0001493152-19-002158.txt : 20190215 0001493152-19-002158.hdr.sgml : 20190215 20190215093809 ACCESSION NUMBER: 0001493152-19-002158 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 67 CONFORMED PERIOD OF REPORT: 20181231 FILED AS OF DATE: 20190215 DATE AS OF CHANGE: 20190215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Agape ATP Corp CENTRAL INDEX KEY: 0001713210 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HEALTH SERVICES [8000] IRS NUMBER: 364838886 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-220144 FILM NUMBER: 19610055 BUSINESS ADDRESS: STREET 1: NO. 17, 17-1, 17-2, 17-3, WISMA LAXTON, STREET 2: JALAN DESA, TAMAN DESA, OFF JALAN KLANG CITY: KUALA LUMPUR STATE: N8 ZIP: 58100 BUSINESS PHONE: 60-192230099 MAIL ADDRESS: STREET 1: NO. 17, 17-1, 17-2, 17-3, WISMA LAXTON, STREET 2: JALAN DESA, TAMAN DESA, OFF JALAN KLANG CITY: KUALA LUMPUR STATE: N8 ZIP: 58100 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 December 31, 2018

 

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 333-220144

 

AGAPE ATP CORPORATION

(Exact name of registrant issuer as specified in its charter)

 

Nevada   36-4838886

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

1705 - 1708, Level 17, Tower 2, Faber Tower, Jalan Desa Bahagia,
Taman Desa, 58100 Kuala Lumpur, Malaysia.

(Address of principal executive offices, including zip code)

 

Registrant’s phone number, including area code (60) 192230099

 

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 preceding 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 (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit and post such files).

 

YES [  ] NO [X]

 

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.

 

Large Accelerated Filer [  ] Accelerated Filer [  ] Non-accelerated Filer [  ] Smaller reporting company [X]

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 pursuant to 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]

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

 

Yes [  ] No [  ]

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class  Outstanding at February 14, 2019
Common Stock, $.0001 par value  376,275,500

 

 

 

 
 

 

TABLE OF CONTENTS

 

    Page
PART I FINANCIAL INFORMATION  
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: F-1
  Condensed Consolidated Balance Sheets as of December 31, 2018 (unaudited) and June 30, 2018 (audited) F-2
  Condensed Consolidated Statements of Operations and Comprehensive Losses for the Three and Six Months Ended December 31, 2018 and 2017 (unaudited) F-3
  Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended December 31,2018 (unaudited) F-4
  Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2018 and 2017 (unaudited) F-5
  Notes to the Condensed Consolidated Financial Statements F-6 - F-15
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 5
ITEM 4. CONTROLS AND PROCEDURES 5
PART II OTHER INFORMATION  
ITEM 1 LEGAL PROCEEDINGS 6
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 6
ITEM 3 DEFAULTS UPON SENIOR SECURITIES 6
ITEM 4 MINE SAFETY DISCLOSURES 6
ITEM 5 OTHER INFORMATION 6
ITEM 6 EXHIBITS 7
  SIGNATURES 8

 

2
 

 

PART I FINANCIAL INFORMATION

 

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

 

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Condensed Consolidated Financial Statements  
   
Condensed Consolidated Balance Sheets as of December 31, 2018 (unaudited) and June 30, 2018 (audited) F-2
Condensed Consolidated Statements of Operations and Comprehensive Losses for the Three and Six Months Ended December 31, 2018 and 2017 (unaudited) F-3
Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended December 31,2018 (unaudited) F-4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2018 and 2017 (unaudited) F-5
Notes to the Condensed Consolidated Financial Statements F-6 - F-15

 

F-1
 

 

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2018 AND JUNE 30, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

   As of   As of 
   December 31, 2018   June 30, 2018 
   Unaudited   Audited 
ASSETS          
NON-CURRENT ASSETS          
Investment in investee company  $734,195   $832,335 
Investment in marketable securities   501,000    500,000 
Total Non-Current Assets  $1,235,195   $1,332,335 
           
CURRENT ASSETS          
Cash and cash equivalents  $3,452,917   $3,531,255 
Prepayments and deposits   510,069    264,941 
Total Current Assets  $3,962,986   $3,796,196 
           
TOTAL ASSETS  $5,198,181   $5,128,531 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Other payables and accrued liabilities   7,884    19,749 
Deposit received   217,743    - 
Income tax provision   12,299    5,334 
Amount due to a director   3,921    3,922 
Amount due to a related party   -    745 
Total Current Liabilities  $241,847   $29,750 
           
TOTAL LIABILITIES  $241,847   $29,750 
           
STOCKHOLDERS’ EQUITY          
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding   -    - 
Common Stock, par value $0.0001; 1,000,000,000 shares authorized, 376,275,500 and 376,275,500 issued and outstanding as of December 31, 2018 and June 30, 2018  $37,628   $37,628 
Additional paid in capital   5,293,082    5,293,082 
Accumulated other comprehensive losses   (1,294)   (1,293)
Accumulated losses   (373,082)   (230,636)
TOTAL STOCKHOLDERS’ EQUITY  $4,956,334   $5,098,781 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $5,198,181   $5,128,531 

 

See accompanying notes to condensed consolidated financial statements.

 

F-2
 

 

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSSES

FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2018 and 2017

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

   Three Months Ended
December 31,
   Six Months Ended
December 31,
 
   2018   2017   2018   2017 
REVENUE  $269,921   $-   $685,288   $489,499 
                     
COST OF REVENUE   (240,932)   -    (619,355)   (443,670)
                     
GROSS PROFIT  $28,989   $-   $65,933   $45,829 
                     
REALISED GAIN ON FOREIGN EXCHANGE   1,794    -    3,391    - 
                     
UNREALISED LOSS ON FOREIGN EXCHANGE   (1,455)   -    (81,484)   - 
                     
OTHER INCOME   37,863    441    37,887    445 
                     
SELLING, GENERAL AND ADMINISTRATIVE AND OPERATING EXPENSES   (24,479)   (124,419)   (63,068)   (217,766)
                     
PROFIT/(LOSS) BEFORE INCOME TAX  $42,712   $(123,978)  $(37,341)  $(171,492)
                     
SHARE OF RESULT OF INVESTEE COMPANY   (46,031)   -    (98,140)   - 
    (3,319)   (123,978)   (135,481)   (171,492)
                     
TAXATION   (3,261)   -    (6,965)   (7,186)
                     
NET LOSS  $(6,580)  $(123,978)  $(142,446)  $(178,678)
Other comprehensive income:                    
- Foreign currency translation adjustment   (1)   4,129    (1)   3,744 
                     
TOTAL COMPREHENSIVE LOSS  $(6,581)  $(119,849)  $(142,447)   (174,934)
                     
Net loss per share- Basic and diluted   (0.00)   (0.00)   (0.00)   (0.00)
                     
Weighted average number of common shares outstanding - Basic and diluted   376,275,500    371,476,826    376,275,500    371,413,413 

 

See accompanying notes to condensed consolidated financial statements.

 

F-3
 

 

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

   COMMON STOCK   ADDITIONAL   ACCUMULATED OTHER         
   Number of
shares
   Amount   PAID-IN
CAPITAL
   COMPREHENSIVE
LOSS
   ACCUMULATED
LOSSES
   TOTAL
EQUITY
 
Balance as of June 30, 2018 (audited)   376,275,600   $37,628   $5,293,082   $(1,293)  $(230,636)  $5,098,781 
Foreign currency translation adjustment   -    -    -    (1)   -    (1)
Net loss   -    -    -    -   (142,446)   (142,446)
Balance as of December 31, 2018 (unaudited)   376,275,600   $37,628   $5,293,082   $(1,294)  $(373,082)  $4,956,334 

 

See accompanying notes to condensed consolidated financial statements

 

F-4
 

 

AGAPE ATP CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED DECMEBER 31, 2018 and 2017

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)

 

   Six months ended
December 31,
 
   2018   2017 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(142,447)  $(178,678)
Adjustments to reconcile net loss to net cash used in operating activities:          
Share of result of investee company   98,140    - 
Changes in operating assets and liabilities:          
Accounts receivables   -    (489,838)
Prepayments and deposits   (245,128)   

(360,506

)
Accounts payables   -    131,161 
Other payables and accrued liabilities   (11,865)   (6,000)
Deposit received   217,743    -
Income tax provision   6,965    7,187 
Amount due to related party   (745)   - 
Amount due to director   -    3,841 
           
Net cash used in operating activities   (77,337)   (892,833)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Investment in financial assets   (1,000)   - 
Proceeds from issuance of stock   -    434,500 
           
Net cash (used in)/ provided by financing activities   (1,000)   434,500 
           
Effect of exchange rate changes on cash and cash equivalents   (1)   3,744 
           
Net change in cash and cash equivalents   (78,338)   (454,589)
Cash and cash equivalents, beginning of period   3,531,255    2,312,748 
CASH AND CASH EQUIVALENTS, END OF PERIOD  $3,452,917   $1,858,159 
           
SUPPLEMENTAL CASH FLOWS INFORMATION          
Income taxes paid  $-   $- 
Interest paid  $-   $- 

 

See accompanying notes to condensed consolidated financial statements.

