Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investment

v3.7.0.1
Equity Method Investment
3 Months Ended
Mar. 31, 2017
Equity Method Investment [Abstract]  
EQUITY METHOD INVESTMENT

NOTE 7 – EQUITY METHOD INVESTMENT

 

At March 31, 2017 and December 31, 2016, equity method investment amounted to $28,932,614 and $28,493,273, respectively. The investment represents the Company’s subsidiary, Pingtan Fishing’s interest in Global Deep Ocean. On June 12, 2014, Pingtan Fishing incorporated Global Deep Ocean with other two unrelated companies in PRC. Global Deep Ocean will process, cold storage, and transport deep ocean fishing products.

 

Pingtan Fishing and the other two investing companies accounted for 20%, 44% and 36% of the total ownership, respectively. All of the three investing companies hold less than 50% of the total shares. Total registered capital of Global Deep Ocean is RMB 1 billion (approximately $144.9 million) and Pingtan Fishing needs to contribute RMB 200 million (approximately $29.0 million), and as of March 31, 2017, the Company has contributed its share of registered capital.

 

The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. For the three months ended March 31, 2017 and 2016, the Company’s share of Global Deep Ocean’s net loss was $6,252 and $10,316, respectively, which was included in loss on equity method investment in the accompanying consolidated statements of operations and comprehensive income (loss).

 

The tables below present the summarized financial information, as provided to the Company by the investee, for the unconsolidated company:

 

    March 31, 2017     December 31, 2016  
Current assets   $ 49,028,248     $ 48,488,573  
Noncurrent assets     4,343,331       4,335,801  
Current liabilities     17,976       18,007  
Noncurrent liabilities     -       -  
Equity     53,353,603       52,806,367  

 


    Three Months Ended
March 31,
 
    2017     2016  
Net revenue   $ -     $ -  
Gross profit     -       -  
Loss from operation     31,158       51,581  
Net loss     31,260       51,581