v3.26.3
Condensed Financial Information of the Parent Company
 6 Months Ended
Jun. 30, 2026
Condensed Financial Information of the Parent Company [Line Items]  
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

NOTE 20 - 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 consolidated financial statements for the parent company are included herein.

 

PARENT COMPANY BALANCE SHEETS

 

    June 30,
2026		     December 31,
2025		  
Assets            
Current assets            
Cash and cash equivalents   $ 16,841,902     $ 3,278,253  
Short-term investments     11,100,000       11,100,000  
Accounts receivable, net     1,627,500       1,697,673  
Advances to suppliers, net     -       -  
Intercompany receivables     15,000       15,000  
Other receivable     5,846,247       6,846,247  
Total current assets     35,430,649       22,937,173  
                 
Non-current assets                
Investments in non-VIE subsidiaries     14,307,351       14,523,251  
Total non-current assets     14,307,351       14,523,251  
Total Assets   $ 49,738,000     $ 37,460,424  
                 
Liabilities and Shareholders’ Equity                
Current liabilities                
Accounts payable   $ 50,000     $ 85,860  
Intercompany payable     4,284,252       1,364,252  
Total current liabilities     4,334,252       1,450,112  
                 
Total Liabilities     4,334,252       1,450,112  
                 
Commitments and Contingencies     -       -  
                 
Shareholders’ Equity                
Class A Ordinary Shares, US$0.375 par value; 800,000 shares authorized, 799,861 shares issued and outstanding as of June 30, 2026; 800,000 shares authorized, 5,629 shares issued and outstanding as of December 31, 2025*     299,948       2,111  
Class B Ordinary Shares, US$0.0001 par value; 150,000,000 shares authorized, 8,192,000 shares issued and outstanding;     819       819  
Additional paid-in capital     35,040,217       24,920,060  
Statutory reserve     836,215       836,215  
Retained earnings     9,301,135       10,671,200  
Accumulated other comprehensive loss     (74,586 )     (420,093 )
Total Shareholders’ Equity     45,403,748       36,010,312  
Total Liabilities and Shareholders’ Equity   $ 49,738,000     $ 37,460,424  

 

* The shares data are presented on a retroactive basis to reflect the 1-for-25 reverse share split of the Class A ordinary shares effective on July 6, 2026 (Notes 14 and 19).

 

PARENT COMPANY STATEMENTS OF OPERATIONS

 

    Six Months Ended June 30,  
    2026     2025  
    (Unaudited)     (Unaudited)  
Revenues     429,827       -  
Cost of revenues     (385,782 )     -  
Gross profit     44,045       -  
                 
Operating expenses:                
General and administrative   $ 977,419     $ 548,003  
Total operating expenses     977,419       548,003  
                 
Operating loss     (933,374 )     (548,003 )
                 
Other income (expense)                
Net investment gain     37,514       15,616  
Interest income     87,203       98,813  
Other expense, net     -       (11,608 )
Total other income, net     124,717       102,821  
                 
Share of loss from subsidiaries     (561,408 )     (470,927 )
                 
Net loss   $ (1,370,065 )   $ (916,109 )
Comprehensive income                
Net loss   $ (1,370,065 )   $ (916,109 )
                 
Comprehensive loss   $ (1,370,065 )   $ (916,109 )
Loss per ordinary share                
Basic and diluted   $ (0.16 )   $ (0.11 )
                 
Weighted average number of ordinary shares outstanding                
Basic and diluted*     8,313,997       8,197,629  

 

* The shares data are presented on a retroactive basis to reflect the 1-for-25 reverse share split of the Class A ordinary shares effective on July 6, 2026 (Notes 14 and 19).

 

PARENT COMPANY STATEMENTS OF CASH FLOWS

 

    Six Months Ended June 30,  
    2026     2025  
    (Unaudited)     (Unaudited)  
Cash flows from operating activities:            
Net loss   $ (1,370,065 )   $ (916,109 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                
                 
Net investment loss     561,408       470,927  
Changes in operating assets and liabilities:                
Accounts receivable     70,173       -  
Advances to suppliers     -       (791,780 )
Prepaid expenses and other current assets     -       239,097  
Accounts payable     (35,861 )     -  
Advances from customers     -       299,995  
Due to intercompany     2,920,000       2,255  
Net cash provided by (used in) operating activities     2,145,655       (695,615 )
                 
Cash flows from investing activities                
                 
Purchases of held-to maturity investments     (1,000,000 )     (1,650,000 )
Redemption of held-to-maturity investments     2,000,000       700,000  
Refund of deposit for acquisition     -       1,000,000  
Net cash provided by investing activities     1,000,000       50,000  
                 
Cash flows from financing activities                
Proceeds from issuance of ordinary shares     10,417,994       -  
Net cash provided by financing activities     10,417,994       -  
                 
Net increase (decrease) in cash     13,563,649       (645,615 )
Cash and equivalents at beginning of period     3,278,253       6,489,424  
Cash and equivalents at end of period   $ 16,841,902     $ 5,843,809