0001493152-17-008922.txt : 20170811 0001493152-17-008922.hdr.sgml : 20170811 20170810200935 ACCESSION NUMBER: 0001493152-17-008922 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 51 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20170811 DATE AS OF CHANGE: 20170810 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASIA EQUITY EXCHANGE GROUP, INC. CENTRAL INDEX KEY: 0001590565 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT CONSULTING SERVICES [8742] IRS NUMBER: 463366428 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-192272 FILM NUMBER: 171022734 BUSINESS ADDRESS: STREET 1: SUITE 2603, 26/F, COFCO TOWER, STREET 2: 262 GLOUCESTER ROAD, CITY: CAUSEWAY BAY, STATE: K3 ZIP: 00000 BUSINESS PHONE: 852-2845 2281 MAIL ADDRESS: STREET 1: SUITE 2603, 26/F, COFCO TOWER, STREET 2: 262 GLOUCESTER ROAD, CITY: CAUSEWAY BAY, STATE: K3 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: I IN THE SKY INC. DATE OF NAME CHANGE: 20131112 FORMER COMPANY: FORMER CONFORMED NAME: I IN THE SKY, INC. DATE OF NAME CHANGE: 20131030 10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 10-Q

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2017

 

OR

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______________ to ______________

 

Commission File Number: 333-192272

 

ASIA EQUITY EXCHANGE GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   46-3366428

(State or other jurisdiction of
incorporation or organization)

 

(IRS Employer

Identification No.)

 

Suite 2501A, Skyline Tower,

39 Wang Kwong Road, Kowloon Bay, Hong Kong

(Address of principal executive offices)

 

(+852 2818 2998)

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes [X] No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer [  ] Accelerated filer [  ]
       
Non-accelerated filer [  ] Smaller reporting company [X]
(Do not check if a smaller reporting company)      
       
Emerging growth company [X]    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided in Section 13(a) of the Exchange Act. [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes [  ] No [X]

 

The number of shares outstanding of each of the issuer’s classes of common stock, as of August 10, 2017, after the effectiveness of the reverse stock split, is as follows:

 

Class of Securities  Shares Outstanding
Common Stock, $0.001 per value  114,600,000

 

 

 

 
 

 

ASIA EQUITY EXCHANGE GROUP, INC.

 

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2017

 

TABLE OF CONTENTS

 

    PAGE
  PART I - FINANCIAL INFORMATION
     
Item 1. Financial Statements. 2
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 14
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk. 20
     
Item 4. Controls and Procedures. 20
     
  PART II - OTHER INFORMATION
     
Item 1. Legal Proceedings. 21
     
Item 1A. Risk Factors. 21
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 21
     
Item 3. Defaults Upon Senior Securities. 21
     
Item 4. Mine Safety Disclosures 21
     
Item 5. Other Information. 21
     
Item 6. Exhibits 21

 

 
 

 

Special Note Regarding Forward Looking Statements

 

In addition to historical information, this report contains forward-looking statements. We use words such as “believe,”s “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will,” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth; any projections of earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements.

 

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

 

Use of Terms

 

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

 

“Company”, “we”, “us” and “our” are to the combined business of Asia Equity Exchange Group, Inc., a Nevada corporation, and its consolidated subsidiaries;
   
“AEEGCL” are to our Samoa subsidiary, Asia Equity Exchange Group Company Ltd.;
   
“AEEX HK” are to AEEX (HK) International Finance Service Limited (formerly known as Yinfu International Enterprise Limited), a company formed in Hong Kong;
   
“AACCL” are to Asian & American Consultant (Shenzhen) Co., Ltd., (formerly known as Yinfu Guotai Investment Consultant (Shenzhen) Co., Ltd.),our PRC subsidiary ;
   
“China” and “PRC” are to the People’s Republic of China;
   
“RMB” are to Renminbi, the legal currency of China;
   
“U.S. dollar”, “$” and “US$” are to the legal currency of the United States;
   
“SEC” are to the United States Securities and Exchange Commission;
   
“Securities Act” are to the Securities Act of 1933, as amended; and
   
“Exchange Act” are to the Securities Exchange Act of 1934, as amended

 

 
 

 

SPECIAL NOTE REGARDING REVERSE STOCK SPLIT

 

Effective July 31, 2017, we completed a reverse stock split in which each one (1) shares of common stock of the Company (as defined herein below) were automatically combined converted into one tenth (0.10) of a share of common stock (as defined herein below), at the one-for-10 reverse split ratio. As of the effective date of the reverse stock split, the per share exercise price of, and the number of shares of common stock underlying, any stock options, warrants and other derivative securities issued by us were automatically proportionally adjusted, based on the one-for-fifteen reverse split ratio, in accordance with the terms of such options, warrants or other derivative securities, as the case may be. All share numbers, stock option numbers, warrant numbers, other derivative security numbers and exercise prices appearing in this Report on Form 10-Q have not been adjusted to give effect to this reverse stock split, unless otherwise indicated or unless the context suggests otherwise.

 

 1 
   

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

ASIA EQUITY EXCHANGE GROUP, INC. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016

 

ASIA EQUITY EXCHANGE GROUP, INC.

Condensed Balance Sheets (Unaudited)

 

   June 30, 2017   December 31, 2016 
ASSETS          
Current Assets          
Cash and cash equivalents  $370,670   $55,360 
Prepaid expenses   9,167    5,554 
Account receivable   -    - 
Other receivable   54,663    669 
Rental deposit   35,541    34,708 
Total current assets   470,041    96,291 
Fixed assets, net of accumulated depreciation   10,635    34,220 
Intangible assets, net of amortization   5,659    6,013 
Goodwill   1,189,921    1,189,921 
Other non-current assets   2,306    3,604 
TOTAL ASSETS  $1,678,563   $1,330,049 
           
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY          
LIABILITIES          
Current Liabilities          
Accounts payable and accrued liabilities  $14,793   $171,795 
Income Taxes Payable   23,741    - 
Other payables   131,633    - 
Amount due to a director   452,543    423,686 
TOTAL LIABILITIES  $622,709   $595,481 
           
STOCKHOLDERS’ (DEFICIT) EQUITY          
Preferred stock, 1,000,000 shares authorized; par value $0.001, none issued and outstanding   -    - 
Common stock, 3,000,000,000 shares authorized; par value $0.001, 1,146,000,000 shares issued and outstanding   1,146,000    1,146,000 
Capital deficiency   (23,713)   (23,713)
Accumulated deficit   (62,378)   (387,719)
Foreign currency translation adjustment   (4,056)   - 
Total Stockholders’ (Deficit) Equity   1,055,853    734,568 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY  $1,678,563   $1,330,049 

 

The accompanying notes to the financial statements are an integral part of these unaudited statements.

 

 2 
   

 

ASIA EQUITY EXCHANGE GROUP, INC.

Condensed Statements of Operation and Comprehensive Loss

(Unaudited)

 

   Three Months Ended June 30,   Six Months Ended June 30 
   2017   2016   2017   2016 
                 
REVENUE  $290,928   $-   $649,890   $- 
Cost of Sales   -    -    -    - 
Net Revenue  $290,928   $-   $649,890   $- 
                     
OPERATING EXPENSES                    
General and administrative   145,778    167,699    259,097    354,318 
Professional fees   31,109    -    41,993    - 
Total other expenses   2,320    -    3,327    - 
Total Operating Expenses   179,207    167,699    304,417    354,318 
Income tax credit   -    -    -    4,114 
Net profit from operations   111,721    (167,699)   345,473    (350,204)
                     
Other Income (expenses)                    
Loss on abandonment of fixed assets   (11,634)   -    (11,634)   - 
Foreign currency translation adjustment   -    (3,524)   -    (2,030)
Total other income (expense)   (11,634)   (3,524)   (11,634)   (2,030)
                     
Loss before provision for income taxes   100,087    (171,223)   333,839    (352,234)
                     
Provision for income taxes   3,942    -    3,942    - 
                     
Net Profit (net loss)  $96,145   $(171,223)  $329,897   $(352,234)
                     
Basic and diluted loss per common share  $(0.00)  $ (0.00)  $(0.00)  $ (0.00)
                     
Weighted average number of common shares outstanding - basic and diluted   1,146,000,000    1,128,351,648    1,146,000,000    1,064,175,824 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 3 
   

 

ASIA EQUITY EXCHANGE GROUP, INC

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

   For the Six Months Ended 
   June 30, 2017   June 30, 2016 
         
CASH FLOWS FROM OPERATING ACTIVITIES          
Net Profit  $329,896   $(350,204)
Changes in operating activities:          
Depreciation and amortization  $6,141   $5,693 
Loss on disposal of equipment   11,633    - 
Prepaid Expenses   (57,384)   (27,034)
Accounts payable and accrued liabilities   27,229    (9,725)
Advances from a director   -    408,484 
Other items   (4,556)   - 
Net Cash Generated From Operating Activities   312,960    27,214 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Advances to a related party   -    (4,847)
Purchases of intangible asset   -    (7,328)
Purchases of property and equipment   -    (76,198)
Net receipt from liquidation of fixed assets   6,406    - 
Net Cash Generated From Investing Activities  $6,406   $(88,373)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Advances from a related party   -    76,295 
Net Cash Generated From Financing Activities  $    $76,295
           
Effect of foreign exchange rate   (4,056)   (383)
           
Net increase (decrease) in cash and cash equivalents   315,310    14,753 
Cash and cash equivalents, beginning of period   55,360    22,655 
Cash and cash equivalents, end of period  $370,670   $37,408 
Supplemental Cash Flow Disclosure:          
Cash paid for interest  $-   $- 
Cash paid for income taxes  $-   $1,561 
Non-cash financing activities:          
Note payable related party forgiven to contributed capital  $-   $- 

 

The accompanying notes to the financial statements are an integral part of these unaudited statements.

