CONDENSED PARENT COMPANY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

CONDENSED PARENT COMPANY FINANCIAL INFORMATION

CONDENSED BALANCE SHEETS

	December,31
	2020		2019
ASSETS
Current Assets
Cash	$	5,339	$	103,628
Due from related parties		32,236		32,236
Total Current Assets		37,575		135,864
Investments in subsidiaries		137,977,216		118,070,724
TOTAL ASSETS	$	138,014,791	$	118,206,588
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Other payables and accrued liabilities	$	21,521	$	191,917
Due to related parties		3,339,072		2,297,639
Total Current Liabilities		3,360,593		2,489,556
TOTAL LIABILITIES	$	3,360,593	$	2,489,556
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, 2020 and 2019	$	200,000	$	200,000
Additional paid-in capital		33,971,455		33,971,455
Statutory reserve		10,486,495		9,043,010
Retained earnings		88,116,913		78,484,535
Accumulated other comprehensive income/(loss)		2,071,488		(5,789,815)
Treasury stock, at cost: 208,890 shares as of December 31, 2020 and 2019		(192,153)		(192,153)
TOTAL SHAREHOLDERS’ EQUITY		134,654,198		115,717,032
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	138,014,791	$	118,206,588

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December,31
	2020		2019		2018
REVENUES	$	—	$	—	$	—
COST OF GOODS SOLD		—		—		—
GROSS PROFIT		—		—		—
Selling expenses		—		—		—
General and administrative expenses		769,552		383,325		263,002
Total Operating Expenses		769,552		383,325		263,002
LOSS FROM OPERATIONS		(769,552)		(383,325)		(263,002)
Financial expenses, net		(199,764)		(116,865)		268
Equity in income of subsidiaries		12,045,179		11,378,898		10,927,690
INCOME BEFORE INCOME TAX		11,075,863		10,878,708		10,664,956
INCOME TAX		—		—		—
NET INCOME		11,075,863		10,878,708		10,664,956
OTHER COMPREHENSIVE INCOME
Foreign currency translation gain (loss)		7,861,303		(1,744,846)		(6,284,660)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		7,861,303		(1,744,846)		(6,284,660)
COMPREHENSIVE INCOME (LOSS)	$	18,937,166	$	9,133,862	$	4,380,296

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December,31
	2020		2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	11,075,863	$	10,878,708	$	10,664,956
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiaries		(12,045,179)		(11,378,898)		(10,927,690)
Other payables and accrued liabilities		(170,396)		(13,083)		(1,046,423)
Due to shareholder		—		(1,663,022)		1,311,523
Due from related parties		—		(32,236)		—
Due to related parties		1,041,433		2,297,639		—
Net cash provided by / (used in) operating activities		(98,279)		89,108		2,366
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		(98,279)		89,108		2,366
Effect of exchange rate changes on cash		(10)		9,724		(537)
Cash at beginning of period		103,628		4,796		2,967
CASH AT END OF PERIOD	$	5,339	$	103,628	$	4,796