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Advances to Suppliers, Net

6 Months Ended

Jun. 30, 2022

Advances to Suppliers, Net [Abstract]

NOTE 7 – ADVANCES TO SUPPLIERS, NET

Advances to suppliers include prepayments for raw materials used for production and construction materials for the Company’s construction projects, which consisted of the following:

	June 30, 2022			December 31, 2021
	(Unaudited)
Raw material prepayments for equipment production	$	1,138,675		$	751,409
Land reclamation prepayments		449,745			472,640
Advances to construction subcontractors ⁽¹⁾		3,007,550			23,394
Total:		4,595,970			1,247,443
Less: allowances for doubtful accounts		(571,162	)		(965,843	)
Advances to suppliers, net, third parties	$	4,024,808		$	281,600

⁽¹⁾ The Company obtained a land development project in Longxi County, Gansu Province. The Company prepaid $2.7 million to construction subcontractors.

Our suppliers generally require refundable prepayments from us before delivery of goods or service. It usually takes 3 to 6 months for the suppliers to deliver raw material for our equipment production and takes up to 6 to 12 months for the suppliers to deliver the construction materials. The prepayment is necessary to secure the supply in the market or secure a favorable price.

Allowance for doubtful accounts movement is as follows:

	June 30, 2022			December, 2021
	(Unaudited)
Beginning balance	$	965,843		$	1,112,374
Bad debt provision		16,351			262,743
Write off					(433,305	)
Recovery		(375,898	)
Foreign exchange translation		(35,134	)		24,031
Ending balance	$	571,162		$	965,843