 

 4 
   

 

ASIA EQUITY EXCHANGE GROUP, INC.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

 

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Asia Equity Exchange Group, Inc. (“the Company” or “AEEX”) is a Nevada corporation incorporated on July 15, 2013, under the name “I In The Sky, Inc.” (“SYYF”). The Company filed a name change to AEEX with the state of Nevada on July 22, 2015. It is based in Hong Kong, the People’s Republic of China. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company’s fiscal year ends on December 31.

 

The Company’s original business plan was to manufacture and market low cost GPS tracking devices and software to businesses and families. However, this business was not successful and the Company had no revenues generated from its business until April 12, 2016 when it completed the reverse acquisition of Asian Equity Exchange Group Company Limited (“AEEGCL”).

 

On November 30, 2015, the Company executed a Sale and Purchase Agreement (the “Purchase Agreement”) to acquire 100% of the shares and assets of AEEGCL (the “Acquisition”). Pursuant to the Purchase Agreement, the Company issued one billion (1,000,000,000) shares of common stock to the former owners of AEEGCL. The closing of the Acquisition took place on April 12, 2016. As a result, AEEGCL became a wholly-owned subsidiary of the Company and the business of AEEGCL became current business of the Company. The Company had a total of 146,000,000 shares of common stock outstanding immediately prior to the closing of the Acquisition. After the closing of the Acquisition, the Company had a total of 1,146,000,000 shares of common stock outstanding, with the former owners of AEEGCL owning 87.3% of the total issued and outstanding shares of the Company’s common stock.

 

AEEGCL was incorporated under the laws of Samoa on May 29, 2015. It offers an international equity assistance and information service platform designed to provide listing assistance services, equity investment financing information and public relationship services to enterprises in Asia, mainly in China. AEEGCL owns 100% of AEEX (HK) International Financial Service Limited (formerly known as Yinfu International Enterprise Limited, “AEEX HK”), a Hong Kong corporation incorporated on December 22, 2014. AEEX HK owns 100% of Asian & American Consultant (Shenzhen) Co., Ltd. (formerly known as Yinfu Guotai Investment Consultant (Shenzhen) Co., Ltd., “AACCL”), a corporation incorporated in the People’s Republic of China (the “PRC”) on April 15, 2015. Both AEEX HK and AACCL are engaged in the provision of investment and corporate management consultancy services.

 

The acquisition of AEEGCL and its subsidiaries by the Company was accounted for as a reverse merger because on a post-merger basis, the former shareholders of AEEGCL held a majority of the outstanding common stock of the Company on a voting and fully-diluted basis. As a result, AEEGCL is deemed to be the acquirer for accounting purposes. Accordingly, the consolidated financial statement data presented are those of AEEGCL, recorded at the historical basis of AEEGCL, for all periods prior to the Company’s acquisition of AEEGCL on April 12, 2016, and the financial statements of the historical operations of the consolidated companies from the effective date of the closing of the Acquisition.

 

The Company aims to build and complement the multi-layer capital market system in Asia, and create a unique and authoritative intercontinental equity information platform which will effectively complement in business functions, service means and financing channels with over the counter markets in countries and regions in Asia. AEEX also endeavours to build a system of global cooperation to provide listed enterprises with equity financing means through domestic and overseas channels, and to offer nurturing pre-listing tutoring, incubating and supporting services for their listings on overseas capital markets.

 

 5 
   

 

Reverse Stock Split

 

On July 21, 2017, the Board of Directors of Asia Equity Exchange Group, Inc. approved a reverse stock split of the Company’s common stock, per value $0.001 per share (the “Common Stock”), at a ratio of 1-for-10 (the “Reverse Stock Split”) as of July 31, 2017 (the “Effective Date”).

 

Before the Effective Date, the Company was authorized to issue 3,000,000,000 shares of Common Stock and had 1,146,000,000 shares of Common Stock issued and outstanding. Simultaneously with the Reverse Stock Split, the Company decreased its authorized Common Stock to 300,000,000 shares. As a result of the Reverse Stock Split, the Company currently has 114,600,000 shares of Common Stock issued and outstanding (subject to adjustment due to the effect of rounding fractional shares into whole shares).

 

The Reverse Stock Split does not have any effect on the stated par value of the Common Stock. The Reverse Stock Split does not affect the Company’s authorized preferred stock. There are no outstanding shares of the Company’s preferred stock. After the Reverse Stock Split, the Company’s authorized preferred Stock of 1,000,000 shares will remain unchanged. Immediately after the Reverse Stock Split, each stockholder’s percentage ownership interest in the Company and proportional voting power remains virtually unchanged except for minor changes and adjustments resulting from rounding fractional shares into whole shares. The rights and privileges of the holders of shares of Common Stock are substantially unaffected by the Reverse Stock Split.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

The interim condensed consolidated financial information as of June 30, 2017 and for the six month periods ended June 30, 2017 and 2016 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements of AEEGCL for the period ended December 31, 2016.

 

In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of June 30, 2017, its interim condensed consolidated results of operations and cash flows for the three and six month periods ended June 30, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

 

Basis of Consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

 6 
   

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value.

 

Intangible Assets

 

Intangible assets consist of computer software and are recorded at cost. Amortization is calculated using the straight line method over the estimated useful life of the computer software, which is 5 years.

 

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. Depreciation is calculated using the straight line method over the estimated useful lives of the assets. The useful lives are as follows:

 

  Office equipment 5 years
  Motor vehicles 5 years

 

Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed of the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place.

 

Goodwill and Indefinite Lived Intangible Assets

 

Goodwill was generated through the acquisitions made by the Company. As the total consideration paid exceeded the value of the net assets acquired, the Company record goodwill for each of the completed acquisitions. At the date of acquisition, the Company performed a valuation to determine the value of the intangible assets, along with the allocation of assets and liabilities acquired. The goodwill is attributable to synergies and economies of scale provided to the Company by the acquired to the Company by the acquired entity.

 

The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually (as of December 31) and whenever events or circumstances change that indicate impairment may have occurred. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in legal factors or in the business climate of its segments; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of goodwill, the indefinite-lived intangible assets and the Company’s consolidated financial results.

 

Impairment of Long-lived Assets

 

The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the periods presented, the Company did not impair any plant and equipment .

 

 7 
   

 

Income Tax

 

The Company accounts for income taxes under the provisions of ASC Topic 740 “Accounting for Income Taxes.” Under ASC Topic 740, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.

 

The provision for income tax is based on the results for the period as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized.

 

Deferred income taxes are calculated at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

 

ASC Topic 740 also prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken, or for one expected to be taken, in a tax return. ASC Topic 740 also provides guidance related to, among other things, classification, accounting for interest and penalties associated with tax positions, and disclosure requirements. Any interest and penalties accrued related to unrecognized tax benefits will be recorded as tax expense.

 

Fair Value of Financial Instruments

 

The Company follows ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on the three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value:

 

Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources such as quoted prices in active markets for identical assets or liabilities.

 

Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar as or liabilities, or other inputs that are observable or can be corroborated by observable market data.

 

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

 

The carrying values of our financial instruments, including cash and cash equivalents, balances with directors and related parties, other receivables and other payables approximate their fair value due to the short maturities of these financial instruments. The Company did not have financial assets or liabilities that are measured at fair value on a recurring basis as of June 30, 2017 or December 31, 2016.

 

 8 
   

 

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 605, “Revenue Recognition.” Revenue will be recognized only when all of the following criteria are met: persuasive evidence for an agreement exists, delivery has occurred or services have been provided, the price or fee is fixed or determinable, and collection is reasonably assured.

 

Earnings Per Share

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. As of June 30, 2017 and December 31, 2016, there was no dilutive security outstanding.

 

Comprehensive Income

 

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax.

 

Segment Reporting

 

ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined that the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business segment: the operations of an equity information service platform designed to provide equity investment financing information to all enterprises in Asia.

 

Foreign Currency Translation

 

The accompanying consolidated financial statements are presented in United States Dollar (USD). The functional currency of the Company is USD. The functional currency of AEEGCL,AEEX HK and AACCL are USD, Hong Kong Dollar (HKD) and Renminbi (RMB),respectively. The translation rates are as follows:

 

   Three months ended June 30,   Six months ended June 30, 
   2017   2016   2017   2016 
Average HKD : US$ exchange rate in the period   0.128318    0.1289    0.882050    0.1287 
Spot HKD : US$ exchange rate as at the period end   0.128115    0.1289    0.128115    0.1289 
Average RMB : US$ exchange rate in the period   0.146130    0.1531    0.145764    0.153 
Spot RMB : US$ exchange rate as at the period end   0.147615    0.1505    0.147615    0.1505 

 

 9 
   

 

Economic and Political Risk

 

The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations.

 

The Company’s major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

 

Concentrations of Credit Risk

 

Cash includes cash at banks and demand deposits in accounts maintained with banks within the PRC. Total cash in these banks as of June 30, 2017 amounted to $370,670, none of which is covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks to its cash in bank accounts.

 

The Company performs ongoing credit evaluations of customers and has not experienced any material losses to date. The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties of its major customers.

 

Net Profit (Loss) Per Share of Common Stock

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net profit by the weighted average number of shares of common stock outstanding during the period.

 

The following table sets forth the computation of basic earnings per share, for the period ended June 30, 2017 and 2016:

 

   Three months ended   Six months ended 
   June 30, 2017   June 30,2016   June 30, 2017   June 30, 2016 
Net profit (net loss)  $96,144   $(167,699)  $329,896   $(350,204)
                     
Weighted average common shares issued and outstanding (basic and diluted)   1,146,000,000    1,128,351,648    1,146,000,000    1,064,175,824 
                     
Net profit (loss) per common share, basic and diluted  $0.00   $(0.00)  $0.00   $(0.00)

 

 10 
   

 

Advertising Costs

 

The Company follows ASC 720, “Advertising Costs,” and expenses costs as incurred. No advertising costs were incurred for the three and six months ended June 30, 2017.

 

Related Parties

 

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. See note 9.

