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Condensed Financial Information of the Parent Company
 6 Months Ended
Jun. 30, 2023
Condensed Financial Information of the Parent Company [Abstract]  
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

NOTE 21- 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

 

   June 30,   December 31, 
   2023   2022 
Assets        
Current assets        
Cash  $4,387,925   $226,578 
Short-term investments   3,000,000    
-
 
Intercompany receivables   10,000    10,000 
Deferred offering cost   
-
    349,842 
Prepaid expenses and other current assets   2,582,045    
-
 
Total current assets   9,979,970    586,420 
           
Non-current assets          
Long-term investments   5,000,000    
-
 
Investments in non-VIE subsidiaries   12,336,264    14,299,036 
Total non-current assets   17,336,264    14,299,036 
Total Assets  $27,316,234   $14,885,456 
           
Liabilities and Shareholders’ Equity          
Current liabilities          
Intercompany payable  $1,358,930   $1,358,930 
Total current liabilities   1,358,930    1,358,930 
           
Total Liabilities   1,358,930    1,358,930 
           
Commitments and Contingencies   
 
    
 
 
           
Shareholders’ Equity          
Ordinary Shares, par value $0.0001 per share, 490,000,000 shares authorized; 14,392,364 shares and 10,987,679 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively.   1,439    1,099 
Additional paid-in capital   16,721,551    2,628,356 
Statutory reserve   836,215    836,215 
Retained earnings   9,174,695    10,340,107 
Accumulated other comprehensive loss   (776,596)   (279,251)
Total Shareholders’ Equity   25,957,304    13,526,526 
           
Total Liabilities and Shareholders’ Equity  $27,316,234   $14,885,456 

 

PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

   Six Months Ended June 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Operating expenses:        
General and administrative  $394,676   $270,810 
Total operating expenses   394,676    270,810 
           
Operating loss   (394,676)   (270,810)
           
Other income (expense)          
Net investment income   64,989    
-
 
Interest income   60,924    21 
Other expense, net   (615)   (4,169)
Total other income (loss)   125,298    (4,148)
           
Share of income from subsidiaries   891,352    913,385 
Income before provision for income taxes   621,974    638,427 
           
Net income  $621,974   $638,427 
Comprehensive income          
Net income  $621,974   $638,427 
           
Comprehensive income  $621,974   $638,427 
Earnings per ordinary share          
– Basic and diluted
  $0.05   $0.06 
           
Weighted average number of ordinary shares outstanding          
– Basic and diluted
   12,122,574    10,987,679 

 

PARENT COMPANY STATEMENTS OF CASH FLOWS

 

   Six Months Ended June 30, 
   2023   2022 
   (Unaudited)   (Unaudited) 
Operating Activities        
Net income  $621,974   $638,427 
Adjustments to reconcile net income to net cash used in operating activities:          
Net investment gain   (956,341)   (913,385)
Changes in operating assets and liabilities:          
Deferred offering cost   (130,134)   60,000 
Prepaid expenses and other current assets   (130,735)   
-
 
Net cash used in operating activities   (595,236)   (214,958)
           
Investing Activities          
Loans to third parties   (2,986,321)   
-
 
Repayment from third-party loans   600,000    
-
 
Purchases of held-to-maturity investments   (8,000,000)   
-
 
Net cash used in investing activities   (10,386,321)   
-
 
           
Financing activities:          
Proceeds from issuance of ordinary shares   15,142,902    
-
 
Net cash provided by financing activities   15,142,902    
-
 
           
Net increase (decrease) in cash   4,161,345    (214,958)
Cash and equivalents at beginning of period   226,578    509,728 
Cash and equivalents at end of period  $4,387,923   $294,770