10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Mark One

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to _______

COMMISSION FILE NO. 000-55555

FORTUNE VALLEY TREASURES, INC.

(Exact name of registrant as specified in its charter)

Nevada	32-0439333
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)
No.10 of Tuanjie 2nd Road, Beice, Humen, Dongguan, China	518000
(Address of principal executive offices)	(Zip Code)

(86) 76982268999

(Address and telephone number of principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[  ]	Accelerated filer	[  ]
Non-accelerated filer	[X]	Smaller reporting company	[X]
		Emerging growth company	[X]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A

The number of shares outstanding of each of the issuer’s classes of common stock, as of May 15, 2019 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	307,750,000

Fortune Valley Treasures, Inc.

Note Regarding Forward-Looking Statements

This Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In particular, statements contained in this Report Form 10-Q, including but not limited to, the sufficiency of our cash, our ability to finance our operations and business initiatives and obtain funding for such activities; our future results of operations and financial position, business strategy and plan prospects, or costs and objectives of management for future acquisitions, are forward-looking statements. These forward-looking statements relate to our future plans, objectives, expectations and intentions and may be identified by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “seeks,” “goals,” “estimates,” “predicts,” “potential” and “continue” or similar words. Readers are cautioned that these forward-looking statements are based on our current beliefs, expectations and assumptions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified below, under Part II, Item 1A. “Risk Factors” and elsewhere in this Report on Form 10-Q. Therefore, actual results may differ materially and adversely from those expressed, projected or implied in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

USE OF CERTAIN DEFINED TERMS

In addition, unless the context otherwise requires and for the purposes of this report only, references to:

● “we,” “us,” “our,” or “our company,” the “Company” are relevant to the combined business of Fortune Valley Treasures, Inc ., a Nevada corporation, and its consolidated subsidiaries and variable interest entities;

● “ FVTI” refers to Fortune Valley Treasures, Inc ., a Nevada corporation.

● “ DIGL” refers to DaXingHuaShang Investment Group Limited , a Republic of Seychelles company and wholly-owned subsidiary of FVTI ;

● “DIL” refers to DaXingHuaShang Investment (Hong Kong) Limited, a Hong Kong company and wholly-owned subsidiary of DIGL ;

● “Qianhai DaXing” refers to Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. , a Peoples Republic of China company and wholly-owned subsidiary of DIL

● “JJGS ” refers to Jiujiu Group Stock Co., Ltd , a Republic of Seychelles company and wholly-owned subsidiary of FVTI ;

● “Jiujiu (HK)” refers to Jiujiu (HK) Industry Ltd, a Hong Kong company and wholly-owned subsidiary of JJGS ;

● “Jiujiu (Shenzhen)” refers to Q Jiujiu (Shenzhen) Industry Ltd. , a Peoples Republic of China company and wholly-owned subsidiary of Jiujiu (HK)

● “FVI” refers to Dongguan City France Vin Tout Ltd ., a PRC company and wholly-owned subsidiary of Qianhai DaXing.

● “Hong Kong” refers to the Hong Kong Special Administrative Region of the People’s Republic of China;

● “China” and “PRC” refer to the People’s Republic of China;

● “Renminbi” and “RMB” refer to the legal currency of China;

● “U.S. dollars,” “dollars” and “$” refer to the legal currency of the United States;

● “SEC” are to the U.S. Securities and Exchange Commission;

● “Exchange Act” refers to the Securities Exchange Act of 1934, as amended;

● “Securities Act” refers to the Securities Act of 1933, as amended.

2

Fortune Valley Treasures, Inc.

Index

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements(unaudited)	F-1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risks	6
Item 4.	Controls and Procedures	6
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	7
Item 1A.	Risk factors	7
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7
Item 3.	Defaults Upon Senior Securities	7
Item 4.	Mine Safety Disclosures	7
Item 5.	Other Information	7
Item 6.	Exhibits	8

3

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Our unaudited interim financial statements for the three-month period ended March 31, 2018 form part of this quarterly report. They are stated in United States Dollars (USD $) and are prepared in accordance with United States Generally Accepted Accounting Principles.

Fortune Valley Treasures, Inc.

Financial Statements

March 31, 2019

(Unaudited)

Contents	Page
Consolidated Balance Sheets	F-2
Consolidated Statement of Operations and Comprehensive Loss	F-3
Consolidated Statement of Cash Flows	F-4
Notes to Financial Statements	F-5 to F-16

F-1

FORTUNE VALLEY TREASURES, INC.

CONSOLIDATED BALANCE SHEETS

AT MARCH 31, 2019 AND DECEMBER 31, 2018

	March 31, 2019 (Unaudited)			December 31, 2018
Assets
Current assets
Cash and cash equivalents	$	157,952		$	29,999
Accounts and other receivable, net		5,709			7,706
Inventories		216,719			236,175
Prepaid expenses		17,000			8,000
Due from related parties		54,333			54,344
Prepaid taxes and taxes recoverable		2,858			2,081
Total current assets	$	454,571		$	338,305
Non-current assets
Plant and equipment, net		9,746			9,809
Right of use asset		122,806			-
Total Assets	$	587,123		$	348,114
Liabilities and Stockholders’ Equity
Current liabilities
Accounts and taxes payable		32,444			48,282
Accrued liabilities and other payables		17,146			291
Customers advances and deposits		606			-
Due to related parties		854,917			686,769
Total current liabilities	$	905,113		$	558,668
Long term liabilities		105,660			-
Total Liabilities	$	1,010,773		$	735,342
Stockholders’ Equity
Common stock (3,000,000,000 shares authorized, 307,750,100 issued and outstanding at March 31, 2019 and December 31,2018)		307,750			307,750
Additional paid in capital		-			-
Accumulated deficit		(741,025	)		(708,097	)
Accumulated other comprehensive income		9,625			13,119
Total Stockholders’ Equity		(423,650	)		(387,228	)
Total Liabilities and Stockholders’ Equity		587,123			348,114

See accompanying notes to the financial statements

F-2

Fortune Valley Treasures, Inc.

Consolidated Statements of Operations and Comprehensive Loss

 For the three months ended March 31, 2019 and 2018

	Three Months Ended
	March 31, 2019			March 31, 2018
Net revenues (related party revenue $34,220 and $0 for March 31 2019 and 2018)	$	42,020		$	13,747
Cost of revenues		28,908			7,559
Gross profit		13,112			6,188
Operating expenses:
Selling and marketing expenses
General and administrative expenses		47,239			102,619
Operating loss		(34,127	)		(96,431	)
Other income (expenses):		1,305
Interest income		38			-
Interest expense		(59	)		(491	)
		1,284			(491	)
Earnings before tax		(32,843	)		(96,922	)
Income tax		85			-
Net loss	$	(32,928	)	$	(96,922	)
Other comprehensive income:
Foreign currency translation gain		(3,493	)		(1,528	)
Comprehensive loss	$	(36,421	)	$	(98,450	)
Loss per share
Basic and diluted earnings per share	$	(0.00	)	$	(0.00	)
Basic and diluted weighted average shares outstanding		307,750,100			307,750,000

See accompanying notes to the financial statements

F-3

Fortune Valley Treasures, Inc.

Consolidated Statements of Cash Flows

 For the three months ended March 31, 2019 and 2018

(Unaudited)

	For the Three Months Ended
	March 31, 2019			March 31, 2018
Cash flows from operating activities
Net loss	$	(32,928	)	$	(96,922	)
Depreciation of fixed assets		276			1,749
Increase in accounts and other receivables		2,750			(29,759	)
Increase in inventories		24,626			6,634
Increase in advances and prepayments to suppliers		(9,736	)		(16,188	)
Increase (decrease) in accounts and other payables		(16,326	)		3,473
Net cash used in operating activities		(31,338	)		(98,637	)
Cash flows from investing activities
Purchase of plant and equipment		-			-
Net cash used in investing activities		-			-
Cash flows from financing activities
Proceeds of owners’ injection of capital		-			-
Borrowing and payments to related parties, net		159,116			93,384
Net cash provided by (used in) financing activities		159,116			93,384
Net decrease of cash and cash equivalents		127,778			(5,253	)
Effect of foreign currency translation on cash and cash equivalents		175			4,208
Cash and cash equivalents–beginning of period		29,999			77,782
Cash and cash equivalents–end of period	$	157,952		$	76,737
Supplementary cash flow information:
Interest received	$	38		$	-
Interest paid	$	-		$	491
Income taxes paid	$	-		$	-
Recognition of right of use asset	$	122,806		$	-

See accompanying notes to the financial statements

F-4

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Fortune Valley Treasures, Inc. (formerly Crypto-Services, Inc.) was incorporated in the State of Nevada on March 21, 2014. The Company’s current primary business operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors are conducted through its subsidiaries in the People’s Republic of China (“PRC”).

On January 5, 2018, the Company’s board of directors unanimously approved to modify the Company’s accounting fiscal year end from August 31 to December 31. On January 29, 2018, the Company filed a Certificate of Amendment with the State of Nevada to increase its authorized shares to 3,000,000,000.

