0001493152-20-004884.txt : 20200327 0001493152-20-004884.hdr.sgml : 20200327 20200327135439 ACCESSION NUMBER: 0001493152-20-004884 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 93 CONFORMED PERIOD OF REPORT: 20191231 FILED AS OF DATE: 20200327 DATE AS OF CHANGE: 20200327 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: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-220144 FILM NUMBER: 20750547 BUSINESS ADDRESS: STREET 1: 1705-1708 LEVEL 17, TOWER 2, FABER TOWER STREET 2: JALAN DESA BAHAGIA, TAMAN DESA CITY: KUALA LUMPUR STATE: N8 ZIP: 58100 BUSINESS PHONE: (603) 27325716 MAIL ADDRESS: STREET 1: 1705-1708 LEVEL 17, TOWER 2, FABER TOWER STREET 2: JALAN DESA BAHAGIA, TAMAN DESA CITY: KUALA LUMPUR STATE: N8 ZIP: 58100 10-K 1 form10-k.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

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

 

For The Fiscal Year Ended _______________________

 

or

 

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

 

For the transition period from July 1, 2019 to December 31, 2019

 

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 Towers, 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

 

Securities registered pursuant to Section 12(b) of the Securities Exchange Act:

 

Common Stock, $0.0001 par value

(Title of Class)

 

The OTC Market – Pink Sheets

(Name of exchange on which registered)

 

Securities registered pursuant to Section 12(g) of the Securities Exchange Act: None

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [  ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [  ] No [X]

 

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 every Interactive Data File required to be submitted 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 [X] NO [  ]

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

 

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

 

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

 

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

 

The aggregate market value of the Company’s common stock held by non-affiliates computed by reference to the closing bid price of the Company’s common stock, as of the last business day of the registrant’s most recently completed second fiscal quarter:

 

$804,186,900.

 

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 March 25, 2020
Common Stock, $0.0001 par value   376,275,500

 

 

 

 
 

 

AGAPE ATP CORPORATION

FORM 10-K

For the Fiscal Period Ended December 31, 2019

Index

 

    Page #
PART I    
     
Item 1. Business 4
Item 1A. Risk Factors 21
Item 1B. Unresolved Staff Comments 27
Item 2. Properties 27
Item 3. Legal Proceedings 28
Item 4. Mine Safety Disclosure 28
     
PART II    
     
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29
Item 6. Selected Financial Data 29
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 30
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 39
Item 8. Financial Statements and Supplementary Data 40
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 40
Item 9A. Controls and Procedures 40
Item 9B. Other Information 42
     
PART III    
     
Item 10. Directors, Executive Officers and Corporate Governance 43
Item 11. Executive Compensation 45
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 46
Item 13. Certain Relationships and Related Transactions, and Director Independence 47
Item 14. Principal Accounting Fees and Services 50
     
PART IV    
     
Item 15. Exhibits, Financial Statement Schedules 51
     
SIGNATURES 52

 

2

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Transition Report on Form 10-K contains forward-looking statements. These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “foresee,” “estimate” and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. These risks and uncertainties include the following:

 

  The availability and adequacy of our cash flow to meet our requirements;
     
  Economic, competitive, demographic, business and other conditions in our local and regional markets;
     
  Changes or developments in laws, regulations or taxes in our industry;
     
  Actions taken or omitted to be taken by third parties including our suppliers and competitors, as well as legislative, regulatory, judicial and other governmental authorities;
     
  Competition in our industry;
     
  The loss of or failure to obtain any license or permit necessary or desirable in the operation of our business;
     
  Changes in our business strategy, capital improvements or development plans;
     
  The availability of additional capital to support capital improvements and development; and
     
  Other risks identified in this report and in our other filings with the Securities and Exchange Commission or the SEC.

 

This report should be read completely and with the understanding that actual future results may be materially different from what we expect. The forward looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Use of Defined Terms

 

Except as otherwise indicated by the context, references in this Report to:

 

  The “Company,” “we,” “us,” or “our,” “Agape” are references to Agape ATP Corporation, a Nevada corporation.
     
  “Common Stock” refers to the common stock, par value $.0001, of the Company;
     
  “U.S. dollar,” “$” and “US$” refer to the legal currency of the United States;
     
  “Securities Act” refers to the Securities Act of 1933, as amended; and
     
  “Exchange Act” refers to the Securities Exchange Act of 1934, as amended.

 

3

 

 

PART I

 

ITEM 1. BUSINESS

 

1. ORGANIZATION AND BUSINESS BACKGROUND

 

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 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 provide health and wellness products and advisory services to the public. 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.

 

Details of the Company’s subsidiaries:

 

  

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
  100 shares of ordinary share of US$1 each  Investment holding
   100 %
                   
2.   Agape ATP International Holding Limited
  Hong Kong,
June 1, 2017
  1,000,000 shares of ordinary share of HK$1 each
  Health and wellness products and health solution advisory services   100 %

 

Business Overview

 

Agape ATP Corporation is a company that provides health solution advisory services to our clients. We primarily focus our efforts on attracting customers in Malaysia. Our advisory services center on the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition and advice from skilled nutritionists and/or 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. As a strong advocator of “beauty from within”, our program shall emphasize 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.

 

4

 

 

The ATP Zeta Super Health Program consists of eight products. None of these products are owned or produced by Agape ATP Corporation. In the event that any of these products are no longer produced, or are otherwise unavailable, we may have to devote significant effort to identifying and obtaining comparable replacement products. The ten products that comprise the ATP Zeta Super Health Program are ATP1s Survivor Select, ATP2 Energized Mineral Concentrate, ATP3 Ionized Cal-Mag, ATP4 Omega Blend, ATP5 BetaMaxx, AGN-Vege Fruit Fiber, AGP1-Iron and YFA-Young Formula.

 

At present, our products are mainly sold in Malaysia, and due to the contents and combination of the main ingredients in the products they are categorized as health food rather than medicines or drugs. As such, all products require authorization from the Food and Quality Division of Ministry of Health according to the Food Act of 1983 and Food Regulation 1985 in order to be sold in the country. All of the products in the ATP Zeta Super Health Program have obtained the appropriate authorizations.

 

As part of a continuous effort to increase market share of the health and wellness industry that is growing at an exponential rate, we will also evaluate adding additional products to the ATP Zeta Super Health Program; and considering the potential of the synergies between the health and beauty sectors, we will further involve ourselves in the topical approach of skin and hair regime.

 

Currently, all our products are acquired from unrelated third parties and rebranded by the Company. We have no expenditures or expenses relating to research and development of our products for our last two fiscal years. We leverage on the smart partnerships models that we have formed, collaborating with our customers and clients to understand the health and wellness market via a process of consultative review. We then communicate our findings and proposals to third-party suppliers to improve formulations, to bring about new products for customers who are ready to market to end-users. We refer to our approach as “the Power of 3”, which we take great pride in. In the future, we will explore sourcing from third party manufacturers located in Australia, the United States, Germany and Malaysia.

 

Our Products

 

ATP1s Survivor Select

 

ATP1s Survivor Select contains various essential nutrients required by the human body to maintain the normal metabolism, which includes productions of biological energy (ATP). Effective production of ATP enhances both physical as well as mental health, and helps the body to build up resistance to diseases.

 

 

5

 

 

It helps to:

 

  Stimulate instant bio-energy production at the cellular level to ensure sufficient supply of bio energy for body cell.
  Promote better metabolism at the cellular level.
  Promote healthy and optimal growth of bones system, teeth structure and muscle tissue of children.
  Improve the digestion and nutrient absorption powers of body cell.
  Promote cell detoxification and repair capabilities in order to enhance cell self-healing ability.

 

ATP2 Energized Mineral Concentrate

 

The ATP2 is a nutritional supplement made from the finest plant substances and also is a proprietary formulation of a super-energized colloidal concentrate developed from a dibase solution. Its formula supports and enhances nutritional biochemical activities.

 

 

It helps to:

 

  Support and enhance nutritional biochemical activities (nutrient absorption and waste metabolism).
  Break down or oxidised toxins and waste material to promote cellular detoxification and improve blood circulation.
  Increase cellular respiration and energy production to reduce fatigue and maintain energy level.
  Increase oxygen level in body cells to create a high oxygen environment in the body, which possibly help to prevent the growth of harmful pathogens that contribute to diseases.
  Provide sufficient antioxidants that act as a superior scavenger of free radicals, to strengthen the body cells resistance against oxidative damages.

 

6

 

 

ATP3 Ionized Cal-Mag

 

ATP3 Ionized Cal-Mag is a specialized calcium and magnesium minerals supplement that is designed to transform into ionic form completely before entering the body. This is compatible to the cellular ion channel theory, that all cellular metabolisms are dependent on ionic transmission to achieve the highest absorption rate. This product was tested for its nanoparticle by the National Measurement Institute of Australian Government, with proven content of nanosized calcium and magnesium that has better absorption and bio-availability.

 

 

It helps to:

 

  Strengthen the bone system and promote better bone development.
  Strengthen the teeth structure and prevent teeth damages.
  Provide abundant of ionic calcium and magnesium to prevent chronic diseases through better blood circulation and acid-base regulation.
  Promote better relaxing of nervous system and regulations of neurotransmitters which helps to enhance sleep quality.
  Promote better relaxing of muscle to prevent muscle soreness and cramps.

 

ATP4 Omega Blend

 

ATP4 Omega Blend is a proprietary oil blend that is rich in undamaged polyunsaturated essential fatty acid, which is fully extracted from plant-based ingredients. It provides a bio-effective balance of both essential fatty acids, Omega 3 and Omega 6 which are the important structural components of cell membranes that cannot be synthesized by humans.

 

7

 

 

 

It helps to:

 

  Regulate cholesterol and triglycerides levels to promote better blood circulation.
  Regulate inflammation, the unifying component of many diseases, and enhance cell repairing activities.
  Regulate hormones production and functions in the body through supplies of the balanced ratio of Omega 3 and Omega 6.
  Promote healthy functioning of the brain through the maintenance of healthy impulse transmission in brain cells that is crucial for memory and learning ability.

 

ATP5 BetaMaxx

 

ATP5 BetaMaxx is derived from the cell wall of premium food-grade baker’s yeast and is a medical breakthrough result of more than 50 years of intensive research and studies by scientists and physicians. This product combines the immunostimulatory properties of perfectly molecularly structured beta 1-3, 1-6-D-glucan with other immunomodulating compounds that work in perfect synergy to make ATP5 a unique and effective natural product. It is a 100% natural immune enhancer, safe and does not cause any allergic reactions.

 

8

 

 

 

It helps to:

 

  Strengthen the function of immune cells to build up a better immune response of body for external and internal protections
  Promote better cell repairing and regulate inflammatory responses in wound healing.
  Enhance the function of immune cell against damages caused by radiation.
  Helps to normalize blood sugar levels.

 

AGN-Vege Fruit Fiber

 

AGN-Vege Fruit Fiber is the special nutrition-based formula for intestines and stomach. It consists of four most essential components for gastrointestinal health effects such as fiber, probiotic the “friendly bacteria”, prebiotic fructooligosaccharides (FOS) as well as digestive enzymes.

 

 

9

 

 

It helps to:

 

  Promote better bowel movement and prevent low-fiber diet-induced constipation.
  Maintain bowel health. FOS helps increase intestinal bifidobacteria and helps maintain a good intestinal environment.
  Slow the absorption of sugar and lipid into the bloodstream which helps improve blood sugar and cholesterol level.
  Induce better satiety, which results in reduced total food intake and helps in achieving an ideal weight management.

 

AGP1-Iron

 

AGP1-Iron is the purest and most advanced Colloidal Iron that is sourced from the remains of an ancient rainforest which contains the most active plant-based element from nature. The colloidal nanosized iron provides high zeta potential promotes better absorptivity and cellular iron uptake through the ion channel.

 

 

It helps to:

 

  Promote better hemoglobin production to improve iron deficiency anemia.
  Iron is a component of hemoglobin in red blood cell which carries oxygen to all part of the body. Therefore, it helps to improve blood circulation and prevent some oxygen deficiency symptoms through enhancement of oxygen delivery and nutrient circulation as well as toxins excretion.
  Iron is a factor in red blood cell formation. It promotes hemoglobin production hence is suitable especially for women and individual who experienced accidental bleedings.

 

10

 

 

YFA-Young Formula

 

YFA-Young Formula is a 100% natural unique formula, a combination of amino acid, vitamins, and minerals and is the best anti-aging and youthful maintenance supplement. It stimulates the pituitary gland to release endocrine hormones such as human growth hormone (HGH) to stimulate synergies thus achieving the efficacy of anti-ageing through the promotion of cells vitality and strengthening of organ function.

 

 

It helps to:

 

  Enhance the production of bio-energy ATP and metabolism, which aids in reducing body fat accumulation and promote strong muscles building.
  Stimulate the production of collagen to restore skin elasticity and reduce wrinkles.
  Reduce pigmentation and dark spots on face caused by hormonal imbalances.
  HGH builds and repairs tissues and thus has an effect on hair cells at the hair root to promote healthy hair growth.
  Enhance memory and cardiovascular function and prevent various chronic diseases due to HGH deficiency.

 

11

 

 

BEAUNIQUE Mito+ and Mitogize

 

We retire ATP Regal Mitogize on October 1, 2019. In its stead, an enhanced formula, the BEAUNIQUE Mito+ was introduced in November 2019. As a strong antioxidant drink with great flavor and taste, the preeminence of BEAUNIQUE Mito+ is its ability to further protect and stimulate mitochondria (the powerhouse of cells) in cellular energy (ATP) production with the added advantage of less total sugars and calories. The new formula comprises 11 Superfood including potent mangosteen skin extract. Backed by advanced scientific research and tested on 88 nutrigenomic profile, the new formulation revealed enhanced antioxidant properties. 96.34% DPPH Radical Scavenging activity, an approximate 22% increase compare to Mitogize.

 

 

It Promotes:

 

  Cellular health
  Effective antioxidants to protect from cellular oxidative damages.
     
  Immune health
  Enhance adaptive immune response.
  Anti-inflammatory.
 

Strengthen immunity against bacteria and viruses.

     
  Metabolic health
  Reduce risk of obesity.
  Reduce risk of vascular diseases.
 

Reduce risk of Type II Diabetic.

     
  Brain health
 

Reduce risk of neurodegenerative diseases.

     
  Skin health
  Systemic photoprotection.
  Reduce dark spot formation.
  Alleviates skin wrinkle and inflammation induced by UV-B irradiation.

 

12

 

 

ORYC-Organic Youth Care Cleansing Bar

 

ORYC-Organic Youth Care Cleansing Bar is a natural, organic cleansing soap for skin. It contains pure Australian-accredited natural and organic plant oils acting as a high quality and natural skin lubricant. It maintains the softness of the skin while promoting skin beauty and radiance.

 

 

It helps:

 

  With its biodynamic avocado oil and vanilla extract, remove impurities, leaving skin clear, fresh and clean.
  With its biodynamic, coconut, almond and olive oil, moisturize and texturize the skin to prevent skin drying.
  In acting as natural anti-bacterial and anti-inflammatory agents, reduce the risks of skin infections and allergies.

 

*References alluding to the efficacy and effects of our products are based on client testimonials.

 

13

 

 

Beauty Products

 

The Company’s ENERGETIQUE series aim to provide a total dermal solution for a healthy skin beginning from the cellular level. The series is comprised of Energy Mask, Hyaluronic Acid Serum and Mousse Facial Cleanser.

 

ENERGY MASK SERIES

 

The Company’s Energetique Mask Series is formulated with triple action natural ingredients and advanced technologies. The innovative combination of award-winning patented liposome encapsulating the customized fast acting patented essence, produces micro-particle liposome which, combined with collagen peptide Tencel film, creates an effective formulation that benefits the skin at the cellular level.

 

There are three types of face masks in the Energetique Mask Series, each to suit a different skin requirement. They are: N°1 Med-Hydration; N°2 Med-Whitening; N°3 Med-Firming. Advanced genetic analysis and clinical trials conducted revealed the benefits and efficacies of the patented functional essence. The Energetique Mask Series has clinically shown deep penetration of liposomal essence into deep skin layers within 5 minutes of the application to deliver immediate, deep-reaching and long-lasting benefit of skin hydration, whitening, and firming.

 

N°1 Med-Hydration

 

Formulated with the patented Sea Grape (Caulerpa lentillifera) extract, the N°1 Med-Hydration enhances skin moisture and luminosity. This treatment effectively improves the moisture content of the inner skin layer and rejuvenate the skin barrier function to avoid moisture loss.

 

 

It helps:

 

  locking the skin moisture and nutrients, strengthening the skin barrier function and boosting the skin’s moisture level.
  to increase the skin’s natural moisturizing factor (PCA) and skin layer glycoprotein connectivity to maintain the skin’s moisture.
  to effectively retain water, provides moisturization, restores skin elasticity, and promotes the growth of fibroblasts for moisturization, removes dryness, regains skin’s elasticity and smoothness.
  immensely in delivering an instant boost of skin moisture content up to 45.7% in just 5 minutes of application and synergistically ensuring a profound and long-lasting skin moisturization and hydration.

 

14

 

 

N°2 Med-Whitening

 

Formulated with patented Peach Blossom Stem Cell Extract, the N°2 Med-Whitening has clinically shown its efficacy in inhibiting the melanin synthesis, down-regulating the melanin synthesis gene, boosting skin moisture level and protecting skin against UV radiation.

 

 

It helps:

 

  in suppressing melanin production and fight against UV radiation to protect skin cells and result in whitening effect.
  to stimulate interstitial hyperplasia cell and helps in increasing the moisturizing ceramide by 7.4 times in order to remove skin roughness and smoothing skin.
  to enhance the skin brightness up to 6.3% in just 5 minutes of application and synergistically rejuvenate a profound and long-lasting skin ability in anti-UV damage.

 

N°3 Med-Firming

 

Formulated with the patented Djulis (Chenopodium formosanum Koidz) Seed Extract, the native cereal plant in Taiwan and traditionally called “ruby of cereals.” The formulation is clinically proven to be effective in stimulation of collagen secretion and anti-advances glycation end-products (AGEs) reducing the glycation of skin collagen, provide protection and maintenance of the basal skin collagen production.

 

 

15

 

 

It helps:

 

  to suppress the skin collagen glycation process, reduces collagen loss, and enhancing collagen secretion.
  repairing the dead skin tissue, smooth wrinkles to restore the smoothness and health of the skin.
  preventing wrinkles formation and providing the essential skin moisture content.
  to boost skin elasticity by up to 14.4%. and improve sagging skin by 135 in just 5 minutes of application.

 

Unique Characteristics via Nutrigenomic

 

The Company’s BEAUNIQUE product series focuses on the research of diet’s impact on modifying gene expressions to address genetic variations and deliver a personalized nutrigenomic solution for every individual.

 

Trim+:

 

Trim+ is the first product launched under this series, utilizes the advanced technology to extract the patented active ingredients in foods. Trim+ has scientifically proven to be effective in inhibiting the activities of carbohydrates digestive enzymes, which results in a reduction of the breakdown and absorption of sugars.

 

 

It helps to:

 

  Reduce total carbohydrates calories intake with the scientifically proven effect on weight management.
  Regulate blood sugar levels with scientifically proven efficacy.
  Improve cellular uptake of sugars for bioenergy ATP production.
  Maintain insulin hormone balance, helps prevent diabetes.
  Improve blood lipids composition, helps prevent cardiovascular disease.

 

16

 

 

New Products Launches

 

On 3rd November 2019, the Company expanded its beauty products under the ENERGETIQUE series, to include beauty essentials of the skincare routine, i.e. the ÉNERGÉTIQUE Mousse Facial Cleanser and ÉNERGÉTIQUE Hyaluronic Acid Serum. These new products have extended the ÉNERGÉTIQUE brand vision in offering a total dermal solution for a healthy skin beginning from the cellular level.

 

ÉNERGÉTIQUE Hyaluronic Acid (HA) Serum

 

Formulated with four functional hyaluronic acid and a unique peptide, this scientifically advanced and intensive quintuple action serum proven to deliver 5Rs dermal benefits. Filled in an innovative yet convenient and hygienics syringe packaging, this HA serum also ensure consumer-perceivable benefits for every skin type.

 

 

Benefits

 

  REBALANCE - Hydrate the skin surface by forming a protection layer and keep skin moisturized even after cleansing
  RECOVER – Repair the out-balanced lamellar layer to act as barrier to prevent skin moisture from evaporation
  REGENERATE - Promote the production of Type I pro-collagen and boost skin’s own production of Hyaluronic Acid up to 3 times
  REHYDRATE - Nano-sized particles with high capacity of water-holding allow deep penetration and bestows moisture from inside the skin. Long-lasting moisture retention up to 72 hours
  REMODELLING - Proven to increase skin firmness +200% (cheek, under-eye and neck). Enhance skin viscoelasticity to improves skin roughness

 

17

 

 

ÉNERGÉTIQUE Mousse Facial Cleanser

 

Formulated with the mildest surface-active agents available on the market, this facial cleanser was designed to deliver a distinct A to E cleansing benefits to consumers. The unique mousse like-foam delivers a comfortable and soft feeling of the skin during and after use without compromising the moisturizing level and viscoelastic properties of the skin.

 

 

Benefits

 

  A. All Skin Type
      a. Hypoallergenic
      b. Non-comedogenic
         
  B. Balance
      a. pH-balanced formula with buffer capacity at pH 5.5 of the skin.
         
  C. Comfortable
      a. Mild to skin and eyes without irritating or drying your skin
      b. Comfortable and soft feeling prolonged comfortable to skin before and after use. Accidental consuming would not be harmful to your body.
         
  D. Dense
      a. Mousse-like foam very fine porous foam and smooth skin-feel during use
         
  E. Effortlessly
      a. Easily remove light makeup, dirt and impurities.
      b. Easy to rinse with no residual.

 

18

 

 

Future Plans

 

The World Health Organization or WHO, has since March 11, 2020 declared the corona virus or COVID-19 a pandemic. Malaysia, where our products are mainly sold at present, reported 553 cases of the COVID-19 on March 16, 2020; and the number is still rising. In view of the seriousness of the matter, the local government of Malaysia had, on the same day, imposed a nationwide lockdown effective March 18, 2020.

 

As the intermediary between our suppliers and our sole customer in Malaysia, the onslaught of the pandemic poses challenges to us at both sourcing and supplying our products. Our sole customer has confirmed that onward delivery of our products is via multi-level marketing or MLM to end users who are also members of the MLM group that make up consistent demand of our products. In an effort to embrace globalization, the MLM group has also embarked on e-commerce. The MLM group has synched up with a Malaysian e-commerce trading platform, which will make its debut in the next three months to commence e-marketing and e-trading of its products to members, as well as online e-recruitment of new members. The MLM group is positive that its online e-recruitment service which capitalizes on a large number of followers of well-known key products influencers will dramatically increase the number of members most expediently with minimal cost, thereby increasing demand of our products. Considering our products are health supplements, we also expect impressive demand growth at a time when everyone’s health is at risk. This should translate into sustainable growth once awareness of the importance of health is created.

 

Although some of the countries from which our products are sourced are experiencing lockdowns, industries involved in the provision of food, especially health products and pharmaceuticals, are normally exempted. We may experience slight delay in products delivery lead time, but barring unforeseen circumstances, the setback should be temporary.

 

We anticipate operating primarily in Malaysia and expanding into the Asian markets in the future, with a particular focus, at least initially, on expanding into Thailand, Indonesia and Taiwan. We will explore expansion via e-commerce. When the pandemic has subsided or is over and restrictions on travelling between nations are uplifted, we will set up offices in the countries in which we operate to better service our customers.

 

We plan to hire at least five to ten salespeople for every country in which we operate. At present, we do not have any salesforce. It will also be necessary for us to acquire office space to conduct operations, have meetings with potential clients, and store acquired inventory. At present, we do not have any distinct timeline in place for expansion into these countries.

 

We plan to hire additional employees to support our operations in different countries. We believe that hiring fifteen to twenty employees will be sufficient in order to support our operations. We also plan to allocate funds to research new products for the ATP Zeta Super Health Program. However, such development will require intensive research, development and testing. We cannot accurately determine a definitive timeline at present, nor have we determined an appropriate budget, for these future activities. We may also evaluate potential acquisitions in the future which we feel may have some synergy with our current operations.

 

Marketing

 

Agape ATP Corporation plans to penetrate the marketplace and attract customers by building our brand image through print ads, and possibly online paid advertisements, in order to create brand awareness. We are developing a corporate website which will introduce the ATP Zeta Super Health Program. We will market our advisory services through this corporate website and utilize marketing related search engines to attract potential clients to our website. Additionally, we will further our marketing activities through social networking websites.

 

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Competition

 

The health and wellness industry, with a focus on health supplements in particular in Malaysia, where Agape ATP Corporation plans to operate, is rather competitive. Our focus is on the mature group of customers, i.e. adults ranging in age from 18-65 years old. We face competition from various retail health supplement providers, pharmacies, and Multi-Level Marketing Companies which supply health supplement products, such as Bio-Life Marketing Sdn Bhd, Elken Group, Usana Group, BMS Organics, NHF Group and their respective affiliates. These competitors are generating significant traffic to their marketing websites; and have established brand recognition and financial resources.

 

We believe that the principal competitive factors in our type of market include the quality of health supplements, the efficacies of the health supplements, strength and depth of relationships with clients, the ability to identify the changing needs and requirements of prospective clients, and the scope of services. Through utilizing our competitive strengths, we believe that we have a competitive edge over other competitors due to the breadth of our product offerings, one stop convenience, pricing, our services, our reputation and product safety. We are confident we can develop and enlarge our market share in the Malaysian market and potentially further into the overseas market.

 

Customers

 

Agape S.E.A. Sdn Bhd, a related party, remains our sole customer as at the end of the fiscal period ended December 31, 2019. Revenue generated for the six months ended December 31, 2019, years ended June 30, 2019 and 2018 were $429,362, $1,524,596 and $487,008 respectively.

 

Employees

 

We have no employees as of the date of this annual report, with the exception of our sole officer and director, Mr. How Kok Choong. Mr. How currently devotes approximately 30 hours per week to the Company’s matters. Mr. How Kok Choong plans to devote as much time as the Board of Directors determines is necessary for him to manage the affairs of the Company. As our business and operations increase, we plan to hire full time management and administrative support personnel.

 

Government regulation

 

At present, our products are mainly sold in Malaysia, and due to the contents and combination of the main ingredients in the products they are categorized as health food rather than medicines or drugs. As such, all products require authorization from the Food and Quality Division of Ministry of Health according to the Food Act of 1983 and Food Regulation 1985 in order to be sold in the country. All of the products in the ATP Zeta Super Health Program have obtained the appropriate authorizations.

 

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ITEM 1A. RISK FACTORS

 

Risks Related to our Business

 

We are exposed to concentration risk of heavy reliance on our major customer. A loss of our major customer may significantly impact on our business and results of operation.

 

For the six months ended December 31, 2019, we earned revenue of $429,362 from our major customer. Our major customer may terminate its business relationships with us at any time. We cannot assure you that our major customer will maintain current business relationship with us. If it chooses not to do so, our business, financial condition and operating results may suffer from a material adverse impact.

 

We are exposed to concentration risk of heavy reliance on our major supplier for the supply of our products, and any shortage of, or delay in, the supply may significantly impact on our business and results of operation.

 

For the six months ended December 31, 2019, we purchased $383,479 from two of our major suppliers. Our business, financial condition and operating results depend on the continuous supply of products from our major supplier and our continuous supplier-customer relationship with it. Our heavy reliance on our major supplier for the supply of our products will have significant impact on our business and results of operation in the event of any shortage of, or delay in the supply.

 

Our major supplier may terminate the distribution agreement by giving notice to us, in which case our business, financial condition and operating results may suffer from a material adverse impact.

 

As is customary in distribution arrangements of this type, the distribution agreement with our major supplier is terminable by either party by giving notice. There is no assurance that our major supplier will not terminate the distribution agreement. In the event that it terminates the distribution agreement, we will have to source products from other suppliers and we may not be able to secure supply of products with quantity and quality required to support our business or at all. Such termination may therefore have a material adverse impact on our business, financial condition and operating results if we fail to engage any other suppliers before the termination.

 

We are exposed to unforeseeable events of labor disputes, strike action or natural disasters or other accidents which may affect the supply of our products from our major supplier.

 

There is no assurance that our major supplier will continue to supply its products in the quantities and timeframes required by us to meet the needs of our customers or comply with its supply agreement with us. Our product supply may also be disrupted by potential labor disputes, strike action or natural disasters or other accidents affecting the supplier. If our supplier does not supply products to us in a timely manner or in sufficient quantities, our business, financial condition and operating results may be materially and adversely affected. Furthermore, in the event of any delay in delivery of the products to us, our cash flow or working capital may be materially and adversely affected as a result of the corresponding delay in delivery of our products to our customers, and hence the delay in our receipt of payment from our customers.

 

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Our major supplier may change its existing sales or marketing strategy by changing its export strategy, reducing its sales or production volume, changing its selling prices or appointing other distributors which may compete with us in the market where we currently operate or which we plan to expand into.

 

Our major supplier may change its existing sales or marketing strategy in respect of the products supplied to us by changing its export strategy, reducing its sales or production volume or changing its selling prices. Consequently, there is no assurance that our major supplier will not appoint other dealers or distributors which may compete with us in the market where we operate. Furthermore, any significant increase in the selling prices of the products which we source from our supplier will increase our costs and may adversely affect our profit margin if we are not able to pass the increased costs on to our customers.

 

There is no assurance that there will be no deterioration in our relationship with our major supplier which could affect our ability to secure sufficient supply of products for our business. In the event that our major supplier changes its sales or marketing strategy or otherwise appoint other dealers or distributors who may compete with us, our business, financial condition and operating results may be materially and adversely affected.

 

We could be adversely affected by a change in consumer preferences, perception and spending habits and failure to develop or enrich our product offering or gain market acceptance of our new products could have a negative effect on our business.

 

The market we operate is subject to changes in consumer preference, perception and spending habits. Our performance depends significantly on factors which may affect the level and pattern of consumer spending in the market we operate. Such factors include consumer preference, consumer confidence, consumer income and consumer perception of the safety and quality of our products. Media coverage regarding the safety or quality of, or diet or health issues relating to, our products or the raw materials, ingredients or processes involved in their manufacturing, may damage consumer confidence in our products. A general decline in the consumption of our products could occur as a result of change in consumer preference, perception and spending habits at any time.

 

Any failure to adapt our product offering to respond to such changes may result in a decrease in our sales if such changes are related to certain of our products. Any changes in consumer preference could result in lower sales of our products, put pressure on pricing or lead to increased levels of selling and promotional expenses. In any event a decrease in customer demand on our products may also result in lower sales and slow down the consumption of our inventory to a low inventory turnover level. Any of these changes could result in a material adverse effect on our business, financial conditions or results of operations.

 

The success of our products depends on a number of factors including our ability to accurately anticipate changes in market demand and consumer preferences, our ability to differentiate the quality of our products from those of our competitors, and the effectiveness of our marketing and advertising campaigns for our products. We may not be successful in identifying trends in consumer preferences and developing products that respond to such trends in a timely manner. We also may not be able to effectively promote our products by our marketing and advertising campaigns and gain market acceptance. If our products fail to gain market acceptance, are restricted by regulatory requirements, or have quality problems, we may not be able to fully recover our costs and expenses incurred in our operation, and our business prospects, financial condition or results of operations may be materially and adversely affected.

 

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We may incur losses resulting from product liability claims or product recalls.

 

We may incur losses resulting from product liability claims with respect to our products supplied by our supplier. We may face claims or liabilities which may arise if there exist any defects in quality of these products or any of these products are deemed or proven to be unsafe, defective or contaminated. In the event that the use or misuse of any product distributed by us results in personal injury or death, product liability and/or indemnity claims may be brought against us, in addition to our product recalls, and the relevant regulatory authorities in the market we operate may close down some of our related operations and take administrative actions against us. If we experience any business disruption and litigation, we may incur additional costs and have to divert our management’s attention and resources on such matters, which may adversely affect our business, financial condition and results of operations.

 

We operate in a heavily regulated industry.

 

Our business is principally regulated by various laws and regulations in the market we operate, such as in Malaysia the Food Act of 1983 and Food Regulation 1985 mandate authorization from the Food and Quality Division of the Ministry of Health for our Company’s products to be sold in the country.

 

Various registrations, certificates and/or licenses for the conduct of our business are required under the above laws, which also contain provisions for requirements on the storage, labelling, advertising and importation of some of our products.

 

Based on our experience, some of the laws and regulations of the place where we operate our business are subject to amendments, uncertainty in interpretation and administrative actions from time to time. Therefore, we cannot assure you that, for the implementation of our business plans and the introduction of any new product, we will be able to obtain all the necessary registrations, certificates and/or licenses. Any failure to comply with the above laws and regulations may give rise to fines, administrative penalties and/or prosecution against us, which may adversely affect our reputation, financial condition or results of operation.

 

Legal disputes or proceedings could expose us to liability, divert our management’s attention and negatively impact our reputation.

 

We may at times be involved in potential legal disputes or proceedings during the ordinary course of business operations relating to product or other types of liability, employees’ claims, labor disputes or contract disputes that could have a material and adverse effect on our reputation, operation and financial condition. If we become involved in material or protracted legal proceedings or other legal disputes in the future, the outcome of such proceedings could be uncertain and could result in settlements or outcomes which adversely affect our financial condition. In addition, any litigation or legal proceedings could incur substantial legal expenses as well as significant time and attention of our management, diverting their attention from our business and operations.

 

If we are not successful in our innovation activities, our results may be negatively affected.

 

Achieving our business growth objectives depends in part on our ability to successfully develop, introduce and market new products. The success of our innovation activities in turn depends on our ability to correctly anticipate customer and consumer acceptance and trends, obtain, maintain and enforce necessary intellectual property protections and avoid infringing on the intellectual property rights of others. If we are not successful in our innovation activities, we may not be able to achieve our growth objectives, which may have a negative impact on our financial results.

 

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Fluctuations in foreign currency exchange rates could have a material adverse effect on our financial results.

 

We earn revenues, pay expenses, own assets and incur liabilities in countries using currencies other than the U.S. dollar, including Australian Dollar, Malaysian Ringgit and the Hong Kong Dollar. Because our consolidated financial statements are presented in U.S. dollars, we must translate revenues, income and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting period. Therefore, increases or decreases in the value of the U.S. dollar against other currencies affect our net operating revenues, operating income and the value of balance sheet items denominated in foreign currencies. We cannot assure you that fluctuations in foreign currency exchange rates, particularly the strengthening of the U.S. dollar against major currencies would not materially affect our financial results.

 

Our business depends on the continued contributions made by Mr. How Kok Choong, as our key executive officer, the loss of who may result in a severe impediment to our business.

 

Our success is dependent upon the continued contributions made by our CEO and President, Mr. How Kok Choong. We rely on his expertise in business operations when we are developing our business. We have no “Key Man” insurance to cover the resulting losses in the event that any of our officer or directors should die or resign.

 

If Mr. How Kok Choong cannot serve the Company or is no longer willing to do so, the Company may not be able to find alternatives in a timely manner or at all. This would likely result in a severe damage to our business operations and would have an adverse material impact on our financial position and operating results. To continue as a viable operation, the Company may have to recruit and train replacement personnel at a higher cost.

 

Additionally, if Mr. How Kok Choong joins our competitors or develops similar businesses that are in competition with our Company, our business may also be negatively impacted.

 

Our future success depends on our ability to attract and retain qualified long-term staff to fill management, technology, sales, marketing, and customer services positions. We have a great need for qualified talent, but we may not be successful in attracting, hiring, developing, and retaining the talent required for our success.

 

If we are not able to achieve our overall long-term growth objectives, the value of an investment in our Company could be negatively affected.

 

We have established and publicly announced certain long-term growth objectives. These objectives were based on, among other things, our evaluation of our growth prospects, which are generally driven by the sales potential of many product types, some of which are more profitable than others, and on an assessment of the potential price and product mix. There can be no assurance that we will realize the sales potential and the price and product mix necessary to achieve our long-term growth objectives.

 

We face risks related to health epidemics, severe weather conditions and other outbreaks.

 

In recent years, there have been outbreaks of epidemics in various countries, including Malaysia. Recently, there was an outbreak of a novel strain of coronavirus (COVID-19), which has spread rapidly to many parts of the world, including Malaysia. In March 2020, the World Health Organization declared the COVID-19 a pandemic. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in Malaysia for the past few weeks.

 

Substantially all of our revenues are concentrated in Malaysia. Consequently, our results of operations will likely be adversely, and may be materially, affected, to the extent that the COVID-19 or any other epidemic harms the Malaysia and global economy in general. Any potential impact to our results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond our control. Potential impacts include, but are not limited to, the following:

 

  temporary closure of offices, travel restrictions, financial impact of our customers or suspension supplies may negatively affected, and could continue to negatively affect, the demand for our products;

 

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  our sole customer may require additional time to pay us or fail to pay us at all, which could significantly increase the amount of accounts receivable and require us to record additional allowances for doubtful accounts. We may have to provide significant sales incentives to our sole customer during the outbreak, which may in turn materially adversely affect our financial condition and operating results;
     
  any disruption of our supply chain, logistics providers or customers could adversely impact our business and results of operations, including causing us or our suppliers to cease manufacturing for a period of time or materially delay delivery to our sole customer, which may also lead to loss of our sole customer; and
     
  the global stock markets have experienced, and may continue to experience, significant decline from the COVID-19 outbreak and the marketable securities that we have invested in could be materially adversely affected, which may lead to significant impairment in the fair values of our investments and in turn materially adversely affect our financial condition and operating results.

 

Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the coronavirus cannot be reasonably estimated at this time. There is no guarantee that our total revenues will grow or remain at the similar level year over year in the next three quarters of 2020. We may have to record downward adjustments or impairment in the fair value of investments in the first quarter of 2020, if conditions have not been significantly improved and global stock markets have not recovered from recent declines.

 

In general, our business could be adversely affected by the effects of epidemics, including, but not limited to, the COVID-19, avian influenza, severe acute respiratory syndrome (SARS), the influenza A virus, Ebola virus, severe weather conditions such as flood or hazardous air pollution, or other outbreaks. In response to an epidemic, severe weather conditions, or other outbreaks, government and other organizations may adopt regulations and policies that could lead to severe disruption to our daily operations, including temporary closure of our offices and other facilities. These severe conditions may cause us and/or our partners to make internal adjustments, including but not limited to, temporarily closing down business, limiting business hours, and setting restrictions on travel and/or visits with clients and partners for a prolonged period of time. Various impact arising from a severe condition may cause business disruption, resulting in material, adverse impact to our financial condition and results of operations.

 

Risks Related to our Industry

 

Our business and reputation may be affected by product liability claims, litigation, customer complaints, product tampering, food safety issues, food-borne illnesses, health threats, quality control concerns or adverse publicity relating to our products. Product liability insurance of our supplier may not cover our liability sufficiently or at all.

 

Like other consumer product manufacturers, sale of our products involves an inherent risk of our products being found to be unfit for consumption or cause illness. Products may be rendered unfit for consumption due to raw materials or product contamination or degeneration, presence of microbials, illegal tampering of products by unauthorized third parties or other problems arising during the various stages of the procurement, production, transportation and storage processes. The occurrence of such problems may result in customer complaints, fines, penalties or adverse publicity causing serious damage to our reputation and brand, as well as product liability claims, other legal disputes and loss of revenues. Under certain circumstances, we may be required to recall our products. Even if a situation does not necessitate a product recall, we cannot assure you that product liability claims or other legal disputes will not be asserted against us as a result. Product liability insurance of our supplier may not cover our liability sufficiently or at all and will not cover liability that arises out of our default such as mishandling, poor storage condition and/or contamination of the products by us. As a result, a product liability or other judgment against us, or a product recall, could have a material adverse effect on our business, financial condition or results of operations.

 

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Our business is susceptible to food-borne illnesses. We cannot assure you that we are able to effectively prevent all diseases or illnesses caused by our products or contamination of our products. Furthermore, our reliance on third-party product suppliers means that food-borne illness incidents could be caused by our suppliers outside of our control. New illnesses may develop in the future, or diseases with long incubation periods could arise that could give rise to claims or allegations on a retroactive basis. Reports in the media of instances of food-borne illnesses or health threats of our products or any of their major ingredients could adversely and significantly affect our sales, and have significant negative impact on our results of operations. This risk exists even if it were later determined that the illness or health threat in fact was not caused by our products.

 

In addition, adverse publicity about health and safety concerns, whether unfounded or not, may discourage consumers from buying our products. Even if a product liability claim is unsuccessful or is not fully pursued, the negative publicity surrounding any assertion that our products caused personal injury or illness could adversely affect our reputation and our corporate and brand image. If consumers were to lose confidence in our brand and reputation, we could suffer long-term or even permanent declines in our sales and results of operation. The amount of negative news, customers complaints and claims against us may also be very costly and may divert our management’s attention from our business operation.

 

Increased competition and capabilities in the marketplace could hurt our business.

 

The market where we operate is highly competitive. We compete with other companies that operate in multiple geographic areas, as well as numerous companies that are primarily regional or local in operation. Our ability to gain or maintain share of sales in the market where we operate or in various local markets may be limited as a result of actions by competitors. If we do not continue to strengthen our capabilities in marketing and innovation to maintain our brand loyalty and market share while we selectively expand into other product categories, our business could be negatively affected.

 

Risks Related to our Common Stock

 

The market price of our shares is likely to be highly volatile and subject to wide fluctuations in response to factors such as:

 

  variations in our actual and perceived operating results, especially during this time when the COVID-19 pandemic poses a threat;
     
  news regarding gains or losses of customers or suppliers by us or our competitors;
     
  news regarding gains or losses of key personnel by us or our competitors;
     
  announcements of competitive developments, acquisitions or strategic alliances in our industry by us or our competitors;
     
  changes in earnings estimates or buy/sell recommendations by financial analysts;
     
  potential litigation;
     
  the imposition of fines or penalties related to our activities in the market where we operate and failure to comply with applicable rules and regulations;
     
  general market conditions or other developments affecting us or our industry; and
     
  the operating and stock price performance of other companies, other industries and other events or factors beyond our control.

 

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In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are not related to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of the shares.

 

We may never be able to pay dividends and are unlikely to do so.

 

To date, we have not paid, nor do we intend to pay in the foreseeable future, dividends on our common stock, even if we become profitable. Earnings, if any, are expected to be used to advance our activities and for working capital and general corporate purposes, rather than to make distributions to stockholders. Since we are not in a financial position to pay dividends on our common stock and future dividends are not presently being contemplated, investors are advised that return on investment in our common stock is restricted to an appreciation in the share price. The potential or likelihood of an increase in share price is uncertain.

 

In addition, under Nevada law, we may only pay dividends subject to our ability to service our debts as they become due and provided that our assets will exceed our liabilities after the dividend. Our ability to pay dividends will therefore depend on our ability to generate sufficient profits.

 

Shareholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through the issuance of securities.

 

Wherever possible, our board of directors will attempt to use non-cash consideration to satisfy obligations. In many instances, we believe that the non-cash consideration will consist of shares of our common stock, warrants to purchase shares of our common stock or other securities. Our board of directors has authority, without action or vote of the shareholders, to issue all or part of the authorized but unissued shares of common stock or warrants to purchase such shares of common stock. In addition, we may attempt to raise capital by selling shares of our common stock, possibly at a discount to market in the future. These actions will result in dilution of the ownership interests of existing shareholders and may further dilute common stock book value, and that dilution may be material. Such issuances may also serve to enhance existing management’s ability to maintain control of us, because the shares may be issued to parties or entities committed to supporting existing management.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS

 

None.

  

ITEM 2. PROPERTIES

 

Business support services are rendered from:

 

Our principal executive office at

1705 – 1708, Level 17, Tower 2,

Faber Towers, Jalan Desa Bahagia,

Taman Desa, 58100 Kuala Lumpur, Malaysia.

Room 2708-9, 2F,

The Metropolis Tower,

10 Metropolis Drive, Hunghom,

Kowloon, Hong Kong.

 

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ITEM 3. LEGAL PROCEEDINGS

 

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. There are currently no pending legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results. None of our directors, officers or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

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PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Our Common Stock is currently listed on the OTC Markets – Pink Sheets under the trading symbol “ATTP.” There is no active trading market in the Company’s securities.

 

Holders

 

As of December 31, 2019, we had 376,275,500 shares of our Common Stock par value, $0.0001 issued and outstanding. There were 1,208 record holders of our Common Stock.

 

Transfer Agent and Registrar

 

Our transfer agent is VStock Transfer, LLC, with an address at 18, Lafayette Place, Woodmere, New York 11598 and telephone number is +1 (212)828-843.

 

Dividend Policy

 

Any future determination as to the declaration and payment of dividends on shares of our Common Stock will be made at the discretion of our board of directors out of funds legally available for such purpose. We are under no contractual obligations or restrictions to declare or pay dividends on our shares of Common Stock. In addition, we currently have no plans to pay such dividends. Our board of directors currently intends to retain all earnings for use in the business for the foreseeable future.

 

Equity Compensation Plan Information

 

Currently, there are no equity compensation plan in place.

 

Unregistered Sales of Equity Securities

 

None.

 

Purchases of Equity Securities by the Registrant and Affiliated Purchasers

 

We have not repurchased any shares of our common stock during the six months ended December 31, 2019.

 

ITEM 6. SELECTED FINANCIAL DATA

 

The following table sets forth selected financial data as of December 31, 2019 and for our last four fiscal years (from the date of incorporation of the Company), This selected financial data should be read in conjunction with the consolidated financial statements and related notes included in Item 15 of this Annual Report.

 

   Years ended June 30, 
   2019   2018   2017 
Revenue  $1,546,057   $487,005   $- 
Net loss  $(519,642)  $(130,274)  $(75,362)
Net loss per share – (basic and diluted)  $(0.00)  $(0.00)  $(0.00)

 

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   As of June 30, 
   2019   2018   2017 
Total assets  $4,651,755   $5,128,531   $2,312,748 
Total liabilities  $71,402   $29,750   $8,100 

 

   Six months ended December 31, 
   2019   2018   2017 
       (unaudited)   (unaudited) 
Revenue  $429,362   $685,288   $489,499 
Net loss  $(338,931)  $(142,446)  $(178,678)
Net loss per share – (basic and diluted)  $(0.00)  $(0.00)  $(0.00)

 

   As of December 31, 
   2019   2018   2017 
       (unaudited)   (unaudited) 
Total assets  $4,335,274   $5,198,181   $2,708,503 
Total liabilities  $83,988   $241,847   $144,289 

 

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the notes to those financial statements appearing elsewhere in this Report.

 

Certain statements in this Report constitute forward-looking statements. These forward-looking statements include statements, which involve risks and uncertainties, regarding, among other things, (a) our projected sales, profitability, and cash flows, (b) our growth strategy, (c) anticipated trends in our industry, (d) our future financing plans, and (e) our anticipated needs for, and use of, working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plan,” “potential,” “project,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” or the negative of these words or other variations on these words or comparable terminology. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur. You should not place undue reliance on these forward-looking statements.

 

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

 

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 operates through its wholly owned subsidiary, Agape ATP Corporation, a company organized in Labuan, Malaysia, which, in turn holds 100% of Agape ATP International Holding Limited, a Hong Kong Company.

 

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Agape ATP Corporation is a company that provides health and wellness products and solution advisory services to our clients. We primarily focus our efforts on attracting customers in Malaysia. Our advisory services center on the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition and advice from skilled nutritionists and/or 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. As a strong advocator of “beauty from within”, our program shall emphasize 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.

 

The ATP Zeta Super Health Program consists of ten products. None of these products are owned or produced by Agape ATP Corporation. In the event that any of these products are no longer produced, or are otherwise unavailable, we may have to devote significant effort to identifying and obtaining comparable replacement products. The ten products that comprise the ATP Zeta Super Health Program are ATP1s Survivor Select, ATP2 Energized Mineral Concentrate, ATP3 Ionized Cal-Mag, ATP4 Omega Blend, ATP5 BetaMaxx, AGN-Vege Fruit Fiber, AGP1-Iron, YFA-Young Formula, ATPR-Mito + and ORYC-Organic Youth Care Cleansing Bar.

 

At present, our products are mainly sold in Malaysia, and due to the contents and combination of the main ingredients in the products they are categorized as health food rather than medicines or drugs. As such, all products require authorization from the Food and Quality Division of Ministry of Health according to the Food Act of 1983 and Food Regulation 1985 in order to be sold in the country. All of the products in the ATP Zeta Super Health Program have obtained the appropriate authorizations.

 

As part of a continuous effort to increase market share of the health and wellness industry that is growing at an exponential rate, we will also evaluate adding additional products to the ATP Zeta Super Health Program; and considering the potential of the synergies between the health and beauty sectors, we will further involve ourselves in the topical approach of skin and hair regime.

 

Currently, all our products are acquired from unrelated third parties and rebranded by us. We have no expenditures or expenses relating to research and development of our products for our last two fiscal years. We leverage on the smart partnerships model that we have formed, collaborating with our customers and clients to understand the health and wellness market via a process of consultative review. We then communicate our findings and proposals to third-party suppliers to improve formulations, to bring about new products for customers who are ready to market to end-users. We refer to our approach as “the Power of 3”, which we take great pride in. In the future, we will explore sourcing from third party manufacturers located in Australia, the United States, Germany and Malaysia.

 

As of December 31, 2019, June 30, 2019, and December 31, 2018, our accumulated deficit was $1,089,209, $750,278 and $373,082 respectively. Our stockholders’ equity was $4,251,286, $4,580,353 and $4,956,334, respectively. We have generated $429,362 in revenue for the six months ended December 31, 2019.

 

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Results of Operation

 

For the six months ended December 31, 2019 and 2018

 

Revenue

 

The Company generated revenue of $429,362 for the six months ended December 31, 2019 as compared to $685,288 for the six months ended December 31, 2018. The revenues were mainly derived from the sale of health and wellness products. The decrease in revenue mainly due to lower demand from our related party customer, whom spend less marketing effort to promote its products during the six months ended December 31, 2019 as compared to the same period in 2018.

 

Cost of Revenue

 

Cost of revenue for the six months ended December 31, 2019 amounted to $383,479 as compared to $619,355 for the six months ended December 31, 2018. The costs were predominantly cost of goods and packing materials. The decrease in cost of revenue was in line with the decease of revenues for the six months ended December 31, 2019 as compared to the same period in 2018.

 

Gross Profit

 

Gross profit for the six months ended December 31, 2019 amounted to $45,883 as compared to $65,933 for the six months ended December 31, 2018. Gross margin for the six months ended December 31, 2019 was approximately 10.7% as compared to approximately 9.6% for the six months ended December 31, 2018. The slightly increase of gross margin was mainly due to the slight increase of our selling price of our health and wellness products.

 

Operating Expenses

 

Selling, general and administrative (“SG&A”) expenses for the six months ended December 31, 2019 amounted to $312,270 as compared to $63,068 for the six months ended December 31, 2018. The amount mainly comprised of rental of office premises, travelling, licensing and professional fees which includes legal, audit, accounting and consulting services. The increase of SG&A expenses of approximately $249,000 or 395.1% are mainly due to the increase of professional fees of approximately $200,000 as we have recently hired new professional firm located in the U.S. and Hong Kong, including legal counsel, auditor, and financial reporting consultant, to strengthen our current Securities and Exchange Commission (“SEC”) listing reporting documents and continue to stay compliance as compared to the six months ended December 31, 2018, we were using local professional firms in Malaysia. Professional fee incurred by the U.S. and Hong Kong firms are generally higher than the professional fee incurred by the Malaysia firms. The increase of SG&A was also due to the increase of approximately $32,000 of travelling expenses for our CEO for potential business developments.

 

Other Income (Expenses)

 

For the six months ended December 31, 2019, we recorded an amount of $72,544 as other expenses, net as compared to $138,346 for the six months ended December 31, 2018. During the six months ended December 31, 2019, we recorded approximately $68,000 on unrealized holding loss on marketable securities upon the adoption of ASU 2016-01 on July 1, 2019. The net other expenses of $138,346 incurred during the six months ended December 31, 2018 comprised interest income of $43,000 and net foreign currency translation losses of $83,000 and approximately $98,000 on share of results of investee company from our equity investment.

 

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Net Loss

 

The Company sustained net loss of $338,931 and $142,446 for the six months ended December 31, 2019 and 2018 respectively. The losses sustained from both of the financial periods were predominantly due to reasons as discussed above.

 

For the years ended June 30, 2019 and 2018

 

Revenues

 

The Company generated revenue of $1,546,057 for the year ended June 30, 2019 as compared to $487,005 for the year ended June 30, 2018. The revenue is mainly derived from the sale of health and wellness products. The increase in revenue mainly due to higher demand from our related party customer as the overall national economy in Malaysia has improved. The end users of our products, who purchase the products from our related party, has more to spend and increased their demand of using our health and wellness products during the year ended June 30, 2019 as compared to the same period in 2018. As a result, our related party has purchased more products from us.

 

Cost of Revenue

 

Cost of revenue for the year ended June 30, 2019 amounted to $1,436,705 as compared to $441,409 for the year ended June 30, 2018. The cost mainly consists of cost of goods and packing materials. The increase in cost of revenue was in line with the increase of revenues for the year ended June 30, 2019 as compared to the same period in 2018.

 

Gross Profit

 

Gross profit for the year ended June 30, 2019 amounted to $109,352 as compared to $45,596 for the year ended June 30, 2018. Gross margin for the year ended June 30, 2019 was approximately 7.1% as compared to approximately 9.4% for the year ended Jun 30, 2018. The decrease of gross margin was mainly due to the increased of freight in cost of the product labels that we specifically ordered from Taiwan and sent to our manufacturing vendors in the U.S., Germany and Australia during the year ended June 30, 2019.

 

Operating Expenses

 

Selling, general and administrative (“SG&A”) expenses for the year ended June 30, 2019 amounted to $240,522 as compared to $279,682 for the year ended June 30, 2018. The amount mainly comprised of rental of office premises, travelling, licensing and professional fees which includes legal, audit, accounting and consulting services. The decrease of SG&A expenses of approximately $39,000 or 14.0% are mainly due to the decrease of professional fees as we have incurred more professional fees during the year ended June 30, 2018 throughout the initial public offerings (“IPO”) stage from July 1, 2017 until the completion of IPO in March 2018 as compared to the year ended June 30, 2019, our professional fee was mainly incurred from regularly SEC compliance and reporting fee.

 

Other Income (Expenses)

 

For the year ended June 30, 2019, we recorded an amount of $388,472 as other expense, net as compared to $109,146 of other income, net generated. During the year ended June 30, 2019, we recorded an impairment loss in investments of approximately $367,000 and approximately $124,000 equity investment loss on share from the investee company offset by approximately $86,000 of foreign currency translation gains. During the year ended June 30, 2018, we mainly derived our other income from the interest income earned through the time deposits placed with banks of approximately $139,000 offset by the share of results of investee company of approximately $30,000.

 

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Net Loss

 

The Company incurred net loss of $519,642 and $130,274 for the years ended June 30, 2019 and 2018, respectively. The losses sustained from both of the financial periods were predominantly due to reasons as discussed above.

 

Liquidity and Capital Resources

 

The World Health Organization or WHO, has since March 11, 2020 declared the corona virus or COVID-19 a pandemic. Malaysia, where our products are mainly sold at present, reported 553 cases of the COVID-19 on March 16, 2020; and the number is still rising. In view of the seriousness of the matter, the local government of Malaysia had, on the same day, imposed a nationwide lockdown effective March 18, 2020.

 

As the intermediary between our suppliers and our sole customer in Malaysia, the onslaught of the pandemic poses challenges to us at both sourcing and supplying our products. Our sole customer has confirmed that onward delivery of our products is via multi-level marketing or MLM to end users who are also members of the MLM group that make up consistent demand of our products. In an effort to embrace globalization, the MLM group has also embarked on e-commerce. The MLM group has synched up with a Malaysian e-commerce trading platform, which will make its debut in the next three months to commence e-marketing and e-trading of its products to members, as well as online e-recruitment of new members. The MLM group is positive that its online e-recruitment service which capitalizes on a large number of followers of well-known key products influencers will dramatically increase the number of members most expediently with minimal cost, thereby increasing demand of our products. Considering our products are health supplements, we also expect impressive demand growth at a time when everyone’s health is at risk. This should translate into sustainable growth once awareness of the importance of health is created. In term of collectability of our accounts receivable from our sole customer, an entity in which our President and CEO has significant influence and is financially healthy, we believe the financial effect of our collection from our sole customer will not be impacted.

 

Although some of the countries from which our products are sourced are experiencing lockdowns, industries involve in the provision of food especially health products and pharmaceuticals are normally exempted. We may experience slight delay in products delivery lead time but barring unforeseen circumstances, the setback should be temporary.

 

We anticipate operating primarily in Malaysia and expanding into the Asian markets in the future, with a particular focus, at least initially, on expanding into Thailand, Indonesia and Taiwan. We will explore expansion via e-commerce. When the pandemic has subsided or is over and restrictions on travelling between nations are uplifted, we will set up offices in the countries in which we operate to better service our customers.

 

Because of the uncertainty surrounding the COVID-19 outbreak, the financial impact related to the outbreak of and response to the coronavirus cannot be reasonably estimated at this time. There is no guarantee that our total revenues will grow or remain at the similar level year over year in the next three quarters of 2020. In addition, we may have to record downward adjustments or impairment in the fair value of investments in the first quarter of 2020, if conditions have not been significantly improved and global stock markets have not recovered from recent declines.

 

In assessing our liquidity, we monitor and analyze our cash on-hand and our operating expenditure commitments. Our liquidity needs are to meet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through equity financial from our sales of common stock in March 2018.

 

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As of December 31, 2019, we had working capital of $3,452,665 consisting of cash in bank of $238,937 and time deposit of $2,505,520 as compared to working capital of $3,720,068 consisting of cash in bank of $353,214 and time deposit of $2,504,373 as of June 30, 2019. The revenues, generated from our current business operations will be sufficient to fund our operations. If we make strategic planning to further expand our business in the near future, we will likely require additional capital to further expand our business. The potential expansion may include spending on marketing expenses to expand our marketing channels or acquiring manufacturing companies to reduce our product cost. Sources of additional capital through various financing transactions or arrangements with third parties may include equity or debt financing, bank loans or revolving credit facilities. We may not be successful in locating suitable financing transactions in the time period required or at all, and we may not obtain the capital we require by other means. Our inability to raise additional funds when required may have a negative impact on our business development. We believe we have sufficient cash and cash equivalents to fund our operations 12 months from the report issuance date.

 

The following summarizes the key components of our cash flows for the six months ended December 31, 2019 and 2018 and for the years ended June 30, 2019 and 2018:

 

   For the six months ended   For the years ended 
   December 31, 2019   December 31, 2018   June 30, 2019   June 30, 2018 
       (Unaudited)         
Net cash used in operating activities  $(113,945)  $(76,591)  $(667,064)  $(347,977)
Net cash used in investing activities   -    (1,000)   (2,500)   (1,362,490)
Net cash provided by (used in) financing activities   -    (745)    (5,318)   2,930,267 
Effect of exchange rate on cash and cash equivalents   815    (2)   1,214    (1,293)
Net change in cash and cash equivalents  $(113,130)  $(78,338)  $(673,668)  $1,218,507 

  

Operating activities

 

Net cash used in operating activities for the six months ended December 31, 2019 was $113,945 and mainly comprised of net loss of $338,931, the increase of accounts receivable – related party of $85,602 and the decrease of accounts payable (including related party) of $32,308 offset by the non-cash expense on unrealized holding loss on marketable securities of $68,391, the decrease in prepayments and deposits of $229,638, and the increase in other payables and accrued liabilities of $44,867.