 

Commitments and Contingencies

 

The Company follows ASC 450-20, “Loss Contingencies,” to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of June 30, 2017.

 

Recent Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s consolidated financial statements.

 

NOTE 3 – PREPAYMENTS

 

The amounts of $9,167 and $5,554 as at June 30, 2017 and December 31, 2016, respectively, were paid to the OTC Markets for their annual services.

 

NOTE 4 – INTANGIBLE ASSETS

 

   June 30, 2017   December 31, 2016 
         
Computer software  $7,189   $7,020 
Accumulated amortization   (1,529)   (1,008)
   $5,659   $6,013 

 

NOTE 5 – PLANT AND EQUIPMENT

 

   June 30, 2017   December 31, 2016 
         
Office equipment  $19,153   $18,799 
Motor vehicle  $0   $28,110 
    19,153    46,909 
Accumulated depreciation   (8,519)   (12,689)
   $10,635   $34,220 

 

 11 
   

 

NOTE 6 – INCOME TAXES LIABILITIES

 

   June 30, 2017   December 31, 2016 
         
Value added tax payable  $17,757   $839 
Personal Income Tax payable  $-   $6 
Urban construction and maintenance tax  $1,243   $127 
Education surcharge  $533   $80 
Local education surcharge  $355   $53 
Income tax payable  $3,853   $(87)
Total   23,741    1,017 

 

NOTE 7 – OTHER PAYABLE

 

   June 30, 2017   December 31, 2016 
         
Salaries and wages accrued to employees  $14,793   $8,100 
Accrued charges to third parties  $131,377   $166,643 
Other payables  $256   $(3,965)
   146,426    170,778 

 

NOTE 8 – RELATED PARTY TRANSACTIONS

 

Mr. Jun Liu (“Mr. Liu”), the Company’s President and Chief Executive Officer, advanced the Company $ 452,543 as of June 30, 2017 compared with $423,686 as of December 31, 2016. The amount due to Mr. Liu is unsecured, interest free and has no fixed terms of repayment.

 

 12 
   

 

NOTE 9 – EQUITY

 

Preferred Stock

 

The Company has authorized 1,000,000 preferred shares with a par value of $0.001 per share. The Board of Directors are authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. As of June 30, 2017, the Company does not have any issued shares of preferred stock and has not designated any shares for issuance.

 

Common Stock

 

As of the date of this Report on Form 10-Q, the Company has authorized 300,000,000 common shares with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.

 

On July 8, 2015, the Board of Directors authorized a ten for one (10:1) forward stock split, which was effectuated upon the filing of our amended Articles of Incorporation. The amended Articles of Incorporation were filed with the state of Nevada on July 22, 2015. Accordingly, the Company’s outstanding number of shares of common stock increased from 14,600,000 to 146,000,000. All relevant information relating to numbers of shares and per share information have been retrospectively adjusted to reflect the forward stock split for all periods presented.

 

On November 30, 2015, the Company executed a Sale and Purchase Agreement (the “Purchase Agreement”) to acquire 100% of the shares and assets of AEEGCL (the “Acquisition”). Pursuant to the Purchase Agreement, the Company issued one billion (1,000,000,000) shares of common stock to the owners of AEEGCL. The Company had a total of 146,000,000 shares of common stock outstanding immediately prior to Closing. After the Closing, the Company had a total of 1,146,000,000 shares of common stock outstanding, with the AEEGCL Stockholders owning 87.3% of the total issued and outstanding shares of the Company’s common stock.

 

As of June 30, 2017, the Company had 1,146,000,000 shares of common stock issued and outstanding.

 

NOTE 10 – COMMITMENTS AND CONTINGENCIES

 

The Company has no known commitments or contingencies as of June 30, 2017. From time to time the Company may become a party to litigation matters involving claims against the Company. Management believes that it is adequately insured for its operations and there are no current matters that would have a material effect on the Company’s financial position or results of operations.

 

NOTE 11 - SUBSEQUENT EVENTS

 

Resignation of Tao Peng

 

On July 14, 2017, Mr. Tao Peng notified Asia Equity Exchange Group, Inc. (the “Company”) of his resignation from the board of directors and the position as Chief Technical Officer of the Company effective immediately. Mr. Peng’s decision to resign did not result from any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

 

Appointment of Yue Ming as a member of the board of directors

 

On July 14, 2017, the Board appointed Ms. Yue Ming to fill the vacancy of the board of directors created by the resignation of Mr. Tao Peng, effective immediately.

 

The biographical information of Ms. Ming was set forth in the Company’s Current Report of Form 8-K, filed on March 24, 2017 and is set forth again below.

 

 13 
   

 

Ms. Ming, age 30, has more than 8 years corporate finance and accounting experience. She has served as our Chief Financial Officer since March 24, 2017. From January 20, 2017 to March 23, 2017, she acted as the Company’s Treasurer. From December 1, 2014 to March 23, 2017, she acted as the Company’s internal accountant. Prior to joining the Company, Ms. Ming was employed for more than 4 years by Shenzhen Yamuna Science and Technology Co., Ltd., an international trade company, most recently as finance manager from April 12, 2010 to November 30, 2014. Ms. Ming started her accounting career at Shenzhen Hui Tian Accounting Firm on July 1, 2009 after she graduated from Central China Normal University where she majored in international trade.

 

There is no family relationship that exists between Ms. Ming and any directors or executive officers of the Company. In addition, there are no arrangements or understandings between Ms. Ming and any other persons pursuant to which she was selected as a director of the Board and there are no transactions between the Company and Ms. Ming that would require disclosure under Item 404(a) of Regulation S-K.

 

Reverse Stock Split

 

On July 21, 2017, the Board of Directors of Asia Equity Exchange Group, Inc. Approved a reverse stock split of the Company’s common stock, per value $0.001 per share , at a ratio of 1-for-10 (the “Reverse Stock Split”) as of July 31, 2017 (the “Effective Date”).

 

Before the Effective Date, the Company was authorized to issue 3,000,000,000 shares of Common Stock and had 1,146,000,000 billion shares issued and outstanding. As a result of the Reverse Stock Split, the Company is authorized to issue 300,000,000 shares of Common Stock and 114,600,000 shares of Common Stock outstanding approximately (subject to adjustment due to the effect of rounding fractional shares into whole shares).

 

The Reverse Stock Split will not have any effect on the stated par value of the Common Stock.The Reverse Stock Split does not affect the Company’s authorized preferred stock. There are not outstanding shares of the Company’s preferred stock. After the Reverse Stock Split, the Company’s authorized preferred Stock of 1,000,000 shares will remain unchanged. Immediately after the Reverse Stock Split, each stockholder’s percentage ownership interest in the Company and proportional voting power will remain virtually unchanged except for minor changes and adjustments that will result from rounding fractional shares into whole shares. The rights and privileges of the holders of shares of Common Stock will be substantially unaffected by the Reverse Stock Split.

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.

 

The following management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto and the other financial information appearing elsewhere in this report. Our financial statements are prepared in US. Dollars and in accordance with U.S. GAAP.

 

Overview of Our Business

 

We were incorporated in the State of Nevada on July 15, 2013, under the name “I In The Sky, Inc.” On July 22, 2015, we changed the company name to “Asia Equity Exchange Group, Inc.” Our original business plan was to manufacture and market low cost GPS tracking devices and software to businesses and families. However, this business was not successful and we had no revenues generated from our business until April 12, 2016 when we completed our reverse acquisition of AEEGCL.

 

AEEGCL is a company incorporated under the laws of Samoa on May 29, 2015. Effective November 30, 2015, we executed a Sale and Purchase Agreement (the “Purchase Agreement”) to acquire 100% of the shares and assets of AEEGCL, in exchange for one billion (1,000,000,000) shares of common stock of the Company that were issued to the former owners of AEEGCL. The transactions contemplated by the Purchase Agreement were closed on April 12, 2016. As a result, our previous business plan was terminated and we are currently engaged in the business of AEEGCL.

 

 14 
   

 

AEEGCL offers an international equity assistance and information service platform designed to provide member registration services, equity investment financing information to enterprises in Asia, mainly in China. Currently 40 companies are registered with us, and additional 10 companies are in the process of preparing the necessary documents for registration with us. All companies currently registered with us are located in China, as are the additional companies in the process of registration.

 

Our member registration services refer to our equity investment and financing information dissemination platform. All medium and small-sized enterprises in Asia can apply to register with us. They can distribute their basic information, project status, financial status and equity structure information through our platform to attract individual and institutional investors all over the world. Our current focus is on helping companies in China with their financing needs. We also plan to offer our services in other Asian countries where we can assist with increasing a company’s public and investor awareness, enhancing its investor relationship and meeting its financing needs. Where we can, we will assist companies by recommending appropriate legal as well as accounting services. We do not work with companies planning to become SEC reporting companies or that intend to begin trading on U.S. markets.

 

AEEGCL owns 100% of AEEX HK, a Hong Kong corporation incorporated on December 22, 2014. AEEX HK owns 100% of Asian & American Consultant (Shenzhen) Co., Ltd., a corporation incorporated in the PRC on April 15, 2015. Both AEEX HK and AACCL are engaged in the provision of investment and corporate management consultancy services.

 

The acquisition of AEEGCL and its subsidiaries by us was accounted for as a reverse merger because on a post-merger basis, the former shareholders of AEEGCL held a majority of our outstanding common stock on a fully-diluted basis. As a result, AEEGCL is deemed to be the acquirer for accounting purposes. Accordingly, the consolidated financial statement data presented are those of AEEGCL, recorded at the historical basis of AEEGCL, for all periods prior to our acquisition of AEEGCL on April 12, 2016, and the financial statements of the historical operations of the consolidated companies from the effective date of the closing of the reverse merger.

 

We generated revenues of $649,890 and $nil for the six months ended June 30, 2017 and 2016, respectively. We had a net profit of $329,896 and a net loss of $352,234 in the second quarter of 2017 and 2016, respectively As of June 30, 2017, we had an accumulated deficit of $62,379 and net assets of $1,055,852.

