v3.26.1
Discontinued Operation
 6 Months Ended
Jun. 30, 2026
Discontinued Operation [Abstract]  
Discontinued Operation

3. Discontinued Operation

 

On April 30, 2025, the Board resolved to discontinue the operations of Shandong Yunchu. Subsequently, on September 1, 2025, the Company disposed of its 100% equity interest in Promising Prospect HK Limited (“Promising HK”) for nominal consideration. Promising HK holds the 100% equity interest in Shandong Yunchu through Jiayi Technologies and does not own any other operating assets of the Company.

 

On June 15, 2026, the Company completed the disposition of its 100% equity interest in Bless Chemical for nominal consideration. Bless Chemical held the 100% equity interest in Jingshan Sanhe Luckysky New Energy Technologies Co., Ltd. through Hubei Bulaisi and did not own any other operating assets of the Company.

 

The discontinued operation represents a strategic shift that has a major effect on the Company’s operations and financial results, which trigger discontinued operations accounting in accordance with ASC 205-20-45. Results of operations related to the discontinued operations for the six months ended June 30, 2025 were retroactively reported as loss from discontinued operations. The results of discontinued operations for the six months ended June 30, 2026 and 2025 are as follows:

 

   For the Six Months Ended
June 30,		 
   2026   2025 
Net revenues  $57,713   $1,683,663 
Cost of revenues   57,287    1,675,955 
Gross profit   426    7,708 
           
Operating expenses:          
Selling and marketing expenses   3,902    14,087 
General and administrative expenses   489,786    783,341 
Research and development expenses   18,493    36,468 
Total operating expenses   512,181    833,896 
           
Loss from discontinued operations   (511,755)   (826,188)
           
Other income (expenses)          
Interest income   4    102 
Interest expenses   (82,088)   (55,412)
Other expenses   (29,452)   (28,409)
Gain on disposal of subsidiaries   256,370    
-
 
Total other income (expenses)   144,834    (83,719)
           
Loss before income taxes   (366,921)   (909,907)
Income taxes provision        
-
 
Net loss from discontinued operations  $(366,921)  $(909,907)

Assets and liabilities of the discontinued operations:

 

   As of
December 31,		 
   2025 
CURRENT ASSETS:    
Cash  $103,205 
Accounts receivable, net   74,876 
Inventories, net   138,706 
Advances to suppliers, net   946,947 
Other receivables, net   572 
Other receivables-related parties   3,854,414 
Prepaid expenses   20,050 
TOTAL CURRENT ASSETS   5,138,770 
      
NON-CURRENT ASSETS:     
Plant and equipment, net   1,933,555 
Long-term investments   8,068 
TOTAL ASSETS  $7,080,393 
      
CURRENT LIABILITIES:     
Loans-current   $5,183,252 
Accounts payable   592,016 
Advance from customers    62,200 
Taxes payable   96,155 
Other payables and accrued liabilities   325,552 
Other payables-related parties   100,099 
TOTAL CURRENT LIABILITIES   6,359,274 
      
NON-CURRENT LIABILITIES     
Loans-noncurrent    428,994 
TOTAL LIABILITIES  $6,788,268