 

Net cash used in operating activities for the six months ended December 31, 2018 was $78,338 and mainly comprised of net loss of $142,466, the increase in prepayments and deposits of $245,128 and the decrease in other payables and accrued liabilities of $11,865 offset by the non-cash expense of share of result of investee company of $98,140 and the increase in customer deposit of $217,743.

 

Net cash used in operating activities for the year ended June 30, 2019 was $667,064 and mainly comprised of net loss of $519,642, the increase in account receivables – related party of $433,338, and the increase of prepayments and deposits of $233,394 offset by the non-cash expense of share of result of investee company of $124,225 and impairment in cost of investments of $366,834, the increase in accounts payable – related party of $35,145 and the increase in other payables and accrued liabilities of $11,825.

 

Net cash used in operating activities for the year ended June 30, 2018 was $347,977 and mainly comprised of net loss of $130,274 and the increase of prepayments and deposits of $264,941 offset by the non-cash expense of share of result of investee company of $30,155 and the increase in other payables and accrued liabilities of $11,749.

 

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Investing activities

 

There were no investing activities for the six months ended December 31, 2019.

 

Net cash used in investing activities for the six months ended December 31, 2018 was $1,000 which is due to the investment in financial assets.

 

Net cash used in investing activities for the year ended June 30, 2019 was $2,500 which is due to the investment in marketable and non-marketable securities.

 

Net cash used in investing activities for the year ended June 30, 2018 was $1,362,490, which consists of $500,000 of investment in marketable securities and $862,490 of investment in investee company.

 

Financing activities

 

There were no financing activities for the six months ended December 31, 2019.

 

Net cash used in financing activities for the six months ended December 31, 2018 was $745 which is due to the repayment to a related party.

 

Net cash used in financing activities for the year ended June 30, 2019 was $5,318 which is due to the repayment to a director.

 

Net cash provided by financing activities for the year ended June 30, 2018 was $2,930,267 which is mainly due to the proceed from sale of common stock of approximately $2.9 million.

 

Credit Facilities

 

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

 

Off-Balance Sheet Arrangements

 

As of December 31, 2019, 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.

 

Critical accounting polices

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for deferred tax assets and uncertain tax position, and impairment of investment in non-marketable securities. Actual results could differ from these estimates.

 

Revenue recognition

 

On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2019. This did not result in an adjustment to the retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations.

 

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The core principle underlying the revenue recognition of this ASU allows the Company to recognize revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products.

 

The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

 

The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection.

 

Prior to July 1, 2019, 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 health and wellness d 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.

 

The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption on July 1, 2019, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition.

 

Sales of Health and Wellness products

 

- Performance obligations satisfied at a point in time

 

On July 1, 2019, the Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods, which is generally similar to when its delivery has occurred prior to July 1, 2019. Such revenues are recognized at a point in time after all performance obligations are satisfied. The revenue is recorded net of estimated discounts and return allowances. Historically, there were no sales return as the Company’s products sold are not refundable, returnable or exchangeable.

 

Fair value of financial instruments

 

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

 

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The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

 

  Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
  Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
  Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.

 

Recent accounting pronouncements

 

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

 

In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

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 is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements.

 

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In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis.

 

For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 due the Company is qualified as an emerging growth company. The Company is currently evaluating the impact of ASU 2019-05 will have on its consolidated financial statements.

 

In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Foreign exchange risk. Substantially most of our revenues are denominated in the U.S. dollar while most of our expenses are denominated in Malaysian Ringgit and Hong Kong Dollar. We do not believe that we currently have any significant direct foreign exchange risk and have not hedged exposures denominated in foreign currencies or any other derivative financial instruments. Although in general, our exposure to foreign exchange risks should be limited, the value of an investment in our Common Stock may be affected by the foreign exchange rate between U.S. dollar and Malaysian Ringgit; and U.S. dollar and Hong Kong Dollar because the value of our business is effectively denominated in Malaysian Ringgit and Hong Kong Dollar, while the Common Stock is traded in U.S. dollars.

 

Credit risk. Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

 

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The financial statements required by this item are located in PART IV of this Annual Report.

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None.

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures

 

Disclosures Control and Procedures

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

 

  Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
     
  Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
     
  Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

 

As of December 31, 2019, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on such evaluation, the Company’s management concluded that, during the period covered by this Report, internal controls and procedures over financial reporting were not effective. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

 

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Identified Material Weakness

 

A material weakness in internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.

 

Management identified the following material weakness during its assessment of internal controls over financial reporting as of December 31, 2019. (1) The Company did not have sufficient full-time personnel with appropriate levels of accounting knowledge and experience to monitor the daily recording of transactions, address complex U.S. GAAP accounting issues and to prepare and review financial statements and related disclosures under U.S. GAAP. (2) Lack of a functional internal audit department or personnel that monitors the consistencies of the preventive internal control procedures; lack of adequate policies and procedures in internal audit function to ensure that the Company’s policies and procedures have been carried out as planned. (3) We do not have adequate segregation of duties and effective risk assessment. Lack of segregation of duties and effective risk assessment may cause the Company to face the likelihood of fraud or theft, due to poor oversight, governance and review to detect errors.

 

Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.

 

As a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2019 based on criteria established in Internal Control—Integrated Framework issued by COSO.

 

Management’s Remediation Initiatives

 

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we will prepare written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines, to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity and debt transactions.

 

We plan to initiate the following series of measures to further strengthen the Company’s internal controls going forward:

 

1. We intend to engage an external consulting firm to supplement our efforts to the implementation of the 2013 Committee of Sponsoring Organizations of the Treadway Commission, or COSO, framework for internal controls.
   
2. We intend to establish an internal audit function with assessment of Sarbanes-Oxley compliance requirements and improvement of overall internal control.
   
3. Once we hire additional employees, we intend to initiate a comprehensive program and development plan to provide ongoing company-wide trainings regarding internal control, with particular emphasis on our accounting staff.

 

We anticipate that these initiatives will be at least partially, if not fully, implemented by the end of fiscal year 2020.

 

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Changes in internal controls over financial reporting

 

There were no significant changes in our internal controls over financial reporting that occurred during the period covered by this Report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting:

 

This annual report does not include an attestation report of the Company’s registered independent public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered independent public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report on Form 10-K.

 

ITEM 9B. OTHER INFORMATION

 

None.

 

42

 

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Our executive officer’s and director’s and their respective ages as of the date hereof are as follows:

 

NAME   AGE   POSITION
How Kok Choong   56   Chief Executive Officer, President, Secretary, Treasurer, Director

 

Set forth below is a brief description of the background and business experience of our executive officer and director for the past five years.

 

How Kok Choong - President, Chief Executive Officer, Secretary, Treasurer, Director

 

Mr. How Kok Choong earned a Master and Doctorate in Business Administrative from Newport University, USA. In 2004 Mr. How began to work as Global President of AGAPE Superior Living International Group, and continues to hold this position. AGAPE Superior Living International Group is a leading health and wellness company in nine countries. Additionally, from 2010 to present Mr. How has served as President of TH3 Holdings Sdn Bhd, a company specialized in IT, academics, online education, mobile Apps, e-Commerce and digital marketing.

 

In Malaysia, Mr. How received the Outstanding Asian Community Contribution Award in 2011, Malaysia Top Team 50 Enterprise Award in 2011, The Contributor Award (Medical and Health Research) in 2012, “Man of The Year” in Worldwide Excellence Award in 2015, “Man of The Year” in McMillan Global Award in 2016 and The Distinguished Asia Pacific Outstanding Entrepreneur Lifetime Achievement Award in 2019.

 

Mr. How’s strong academic background and business experience and numerous qualifications have led the Board of Directors to reach the conclusion that he should serve as our Chief Executive Officer and Director of the Company.

 

Corporate Governance

 

The Company promotes accountability for adherence to honest and ethical conduct; endeavors to provide full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with the Securities and Exchange Commission (the “SEC”) and in other public communications made by the Company; and strives to be compliant with applicable governmental laws, rules and regulations. The Company has not formally adopted a written code of business conduct and ethics that governs the Company’s employees, officers and Directors as the Company is not required to do so.

 

In lieu of an Audit Committee, the Company’s Board of Directors, is responsible for reviewing and making recommendations concerning the selection of outside auditors, reviewing the scope, results and effectiveness of the annual audit of the Company’s financial statements and other services provided by the Company’s independent public accountants. The Board of Directors and the Chief Executive Officer of the Company review the Company’s internal accounting controls, practices and policies with advice from third party consultants.

 

Committees of the Board

 

Our Company currently does not have nominating, compensation, or audit committees or committees performing similar functions nor does our Company have a written nominating, compensation or audit committee charter.

 

43

 

 

Audit Committee Financial Expert

 

Our Board of Directors has determined that we do not have a board member that qualifies as an “audit committee financial expert” as defined in Item 407(D)(5) of Regulation S-K, nor do we have a Board member that qualifies as “independent” as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(14) of the FINRA Rules.

 

In order to maintain good corporate governance and in view of the Company’s planned expansion, the Company plans to establish a full board comprising the nominating, compensation, and audit committees during the year.

 

Involvement in Certain Legal Proceedings

 

Our Directors and our Executive officers have not been involved in any of the following events during the past ten years:

 

1. Bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
3. Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his/her involvement in any type of business, securities or banking activities; or
4. Being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.
5. Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
6. Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;
7. Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

 

  (i) Any Federal or State securities or commodities law or regulation; or
  (ii) Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or
  (iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity;

 

8. Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

 

44

 

 

Code of Ethics

 

We have not adopted a formal Code of Ethics. The Board of Directors evaluated the business of the Company and the number of employees and determined that since the business is operated by a small number of persons, general rules of fiduciary duty and federal and state criminal, business conduct and securities laws are adequate ethical guidelines. In the event our operations, employees and/or Directors expand in the future, we may take actions to adopt a formal Code of Ethics.

 

Shareholder Proposals

 

Our Company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for Directors. The Board of Directors believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our Company does not currently have any specific or minimum criteria for the election of nominees to the Board of Directors and we do not have any specific process or procedure for evaluating such nominees. The Board of Directors will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.

 

A shareholder who wishes to communicate with our Board of Directors may do so by directing a written request addressed to our President, at the address appearing on the first page of this Information Statement.

 

ITEM 11. EXECUTIVE COMPENSATION

 

Mr. How Kok Choong, the Chief Executive Officer, President, Secretary, Treasurer, Director of the Group had not received nor drawn any (i) Salary; (ii) Bonus; (iii) Stock compensation; (iv) Option awards, (v) Non-equity incentive plan compensation, (vi) Non-qualified deferred compensation earnings and (vii) Any other compensations in the last two fiscal years.

 

Summary of Compensation

 

Stock Option Grants

 

We have not granted any stock options to our executive officers since our incorporation.

 

Employment Agreements

 

We do not have an employment or consulting agreement with any officers or Directors.

 

Compensation Discussion and Analysis

 

Director Compensation

 

Our Board of Directors does not currently receive any consideration for their services as members of the Board of Directors. The Board of Directors reserves the right in the future to award the members of the Board of Directors cash or stock-based consideration for their services to the Company, which awards, if granted shall be in the sole determination of the Board of Directors.

 

45

 

 

Executive Compensation Philosophy

 

Our Board of Directors determines the compensation given to our executive officers in their sole determination. Our Board of Directors reserves the right to pay our executive or any future executives a salary, and/or issue them shares of common stock in consideration for services rendered and/or to award incentive bonuses which are linked to our performance, as well as to the individual executive officer’s performance. This package may also include long-term stock-based compensation to certain executives, which is intended to align the performance of our executives with our long-term business strategies. Additionally, while our Board of Directors has not granted any performance base stock options to date, the Board of Directors reserves the right to grant such options in the future, if the Board in its sole determination believes such grants would be in the best interests of the Company.

 

Incentive Bonus

 

The Board of Directors may grant incentive bonuses to our executive officer and/or future executive officers in its sole discretion, if the Board of Directors believes such bonuses are in the Company’s best interest, after analyzing our current business objectives and growth, if any, and the amount of revenue we are able to generate each month, which revenue is a direct result of the actions and ability of such executives.

 

Long-term, Stock Based Compensation

 

In order to attract, retain and motivate executive talent necessary to support the Company’s long-term business strategy we may award our executive and any future executives with long-term, stock-based compensation in the future, at the sole discretion of our Board of Directors, which we do not currently have any immediate plans to award.