 

Results of Operations

 

Comparison of Three Months Ended June 30, 2017 and 2016

 

    Three Months Ended June 30,     Change  
    2017     2016     $     %  
                         
Revenues   $ 290,928       -       290,928       100  
Cost of Sales     -       -       -       -  
Gross Profit     290,928       -       290,928       100  
General and administrative expenses     145,778       167,699       (21,921 )     (13 )
Professional fees     31,109       -       31,109       100  
Total other expenses     2,320       -       2,320       100  
Income tax credit     -       -       -       -  
Loss on abandonment of fixed assets     (11,634 )     -       (11,634 )     100  
Foreign currency translation adjustment             (3,524 )     3,524       (100 )
Loss before income taxes     100,087       (171,223 )     271,310       158  
Provision for income taxes     3,942       -       3,942       100  
Net profit (net loss)   $ 96,145     $ (171,223 )     267,368       156  

 

 15 
   

 

Revenues. Our revenue increased by 100% from $nil for the three months end March 31, 2016 to $290,928 for the three months end March 31, 2017, primarily due to significant increase financing request by customers.

 

General and administrative expenses. General and administrative expenses decreased to $145,778, or 50% of revenues for the three months ended June 30, 2017, as compared to $167,699 for the same period of 2016, representing a decrease of $21,921.

 

The rental cost of $68,111 for the second quarter of 2017, 46% of total operating expenses, compared to $62,488 during the comparable period in 2016, representing an increase of $5,623, which was primarily due to an increase in one office’s rent on April 10, 2017. The amount of salary paid increased to $37,211, during the three months ended June 30, 2017, 25% of total operating expenses, compared to $27,847 for the same period in 2016, representing an increase of $9,364, which was caused by employee enrollment expansion.

 

Income tax expense. For the three months ended June 30, 2017, income tax expense was $3,942 compared to $nil at the same period in 2016. The increase was caused by the increased revenue during the three months ended June 30, 2017.

 

Net (loss) profit. Because of industry growth and our effective marketing activities, we are able to further utilize online platform and grow our revenue in the second quarter of 2017. For the three months ended June 30, 2017, we recorded net income of $96,145, increased 156% compared to a net loss of $171,223 in the same period of last year.

 

Comparison of Six Months Ended June 30, 2017 and 2016

 

The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of net revenues.

 

    Six Months Ended June 30,     Change  
    2017     2016     $     %  
                         
Revenues   $ 649,890     $ -       649,890       100  
Cost of Sales     -       -       -       -  
Gross Profit     649,890       -       649,890       100  
General and administrative expenses     259,097       354,318       (95,221 )     (27 )
Professional fees     41,993               41,993       100  
Total other expenses     3,327               3,327       100  
Income tax credit             4,114                  
Loss on abandonment of fixed assets     (11,634 )             (11,634 )     100  
Foreign currency translation adjustment             (2,030 )     2,030       (100 )
Loss before income taxes     333,839       (352,234 )     686,073       (195 )
Provision for income taxes     3,942               3,942       100  
Net profit (net loss)   $ 329,897     $ (352,234 )     682,131       (194 )

 

 16 
   

 

Revenues. Our company has generated $649,890 and $nil revenues during the six months ended June 30, 2017 and 2016, respectively, from the provision of consultancy services in investment and corporate management. The increase was due to significant increase financing request by customers.

 

General and administrative expenses. General and administrative expenses decreased to $259,097, or 40% of revenues, for the six months ended June 30, 2017, as compared to $354,318, for the same period in 2016, representing a decrease of $95,221 , or 27%.

 

The rental of cost $123,727 for the first half of 2017, 48% of total operating expenses, compared to $62,488 during the comparable period in 2016, representing an increase of $61,239, which was primarily due the addition of a new rental office. The amount of salary paid increased to $63,164 during the six month ended June 30, 2017, 24% of total operating expenses, compared to $27,847 for the same period in 2016, representing an increase of $35,317. As a result of the Acquisition of AEEGCL, the financial statements of the historical operations of the consolidated companies accounted from January 1, 2017 to June 30, 2017 while the consolidated financial statement data of the same period of 2016 accounted from April 12, 2016, the effective date of the Closing of the Acquisition, to June 30, 2016, and from January 1, 2016 to April 11, 2016 there was only presented the data of Asia Equity Exchange Group, INC.

 

Income tax expense. For the six months ended June 30, 2017, income tax expense was $3,942 compared to $nil at the same period in 2016. The increase was caused by the increased revenue during the six months ended June 30, 2017.

 

Net (loss) profit. With the development of the business, we had a net profit of $329,897 for the six months ended June 30, 2017, compared to a net loss of $352,234 for the same period in 2016.

 

Liquidity and Capital Resources

 

We have financed our liquidity requirements primarily from funding from Mr. Jun Liu, our President and Chief Executive Officer and operating income.

 

As of June 30, 2017, we had cash and cash equivalents of approximately $370,669. Our total current assets were $1,678,563 and our total current liabilities were $622,710. For the six months ended June 30, 2017, we had a net profit of $329,897 and an accumulated deficit of $62,378 and as of June 30, 2017, a net equity of $1,055,853.

 

 17 
   

 

We plan to fund the operations through equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital and other cash requirements. In addition, there can be no assurance that we will be successful in obtaining any financing at terms satisfactory to us, or any financing at all.

 

    Six Months Ended June 30,  
    2017     2016  
             
Net Cash (Used In) Provided By Operating Activities   $ 312,960     $ 27,214  
Net Cash (Used In) Provided By Investing Activities     6,406       (88,373 )
Net Cash (Used In) Provided By Financing Activities     -       76,295  
Effect of foreign exchange rate     (4,056 )     (383 )
Net increase (decrease) in cash and cash equivalents     315,310       14,753  
Cash and cash equivalents, beginning of period     55,360       22,655  
Cash and cash equivalents, end of period   $ 370,670     $ 37,408  

 

Operating Activities

 

Net cash provided by operating activities was $312,960 in the six months ended June 30, 2017, as compared to net cash provided by operating activities of $nil in the same period in 2016. The increase of net cash provided by operating activities was attributed to our net profit. During the six months ended June 30, 2017, we received $665,775 from provided services and $300,484 from other operating activities. At the same time, we paid $59,656 for salary, $3,904 for taxes and government charges, and $589,739 for other operating activities.

 

Investing Activities

 

During the six months ended June 30, 2017 and 2016, the Company used $6,406 and $nil in investing activities, respectively.

 

Financing Activities

 

During the six months ended June 30, 2017 and 2016, the Company used no cash in financing activities and received no cash from financing activities.

 

Off-Balance Sheet Transactions

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

 

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Critical Accounting Policies

 

We prepare our financial statements in conformity with U.S. GAAP, which requires management to make certain estimates and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that management believes to be important at the time the condensed financial statements are prepared. On a regular basis, current trends and other factors considered support the preparation of our financial statements in conformity with U.S. GAAP, actual results could differ from our estimates and such differences could be material.

 

While we believe that the historical experience, current trends and other factors considered support the preparation of our financial statements in conformity with U.S. GAAP, actual results could differ from our estimates and such differences could be material.

 

Our significant accounting policies are described more fully in Note 2 to our accompanying condensed financial statements. We believe the following accounting policies are the most critical to aid you in fully understanding and evaluating this Management Discussion and Analysis.

 

Basis of Presentation

 

The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

Basis of Consolidation

 

The consolidated financial statements include the financial statements of AEEX and its subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value.

 

Property, plant and equipment

 

Property, plant and equipment are recorded at cost. Depreciation is calculated using the straight line method over the estimated useful lives of the assets. The useful lives are as follows:

 

Office equipment   5 years
Motor vehicles   5 years

 

Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed of, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place.

 

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Impairment of long-lived assets

 

The long-lived assets held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the periods presented, we did not impair any plant and equipment.

 

Revenue recognition

 

We recognize revenue from the sale of products and services in accordance with ASC 605, “Revenue Recognition.” Revenue will be recognized only when all of the following criteria are met: persuasive evidence for an agreement exists, delivery has occurred or services have been provided, the price or fee is fixed or determinable, and collection is reasonably assured.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

As required by Rule 13a-15 under the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2017. Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.

 

Management conducted its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer.Based upon, and as of the date of this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of June 30, 2017 because of the following material weaknesses that our management identified in our internal control over financial reporting as of June 30 , 2017:

 

  1. Inadequate Segregation of Duties: We have an inadequate number of personnel to properly implement control procedures.
     
  2. Insufficient Written Policies & Procedures: We have insufficient written policies and procedures for accounting and financial reporting. We have an inadequate financial statement closing process.
     
  3. We do not have independent directors or an audit committee.

 

Management is committed to improving its internal controls and will (1) continue to use third party specialists to address shortfalls in staffing and to assist the Company with accounting and finance responsibilities, (2) increase the frequency of independent reconciliations of significant accounts which will mitigate the lack of segregation of duties until there are sufficient personnel, (3) prepare and implement sufficient written policies and checklists for financial reporting and closing processes, and (4) may consider appointing outside directors and audit committee members in the future.

 

 20 
   

 

We intend to complete the remediation of the material weaknesses discussed above as soon as practicable but we can give no assurance that we will be able to do so. Designing and implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address the material weakness that we have identified, and material weaknesses in our disclosure controls and procedures may be identified in the future. Should we discover such conditions, we intend to remediate them as soon as practicable. We are committed to taking appropriate steps for remediation, as needed.

 

Changes in internal control over financial reporting

 

Except for the matters described above, there were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2017 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. We are currently not aware of any legal proceedings or claims that would require disclosure under Item 103 of Regulation S-K. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

 

Item 1A. Risk Factors.

 

Not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.

 

Item 6. Exhibits.

 

The following exhibits are filed as part of this report or incorporated by reference:

 

Exhibit No.   Description
     
31.1   Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2   Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1   Certifications of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.2   Certifications of Principle Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101   Interactive data files pursuant to Rule 405 of Regulation S-T.

