CONDENSED PARENT COMPANY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2019

CONDENSED PARENT COMPANY FINANCIAL INFORMATION

CONDENSED BALANCE SHEETS

	December,31
	2019		2018
ASSETS
Current Assets
Cash	$	103,628	$	4,796
Due from related parties		32,236		—
Total Current Assets		135,864		4,796
Investments in subsidiaries		118,070,724		108,509,080
TOTAL ASSETS	$	118,206,588	$	108,513,876
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Other payables and accrued liabilities	$	191,917	$	205,000
Due to shareholder		—		1,663,022
Due to related parties		2,297,639		—
Total Current Liabilities		2,489,556		1,868,022
TOTAL LIABILITIES	$	2,489,556	$	1,868,022
EQUITY
Shareholders’ Equity
Ordinary shares, $0.01 par value: 100,000,000 shares authorized; 20,000,000 shares issued; 19,791,110 shares outstanding as of December 31, 2019 and 2018	$	200,000	$	200,000
Additional paid-in capital		33,971,455		33,971,455
Statutory reserve		9,043,010		7,764,813
Retained earnings		78,484,535		68,959,065
Accumulated other comprehensive income/(loss)		(5,789,815)		(4,057,326)
Treasury stock, at cost: 208,890 shares as of December 31, 2019 and 2018		(192,153)		(192,153)
TOTAL SHAREHOLDERS’ EQUITY		115,717,032		106,645,854
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	118,206,588	$	108,513,876

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December,31
	2019		2018		2017
REVENUES	$	—	$	—	$	—
COST OF GOODS SOLD		—		—		—
GROSS PROFIT		—		—		—
Selling expenses		—		—		—
General and administrative expenses		383,325		263,002		146,687
Total Operating Expenses		383,325		263,002		146,687
LOSS FROM OPERATIONS		(383,325)		(263,002)		(146,687)
Financial expenses, net		(116,865)		268		317
Equity in income of subsidiaries		11,378,898		10,927,690		5,492,315
INCOME BEFORE INCOME TAX		10,878,708		10,664,956		5,345,311
INCOME TAX		—		—		—
NET INCOME		10,878,708		10,664,956		5,345,311
OTHER COMPREHENSIVE INCOME
Foreign currency translation gain (loss)		(1,744,846)		(6,284,660)		6,606,207
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(1,744,846)		(6,284,660)		6,606,207
COMPREHENSIVE INCOME (LOSS)	$	9,133,862	$	4,380,296	$	11,951,518

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December,31
	2019		2018		2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	10,878,708	$	10,664,956	$	5,345,311
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries		(11,378,898)		(10,927,690)		(5,492,315)
Other payables and accrued liabilities		(13,083)		(1,046,423)		102,517
Due to shareholder		(1,663,022)		1,311,523		44,000
Due from related parties		(32,236)		—		—
Due to related parties		2,297,639		—		—
Net cash provided by / (used in) operating activities		89,108		2,366		(487)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by / (used in) investing activities		—		—		—
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used in financing activities		—		—		—
INCREASE / (DECREASE) IN CASH		89,108		2,366		(487)
Effect of exchange rate changes on cash		9,724		(537)		(7)
Cash at beginning of period		4,796		2,967		3,461
CASH AT END OF PERIOD	$	103,628	$	4,796	$	2,967