Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investment

v3.7.0.1
Equity Method Investment
6 Months Ended
Jun. 30, 2017
Equity Method Investment [Abstract]  
EQUITY METHOD INVESTMENT

NOTE 7 – EQUITY METHOD INVESTMENT

 

At June 30, 2017 and December 31, 2016, equity method investment amounted to $29,451,951 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. In April 2017, these two companies sold their shares to another unrelated party, Zhen Lin. As of June 30, 2017, Pingtan Fishing and Zhen Lin accounted for 20% and 80% of the total ownership, respectively.

 

Global Deep Ocean will process, cold storage, and transport deep ocean fishing products. Total registered capital of Global Deep Ocean is RMB 1 billion (approximately $144.9 million) and as of June 30, 2017, Pingtan Fishing had contributed its share of registered capital of RMB 200 million (approximately $29.0 million).

 

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 June 30, 2017 and 2016, the Company’s share of Global Deep Ocean’s net loss was $13,915 and $7,811, respectively, which was included in loss on equity method investment in the accompanying consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2017 and 2016, the Company’s share of Global Deep Ocean’s net loss was $20,167 and $18,127, 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:

 

    June 30,
2017
    December 31,
2016
 
Current assets   $ 49,820,484     $ 48,488,573  
Noncurrent assets     4,462,773       4,335,801  
Current liabilities     16,449       18,007  
Noncurrent liabilities     -       -  
Equity     54,266,808       52,806,367  

  

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2017     2016     2017     2016  
Net revenue   $ -     $ -     $ -     $ -  
Gross profit     -       -       -       -  
Loss from operation     69,574       39,012       100,732       90,593  
Net loss     69,574       39,054       100,834       90,635