On April 11, 2018, the Company entered into share exchange agreement by and among DaXingHuaShang Investment Group Limited (“DIGLS”) and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd whereby the Company newly issued 300,000,000 shares of its common stock in exchange for all the outstanding shares in DIGLS. This transaction has been accounted for a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the Company historical statement of stockholders’ equity has been retroactively restated to the first period presented.

DIGLS was incorporated with limited liability in the Republic of Seychelles on July 4, 2016, with share capital of $100,000 divided into 250,000,000 ordinary shares with $0.0004 par value. DIGLS wholly owns DaXingHuaShang Investment (Hong Kong) Limited (“DILHK”). DILHK was incorporated in Hong Kong on June 22, 2016 as an investment holding company with limited liability. DILHK was previously wholly owned by Mr. Yumin Lin. On November 11, 2016, Mr. Yumin Lin, transferred 100% of his ownership in DILHK to DIGLS. DILHK wholly owns Qianhai DaXingHuaShang Investment (Shenzhen)Co. Ltd. (“QHDX”) which was incorporated with limited liability on November 3, 2016 in the PRC as a wholly foreign-owned enterprise. QHDX wholly owns Dongguan City France Vin Tout Ltd. (“FVTL”). FTVL was incorporated on May 31, 2011 in the PRC with limited liability. FTVL was previously owned and controlled by Mr. Yumin Lin. FTVL has been a license to sell foods up through September 10, 2022. On November 20, 2016, Mr. Yumin Lin transferred his ownership in FTVL to QHDX for nominal consideration. The share transfers detailed above by and among Mr. Yumin Lin, DIGLS, DILHK, QHDX, and FVTL have been accounted for as a series of business combination of entities under common control; accordingly, the values in these financial statements reflect the carrying values of those entities, and no goodwill was recorded as a result of these transactions.

On March 1, 2019, we executed a Sale and Purchase Agreement (the “SP Agreement”) to acquire 100% of the shares and assets of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction contemplated in the SP Agreement was closed on March 1, 2019.

Pursuant to the SP Agreement, the Company has issued one hundred (100) shares of the Company’s common stock to JJGS to acquire 100% of the shares and assets of JJGS for a cost of US$150 reflecting the value of the rights, titles and interests in the business assets and all attendant or related assets of JJGS. Both parties agreed that this share issuance by the Company represents payment in full of US$150. Upon Closing, JJGS became the Company’s wholly owned subsidiary. We now own all of the issued and outstanding shares of JJGS, which owns all of the equity capital of Jiujiu (HK) Industry Ltd. and Jiujiu (Shenzhen) Industry Ltd. Currently, JJGS , Jiujiu (HK) Industry Ltd. and Jiujiu (Shenzhen) Industry Ltd. do not have any operations or active business, nor do they have any assets.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles (“GAAP”) in the United States. The Company’s fiscal year end is December 31. The Company’s financial statements are presented in US dollars.

F-5

Basis of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Entity Name	Incorporation date	Entity Owned By	Nature of Operation	Country of Incorporation
DaXingHuaShang Investment Group Limited (“DIGLS”)	July 4,2016	FVTI	Investment holding	Republic of Seychelles
DaXingHuaShang Investment (Hong Kong) Ltd (“DILHK”)	June 22, 2016	DIGLS	Investment holding	Hong Kong, China
Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. (“QHDX”)	November 3, 2016	DILHK	Investment holding	China
Dongguan City France Vin Tout Ltd., (“FVTL”)	May 31, 2011	QHDX	Trading of wine	China
Jiujiu Group Stock Co., Ltd. (“JJGS”)	August 17,2017	FVTI	Investment holding	Republic of Seychelles
Jiujiu (HK) Industry Ltd(“JJHK”)	August 24,2017	JJGS	Investment holding	Hong Kong, China
Jiujiu (Shenzhen) Industry Ltd(“JJSZ”)	November 16,2018	JJHK	Investment holding	China

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results may materially differ from these estimates.

Foreign currency translation and re-measurement

The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “Foreign Currency Matters ”.

The reporting currency for the Company and its subsidiaries is the US dollar. The Company, DIGLS, JJGS , JJHK and DILHK’s functional currency is the U.S. dollar; QHDX, JJSZ and FVTL use the Chinese Renminbi (“RMB”) as their functional currency.

The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows:

● Monetary assets and liabilities at exchange rates in effect at the end of each period

● Nonmonetary assets and liabilities at historical rates

● Revenue and expense items at the average rate of exchange prevailing during the period

Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations.

F-6

The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows:

● Assets and liabilities at the rate of exchange in effect at the balance sheet date

● Equities at the historical rate

● Revenue and expense items at the average rate of exchange prevailing during the period

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	March 31, 2019		March 31, 2018
Spot RMB: USD exchange rate	$	0.1485	$	0.1590
Average RMB: USD exchange rate	$	0.1491	$	0.1574

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits in banks, and any investments with maturities with less three months from inception to maturity. The Company’s primary bank deposits are located in the Hong Kong and the PRC; those deposits are not provided protection under FDIC insurance; however, management has determined that the risk of loss from insolvency by those financial institution at which it has deposited it funds is insignificant.

Accounts receivable

Accounts receivable are carried at the amounts invoiced to customers less allowance for doubtful accounts. The allowance is an estimate based on a review of individual customer accounts on a regular basis. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

The Company reviews the collectability of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators.

During the two years ended December 31, 2018 and the three months ended March 31, 2019, the Company did not experience any delinquent or uncollectible balances; accordingly, the Company did not record any valuation allowance for bad debt during this period.

F-7

Inventories

Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of sales when is has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages; the selling price of alcoholic beverages tend to increase over time; however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. The Company did not experience an impairment on inventory during the three months ended March 31, 2019.

Advances and prepayments to suppliers

In certain instances, in order to secure the supply of limited and sought-after wines and liquors, the Company will make advance payments to suppliers for the procurement of inventory. Upon physical receipt and inspection of such products from those suppliers, the applicable balances are reclassified from advances and prepayments to suppliers to inventory.

Property, plant and equipment

Equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the equipment are as follows:

Office equipment 7-20 years

The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized.

Accounting for long-lived assets

The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated.

If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Customer advances and deposits

On certain occasions, the Company may receive prepayments from downstream retailers or retails customer for wines and liquor prior to their taking possession of the Company’s products; the Company records these receipts as customer advances and deposits until it has met all the criteria for recognition of revenue including the passing possession of the products to its customer, at such point Company will reduce the customer and deposits balance and credit the Company’s revenues.

F-8

Revenue recognition

Revenues are recognized when the Company has negotiated the terms of the transaction, which includes determining and fixing the sales price, the transfer of possession of the product to the customer, the customer does not have the right to return the product, the customer is able to further sell or transfer the product onto others for economic benefit without any other obligation to be fulfilled by the Company, and the Company is reasonably assured that funds have been or will be collected from the customer. The Company’s gross revenue consists the value of goods invoiced, net of any value-added tax (VAT) or excise tax.

Advertising

All advertising costs are expensed as incurred. Advertising expense for the three months ended March 31, 2019 and March 31, 2018 were $0 and 0, respectively.

Shipping and handling

Outbound shipping and handling are expensed as incurred.

Retirement benefits

Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as a part of overhead.

Income taxes

The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital.

F-9

Earnings per share

The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Financial instruments

The Company’s accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Commitments and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

Comprehensive income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Goodwill and Other Intangible Assets”, goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis.

F-10

Recent accounting pronouncements

In January 2017, the FASB issued guidance, which amended the existing accounting standards for business combinations. The amendments clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company is required to adopt the guidance in the first quarter of fiscal year 2019. Earlier adoption is permitted. The Company has early adopted this guidance in the fourth quarter of fiscal year 2018. The implementation of this guidance did not have a material impact on the Consolidated Financial Statements.

In February 2018, the FASB issued guidance, which eliminates the stranded tax effects in other comprehensive income resulting from the TCJA. Because the amendments only relate to the reclassification of the income tax effects of the TCJA, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. The Company is currently evaluating the timing and the impact of this guidance on the Consolidated Financial Statements. In August 2017, the FASB issued guidance, which amends the existing accounting standards for derivatives and hedging. The amendment improves the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. The Company is currently evaluating the timing and impact of this guidance on the Consolidated Financial Statements.

In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to present the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is required to adopt the guidance retrospectively in the first quarter of fiscal year 2019. Earlier adoption is permitted. The Company will adopt this guidance in the first quarter of fiscal year 2019. The Company expects that the implementation of this guidance will not have a material impact on its Consolidated Financial Statements.

On March 17, 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASU 2014-09). The FASB issued the ASU in response to concerns identified by stakeholders, including those related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and (2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is “a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer.” Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). In addition, entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. The Company has determined that it acts as a principal in its primary business operations.

On March 30, 2016, the FASB issued ASU 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Management has determined that the new standard did not have a material impact on these financial statements.

Unless otherwise stated, the Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements.

NOTE 3 - GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going-concern basis. The going-concern basis assumes that assets are realized, and liabilities are settled in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon its ability to market and sell its products to generate positive operating cash flows. As of March 31, 2019 and 2018, the Company reported net losses of $741,025 and $528,458, respectively. As of March 31, 2019, the Company had working capital deficit of approximately $433,396 In addition, the Company had net cash outflows of $31,338 from operating activities during the three months March 31, 2019. These conditions still raise a substantial doubt as to whether the Company may continue as a going concern.

