Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investment

v3.10.0.1
Equity Method Investment
6 Months Ended
Jun. 30, 2018
Equity Method Investment [Abstract]  
EQUITY METHOD INVESTMENT

NOTE 7 – EQUITY METHOD INVESTMENT

 

At June 30, 2018 and December 31, 2017, equity method investment amounted to $30,082,519 and $30,521,466, 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, 2018, 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 $151.1 million) and as of June 30, 2018, Pingtan Fishing had contributed its share of registered capital of RMB 200 million (approximately $30.2 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, 2018 and 2017, the Company’s share of Global Deep Ocean’s net loss was $50,164 and $13,915, respectively, which was included in loss on equity method investment in the accompanying consolidated statements of operations and comprehensive income. For the six months ended June 30, 2018 and 2017, the Company’s share of Global Deep Ocean’s net loss was $61,115 and $20,167, respectively, which was included in loss on equity method investment in the accompanying consolidated statements of operations and comprehensive income.

 

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

 

    June 30,
2018
    December 31,
2017
 
Current assets   $ 68,273,142     $ 49,372,645  
Noncurrent assets     7,232,383       6,974,590  
Current liabilities     51,581       151,312  
Noncurrent liabilities     20,252,093       -  
Equity     55,201,851       56,195,923  

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2018     2017     2018     2017  
Net revenue   $ -     $ -     $ -     $ -  
Gross profit     -       -       -       -  
Loss from operation     250,817       69,574       305,573       100,732  
Net loss     250,817       69,574       305,573       100,834