 

F-5
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

1. DESCRIPTION OF BUSINESS AND ORGANIZATION

 

Agape ATP Corporation was incorporated on June 1, 2016 under the laws of the state of Nevada.

 

Agape ATP Corporation operates through its wholly owned subsidiary, Agape ATP Corporation, a Company organized in Labuan, Malaysia.

 

Agape ATP Corporation, incorporated in Labuan, Malaysia, is an investment holding company with 100% equity interest in Agape ATP International Holding Limited, a company incorporated in Hong Kong.

 

The Company and its subsidiaries are engaged in providing services in the Health and Wellness Industry. The principal activity of the Company and its subsidiaries is to supply high-quality health and wellness products, including supplement to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system in our body.

 

The Company, through its subsidiaries, mainly supplies high quality beauty products. Details of the Company’s subsidiaries and investee company:

 

   Subsidiary company name  Place and date
of
incorporation
  Particulars of
issued capital
  Principal
activities
  Proportional of
ownership
interest and
voting power
held
 
1.  Agape ATP Corporation  Labuan,
March 6, 2017
  1 share of ordinary share of US$1 each  Investment holding   100%
                  
2.  Agape ATP International Holding Limited  Hong Kong,
June 1, 2017
  1 share of ordinary share of HK$1 each  Health and wellness products and health solution advisory services   100%

 

   Investee company name  Place and date
of
incorporation
  Particulars of
issued capital
  Principal
activities
  Proportional of
ownership
interest and
voting power
held
 
1.  Unreserved Sdn Bhd  Malaysia,
August 25, 2008
  500,000 shares of ordinary share of RM7 each  Magazines publication and advertising   20%

 

  (1) Based on the contractual arrangements between the Company and other investors, the Company has the power to direct the relevant activities of these entities unilaterally, and hence the Company has control over these entities.

 

F-6
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The consolidated financial statements for Agape ATP Corporation and its subsidiaries for the six months ended December 31, 2018 and 2017 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Agape ATP Corporation and its wholly owned subsidiaries, Agape ATP Corporation and Agape ATP International Holding Limited. Intercompany accounts and transactions have been eliminated in consolidation. The Company has adopted June 30 as its fiscal year end.

 

Basis of consolidation

 

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

 

Use of estimates

 

Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

 

Cash and cash equivalents

 

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

 

Accounts receivable

 

Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

F-7
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

Investment in investee company

 

The Company evaluates investment in investee company as it holds an equity interest based on the amount of control it exercises over the operations of the investee, exposure to losses in excess of its investment, the ability to significantly influence the investee and whether the Company is the primary beneficiary of the investee.

 

Investment in marketable securities

 

Marketable securities included in marketable securities (current) and other investments (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities included in marketable securities (current) are stated at the lower of cost or market in the aggregate and investments other than marketable equity securities in other investments (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale.

 

Deposit received

 

Deposit received refers to payment received in advance for products which have not yet been delivered. Deposits received is classified on the consolidated balance sheet as current liability.

 

Revenue recognition

 

In accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”, the Company recognizes revenue from sales of goods when the following four revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed or determinable; and (4) collectability is reasonably assured.

 

Revenue from supplies of healthy food products is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. Based on limited operating history, management estimates that there were no sales return for the three months September 30, 2018.

 

Cost of revenue

 

Cost of revenue includes the purchase cost of manufactured goods for sale to customers. It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

 

Selling, general, administrative and operating expenses

 

Selling, general, administrative and operating expenses are primarily comprised of travelling and accommodation fees such as petrol, toll and parking.

 

Income taxes

 

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

 

F-8
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

Net income/(loss) per share

 

The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Foreign currencies translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income.

 

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”). In addition, the Company’s subsidiaries in Hong Kong maintain its books and record in its local currency, Hong Kong Dollars (“HKD$”) and Malaysian Ringgit (“MYR”) is the functional currency as being the primary currency of the economic environment in which the entity operates.

 

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity.

 

Translation of amounts from MYR into US$1 and HKD$ into US$1 have been made at the following exchange rates for the respective periods:

 

   As of and for the
six months ended December 31
 
   2018   2017 
Period-end MYR : US$1 exchange rate   4.14    4.06 
Period-average MYR : US$1 exchange rate   4.13    4.21 
Period-end HKD$ : US$1 exchange rate   7.83    7.81 
Period-average HKD$ : US$1 exchange rate   7.84    7.81 

 

F-9
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

Fair value of financial instruments:

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, deposits and prepayment, amount due to a director, and accounts payable and approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Recent accounting pronouncements

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact of the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting.

 

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. The Company is evaluating this ASU and has not determined the effect of this standard on its ongoing financial reporting.

 

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment was effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU No. 2017-01 did not have a material impact on the Company’s financial position, results of operations and liquidity.

 

In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.

 

In February 2018, the FASB has issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information in financial statement. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has analyzed the consequences of such adoption and has not determined the effect of this standard on its ongoing financial reporting.

 

In August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits, with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

F-10
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

3. COMMON STOCK

 

As of December 31, 2018 and June 30, 2018, there are 376,275,500 shares with par value of $0.0001 each of common stock issued and outstanding. There was no common stock issued and outstanding from initial public offering in the period as of December 31, 2018.

 

There were no stock options, warrants or other potentially dilutive securities outstanding as of December 31, 2018.

 

F-11
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

4. INVESTMENT IN INVESTEE COMPANY

 

The Company invested in Unreserved Sdn Bhd with the investment amount of $863,592 (MYR3,500,000), approximated 20% of equity interest of Unreserved Sdn Bhd and is accounted for under the equity method of accounting. The investment is stated at cost plus profit share in the investee company as at December 31, 2018. Unreserved Sdn Bhd is incorporated in Malaysia with 2,500,000 ordinary shares authorized, issued and outstanding. Mr Lim Hun Soon @ David Lim, Ms Aniza Helina Akmi Karim, and Mr How Kok Choong are the directors of Unreserved Sdn Bhd. Mr How Kok Choong is the common director of Unreserved Sdn Bhd and the Company.

 

   As of
December 31, 2018
   As of
June 30, 2018
 
Cost of investment  $832,335   $862,490 
Less: share of result of investee company   (98,140)   (30,155)
Investment in investee company  $734,195   $832,335 

 

5. INVESTMENT IN MARKETABLE SECURITIES

 

At May 17, 2018, the Company had an investment in Greenpro Capital Corp. of $500,000. The Company purchased the shares of Greenpro Capital Corp. at a price of $6 per share.

 

At October 16, 2018, the Company had an investment in Greenpro Capital Corp. of $1,000. The Company purchased the shares of Greenpro Capital Corp. at a price of $0.03 per share.

 

   As of
December 31, 2018
   As of
June 30, 2018
 
Cost of investment  $501,000   $500,000 
Investment in marketable securities  $501,000   $500,000 

 

6. CASH AND CASH EQUIVALENTS

 

As at December 31, 2018, the Company recorded $3,452,917 of cash and cash equivalents which consists of $990,323 of cash on hand and $2,462,594 of time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of six months or less as of the purchase date of such investments. The effective interest rate for the time deposits is 2.95% per annum.

 

7. PREPAYMENTS AND DEPOSITS

 

Prepayments and deposits consisted of the following at December 31, 2018 and June 30, 2018:

 

   As of
December 31, 2018
   As of
June 30, 2018
 
Prepaid expenses  $2,702   $11,018 
Deposits to supplier   507,367    253,923 
Total Prepayment and Deposits  $510,069   $264,941 

 

F-12
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

8. OTHER PAYABLES AND ACCRUED LIABILITIES

 

Other payables and accrued liabilities consisted of the following at December 31, 2018 and June 30, 2018:

 

   As of
December 31, 2018
   As of
June 30, 2018
 
Accrued audit fees  $7,000   $19,000 
Accrued professional fees   884    749 
Total payables and accrued liabilities  $7,884   $19,749 

 

9. DEPOSIT RECEIVED

 

Deposit received consisted of the following at December 31, 2018 and June 30, 2018:

 

   As of
December 31, 2018
   As of
June 30, 2018
 
Deposit received from customer  $217,743   $- 
Total deposit received  $217,743   $- 

 

10. RELATED PARTY TRANSACTIONS

 

   Six Months
Ended
December 31, 2018
   Six Months
Ended
December 31, 2017
 
Revenue:          
- Related Party A  $685,288   $489,499 
           
Professional Fee:          
- Related Party B  $4,500   $210,000 
           
Trademark Application Fee:          
- Related Party B  $-   $512 

 

The director of related party A is the CEO and the Director of the Company.

 

Related party B is a 4.7% shareholder of the Company.

 

11. AMOUNT DUE TO A DIRECTOR

 

As of December 31, 2018 and June 30, 2018, a director of the Company advanced $3,921 to the Company, which is unsecured, interest-free with no fixed repayment term, for working capital purpose. Imputed interest is considered insignificant.

 

F-13
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

12. INCOME TAXES

 

For the six months ended December 31, 2018 and 2017, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

 

   Six Months Ended December 31 
   2018   2017 
         
Tax jurisdictions from:          
- Local  $(33,977)  $(214,918)
- Foreign, representing          
Labuan, Malaysia   (45,576)   (130)
Hong Kong   (55,928)   43,556 
           
Loss before income tax  $(135,481)  $(171,492)

 

The provision for income taxes consisted of the following:

 

   Six Months Ended December 31 
   2018   2017 
Current:          
- Local  $-   $- 
- Foreign   6,965    7,186 
           
Deferred:          
- Local   -    - 
- Foreign   -    - 
           
Income tax expense  $6,965   $7,186 

 

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Labuan and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows:

 

United States of America

 

Agape ATP Corporation is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of December 31, 2018, the operations in the United States of America incurred $395,095 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carry forwards begin to expire in 2038, if unutilized. The tax valuation allowance for December 31, 2018 and June 30, 2018 are $83,184 and $76,045 respectively.

 

Labuan

 

Under the current laws of the Labuan, Agape ATP Corporation is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit.

 

Hong Kong

 

Agape ATP International Holding (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2018 and June 30, 2018:

 

   As of
December 31, 2018
   As of
June 30, 2018
 
   (unaudited)   (audited) 
Deferred tax assets:          
Net operating loss carry forwards          
- United States of America  $82,970   $76,045 
- Hong Kong   -    - 
Less: valuation allowance  $(82,970)  $(76,045)
Deferred tax assets  $-   $- 

 

F-14
 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2018

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(UNAUDITED)

 

13. CONCENTRATIONS OF RISK

 

The Company is exposed to the following concentrations of risk:

 

(a) Major customers

 

For three months ended December 31, 2018 and 2017, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at period-end are presented as follows:

 

   For three months ended December 31 
   2018   2017   2018   2017   2018   2017 
   Revenues   Percentage of
revenues
   Accounts receivable,
trade
 
                         
Customer A  $269,921   $       -    100%   -%  $          -   $489,499 
   $269,921   $-    100%   -%  $-   $489,499 

 

For six months ended December 31, 2018 and 2017, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at period-end are presented as follows:

 

   For six months ended December 31 
   2018   2017   2018   2017   2018   2017 
   Revenues   Percentage of
revenues
   Accounts receivable,
trade
 
                         
Customer A  $685,288   $489,499    100%   100%  $         -   $489,499 
   $685,288   $489,499    100%   100%  $-   $489,499 

 

(b) Major vendors

 

For three months ended December 31, 2018 and 2017, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at period-end are presented as follows:

 

   For three months ended December 31 
   2018   2017   2018   2017   2018   2017 
   Purchases   Percentage of
purchases
   Accounts payable,
trade
 
                         
Vendor A  $240,932   $          -    100%            -%  $-   $131,161 
   $240,932   $-    100%   -%  $-   $131,161 

 

For six months ended December 31, 2018 and 2017, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at period-end are presented as follows:

 

   For six months ended December 31 
   2018   2017   2018   2017   2018   2017 
   Purchases   Percentage of
purchases
   Accounts payable,
trade
 
                         
Vendor A  $555,192   $443,670    89%   100%  $         -   $131,161 
Vendor B   64,163    -    11%   -    -    - 
   $619,355   $443,670    100%   100%  $-   $131,161 

 

14. SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through February 14, 2019, the date the Company issued unaudited consolidated financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. During this period, there was no subsequent event that required recognition or disclosure.

 

F-15
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The information contained in this quarter report on Form 10-Q is intended to update the information contained in our Form 10-K, dated September 27, 2018, for the year ended June 30, 2018 and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our consolidated financial statements and the notes to the consolidated financial statements included elsewhere in this Form 10-Q.

 

The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We strongly encourage investors to carefully read the factors described in our Form S-1 Amendment No.2, dated October 26, 2017, in the section entitled “Risk Factors” for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this transition report on Form 10-Q. The following should also be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto that appear elsewhere in this report.

 

Company Overview

 

Agape ATP Corporation., a Nevada corporation (“the Company”) was incorporated under the laws of the State of Nevada on June 1, 2016. Agape ATP Corporation is a company that operates through its wholly owned subsidiary, Agape ATP Corporation, a company incorporated in Labuan, Malaysia. Our wholly owned subsidiary, Agape ATP Corporation owns 100% of Agape ATP International Holding Limited, the operating Hong Kong company.

 

Agape ATP Corporation is a company which plans to develop and provide health solution advisory services to our future clients. We will, at least initially, primarily focus our efforts on attracting customers in Malaysia. Our advisory services will center around the “ATP Zeta Health Program”, which is a health program designed to assist in the elimination of various diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition, and advice from skilled dieticians.

 

At its core, the ATP Zeta Super Health Program is focused upon biological energy, Adenosine Triphosphate (ATP), at the cellular level. The stimulation of ATP production at the cellular level can increase the metabolism and service to promote and maintain normal and healthy functioning of the body’s systems. Our program emphasizes nutrient absorption through the membrane ion channel to provide complete and balanced nutrients to improve cell health. Thus, ATP Zeta Super Health Program provides ionized and high zeta potential (high bioavailability) nutrients to enhance the absorption at the cellular level.

 

Results of Operation

 

For the three months ended December 31, 2018 and 2017

 

Revenues

 

For three months ended December 31, 2018, the Company has generated revenue of $269,921. The revenue mainly derived from the sale of healthy food products. For three month ended December 31, 2017, the Company has generated no revenue.

 

Net Loss

 

Our net loss for three months ended December 31, 2018 were $6,580, while for three months ended December 31, 2017 were $123,978. We attribute the net loss in 2018 due to loss of investee company while in 2017 due to zero revenue.

 

For the six months ended December 31, 2018 and 2017

 

Revenues

 

For six months ended December 31, 2018 and 2017, the Company has generated revenue of $685,288 and $489,499 respectively. The revenue mainly derived from the sale of healthy food products.

 

Our gross profits for the six months ended December 31, 2018 were $65,933, which is more than $45,829 for six months ended December 31, 2017. We attribute the increase in revenue and gross profit to increase of market exposure and the introduction of other new products in 2018. We believe that in order to retain and maintain more customers in the future we must increase our marketing efforts and or develop new products.

 

Net Loss

 

Our net loss for six months ended December 31, 2018 were $142,446, while for six months ended December 31, 2017 were $178,678. We attribute the net loss decreased due to lower selling, administrative and general expenses and the increasing revenue which resulted in higher gross profit.

 

3
 

 

Liquidity and Capital Resources

 

As at December 31, 2018, we had working capital surplus of $3,721,139 consisting of cash and cash equivalents of $3,452,917 as compared to working capital surplus of $3,766,446 and cash and cash equivalents of $3,531,255 as of June 30, 2018.

 

Cash Provided by/Used in Operating Activities

 

For the six months ended December 31, 2018, net cash used in operating activities was $77,337. The operating cash flow performance primarily reflects the deposits received from customer of the Company.

 

For the six months ended December 31, 2017, net cash used in operating activities was $892,833. The operating cash flow performance primarily reflects the prepayment and deposits as well as increasing account receivables of the Company.

 

Cash Provided by/Used in Financing Activities

 

For the six months ended December 31, 2018, net cash used in financing activities was $1,000 for the additional of investment in financial asset.

 

For the six months ended December 31, 2017, net cash provided by financing activities was $434,500 which is the proceed from the issuance of stock.

 

Cash Provided by/Used in Investing Activities

 

For the six months ended December 31, 2018 and 2017, there is no net cash provided by or used in investing activities.

 

Credit Facilities

 

We do not have any credit facilities or other access to bank credit.

 

Off-balance Sheet Arrangements

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of December 31, 2018.

 

Recent Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

4
 

 

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

 

ITEM 4 CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures:

 

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2018. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2018, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of December 31, 2018, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

 

Changes in Internal Control over Financial Reporting:

 

There were no changes in our internal control over financial reporting during the quarter ended December 31, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

5
 

 

PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest averse to us.

 

Item 1A. Risk Factors.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

 

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

 

6
 

 

ITEM 6. Exhibits

 

Exhibit No.   Description
     
31.1   Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer*
     
32.1   Section 1350 Certification of principal executive officer *
     
101.INS   XBRL Instance Document*
     
101.SCH   XBRL Schema Document*
     
101.CAL   XBRL Calculation Linkbase Document*
     
101.DEF   XBRL Definition Linkbase Document*
     
101.LAB   XBRL Label Linkbase Document*
     
101.PRE   XBRL Presentation Linkbase Document*

 

* Filed herewith.

 

7
 

 

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, thereunto duly authorized.

 

  AGAPE ATP CORPORATION
  (Name of Registrant)
     
Date: February 15, 2019    
  By: /s/ How Kok Choong
  Title:

Chief Executive Officer,

President, Director, Secretary and Treasurer

    (Principal Executive Officer)

 

8
 

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, HOW KOK CHOONG, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Agape ATP Corporation (the “Company”) for the quarter ended December 31, 2018;

 

2. Based on my knowledge, this quarterly 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. The registrant’s other certifying officer and I are 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, including its consolidated subsidiaries, 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 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.

 

Date: February 15, 2019 By: /s/ How Kok Choong
    HOW KOK CHOONG
   

Chief Executive Officer,

President, Director, Secretary, Treasurer

    (Principal Executive Officer)

 

 
 

EX-32.1 3 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

 

In connection with the Quarterly Report of Agape ATP Corporation (the “Company”) on Form 10-Q for the quarter ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), The undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Date: February 15, 2019 By: /s/ How Kok Choong
    HOW KOK CHOONG
    Chief Executive Officer, President, Director
    (Principal Executive Officer)

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 
 

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Document and Entity Information - shares
6 Months Ended
Dec. 31, 2018
Feb. 14, 2019
Document And Entity Information    
Entity Registrant Name Agape ATP Corp  
Entity Central Index Key 0001713210  
Document Type 10-Q  
Document Period End Date Dec. 31, 2018  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Entity Filer Category Non-accelerated Filer  
Entity Small Business Flag true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Common Stock, Shares Outstanding   376,275,500
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2019  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
Dec. 31, 2018
Jun. 30, 2018
NON-CURRENT ASSETS    
Investment in investee company $ 734,195 $ 832,335
Investment in marketable securities 501,000 500,000
Total Non-Current Assets 1,235,195 1,332,335
CURRENT ASSETS    
Cash and cash equivalents 3,452,917 3,531,255
Prepayments and deposits 510,069 264,941
Total Current Assets 3,962,986 3,796,196
TOTAL ASSETS 5,198,181 5,128,531
CURRENT LIABILITIES    
Other payables and accrued liabilities 7,884 19,749
Deposit received 217,743
Income tax provision 12,299 5,334
Amount due to a director 3,921 3,922
Amount due to a related party 745
Total Current Liabilities 241,847 29,750
TOTAL LIABILITIES 241,847 29,750
STOCKHOLDERS' EQUITY    
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; None issued and outstanding
Common Stock, par value $0.0001; 1,000,000,000 shares authorized, 376,275,500 and 376,275,500 issued and outstanding as of December 31, 2018 and June 30, 2018 37,628 37,628
Additional paid in capital 5,293,082 5,293,082
Accumulated other comprehensive losses (1,294) (1,293)
Accumulated losses (373,082) (230,636)
TOTAL STOCKHOLDERS' EQUITY 4,956,334 5,098,781
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,198,181 $ 5,128,531
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2018
Jun. 30, 2018
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 200,000,000 200,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 376,275,500 376,275,500
Common stock, shares outstanding 376,275,500 376,275,500
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Operations and Comprehensive Losses (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]        
REVENUE $ 269,921 $ 685,288 $ 489,499
COST OF REVENUE (240,932) (619,355) (443,670)
GROSS PROFIT 28,989 65,933 45,829
REALISED GAIN ON FOREIGN EXCHANGE 1,794 3,391
UNREALISED LOSS ON FOREIGN EXCHANGE (1,455) (81,484)
OTHER INCOME 37,863 441 37,887 445
SELLING, GENERAL AND ADMINISTRATIVE AND OPERATING EXPENSES (24,479) (124,419) (63,068) (217,766)
PROFIT/(LOSS) BEFORE INCOME TAX 42,712 (123,978) (37,341) (171,492)
SHARE OF RESULT OF INVESTEE COMPANY (46,031) (98,140)
LOSS BEFORE INCOME TAX INCLUDING SHARE OF RESULT OF INVESTEE COMPANY (3,319) (123,978) (135,481) (171,492)
TAXATION (3,261) (6,965) (7,186)
NET LOSS (6,580) (123,978) (142,446) (178,678)
Other comprehensive income:        
- Foreign currency translation adjustment (1) 4,129 (1) 3,744
TOTAL COMPREHENSIVE LOSS $ (6,581) $ (119,849) $ (142,447) $ (174,934)
Net loss per share- Basic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of common shares outstanding - Basic and diluted 376,275,500 371,476,826 376,275,500 371,413,413
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 6 months ended Dec. 31, 2018 - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Loss
Accumulated Losses [Member]
Total
Balance at Jun. 30, 2018 $ 37,628 $ 5,293,082 $ (1,293) $ (230,636) $ 5,098,781
Balance, shares at Jun. 30, 2018 376,275,600        
Foreign currency translation adjustment (1) (1)
Net loss (142,446) (142,446)
Balance at Dec. 31, 2018 $ 37,628 $ 5,293,082 $ (1,294) $ (373,082) $ 4,956,334
Balance, shares at Dec. 31, 2018 376,275,600        
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (142,446) $ (178,678)
Adjustments to reconcile net loss to net cash used in operating activities:    
Share of result of investee company 98,140
Changes in operating assets and liabilities:    
Accounts receivables (489,838)
Prepayments and deposits (245,128) (360,506)
Accounts payables 131,161
Other payables and accrued liabilities (11,865) (6,000)
Deposit received 217,743
Income tax provision 6,965 7,186
Amount due to related party (745)
Amount due to director 3,841
Net cash used in operating activities (77,337) (892,833)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Investment in financial assets (1,000)
Proceeds from issuance of stock 434,500
Net cash (used in)/ provided by financing activities (1,000) 434,500
Effect of exchange rate changes on cash and cash equivalents (1) 3,744
Net change in cash and cash equivalents (78,338) (454,589)
Cash and cash equivalents, beginning of period 3,531,255 2,312,748
CASH AND CASH EQUIVALENTS, END OF PERIOD 3,452,917 1,858,159
SUPPLEMENTAL CASH FLOWS INFORMATION    
Income taxes paid
Interest paid
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Description of Business and Organization
6 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Description of Business and Organization

1. DESCRIPTION OF BUSINESS AND ORGANIZATION

 

Agape ATP Corporation was incorporated on June 1, 2016 under the laws of the state of Nevada.

 

Agape ATP Corporation operates through its wholly owned subsidiary, Agape ATP Corporation, a Company organized in Labuan, Malaysia.

 

Agape ATP Corporation, incorporated in Labuan, Malaysia, is an investment holding company with 100% equity interest in Agape ATP International Holding Limited, a company incorporated in Hong Kong.

