Annual report pursuant to Section 13 and 15(d)

Condensed Parent Company Financial Information

v3.21.2
Condensed Parent Company Financial Information
12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
CONDENSED PARENT COMPANY FINANCIAL INFORMATION

NOTE 16 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION

 

The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s China-based operating subsidiaries.

 

The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.

 

PINGTAN MARINE ENTERPRISE LTD.

Condensed Parent Company Balance Sheets

 

    December 31,
2020
    December 31,
2019
 
ASSETS            
Current assets:            
Cash   $
-
    $
-
 
Other receivable    
-
     
-
 
Investments in subsidiaries at equity     89,333,519       153,728,021  
Total current assets     89,333,519       153,728,021  
Other assets:                
Property, plant and equipment     1,540,520       18,394,635  
Total assets   $ 90,874,039     $ 172,122,656  
LIABILITIES AND EQUITY                
Current liabilities:                
Due to related parties   $ 5,894,349     $ 17,044,800  
Total liabilities     5,894,349       17,044,800  
Shareholders’ equity:                
Equity attributable to owners of the company:                
Ordinary shares ($0.001 par value; 125,000,000 shares authorized; 79,302,428 and 79,055,053 shares issued and outstanding at December 31, 2020 and 2019, respectively.)     79,302       79,055  
Additional paid-in capital     82,045,993       81,682,599  
Retained earnings     (2,843,043 )     70,035,205  
Accumulated other comprehensive loss     (9,568,873 )     (16,080,908 )
Total equity attributable to owners of the company     69,713,379       135,715,951  
Non-controlling interest     15,266,311       19,361,905  
Total shareholders’ equity     84,979,690       155,077,856  
Total liabilities and equity   $ 90,874,039     $ 172,122,656  

 

PINGTAN MARINE ENTERPRISE LTD.

Condensed Parent Company Statements of Operations

 

    For the Year Ended December 31,  
    2020     2019     2018  
Revenue   $
-
    $
-
    $
-
 
Cost of revenue    
-
     
-
     
-
 
Operating expenses:                        
General and administrative     (17,215,617 )     (2,198,906 )     (2,730,666 )
Total operating expenses     (17,215,617 )     (2,198,906 )     (2,730,666 )
Loss from operations     (17,215,617 )     (2,198,906 )     (2,730,666 )
Other expense     (26 )     (8 )     (174 )
Loss attributable to parent only     (17,215,643 )     (2,198,914 )     (2,730,840 )
Equity in income of subsidiaries     (60,402,937 )     8,578,979       17,543,538  
Net (loss) income     (77,618,580 )     6,380,065       14,812,698  
Less: net income attributable to the non-controlling interest     (4,740,332 )     698,041       1,415,397  
Net (loss) income attributable to owners of the company   $ (72,878,248 )   $ 5,682,024     $ 13,397,301  

 

PINGTAN MARINE ENTERPRISE LTD.

Condensed Parent Company Statements of Cash Flows

 

    For the Year Ended December 31,  
    2020     2019     2018  
CASH FLOWS FROM OPERATING ACTIVITES                  
Net (loss) income   $ (77,618,580 )   $ 6,380,065     $ 14,812,698  
Adjustments to reconcile net income(loss) to net cash used in operating activities:                        
Equity in (income) loss of subsidiaries     60,402,937       (8,578,979 )     (17,543,538 )
Changes in assets and liabilities:                        
Prepaid expenses    
-
     
-
     
-
 
Other receivable    
-
     
-
     
-
 
Accrued liabilities and other payables    
-
     
-
     
-
 
Due to related parties     23,430,302       37,947       (20,000 )
NET CASH USED IN OPERATING ACTIVITIES     6,214,659       (2,160,967 )     (2,750,840 )
CASH FLOWS FROM INVESTING ACTIVITIES                        
Investment payments to subsidiaries    
-
     
-
     
-
 
NET CASH USED IN INVESTING ACTIVITIES    
-
     
-
     
-
 
CASH FLOWS FROM FINANCING ACTIVITIES                        
Cash acquired from subsidiaries     4,935,792       2,165,959       5,140,707  
Advances from related parties    
-
     
-
     
-
 
Return to related parties     (11,150,452 )     (4,992 )     (18,215 )
Payments made for dividend    
-
     
-
      (2,371,652 )
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES     (6,214,659 )     2,160,967       2,750,840  
NET (DECREASE) INCREASE IN CASH    
-
     
-
     
-
 
CASH - beginning of year    
-
     
-
     
-
 
CASH - end of year   $
-
    $
-
    $
-
 

 

Note 1. Basis of Preparation

 

The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries.

 

Note 2. Investments in Subsidiaries

 

The Company and its subsidiaries were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries were reported as equity in earnings of subsidiaries in the accompanying parent company financial statements.

 

Note 3. Retained Earnings

 

The retained earnings in the Company’s stand-alone financial statements do not represent the distributable earnings of the Group as it includes the statutory reserve of its subsidiaries in PRC of $15,751,712 and $15,748,751 as of December 31, 2020 and 2019, respectively.