| Note 19 - Condensed financial information of the parent company |
Note 19 – Condensed financial information of the parent company
The Company performed a test on the restricted net assets of the consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company.
The subsidiary did not pay any dividend to the Company for the years presented. For the purpose of presenting parent-only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information
and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted.
The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2025 and 2024.
PARENT COMPANY BALANCE SHEETS
|
| As of
December 31,
2025
|
|
| As of
December 31,
2024
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Cash
|
| $
| 159,663
|
|
| $
| 2,057,850
|
Restricted cash
|
|
| -
|
|
|
| 503,544
|
Prepayments, net
|
|
| -
|
|
|
| 23,625
|
Other receivables and other current assets, net
|
|
| -
|
|
|
| 16,000
|
Loans to subsidiaries
|
|
| 1,730,000
|
|
|
| 31,198
|
Total current assets
|
|
| 1,889,663
|
|
|
| 2,632,217
|
|
|
|
|
|
|
|
|
OTHER ASSETS
|
|
|
|
|
|
|
|
Investment in subsidiary
|
|
| 16,479,643
|
|
|
| 14,791,659
|
Total non-current assets
|
|
| 16,479,643
|
|
|
| 14,791,659
|
|
|
|
|
|
|
|
|
Total assets
|
|
| 18,369,306
|
|
|
| 17,423,876
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
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|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
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|
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SHAREHOLDERS’ EQUITY
|
|
|
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|
|
|
Class A ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 11,793,485 and 10,440,000 shares issued and outstanding as of December 31, 2024 and 2023, respectively
|
|
| 1,179
|
|
|
| 1,179
|
Class B ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 4,560,000 shares issued and outstanding as of December 31, 2024 and 2023
|
|
| 456
|
|
|
| 456
|
Additional paid-in capital
|
|
| 3,103,802
|
|
|
| 3,135,124
|
Retained earnings
|
|
| 15,285,889
|
|
|
| 15,299,304
|
Accumulated other comprehensive loss
|
|
| (22,020)
|
|
|
| (1,012,187)
|
Total shareholders’ equity
|
|
| 18,369,306
|
|
|
| 17,423,876
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
| $
| 18,369,306
|
|
| $
| 17,423,876
|
PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
|
| For the Years Ended December 31,
|
|
| 2025
|
| 2024
|
| 2023
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME
|
|
|
|
|
|
|
|
|
|
General and administrative expenses
|
| $
| (1,012,303)
|
| $
| (202,301)
|
| $
| -
|
Other income, net
|
|
| 44,433
|
|
| 22,630
|
|
| -
|
Equity (loss) income of subsidiaries
|
|
| 954,454
|
|
| (300,348)
|
|
| 856,536
|
Total other (loss) income, net
|
|
| (13,416)
|
|
| (480,019)
|
|
| 856,536
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
|
|
| (13,416)
|
|
| (480,019)
|
|
| 856,536
|
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
|
|
| 990,167
|
|
| (727,743)
|
|
| 114,302
|
COMPREHENSIVE (LOSS) INCOME
|
| $
| 976,751
|
| $
| (1,207,762)
|
| $
| 970,838
|
PARENT COMPANY STATEMENTS OF CASH FLOWS
|
| For the Years Ended December 31,
|
|
| 2025
|
| 2024
|
| 2023
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
| $
| (13,416)
|
| $
| (480,019)
|
| $
| 856,536
|
Adjustments to reconcile net(loss) income to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
Equity loss (income) of subsidiaries
|
|
| (954,454)
|
|
| 300,348
|
|
| (856,536)
|
Changes in prepayments and other receivables
|
|
| 264,941
|
|
| (39,625)
|
|
| -
|
Net cash used in operating activities
|
|
| (702,929)
|
|
| (219,296)
|
|
| -
|
|
|
|
|
|
|
|
|
|
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CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Loans to subsidiaries
|
|
| (1,698,802)
|
|
| (31,198)
|
|
| -
|
Net cash used in investing activities
|
|
| (1,698,802)
|
|
| (31,198)
|
|
| -
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of shares upon IPO
|
|
| -
|
|
| 5,000,000
|
|
| -
|
Proceeds from issuance of shares pursuant to exercise of over-allotment
|
|
| -
|
|
| 413,940
|
|
| -
|
Payments of initial public offering costs
|
|
| -
|
|
| (1,418,521)
|
|
| -
|
Repayments to subsidiaries
|
|
| -
|
|
| (1,183,531)
|
|
| -
|
Net cash provided by financing activities
|
|
| -
|
|
| 2,811,888
|
|
| -
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate change on cash and restricted cash
|
|
| -
|
|
| -
|
|
| -
|
|
|
|
|
|
|
|
|
|
|
Changes in cash and restricted cash
|
|
| (2,401,731)
|
|
| 2,561,394
|
|
| -
|
|
|
|
|
|
|
|
|
|
|
Cash and restricted cash, beginning of year
|
|
| 2,561,394
|
|
| -
|
|
| -
|
|
|
|
|
|
|
|
|
|
|
Cash and restricted cash, end of year
|
| $
| 159,663
|
| $
| 2,561,394
|
| $
| -
|
Cash
|
|
| 159,663
|
|
| 2,057,850
|
|
| -
|
Restricted cash
|
|
| -
|
|
| 503,544
|
|
| -
|
|