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Financial information of the parent company
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Financial information of the parent company

Note 19 – Financial information of the parent company

 

Pursuant to the requirements of Rule 12-04(a), 5-04(c) and 4-08(e)(3) of Regulation S-X, the financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirement and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiaries exceeded 25% of the consolidated net assets of the Company. Therefore, the financial statements for the parent company are included herein.

 

For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party.

 

The financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s unaudited consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries. Such investment is presented on the balance sheets as “Investment in subsidiaries” and the respective profit or loss as “Equity in earnings of subsidiaries” on the statements of income.

 

The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S GAAP have been condensed or omitted.

 

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

 

PARENT COMPANY BALANCE SHEETS

 

               
    December 31, 2024   December 31, 2023
         
ASSETS                
OTHER ASSET                
Investment in subsidiaries   $ 37,283,779     $ 31,902,645  
Total asset   $ 37,283,779     $ 31,902,645  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
                 
LIABILITIES   $ —     $ —  
                 
COMMITMENTS AND CONTINGENCIES                
                 
SHAREHOLDERS’ EQUITY                
Ordinary shares, $0.0025 par value, 20,000,000 shares authorized, 10,825,000 and 9,200,000 shares outstanding as of December 31, 2024 and 2023     27,063       23,000  
Additional paid-in capital     11,578,633       7,453,265  
Statutory reserves     3,433,589       3,192,855  
Retained earnings     24,455,403       23,242,946  
Accumulated other comprehensive loss     (2,210,909 )     (2,009,421 )
Total shareholders’ equity     37,283,779       31,902,645  
                 
Total liabilities and shareholders’ equity   $ 37,283,779     $ 31,902,645  

 

PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

                       
    For the years ended December 31,
    2024   2023   2022
             
EQUITY INCOME OF SUBSIDIARIES   $ 1,453,191     $ 7,417,705     $ 5,782,018  
                         
NET INCOME     1,453,191       7,417,705       5,782,018  
                         
FOREIGN CURRENCY TRANSLATION ADJUSTMENT     (201,488 )     (518,799 )     (2,050,374 )
COMPREHENSIVE INCOME   $ 1,251,703     $ 6,898,906     $ 3,731,644  

 

PARENT COMPANY STATEMENTS OF CASH FLOWS

 

                       
    For the years ended December 31,
    2024   2023   2022
             
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net income   $ 1,453,191     $ 7,417,705     $ 5,782,018  
Adjustments to reconcile net income to cash used in operating activities:                        
Equity income of subsidiaries     (1,453,191 )     (7,417,705 )     (5,782,018 )
Net cash used in operating activities     —       —       —  
                         
CHANGES IN CASH     —       —       —  
                         
CASH, beginning of year     —       —       —  
                         
CASH, end of year   $ —     $ —     $ —