Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 11, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Fovea Jewelry Holdings Ltd. | |
Entity Central Index Key | 0000850971 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Entity Common Stock Shares Outstanding | 10,161,039 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Current asset: | ||
Cash and cash equivalents | $ 49,465 | $ 31,380 |
Total current asset | 49,465 | 31,380 |
Non-current asset: | ||
Plant and equipment | 32,258 | 35,957 |
TOTAL ASSETS | 81,723 | 67,337 |
Current liabilities: | ||
Accrued liabilities and other payables | 18,236 | 30,643 |
Income tax payable | 0 | 235 |
Deferred tax liabilities | 5,322 | 5,933 |
Total current liabilities | 23,558 | 36,811 |
TOTAL LIABILITIES | 23,558 | 36,811 |
Commitments and contingencies | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Preferred stock value | 0 | 0 |
Common stock, $0.001 par value; 2,000,000,000 shares authorized; 10,161,039 and 10,161,039 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 10,161 | 10,161 |
Accumulated other comprehensive (loss) income | (15,982) | 369 |
Retained earnings | 62,986 | 18,996 |
Stockholders' equity | 58,165 | 30,526 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 81,723 | 67,337 |
Preferred Stock Series A [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock value | $ 1,000 | $ 1,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 10,161,039 | 10,161,039 |
Common stock, shares outstanding | 10,161,039 | 10,161,039 |
Preferred Stock Series A [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, shares par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) | ||||
Revenue, net | $ 282,165 | $ 83,289 | $ 400,065 | $ 83,289 |
Cost of revenue | (245,176) | (44,703) | (333,123) | (44,703) |
Gross profit | 36,989 | 38,586 | 66,942 | 38,586 |
Operating expenses: | ||||
General and administrative expenses | (7,147) | (2,678) | (23,590) | (2,678) |
Total operating expenses | (7,147) | (2,678) | (23,590) | (2,678) |
INCOME BEFORE INCOME TAXES | 29,842 | 35,908 | 43,352 | 35,908 |
Income tax credit | 638 | 0 | 638 | 0 |
NET INCOME | 30,480 | 35,908 | 43,990 | 35,908 |
Other comprehensive income (loss): | ||||
- Foreign currency adjustment gain (loss) | 1,626 | 141 | (16,351) | 141 |
COMPREHENSIVE INCOME | $ 32,106 | $ 36,049 | $ 27,639 | $ 36,049 |
Net income per share - Basic and Diluted | $ 0.003 | $ 0.004 | $ 0.003 | $ 0.004 |
Weighted average common shares outstanding | ||||
- Basic and Diluted | 10,161,039 | 10,161,039 | 10,161,039 | 10,161,039 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flow from operating activities: | ||
Net income | $ 43,990 | $ 35,908 |
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | ||
Depreciation of plant and equipment | 3,866 | 0 |
Change in operating assets and liabilities: | ||
Accrued liabilities and other payables | (12,642) | 0 |
Deposits and prepayment | 0 | (25,602) |
Inventories | 0 | (11,807) |
Income tax payable | (638) | 0 |
Net cash generated from (used in) operating activities | 34,576 | (1,501) |
Cash flow from financing activities: | ||
Capital injection from shareholder | 0 | 70,638 |
Net cash generated from financing activities | 0 | 70,638 |
Foreign currency translation adjustment | (16,491) | 141 |
Net change in cash and cash equivalents | 18,085 | 69,278 |
BEGINNING OF PERIOD | 31,380 | 100 |
END OF PERIOD | 49,465 | 69,378 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (Unaudited) - USD ($) | Total | Series A Preferred Stock | Common Stock | Accumulated other comprehensive income (loss) | (Accumulated Losses) Retained Earnings |
Balance, shares at Dec. 31, 2018 | 1,000,000 | 10,161,039 | |||
Balance, amount at Dec. 31, 2018 | $ (7,543) | $ 1,000 | $ 10,161 | $ 0 | $ (18,704) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 |
Net income for the period | 0 | $ 0 | $ 0 | 0 | |
Balance, shares at Mar. 31, 2019 | 1,000,000 | 10,161,039 | |||
Balance, amount at Mar. 31, 2019 | (7,543) | $ 1,000 | $ 10,161 | 0 | (18,704) |
Balance, shares at Dec. 31, 2018 | 1,000,000 | 10,161,039 | |||
Balance, amount at Dec. 31, 2018 | (7,543) | $ 1,000 | $ 10,161 | 0 | (18,704) |
Net income for the period | 35,908 | ||||
Balance, shares at Jun. 30, 2019 | 1,000,000 | 10,161,039 | |||