 

 21 
   

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

 

Dated: August 10, 2017

 

  ASIA EQUITY EXCHANGE GROUP, INC.
   
  /s/ Jun Liu
  Jun Liu
 

Chief Executive Officer

(Principal Executive Officer)

 

  /s/ Yue Ming
  Yue Ming
 

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

 22 
   

 

EXHIBIT INDEX

 

Exhibit No.   Description
     
31.1   Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2   Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1   Certifications of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.2   Certifications of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101   Interactive data files pursuant to Rule 405 of Regulation S-T

 

 23 
   

 

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, Jun Liu, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Asia Equity Exchange Group, Inc.

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: August 10, 2017

 

/s/ Jun Liu  
Jun Liu  

Chief Executive Officer

(Principal Executive Officer)

 

 

 

 

 

EX-31.2 3 ex31-2.htm

 

Exhibit 31.2

 

CERTIFICATIONS

 

I, Yue Ming, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Asia Equity Exchange Group, Inc.

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: August 10, 2017

 

/s/ Yue Ming  
Yue Ming  

Chief Executive Officer

(Principal Financial and Accounting Officer)

 

 

 

 

 

EX-32.1 4 ex32-1.htm

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned, Jun Liu, the Chief Executive Officer of ASIA EQUITY EXCHANGE GROUP, INC. (the “Company”), DOES HEREBY CERTIFY that:

 

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

IN WITNESS WHEREOF, the undersigned has executed this statement this 10th day of August, 2017.

 

/s/ Jun Liu  
Jun Liu  

Chief Executive Officer

(Principal Executive Officer)

 

 

A signed original of this written statement required by Section 906 has been provided to Asia Equity Exchange Group, Inc. and will be retained by Asia Equity Exchange Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

 

 

 

EX-32.2 5 ex32-2.htm

 

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned, Yue Ming, the Chief Financial Officer of ASIA EQUITY EXCHANGE GROUP, INC. (the “Company”), DOES HEREBY CERTIFY that:

 

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

 

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

IN WITNESS WHEREOF, the undersigned has executed this statement this 10th day of August, 2017.

 

  /s/ Yue Ming
  Yue Ming
 

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

A signed original of this written statement required by Section 906 has been provided to Asia Equity Exchange Group, Inc. and will be retained by Asia Equity Exchange Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

 

 

 

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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2017
Aug. 10, 2017
Document And Entity Information    
Entity Registrant Name ASIA EQUITY EXCHANGE GROUP, INC.  
Entity Central Index Key 0001590565  
Document Type 10-Q  
Document Period End Date Jun. 30, 2017  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   114,600,000
Trading Symbol AEEX  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
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Condensed Balance Sheets (Unaudited) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current Assets    
Cash and cash equivalents $ 370,670 $ 55,360
Prepaid expenses 9,167 5,554
Account receivable
Other receivable 54,663 669
Rental deposit 35,541 34,708
Total current assets 470,041 96,291
Fixed assets, net of accumulated depreciation 10,635 34,220
Intangible assets, net of amortization 5,659 6,013
Goodwill 1,189,921 1,189,921
Other non-current assets 2,306 3,604
TOTAL ASSETS 1,678,563 1,330,049
Current Liabilities    
Accounts payable and accrued liabilities 14,793 171,795
Income Taxes Payable 23,741
Other payables 131,633
Amount due to a director 452,543 423,686
TOTAL LIABILITIES 622,709 595,481
STOCKHOLDERS’ (DEFICIT) EQUITY    
Preferred stock, 1,000,000 shares authorized; par value $0.001, none issued and outstanding
Common stock, 3,000,000,000 shares authorized; par value $0.001, 1,146,000,000 shares issued and outstanding 1,146,000 1,146,000
Capital deficiency (23,713) (23,713)
Accumulated deficit (62,378) (387,719)
Foreign currency translation adjustment (4,056)
Total Stockholders’ (Deficit) Equity 1,055,853 734,568
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY $ 1,678,563 $ 1,330,049
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, shares authorized 300,000,000 3,000,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares issued 1,146,000,000 1,146,000,000
Common stock, shares outstanding 1,146,000,000 1,146,000,000
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Statements of Operation and Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]        
REVENUE $ 290,928 $ 649,890
Cost of Sales
Net Revenue 290,928 649,890
OPERATING EXPENSES        
General and administrative 145,778 167,699 259,097 354,318
Professional fees 31,109 41,993
Total other expenses 2,320 3,327
Total Operating Expenses 179,207 167,699 304,417 354,318
Income tax credit 4,114
Net profit from operations 111,721 (167,699) 345,473 (350,204)
Other Income (expenses)        
Loss on abandonment of fixed assets (11,634) (11,634)
Foreign currency translation adjustment (3,524) (2,030)
Total other income (expense) (11,634) (3,524) (11,634) (2,030)
Loss before provision for income taxes 100,087 (171,223) 333,839 (352,234)
Provision for income taxes 3,942 3,942
Net Profit (net loss) $ 96,145 $ (171,223) $ 329,897 $ (352,234)
Basic and diluted loss per common share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of common shares outstanding - basic and diluted 1,146,000,000 1,128,351,648 1,146,000,000 1,064,175,824
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Profit $ 329,896 $ (350,204)
Changes in operating activities:    
Depreciation and amortization 6,141 5,693
Loss on disposal of equipment 11,633
Prepaid Expenses (57,384) (27,034)
Accounts payable and accrued liabilities 27,229 (9,725)
Advances from a director 408,484
Other items (4,556)
Net Cash Generated From Operating Activities 312,960 27,214
CASH FLOWS FROM INVESTING ACTIVITIES    
Advances to a related party (4,847)
Purchases of intangible asset (7,328)
Purchases of property and equipment (76,198)
Net receipt from liquidation of fixed assets 6,406
Net Cash Generated From Investing Activities 6,406 (88,373)
CASH FLOWS FROM FINANCING ACTIVITIES    
Advances from a related party 76,295
Net Cash Generated From Financing Activities   76,295
Effect of foreign exchange rate (4,056) (383)
Net increase (decrease) in cash and cash equivalents 315,310 14,753
Cash and cash equivalents, beginning of period 55,360 22,655
Cash and cash equivalents, end of period 370,670 37,408
Supplemental Cash Flow Disclosure:    
Cash paid for interest
Cash paid for income taxes 1,561
Non-cash financing activities:    
Note payable related party forgiven to contributed capital
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.7.0.1
Organization and Description of Business
6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of Business

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Asia Equity Exchange Group, Inc. (“the Company” or “AEEX”) is a Nevada corporation incorporated on July 15, 2013, under the name “I In The Sky, Inc.” (“SYYF”). The Company filed a name change to AEEX with the state of Nevada on July 22, 2015. It is based in Hong Kong, the People’s Republic of China. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, and the Company’s fiscal year ends on December 31.

 

The Company’s original business plan was to manufacture and market low cost GPS tracking devices and software to businesses and families. However, this business was not successful and the Company had no revenues generated from its business until April 12, 2016 when it completed the reverse acquisition of Asian Equity Exchange Group Company Limited (“AEEGCL”).

 

On November 30, 2015, the Company executed a Sale and Purchase Agreement (the “Purchase Agreement”) to acquire 100% of the shares and assets of AEEGCL (the “Acquisition”). Pursuant to the Purchase Agreement, the Company issued one billion (1,000,000,000) shares of common stock to the former owners of AEEGCL. The closing of the Acquisition took place on April 12, 2016. As a result, AEEGCL became a wholly-owned subsidiary of the Company and the business of AEEGCL became current business of the Company. The Company had a total of 146,000,000 shares of common stock outstanding immediately prior to the closing of the Acquisition. After the closing of the Acquisition, the Company had a total of 1,146,000,000 shares of common stock outstanding, with the former owners of AEEGCL owning 87.3% of the total issued and outstanding shares of the Company’s common stock.

 

AEEGCL was incorporated under the laws of Samoa on May 29, 2015. It offers an international equity assistance and information service platform designed to provide listing assistance services, equity investment financing information and public relationship services to enterprises in Asia, mainly in China. AEEGCL owns 100% of AEEX (HK) International Financial Service Limited (formerly known as Yinfu International Enterprise Limited, “AEEX HK”), a Hong Kong corporation incorporated on December 22, 2014. AEEX HK owns 100% of Asian & American Consultant (Shenzhen) Co., Ltd. (formerly known as Yinfu Guotai Investment Consultant (Shenzhen) Co., Ltd., “AACCL”), a corporation incorporated in the People’s Republic of China (the “PRC”) on April 15, 2015. Both AEEX HK and AACCL are engaged in the provision of investment and corporate management consultancy services.

 

The acquisition of AEEGCL and its subsidiaries by the Company was accounted for as a reverse merger because on a post-merger basis, the former shareholders of AEEGCL held a majority of the outstanding common stock of the Company on a voting and fully-diluted basis. As a result, AEEGCL is deemed to be the acquirer for accounting purposes. Accordingly, the consolidated financial statement data presented are those of AEEGCL, recorded at the historical basis of AEEGCL, for all periods prior to the Company’s acquisition of AEEGCL on April 12, 2016, and the financial statements of the historical operations of the consolidated companies from the effective date of the closing of the Acquisition.

 

The Company aims to build and complement the multi-layer capital market system in Asia, and create a unique and authoritative intercontinental equity information platform which will effectively complement in business functions, service means and financing channels with over the counter markets in countries and regions in Asia. AEEX also endeavours to build a system of global cooperation to provide listed enterprises with equity financing means through domestic and overseas channels, and to offer nurturing pre-listing tutoring, incubating and supporting services for their listings on overseas capital markets.

 

Reverse Stock Split

 

On July 21, 2017, the Board of Directors of Asia Equity Exchange Group, Inc. approved a reverse stock split of the Company’s common stock, per value $0.001 per share (the “Common Stock”), at a ratio of 1-for-10 (the “Reverse Stock Split”) as of July 31, 2017 (the “Effective Date”).

