XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.21.1

Discontinued Operations | 12 Months Ended
--- | ---
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 15. DISCONTINUED OPERATIONS HeDeTang HK On September 18, 2019, SkyPeople Foods Holdings Limited (“SkyPeople Foods”) entered into a Share Transfer Agreement (the “Agreement”) with New Continent International Co., Ltd., (the “Buyer”) a company incorporated in the British Virgin Islands. Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of HeDeTang Holdings (HK) Ltd. (“HeDeTang HK”) from SkyPeople Foods, which value is primarily derived from HeDeTang HK’s wholly-owned subsidiary HeDeJiaChuan Holdings Co., Ltd. and 73.41% owned subsidiary SkyPeople Juice Group Co., Ltd., for a total price of RMB 600,000 (approximately $85,714) (the “Sale Transaction”). The Sale Transaction was closed on February 27, 2020. In accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205”), the Company presented the operation results from HeDeTang HK’s and subsidiaries as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. The total assets of HeDeTang HK were $106.85 million as of February 27, 2020 and the total liabilities of HeDeTang HK were $231.21 million as of February 27, 2020, resulting in a gain on disposal of $99.87 million. There was no income or loss from HeDeTang HK from January 1, 2020 to the sale. The discontinued operation presented in the financial statement includes Huludao Wonder operation, a subsidiary which produces concentrated apple juice. In December 2016, the Company established a winding-down plan to close this operation. Based on the restructuring plan and in accordance with ASC 205-20, the Company presented the operating results from Huludao Wonder as a discontinued operation, as the Company believed that no continued cash flow would be generated by the disposed component (Huludao Wonder) and that the Company would have no significant continuing involvement in the operation of the discontinued component. Management of the Company initiated a plan to sell the property located in Huludao in December 2016, and ceased the depreciation of the property in accordance with ASC 205-20. In accordance with the restructuring plan, the Company intended to transfer the concentrated fruit juice production equipment in Huludao Wonder to another subsidiary and to sell the land use right and facilities upon favorable circumstances. On February 27, 2020 pursuant to a Share Transfer Agreement entered into by SkyPeople Foods and New Continent International Co., Ltd. on September 18, 2019, the ownership of Huludao Wonder was transferred as a subsidiary of HeDeTang HK to New Continent International Co., Ltd. On March 11, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Globalkey Supply Chain limited and Zhonglian Hengxin Assets Management Co., Ltd (“Zhonglian Hengxin”) and close the operation of Digital Online Marketing Limited, Future Digital Fintech (Xi’an) Co., Ltd., SkyPeople Foods Holding Ltd. and Chain Future Digital Tech (Beijing) Co., Ltd. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. On October 31, 2020, the transfer of ownership of Globalkey Supply Chain Limited and Zhonglian Hengxin was completed with a disposal gain of $181,741. On July 24, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Hedetang Farm Products Trading Markets (Mei County) Co., Ltd. and close the operation of Chain Cloud Mall Logistics Center (Shaanxi) Co., Ltd. On July 27,2020, Skypeople Foods Holdings Limited Company was dissolved; On July 28, 2020 digital online marketing limited company was dissolved; On October 31, 2020, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited and Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. completed the transfer of its ownership of Hedetang Farm Products Trading Markets (Mei county) Co., Ltd with a disposal gain of $18,191,960. Loss from discontinued operations for fiscal years 2020 and 2019 was as follows:
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
REVENUES |  | $ | - |  |  | $ | 344,250 |
COST OF SALES |  |  | - |  |  |  | 316,162 |
GROSS PROFIT |  |  | - |  |  |  | 28,088 |
OPERATING EXPENSES: |  |  |  |  |  |  |  |
General and administrative |  |  | 274,370 |  |  |  | 5,476,173 |
Selling expenses |  |  | - |  |  |  | 231,519 |
Bad debt expenses |  |  | 202,679 |  |  |  | 3,101,859 |
Total |  |  | 477,049 |  |  |  | 8,809,551 |
OTHER INCOME (EXPENSE) |  |  |  |  |  |  |  |
Interest income |  |  | 189 |  |  |  | 209 |
Interest expense |  |  | - |  |  |  | (7,300,188 | )
other income (expenses) |  |  | (1,197 | ) |  |  | 116,917 |
Total |  |  | (1,008 | ) |  |  | (7,183,062 | )
Loss from discontinued operations before income tax |  |  | (478,057 | ) |  |  | (15,964,525 | )
Income tax provision |  |  | - |  |  |  | - |
Loss from discontinued operation before noncontrolling interest |  | $ | (478,057 | ) |  |  | (15,964,525 | )
Gain on disposal of discontinued operations |  |  | 145 |  |  |  |  |
Less: Net loss attributable to non-controlling interests |  |  |  |  |  |  | (1,681,739 | )
LOSS FROM DISCONTINUED OPERATION |  | $ | (477,912 | ) |  | $ | (14,282,786 | )
The major components of assets and liabilities related to discontinued operations are summarized below:
|  | December 31, 2020 |  |  | December 31, 2019 |
Cash |  | $ | 2,985 |  |  | $ | 471,536 |
Accounts receivable |  |  | - |  |  |  | 11,720 |
Other receivables |  |  | - |  |  |  | 1,861 |
Inventory |  |  | - |  |  |  | 454,269 |
Advances to suppliers and other current assets |  |  | - |  |  |  | 167,831 |
Property and equipment, net |  |  | - |  |  |  | 1,176,163 |
Right of use assets |  |  | - |  |  |  | 57,571,254 |
Intangible assets, net |  |  | - |  |  |  | 20,619,588 |
Amount due from related parties |  |  | 32,097 |  |  |  | 18,054,736 |
Total assets related to discontinued operations |  | $ | 35,082 |  |  |  | 98,528,958 |
Accounts payable |  | $ | - |  |  | $ | 2,156,219 |
Accrued expenses |  |  | 431,011 |  |  |  | 84,567,693 |
Advances from customers |  |  | - |  |  |  | 983,472 |
Short-term bank loans |  |  | - |  |  |  | 37,245,139 |
Lease liabilities |  |  | - |  |  |  | 60,613,970 |
Amount due from related parties |  |  | 434,557 |  |  |  | 14,768,360 |
Total liabilities related to discontinued operations |  | $ | 865,568 |  |  | $ | 200,334,853 |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration