support and services Yueshang Group Network (Hunan) Co., Limited (“Yueshang Hunan”) P.R.C Providing of social e-commerce services, technical system support and services Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited (“Yueshang Hainan”) P.R.C Providing of social e-commerce services, technical system support and services WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) P.R.C Providing of social e-commerce services, technical system support and services | |
Schedule of exchange rate | September 30, 2021 December 31, 2020 RMB: US$ exchange rate 6.45 6.53 | As of December 31, 2020 December 31, 2019 RMB: US$ exchange rate 6.53 6.96 |
Schedule lease terms and discount rate | Lease cost In USD Operating lease cost (included in general and admin in company’s statement of operations) $ 519,249 Other information Cash paid for amounts included in the measurement of lease liabilities for the nine months ended 9/30/2021 531,539 Weighted average remaining lease term-operating leases (in years) 3.92 Average discount rate - operating leases 5 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Long -term right-of-use assets 2,436,890 Total right-of-use assets $ 2,436,890 Short-term operating lease liabilities 569,060 Long-term operating lease liabilities 2,087,481 Total operating lease liabilities $ 2,656,541 Maturities of the Company’s lease liabilities are as follows: Year ending September 30, 2021 687,891 2022 730,133 2023 775,308 2024 742,160 2025 - Total lease payments 2,935,492 Less: Imputed interest/present value discount (278,951 ) Present value of lease liabilities $ 5,592,033 | Lease cost In USD Operating lease cost (included in general and admin in company’s statement of operations) $ 217,821 Other information Cash paid for amounts included in the measurement of lease liabilities for the quarter ended 12/31/2020 - Weighted average remaining lease term-operating leases (in years) 4.67 Average discount rate - operating leases 5 % The supplemental balance sheet information related to leases for the period is as follows: Operating leases Long -term right-of-use assets 2,813,186 Total right-of-use assets $ 2,813,186 Short-term operating lease liabilities 569,865 Long-term operating lease liabilities 2,471,598 Total operating lease liabilities $ 3,041,463 Maturities of the Company’s lease liabilities are as follows: Year ending December 31, 2021 709,227 2022 690,685 2023 733,273 2024 777,890 2025 513,088 Total lease payments 3,424,163 Less: Imputed interest/present value discount (382,700 ) Present value of lease liabilities $ 3,041,463 |
Schedule of potentially diluted shares | For the period September 30, 2021 For the period September 30, 2020 Statement of Operations Summary Information: Net Profit $ 3,904,385 1,307,126 Weighted-average common shares outstanding - basic and diluted 305,451,498 304,166,073 Net loss per share, basic and diluted $ 0.01 $ 0.00 | 2020 2019 Statement of Operations Summary Information: Net Profit/ (loss) $ 2,675,037 $ (417,407 ) Weighted-average common shares outstanding - basic and diluted 304,166,073 300,222,000 Net loss per share, basic and diluted $ 0.01 $ (0.00 ) |
Schedule of average exchange rate | Year ended December 31, 2020 2019 RMB: US$ exchange rate 6.84 7.01 |
CASH AT BANK (Tables)
CASH AT BANK (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
CASH AT BANK (Tables) | ||
Schedule of cash in bank | September 30, 2021 December 31, 2020 Bank Deposits-China $ 766,079 $ 4,593,943 Bank Deposits-Singapore 628,946 46,660 $ 1,395,025 $ 4,640,603 | December 31, 2020 December 31, 2019 Bank Deposits-China $ 4,593,943 5,000,014 Bank Deposits-Singapore 46,660 1,591,114 4,640,603 6,591,128 |
INTANGIBLE ASSET (Tables)
INTANGIBLE ASSET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSET | ||