 

Before the Effective Date, the Company was authorized to issue 3,000,000,000 shares of Common Stock and had 1,146,000,000 shares of Common Stock issued and outstanding. Simultaneously with the Reverse Stock Split, the Company decreased its authorized Common Stock to 300,000,000 shares. As a result of the Reverse Stock Split, the Company currently has 114,600,000 shares of Common Stock issued and outstanding (subject to adjustment due to the effect of rounding fractional shares into whole shares).

 

The Reverse Stock Split does not have any effect on the stated par value of the Common Stock. The Reverse Stock Split does not affect the Company’s authorized preferred stock. There are no outstanding shares of the Company’s preferred stock. After the Reverse Stock Split, the Company’s authorized preferred Stock of 1,000,000 shares will remain unchanged. Immediately after the Reverse Stock Split, each stockholder’s percentage ownership interest in the Company and proportional voting power remains virtually unchanged except for minor changes and adjustments resulting from rounding fractional shares into whole shares. The rights and privileges of the holders of shares of Common Stock are substantially unaffected by the Reverse Stock Split.

XML 18 R7.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

The interim condensed consolidated financial information as of June 30, 2017 and for the six month periods ended June 30, 2017 and 2016 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements of AEEGCL for the period ended December 31, 2016.

 

In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of June 30, 2017, its interim condensed consolidated results of operations and cash flows for the three and six month periods ended June 30, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

 

Basis of Consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value.

 

Intangible Assets

 

Intangible assets consist of computer software and are recorded at cost. Amortization is calculated using the straight line method over the estimated useful life of the computer software, which is 5 years.

 

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. Depreciation is calculated using the straight line method over the estimated useful lives of the assets. The useful lives are as follows:

 

  Office equipment 5 years
  Motor vehicles 5 years

 

Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed of the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place.

 

Goodwill and Indefinite Lived Intangible Assets

 

Goodwill was generated through the acquisitions made by the Company. As the total consideration paid exceeded the value of the net assets acquired, the Company record goodwill for each of the completed acquisitions. At the date of acquisition, the Company performed a valuation to determine the value of the intangible assets, along with the allocation of assets and liabilities acquired. The goodwill is attributable to synergies and economies of scale provided to the Company by the acquired to the Company by the acquired entity.

 

The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually (as of December 31) and whenever events or circumstances change that indicate impairment may have occurred. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in legal factors or in the business climate of its segments; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of goodwill, the indefinite-lived intangible assets and the Company’s consolidated financial results.

 

Impairment of Long-lived Assets

 

The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the periods presented, the Company did not impair any plant and equipment .

 

Income Tax

 

The Company accounts for income taxes under the provisions of ASC Topic 740 “Accounting for Income Taxes.” Under ASC Topic 740, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.

 

The provision for income tax is based on the results for the period as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized.

 

Deferred income taxes are calculated at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

 

ASC Topic 740 also prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken, or for one expected to be taken, in a tax return. ASC Topic 740 also provides guidance related to, among other things, classification, accounting for interest and penalties associated with tax positions, and disclosure requirements. Any interest and penalties accrued related to unrecognized tax benefits will be recorded as tax expense.

 

Fair Value of Financial Instruments

 

The Company follows ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on the three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value:

 

Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources such as quoted prices in active markets for identical assets or liabilities.

 

Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar as or liabilities, or other inputs that are observable or can be corroborated by observable market data.

 

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

 

The carrying values of our financial instruments, including cash and cash equivalents, balances with directors and related parties, other receivables and other payables approximate their fair value due to the short maturities of these financial instruments. The Company did not have financial assets or liabilities that are measured at fair value on a recurring basis as of June 30, 2017 or December 31, 2016.

 

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 605, “Revenue Recognition.” Revenue will be recognized only when all of the following criteria are met: persuasive evidence for an agreement exists, delivery has occurred or services have been provided, the price or fee is fixed or determinable, and collection is reasonably assured.

 

Earnings Per Share

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. As of June 30, 2017 and December 31, 2016, there was no dilutive security outstanding.

 

Comprehensive Income

 

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax.

 

Segment Reporting

 

ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined that the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business segment: the operations of an equity information service platform designed to provide equity investment financing information to all enterprises in Asia.

 

Foreign Currency Translation

 

The accompanying consolidated financial statements are presented in United States Dollar (USD). The functional currency of the Company is USD. The functional currency of AEEGCL,AEEX HK and AACCL are USD, Hong Kong Dollar (HKD) and Renminbi (RMB),respectively. The translation rates are as follows:

 

    Three months ended June 30,     Six months ended June 30,  
    2017     2016     2017     2016  
Average HKD : US$ exchange rate in the period     0.128318       0.1289       0.882050       0.1287  
Spot HKD : US$ exchange rate as at the period end     0.128115       0.1289       0.128115       0.1289  
Average RMB : US$ exchange rate in the period     0.146130       0.1531       0.145764       0.153  
Spot RMB : US$ exchange rate as at the period end     0.147615       0.1505       0.147615       0.1505  

 

  9  
     

 

Economic and Political Risk

 

The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations.

 

The Company’s major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

 

Concentrations of Credit Risk

 

Cash includes cash at banks and demand deposits in accounts maintained with banks within the PRC. Total cash in these banks as of June 30, 2017 amounted to $370,670, none of which is covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks to its cash in bank accounts.

 

The Company performs ongoing credit evaluations of customers and has not experienced any material losses to date. The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties of its major customers.

 

Net Profit (Loss) Per Share of Common Stock

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net profit by the weighted average number of shares of common stock outstanding during the period.

 

The following table sets forth the computation of basic earnings per share, for the period ended June 30, 2017 and 2016:

 

    Three months ended     Six months ended  
    June 30, 2017     June 30,2016     June 30, 2017     June 30, 2016  
Net profit (net loss)   $ 96,144     $ (167,699 )   $ 329,896     $ (350,204 )
                                 
Weighted average common shares issued and outstanding (basic and diluted)     1,146,000,000       1,128,351,648       1,146,000,000       1,064,175,824  
                                 
Net profit (loss) per common share, basic and diluted   $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )

 

Advertising Costs

 

The Company follows ASC 720, “Advertising Costs,” and expenses costs as incurred. No advertising costs were incurred for the three and six months ended June 30, 2017.

 

Related Parties

 

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. See note 9.

 

Commitments and Contingencies

 

The Company follows ASC 450-20, “Loss Contingencies,” to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of June 30, 2017.

 

Recent Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s consolidated financial statements.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.7.0.1
Prepayments
6 Months Ended
Jun. 30, 2017
Prepayments  
Prepayments

NOTE 3 – PREPAYMENTS

 

The amounts of $9,167 and $5,554 as at June 30, 2017 and December 31, 2016, respectively, were paid to the OTC Markets for their annual services.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Intangible Assets
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

NOTE 4 – INTANGIBLE ASSETS

 

    June 30, 2017     December 31, 2016  
             
Computer software   $ 7,189     $ 7,020  
Accumulated amortization     (1,529 )     (1,008 )
    $ 5,659     $ 6,013  

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Plant and Equipment
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Plant and Equipment

NOTE 5 – PLANT AND EQUIPMENT

 

    June 30, 2017     December 31, 2016  
             
Office equipment   $ 19,153     $ 18,799  
Motor vehicle   $ 0     $ 28,110  
      19,153       46,909  
Accumulated depreciation     (8,519 )     (12,689 )
    $ 10,635     $ 34,220  

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes Liabilities
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes Liabilities

NOTE 6 – INCOME TAXES LIABILITIES

 

    June 30, 2017     December 31, 2016  
             
Value added tax payable   $ 17,757     $ 839  
Personal Income Tax payable   $ -     $ 6  
Urban construction and maintenance tax   $ 1,243     $ 127  
Education surcharge   $ 533     $ 80  
Local education surcharge   $ 355     $ 53  
Income tax payable   $ 3,853     $ (87 )
Total     23,741       1,017  

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.7.0.1
Other Payable
6 Months Ended
Jun. 30, 2017
Other Liabilities Disclosure [Abstract]  
Other Payable

NOTE 7 – OTHER PAYABLE

 

    June 30, 2017     December 31, 2016  
             
Salaries and wages accrued to employees   $ 14,793     $ 8,100  
Accrued charges to third parties   $ 131,377     $ 166,643  
Other payables   $ 256     $ (3,965 )
      146,426       170,778  

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

 

Mr. Jun Liu (“Mr. Liu”), the Company’s President and Chief Executive Officer, advanced the Company $ 452,543 as of June 30, 2017 compared with $423,686 as of December 31, 2016. The amount due to Mr. Liu is unsecured, interest free and has no fixed terms of repayment.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
Equity
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Equity

NOTE 9 – EQUITY

 

Preferred Stock

 

The Company has authorized 1,000,000 preferred shares with a par value of $0.001 per share. The Board of Directors are authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. As of June 30, 2017, the Company does not have any issued shares of preferred stock and has not designated any shares for issuance.

 

Common Stock

 

As of the date of this Report on Form 10-Q, the Company has authorized 300,000,000 common shares with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.

 

On July 8, 2015, the Board of Directors authorized a ten for one (10:1) forward stock split, which was effectuated upon the filing of our amended Articles of Incorporation. The amended Articles of Incorporation were filed with the state of Nevada on July 22, 2015. Accordingly, the Company’s outstanding number of shares of common stock increased from 14,600,000 to 146,000,000. All relevant information relating to numbers of shares and per share information have been retrospectively adjusted to reflect the forward stock split for all periods presented.

 

On November 30, 2015, the Company executed a Sale and Purchase Agreement (the “Purchase Agreement”) to acquire 100% of the shares and assets of AEEGCL (the “Acquisition”). Pursuant to the Purchase Agreement, the Company issued one billion (1,000,000,000) shares of common stock to the owners of AEEGCL. The Company had a total of 146,000,000 shares of common stock outstanding immediately prior to Closing. After the Closing, the Company had a total of 1,146,000,000 shares of common stock outstanding, with the AEEGCL Stockholders owning 87.3% of the total issued and outstanding shares of the Company’s common stock.