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

As of December 31, 2019, the Company has 376,275,500 shares of common stock issued and outstanding, which number of issued and outstanding shares of common stock have been used throughout this report.

 

Name and Address of Beneficial
Owner
  Shares of Common Stock Beneficially Owned   Common Stock Voting Percentage Beneficially Owned   Voting Shares of Preferred Stock   Preferred Stock Voting Percentage Beneficially Owned   Total
Voting Percentage Beneficially Owned
 
Executive Officers and Directors                         
How Kok Choong, President, Chief Executive Officer, Secretary, Treasurer and Director; collectively this includes HKC Holdings Sdn. Bhd.*   254,429,000    67.62%   none    n/a    67.62%
5% Shareholders                         
-   -    -    -    -    - 

 

*HKC Holdings Sdn. Bhd. is owned and controlled by How Kok Choong who is our sole officer and director.

 

46

 

 

Beneficial ownership has been determined in accordance with Rule 13d-3 under the Exchange Act. Under this rule, certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire shares (for example, upon exercise of an option or warrant) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares is deemed to include the amount of shares beneficially owned by such person by reason of such acquisition rights. As a result, the percentage of outstanding shares of any person as shown in the following table does not necessarily reflect the person’s actual voting power at any particular date.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE

 

On June 1, 2016, Mr. How Kok Choong was appointed as CEO, President, Secretary, Treasurer and a member of our Board of Directors. Additionally, on June 1, 2016, the Company issued 100,000 shares of restricted common stock, each with a par value of $0.0001 per share, to Mr. How Kok Choong for initial working capital of $10.

 

On April 5, 2017, the Company acquired Agape ATP Corporation, a company incorporated in Labuan, Malaysia.

 

On April 10, 2017, the Company issued 245,000,000 and 70,000,000 shares of restricted common stock to Mr. How Kok Choong and HKC Holdings Sdn Bhd respectively, each with a par value of $0.0001 per share, for total additional working capital of $31,500.

 

*HKC Holdings Sdn. Bhd. is owned and controlled by How Kok Choong who is our sole officer and director. As such, HKC Holdings Sdn Bhd is regarded a related party.

 

With regards to all of the above transactions we claim an exemption from registration afforded by Section 4a(2) and/or Regulation S of the Securities Act of 1933, as amended (“Regulation S”) due to the fact that all sales of stock were made to non-U.S. persons (as defined under Rule 902 section (k)(2)(i) of Regulation S), pursuant to offshore transactions, and no directed selling efforts were made in the United States by the issuer, a distributor, any of their respective affiliates, or any person acting on behalf of any of the foregoing.

 

Related Party Transactions

 

The Company’s related party list and relationship are as follows:

 

Related parties   Relationships
     
Agape S.E.A. Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd
     
Agape Superior Living Pty Ltd   Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd
     
Agape Superior Living Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd
     
Agape ATP (Asia) Limited   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited.

 

47

 

 

Related parties   Relationships
     
Greenpro Capital Corp.  

Greenpro Capital Corp., through its wholly owned subsidiaries (collectively “Greenpro”), is an approximately 4.7% shareholder in the Company. Greenpro Venture Capital Limited is owned by Greenpro Capital Corp. The controlling shareholders of Greenpro Capital Corp. are Mr. Lee Chong Kuang and Mr. Loke Che Chan.

 

Mr. How Kok Choong, the CEO and director of the Company is also the director of Greenpro Capital Corp. Mr. How Kok Choong ceased to be the director of Greenpro Capital Corp. in November 2018.

 

Related party transactions as of and for six months ended December 31, 2019 and 2018 are as per table below:

 

   For the six months ended   As of 
   December 31, 2019   December 31, 2018   December 31, 2019   December 31, 2018 
        (Unaudited)       (Unaudited) 
   Revenue   Accounts Receivable, Trade 
                     
Agape S.E.A. Sdn Bhd  $429,362   $685,288   $520,786   $                - 

 

   Professional fee   Accounts Payable, Non-trade 
                      
Greenpro Capital Corp.  $        -   $4,500   $          -   $         - 

 

   Expenses paid on behalf   Amount due from a related party 
                      
Agape ATP (Asia) Limited  $       -   $       -   $2,217   $        - 

 

Related party transactions as of and for years ended June 30, 2019 and 2018 are as per table below:

 

   Years ended   As of 
   June 30, 2019   June 30, 2018   June 30, 2019 
   Revenue  

Accounts
Receivable, Trade

 
Agape S.E.A. Sdn Bhd  $1,524,596   $487,005   $433,338 
Agape Superior Living Pty Ltd   21,461    -    - 
Total  $1,546,057   $487,005   $433,338 

 

   Professional fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $12,000   $214,883   $         - 

 

   Company Secretarial fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $3,282   $292   $       - 

 

48

 

 

   License fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $1,509   $-   $         - 

 

   Incorporation fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $-   $1,419   $           - 

 

   Expenses paid on behalf  

Amount due from

A related party

 
Agape Superior Living Sdn Bhd  $      -   $745   $     - 

 

   Expenses paid on behalf  

Amount due from

A related party

 
Agape ATP (Asia) limited  $2,210   $          -   $2,210 

 

   Sundry purchases  

Accounts Payable,

Non-trade

 
Agape Superior Living Pty Ltd  $35,145   $          -   $35,145 

 

In addition, as of December 31, 2019, June 30, 2019 and December 31, 2018, our Director, Mr. How Kok Choong, advanced $3,952, $3,938 and $3,921, respectively to the Company, which is unsecured, interest-free with no fixed repayment term, for working capital purpose. Imputed interest is considered insignificant.

 

* How Kok Choong has acted as the sole promoter of the Company since inception. He has not been provided any form of compensation as of the date of this registration statement.

 

Review, Approval and Ratification of Related Party Transactions

 

Given our small size and limited financial resources, we have not adopted formal policies and procedures for the review, approval or ratification of transactions, such as those described above, with our executive officer(s), Director(s) and significant stockholders. We intend to establish formal policies and procedures in the future, once we have sufficient resources and have appointed additional Directors, so that such transactions will be subject to the review, approval or ratification of our Board of Directors, or an appropriate committee thereof. Until formal policies and procedures are put in place, our Directors will continue to approve any related party transaction.

 

49

 

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

Total Asia Associates PLT was our independent auditor for the quarter ended September 30, 2019 and for the years ended June 30, 2019 and 2018 and incurred audit fees in the total of $2,500, $23,000, and $25,000, respectively. Friedman LLP is our independent auditor for the six months ended December 31, 2019 and incurred audit fees in the total of $80,000.

 

Below is the aggregate amount of fees billed for professional services rendered by our principal accountants with respect to our last two fiscal years.

 

   For the six months ended   For the years ended 
   December 31, 2019   December 31, 2018   June 30, 2019   June 30, 2018 
                     
Audit fees  $82,500   $6,000   $23,000   $25,000 

 

The category of “Audit fees” includes fees for our annual audit, quarterly reviews and services rendered in connection with regulatory filings with the SEC, such as the issuance of comfort letters and consents.

 

The category of “Audit-related fees” includes employee benefit plan audits, internal control reviews and accounting consultation.

 

All of the professional services rendered by principal accountants for the audit of our annual financial statements that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for last two fiscal years were approved by our board of directors.

 

50

 

 

PART IV

 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

(a) Financial Statements

 

The following are filed as part of this report:

 

Financial Statements

 

The following financial statements of AGAPE ATP Corporation. and Report of Independent Registered Public Accounting Firm are presented in the “F” pages of this Report:

 

  Page
   
Index F-1
   
Reports of Independent Registered Public Accounting Firms F-2 - F-3
   
Financial Statements  
   
Consolidated Balance Sheets F- 4
 
Consolidated Statements of Operations and Comprehensive Loss F-5
   
Consolidated Statements of Changes in Stockholders’ Equity F-6
   
Consolidated Statements of Cash Flows F-7
   
Notes to Consolidated Financial Statements F-8 – F-27

 

(b) Exhibits

 

The following exhibits are filed or “furnished” herewith:

 

3.1 Articles of Incorporation**
   
3.2

Bylaws**

   
31.1 Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer and principal financial officer*
   
32.1 Section 1350 Certification of principal executive officer and principal financial officer*

 

* Filed herewith.

 

** As filed in the Registrant’s Registration Statement on Form S-1 Amendment No.8 (File No. 333-220144) on October 26, 2017.

 

51

 

 

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: March 27, 2020    
     
  By: /s/ How Kok Choong
  Title: Chief Executive Officer, President, Secretary, Treasurer, Director
   

Principal Executive Officer

Principal Financial Officer

Principal Accounting Officer

 

52

 

 

INDEX TO FINANCIAL STATEMENTS

 

  Page
Financial Statements  
   
Reports of Independent Registered Public Accounting Firm F-2 - F-3
   
Consolidated Balance Sheets F-4
   
Consolidated Statements of Operations and Comprehensive Loss F-5
   
Consolidated Statements of Changes in Stockholders’ Equity F-6
   
Consolidated Statements of Cash Flows F-7
   
Notes to Consolidated Financial Statements F-8 - F-27

 

F-1

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and

Stockholders of Agape ATP Corporation

 

Opinion on the Consolidated Financial Statements

 

We have audited the accompanying consolidated balance sheet of Agape ATP Corporation (the “Company”) as of December 31, 2019, and the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity and cash flows for the six-month period ended December 31, 2019, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019, and the results of its operations and its cash flows for the six-month period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provide a reasonable basis for our opinion.

 

/s/ Friedman LLP

 

We have served as the Company’s auditor since 2019

 

New York, New York

March 27, 2020

 

 

F-2

 

 

TOTAL ASIA ASSOCIATES PLT

(AF002128 & LLP0016837-LCA)

A Firm registered with US PCAOB and Malaysian MIA

 

Block C-3-1, Megan Avenue 1, 189, Off Jalan Tun Razak,

50400, Kuala Lumpur.

Tel: (603) 2733 9989

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Shareholders and Board of Directors of Agape ATP Corporation

 

1705 - 1708, Level 17,

Tower 2, Faber Towers,

Jalan Desa Bahagia, Taman Desa,
58100 Kuala Lumpur, Malaysia

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of Agape ATP Corporation (the ‘Company’) as of June 30, 2019 and 2018, and the related consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows each of the year ended 2019 and 2018, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2019 and 2018, and the results of its operations and its cash flows each of the years ended 2019 and 2018, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ TOTAL ASIA ASSOCIATES PLT  
TOTAL ASIA ASSOCIATES PLT  

 

We have served as the Company’s auditor since 2018.