Schedule of intangible assets | September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Intangible assets: Software development $ 57,143 $ (7,807 ) $ 49,336 5 Foreign currency translation adjustment - - (7,495 ) Intangible assets, net $ 57,143 $ (7,807 ) $ 41,841 | December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Intangible assets: Software development $ 57,143 $ (11,696 ) $ 45,447 5 Foreign currency translation adjustment - - 3,582 Intangible assets, net $ 57,143 $ (11,696 ) $ 49,029 |
Schedule of intangible assets amortization expenses | Fiscal years: Remaining 2021 $ 3,101 2022 12,412 2023 12,412 Thereafter 12,381 | Fiscal years: Remaining 2020 $ 49,029 2021 36,772 2022 24,515 2023 12,257 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
PROPERTY AND EQUIPMENT (Tables) | |
Schedule of property and equipment | September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Property and equipment: Office equipment $ 150,915 $ (12,557 ) $ 138,358 3 Foreign currency translation adjustment - - (19 ) Property and equipment, net $ 150,915 $ (12,557 ) $ 138,339 |
ACCOUNT RECEIVABLES (Tables)
ACCOUNT RECEIVABLES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
ACCOUNT RECEIVABLES | ||
Schedule of Account receivable | September 30, 2021 December 31, 2020 Services fee receivable $ 6,680,260 $ 2,609,520 $ 6,680,260 $ 2,609,520 | December 31, 2020 December 31, 2019 Account Receivables $ 2,609,520 - |
PREPAYMENTS (Tables)
PREPAYMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
PREPAYMENTS | |
Schedule of Prepayments | September 30, 2021 December 31, 2020 Office furniture $ 2,090,723 $ - Office Rental 181,379 - Block chain software and annual fee 621,402 - Software licenses fee and others 47,590 61,707 $ 2,941,094 $ 61,707 |
NOTE RECEIVABLES (Tables)
NOTE RECEIVABLES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
NOTE RECEIVABLES | ||
Schedule of Note receivables | September 30, 2021 December 31, 2020 Note receivables $ 3,713,228 $ 3,097,981 $ 3,713,228 $ 3,097,981 | December 31, 2020 December 31, 2019 Note receivables 3,097,981 - |
Schedule of accrued interest and principal amount | September 30, 2021 December 31, 2020 Principal $ 3,589,156 $ 3,064,336 Accrued interest 124,072 33,645 $ 3,713,228 $ 3,097,981 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
OTHER RECEIVABLES | ||
Schedule of other receivable | September 30, 2021 December 31, 2020 Prepaid trademark and system set up fee $ - $ 3,318 Staff reserve fund and others 39,242 2,453 $ 39,242 $ 5,771 | December 31, 2020 December 31, 2019 Rental deposit 230,620 - Property management fee deposit 34,290 - Prepaid trademark and system set up fee 3,318 - Others 2,453 - 270,681 - |
AMOUNT DUE TO DIRECTOR (Tables)
AMOUNT DUE TO DIRECTOR (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
AMOUNT DUE TO DIRECTOR (Tables) | ||
Schedule of due to related parties | As of September 30, 2021 As of December 31, 2020 Related parties payable $ 276,500 $ 276,500 Related party loan 140,000 140,000 Director fee payable 252,001 - $ 668,501 $ 416,500 | As of December 31, 2020 As of December 31, 2019 Related parties payable 276,500 254,515 Related party loan 140,000 1,500,000 $ 416,500 1,754,515 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
ACCRUED EXPENSES | |
Schedule of accrued expenses | September 30, 2021 December 31, 2020 Accrued payroll $ 172,086 $ 263,355 $ 172,086 $ 263,355 |
NATURE OF BUSINESS (Details Nar
NATURE OF BUSINESS (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Shareholders [Member] | ||
Management service descriptions | We provide technology services to both individual and corporate users. Through Yueshang Beijing, we provide “YCloud” service to our customer, Zhuozhou Weijiafu Information Technology Limited, or Weijiafu, a PRC technology company, which provide “YCloud” services to individual and corporate micro-business owners. The market individual micro-business owners represents a potential of 330 million users by the year of 2023. YCloud serves corporate users in multiple industries, including Yuetao Group, Zhiding, Lvyue, Yuebei, Yuedian, Coke GO, and Zhongyanshangyue. We conduct business operations in mainland China and have established trial operations in Hong Kong, the Philippines, and Singapore. We expect to utilize the YCloud system to establish a global strategic cooperation with various social media platforms. Plan to negotiate with Kakao Talk, Line, Whatsapp, Ohho, and Bluechat. Additionally, we have formed long-term technical collaborations with Yuetao App, Daren App, Yuebei App, Zhiding App, Yuedian App, and Lvyue App through Weijiafu. | |