 

As of June 30, 2017, the Company had 1,146,000,000 shares of common stock issued and outstanding.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 10 – COMMITMENTS AND CONTINGENCIES

 

The Company has no known commitments or contingencies as of June 30, 2017. From time to time the Company may become a party to litigation matters involving claims against the Company. Management believes that it is adequately insured for its operations and there are no current matters that would have a material effect on the Company’s financial position or results of operations.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events

NOTE 11 - SUBSEQUENT EVENTS

 

Resignation of Tao Peng

 

On July 14, 2017, Mr. Tao Peng notified Asia Equity Exchange Group, Inc. (the “Company”) of his resignation from the board of directors and the position as Chief Technical Officer of the Company effective immediately. Mr. Peng’s decision to resign did not result from any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

 

Appointment of Yue Ming as a member of the board of directors

 

On July 14, 2017, the Board appointed Ms. Yue Ming to fill the vacancy of the board of directors created by the resignation of Mr. Tao Peng, effective immediately.

 

The biographical information of Ms. Ming was set forth in the Company’s Current Report of Form 8-K, filed on March 24, 2017 and is set forth again below.

 

Ms. Ming, age 30, has more than 8 years corporate finance and accounting experience. She has served as our Chief Financial Officer since March 24, 2017. From January 20, 2017 to March 23, 2017, she acted as the Company’s Treasurer. From December 1, 2014 to March 23, 2017, she acted as the Company’s internal accountant. Prior to joining the Company, Ms. Ming was employed for more than 4 years by Shenzhen Yamuna Science and Technology Co., Ltd., an international trade company, most recently as finance manager from April 12, 2010 to November 30, 2014. Ms. Ming started her accounting career at Shenzhen Hui Tian Accounting Firm on July 1, 2009 after she graduated from Central China Normal University where she majored in international trade.

 

There is no family relationship that exists between Ms. Ming and any directors or executive officers of the Company. In addition, there are no arrangements or understandings between Ms. Ming and any other persons pursuant to which she was selected as a director of the Board and there are no transactions between the Company and Ms. Ming that would require disclosure under Item 404(a) of Regulation S-K.

 

Reverse Stock Split

 

On July 21, 2017, the Board of Directors of Asia Equity Exchange Group, Inc. Approved a reverse stock split of the Company’s common stock, per value $0.001 per share , at a ratio of 1-for-10 (the “Reverse Stock Split”) as of July 31, 2017 (the “Effective Date”).

 

Before the Effective Date, the Company was authorized to issue 3,000,000,000 shares of Common Stock and had 1,146,000,000 billion shares issued and outstanding. As a result of the Reverse Stock Split, the Company is authorized to issue 300,000,000 shares of Common Stock and 114,600,000 shares of Common Stock outstanding approximately (subject to adjustment due to the effect of rounding fractional shares into whole shares).

 

The Reverse Stock Split will not have any effect on the stated par value of the Common Stock.The Reverse Stock Split does not affect the Company’s authorized preferred stock. There are not outstanding shares of the Company’s preferred stock. After the Reverse Stock Split, the Company’s authorized preferred Stock of 1,000,000 shares will remain unchanged. Immediately after the Reverse Stock Split, each stockholder’s percentage ownership interest in the Company and proportional voting power will remain virtually unchanged except for minor changes and adjustments that will result from rounding fractional shares into whole shares. The rights and privileges of the holders of shares of Common Stock will be substantially unaffected by the Reverse Stock Split.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

The interim condensed consolidated financial information as of June 30, 2017 and for the six month periods ended June 30, 2017 and 2016 have been prepared without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements of AEEGCL for the period ended December 31, 2016.

 

In the opinion of management, all adjustments (which include all significant normal and recurring adjustments) necessary to present a fair statement of the Company’s interim condensed consolidated financial position as of June 30, 2017, its interim condensed consolidated results of operations and cash flows for the three and six month periods ended June 30, 2017 and 2016, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Basis of Consolidation

Basis of Consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value.

Intangible Assets

Intangible Assets

 

Intangible assets consist of computer software and are recorded at cost. Amortization is calculated using the straight line method over the estimated useful life of the computer software, which is 5 years.

Property, Plant and Equipment

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. Depreciation is calculated using the straight line method over the estimated useful lives of the assets. The useful lives are as follows:

 

  Office equipment 5 years
  Motor vehicles 5 years

 

Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed of the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place.

Goodwill and Indefinite Lived Intangible Assets

Goodwill and Indefinite Lived Intangible Assets

 

Goodwill was generated through the acquisitions made by the Company. As the total consideration paid exceeded the value of the net assets acquired, the Company record goodwill for each of the completed acquisitions. At the date of acquisition, the Company performed a valuation to determine the value of the intangible assets, along with the allocation of assets and liabilities acquired. The goodwill is attributable to synergies and economies of scale provided to the Company by the acquired to the Company by the acquired entity.

 

The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually (as of December 31) and whenever events or circumstances change that indicate impairment may have occurred. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in legal factors or in the business climate of its segments; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of goodwill, the indefinite-lived intangible assets and the Company’s consolidated financial results.

Impairment of Long-lived Assets

Impairment of Long-lived Assets

 

The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the periods presented, the Company did not impair any plant and equipment .

Income Tax

Income Tax

 

The Company accounts for income taxes under the provisions of ASC Topic 740 “Accounting for Income Taxes.” Under ASC Topic 740, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.

 

The provision for income tax is based on the results for the period as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences, and deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized.

 

Deferred income taxes are calculated at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

 

ASC Topic 740 also prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken, or for one expected to be taken, in a tax return. ASC Topic 740 also provides guidance related to, among other things, classification, accounting for interest and penalties associated with tax positions, and disclosure requirements. Any interest and penalties accrued related to unrecognized tax benefits will be recorded as tax expense.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The Company follows ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on the three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value:

 

Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources such as quoted prices in active markets for identical assets or liabilities.

 

Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar as or liabilities, or other inputs that are observable or can be corroborated by observable market data.

 

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

 

The carrying values of our financial instruments, including cash and cash equivalents, balances with directors and related parties, other receivables and other payables approximate their fair value due to the short maturities of these financial instruments. The Company did not have financial assets or liabilities that are measured at fair value on a recurring basis as of June 30, 2017 or December 31, 2016.

Revenue Recognition

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 605, “Revenue Recognition.” Revenue will be recognized only when all of the following criteria are met: persuasive evidence for an agreement exists, delivery has occurred or services have been provided, the price or fee is fixed or determinable, and collection is reasonably assured.

Earnings Per Share

Earnings Per Share

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. As of June 30, 2017 and December 31, 2016, there was no dilutive security outstanding.

Comprehensive Income

Comprehensive Income

 

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income includes net income and the foreign currency translation gain, net of tax.

Segment Reporting

Segment Reporting

 

ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Management determined that the Company’s operations constitute a single reportable segment in accordance with ASC 280. The Company operates exclusively in one business segment: the operations of an equity information service platform designed to provide equity investment financing information to all enterprises in Asia.

Foreign Currency Translation

Foreign Currency Translation

 

The accompanying consolidated financial statements are presented in United States Dollar (USD). The functional currency of the Company is USD. The functional currency of AEEGCL,AEEX HK and AACCL are USD, Hong Kong Dollar (HKD) and Renminbi (RMB),respectively. The translation rates are as follows:

 

    Three months ended June 30,     Six months ended June 30,  
    2017     2016     2017     2016  
Average HKD : US$ exchange rate in the period     0.128318       0.1289       0.882050       0.1287  
Spot HKD : US$ exchange rate as at the period end     0.128115       0.1289       0.128115       0.1289  
Average RMB : US$ exchange rate in the period     0.146130       0.1531       0.145764       0.153  
Spot RMB : US$ exchange rate as at the period end     0.147615       0.1505       0.147615       0.1505  

Economic and Political Risk

Economic and Political Risk

 

The Company’s major operations are conducted in the PRC. Accordingly, the political, economic, and legal environments in the PRC, as well as the general state of the PRC’s economy may influence the Company’s business, financial condition, and results of operations.

 

The Company’s major operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

Concentrations of Credit Risk

Concentrations of Credit Risk

 

Cash includes cash at banks and demand deposits in accounts maintained with banks within the PRC. Total cash in these banks as of June 30, 2017 amounted to $370,670, none of which is covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks to its cash in bank accounts.

 

The Company performs ongoing credit evaluations of customers and has not experienced any material losses to date. The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties of its major customers.

Net Profit (Loss) Per Share of Common Stock

Net Profit (Loss) Per Share of Common Stock

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net profit by the weighted average number of shares of common stock outstanding during the period.

 

The following table sets forth the computation of basic earnings per share, for the period ended June 30, 2017 and 2016:

 

    Three months ended     Six months ended  
    June 30, 2017     June 30,2016     June 30, 2017     June 30, 2016  
Net profit (net loss)   $ 96,144     $ (167,699 )   $ 329,896     $ (350,204 )
                                 
Weighted average common shares issued and outstanding (basic and diluted)     1,146,000,000       1,128,351,648       1,146,000,000       1,064,175,824  
                                 
Net profit (loss) per common share, basic and diluted   $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )

Advertising Costs

Advertising Costs

 

The Company follows ASC 720, “Advertising Costs,” and expenses costs as incurred. No advertising costs were incurred for the three and six months ended June 30, 2017.

Related Parties

Related Parties

 

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. See note 9.