 

The Company and its subsidiaries are engaged in providing services in the Health and Wellness Industry. The principal activity of the Company and its subsidiaries is to supply high-quality health and wellness products, including supplement to assist in cell metabolism, detoxification, blood circulation, anti-aging and products designed to improve the overall health system in our body.

 

The Company, through its subsidiaries, mainly supplies high quality beauty products. Details of the Company’s subsidiaries and investee company:

 

    Subsidiary company name   Place and date
of
incorporation
  Particulars of
issued capital
  Principal
activities
  Proportional of
ownership
interest and
voting power
held
 
1.   Agape ATP Corporation   Labuan,
March 6, 2017
  1 share of ordinary share of US$1 each   Investment holding     100 %
                         
2.   Agape ATP International Holding Limited   Hong Kong,
June 1, 2017
  1 share of ordinary share of HK$1 each   Health and wellness products and health solution advisory services     100 %

 

    Investee company name   Place and date
of
incorporation
  Particulars of
issued capital
  Principal
activities
  Proportional of
ownership
interest and
voting power
held
 
1.   Unreserved Sdn Bhd   Malaysia,
August 25, 2008
  500,000 shares of ordinary share of RM7 each   Magazines publication and advertising     20 %
                         

 

  (1) Based on the contractual arrangements between the Company and other investors, the Company has the power to direct the relevant activities of these entities unilaterally, and hence the Company has control over these entities.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies
6 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The consolidated financial statements for Agape ATP Corporation and its subsidiaries for the six months ended December 31, 2018 and 2017 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Agape ATP Corporation and its wholly owned subsidiaries, Agape ATP Corporation and Agape ATP International Holding Limited. Intercompany accounts and transactions have been eliminated in consolidation. The Company has adopted June 30 as its fiscal year end.

 

Basis of consolidation

 

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

 

Use of estimates

 

Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

 

Cash and cash equivalents

 

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

 

Accounts receivable

 

Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

Investment in investee company

 

The Company evaluates investment in investee company as it holds an equity interest based on the amount of control it exercises over the operations of the investee, exposure to losses in excess of its investment, the ability to significantly influence the investee and whether the Company is the primary beneficiary of the investee.

 

Investment in marketable securities

 

Marketable securities included in marketable securities (current) and other investments (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities included in marketable securities (current) are stated at the lower of cost or market in the aggregate and investments other than marketable equity securities in other investments (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale.

 

Deposit received

 

Deposit received refers to payment received in advance for products which have not yet been delivered. Deposits received is classified on the consolidated balance sheet as current liability.

 

Revenue recognition

 

In accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”, the Company recognizes revenue from sales of goods when the following four revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed or determinable; and (4) collectability is reasonably assured.

 

Revenue from supplies of healthy food products is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. Based on limited operating history, management estimates that there were no sales return for the three months September 30, 2018.

 

Cost of revenue

 

Cost of revenue includes the purchase cost of manufactured goods for sale to customers. It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

 

Selling, general, administrative and operating expenses

 

Selling, general, administrative and operating expenses are primarily comprised of travelling and accommodation fees such as petrol, toll and parking.

 

Income taxes

 

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

 

Net income/(loss) per share

 

The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Foreign currencies translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income.

 

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”). In addition, the Company’s subsidiaries in Hong Kong maintain its books and record in its local currency, Hong Kong Dollars (“HKD$”) and Malaysian Ringgit (“MYR”) is the functional currency as being the primary currency of the economic environment in which the entity operates.

 

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity.

 

Translation of amounts from MYR into US$1 and HKD$ into US$1 have been made at the following exchange rates for the respective periods:

 

    As of and for the
six months ended December 31
 
    2018     2017  
Period-end MYR : US$1 exchange rate     4.14       4.06  
Period-average MYR : US$1 exchange rate     4.13       4.21  
Period-end HKD$ : US$1 exchange rate     7.83       7.81  
Period-average HKD$ : US$1 exchange rate     7.84       7.81  

 

Fair value of financial instruments:

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, deposits and prepayment, amount due to a director, and accounts payable and approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Recent accounting pronouncements

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact of the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting.

 

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. The Company is evaluating this ASU and has not determined the effect of this standard on its ongoing financial reporting.

 

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment was effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU No. 2017-01 did not have a material impact on the Company’s financial position, results of operations and liquidity.

 

In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.

 

In February 2018, the FASB has issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information in financial statement. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has analyzed the consequences of such adoption and has not determined the effect of this standard on its ongoing financial reporting.

 

In August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits, with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Common Stock
6 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Common Stock

3. COMMON STOCK

 

As of December 31, 2018 and June 30, 2018, there are 376,275,500 shares with par value of $0.0001 each of common stock issued and outstanding. There was no common stock issued and outstanding from initial public offering in the period as of December 31, 2018.

 

There were no stock options, warrants or other potentially dilutive securities outstanding as of December 31, 2018.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Investee Company
6 Months Ended
Dec. 31, 2018
Investments Schedule [Abstract]  
Investment in Investee Company

4. INVESTMENT IN INVESTEE COMPANY

 

The Company invested in Unreserved Sdn Bhd with the investment amount of $863,592 (MYR3,500,000), approximated 20% of equity interest of Unreserved Sdn Bhd and is accounted for under the equity method of accounting. The investment is stated at cost plus profit share in the investee company as at December 31, 2018. Unreserved Sdn Bhd is incorporated in Malaysia with 2,500,000 ordinary shares authorized, issued and outstanding. Mr Lim Hun Soon @ David Lim, Ms Aniza Helina Akmi Karim, and Mr How Kok Choong are the directors of Unreserved Sdn Bhd. Mr How Kok Choong is the common director of Unreserved Sdn Bhd and the Company.

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Cost of investment   $ 832,335     $ 862,490  
Less: share of result of investee company     (98,140 )     (30,155 )
Investment in investee company   $ 734,195     $ 832,335

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Marketable Securities
6 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment in Marketable Securities

5. INVESTMENT IN MARKETABLE SECURITIES

 

At May 17, 2018, the Company had an investment in Greenpro Capital Corp. of $500,000. The Company purchased the shares of Greenpro Capital Corp. at a price of $6 per share.

 

At October 16, 2018, the Company had an investment in Greenpro Capital Corp. of $1,000. The Company purchased the shares of Greenpro Capital Corp. at a price of $0.03 per share.

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Cost of investment   $ 501,000     $ 500,000  
Investment in marketable securities   $ 501,000     $ 500,000

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Cash and Cash Equivalents
6 Months Ended
Dec. 31, 2018
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents

6. CASH AND CASH EQUIVALENTS

 

As at December 31, 2018, the Company recorded $3,452,917 of cash and cash equivalents which consists of $990,323 of cash on hand and $2,462,594 of time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of six months or less as of the purchase date of such investments. The effective interest rate for the time deposits is 2.95% per annum.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Prepayments and Deposits
6 Months Ended
Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepayments and Deposits

7. PREPAYMENTS AND DEPOSITS

 

Prepayments and deposits consisted of the following at December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Prepaid expenses   $ 2,702     $ 11,018  
Deposits to supplier     507,367       253,923  
Total Prepayment and Deposits   $ 510,069     $ 264,941

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Payables and Accrued Liabilities
6 Months Ended
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]  
Other Payables and Accrued Liabilities

8. OTHER PAYABLES AND ACCRUED LIABILITIES

 

Other payables and accrued liabilities consisted of the following at December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Accrued audit fees   $ 7,000     $ 19,000  
Accrued professional fees     884       749  
Total payables and accrued liabilities   $ 7,884     $ 19,749

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Deposit Received
6 Months Ended
Dec. 31, 2018
Banking and Thrift [Abstract]  
Deposit Received

9. DEPOSIT RECEIVED

 

Deposit received consisted of the following at December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Deposit received from customer   $ 217,743     $ -  
Total deposit received   $ 217,743     $ -

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions
6 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

10. RELATED PARTY TRANSACTIONS

 

    Six Months
Ended
December 31, 2018
    Six Months
Ended
December 31, 2017
 
Revenue:                
- Related Party A   $ 685,288     $ 489,499  
                 
Professional Fee:                
- Related Party B   $ 4,500     $ 210,000  
                 
Trademark Application Fee:                
- Related Party B   $ -     $ 512  

 

The director of related party A is the CEO and the Director of the Company.