F-11

In an effort to improve its financial position, the Company is working to obtain new working capital through a reverse merger with a publicly listed entity and shortly thereafter the sales of equity or debt securities by the listed entity to investors for cash to fund operations and further expansion. The Company also relies on relates parties to provided financing and management services at cost that may not be the prevailing market rate for such services.

If the Company is not able to generate positive operating cash flows, raise additional capital, and retain the services of certain related parties, it may become insolvent.

NOTE 4 - ACCOUNTS AND OTHER RECEIVABLES

Accounts and other receivables consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Gross accounts and other receivables	$	5,709	$	7,706
Less: Allowance for doubtful accounts		-		-
	$	5,709	$	7,706

NOTE 5 – INVENTORIES

Inventories consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Finished goods	$	216,719	$	236,173

NOTE 6 - EQUIPMENT

Property, plant and equipment consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
At Cost:
Equipment		63,727		62,385
Less: Accumulated depreciation
Equipment		53,981		52,576
	$	9,746	$	9,809

F-12

NOTE 7 - INCOME TAXES

The Company’s primary operations are in the PRC, and in accordance with the relevant tax laws and regulations. The corporate income tax rate for each country is as follows:

● PRC tax rate is 25%.

● Hong Kong tax rate is 16.5%

● Seychelles is on permanent tax holiday

The Company is registered the British Virgin Islands, which is a tax-exempt region.

The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for three months ended March 31, 2019 and March 31, 2018:

	March 31, 2019			March 31, 2018
Income attributed to PRC operations	$	(23,315	)	$	(53,650	)
Loss attributed to Seychelles and HK		0			(119	)
Loss attributed to US		(9,528	)		(43,153	)
Loss before tax		(32,843	)		(96,922	)
PRC Statutory Tax at 25% Rate		(5,829	)		(13,412	)
Effect of Seychelles, PRC, HK, deductions and other reconciling items		5,914			13,412
Income tax	$	85		$	-

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for three months ended March 31, 2019 and 2018:

	March 31,2019			March 31,2018
U.S. federal statutory income tax rate		21.0	%		21.0	%
Higher rates in PRC, net		4.0	%		-9.0	%
Net operating losses in PRC and other jurisdictions		-23.9	%		-12.0	%
The Company’s effective tax rate		1.1	%		0	%

F-13

NOTE 8- RELATED PARTY TRANSACTIONS?

Amounts due to related parties as of March 31, 2019 and December 31, 2018:

		March 31, 2019		December 31, 2018
Mr. Yumin Lin	Director, CEO, Shareholder	$	743,868	$	554,061
Mr. Sheng	Former Director of the Company		-
Ms. Qingmei Lin	Mr. Yumin Lin’s wife		4,455		28,350
Mr. Naiyong Luo	Director of DIGL		80,324		78,639
Mr.Hongwei Ye			26,270		25,719
		$	854,917	$	686,769

The outstanding payables due to Mr. Yumin Lin are comprised of working capital advances and borrowings. These amounts are due on demand and are non-interest bearing.

The amounts due to Ms. Qingmei Lin are for office rental expenses. The Company’s operating facilities are located within a building owned by Ms. Qingmei Lin.

The Company sold its wine and liquor products to Mr. Naiyong Luo in the amounts of $34,220 and $41,565 for March 31, 2019 and 2018. As of March 31, 2019, the Company had a customer deposit from Mr. Luo in the amount of $80,324. These sales occurred in the normal course of business. Mr. Luo is a shareholder of Gaosheng Group Co., Ltd., the prior owner of DIGLS.

The Company sold its wine and liquor products to Mr. Hongwei Ye in the amounts of $0 and $5,020 for the years ended March 31, 2019 and 2018. As of March 31, 2018, the Company had a customer deposit from Mr. Ye in the amount of $26,270. These sales occurred in the normal course of business.

As of March 31,2019, the note payable due to Mr. Yumin Lin amounted to $743,868. These note payable were unsecured, non-interest bearing and due on demand. The imputed interest on these notes was deemed immaterial.

NOTE 9 – LEASE COMMITMENTS

The Company has a non-cancelable operating lease agreement with Ms. Qingmei Lin, a related party, for the premises in Dongguan City, PRC. The agreement covers the period from May 1, 2017 to April 30, 2027 which increased the space covered in prior agreements. The monthly rent expense is $3,811 (RMB 25,000). but effective as of May 1, 2018 was lowered to $2,323 (RMB15,000) based on agreement between Ms. Qingmei and Company. but effective as of January 1, 2019 was lowered to $1,491 (RMB10,000) based on agreement between Ms. Qingmei and Company.The agreement does not call for a rental deposit equivalent. The Company discounted its lease using an expected borrowing rate of 4.35% per annum.

Minimum operating lease commitment for the agreement is as follows:

2019		17,892
2020		17,892
2021		17,892
2022		17,892
Thereafter:		77,532
Total future payments	$	149,100
Less: discount		(26,294	)
Right of use asset	$	122,806

F-14

NOTE 10 - RISKS

Credit risk

The Company is subject to risk borne from credit extended to customers.

FTVL and QHDX bank deposits are with banks located in the PRC. JJHK’s bank account is with located in Hong Kong. DIGLS does not have any bank accounts. The bank accounts that the Company uses that that are located outside of the U.S. do not carry federal deposit insurance.

Interest risk

The Company is subject to interest rate risk when its loans become due and require refinancing.

Economic and political risks

The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. As alcoholic beverages are considered a luxury item, they may be subject to political pressure and risks. The PRC has government from time to time limited the amount of import of foreign alcoholic beverages based on their relationships with those foreign countries. The Company’s results of operations may be materially adversely affected if the are unable to procure such products because the PRC government has limited the amount of imports.

F-15

Inflation risk

Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of wine and liquors that cannot be passed on the Company’s customers could adversely impact the Company’s results of operations.

Concentrations risks

In 2018, the Company had a concentration of risk in its supply of raw materials, one vendor supplied all of the Company’s purchases for finished goods inventory.

NOTE 11 - SUBSEQUENT EVENTS

Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.

On March 1, 2019, we executed a Sale and Purchase Agreement (the “SP Agreement”) to acquire 100% of the shares and assets of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction contemplated in the Agreement was closed on March 1, 2019.

Except for the above-mentioned material subsequent events and disclosures found in these financial statements, there were no other events that management deemed necessary for disclosure as a material subsequent event.

F-16

Item 2.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

Company Overview

Fortune Valley Treasures, Inc. (“FVTI” or the “Company”), formerly Crypto-Services, Inc. (“CRYT”), was incorporated in the State of Nevada on March 21, 2014. We were initially incorporated to offer users with up-to-date information on digital currencies worldwide online.

On July 22, 2015, the Company filed an amendment to its Articles of Incorporation with the Nevada Secretary of State changing its name from Crypto-Services, Inc. to Fortune Valley Treasures, Inc.

As previously reported in a Current Report on Form 8-K filed on December 14, 2016, we entered into a Sale and Purchase Agreement (the “Original Agreement”) with DaXingHuaShang Investment Group Limited (“DIGL”) and its shareholders, Mr. Yumin Lin, Gaosheng Group Co., Ltd. and China Kaipeng Group Co., Ltd. to acquire 100% of the shares and assets of DIGL, a company incorporated under the laws of the Republic of Seychelles. Pursuant to the Original Agreement, FVTI had agreed to issue Three Hundred Million (300,000,000) shares of common stock of FVTI to the existing stockholders of DIGL to acquire 100% of the shares of DIGL.

On December 14, 2016, in anticipation of the reverse merger between the Company and DIGL, Shen Xinlong resigned from the position of President, Secretary and Treasurer but remained on the Board as a Director. Additionally, the Company announced the appointment of Mr. Yumin Lin to the Board of Directors, and as President, Secretary and Treasurer.

On April 11, 2018, the Company entered into a termination agreement (“Termination Agreement”) with DIGL, terminating the Original Agreement and all transactions contemplated under the Original Agreement.

On April 11, 2018, the Company entered into a Share Exchange Agreement (the “Agreement”) to acquire 100% of the outstanding equity securities of DIGL. Pursuant to the Agreement, the Company agreed to issue 300 million (300,000,000) shares of common stock, par value $0.001 of the Company to the existing stockholders of DIGL to acquire 100% outstanding equity securities of DIGL (the “Share Exchange”). The Share Exchange closed on April 19, 2018

Immediately following the Share Exchange, the business of DIGL became our business. DIGL is engaged in the business of retail and wholesale of imported wine products in China. We now own all of the issued and outstanding shares of DIGL, which owns all of the equity capital of DaXingHuaShang Investment (Hong Kong) Limited, Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd., and Dongguan City France Vin Tout Ltd.

On March 1, 2019, we executed a Sale and Purchase Agreement (the “SP Agreement”) to acquire 100% of the shares and assets of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction contemplated in the SP Agreement was closed on March 1, 2019.

