| BUSINESS COMBINATION |
NOTE 20 BUSINESS COMBINATION
Xin Feng Construction Co., Ltd.
On December 31, 2020, the Company acquired substantially
all of the assets of XFC. The fair values of assets acquired and liabilities assumed were as follows:
| |
| | |
| Cash and bank balance | |
$ | 857,555 | |
| Trade receivables | |
| 318,487 | |
| Inventory | |
| 1,608,301 | |
| Prepaid expenses and other current assets | |
| 877,809 | |
| Plant and equipment, net | |
| 50,567 | |
| Other non-current assets | |
| 458,392 | |
| Notes payable | |
| (187,447 | ) |
| Bank borrowing | |
| (532,824 | ) |
| Other payables and accrued liabilities | |
| (55,917 | ) |
| Income tax payable | |
| (285,186 | ) |
| Advance receipts | |
| (1,285,777 | ) |
| Goodwill | |
| 332,040 | |
| Net assets acquired | |
$ | 2,156,000 | |
Guizhou Wan Feng Hu Intelligent Aquatic Technology
Co. Limited.
On October 8, 2020, the Company terminated the
VIE agreements with and settled all debt claims as to GZ WFH. The fair values of assets and liabilities of GZ WFH were as follows:
| |
| | |
| Cash and bank balance | |
$ | 3,974 | |
| Trade receivables | |
| 1,534,961 | |
| Inventory | |
| 295,960 | |
| Prepaid expenses and other current assets | |
| 143,819 | |
| Plant and equipment, net | |
| 703,412 | |
| Advance to suppliers | |
| 3,996 | |
| Deferred tax assets, net | |
| 121,675 | |
| Accounts payable | |
| (264,622 | ) |
| Other payables and accrued liabilities | |
| (312,562 | ) |
| Advance from customers | |
| (637,455 | ) |
| Income tax payable | |
| (629,666 | ) |
| Due to related parties | |
| (414,583 | ) |
| Net assets acquired | |
| 548,909 | |
| Consideration received | |
| (4,750 | ) |
| Non-controlling interest | |
| (21,868 | ) |
| Cumulative exchange difference from translation of foreign operations | |
| (62,174 | ) |
| Loss on disposal of subsidiary | |
$ | 460,117 | |
|