Third Party [Member] | ||
Management service descriptions | We provide technology services to both individual and corporate users. Through Yueshang Beijing, we provide “YCloud” service to our sole customers, Zhuozhou Weijiafu Information Technology Limited (“Weijiafu”), a PRC technology company, which provide “YCloud” services to individual and corporate micro-business owners. The market individual micro-business owners represents a potential of 330 million users by the year of 2023 | |
RMB [Member] | ||
Payment services | $ 62,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Yueshang Information Technology (Beijing) Co., Ltd. ("YITB") [Member] | ||
Attributable equity interest | 100.00% | 100.00% |
Place of incorporation | P.R.C. | P.R.C. |
Utour Pte Ltd [Member] | ||
Attributable equity interest | 100.00% | 100.00% |
Place of incorporation | Singapore | Singapore |
WeTrade Information Technology Limited [Member] | ||
Attributable equity interest | 100.00% | 100.00% |
Place of incorporation | Hong Kong | Hong Kong |
Yueshang Group Network (Hunan) Co., Limited ("Yueshang Hunan") [Member] | ||
Attributable equity interest | 100.00% | 100.00% |
Place of incorporation | P.R.C | P.R.C |
Yueshang Technology Group (Hainan Special Economic Zone) Co. Limited ("Yueshang Hainan") [Member] | ||
Attributable equity interest | 100.00% | 100.00% |
Place of incorporation | P.R.C | P.R.C |
WeTrade Digital (Beijing) Technology Co Limited (FKA: XiaoShang Technology Beijing Co Limited) [Member] | ||
Attributable equity interest | 100.00% | |
Place of incorporation | P.R.C |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
RMB [Member] | |||
Exchange rate | 6.45 | 6.53 | 6.96 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RMB [Member] | ||
Average exchange rate | 6.84 | 7.01 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Operating lease cost (included in general and admin in company's statement of operations) | $ 519,249 | $ 217,821 |
Other information : | ||
Cash paid for amounts included in the measurement of lease liabilities for the nine months ended 9/30/2021 | $ 531,539 | $ 0 |
Weighted average remaining lease term-operating leases (in years) | 3 years 11 months 1 day | 4 years 8 months 1 day |
Operating leases | ||
Average discount rate - operating leases | 5.00% | 5.00% |
Long -term right-of-use assets | $ 2,436,890 | $ 2,813,186 |
Total right-of-use assets | 2,436,890 | 2,813,186 |
Short-term operating lease liabilities | 569,060 | 569,865 |
Long-term operating lease liabilities | 2,087,481 | 2,471,598 |
Total operating lease liabilities | 2,656,541 | 3,041,463 |
Maturities of the Company's lease liabilities are as follows: | ||
2021 | 687,891 | 709,227 |
2022 | 730,133 | 690,685 |
2023 | 775,308 | 733,273 |
2024 | 742,160 | 777,890 |
2025 | 0 | 513,088 |
Total lease payments | 2,935,492 | 3,424,163 |
Less: Imputed interest/present value discount | (278,951) | (382,700) |
Present value of lease liabilities | $ 5,592,033 | $ 3,041,463 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Operations Summary Information: | ||||||||
Net Income | $ 1,410,271 | $ 740,892 | $ 3,904,385 | $ 1,307,126 | $ (417,407) | $ (417,407) | $ 2,675,037 | $ (417,407) |
Weighted-average common shares outstanding - basic and diluted | 305,451,498 | 308,704,888 | 305,451,498 | 304,166,073 | 300,222,000 | 304,166,073 | 300,222,000 | |