Commitments and Contingencies

Commitments and Contingencies

 

The Company follows ASC 450-20, “Loss Contingencies,” to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of June 30, 2017.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s consolidated financial statements.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Schedule of Property, Plant and Equipment Useful Lives

Property, plant and equipment are recorded at cost. Depreciation is calculated using the straight line method over the estimated useful lives of the assets. The useful lives are as follows:

 

  Office equipment 5 years
  Motor vehicles 5 years

Schedule of Translation Rate

The translation rates are as follows:

 

    Three months ended June 30,     Six months ended June 30,  
    2017     2016     2017     2016  
Average HKD : US$ exchange rate in the period     0.128318       0.1289       0.882050       0.1287  
Spot HKD : US$ exchange rate as at the period end     0.128115       0.1289       0.128115       0.1289  
Average RMB : US$ exchange rate in the period     0.146130       0.1531       0.145764       0.153  
Spot RMB : US$ exchange rate as at the period end     0.147615       0.1505       0.147615       0.1505  

Schedule of Earnings per Share

The following table sets forth the computation of basic earnings per share, for the period ended June 30, 2017 and 2016:

 

    Three months ended     Six months ended  
    June 30, 2017     June 30,2016     June 30, 2017     June 30, 2016  
Net profit (net loss)   $ 96,144     $ (167,699 )   $ 329,896     $ (350,204 )
                                 
Weighted average common shares issued and outstanding (basic and diluted)     1,146,000,000       1,128,351,648       1,146,000,000       1,064,175,824  
                                 
Net profit (loss) per common share, basic and diluted   $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )

XML 30 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets

    June 30, 2017     December 31, 2016  
             
Computer software   $ 7,189     $ 7,020  
Accumulated amortization     (1,529 )     (1,008 )
    $ 5,659     $ 6,013  

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.7.0.1
Plant and Equipment (Tables)
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Schedule of Plant and Equipment

    June 30, 2017     December 31, 2016  
             
Office equipment   $ 19,153     $ 18,799  
Motor vehicle   $ 0     $ 28,110  
      19,153       46,909  
Accumulated depreciation     (8,519 )     (12,689 )
    $ 10,635     $ 34,220  

XML 32 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes Liabilities (Tables)
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Schedule of Income Taxes Payables

    June 30, 2017     December 31, 2016  
             
Value added tax payable   $ 17,757     $ 839  
Personal Income Tax payable   $ -     $ 6  
Urban construction and maintenance tax   $ 1,243     $ 127  
Education surcharge   $ 533     $ 80  
Local education surcharge   $ 355     $ 53  
Income tax payable   $ 3,853     $ (87 )
Total     23,741       1,017  

XML 33 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Other Payable (Tables)
6 Months Ended
Jun. 30, 2017
Other Liabilities Disclosure [Abstract]  
Schedule of Other Payable

    June 30, 2017     December 31, 2016  
             
Salaries and wages accrued to employees   $ 14,793     $ 8,100  
Accrued charges to third parties   $ 131,377     $ 166,643  
Other payables   $ 256     $ (3,965 )
      146,426       170,778  

XML 34 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
Organization and Description of Business (Details Narrative) - $ / shares
6 Months Ended
Jul. 08, 2015
Jun. 30, 2017
Dec. 31, 2016
Nov. 30, 2015
Common stock shares issued   1,146,000,000 1,146,000,000  
Common stock par value   $ 0.001 $ 0.001  
Common stock shares authorized   300,000,000 3,000,000,000  
Common stock shares outstanding   1,146,000,000 1,146,000,000  
Preferred stock, shares outstanding    
Preferred stock shares authorized   1,000,000 1,000,000  
July 21 2017 [Member]        
Common stock shares issued   1,146,000,000    
Common stock shares authorized   3,000,000,000    
Common stock shares outstanding   1,146,000,000    
Reverse Stock Split [Member]        
Preferred stock, shares outstanding      
Preferred stock shares authorized   1,000,000    
Reverse Stock Split [Member] | July 21 2017 [Member]        
Common stock shares issued   114,600,000    
Common stock ratio   1-for-10    
Common stock shares authorized   300,000,000    
Common stock shares outstanding   114,600,000    
Board of Directors [Member]        
Common stock ratio ten for one (10:1) forward stock split      
Board of Directors [Member] | Reverse Stock Split [Member] | July 21 2017 [Member]        
Common stock par value   $ 0.001    
AEEGCL [Member]        
Ownership percentage   100.00%    
AEEX (HK) [Member]        
Ownership percentage   100.00%    
Sale and Purchase Agreement [Member]        
Shares acquisition percentage       100.00%
Common stock shares issued       1,000,000,000
Common stock shares outstanding prior to closing acquisition       146,000,000
Common stock shares outstanding after closing acquisition       1,146,000,000
Ownership percentage       87.30%
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies (Details Narrative)
6 Months Ended 12 Months Ended
Jun. 30, 2017
USD ($)
Segment
$ / shares
Dec. 31, 2016
$ / shares
Dilutive security outstanding | $ / shares
Cash in banks | $ $ 370,670  
Number of reportable segment | Segment 1  
Computer Software [Member]    
Intangible assets estimated useful lives 5 years  
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Lives (Details)
6 Months Ended
Jun. 30, 2017
Office Equipment [Member]  
Property and equipment estimated useful life 5 years
Motor Vehicles [Member]  
Property and equipment estimated useful life 5 years
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies - Schedule of Translation Rate (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Average HKD [Member]        
Foreign currency translation rate .128318 0.1289 0.882050 0.1287
Spot HKD [Member]        
Foreign currency translation rate 0.128115 0.1289 0.128115 0.1289
Average RMB [Member]        
Foreign currency translation rate 0.146130 0.1531 0.145764 0.153
Spot RMB [Member]        
Foreign currency translation rate 0.147615 0.1505 0.147615 0.1505
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.7.0.1
Summary of Significant Accounting Policies - Schedule of Earnings per Share (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Accounting Policies [Abstract]        
Net profit (net loss) $ 96,145 $ (171,223) $ 329,897 $ (352,234)
Weighted average common shares issued and outstanding (basic and diluted) 1,146,000,000 1,128,351,648 1,146,000,000 1,064,175,824
Net profit (loss) per common share, basic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.7.0.1
Prepayments (Details Narrative) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Prepayments    
Prepaid expenses $ 9,167 $ 5,554
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.7.0.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]    
Computer software $ 7,189 $ 7,020
Accumulated amortization (1,529) (1,008)
Intangible assets, net of amortization $ 5,659 $ 6,013
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.7.0.1
Plant and Equipment - Schedule of Plant and Equipment (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Plant and equipment, gross $ 19,153 $ 46,909
Accumulated depreciation (8,519) (12,689)
Plant and equipment, net 10,635 34,220
Office Equipment [Member]    
Plant and equipment, gross 19,153 18,799
Motor Vehicles [Member]    
Plant and equipment, gross $ 0 $ 28,110
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes Liabilities - Schedule of Income Taxes Payables (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Income Taxes Payable $ 23,741
Value Added Tax Payable [Member]    
Income Taxes Payable 17,757 839
Personal Income Tax Payable [Member]    
Income Taxes Payable 6
Urban Construction and Maintenance Tax [Member]    
Income Taxes Payable 1,243 127
Education Surcharge [Member]    
Income Taxes Payable 533 80
Local Education Surcharge [Member]    
Income Taxes Payable 355 53
Income Tax Payable [Member]    
Income Taxes Payable $ 3,853 $ (87)
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1
Other Payable - Schedule of Other Payable (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Other Liabilities Disclosure [Abstract]    
Salaries and wages accrued to employees $ 14,793 $ 8,100
Accrued charges to third parties 131,377 166,643
Other payables 256 (3,965)
Total $ 146,426 $ 170,778
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.7.0.1
Related Party Transactions (Details Narrative) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Related Party Transactions [Abstract]    
Due to related party $ 452,543 $ 423,686
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.7.0.1
Equity (Details Narrative) - $ / shares
6 Months Ended
Jul. 08, 2015
Jun. 30, 2017
Dec. 31, 2016
Preferred stock shares authorized   1,000,000 1,000,000
Preferred share par value   $ 0.001 $ 0.001
Common stock shares authorized   300,000,000 3,000,000,000
Common stock par value   $ 0.001 $ 0.001
Common stock voting rights   Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.  
Common stock shares outstanding   1,146,000,000 1,146,000,000
Common stock outstanding immediately prior closing   146,000,000  
Common stock shares issued   1,146,000,000 1,146,000,000
AEEGCL [Member]      
Ownership percentage   100.00%  
Stock issued during period acquisition   1,000,000,000  
Stockholders [Member] | AEEGCL [Member]      
Ownership percentage   87.30%  
Minimum [Member]      
Common stock shares outstanding   14,600,000  
Maximum [Member]      
Common stock shares outstanding   146,000,000  
Board of Directors [Member]      
Reserve stock split ten for one (10:1) forward stock split    
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events (Details Narrative) - $ / shares
Jul. 21, 2017
Jul. 08, 2015
Jun. 30, 2017
Dec. 31, 2016
Common stock par value     $ 0.001 $ 0.001
Common stock shares authorized     300,000,000 3,000,000,000
Common stock shares issued     1,146,000,000 1,146,000,000
Common stock shares outstanding     1,146,000,000 1,146,000,000
Preferred stock, shares outstanding    
Preferred stock shares authorized     1,000,000 1,000,000
Reverse Stock Split [Member]        
Preferred stock, shares outstanding      
Preferred stock shares authorized     1,000,000  
Board of Directors [Member]        
Common stock ratio   ten for one (10:1) forward stock split    
Subsequent Event [Member]        
Common stock shares authorized 300,000,000      
Common stock shares issued 1,146,000,000      
Common stock shares outstanding 1,146,000,000      
Subsequent Event [Member] | Reverse Stock Split [Member]        
Common stock shares authorized 300,000,000      
Common stock shares outstanding 114,600,000      
Preferred stock, shares outstanding      
Preferred stock shares authorized     1,000,000  
Subsequent Event [Member] | Board of Directors [Member] | Reverse Stock Split [Member]        
Common stock par value $ 0.001      
Common stock ratio 1-for-10      
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