Pursuant to the SP Agreement, the Company has issued one hundred (100) shares of the Company’s shares. The transaction contemplated in the SP Agreement was closed on March 1, 2019.now own all of the issued and outstanding shares of DIG interests in the business assets and all attendant or related assets of JJGS. Both parties agreed that this share issuance by the Company represents payment in full of US$150. Upon Closing, JJGS became the Company’s wholly owned subsidiary. We now own all of the issued and outstanding shares of JJGS, which owns all of the equity capital of Jiujiu (HK) Industry Ltd. and Jiujiu (Shenzhen) Industry Ltd. Currently, JJGS , Jiujiu (HK) Industry Ltd. and Jiujiu (Shenzhen) Industry Ltd. do not have any operations or active business, nor do they have any assets.

Currently, we are engaged in the retail and wholesale wine product business in Dongguan City, Guangdong Province. Our office is located at No.10 of Tuanjie 2nd Road, Beice, Humen, Dongguan, 518000, China. Our telephone number is: + (86) 76982268999

Results of Operations

	Three months ended March 31,
	2019			2018			Change
Revenue	$	42,020		$	13,747		$	28,273
Cost of revenue		28,908			7,559			21,349
Gross profit		13,112			6,188			6,924
Gross profit (%)		31	%		45	%
Operating expense		47,239			102,619			(55,380	)
Other income(expense)		1,284			(491	)		1,775
Provision for income taxes		85			-			85
Foreign currency translation gain		(3,493	)		(1,528	)		(1,965	)
Comprehensive loss	$	(36,421	)	$	(98,450	)	$	62,029

4

Revenue

Net revenues was $42,020 for three months ended March 31, 2019, an increase of $28,273 as compared to that of $13,747 for the three months ended March 31, 2018. The reason for the increase was that the company sold. 

Cost of revenue

Cost of revenue was $28,908 for the three months ended March 31, 2019, an increase of $21,349 from $7,559 as compared to the three months ended March 31, 2018. The increase was due to an increase in related sales revenue.

Gross profit

Gross profit was 31% ($13,112) and 45% ($6,188)  for the three months ended March 31, 2019 and 2018, respectively.

Operating expenses

General and administrative expenses was $47,239 for the three months ended March 31, 2019, a decrease of $55,380 as compared to that of $102,619 for the three months ended March 31, 2018. The decrease was primarily due to a decrease in general and administrative expense related to reporting and maintenance costs of being a publicly listed company.

Net loss

Net loss was $36,421 for the three months ended March 31, 2019, a decrease of $ 62,029 compared to that of 2018, primarily as the result of a decrease in operating expenses.

Liquidity and Capital Resources

Working Capital

	March 31, 2019			December 31, 2018			Change
Total current assets	$	454,571		$	338,305		$	116,266
Total current liabilities		905,113			735,342			169,771
Working capital	$	(450,542	)	$	(397,037	)	$	(53,505	)

As of March 31, 2019, we had cash and cash equivalents in an amount of $76,737. We have financed our operations primarily though borrowings from parties related to us. The change in working capital was primarily from an increase in the amount due from related party at $83,575. 

Cash Flows

	Three Ended March 31,
	2019			2018			Change
Cash Flows used in Operating Activities	$	(31,338	)	$	(98,637	)	$	67,299
Cash Flows used in Investing Activities		-			-			-
Cash Flows provided by Financing Activities		159,116			93,384			65,732
Net Decrease in Cash During Period	$	127,778		$	(5,253	)	$	133,031

5

Cash Flow from Operating Activities

For the three months ended March 31, 2019, net cash flows used in operating activities consisted of a net loss of $32,928 and was reduced by depreciation of $276, and a net change of operating assets and liabilities of $31,338.  For the three months ended March 31, 2018, net cash flows provided in operating  consisted of a net loss of $96,922 and was reduced by depreciation of $1,749 and a net change of operating assets and liabilities of $98,637.

Cash Flow from Financing Activities

Net cash provided by financing for the three months ended March 31, 2019 was $159,116, as compared to that of $93,384 for the three months ended March 31, 2018. The increase in net cash provided by financing activities was mainly due to the Company’s borrowing loan from related parties.

Critical Accounting Policy and Estimates

In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with U.S. generally accepted accounting principles. We base our estimates on historical experience, when available, and on other various assumptions that are believed to be reasonable under the circumstances. Actual results could differ significantly from those estimates under different assumptions and conditions.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Item 3. Quantitative and Qualitative Disclosure About Market Risk.

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our president (our principal executive officer and principal financial officer), as appropriate to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision and with the participation of our management, including our president (our principal executive officer and principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures as of quarter covered by this report. Based on the evaluation of these disclosure controls and procedures the president (our principal executive officer and principal financial officer and principal accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report due to we did not maintain effective controls over the control environment. Specifically, the Board does not currently have a director who qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. The Company does not have sufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines. The Company also lacks accounting personnel with technical knowledge in certain debt and equity transactions and qualified personnel with an appropriate level of SEC filing knowledge and experience. Because of the size of the Company’s administrative staff, controls related to the segregation of certain duties have not been developed and the Company has not been able to adhere to them. Additionally, the Company does not have a well-established procedure to identify, approve, and report related party transactions. 

Changes in Internal Controls

During the period covered by this report, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

6

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Item 1A. Risk Factors

Not applicable to a smaller reporting company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds for the three months ended March 31, 2019

There were no unregistered sales of the Company’s equity securities during the three months ended March 31, 2019 that were not previously disclosed in reports filed with the SEC.

Item 3. Defaults upon senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

7

Item 6. Exhibits

EXHIBIT INDEX

The exhibits listed on the Exhibit Index are provided as part of this report.

Exhibit Number	Description
3.1*	Articles of Incorporation, incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, as amended; filed with the SEC on December 5, 2014.
3.2*	Bylaws, incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, as amended; filed with the SEC on December 5, 2014
31.1**	Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a)
31.2**	Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a)
32.1***	Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350
32.2***	Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

* Previously filed

** Filed herewith.

*** In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 herewith are deemed to accompany this Form 10-Q and will not be deemed filed for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act.

8

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Fortune Valley Treasures, Inc.
Date: May 15, 2019	By:	/s/ Yumin Lin
		Yumin Lin
		Chief Executive Officer
		(Principal Executive Officer)

9

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT
OF 2002

I, Yumin Lin, certify that:

1.	I have reviewed this Report on Form 10-Q for the quarter ended March 31, 2019 of Fortune Valley Treasures, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2019

/s/ Yumin Lin

Yumin Lin

Chief Executive Officer and Director

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT
OF 2002

I, Yumin Lin, certify that:

1.	I have reviewed this Report on Form 10-Q for the quarter ended March 31, 2019 of Fortune Valley Treasures, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2019

/s/ Yumin Lin

Yumin Lin

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Report of Fortune Valley Treasures, Inc. (the “Registrant”) on Form 10-Q for the period ending March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Yumin Lin, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: May 15, 2019	By:	/s/ Yumin Lin
		Yumin Lin
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Report of Fortune Valley Treasures, Inc. (the “Registrant”) on Form 10-Q for the period ending March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Yumin Lin, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: May 15, 2019	By:	/s/ Yumin Lin
		Yumin Lin
		Chief Financial Officer
		(Principal Financial Officer)

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 15, 2019
Document and Entity Information:
Entity Registrant Name	Fortune Valley Treasures, Inc.
Entity Central Index Key	0001626745
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		307,750,000
Trading Symbol	FVTI
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

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Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 157,952	$ 29,999
Accounts and other receivable, net	5,709	7,706
Inventories	216,719	236,175
Prepaid expenses	17,000	8,000
Due from related parties	54,333	54,344
Prepaid taxes and taxes recoverable	2,858	2,081
Total current assets	454,571	338,305
Non-current assets
Plant and equipment, net	9,746	9,809
Right of use asset	122,806
Total Assets	587,123	348,114
Current liabilities
Accounts and taxes payable	32,444	48,282
Accrued liabilities and other payables	17,146	291
Customers advances and deposits	606
Due to related parties	854,917	686,769
Total current liabilities	905,113	558,668
Long term liabilities	105,660
Total Liabilities	1,010,773	735,342
Stockholders' Equity
Common stock (3,000,000,000 shares authorized, 307,750,100 issued and outstanding at March 31, 2019 and December 31,2018)	307,750	307,750
Additional paid in capital
Accumulated deficit	(741,025)	(708,097)
Accumulated other comprehensive income	9,625	13,119
Total Stockholders' Equity	(423,650)	(387,228)
Total Liabilities and Stockholders' Equity	$ 587,123	$ 348,114

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Consolidated Balance Sheets (Parenthetical) - shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, shares authorized	3,000,000,000	3,000,000,000
Common stock, shares issued	307,750,100	307,750,100
Common stock, shares outstanding	307,750,100	307,750,100

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Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net revenues (related party revenue $34,220 and $0 for March 31 2019 and 2018)	$ 42,020	$ 13,747
Cost of revenues	28,908	7,559
Gross profit	13,112	6,188
Operating expenses:
General and administrative expenses	47,239	102,619
Operating loss	(34,127)	(96,431)
Other income (expenses):	1,305
Interest income	38
Interest expense	(59)	(491)
Total Other income (expense)	1,284	(491)
Earnings before tax	(32,843)	(96,922)
Income tax	85
Net loss	(32,928)	(96,922)
Other comprehensive income:
Foreign currency translation gain	(3,493)	(1,528)
Comprehensive loss	$ (36,421)	$ (98,450)
Loss per share
Basic and diluted earnings per share	$ (0.00)	$ (0.00)
Basic and diluted weighted average shares outstanding	307,750,100	307,750,000