 

Related party B is a 4.7% shareholder of the Company.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Amount Due to a Director
6 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Amount Due to a Director

11. AMOUNT DUE TO A DIRECTOR

 

As of December 31, 2018 and June 30, 2018, a director of the Company advanced $3,921 to the Company, which is unsecured, interest-free with no fixed repayment term, for working capital purpose. Imputed interest is considered insignificant.

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
6 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

12. INCOME TAXES

 

For the six months ended December 31, 2018 and 2017, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

 

    Six Months Ended December 31  
    2018     2017  
             
Tax jurisdictions from:                
- Local   $ (33,977 )   $ (214,918 )
- Foreign, representing                
Labuan, Malaysia     (45,576 )     (130 )
Hong Kong     (55,928 )     43,556  
                 
Loss before income tax   $ (135,481 )   $ (171,492 )

 

The provision for income taxes consisted of the following:

 

    Six Months Ended December 31  
    2018     2017  
Current:                
- Local   $ -     $ -  
- Foreign     6,965       7,186  
                 
Deferred:                
- Local     -       -  
- Foreign     -       -  
                 
Income tax expense   $ 6,965     $ 7,186  

 

The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. The Company and its subsidiary that operate in various countries: United States, Labuan and Hong Kong that are subject to taxes in the jurisdictions in which they operate, as follows:

 

United States of America

 

Agape ATP Corporation is registered in the State of Nevada and is subject to the tax laws of the United States of America. As of December 31, 2018, the operations in the United States of America incurred $395,095 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carry forwards begin to expire in 2038, if unutilized. The tax valuation allowance for December 31, 2018 and June 30, 2018 are $83,184 and $76,045 respectively.

 

Labuan

 

Under the current laws of the Labuan, Agape ATP Corporation is governed under the Labuan Business Activity Act, 1990. The tax charge for such company is based on 3% of net audited profit.

 

Hong Kong

 

Agape ATP International Holding (HK) Limited is subject to Hong Kong Profits Tax, which is charged at the statutory income rate of 16.5% on its assessable income. The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
    (unaudited)     (audited)  
Deferred tax assets:                
Net operating loss carry forwards                
- United States of America   $ 82,970     $ 76,045  
- Hong Kong     -       -  
Less: valuation allowance   $ (82,970 )   $ (76,045 )
Deferred tax assets   $ -     $ -

XML 28 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Concentrations of Risk
6 Months Ended
Dec. 31, 2018
Risks and Uncertainties [Abstract]  
Concentrations of Risk

13. CONCENTRATIONS OF RISK

 

The Company is exposed to the following concentrations of risk:

 

(a) Major customers

 

For three months ended December 31, 2018 and 2017, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at period-end are presented as follows:

 

    For three months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Revenues     Percentage of
revenues
    Accounts receivable,
trade
 
                                     
Customer A   $ 269,921     $        -       100 %     - %   $           -     $ 489,499  
    $ 269,921     $ -       100 %     - %   $ -     $ 489,499  

 

For six months ended December 31, 2018 and 2017, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at period-end are presented as follows:

 

    For six months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Revenues     Percentage of
revenues
    Accounts receivable,
trade
 
                                     
Customer A   $ 685,288     $ 489,499       100 %     100 %   $          -     $ 489,499  
    $ 685,288     $ 489,499       100 %     100 %   $ -     $ 489,499  

 

(b) Major vendors

 

For three months ended December 31, 2018 and 2017, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at period-end are presented as follows:

 

    For three months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Purchases     Percentage of
purchases
    Accounts payable,
trade
 
                                     
Vendor A   $ 240,932     $           -       100 %              - %   $ -     $ 131,161  
    $ 240,932     $ -       100 %     - %   $ -     $ 131,161  

 

For six months ended December 31, 2018 and 2017, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at period-end are presented as follows:

 

    For six months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Purchases     Percentage of
purchases
    Accounts payable,
trade
 
                                     
Vendor A   $ 555,192     $ 443,670       89 %     100 %   $          -     $ 131,161  
Vendor B     64,163       -       11 %     -       -       -  
    $ 619,355     $ 443,670       100 %     100 %   $ -     $ 131,161

XML 29 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Events
6 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

14. SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through February 14, 2019, the date the Company issued unaudited consolidated financial statements in accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. During this period, there was no subsequent event that required recognition or disclosure.

XML 30 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Basis of Presentation

Basis of presentation

 

The consolidated financial statements for Agape ATP Corporation and its subsidiaries for the six months ended December 31, 2018 and 2017 are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of Agape ATP Corporation and its wholly owned subsidiaries, Agape ATP Corporation and Agape ATP International Holding Limited. Intercompany accounts and transactions have been eliminated in consolidation. The Company has adopted June 30 as its fiscal year end.

Basis of Consolidation

Basis of consolidation

 

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

Use of Estimates

Use of estimates

 

Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheets, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents

 

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

Accounts receivable

Accounts receivable

 

Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Investment in Investee Company

Investment in investee company

 

The Company evaluates investment in investee company as it holds an equity interest based on the amount of control it exercises over the operations of the investee, exposure to losses in excess of its investment, the ability to significantly influence the investee and whether the Company is the primary beneficiary of the investee.

Investment in Marketable Securities

Investment in marketable securities

 

Marketable securities included in marketable securities (current) and other investments (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities included in marketable securities (current) are stated at the lower of cost or market in the aggregate and investments other than marketable equity securities in other investments (non-current) are stated at cost less any significant decline in fair value assessed to be other than temporary. Realized gains and losses on the sale of securities are based on the average cost of all the units of a particular security held at the time of sale.

Deposit Received

Deposit received

 

Deposit received refers to payment received in advance for products which have not yet been delivered. Deposits received is classified on the consolidated balance sheet as current liability.

Revenue Recognition

Revenue recognition

 

In accordance with Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition”, the Company recognizes revenue from sales of goods when the following four revenue criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) selling price is fixed or determinable; and (4) collectability is reasonably assured.

 

Revenue from supplies of healthy food products is recognized when title and risk of loss are transferred and there are no continuing obligations to the customer. Title and the risks and rewards of ownership transfer to and accepted by the customer when the products are collected by the customer at the Company’s office. Revenue is recorded net of sales discounts, returns, allowances, and other adjustments that are based upon management’s best estimates and historical experience and are provided for in the same period as the related revenues are recorded. Based on limited operating history, management estimates that there were no sales return for the three months September 30, 2018.

Cost of Revenue

Cost of revenue

 

Cost of revenue includes the purchase cost of manufactured goods for sale to customers. It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

Selling, General, Administrative and Operating Expenses

Selling, general, administrative and operating expenses

 

Selling, general, administrative and operating expenses are primarily comprised of travelling and accommodation fees such as petrol, toll and parking.

Income Taxes

Income taxes

 

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

Net Income/(Loss) Per Share

Net income/(loss) per share

 

The Company calculates net income/(loss) per share in accordance with ASC Topic 260, “Earnings per Share.” Basic income/(loss) per share is computed by dividing the net income/(loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income/(loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

Related Parties

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Foreign Currencies Translation

Foreign currencies translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income.

 

The reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. The Company’s subsidiary in Labuan maintains its books and record in United States Dollars (“US$”). In addition, the Company’s subsidiaries in Hong Kong maintain its books and record in its local currency, Hong Kong Dollars (“HKD$”) and Malaysian Ringgit (“MYR”) is the functional currency as being the primary currency of the economic environment in which the entity operates.

 

In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity.

 

Translation of amounts from MYR into US$1 and HKD$ into US$1 have been made at the following exchange rates for the respective periods:

 

    As of and for the
six months ended December 31
 
    2018     2017  
Period-end MYR : US$1 exchange rate     4.14       4.06  
Period-average MYR : US$1 exchange rate     4.13       4.21  
Period-end HKD$ : US$1 exchange rate     7.83       7.81  
Period-average HKD$ : US$1 exchange rate     7.84       7.81

Fair Value of Financial Instruments

Fair value of financial instruments:

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, account receivables, deposits and prepayment, amount due to a director, and accounts payable and approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Recent Accounting Pronouncements

Recent accounting pronouncements

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. In August 2015, the FASB issued an Accounting Standards Update to defer by one year the effective dates of its new revenue recognition standard until annual reporting periods beginning after December 15, 2017 (2018 for calendar-year public entities) and interim periods therein. Management is currently assessing the impact of the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting.

