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Note 20 - Condensed financial information of the parent company
 12 Months Ended
Dec. 31, 2024
Notes  
Note 20 - Condensed financial information of the parent company

Note 20 – Condensed financial information of the parent company

 

The Company performed a test on the restricted net assets of the consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company.

 

The subsidiary did not pay any dividend to the Company for the years presented. For the purpose of presenting parent-only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted.

 

The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2024 and 2023.

 

PARENT COMPANY BALANCE SHEETS

 

 

As of

December 31, 2024

 

 

As of

December 31, 2024

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

   Cash

 

$

2,057,850

 

 

$

-

   Restricted cash

 

 

503,544

 

 

 

-

   Prepayments, net

 

 

23,625

 

 

 

 

   Other receivables and other current assets, net

 

 

16,000

 

 

 

 

   Loans to subsidiaries

 

 

1,214,729

 

 

 

 

Total current assets

 

 

3,815,748

 

 

 

-

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

 

 

 

 

 

Investment in subsidiary

 

 

13,685,903

 

 

 

15,828,953

Total non-current assets

 

 

13,685,903

 

 

 

15,828,953

 

 

 

 

 

 

 

 

Total assets

 

 

17,423,876

 

 

 

15,828,953

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Class A ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 11,793,485 and 10,440,000 shares issued and outstanding as of December 31, 2024 and 2023, respectively

 

 

1,179

 

 

 

1,044

Class B ordinary shares, $0.0001 par value, 100,000,000 shares authorized, 4,560,000 shares issued and outstanding as of December 31, 2024 and 2023

 

 

456

 

 

 

456

Additional paid-in capital

 

 

3,135,124

 

 

 

332,574

Retained earnings

 

 

15,050,543

 

 

 

15,530,562

Statutory reserves

 

 

248,761

 

 

 

248,761

Accumulated other comprehensive loss

 

 

(1,012,187)

 

 

 

(284,444)

Total shareholders’ equity

 

 

17,423,876

 

 

 

15,828,953

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

17,423,876

 

 

$

15,828,953

 

 

PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

  

 

 

For the Years Ended December 31,

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

   General and administrative expenses

 

$

(202,301)

 

 

$

-

 

 

$

-

   Other income, net

 

 

22,630

 

 

 

 

 

 

 

 

Equity (loss) income of subsidiaries

 

 

(300,348)

 

 

 

856,536

 

 

 

2,851,467

Total other (loss) income, net

 

 

(480,019)

 

 

 

856,536

 

 

 

2,851,467

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME

 

 

(480,019)

 

 

 

856,536

 

 

 

2,851,467

FOREIGN CURRENCY TRANSLATION ADJUSTMENT

 

 

(727,743)

 

 

 

114,302

 

 

 

(430,893)

COMPREHENSIVE (LOSS) INCOME

 

$

(1,207,762)

 

 

$

970,838

 

 

$

2,420,574

 

PARENT COMPANY STATEMENTS OF CASH FLOWS

  

 

 

For the Years Ended December 31,

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(480,019)

 

 

$

856,536

 

 

$

2,851,467

Adjustments to reconcile net(loss) income to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

Equity loss (income) of subsidiaries

 

 

300,348

 

 

 

(856,536)

 

 

 

(2,851,467)

Changes in prepayments and other receivables

 

 

(39,625)

 

 

 

-

 

 

 

-

Net cash used in operating activities

 

 

(219,296)

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

   Loans to subsidiaries

 

 

(1,214,729)

 

 

 

-

 

 

 

-

Net cash used in investing activities

 

 

(1,214,729)

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

   Proceeds from issuance of shares upon IPO

 

 

5,000,000

 

 

 

-

 

 

 

-

   Proceeds from issuance of shares pursuant to exercise of over-allotment

 

 

413,940

 

 

 

-

 

 

 

-

   Payments of initial public offering costs

 

 

(1,418,521)

 

 

 

-

 

 

 

-

Net cash provided by financing activities

 

 

3,995,419

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate change on cash and restricted cash

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Changes in cash and restricted cash

 

 

2,561,394

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Cash and restricted cash, beginning of year

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Cash and restricted cash, end of year

 

$

2,561,394

 

 

$

-

 

 

$

-

   Cash

 

 

2,057,850

 

 

 

-

 

 

 

-

   Restricted cash

 

 

503,544

 

 

 

-

 

 

 

-