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Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Related party revenue	$ 34,220	$ 0

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net loss	$ (32,928)	$ (96,922)
Depreciation of fixed assets	276	1,749
Increase in accounts and other receivables	2,750	(29,759)
Increase in inventories	24,626	6,634
Increase in advances and prepayments to suppliers	(9,736)	(16,188)
Increase (decrease) in accounts and other payables	(16,326)	3,473
Net cash used in operating activities	(31,338)	(98,637)
Cash flows from investing activities
Purchase of plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds of owners' injection of capital
Borrowing and payments to related parties, net	159,116	93,384
Net cash provided by (used in) financing activities	159,116	93,384
Net decrease of cash and cash equivalents	127,778	(5,253)
Effect of foreign currency translation on cash and cash equivalents	175	4,208
Cash and cash equivalents-beginning of period	29,999	77,782
Cash and cash equivalents-end of period	157,952	76,737
Supplementary cash flow information:
Interest received	38
Interest paid		(491)
Income taxes paid
Recognition of right of use asset	$ 122,806

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Organization and Description of Business

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Fortune Valley Treasures, Inc. (formerly Crypto-Services, Inc.) was incorporated in the State of Nevada on March 21, 2014. The Company’s current primary business operations of wholesale distribution and retail sales of alcoholic beverages of wine and distilled liquors are conducted through its subsidiaries in the People’s Republic of China (“PRC”).

On January 5, 2018, the Company’s board of directors unanimously approved to modify the Company’s accounting fiscal year end from August 31 to December 31. On January 29, 2018, the Company filed a Certificate of Amendment with the State of Nevada to increase its authorized shares to 3,000,000,000.

On April 11, 2018, the Company entered into share exchange agreement by and among DaXingHuaShang Investment Group Limited (“DIGLS”) and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd whereby the Company newly issued 300,000,000 shares of its common stock in exchange for all the outstanding shares in DIGLS. This transaction has been accounted for a reverse takeover transaction and a recapitalization of the Company whereby the Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the Company historical statement of stockholders’ equity has been retroactively restated to the first period presented.

DIGLS was incorporated with limited liability in the Republic of Seychelles on July 4, 2016, with share capital of $100,000 divided into 250,000,000 ordinary shares with $0.0004 par value. DIGLS wholly owns DaXingHuaShang Investment (Hong Kong) Limited (“DILHK”). DILHK was incorporated in Hong Kong on June 22, 2016 as an investment holding company with limited liability. DILHK was previously wholly owned by Mr. Yumin Lin. On November 11, 2016, Mr. Yumin Lin, transferred 100% of his ownership in DILHK to DIGLS. DILHK wholly owns Qianhai DaXingHuaShang Investment (Shenzhen)Co. Ltd. (“QHDX”) which was incorporated with limited liability on November 3, 2016 in the PRC as a wholly foreign-owned enterprise. QHDX wholly owns Dongguan City France Vin Tout Ltd. (“FVTL”). FTVL was incorporated on May 31, 2011 in the PRC with limited liability. FTVL was previously owned and controlled by Mr. Yumin Lin. FTVL has been a license to sell foods up through September 10, 2022. On November 20, 2016, Mr. Yumin Lin transferred his ownership in FTVL to QHDX for nominal consideration. The share transfers detailed above by and among Mr. Yumin Lin, DIGLS, DILHK, QHDX, and FVTL have been accounted for as a series of business combination of entities under common control; accordingly, the values in these financial statements reflect the carrying values of those entities, and no goodwill was recorded as a result of these transactions.

On March 1, 2019, we executed a Sale and Purchase Agreement (the “SP Agreement”) to acquire 100% of the shares and assets of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction contemplated in the SP Agreement was closed on March 1, 2019.

Pursuant to the SP Agreement, the Company has issued one hundred (100) shares of the Company’s common stock to JJGS to acquire 100% of the shares and assets of JJGS for a cost of US$150 reflecting the value of the rights, titles and interests in the business assets and all attendant or related assets of JJGS. Both parties agreed that this share issuance by the Company represents payment in full of US$150. Upon Closing, JJGS became the Company’s wholly owned subsidiary. We now own all of the issued and outstanding shares of JJGS, which owns all of the equity capital of Jiujiu (HK) Industry Ltd. and Jiujiu (Shenzhen) Industry Ltd. Currently, JJGS , Jiujiu (HK) Industry Ltd. and Jiujiu (Shenzhen) Industry Ltd. do not have any operations or active business, nor do they have any assets.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles (“GAAP”) in the United States. The Company’s fiscal year end is December 31. The Company’s financial statements are presented in US dollars.

Basis of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Entity Name	Incorporation date	Entity Owned By	Nature of Operation	Country of Incorporation
DaXingHuaShang Investment Group Limited (“DIGLS”)	July 4,2016	FVTI	Investment holding	Republic of Seychelles
DaXingHuaShang Investment (Hong Kong) Ltd (“DILHK”)	June 22, 2016	DIGLS	Investment holding	Hong Kong, China
Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. (“QHDX”)	November 3, 2016	DILHK	Investment holding	China
Dongguan City France Vin Tout Ltd., (“FVTL”)	May 31, 2011	QHDX	Trading of wine	China
Jiujiu Group Stock Co., Ltd. (“JJGS”)	August 17,2017	FVTI	Investment holding	Republic of Seychelles
Jiujiu (HK) Industry Ltd(“JJHK”)	August 24,2017	JJGS	Investment holding	Hong Kong, China
Jiujiu (Shenzhen) Industry Ltd(“JJSZ”)	November 16,2018	JJHK	Investment holding	China

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results may materially differ from these estimates.

Foreign currency translation and re-measurement

The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “Foreign Currency Matters ”.

The reporting currency for the Company and its subsidiaries is the US dollar. The Company, DIGLS, JJGS , JJHK and DILHK’s functional currency is the U.S. dollar; QHDX, JJSZ and FVTL use the Chinese Renminbi (“RMB”) as their functional currency.

The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows:

● Monetary assets and liabilities at exchange rates in effect at the end of each period

● Nonmonetary assets and liabilities at historical rates

● Revenue and expense items at the average rate of exchange prevailing during the period

Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations.

The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows:

● Assets and liabilities at the rate of exchange in effect at the balance sheet date

● Equities at the historical rate

● Revenue and expense items at the average rate of exchange prevailing during the period

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	March 31, 2019		March 31, 2018
Spot RMB: USD exchange rate	$	0.1485	$	0.1590
Average RMB: USD exchange rate	$	0.1491	$	0.1574

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits in banks, and any investments with maturities with less three months from inception to maturity. The Company’s primary bank deposits are located in the Hong Kong and the PRC; those deposits are not provided protection under FDIC insurance; however, management has determined that the risk of loss from insolvency by those financial institution at which it has deposited it funds is insignificant.

Accounts receivable

Accounts receivable are carried at the amounts invoiced to customers less allowance for doubtful accounts. The allowance is an estimate based on a review of individual customer accounts on a regular basis. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

The Company reviews the collectability of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators.

During the two years ended December 31, 2018 and the three months ended March 31, 2019, the Company did not experience any delinquent or uncollectible balances; accordingly, the Company did not record any valuation allowance for bad debt during this period.

Inventories

Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of sales when is has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages; the selling price of alcoholic beverages tend to increase over time; however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. The Company did not experience an impairment on inventory during the three months ended March 31, 2019.

Advances and prepayments to suppliers

In certain instances, in order to secure the supply of limited and sought-after wines and liquors, the Company will make advance payments to suppliers for the procurement of inventory. Upon physical receipt and inspection of such products from those suppliers, the applicable balances are reclassified from advances and prepayments to suppliers to inventory.

Property, plant and equipment

Equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the equipment are as follows:

Office equipment 7-20 years

The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized.

Accounting for long-lived assets

The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated.

If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Customer advances and deposits

On certain occasions, the Company may receive prepayments from downstream retailers or retails customer for wines and liquor prior to their taking possession of the Company’s products; the Company records these receipts as customer advances and deposits until it has met all the criteria for recognition of revenue including the passing possession of the products to its customer, at such point Company will reduce the customer and deposits balance and credit the Company’s revenues.

Revenue recognition

Revenues are recognized when the Company has negotiated the terms of the transaction, which includes determining and fixing the sales price, the transfer of possession of the product to the customer, the customer does not have the right to return the product, the customer is able to further sell or transfer the product onto others for economic benefit without any other obligation to be fulfilled by the Company, and the Company is reasonably assured that funds have been or will be collected from the customer. The Company’s gross revenue consists the value of goods invoiced, net of any value-added tax (VAT) or excise tax.

Advertising

All advertising costs are expensed as incurred. Advertising expense for the three months ended March 31, 2019 and March 31, 2018 were $0 and 0, respectively.

Shipping and handling

Outbound shipping and handling are expensed as incurred.

Retirement benefits

Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as a part of overhead.

Income taxes

The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital.