Balance, amount at Jun. 30, 2019 | 28,506 | $ 1,000 | $ 10,161 | 141 | 17,204 |
Balance, shares at Mar. 31, 2019 | 1,000,000 | 10,161,039 | |||
Balance, amount at Mar. 31, 2019 | (7,543) | $ 1,000 | $ 10,161 | 0 | (18,704) |
Foreign currency translation adjustment | 141 | 0 | 0 | 141 | 0 |
Net income for the period | 35,908 | $ 0 | $ 0 | 0 | 35,908 |
Balance, shares at Jun. 30, 2019 | 1,000,000 | 10,161,039 | |||
Balance, amount at Jun. 30, 2019 | 28,506 | $ 1,000 | $ 10,161 | 141 | 17,204 |
Balance, shares at Dec. 31, 2019 | 1,000,000 | 10,161,039 | |||
Balance, amount at Dec. 31, 2019 | 30,526 | $ 1,000 | $ 10,161 | 369 | 18,996 |
Foreign currency translation adjustment | (17,977) | 0 | 0 | (17,977) | 0 |
Net income for the period | 13,510 | $ 0 | $ 0 | 0 | 13,510 |
Balance, shares at Mar. 31, 2020 | 1,000,000 | 10,161,039 | |||
Balance, amount at Mar. 31, 2020 | 26,059 | $ 1,000 | $ 10,161 | (17,608) | 32,506 |
Balance, shares at Dec. 31, 2019 | 1,000,000 | 10,161,039 | |||
Balance, amount at Dec. 31, 2019 | 30,526 | $ 1,000 | $ 10,161 | 369 | 18,996 |
Net income for the period | 43,990 | ||||
Balance, shares at Jun. 30, 2020 | 1,000,000 | 10,161,039 | |||
Balance, amount at Jun. 30, 2020 | 58,165 | $ 1,000 | $ 10,161 | (15,982) | 62,986 |
Balance, shares at Mar. 31, 2020 | 1,000,000 | 10,161,039 | |||
Balance, amount at Mar. 31, 2020 | 26,059 | $ 1,000 | $ 10,161 | (17,608) | 32,506 |
Foreign currency translation adjustment | 1,626 | 0 | 0 | 1,626 | 0 |
Net income for the period | 30,480 | $ 0 | $ 0 | 0 | 30,480 |
Balance, shares at Jun. 30, 2020 | 1,000,000 | 10,161,039 | |||
Balance, amount at Jun. 30, 2020 | $ 58,165 | $ 1,000 | $ 10,161 | $ (15,982) | $ 62,986 |
DESCRIPTION OF BUSINESS AND ORG
DESCRIPTION OF BUSINESS AND ORGANIZATION | 6 Months Ended |
Jun. 30, 2020 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | |
NOTE 1 - DESCRIPTION OF BUSINESS AND ORGANIZATION | Fovea Jewelry Holdings, Ltd (the “Company” or “FJHL”) was originally founded on February 1, 2006 as Dycam, Inc. In March 2006, the Company changed its name to Mekju Processing, Inc. In November 2006, the Company changed its name to Auxium Technologies, Inc. In November 2014, the Company changed its name to Pure Hospitality Solutions, Inc. On November 2, 2015, the Company changed its name to Wincash Resources, Inc. In early 2018, the Board of Directors of the Company deemed it in the best interests of the Company and its shareholders to switch directions and become involved in the business of the collection and ultimately the sale of diamond jewelry. Effective September 26, 2018, the Company changed its name from Wincash Resources, Inc. to Fovea Jewelry Holdings, Ltd. The Financial Industry Regulatory Authority and the OTC Markets Group, Inc. recognized the name change on February 3, 2018. Further, in connection with changing its name, the Company changed its trading symbol to FJHL. As a result of the change in business, the Company redomiciled from Nevada to Wyoming on March 4, 2019. Currently, the Company through its subsidiary, mainly commenced to operate an online store to sell the quality jewelry at affordable prices on www.fovea-jewellery.com. The goal is to “Deliver A Better Living”. All products selling on the online store are with great quality, natural, socially responsible and niche. This business was commenced its operation in Hong Kong from January 1, 2019. On March 6, 2020, the Company approved by the state government of Wyoming and effectuated a 1 for 10,000 reverse stock split. The number of authorized shares remains unchanged. All share and per share information in this financial statements and footnotes have been retroactively adjusted for all periods presented, unless otherwise indicated, to give effect to the reverse stock split. On March 20, 2020, the Company consummated the Share Exchange Transaction among Gold Shiny International Limited (“GSIL”) and its shareholders. The Company acquired all of the issued and outstanding shares of GSIL from GSIL’s shareholders, in exchange for 10,000,000 shares of the issued and outstanding common stock. Upon completion of the Share Exchange Transaction, GSIL became a 100% owed subsidiary of the Company. Prior to the acquisition, the Company was considered as a shell company due to its nominal assets and limited operation. Upon