 

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. The Company is evaluating this ASU and has not determined the effect of this standard on its ongoing financial reporting.

 

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment was effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU No. 2017-01 did not have a material impact on the Company’s financial position, results of operations and liquidity.

 

In September 2017, the FASB has issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. Both of the below entities may still adopt using the public company adoption guidance in the related ASUs, as amended. The effective date is the same as the effective date and transition requirements for the amendments for ASU 2014-09 and ASU 2016-02.

 

In February 2018, the FASB has issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information in financial statement. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has analyzed the consequences of such adoption and has not determined the effect of this standard on its ongoing financial reporting.

 

In August 2018, the FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements of Fair Value Measurement. This amendment modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits, with the primary purpose to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by US GAAP. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

XML 31 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Description of Business and Organization (Tables)
6 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of Subsidiaries and Associates

The Company, through its subsidiaries, mainly supplies high quality beauty products. Details of the Company’s subsidiaries and investee company:

 

    Subsidiary company name   Place and date
of
incorporation
  Particulars of
issued capital
  Principal
activities
  Proportional of
ownership
interest and
voting power
held
 
1.   Agape ATP Corporation   Labuan,
March 6, 2017
  1 share of ordinary share of US$1 each   Investment holding     100 %
                         
2.   Agape ATP International Holding Limited   Hong Kong,
June 1, 2017
  1 share of ordinary share of HK$1 each   Health and wellness products and health solution advisory services     100 %

 

    Investee company name   Place and date
of
incorporation
  Particulars of
issued capital
  Principal
activities
  Proportional of
ownership
interest and
voting power
held
 
1.   Unreserved Sdn Bhd   Malaysia,
August 25, 2008
  500,000 shares of ordinary share of RM7 each   Magazines publication and advertising     20 %
                         

 

  (1) Based on the contractual arrangements between the Company and other investors, the Company has the power to direct the relevant activities of these entities unilaterally, and hence the Company has control over these entities.

XML 32 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of Translation Exchange Rates

Translation of amounts from MYR into US$1 and HKD$ into US$1 have been made at the following exchange rates for the respective periods:

 

    As of and for the
six months ended December 31
 
    2018     2017  
Period-end MYR : US$1 exchange rate     4.14       4.06  
Period-average MYR : US$1 exchange rate     4.13       4.21  
Period-end HKD$ : US$1 exchange rate     7.83       7.81  
Period-average HKD$ : US$1 exchange rate     7.84       7.81

XML 33 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Investee Company (Tables)
6 Months Ended
Dec. 31, 2018
Investments Schedule [Abstract]  
Schedule of Investments

    As of
December 31, 2018
    As of
June 30, 2018
 
Cost of investment   $ 832,335     $ 862,490  
Less: share of result of investee company     (98,140 )     (30,155 )
Investment in investee company   $ 734,195     $ 832,335

XML 34 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Marketable Securities (Tables)
6 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investment in Marketable Securities

    As of
December 31, 2018
    As of
June 30, 2018
 
Cost of investment   $ 501,000     $ 500,000  
Investment in marketable securities   $ 501,000     $ 500,000

XML 35 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Prepayments and Deposits (Tables)
6 Months Ended
Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Deposits

Prepayments and deposits consisted of the following at December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Prepaid expenses   $ 2,702     $ 11,018  
Deposits to supplier     507,367       253,923  
Total Prepayment and Deposits   $ 510,069     $ 264,941

XML 36 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Payables and Accrued Liabilities (Tables)
6 Months Ended
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]  
Schedule of Other Payables and Accrued Liabilities

Other payables and accrued liabilities consisted of the following at December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Accrued audit fees   $ 7,000     $ 19,000  
Accrued professional fees     884       749  
Total payables and accrued liabilities   $ 7,884     $ 19,749

XML 37 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Deposit Received (Tables)
6 Months Ended
Dec. 31, 2018
Banking and Thrift [Abstract]  
Schedule of Deposit Received

Deposit received consisted of the following at December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
Deposit received from customer   $ 217,743     $ -  
Total deposit received   $ 217,743     $ -

XML 38 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions (Tables)
6 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions

    Six Months
Ended
December 31, 2018
    Six Months
Ended
December 31, 2017
 
Revenue:                
- Related Party A   $ 685,288     $ 489,499  
                 
Professional Fee:                
- Related Party B   $ 4,500     $ 210,000  
                 
Trademark Application Fee:                
- Related Party B   $ -     $ 512

XML 39 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Tables)
6 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of Components of Income/(Loss) Before Income Tax

For the six months ended December 31, 2018 and 2017, the local (United States) and foreign components of income/(loss) before income taxes were comprised of the following:

 

    Six Months Ended December 31  
    2018     2017  
             
Tax jurisdictions from:                
- Local   $ (33,977 )   $ (214,918 )
- Foreign, representing                
Labuan, Malaysia     (45,576 )     (130 )
Hong Kong     (55,928 )     43,556  
                 
Loss before income tax   $ (135,481 )   $ (171,492 )

Schedule of Provision for Income Tax

The provision for income taxes consisted of the following:

 

    Six Months Ended December 31  
    2018     2017  
Current:                
- Local   $ -     $ -  
- Foreign     6,965       7,186  
                 
Deferred:                
- Local     -       -  
- Foreign     -       -  
                 
Income tax expense   $ 6,965     $ 7,186

Schedule of Deferred Tax Assets

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of December 31, 2018 and June 30, 2018:

 

    As of
December 31, 2018
    As of
June 30, 2018
 
    (unaudited)     (audited)  
Deferred tax assets:                
Net operating loss carry forwards                
- United States of America   $ 82,970     $ 76,045  
- Hong Kong     -       -  
Less: valuation allowance   $ (82,970 )   $ (76,045 )
Deferred tax assets   $ -     $ -

XML 40 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Concentrations of Risk (Tables)
6 Months Ended
Dec. 31, 2018
Risks and Uncertainties [Abstract]  
Schedule of Concentrations of Risks

The Company is exposed to the following concentrations of risk:

 

(a) Major customers

 

For three months ended December 31, 2018 and 2017, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at period-end are presented as follows:

 

    For three months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Revenues     Percentage of
revenues
    Accounts receivable,
trade
 
                                     
Customer A   $ 269,921     $        -       100 %     - %   $           -     $ 489,499  
    $ 269,921     $ -       100 %     - %   $ -     $ 489,499  

 

For six months ended December 31, 2018 and 2017, the customers who accounted for 10% or more of the Company’s sales and its outstanding receivable balance at period-end are presented as follows:

 

    For six months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Revenues     Percentage of
revenues
    Accounts receivable,
trade
 
                                     
Customer A   $ 685,288     $ 489,499       100 %     100 %   $          -     $ 489,499  
    $ 685,288     $ 489,499       100 %     100 %   $ -     $ 489,499  

 

(b) Major vendors

 

For three months ended December 31, 2018 and 2017, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at period-end are presented as follows:

 

    For three months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Purchases     Percentage of
purchases
    Accounts payable,
trade
 
                                     
Vendor A   $ 240,932     $           -       100 %              - %   $ -     $ 131,161  
    $ 240,932     $ -       100 %     - %   $ -     $ 131,161  

 

For six months ended December 31, 2018 and 2017, the vendors who accounted for 10% or more of the Company’s purchases and its outstanding payable balance at period-end are presented as follows:

 

    For six months ended December 31  
    2018     2017     2018     2017     2018     2017  
    Purchases     Percentage of
purchases
    Accounts payable,
trade
 
                                     
Vendor A   $ 555,192     $ 443,670       89 %     100 %   $          -     $ 131,161  
Vendor B     64,163       -       11 %     -       -       -  
    $ 619,355     $ 443,670       100 %     100 %   $ -     $ 131,161