Earnings per share

The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Financial instruments

The Company’s accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Commitments and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

Comprehensive income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Goodwill and Other Intangible Assets”, goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis.

Recent accounting pronouncements

In January 2017, the FASB issued guidance, which amended the existing accounting standards for business combinations. The amendments clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company is required to adopt the guidance in the first quarter of fiscal year 2019. Earlier adoption is permitted. The Company has early adopted this guidance in the fourth quarter of fiscal year 2018. The implementation of this guidance did not have a material impact on the Consolidated Financial Statements.

In February 2018, the FASB issued guidance, which eliminates the stranded tax effects in other comprehensive income resulting from the TCJA. Because the amendments only relate to the reclassification of the income tax effects of the TCJA, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. The Company is currently evaluating the timing and the impact of this guidance on the Consolidated Financial Statements. In August 2017, the FASB issued guidance, which amends the existing accounting standards for derivatives and hedging. The amendment improves the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. The Company is currently evaluating the timing and impact of this guidance on the Consolidated Financial Statements.

In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to present the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is required to adopt the guidance retrospectively in the first quarter of fiscal year 2019. Earlier adoption is permitted. The Company will adopt this guidance in the first quarter of fiscal year 2019. The Company expects that the implementation of this guidance will not have a material impact on its Consolidated Financial Statements.

On March 17, 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASU 2014-09). The FASB issued the ASU in response to concerns identified by stakeholders, including those related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and (2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is “a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer.” Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). In addition, entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. The Company has determined that it acts as a principal in its primary business operations.

On March 30, 2016, the FASB issued ASU 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Management has determined that the new standard did not have a material impact on these financial statements.

Unless otherwise stated, the Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements.

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Going Concern

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

NOTE 3 - GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going-concern basis. The going-concern basis assumes that assets are realized, and liabilities are settled in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to continue as a going concern depends upon its ability to market and sell its products to generate positive operating cash flows. As of March 31, 2019 and 2018, the Company reported net losses of $741,025 and $528,458, respectively. As of March 31, 2019, the Company had working capital deficit of approximately $433,396 In addition, the Company had net cash outflows of $31,338 from operating activities during the three months March 31, 2019. These conditions still raise a substantial doubt as to whether the Company may continue as a going concern.

In an effort to improve its financial position, the Company is working to obtain new working capital through a reverse merger with a publicly listed entity and shortly thereafter the sales of equity or debt securities by the listed entity to investors for cash to fund operations and further expansion. The Company also relies on relates parties to provided financing and management services at cost that may not be the prevailing market rate for such services.

If the Company is not able to generate positive operating cash flows, raise additional capital, and retain the services of certain related parties, it may become insolvent.

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Accounts and Other Receivables

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Accounts and Other Receivables

NOTE 4 - ACCOUNTS AND OTHER RECEIVABLES

Accounts and other receivables consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Gross accounts and other receivables	$	5,709	$	7,706
Less: Allowance for doubtful accounts		-		-
	$	5,709	$	7,706

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Inventories

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Inventories

NOTE 5 – INVENTORIES

Inventories consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Finished goods	$	216,719	$	236,173

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Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Equipment

NOTE 6 - EQUIPMENT

Property, plant and equipment consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
At Cost:
Equipment		63,727		62,385
Less: Accumulated depreciation
Equipment		53,981		52,576
	$	9,746	$	9,809

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7 - INCOME TAXES

The Company’s primary operations are in the PRC, and in accordance with the relevant tax laws and regulations. The corporate income tax rate for each country is as follows:

● PRC tax rate is 25%.

● Hong Kong tax rate is 16.5%

● Seychelles is on permanent tax holiday

The Company is registered the British Virgin Islands, which is a tax-exempt region.

The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for three months ended March 31, 2019 and March 31, 2018:

	March 31, 2019			March 31, 2018
Income attributed to PRC operations	$	(23,315	)	$	(53,650	)
Loss attributed to Seychelles and HK		0			(119	)
Loss attributed to US		(9,528	)		(43,153	)
Loss before tax		(32,843	)		(96,922	)
PRC Statutory Tax at 25% Rate		(5,829	)		(13,412	)
Effect of Seychelles, PRC, HK, deductions and other reconciling items		5,914			13,412
Income tax	$	85		$	-

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for three months ended March 31, 2019 and 2018:

	March 31,2019			March 31,2018
U.S. federal statutory income tax rate		21.0	%		21.0	%
Higher rates in PRC, net		4.0	%		-9.0	%
Net operating losses in PRC and other jurisdictions		-23.9	%		-12.0	%
The Company’s effective tax rate		1.1	%		0	%

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Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 8- RELATED PARTY TRANSACTIONS?

Amounts due to related parties as of March 31, 2019 and December 31, 2018:

		March 31, 2019		December 31, 2018
Mr. Yumin Lin	Director, CEO, Shareholder	$	743,868	$	554,061
Mr. Sheng	Former Director of the Company		-
Ms. Qingmei Lin	Mr. Yumin Lin’s wife		4,455		28,350
Mr. Naiyong Luo	Director of DIGL		80,324		78,639
Mr.Hongwei Ye			26,270		25,719
		$	854,917	$	686,769

The outstanding payables due to Mr. Yumin Lin are comprised of working capital advances and borrowings. These amounts are due on demand and are non-interest bearing.

The amounts due to Ms. Qingmei Lin are for office rental expenses. The Company’s operating facilities are located within a building owned by Ms. Qingmei Lin.

The Company sold its wine and liquor products to Mr. Naiyong Luo in the amounts of $34,220 and $41,565 for March 31, 2019 and 2018. As of March 31, 2019, the Company had a customer deposit from Mr. Luo in the amount of $80,324. These sales occurred in the normal course of business. Mr. Luo is a shareholder of Gaosheng Group Co., Ltd., the prior owner of DIGLS.

The Company sold its wine and liquor products to Mr. Hongwei Ye in the amounts of $0 and $5,020 for the years ended March 31, 2019 and 2018. As of March 31, 2018, the Company had a customer deposit from Mr. Ye in the amount of $26,270. These sales occurred in the normal course of business.

As of March 31,2019, the note payable due to Mr. Yumin Lin amounted to $743,868. These note payable were unsecured, non-interest bearing and due on demand. The imputed interest on these notes was deemed immaterial.

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Lease Commitments

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

NOTE 9 – LEASE COMMITMENTS

The Company has a non-cancelable operating lease agreement with Ms. Qingmei Lin, a related party, for the premises in Dongguan City, PRC. The agreement covers the period from May 1, 2017 to April 30, 2027 which increased the space covered in prior agreements. The monthly rent expense is $3,811 (RMB 25,000). but effective as of May 1, 2018 was lowered to $2,323 (RMB15,000) based on agreement between Ms. Qingmei and Company. but effective as of January 1, 2019 was lowered to $1,491 (RMB10,000) based on agreement between Ms. Qingmei and Company.The agreement does not call for a rental deposit equivalent. The Company discounted its lease using an expected borrowing rate of 4.35% per annum.

Minimum operating lease commitment for the agreement is as follows:

2019		17,892
2020		17,892
2021		17,892
2022		17,892
Thereafter:		77,532
Total future payments	$	149,100
Less: discount		(26,294	)
Right of use asset	$	122,806

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Risks

3 Months Ended

Mar. 31, 2019

Risks and Uncertainties [Abstract]

Risks

NOTE 10 - RISKS

Credit risk

The Company is subject to risk borne from credit extended to customers.

FTVL and QHDX bank deposits are with banks located in the PRC. JJHK’s bank account is with located in Hong Kong. DIGLS does not have any bank accounts. The bank accounts that the Company uses that that are located outside of the U.S. do not carry federal deposit insurance.

Interest risk

The Company is subject to interest rate risk when its loans become due and require refinancing.

Economic and political risks

The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC. As alcoholic beverages are considered a luxury item, they may be subject to political pressure and risks. The PRC has government from time to time limited the amount of import of foreign alcoholic beverages based on their relationships with those foreign countries. The Company’s results of operations may be materially adversely affected if the are unable to procure such products because the PRC government has limited the amount of imports.

Inflation risk

Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of wine and liquors that cannot be passed on the Company’s customers could adversely impact the Company’s results of operations.

Concentrations risks

In 2018, the Company had a concentration of risk in its supply of raw materials, one vendor supplied all of the Company’s purchases for finished goods inventory.

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Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

NOTE 11 - SUBSEQUENT EVENTS

Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.

On March 1, 2019, we executed a Sale and Purchase Agreement (the “SP Agreement”) to acquire 100% of the shares and assets of Jiujiu Group Stock Co., Ltd. (“JJGS”), a company incorporated under the laws of the Republic of Seychelles. The transaction contemplated in the Agreement was closed on March 1, 2019.

Except for the above-mentioned material subsequent events and disclosures found in these financial statements, there were no other events that management deemed necessary for disclosure as a material subsequent event.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation

These consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual basis of accounting in accordance with the generally accepted accounting principles (“GAAP”) in the United States. The Company’s fiscal year end is December 31. The Company’s financial statements are presented in US dollars.

