| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
NOTE 19 – CONDENSED FINANCIAL INFORMATION
OF THE PARENT COMPANY
Pursuant to Rules 12-04(a), 5-04(c), and 4-08(e)(3)
of Regulation S-X, the condensed financial information of the parent company shall be filed when the restricted net assets of consolidated
subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company
performed a test on the restricted net assets of consolidated subsidiaries in accordance with such rules and concluded they were applicable
to the Company as the restricted net assets of the Company’s PRC subsidiary and VIEs exceeded 25% of the consolidated net assets
of the Company. Therefore, the condensed CFS for the parent company are included herein. PARENT COMPANY BALANCE SHEETS
(Expressed in U.S. Dollars, except for
the number of shares)
| | |
June 30,
2025 | | |
December 31,
2024 | |
| | |
(Unaudited) | | |
| |
| ASSETS | |
| | |
| |
| Current assets: | |
| | |
| |
| Cash | |
$ | 5,843,809 | | |
$ | 6,489,424 | |
| Short-term investments | |
| 15,650,000 | | |
| 14,700,000 | |
| Advances to suppliers, net | |
| 791,780 | | |
| - | |
| Intercompany receivables | |
| 15,000 | | |
| 15,000 | |
| Prepaid expenses and other current assets | |
| 54,795 | | |
| 1,293,893 | |
| Total current assets | |
| 22,355,384 | | |
| 22,498,317 | |
| | |
| | | |
| | |
| Non-current assets | |
| | | |
| | |
| Investments in non-VIE subsidiaries | |
| 13,904,092 | | |
| 14,138,600 | |
| Total non-current assets | |
| 13,904,092 | | |
| 14,138,600 | |
| Total Assets | |
$ | 36,259,476 | | |
$ | 36,636,917 | |
| | |
| | | |
| | |
| Liabilities and Shareholders’ Equity | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Intercompany payable | |
$ | 1,364,251 | | |
$ | 1,361,997 | |
| Advances from customers | |
| 299,995 | | |
| - | |
| Total current liabilities | |
| 1,664,246 | | |
| 1,361,997 | |
| | |
| | | |
| | |
| Total Liabilities | |
| 1,664,246 | | |
| 1,361,997 | |
| | |
| | | |
| | |
| Commitments and Contingencies | |
| - | | |
| - | |
| | |
| | | |
| | |
| Shareholders’ Equity | |
| | | |
| | |
| Class A Ordinary Shares, US$0.0001 par value; 431,808,000 shares authorized, 21,107,364 shares issued and outstanding. | |
| 2,111 | | |
| 2,111 | |
| Class B Ordinary Shares, US$0.0001 par value; 58,192,000 shares authorized, 8,192,000 shares issued and outstanding. | |
| 819 | | |
| 819 | |
| Additional paid-in capital | |
| 24,920,060 | | |
| 24,920,060 | |
| Statutory reserve | |
| 836,215 | | |
| 836,215 | |
| Retained earnings | |
| 9,574,949 | | |
| 10,491,058 | |
| Accumulated other comprehensive loss | |
| (738,924 | ) | |
| (975,343 | ) |
| Total Shareholders’ Equity | |
| 34,595,230 | | |
| 35,274,920 | |
| | |
| | | |
| | |
| Total Liabilities and Shareholders’ Equity | |
$ | 36,259,476 | | |
$ | 36,636,917 | |
PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Expressed in U.S. Dollars)
| | |
Six Months Ended June 30, | |
| | |
2025 | | |
2024 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Operating expenses: | |
| | |
| |
| General and administrative | |
$ | 548,003 | | |
$ | 770,127 | |
| Total operating expenses | |
| 548,003 | | |
| 770,127 | |
| | |
| | | |
| | |
| Operating loss | |
| (548,003 | ) | |
| (770,127 | ) |
| | |
| | | |
| | |
| Other income (expense) | |
| | | |
| | |
| Net investment gain | |
| 15,616 | | |
| 203,675 | |
| Interest income | |
| 98,813 | | |
| 247,440 | |
| Other expense, net | |
| (11,608 | ) | |
| (8,145 | ) |
| Total other income, net | |
| 102,821 | | |
| 442,970 | |
| | |
| | | |
| | |
| Share of (loss) income from subsidiaries | |
| (470,927 | ) | |
| 448,819 | |
| | |
| | | |
| | |
| Net (loss) income | |
$ | (916,109 | ) | |
$ | 121,662 | |
| Comprehensive income | |
| | | |
| | |
| Net (loss) income | |
$ | (916,109 | ) | |
$ | 121,662 | |
| | |
| | | |
| | |
| Comprehensive (loss) income | |
$ | (916,109 | ) | |
$ | 121,662 | |
| (Loss) earnings per ordinary share | |
| | | |
| | |
| Basic and diluted | |
$ | (0.03 | ) | |
$ | 0.01 | |
| | |
| | | |
| | |
| Weighted average number of ordinary shares outstanding | |
| | | |
| | |
| Basic and diluted | |
| 29,299,364 | | |
| 14,392,364 | |
PARENT COMPANY STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
| | |
Six Months Ended June 30, | |
| | |
2025 | | |
2024 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Operating activities: | |
| | |
| |
| Net (loss) income | |
$ | (916,109 | ) | |
$ | 121,662 | |
| Adjustments to reconcile net (loss) income to net cash used in operating
activities: | |
| | | |
| | |
| Accrued interest income from loans | |
| - | | |
| (147,835 | ) |
| Net investment gain | |
| 470,927 | | |
| (652,494 | ) |
| Changes in operating assets and liabilities: | |
| | | |
| | |
| Advances to suppliers | |
| (791,780 | ) | |
| - | |
| Prepaid expenses and other current assets | |
| 239,097 | | |
| - | |
| Advances from customers | |
| 299,995 | | |
| - | |
| Due to intercompany | |
| 2,255 | | |
| - | |
| Net cash used in operating activities | |
| (695,615 | ) | |
| (678,667 | ) |
| | |
| | | |
| | |
| Investing activities | |
| | | |
| | |
| Loans to third parties | |
| - | | |
| (1,092,453 | ) |
| Prepayment from third-party loans | |
| - | | |
| 2,443,523 | |
| Purchases of held-to maturity investments | |
| (1,650,000 | ) | |
| (9,500,000 | ) |
| Redemption of Held-to-maturity investments | |
| 700,000 | | |
| - | |
| Deposit for acquisition | |
| - | | |
| (1,010,041 | ) |
| Refund of deposit for acquisition | |
| 1,000,000 | | |
| - | |
| Net cash provided by (used in) investing activities | |
| 50,000 | | |
| (9,158,971 | ) |
| | |
| | | |
| | |
| Financing activities | |
| | | |
| | |
| Proceeds from private placement | |
| - | | |
| 8,200,000 | |
| Net cash provided by financing activities | |
| - | | |
| 8,200,000 | |
| | |
| | | |
| | |
| Net decrease in cash | |
| (645,615 | ) | |
| (1,637,638 | ) |
| Cash and equivalents at beginning of period | |
| 6,489,424 | | |
| 8,236,065 | |
| Cash and equivalents at end of period | |
$ | 5,843,809 | | |
$ | 6,598,427 | |
|