XML 41 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Description of Business and Organization (Details Narrative)
Dec. 31, 2018
Agape ATP International Holding Limited [Member]  
Ownership percentage 100.00%
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
Description of Business and Organization - Schedule of Subsidiaries and Associates (Details)
6 Months Ended
Dec. 31, 2018
Subsidiary Company [Member]  
Company name Agape ATP Corporation
Place and date of incorporation Labuan, March 6, 2017
Particulars of issued capital 1 share of ordinary share of US$1 each
Principal activities Investment holding
Proportional of ownership interest and voting power held 100.00%
Subsidiary Company One [Member]  
Company name Agape ATP International Holding Limited
Place and date of incorporation Hong Kong, June 1, 2017
Particulars of issued capital 1 share of ordinary share of HK$1 each
Principal activities Health and wellness products and health solution advisory services
Proportional of ownership interest and voting power held 100.00%
Investee Company [Member]  
Company name Unreserved Sdn Bhd
Place and date of incorporation Malaysia, August 25, 2008
Particulars of issued capital 500,000 shares of ordinary share of RM7 each
Principal activities Magazines publication and advertising
Proportional of ownership interest and voting power held 20.00%
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies - Schedule of Translation Exchange Rates (Details)
Dec. 31, 2018
Dec. 31, 2017
Period-end MYR [Member]    
Foreign Currency Exchange Rate, Translation 0.0414 0.0406
Period-average MYR [Member]    
Foreign Currency Exchange Rate, Translation 0.0413 0.0421
Period-end HKD [Member]    
Foreign Currency Exchange Rate, Translation 0.0783 0.0781
Period-average HKD [Member]    
Foreign Currency Exchange Rate, Translation 0.0784 0.0781
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies - Schedule of Translation Exchange Rates (Details) (Parenthetical) - USD ($)
6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
MYR [Member]    
Exchange rate $ 1 $ 1
HKD [Member]    
Exchange rate $ 1 $ 1
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Common Stock (Details Narrative) - $ / shares
6 Months Ended
Dec. 31, 2018
Jun. 30, 2018
Common stock issued 376,275,500 376,275,500
Common stock outstanding 376,275,500 376,275,500
Common stock par value $ 0.0001 $ 0.0001
Warrants [Member]    
Potentially dilutive securities outstanding  
Stock Options [Member]    
Potentially dilutive securities outstanding  
Other [Member]    
Potentially dilutive securities outstanding  
Initial Public Offering [Member]    
Common stock issued  
Common stock outstanding  
XML 46 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Investee Company (Details Narrative) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Investment amount $ 734,195 $ 832,335
Ordinary shares authorized 1,000,000,000 1,000,000,000
Ordinary shares issued 376,275,500 376,275,500
Ordinary shares outstanding 376,275,500 376,275,500
Director [Member]    
Investment amount $ 863,592  
Equity interest percentage 20.00%  
Ordinary shares authorized 2,500,000  
Ordinary shares issued 2,500,000  
Ordinary shares outstanding 2,500,000  
Director [Member] | MYR [Member]    
Investment amount $ 3,500,000  
XML 47 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Investee Company - Schedule of Investments (Details) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Investments Schedule [Abstract]    
Cost of investment $ 832,335 $ 862,490
Less: share of result of investee company (98,140) (30,155)
Investment in investee company $ 734,195 $ 832,335
XML 48 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Marketable Securities (Details Narrative) - USD ($)
Dec. 31, 2018
Oct. 16, 2018
Jun. 30, 2018
May 17, 2018
Investment amount $ 734,195   $ 832,335  
Greenpro Capital Corp. [Member]        
Investment amount   $ 1,000   $ 500,000
Purchased price per shares   $ 0.03   $ 6
XML 49 R40.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investment in Marketable Securities - Schedule of Investment in Marketable Securities (Details) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Cost of investment $ 832,335 $ 862,490
Investment in marketable securities 501,000 500,000
Greenpro Capital Corp. [Member]    
Cost of investment 501,000 500,000
Investment in marketable securities $ 501,000 $ 500,000
XML 50 R41.htm IDEA: XBRL DOCUMENT v3.10.0.1
Cash and Cash Equivalents (Details Narrative) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Cash and Cash Equivalents [Abstract]    
Cash and cash equivalents $ 3,452,917 $ 3,531,255
Cash on hand 990,323  
Time deposits $ 2,462,594  
Interest rate 2.95%  
XML 51 R42.htm IDEA: XBRL DOCUMENT v3.10.0.1
Prepayments and Deposits - Schedule of Prepaid Expenses and Deposits (Details) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 2,702 $ 11,018
Deposits to supplier 507,367 253,923
Total prepaid expenses and deposits $ 510,069 $ 264,941
XML 52 R43.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Payables and Accrued Liabilities - Schedule of Other Payables and Accrued Liabilities (Details) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Other Liabilities Disclosure [Abstract]    
Accrued audit fees $ 7,000 $ 19,000
Accrued professional fees 884 749
Total payables and accrued liabilities $ 7,884 $ 19,749
XML 53 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Deposit Received - Schedule of Deposit Received (Details) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Total deposit received $ 217,743
Customer [Member]    
Total deposit received $ 217,743
XML 54 R45.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions (Details Narrative)
Dec. 31, 2018
Related Party B [Member]  
Ownership percentage 4.70%
XML 55 R46.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Revenue $ 269,921 $ 685,288 $ 489,499
Related Party A [Member]        
Revenue     685,288 489,499
Related Party B [Member]        
Professional Fee     4,500 210,000
Trademark Application Fee     $ 512
XML 56 R47.htm IDEA: XBRL DOCUMENT v3.10.0.1
Amount Due to a Director (Details Narrative) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Amount due to a director $ 3,921 $ 3,922
Director [Member]    
Amount due to a director $ 3,921 $ 3,921
XML 57 R48.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2018
Jun. 30, 2018
United States of America [Member]    
Cumulative net operating loss $ 395,095  
Operating loss carryforwards expire year 2038  
Valuation allowance $ 83,184 $ 76,045
Labuan [Member]    
Tax percentage 3.00%  
Hong Kong [Member]    
Statutory income tax rate 16.50%  
XML 58 R49.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes - Schedule of Components of Income/(Loss) Before Income Tax (Details) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Local     $ (33,977) $ (214,918)
Loss before income tax $ (3,319) $ (123,978) (135,481) (171,492)
Labuan [Member]        
Foreign     (45,576) (130)
Hong Kong [Member]        
Foreign     $ (55,928) $ 43,556
XML 59 R50.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes - Schedule of Provision for Income Tax (Details) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]        
Current, Local    
Current, Foreign     6,965 7,186
Deferred, Local    
Deferred, Foreign    
Income tax expense $ 3,261 $ 6,965 $ 7,186
XML 60 R51.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($)
Dec. 31, 2018
Jun. 30, 2018
Less: valuation allowance $ (82,970) $ (76,045)
Deferred tax asset
United States of America [Member]    
Net operating loss carryforwards 82,970 76,045
Hong Kong [Member]    
Net operating loss carryforwards
XML 61 R52.htm IDEA: XBRL DOCUMENT v3.10.0.1
Concentrations of Risk - Schedule of Concentrations of Risks (Details) - USD ($)
3 Months Ended 6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Revenues $ 269,921 $ 685,288 $ 489,499
Purchase 240,932 619,355 443,670
Accounts Payable [Member]        
Accounts payable, trade 131,161 131,161
Vendor A [Member] | Accounts Payable [Member]        
Accounts payable, trade 131,161 131,161
Sales Revenue, Net [Member]        
Revenues $ 269,921 $ 685,288 $ 489,499
Concentrations of risk percentage 100.00% 0.00% 100.00% 100.00%
Sales Revenue, Net [Member] | Customer A [Member]        
Revenues $ 269,921 $ 685,288 $ 489,499
Concentrations of risk percentage 100.00% 0.00% 100.00% 100.00%
Accounts Receivable [Member]        
Accounts receivable, trade $ 489,499 $ 489,499
Accounts Receivable [Member] | Customer A [Member]        
Accounts receivable, trade $ 489,499 $ 489,499
Cost of Sales [Member]        
Concentrations of risk percentage 100.00% 0.00% 100.00% 100.00%
Purchase $ 240,932 $ 619,355 $ 443,670
Cost of Sales [Member] | Vendor A [Member]        
Concentrations of risk percentage 100.00% 0.00% 89.00% 100.00%
Purchase $ 240,932 $ 555,192 $ 443,670
Cost of Sales [Member] | Vendor B [Member]        
Concentrations of risk percentage     11.00% 0.00%
Purchase     $ 64,163
XML 62 R53.htm IDEA: XBRL DOCUMENT v3.10.0.1
Concentrations of Risk - Schedule of Concentrations of Risks (Details) (Parenthetical)
3 Months Ended 6 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Customer [Member]        
Concentrations of risk percentage 10.00% 10.00% 10.00% 10.00%
Vendor [Member]        
Concentrations of risk percentage 10.00% 10.00% 10.00% 10.00%
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