Net loss per share, basic and diluted | $ 0.01 | $ 0 | $ 0.01 | $ 0 | $ 0 | $ 0.01 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 16, 2020USD ($) | Sep. 30, 2021USD ($)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | |
Common stock shares outstanding | shares | 305,451,498 | 305,451,498 | 300,222,000 | |
Common stock shares issued | shares | 305,451,498 | 305,451,498 | 300,222,000 | |
Common stock value | $ / shares | $ 0 | |||
Monthly rent | $ 54,081 | |||
Lease expense | $ 3,424,163 | |||
Cash on hand | $ 1,395,025 | |||
Operating lease right-of-use asset | $ 2,436,890 | $ 2,813,186 | $ 0 | |
Tax benefit rate | 50.00% | 50.00% | ||
Operating lease liabilities | $ 2,656,541 | $ 3,041,463 | ||
Foreign Currency Translation Adjustment [Member] | ||||
Exchange rate | 6.45 | 6.53 | ||
Average exchange rate | 6.46 | 6.84 | ||
Comprehensive income (loss) | $ 1 | $ 1 | ||
RMB [Member] | ||||
Exchange rate | 6.45 | 6.53 | 6.96 | |
Average exchange rate | 6.84 | 7.01 | ||
5 non-US shareholders [Member] | ||||
Intangible assets, estimated useful lives | 5 years | |||
Intangible assets, amortization method | straight line basis | |||
Computer and Office equipment [Member] | ||||
Intangible assets, estimated useful lives | 3 years | |||
Software developments [Member] | ||||
Intangible assets, estimated useful lives | 5 years | |||
Intangible assets, amortization method | straight line basis | straight line basis |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Service revenue, non-related party | $ 4,598,675 | $ 518,269 | $ 11,262,491 | $ 518,269 | $ 0 | $ 3,440,312 |
Hainan Changtongfu [Member] | ||||||
Sales contribution percentage | 30.60% | |||||
Global Joy [Member] | ||||||
Sales contribution percentage | 82.10% | |||||
Weijiafu [Member] | ||||||
Sales contribution percentage | 69.40% | 17.90% | ||||
Accumulated other comprehensive loss | ||||||
System services fees from related party, description | We receive 3.5% of the total Gross Merchandise Volume generated in the platform as a service fee through our agreement with our customers (such as Weijiafu and Hainan Changtongfu), depending on the type of service and industry. Gross Merchandise Volume, or GMV, is a term used in online retailing to indicate a total sales monetary-value for merchandise sold through a particular marketplace over a certain time frame. We generally settle the service fee with customers within the first ten days of each calendar month. | We receive 2%-3.5% of the total Gross Merchandise Volume generated in the platform as a service fee through our agreement with Weijiafu, depending on the type of service and industry | ||||
Service revenue, related party | $ 11,262,491 | $ 0 | $ 2,831,252 |
CASH AT BANK (Details)
CASH AT BANK (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Bank Deposits | $ 1,395,025 | $ 4,640,603 | $ 6,591,128 |
Services fee receivable [Member] | |||
Bank Deposits | 46,660 | ||
China [Member] | |||
Bank Deposits | 766,079 | 4,593,943 | 5,000,014 |
Singapore [Member] | |||
Bank Deposits | $ 628,946 | $ 46,660 | $ 1,591,114 |
CASH AT BANK (Details Narrative
CASH AT BANK (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Mar. 27, 2019 |
CASH AT BANK (Details Narrative) | |||||
Bank Deposits | $ 1,395,025 | $ 4,640,603 | $ 6,787,535 | $ 6,591,128 | $ 0 |
INTANGIBLE ASSET (Details)
INTANGIBLE ASSET (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible assets, gross carrying amount | $ 57,143 | $ 57,143 | |
Intangible assets, accumulated amortization | (7,807) | (11,696) | |
Intangible assets, net carrying amount | 41,841 | 49,029 | $ 0 |
Foreign Currency Translation Adjustment [Member] | |||
Intangible assets, gross carrying amount | 0 | 0 | |
Intangible assets, accumulated amortization | 0 | 0 | |
Intangible assets, net carrying amount | (7,495) | 3,582 | |
Software developments [Member] | |||
Intangible assets, gross carrying amount | 57,143 | 57,143 | |
Intangible assets, accumulated amortization | (7,807) | (11,696) | |
Intangible assets, net carrying amount | $ 49,336 | $ 45,447 | |