Basis of Consolidation

Basis of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Entity Name	Incorporation date	Entity Owned By	Nature of Operation	Country of Incorporation
DaXingHuaShang Investment Group Limited (“DIGLS”)	July 4,2016	FVTI	Investment holding	Republic of Seychelles
DaXingHuaShang Investment (Hong Kong) Ltd (“DILHK”)	June 22, 2016	DIGLS	Investment holding	Hong Kong, China
Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. (“QHDX”)	November 3, 2016	DILHK	Investment holding	China
Dongguan City France Vin Tout Ltd., (“FVTL”)	May 31, 2011	QHDX	Trading of wine	China
Jiujiu Group Stock Co., Ltd. (“JJGS”)	August 17,2017	FVTI	Investment holding	Republic of Seychelles
Jiujiu (HK) Industry Ltd(“JJHK”)	August 24,2017	JJGS	Investment holding	Hong Kong, China
Jiujiu (Shenzhen) Industry Ltd(“JJSZ”)	November 16,2018	JJHK	Investment holding	China

Use of Estimates

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results may materially differ from these estimates.

Foreign Currency Translation and Re-measurement

Foreign currency translation and re-measurement

The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, “Foreign Currency Matters ”.

The reporting currency for the Company and its subsidiaries is the US dollar. The Company, DIGLS, JJGS , JJHK and DILHK’s functional currency is the U.S. dollar; QHDX, JJSZ and FVTL use the Chinese Renminbi (“RMB”) as their functional currency.

The Company’s subsidiaries, whose records are not maintained in that company’s functional currency, re-measure their records into their functional currency as follows:

● Monetary assets and liabilities at exchange rates in effect at the end of each period

● Nonmonetary assets and liabilities at historical rates

● Revenue and expense items at the average rate of exchange prevailing during the period

Gains and losses from these re-measurements were not significant and have been included in the Company’s results of operations.

The Company’s subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows:

● Assets and liabilities at the rate of exchange in effect at the balance sheet date

● Equities at the historical rate

● Revenue and expense items at the average rate of exchange prevailing during the period

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	March 31, 2019		March 31, 2018
Spot RMB: USD exchange rate	$	0.1485	$	0.1590
Average RMB: USD exchange rate	$	0.1491	$	0.1574

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.

Cash and Cash Equivalents

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits in banks, and any investments with maturities with less three months from inception to maturity. The Company’s primary bank deposits are located in the Hong Kong and the PRC; those deposits are not provided protection under FDIC insurance; however, management has determined that the risk of loss from insolvency by those financial institution at which it has deposited it funds is insignificant.

Accounts Receivable

Accounts receivable

Accounts receivable are carried at the amounts invoiced to customers less allowance for doubtful accounts. The allowance is an estimate based on a review of individual customer accounts on a regular basis. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

The Company reviews the collectability of accounts receivable based on an assessment of historical experience, current economic conditions, and other collection indicators.

During the two years ended December 31, 2018 and the three months ended March 31, 2019, the Company did not experience any delinquent or uncollectible balances; accordingly, the Company did not record any valuation allowance for bad debt during this period.

Inventories

Inventories

Inventories consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of sales when is has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company’s primary products are alcoholic beverages; the selling price of alcoholic beverages tend to increase over time; however, there are circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time. The Company did not experience an impairment on inventory during the three months ended March 31, 2019.

Advances and Prepayments to Suppliers

Advances and prepayments to suppliers

In certain instances, in order to secure the supply of limited and sought-after wines and liquors, the Company will make advance payments to suppliers for the procurement of inventory. Upon physical receipt and inspection of such products from those suppliers, the applicable balances are reclassified from advances and prepayments to suppliers to inventory.

Property, Plant and Equipment

Property, plant and equipment

Equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the equipment are as follows:

Office equipment 7-20 years

The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized.

Accounting for Long-lived Assets

Accounting for long-lived assets

The Company annually reviews its long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated.

If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

Customer Advances and Deposits

Customer advances and deposits

On certain occasions, the Company may receive prepayments from downstream retailers or retails customer for wines and liquor prior to their taking possession of the Company’s products; the Company records these receipts as customer advances and deposits until it has met all the criteria for recognition of revenue including the passing possession of the products to its customer, at such point Company will reduce the customer and deposits balance and credit the Company’s revenues.

Revenue Recognition

Revenue recognition

Revenues are recognized when the Company has negotiated the terms of the transaction, which includes determining and fixing the sales price, the transfer of possession of the product to the customer, the customer does not have the right to return the product, the customer is able to further sell or transfer the product onto others for economic benefit without any other obligation to be fulfilled by the Company, and the Company is reasonably assured that funds have been or will be collected from the customer. The Company’s gross revenue consists the value of goods invoiced, net of any value-added tax (VAT) or excise tax.

Advertising

Advertising

All advertising costs are expensed as incurred. Advertising expense for the three months ended March 31, 2019 and March 31, 2018 were $0 and 0, respectively.

Shipping and Handling

Shipping and handling

Outbound shipping and handling are expensed as incurred.

Retirement Benefits

Retirement benefits

Retirement benefits in the form of mandatory government sponsored defined contribution plans are charged to the either expenses as incurred or allocated to inventory as a part of overhead.

Income Taxes

Income taxes

The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.

Statutory Reserves

Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital.

Earnings Per Share

Earnings per share

The Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Financial Instruments

Financial instruments

The Company’s accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,” which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,” which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Commitments and Contingencies

Commitments and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

Comprehensive Income

Comprehensive income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss.

Goodwill

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable assets acquired in a business combination. In accordance with FASB ASC Topic 350, “Goodwill and Other Intangible Assets”, goodwill is no longer subject to amortization. Rather, goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. Fair value is generally determined using a discounted cash flow analysis.

Recent Accounting Pronouncements

Recent accounting pronouncements

In January 2017, the FASB issued guidance, which amended the existing accounting standards for business combinations. The amendments clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company is required to adopt the guidance in the first quarter of fiscal year 2019. Earlier adoption is permitted. The Company has early adopted this guidance in the fourth quarter of fiscal year 2018. The implementation of this guidance did not have a material impact on the Consolidated Financial Statements.

In February 2018, the FASB issued guidance, which eliminates the stranded tax effects in other comprehensive income resulting from the TCJA. Because the amendments only relate to the reclassification of the income tax effects of the TCJA, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. The Company is currently evaluating the timing and the impact of this guidance on the Consolidated Financial Statements. In August 2017, the FASB issued guidance, which amends the existing accounting standards for derivatives and hedging. The amendment improves the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP. The Company is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. The Company is currently evaluating the timing and impact of this guidance on the Consolidated Financial Statements.

In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires entities to present the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The Company is required to adopt the guidance retrospectively in the first quarter of fiscal year 2019. Earlier adoption is permitted. The Company will adopt this guidance in the first quarter of fiscal year 2019. The Company expects that the implementation of this guidance will not have a material impact on its Consolidated Financial Statements.

On March 17, 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASU 2014-09). The FASB issued the ASU in response to concerns identified by stakeholders, including those related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance and (2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service is “a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer.” Therefore, for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods or services and the agent for others. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). In addition, entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. The Company has determined that it acts as a principal in its primary business operations.

On March 30, 2016, the FASB issued ASU 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Management has determined that the new standard did not have a material impact on these financial statements.

Unless otherwise stated, the Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of Entities and its Subsidiaries

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Entity Name	Incorporation date	Entity Owned By	Nature of Operation	Country of Incorporation
DaXingHuaShang Investment Group Limited (“DIGLS”)	July 4,2016	FVTI	Investment holding	Republic of Seychelles
DaXingHuaShang Investment (Hong Kong) Ltd (“DILHK”)	June 22, 2016	DIGLS	Investment holding	Hong Kong, China
Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. (“QHDX”)	November 3, 2016	DILHK	Investment holding	China
Dongguan City France Vin Tout Ltd., (“FVTL”)	May 31, 2011	QHDX	Trading of wine	China
Jiujiu Group Stock Co., Ltd. (“JJGS”)	August 17,2017	FVTI	Investment holding	Republic of Seychelles
Jiujiu (HK) Industry Ltd(“JJHK”)	August 24,2017	JJGS	Investment holding	Hong Kong, China
Jiujiu (Shenzhen) Industry Ltd(“JJSZ”)	November 16,2018	JJHK	Investment holding	China

Schedule of Foreign Currency Exchange Rate Translation

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	March 31, 2019		March 31, 2018
Spot RMB: USD exchange rate	$	0.1485	$	0.1590
Average RMB: USD exchange rate	$	0.1491	$	0.1574

Schedule of Estimated Useful Lives of Equipment

Estimated useful lives of the equipment are as follows:

Office equipment 7-20 years

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Accounts and Other Receivables (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Schedule of Accounts and Other Receivables

Accounts and other receivables consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Gross accounts and other receivables	$	5,709	$	7,706
Less: Allowance for doubtful accounts		-		-
	$	5,709	$	7,706

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Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
Finished goods	$	216,719	$	236,173

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Equipment (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consisted of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
At Cost:
Equipment		63,727		62,385
Less: Accumulated depreciation
Equipment		53,981		52,576
	$	9,746	$	9,809

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Reconciliation of Tax Expenses

The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for three months ended March 31, 2019 and March 31, 2018:

	March 31, 2019			March 31, 2018
Income attributed to PRC operations	$	(23,315	)	$	(53,650	)
Loss attributed to Seychelles and HK		0			(119	)
Loss attributed to US		(9,528	)		(43,153	)
Loss before tax		(32,843	)		(96,922	)
PRC Statutory Tax at 25% Rate		(5,829	)		(13,412	)
Effect of Seychelles, PRC, HK, deductions and other reconciling items		5,914			13,412
Income tax	$	85		$	-

Schedule of Effective Income Tax Rate

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for three months ended March 31, 2019 and 2018:

	March 31,2019			March 31,2018
U.S. federal statutory income tax rate		21.0	%		21.0	%
Higher rates in PRC, net		4.0	%		-9.0	%
Net operating losses in PRC and other jurisdictions		-23.9	%		-12.0	%
The Company’s effective tax rate		1.1	%		0	%

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Schedule of Amount Due to Related Parties

Amounts due to related parties as of March 31, 2019 and December 31, 2018:

		March 31, 2019		December 31, 2018
Mr. Yumin Lin	Director, CEO, Shareholder	$	743,868	$	554,061
Mr. Sheng	Former Director of the Company		-
Ms. Qingmei Lin	Mr. Yumin Lin’s wife		4,455		28,350
Mr. Naiyong Luo	Director of DIGL		80,324		78,639
Mr.Hongwei Ye			26,270		25,719
		$	854,917	$	686,769

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Lease Commitments (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Minimum Operating Lease Commitment

Minimum operating lease commitment for the agreement is as follows:

2019		17,892
2020		17,892
2021		17,892
2022		17,892
Thereafter:		77,532
Total future payments	$	149,100
Less: discount		(26,294	)
Right of use asset	$	122,806

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Organization and Description of Business (Details Narrative) - USD ($)	Mar. 01, 2019	Apr. 11, 2018	Mar. 31, 2019	Dec. 31, 2018	Jan. 29, 2018	Nov. 11, 2016	Jul. 04, 2016
Common stock shares authorized			3,000,000,000	3,000,000,000	3,000,000,000
Ownership percentage						100.00%
DaXingHuaShang Investment Group Limited [Member]
Common stock shares authorized							250,000,000
Number of common stock shares issued		300,000,000
Share capital							$ 100,000
Common stock par value							$ 0.0004
Jiujiu Group Stock Co., Ltd [Member] | Sale and Purchase Agreement [Member]
Acquisition percentage	100.00%
Number of shares issued for acquisition	100
Number of shares issued for acquisition, value	$ 150
Payments to acquire businesses	$ 150

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Advertising expense	$ 0	$ 0
Percentage of statutory reserves	10.00%
Maximum [Member]
Percentage of statutory reserves	50.00%

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Summary of Significant Accounting Policies - Schedule of Entities and its Subsidiaries (Details)	3 Months Ended
	Mar. 31, 2019
FVTI [Member]
Entity Name	DaXingHuaShang Investment Group Limited ("DIGLS")
Entity Incorporation date	Jul. 04, 2016
Nature of Operation	Investment holding
Country of Incorporation	Republic of Seychelles
DIGLS [Member]
Entity Name	DaXingHuaShang Investment (Hong Kong) Ltd ("DILHK")
Entity Incorporation date	Jun. 22, 2016
Nature of Operation	Investment holding
Country of Incorporation	Hong Kong, China
DILHK [Member]
Entity Name	Qianhai DaXingHuaShang Investment (Shenzhen) Co. Ltd. ("QHDX")
Entity Incorporation date	Nov. 03, 2016
Nature of Operation	Investment holding
Country of Incorporation	China
QHDX [Member]
Entity Name	Dongguan City France Vin Tout Ltd.,
Entity Incorporation date	May 31, 2011
Nature of Operation	Trading of wine
Country of Incorporation	China
FVTI [Member]
Entity Name	Jiujiu Group Stock Co., Ltd. ("JJGS")
Entity Incorporation date	Aug. 17, 2017
Nature of Operation	Investment holding
Country of Incorporation	Republic of Seychelles
JJGS [Member]
Entity Name	Jiujiu (HK) Industry Ltd("JJHK")
Entity Incorporation date	Aug. 24, 2017
Nature of Operation	Investment holding
Country of Incorporation	Hong Kong, China
JJHK [Member]
Entity Name	Jiujiu (Shenzhen) Industry Ltd("JJSZ")
Entity Incorporation date	Nov. 16, 2018
Nature of Operation	Investment holding
Country of Incorporation	China

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Summary of Significant Accounting Policies - Schedule of Foreign Currency Exchange Rate Translation (Details)	Mar. 31, 2019	Mar. 31, 2018
Spot RMB [Member]
Foreign Currency Exchange Rate Translation	0.1485	0.1590
Average RMB [Member]
Foreign Currency Exchange Rate Translation	0.1491	0.1574

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Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Equipment (Details) - Office Equipment [Member]	3 Months Ended
	Mar. 31, 2019
Minimum [Member]
Estimated useful lives of equipment	7 years
Maximum [Member]
Estimated useful lives of equipment	20 years

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Going Concern (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (32,928)	$ (96,922)
Working capital deficit	433,396
Net cash used in operating activities	$ (31,338)	$ (98,637)

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Accounts and Other Receivables - Schedule of Accounts and Other Receivables (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Gross accounts and other receivables	$ 5,709	$ 7,706
Less: Allowance for doubtful accounts
Accounts and other receivables net	$ 5,709	$ 7,706

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Inventories - Schedule of Inventories (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 216,719	$ 236,175

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Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Equipment at cost	$ 63,727	$ 62,385
Less: Accumulated depreciation	53,981	52,576
Equipment	$ 9,746	$ 9,809

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Income Taxes (Details Narrative)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Corporate income tax rate	1.10%	0.00%
People's Republic of China [Member]
Corporate income tax rate	25.00%
Hong Kong [Member]
Corporate income tax rate	16.50%

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Income Taxes - Schedule of Reconciliation of Tax Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Loss before tax	$ (32,843)	$ (96,922)
PRC Statutory Tax at 25% Rate	(5,829)	(13,412)
Effect of Seychelles, PRC, HK, deductions and other reconciling items	5,914	13,412
Income tax	85
People's Republic of China [Member]
Income (Loss) attributed	(23,315)	(53,650)
Seychelles and HK [Member]
Income (Loss) attributed	0	(119)
United States [Member]
Income (Loss) attributed	$ (9,528)	$ (43,153)

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Income Taxes - Schedule of Reconciliation of Tax Expenses (Details) (Parenthetical)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statutory income tax rate	21.00%	21.00%
People's Republic of China [Member]
Statutory income tax rate	25.00%	25.00%

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Income Taxes - Schedule of Effective Income Tax Rate (Details)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%
Higher rates in PRC, net	4.00%	(9.00%)
Net operating losses in PRC and other jurisdictions	(23.90%)	(12.00%)
The Company's effective tax rate	1.10%	0.00%

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Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Customer deposit	$ 606
Mr. Yumin Lin [Member]
Notes payable	743,868
Mr.Naiyong Luo [Member]
Customer deposit	80,324
Mr. Hongwei Ye [Member]
Customer deposit		$ 26,270
Wine and Liquor Products [Member] | Mr.Naiyong Luo [Member]
Proceeds from sale of product	34,220	41,565
Wine and Liquor Products [Member] | Mr. Hongwei Ye [Member]
Proceeds from sale of product	$ 0	$ 5,020

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Related Party Transactions - Schedule of Amount Due to Related Parties (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Amounts due to related parties	$ 854,917	$ 686,769
Mr. Yumin Lin [Member] | Director, CEO, Shareholder [Member]
Amounts due to related parties	743,868	554,061
Mr. Sheng [Member] | Former Director of the Company [Member]
Amounts due to related parties
Ms. Qingmei Lin [Member] | Mr. Yumin Lin's Wife [Member]
Amounts due to related parties	4,455	28,350
Mr.Naiyong Luo [Member] | Director of DIGL [Member]
Amounts due to related parties	80,324	78,639
Mr. Hongwei Ye [Member]
Amounts due to related parties	$ 26,270	$ 25,719

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Lease Commitments (Details Narrative)					3 Months Ended
	Jan. 02, 2019 USD ($)	Jan. 02, 2019 CNY (¥)	May 01, 2018 USD ($)	May 01, 2018 CNY (¥)	Mar. 31, 2019 USD ($)	Mar. 31, 2019 CNY (¥)
Agreement term					May 1, 2017 to April 30, 2027	May 1, 2017 to April 30, 2027
Monthly rent expense | $					$ 3,811
Lowered monthly rent expenses | $	$ 1,491		$ 2,323
RMB Currency [Member]
Monthly rent expense | ¥						¥ 25,000
Lowered monthly rent expenses | ¥		¥ 10,000		¥ 15,000

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Lease Commitments - Schedule of Minimum Operating Lease Commitment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
2019	$ 17,892
2020	17,892
2021	17,892
2022	17,892
Thereafter:	77,532
Total future payments	149,100
Less: discount	(26,294)
Right of use asset	$ 122,806

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Subsequent Events (Details Narrative)	Mar. 01, 2019
Jiujiu Group Stock Co., Ltd [Member] | Sale and Purchase Agreement [Member]
Acquisition percentage	100.00%