CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Schedule of condensed financial information of the parent company

The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2019 and 2018.

PARENT COMPANY BALANCE SHEETS

	December 31,			December 31,
	2019			2018
ASSETS
Current assets:
Cash and cash equivalents	$	76,583		$	-
Other receivables, net		600,000			-
Restricted cash		5,000,000			-
Total current assets		5,676,583			-
Non-current assets:
Property, plant and equipment, net		2,162,449			-
Investment in subsidiaries		38,481,702			28,256,045
Total non-current assets		40,644,151			28,256,045
Total assets	$	46,320,734		$	28,256,045
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Other payables and accrued liabilities	$	1,570,183		$	-
Other payables - related party		269			-
Total liabilities		1,570,452			-
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Ordinary shares, $0.001 par value, 50,000,000 shares authorized, 35,141,114 and 33,000,000 shares issued and outstanding as of December 31, 2019 and 2018, respectively		35,141			33,000
Additional paid-in capital		20,771,849			12,831,969
Statutory reserves		1,289,765			1,178,432
Retained earnings		24,132,194			15,169,573
Accumulated other comprehensive losses		(1,478,667	)		(956,929	)
Total shareholders' equity		44,750,282			28,256,045
Total liabilities and shareholders' equity	$	46,320,734		$	28,256,045

PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Year ended			Year ended			Year ended
	December 31,			December 31,			December 31,
	2019			2018			2017
Operating expenses:
General and administrative expenses	$	(1,671,700	)	$	-		$	-
Other income (expenses):
Equity income of subsidiaries and VIEs		10,747,395			7,919,408			5,124,973
Interest income		21			-			-
Other finance expenses		(1,762	)		-			-
NET INCOME		9,073,954			7,919,408			5,124,973
FOREIGN CURRENCY TRANSLATION ADJUSTMENT		(521,738	)		(1,474,126	)		958,667
COMPREHENSIVE INCOME	$	8,552,216		$	6,445,282		$	6,083,640

PARENT COMPANY STATEMENTS OF CASH FLOWS

	Year ended			Year ended			Year ended
	December 31,			December 31,			December 31,
	2019			2018			2017
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income	$	9,073,954		$	7,919,408		$	5,124,973
Adjustments to reconcile net income to cash used in operating activities:
Equity income of subsidiaries and VIEs		(10,747,395	)		(7,919,408	)		(5,124,973	)
Changes in operating assets and liabilities:
Other receivables		(600,000	)		-			-
Other payables and accrued liabilities		1,570,183			-			-
Net cash used in operating activities		(703,258	)		-			-
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment		(2,162,449	)		-			-
Net cash used in investing activities		(2,162,449	)		-			-
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from initial public offering, net of issuance costs		7,417,077			-			-
Underwriter’s partial exercise of over-allotment option,
net of issuance costs		524,944			-			-
Other payables – related party		269			-			-
Net cash used in investing activities		7,942,290			-			-
EFFECT OF EXCHANGE RATE ON CASH		-			-			-
NET CHANGES IN CASH AND CASH EQUIVALENTS		5,076,583			-			-
CASH AND CASH EQUIVALENTS, Beginning of year		-			-			-
CASH AND CASH EQUIVALENTS, end of year	$	5,076,583		$	-		$	-
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash and cash equivalents	$	76,583		$	-		$	-
Restricted cash		5,000,000			-			-
CASH AND CASH EQUIVALENTS, end of year	$	5,076,583		$	-		$	-