the acquisition, GSIL will comprise the ongoing operations of the combined entity, GSIL is deemed to be the accounting acquirer for accounting purposes. The transaction will be treated as a recapitalization of the Company. Accordingly, the consolidated assets, liabilities and results of operations of the Company will become the historical financial statements of GSIL, and the Company’s assets, liabilities and results of operations will be consolidated with GSIL beginning on the acquisition date. GSIL was the legal acquiree but deemed to be the accounting acquirer. The Company was the legal acquirer but deemed to be the accounting acquiree in the reverse merger. The historical financial statements prior to the acquisition are those of the accounting acquirer (GSIL). Historical stockholders’ equity of the accounting acquirer prior to the merger are retroactively restated (a recapitalization) for the equivalent number of shares received in the merger. Operations prior to the merger are those of the acquirer. After completion of the share exchange transaction, the Company’s consolidated financial statements include the assets and liabilities, the operations and cash flow of the accounting acquirer. Description of subsidiaries Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars of registered/ paid up share capital Effective interest held Fovea International Holdings Limited British Virgin Islands Investment holding 100 ordinary shares at par value of US$1 100 % Fovea Jewellery Holdings Limited Hong Kong Sales and marketing in Hong Kong 1 ordinary share at par value of HK$1 100 % Gold Shiny International Limited British Virgin Islands Investment holding 115 ordinary shares at par value of US$1 100 % Gold Shiny (Asia) Limited Hong Kong Sales and marketing in Hong Kong 1 ordinary share at par value of HK$1 100 % The Company and its subsidiaries are hereinafter referred to as (the “Company”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying condensed consolidated financial statements and notes. · Basis of presentation These accompanying condensed consolidated financial statements have been prepared in U.S. Dollars in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the interim period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis, and the financial statements and notes thereto included in the Company’s Form 10/A for the fiscal year ended December 31, 2019, filed with the SEC on May 1, 2020. · Use of estimates and assumptions In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. · Basis of consolidation The condensed consolidated financial statements include the accounts of FJHL and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. · Cash and cash equivalents Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. · Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful lives Computer equipment 5 years Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Depreciation expense for the three months ended June 30, 2020 and 2019 were $1,933 and $0, respectively. Depreciation expense for the six months ended June 30, 2020 and 2019 were $3,866 and $0, respectively. · Revenue recognition The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized in its condensed consolidated financial statements. Under ASU 2014-09, the Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. · Cost of revenue Cost of revenue consists primarily of the cost of goods sold, which are directly attributable to the sales of products. · Income taxes The Company adopted the ASC 740 Income tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. · Uncertain tax positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the six months ended June 30, 2020 and 2019. · Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations. The reporting currency of the Company is United States Dollar (“US$”) and the accompanying condensed consolidated financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong and maintain its books and record in its local currency, Hong Kong Dollars (“HKD”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from HKD into US$ has been made at the following exchange rates for the period ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Period-end HKD:US$ exchange rate 0.12903 0.12842 Period average HKD:US$ exchange rate 0.12885 0.12764 · ASC Topic 220, “ Comprehensive Income · Segment reporting ASC Topic 280, “ Segment Reporting · Related parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. · Commitments and contingencies The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. · Fair value of financial instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments. · Recent accounting pronouncements In January 2017, the Financial Accounting Standard Board (“FASB”) issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 6 Months Ended |