Intangible assets, weighted average useful lives | 5 years | 5 years |
INTANGIBLE ASSET (Details 1)
INTANGIBLE ASSET (Details 1) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Fiscal years: | ||
Remaining 2020 | $ 49,029 | |
Remaining of 2021 | $ 3,101 | 36,772 |
2022 | 12,412 | 24,515 |
2023 | 12,412 | $ 12,257 |
Thereafter | $ 12,381 |
INTANGIBLE ASSET (Details Narra
INTANGIBLE ASSET (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Intangible assets, amortization expense | $ (7,807) | $ 0 | $ 0 | $ (11,696) |
Software developments [Member] | ||||
Intangible assets, estimated useful lives | 5 years | 5 years | ||
Intangible assets, amortization method | straight line basis | straight line basis |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property and equipment, Gross carrying amount, Gross carrying amount | $ 150,915 | |
Property and equipment, Net carrying amount | 138,339 | $ 0 |
Property and equipment, Accumulated amortization | (12,557) | |
Foreign Currency Translation Adjustment [Member] | ||
Property and equipment, Gross carrying amount, Gross carrying amount | 0 | |
Property and equipment, Net carrying amount | (19) | |
Property and equipment, Accumulated amortization | 0 | |
Software developments [Member] | ||
Property and equipment, Gross carrying amount, Gross carrying amount | 150,915 | |
Property and equipment, Net carrying amount | 138,358 | |
Property and equipment, Accumulated amortization | $ (12,557) | |
Property and equipment, Weighted average useful lives | 3 years |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT (Tables) | ||
Depreciation expenses | $ 12,557 | $ 0 |
ACCOUNT RECEIVABLES (Details)
ACCOUNT RECEIVABLES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable [Member] | |||
Accounts Receivables | $ 6,680,260 | $ 2,609,520 | |
Services fee receivable [Member] | |||
Accounts Receivables | $ 6,680,260 | $ 2,609,520 | $ 0 |
ACCOUNT RECEIVABLES (Details Na
ACCOUNT RECEIVABLES (Details Narrative) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Weijafu [Member] | ||
Accounts Receivables | 65.40% | 53.40% |
Hainan [Member] | ||
Accounts Receivables | 34.60% | |
Global Joy Co Ltd [Member] | ||
Accounts Receivables | 46.50% |
PREPAYMENTS (Details)
PREPAYMENTS (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Prepayments | $ 2,941,094 | $ 61,707 |
Office Rental [Member] | ||
Prepayments | 181,379 | 0 |
Software licenses fee and others [Member] | ||
Prepayments | 47,590 | 61,707 |
Office Furniture [Member] | ||
Prepayments | 2,090,723 | 0 |
Block chain software and annual fee [Member] | ||
Prepayments | $ 621,402 | $ 0 |
NOTE RECEIVABLES (Details)
NOTE RECEIVABLES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Note receivables | $ 3,713,228 | $ 3,097,981 | $ 0 |
Accounts Receivable [Member] | |||
Note receivables | $ 3,713,228 | $ 3,097,981 | $ 0 |
NOTE RECEIVABLES (Details 1)
NOTE RECEIVABLES (Details 1) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
ACCOUNT RECEIVABLES | ||
Principal | $ 3,589,156 | $ 3,064,336 |
Accrued interest | 124,072 | 33,645 |
Total | $ 3,713,228 | $ 3,097,981 |
NOTE RECEIVABLES (Details Narra
NOTE RECEIVABLES (Details Narrative) ¥ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | |
NOTE RECEIVABLES | |||
Note receivable from related party | ¥ | ¥ 30 | ¥ 20 | |
Annual interest percentage | 5.00% | 5.00% | |
Accrued interest | $ | $ 33,646 | ||
Maturity date | Nov. 4, 2021 | Nov. 4, 2021 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
OTHER RECEIVABLES | |||
Rental deposit | $ 230,620 | $ 0 | |
Property management fee deposit | 34,290 | 0 | |
Prepaid trademark and system set up fee | $ 0 | 3,318 | 0 |
Staff reserve fund and others | 39,242 | 2,453 | 0 |
Other receivable | $ 39,242 | $ 5,771 | $ 0 |
RENTAL DEPOSIT (Details Narrati
RENTAL DEPOSIT (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
RENTAL DEPOSIT (Details Narrative) | ||
Rental deposits | $ 268,226 | $ 264,910 |
Tenancy period | 5 years |
