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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING

24. SEGMENT REPORTING 

 

In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. The Company operated in four segments starting in fiscal 2021: “shared shopping mall membership fee, coal and aluminum ingots supply chain financing service and trading business and asset management service and others” and operates in three segment in 2022: “coal and aluminum ingots supply chain financing service and trading business, asset management service and others”.

 

Due the COVID-19 pandemic and restriction on large gatherings in China, which have made the promotion strategy for its online e-commerce platform difficult to implement and the Company has experienced difficulties to subscribe new members for its online e-commerce platform. Due to lack of new members, difficulties in retaining old customers and significant decrease of revenue in e-commerce business, the Company began to provide supply chain financing services during the second quarter of 2021 and the Company acquired Nice Talent and started to provide asset management services since August 2021.

 

Some of our operation might not individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services and products between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and asset information by segment are not presented. Segment profit represents the gross profit of each reportable segment.

 

Three months ended September 30, 2022 

 

  

Asset

management

service

   Coals and
Aluminum
Ingots
supply chain
financing/
trading		   Others   Total 
Reportable segment revenue  $4,118,065   $7,839,635   $1,319   $11,959,019 
Inter-segment loss   
-
    
-
    
-
    
-
 
Revenue from external customers  $4,118,065   $7,839,635   $1,319   $11,959,019 
Segment gross profit  $1,355,246   $136,561   $1,319   $1,493,126 

  

Three months ended September 30, 2021 

 

  

Asset

management

service

   Coals and
Aluminum
Ingots
supply chain
financing/
trading		   Total 
Reportable segment revenue  $2,101,050   $17,540,731   $19,641,781 
Inter-segment loss   
-
    7,896,754    7,896,754 
Revenue from external customers  $2,101,050    9,643,977    11,745,027 
Segment gross profit  $686,911   $296,173   $983,084 

 

Nine months ended September 30, 2022:

 

  

Asset

management

service

   Coal and
Aluminum
Ingots
supply chain
financing/
trading		   Others   Total 
Reportable segment revenue  $11,270,874   $11,494,617   $78,170   $22,843,661 
Inter-segment loss   -    -    -    - 
Revenue from external customers  $11,270,874    11,494,617    78,170    22,843,661 
Segment gross profit  $4,381,536   $196,817   $78,170   $4,656,523 

 

Nine months September 30, 2021: 

 

  

Asset

management

service

   Coal and
Aluminum
Ingots
supply chain
financing/
trading		   CCM Shopping
Mall
Membership		   Total 
Reportable segment revenue  $2,101,049   $19,646,645   $               85   $21,747,779 
Inter-segment loss        9,243,885    
-
    9,243,885 
Revenue from external customers  $2,101,049    10,402,760    85    12,503,894 
Segment gross profit  $686,909   $(247,611)  $85   $439,383