Jun. 30, 2020 | |
GOING CONCERN UNCERTAINTIES | |
NOTE 3 - GOING CONCERN UNCERTAINTIES | The Company’s condensed consolidated financial statements as of June been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. These raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. In addition, with respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international and U.S. economies and markets and if repercussions of the outbreak are prolonged, could have a significant adverse impact on the Company’s business. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital and the continued financial support from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. Management believes the Company is currently pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
STOCKHOLDERS' EQUITY | |
NOTE 4 - STOCKHOLDERS' EQUITY | Authorised shares As of June 30, 2020 and December 31, 2019, the Company’s authorised shares were 5,000,000 shares of preferred stock, with a par value of $0.001. As of June 30, 2020 and December 31, 2019, the Company’s authorised shares were 2,000,000,000 and 499,000,000 shares of common stock, with a par value of $0.001, respectively. Issued and outstanding shares As of June 30, 2020 and December 31, 2019, the Company had 1,000,000 shares of Series A preferred stock issued and outstanding. On March 6, 2020, the Company approved by the state government of Wyoming and effectuated a 1 for 10,000 reverse stock split. The number of authorized shares remains unchanged. All share and per share information in this financial statements and footnotes have been retroactively adjusted for all periods presented, unless otherwise indicated, to give effect to the reverse stock split. On March 20, 2020, the Company consummated the Share Exchange Transaction among Gold Shiny International Limited (“GSIL”) and its shareholders and issued 10,000,000 shares of common stock in exchange for 100% equity interest of GSIL. Upon completion of the Share Exchange Transaction, GSIL became a 100% owed subsidiary of the Company. As of June 30, 2020 and December 31, 2019, the Company had 10,161,039 and 10,161,039 shares of common stock issued and outstanding, respectively. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
INCOME TAXES | |
NOTE 5 - INCOME TAXES | The provision for income taxes consisted of the following: Six months ended June 30, 2020 2019 Current tax $ - $ - Deferred tax (638 ) - Income tax (credit) expense $ (638 ) $ - The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company mainly operates in Hong Kong that is subject to taxes in the jurisdictions in which they operate, as follows: United States of America FJHL is registered in the State of Wyoming and is subject to the tax laws of United States of America. For the six months ended June 30, 2020 and 2019, there was no operation in the United States of America. BVI Under the current BVI law, the Company is not subject to tax on income. Hong Kong The Company’s subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. The reconciliation of income tax rate to the effective income tax rate for the six months ended June 30, 2020 and 2019 is as follows: Six months ended June 30, 2020 2019 Income before income taxes $ 43,352 $ 35,908 Statutory income tax rate 16.5 % 16.5 % Income tax expense at statutory rate 7,153 5,925 Tax effect of non-deductible items 106 - Tax effect of tax holiday (7,259 ) (5,925 ) Income tax credit/(expense) $ - $ - The following table sets forth the significant components of the deferred tax liabilities of the Company as of June 30, 2020 and December 31, 2019: June 30, December 31, 2020 2019 Deferred tax liabilities: Accelerated depreciation $ 5,322 $ 5,933 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2020 | |
RELATED PARTY TRANSACTIONS | |
NOTE 6 - RELATED PARTY TRANSACTIONS | Apart from the transactions and balances detailed elsewhere in these accompanying condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 6 Months Ended |
Jun. 30, 2020 | |
GOING CONCERN UNCERTAINTIES | |
NOTE 7 - CONCENTRATIONS OF RISK | The Company is exposed to the following concentrations of risk: (a) Major customers For the six months ended June 30, 2020, two customersrepresented more than 10% of the Company’s revenue. These customers accounted for 69% and 12%, respectively, of the Company’s revenuewith no accounts receivable at June 30, 2020. For the three months ended June 30, 2020, one customer represented more than 10% of the Company’s revenue. This customer accounted for 98% of the Company’s revenue with no accounts receivable at June 30, 2020. For the three and six months ended June 30, 2019, there was no single customer represented more than 10% of the Company’s revenue. All of the Company’s customers are located in Hong Kong. (b) Major vendor For the six months ended June 30, 2020, two customers represented more than 10% of the Company’s operating cost. These vendors accounted for 73% and 27%, respectively, of the Company’s operating cost with no accounts payable at June 30, 2020. For the three months ended June 30, 2020, one vendor represented more than 10% of the Company’s operating cost. This vendor accounted for 100% of the Company’s operating cost with no accounts payable atJune 30, 2020. For the three and six months ended June 30, 2019, there was one vendor represented more than 10% of the Company’s operating cost. This vendor accounted for 100% of the Company’s operating cost with no accounts payable at June 30, 2020. The Company’s vendor is located in Hong Kong. (c) Economic and political risk The Company’s major operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in Hong Kong, as well as the general state of Hong Kong’s economy may influence the Company’s business, financial condition, and results of operations. (d) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HKD converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
COMMITEMENT AND CONTIGENCIES
COMMITEMENT AND CONTIGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
COMMITEMENT AND CONTIGENCIES | |
NOTE 8 - COMMITMENTS AND CONTIGENCIES | As of June 30, 2020, the Company has no material commitments or contingencies. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 9 - SUBSEQUENT EVENTS | In accordance with ASC Topic 855, “ Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | These accompanying condensed consolidated financial statements have been prepared in U.S. Dollars in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the interim period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis, and the financial statements and notes thereto included in the Company’s Form 10/A for the fiscal year ended December 31, 2019, filed with the SEC on May 1, 2020. |
Use of estimates and assumptions | In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Basis of consolidation | The condensed consolidated financial statements include the accounts of FJHL and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Cash and Cash Equivalents | Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Plant and equipment | Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful lives Computer equipment 5 years Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations. Depreciation expense for the three months ended June 30, 2020 and 2019 were $1,933 and $0, respectively. Depreciation expense for the six months ended June 30, 2020 and 2019 were $3,866 and $0, respectively. |
Revenue recognition | The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) using the full retrospective transition method. The Company’s adoption of ASU 2014-09 did not have a material impact on the amount and timing of revenue recognized in its condensed consolidated financial statements. Under ASU 2014-09, the Company recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. |
Cost of revenue | Cost of revenue consists primarily of the cost of goods sold, which are directly attributable to the sales of products. |
Income Taxes | The Company adopted the ASC 740 Income tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. |
