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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING

21. 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 operates in three segments starting in fiscal 2021: “supply chain financing service and trading business”, “asset management service” and “others”.

 

The Company began to provide coal and aluminum ingots supply chain financing and trading services during the second quarter of 2021 and the Company acquired Nice Talent and started to provide asset management services since August 2021. The Company began to provide sand and steel supply chain financing and trading services during the first quarter of 2023.

 

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, 2024 

 

   Supply
Chain
Financing/
Trading		   Asset
management
service		   Others   Total 
Reportable segment revenue  $428,875   $3,710,415   $1,036,164   $5,175,454 
Inter-segment loss   
-
    
-
    
-
    
-
 
Revenue from external customers   428,875    3,710,415    1,036,164    5,175,454 
Segment gross profit  $36,776   $960,290   $516,978   $1,514,044 

 

Three months ended September 30, 2023 

 

   Supply
Chain
Financing/
Trading		   Asset
management
service		   Others   Total 
Reportable segment revenue  $19,991,243   $3,272,585   $473,675   $23,737,503 
Inter-segment loss   
-
    
-
    
-
    
-
 
Revenue from external customers   19,991,243    3,272,585    473,675    23,737,503 
Segment gross profit  $59,050   $1,139,039   $213,489   $1,411,578 

 

Nine months ended September 30, 2024 

 

   Supply
Chain
Financing/
Trading		   Asset
management
service		   Others   Total 
Reportable segment revenue  $935,313   $11,875,338   $1,690,658   $14,501,309 
Inter-segment loss   
-
    
-
    
-
    
-
 
Revenue from external customers   935,313    11,875,338    1,690,658    14,501,309 
Segment gross profit  $142,878   $3,935,458   $981,104   $5,059,440 

 

Nine months ended September 30, 2023 

 

   Supply
Chain
Financing/
Trading		   Asset
management
service		   Others   Total 
Reportable segment revenue  $20,472,036   $9,690,714   $660,453   $30,823,203 
Inter-segment loss   
-
    
-
    
-
    
-
 
Revenue from external customers   20,472,036    9,690,714    660,453    30,823,203 
Segment gross profit  $234,550   $3,320,498   $300,621   $3,855,669 

 

Loss before Income Tax:

 

   Three Months Ended
September 30,		   Nine Months Ended
September 30,		 
   2024   2023   2024   2023 
Supply chain financing/trading  $3,476,679   $(39,448)  $3,100,299   $28,975 
Asset management service   1,145,304    1,061,837    4,186,169    2,745,994 
Others   823,083    (409,926)   3,239,413    175,803 
Corporate and Unallocated   1,000,519    3,179,731    5,233,172    6,901,295 
Total operating expenses and other expenses   6,445,585    3,792,194    15,759,053    9,852,067 
Loss before Income Tax  $(4,931,541)  $(2,380,616)  $(10,699,613)  $(5,996,398)

 

Segment assets:

 

   September 30,
2024		   December 31,
2023		 
Supply chain financing/trading   14,598,742    12,437,136 
Asset management service   3,729,931    3,640,811 
Others   24,735,769    23,831,103 
Corporate and Unallocated   10,335,293    21,007,542 
Assets related to discontinued operation   
-
    24,158 
Total assets   53,399,735    60,940,750