AMOUNT DUE TO DIRECTOR (Details
AMOUNT DUE TO DIRECTOR (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Mar. 02, 2020 | Jan. 21, 2020 | Dec. 31, 2019 |
AMOUNT DUE TO DIRECTOR (Tables) | |||||
Related parties payable | $ 276,500 | $ 276,500 | $ 254,515 | ||
Related party loan | 140,000 | 140,000 | $ 710,000 | $ 650,000 | 1,500,000 |
Director fee payable | 252,001 | 0 | |||
Amount due to related parties | $ 668,501 | $ 416,500 | $ 1,754,515 |
AMOUNT DUE TO DIRECTOR (Detai_2
AMOUNT DUE TO DIRECTOR (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Mar. 02, 2020 | Jan. 21, 2020 | Dec. 31, 2019 |
Amount due to related parties | $ 668,500 | $ 416,500 | $ 1,754,515 | ||
Related party loan | 140,000 | 140,000 | $ 710,000 | $ 650,000 | 1,500,000 |
Related party payable | 276,500 | 276,500 | $ 254,515 | ||
Dai Zheng [Member] | |||||
Related party loan | 140,000 | 140,000 | |||
Che Kean Tat [Member] | |||||
Related party payable | 10,000 | 10,000 | |||
Director [Member] | |||||
Related party loan | 224,500 | 224,500 | |||
Related party payable | 276,500 | 276,500 | |||
Li Zhuo [Member] | |||||
Related party payable | $ 42,000 | $ 42,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued expenses | $ 172,086 | $ 263,355 |
Accrued Payroll [Member] | ||
Accrued expenses | $ 172,086 | $ 263,355 |
ACCRUED EXPENSES (Details Narra
ACCRUED EXPENSES (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ACCRUED EXPENSES | |||
Accrued expenses | $ 172,086 | $ 263,355 | $ 32,000 |
TAX PAYABLES (Details Narrative
TAX PAYABLES (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
TAX PAYABLES | ||
VAT rate | 6.00% | 6.00% |
Tax payables | $ 150,709 | $ 828,695 |
Statutory income tax rates | 25.00% | 25.00% |
OTHER PAYABLES (Details Narrati
OTHER PAYABLES (Details Narrative) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
OTHER PAYABLES | ||
Other payables | $ 851,195 | $ 90,632 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Income tax rate | 6.00% | 6.00% |
China [Member] | ||
Income tax rate | 25.00% | |
Hong Kong [Member] | ||
Income tax rate | 16.50% | |
Singapore [Member] | ||
Income tax rate | 17.00% |
SHAREHOLDERS EQUITY (DEFICIT) (
SHAREHOLDERS EQUITY (DEFICIT) (Details Narrative) | Jul. 10, 2020integer$ / sharesshares | Sep. 03, 2019$ / sharesshares | Sep. 21, 2020integer$ / sharesshares | Sep. 15, 2020shares | Feb. 29, 2020integer$ / sharesshares | Sep. 30, 2021shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019shares |
Description of issuance | 74,000 shares at $3 each to 5 non-US shareholders | |||||||
Common stock, shares issued | 305,451,498 | 305,451,498 | ||||||
Total outstanding shares | 305,451,498 | 305,451,498 | ||||||
Minimum [Member] | ||||||||
Increase in common stock outstanding | 305,299,998 | |||||||
Maximum [Member] | Certificate Of Amendment [Member] | ||||||||
Increase in common stock outstanding | 305,299,998 | |||||||
Stock split, description | 3 for 1 forward stock split | |||||||
5 non-US shareholders [Member] | ||||||||
Common stock, shares issued | 74,000 | |||||||
Total outstanding shares | 100,074,000 | |||||||
Per share value | $ / shares | $ 3 | |||||||
Founders [Member] | ||||||||
Common stock, shares issued | 100,074,000 | 100,000,000 | ||||||
Per share value | $ / shares | $ 0 | |||||||
Number of founders | thirty-three | thirty-three | ||||||
Shareholders [Member] | ||||||||
Common stock, shares issued | 26,000 | 151,500 | 1,666,666 | |||||
Number of shareholder | integer | 2 | 303 | 2 | |||||
Per share value | $ / shares | $ 3 | $ 305,299,998 | $ 3 | |||||
Increase in common stock outstanding | 101,766,666 | 305,451,498 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | |
Jan. 27, 2021 | Jan. 25, 2021 | |
Third Party [Member] | ||
Short-term loan | $ 1,380 | |
Annual interest rate | 5.00% | |
Maturity date | Nov. 4, 2021 | |
YCloud System[Member] | China [Member] | ||
Expenses paid by company | $ 620 | |
Renovation expenses | 770 | |
Development cost | $ 1,080 |