Uncertain tax positions | The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the six months ended June 30, 2020 and 2019. |
Foreign currencies translation | Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations. The reporting currency of the Company is United States Dollar (“US$”) and the accompanying condensed consolidated financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong and maintain its books and record in its local currency, Hong Kong Dollars (“HKD”), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiary whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement Translation of amounts from HKD into US$ has been made at the following exchange rates for the period ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Period-end HKD:US$ exchange rate 0.12903 0.12842 Period average HKD:US$ exchange rate 0.12885 0.12764 |
Comprehensive income | ASC Topic 220, “ Comprehensive Income |
Segment reporting | ASC Topic 280, “ Segment Reporting |
Related parties | The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and contingencies | The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Fair value of financial instruments | The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments. |
Recent accounting pronouncements | In January 2017, the Financial Accounting Standard Board (“FASB”) issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
DESCRIPTION OF BUSINESS ORGANIZ
DESCRIPTION OF BUSINESS ORGANIZATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | |
Summary of descriptions of subsidiaries | Name Place of incorporation and kind of legal entity Principal activities and place of operation Particulars of registered/ paid up share capital Effective interest held Fovea International Holdings Limited British Virgin Islands Investment holding 100 ordinary shares at par value of US$1 100 % Fovea Jewellery Holdings Limited Hong Kong Sales and marketing in Hong Kong 1 ordinary share at par value of HK$1 100 % Gold Shiny International Limited British Virgin Islands Investment holding 115 ordinary shares at par value of US$1 100 % Gold Shiny (Asia) Limited Hong Kong Sales and marketing in Hong Kong 1 ordinary share at par value of HK$1 100 % |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of plant and equipment | Expected useful lives Computer equipment 5 years |
Summary of exchange rates | June 30, 2020 June 30, 2019 Period-end HKD:US$ exchange rate 0.12903 0.12842 Period average HKD:US$ exchange rate 0.12885 0.12764 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INCOME TAXES | |
Schedule of provision for income tax | Six months ended June 30, 2020 2019 Current tax $ - $ - Deferred tax (638) - Income tax (credit) expense $ (638 ) $ - |
Schedule of income tax rate | Six months ended June 30, 2020 2019 Income before income taxes $ 43,352 $ 35,908 Statutory income tax rate 16.5 % 16.5 % Income tax expense at statutory rate 7,153 5,925 Tax effect of non-deductible items 106 - Tax effect of tax holiday (7,259 ) (5,925 ) Income tax credit/(expense) $ - $ - |
Schedule of Deferred Tax Liabilities | June 30, December 31, 2020 2019 Deferred tax liabilities: Accelerated depreciation $ 5,322 $ 5,933 |
DESCRIPTION OF BUSINESS AND O_2
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details) | 1 Months Ended | 6 Months Ended |
Mar. 20, 2020 | Jun. 30, 2020 | |
Fovea International Holdings Limited [Member] | ||
Place of incorporation and kind of legal entity | British Virgin Islands | |
Principal activities and place of operation | Investment holding | |
Particulars of registered/ paid up share capital | 100 ordinary shares at par value of US$1 | |
Effective interest held | 100.00% | |
Fovea Jewellery Holdings Limited [Member] | ||
Place of incorporation and kind of legal entity | Hong Kong | |
Principal activities and place of operation | Sales and marketing in Hong Kong | |
Particulars of registered/ paid up share capital | 1 ordinary share at par value of HK$1 | |
Effective interest held | 100.00% | |
Gold Shiny International Limited [Member] | ||
Place of incorporation and kind of legal entity | British Virgin Islands | |
Principal activities and place of operation | Investment holding | |
Particulars of registered/ paid up share capital | 115 ordinary shares at par value of US$1 | |
Effective interest held | 100.00% | 100.00% |
Gold Shiny (Asia) Limited [Member] | ||
Place of incorporation and kind of legal entity | Hong Kong | |
Principal activities and place of operation | Sales and marketing in Hong Kong | |
Particulars of registered/ paid up share capital | 1 ordinary share at par value of HK$1 | |
Effective interest held | 100.00% |
DESCRIPTION OF BUSINESS AND O_3
DESCRIPTION OF BUSINESS AND ORGANIZATION (Details Narrative) - shares | 1 Months Ended | 6 Months Ended | ||
Mar. 20, 2020 | Mar. 06, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Reverse stock split description | 1 for 10,000 | |||
Common stock, shares issued | 10,161,039 | 10,161,039 | ||
Common stock shares outstanding | 10,161,039 | 10,161,039 | ||
Gold Shiny International Limited [Member] | ||||
Common stock, shares issued | 10,000,000 | |||
Ownership subsidiary | 100.00% | 100.00% | ||
Common stock shares outstanding | 10,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Computer Equipment [Member] | |
Expected useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Jun. 30, 2020 | Jun. 30, 2019 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Period average HKD:US$ exchange rate | 0.12885 | 0.12764 |
Period-end HKD:US$ exchange rate | 0.12903 | 0.12842 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Computer Equipment [Member] | ||||
Depreciation expense | $ 1,933 | $ 0 | $ 3,866 | $ 0 |
STOCKHOLDERS' EQUITY (Details N
STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares | 1 Months Ended | 6 Months Ended | ||
Mar. 20, 2020 | Mar. 06, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Preferred stock, shares par value | $ 0.001 | $ 0.001 | ||
Common stock, shares authorised | 2,000,000,000 | 2,000,000,000 | ||
Reverse stock split description | 1 for 10,000 | |||
Common stock, shares par value | $ 0.001 | $ 0.001 | ||
Common stock, shares outstanding | 10,161,039 | 10,161,039 | ||
Common stock, shares issued | 10,161,039 | 10,161,039 | ||
Preferred stock, shares authorised | 5,000,000 | 5,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Gold Shiny International Limited [Member] | ||||
Common stock, shares outstanding | 10,000,000 | |||
Common stock, shares issued | 10,000,000 | |||
Equity interest | 100.00% | |||
Ownership subsidiary | 100.00% | 100.00% | ||
Stockholders Equity [Member] | ||||
Preferred stock, shares par value | $ 0.001 | $ 0.001 | ||
Common stock, shares authorised | 2,000,000,000 | 499,000,000 | ||
Reverse stock split description | 1 for 10,000 | |||
Common stock, shares par value | $ 0.001 | $ 0.001 | ||
Common stock, shares outstanding | 10,161,039 | 10,161,039 | ||
Common stock, shares issued | 10,161,039 | 10,161,039 | ||
Preferred stock, shares authorised | 5,000,000 | 5,000,000 | ||
Preferred Stock Series A [Member] | ||||
Preferred stock, shares par value | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorised | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | ||
Preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
INCOME TAXES | ||
Current tax | $ 0 | $ 0 |
Deferred Tax | (638) | 0 |
Income tax (credit) expense | $ (638) | $ 0 |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
INCOME TAXES | ||
Income before income taxes | $ 43,352 | $ 35,908 |
Statutory Income Tax Rate | 16.50% | 16.50% |
Income tax expense at statutory rate | $ 7,153 | $ 5,925 |
Tax effect of non-deductible items | 106 | 0 |
Tax effect of tax holiday | (7,259) | (5,925) |
Income tax credit/(expense) | $ 0 | $ 0 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Deferred tax liabilities: | ||
Accelerated depreciation | $ 5,322 | $ 5,933 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - Hong Kong [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | |
Profits tax rates | 8.25% |
Maximum [Member] | |
Profits tax rates | 16.50% |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details Narrative) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | |
Two Venders [Member] | |||
Concentration risk | 73.00% | 27.00% | |
Customer Accounted [Member] | |||
Concentration risk | 98.00% | ||
Customer 1 [Member] | |||
Concentration risk | 12.00% | ||
Customer [Member] | |||
Concentration risk | 69.00% | ||
Vendors Accounted [Member] | |||
Concentration risk | 100.00% | ||
Single Vendor [Member] | |||
Concentration risk | 100.00% |