Kuala Lumpur, Malaysia

September 10, 2019

 

F-3

 

 

AGAPE ATP CORPORATION

CONSOLIDATED BALANCE SHEETS

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

 

   December 31,   June 30,   December 31, 
   2019   2019   2018 
           (Unaudited) 
ASSETS               
CURRENT ASSETS               
Cash and cash equivalents  $2,744,457   $2,857,587   $3,452,917 
Accounts receivable – related party   520,786    433,338               - 
Amount due from a related party   2,217    2,210               - 
Prepayments and deposits   269,193    498,335    510,069 
Total Current Assets   3,536,653    3,791,470    3,962,986 
                
OTHER ASSETS               
Investment in investee company   -    -    734,195 
Investment in marketable securities   66,484    134,166    501,000 
Investment in non-marketable securities   732,137    726,119    - 
Total other assets   798,621    860,285    1,235,195 
                
TOTAL ASSETS  $4,335,274   $4,651,755   $5,198,181 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY               
CURRENT LIABILITIES               
Accounts payable  $2,790   $-   $- 
Accounts payable – related party   -    35,145    - 
Customer deposits   -    -    217,743 
Income tax payable   -    -    12,299 
Other payables and accrued liabilities   77,246    32,319    7,884 
Amount due to a director   3,952    3,938    3,921 
Total Current Liabilities   83,988    71,402    241,847 
                
TOTAL LIABILITIES   83,988    71,402    241,847 
                
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 issued and outstanding as of December 31, 2019, June 30, 2019 and December 31, 2018   37,628    37,628    37,628 
Additional paid in capital   5,293,082    5,293,082    5,293,082 
Accumulated deficit   (1,089,209)   (750,278)   (373,082)
Accumulated other comprehensive loss   9,785    (79)   (1,294)
TOTAL STOCKHOLDERS’ EQUITY   4,251,286    4,580,353    4,956,334 
                
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $4,335,274   $4,651,755   $5,198,181 

 

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

 

F-4

 

 

AGAPE ATP CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

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

 

   For the six months ended   For the years ended 
   December 31,   June 30, 
   2019   2018   2019   2018 
       (Unaudited)         
                 
REVENUE – RELATED PARTY  $429,362   $685,288   $1,546,057   $487,005 
                     
COST OF REVENUE   (383,479)   (619,355)   (1,436,705)   (441,409)
                     
GROSS PROFIT   45,883    65,933    109,352    45,596 
                     
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES
   (312,270)   (63,068)   (240,522)   (279,682)
                     
INCOME (LOSS) FROM OPERATIONS   (266,387)   2,865    (131,170)   (234,086)
                     
OTHER INCOME/(EXPENSES)                    
Other Income/(Expenses), Net   (4,153)   (40,206)   86,078    139,301 
Loss from equity investment   -    (98,140)   (124,225)   (30,155)
Unrealized holding loss on marketable securities   (68,391)   -    -    - 
Gain on deemed disposal of shares in Investee Company   -    -    16,509    - 
Impairment loss in equity investment   -    -    (366,834)   - 
TOTAL OTHER INCOME/(EXPENSES), NET   (72,544)   (138,346)   (388,472)   109,146 
                     
NET LOSS BEFORE INCOME TAXES   (338,931)   (135,481)   (519,642)   (124,940)
                     
PROVISION FOR INCOME TAXES   -    (6,965)   -    (5,334)
                     
NET LOSS   (338,931)   (142,446)   (519,642)   (130,274)
                     
OTHER COMPREHENSIVE INCOME (LOSS)                    
Foreign currency translation adjustment   9,864    (1)   1,214    (1,293)
                     
COMPREHENSIVE LOSS  $(329,067)  $(142,447)  $(518,428)  $(131,567)
                     
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    376,275,500    376,275,500    373,017,955 

 

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

 

F-5

 

 

AGAPE ATP CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

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

 

   COMMON STOCK   ADDITIONAL       ACCUMULATED OTHER   TOTAL 
   Number of shares   Par value  

PAID IN

CAPITAL

   ACCUMULATED DEFICIT  

COMPREHENSIVE

INCOME (LOSS)

   STOCKHOLDERS’ EQUITY 
Balance as of June 30, 2017   371,350,000   $37,135   $2,367,875   $(100,362)  $        -   $2,304,648 
Net loss          -           -            -    (130,274)           -    (130,274)
IPO completed on March 9, 2018 at $1.00 per share   2,925,500    293    2,925,207         -     -    2,925,500 
Shares issued to Adam, Network 1 and Damon completed on April 16, 2018 at $0.0001 per share   2,000,000    200             -            -              -    200 
Foreign currency translation adjustment         -           -            -            -    (1,293)   (1,293)
Balance as of June 30, 2018   376,275,500   $37,628   $5,293,082   $(230,636)  $(1,293)  $5,098,781 
Net loss         -          -           -    (142,446)            -    (142,446)
Foreign currency translation adjustment         -          -           -            -    (1)   (1)
Balance as of December 31, 2018 (unaudited)   376,275,500   $37,628   $5,293,082   $(373,082)  $(1,294)  $4,956,334 
Net loss   -    -    -    (377,196)   -    (377,196)
Foreign currency translation adjustment   -    -    -    -    1,215    1,215 
Balance as of June 30, 2019   376,275,500   $37,628   $5,293,082   $(750,278)  $(79)  $4,580,353 
Net loss   -    -    -    (338,931)   -    (338,931)
Foreign currency translation adjustment   -    -    -    -    9,864    9,864 
Balance as of December 31, 2019   376,275,500   $37,628   $5,293,082   $(1,089,209)  $9,785   $4,251,286 

 

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

 

F-6

 

 

AGAPE ATP CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Currency expressed in United States Dollars (“US$”)

 

   For the six months ended
December 31,
  

For the years ended

June 30,

 
   2019   2018   2019   2018 
       (Unaudited)         
CASH FLOWS FROM OPERATING ACTIVITIES:                    
Net loss  $(338,931)  $(142,446)  $(519,642)  $(130,274)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:                    
Loss from equity investment   -    98,140    124,225    30,155 
Unrealized holding loss on marketable securities   68,391    -    -    - 
Gain on deemed disposal of shares in Investee Company   -    -    (16,509)   - 
Impairment in cost of investment   -    -    366,834    - 
Deferred tax expenses   -    -    -    5,334 
Changes in operating assets and liabilities:                    
Accounts receivable – related party   (85,602)   -    (433,338)   - 
Amount due from a related party   -    -    (2,210)   - 
Prepayments and deposits   229,638    (245,128)   (233,394)   (264,941)
Accounts payable   2,778    -    -    - 
Accounts payable – related party   (35,086)   -    35,145    - 
Customer deposits   -    217,743    -    - 
Income taxes payable   -    6,965    -    - 
Other payables and accrued liabilities   44,867    (11,865)   11,825    11,749 
Net cash used in operating activities   (113,945)   (76,591)   (667,064)   (347,977)
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Investment in Investee Company   -    -    -    (862,490)
Investment in marketable securities   -    (1,000)   (1,000)   (500,000)
Investment in non-marketable securities   -    -    (1,500)   - 
Net cash used in investing activities   -    (1,000)   (2,500)   (1,362,490)
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Increase in share capital   -    -    -    493 
Proceeds from sale of common stock   -    -    -    2,925,207 
Amount due to a related party   -    (745)   -    745 
Amount due to a director   -    -    (5,318)   3,822 
Net cash (used in) provided by financing activities   -    (745)   (5,318)   2,930,267 
                     
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS   815    (2)   1,214    (1,293)
                     
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS   (113,130)   (78,338)   (673,668)   1,218,507 
                     
CASH AND CASH EQUIVALENTS, beginning of period   2,857,587    3,531,255    3,531,255    2,312,748 
                     
CASH AND CASH EQUIVALENTS, end of period  $2,744,457   $3,452,917   $2,857,587   $3,531,255 
                     
SUPPLEMENTAL CASH FLOWS INFORMATION                    
Income taxes paid  $-   $-   $-   $- 
Interest paid  $-   $-   $-   $- 
                     
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES                    
Amount transferred from investment in investee company to investment in non-marketable securities  $-   $-   $724,619   $- 

 

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

 

F-7

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

1. ORGANIZATION AND BUSINESS BACKGROUND

 

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 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 provide health and wellness products and advisory services to the public. 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.

 

Details of the Company’s subsidiaries:

 

  

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
  100 shares of ordinary share of US$1 each  Investment holding   100 %
                   
2.   Agape ATP International Holding Limited   Hong Kong,
June 1, 2017
  1,000,000 shares of ordinary share of HK$1 each
  Health and wellness products and health solution advisory services   100 %

 

Business Overview

 

Agape ATP Corporation is a company that provides health solution advisory services to our clients. We primarily focus our efforts on attracting customers in Malaysia. Our advisory services center on the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition and advice from skilled nutritionists and/or 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. As a strong advocator of “beauty from within”, our program shall emphasize 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.

 

F-8

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

The ATP Zeta Super Health Program consists of eight products. None of these products are owned or produced by Agape ATP Corporation. In the event that any of these products are no longer produced, or are otherwise unavailable, we may have to devote significant effort to identifying and obtaining comparable replacement products. The ten products that comprise the ATP Zeta Super Health Program are ATP1s Survivor Select, ATP2 Energized Mineral Concentrate, ATP3 Ionized Cal-Mag, ATP4 Omega Blend, ATP5 BetaMaxx, AGN-Vege Fruit Fiber, AGP1-Iron and YFA-Young Formula.

 

At present, our products are mainly sold in Malaysia, and due to the contents and combination of the main ingredients in the products they are categorized as health food rather than medicines or drugs. As such, all products require authorization from the Food and Quality Division of Ministry of Health according to the Food Act of 1983 and Food Regulation 1985 in order to be sold in the country. All of the products in the ATP Zeta Super Health Program have obtained the appropriate authorizations.

 

As part of a continuous effort to increase market share of the health and wellness industry that is growing at an exponential rate, we will also evaluate adding additional products to the ATP Zeta Super Health Program; and considering the potential of the synergies between the health and beauty sectors, we will further involve ourselves in the topical approach of skin and hair regime.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes.

 

Basis of presentation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

 

Change of year end

 

As of December 31, 2019, the Company changed its fiscal year end from June 30 to December 31. The consolidated financial statements consist of a six-month transition period ended December 31, 2019 and 2018 (unaudited), and the fiscal years ended June 30, 2019 and 2018.

 

Basis of consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

 

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

 

F-9

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for deferred tax assets and uncertain tax position, and impairment of investment in non-marketable securities. Actual results could differ from these estimates.

 

Cash and cash equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less.

 

Accounts receivable – related party

 

Accounts receivable – related party 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. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of December 31, 2019, June 30, 2019 and December 31, 2018, all of the Company’s accounts receivable balance are due from a related party, as a result, no valuation allowance was made.

 

Prepayments and deposits

 

Prepayments and deposits are cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary.

 

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. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares representing 20% to 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or higher to represent significant influence.

 

F-10

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Investment in marketable equity securities

 

Prior to July 1, 2019, marketable securities included in investment in marketable equity securities (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities (non-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.

 

On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Investments in marketable equity securities (non-current) are reported at fair value with changes in fair value recognized in the Company’s consolidated statements of operations and comprehensive loss in the caption of “unrealized holding losses on marketable securities” in each reporting period.

 

Investment in non-marketable equity securities

 

Prior to July 1, 2019, investments in non-marketable equity securities (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.

 

On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Due to the Company’s non-marketable equity securities (non-current) does not qualify for the practical expedient to estimate fair value in accordance with ASC 820-10-35-59, the Company has selected to record its investments in non-marketable equity securities (non-current) at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issue.

 

At each reporting period, the Company will make a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. The qualitative assessment indicators include, but are not limited to: (1) A significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) A significant adverse change in the regulatory, economic, or technological environment of the investee; (iii) A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; (iv) A bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and (v) Factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. If the qualitative assessment indicators indicated that the non-marketable equity securities (non-current) is deemed to be impaired, the Company would recognize the impairment loss equal to the difference between the fair value of the investment and its carrying amount.

 

F-11

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Revenue recognition

 

On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2019. This did not result in an adjustment to retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations.

 

The core principle underlying the revenue recognition of this ASU allows the Company to recognize- revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products.

 

The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

 

The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection.

 

Prior to July 1, 2019, 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 health and wellness 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.

 

The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption on July 1, 2019, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition.

 

F-12

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Sales of Health and Wellness products

 

- Performance obligations satisfied at a point in time

 

On July 1, 2019, the Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods, which is generally similar to when its delivery has occurred prior to July 1, 2019. Such revenues are recognized at a point in time after all performance obligations are satisfied. The revenue is recorded net of estimated discounts and return allowances. Historically, there were no sales return as the Company’s products sold are not refundable, returnable or exchangeable.

 

Disaggregated information of revenues by products are as follows:

 

   For the six months ended   For the years ended 
   December 31, 2019   December 31, 2018   June 30, 2019   June 30, 2018 
       (Unaudited)         
                 
Survivor Select  $-   $204,138   $203,815   $104,656 
Energized Mineral Concentrate   100,270    222,789    361,092    66,573 
Ionized Cal-Mag   -    -    55,731    43,124 
Omega Blend   68,927    97,170    165,999    68,561 
BetaMaxx   67,789    87,793    211,280    126,191 
Iron   -    2,813    2,809    20,270 
Young Formula   -    -    117,480    57,630 
Organic Youth Care Cleansing Bar   17,206    -    17,751    - 
Energetique Hyaluronic Acid Serum   175,170    -    -    - 
Trim+   -    -    198,862    - 
Lipomask   -    70,585    211,238    - 
Total revenues  $429,362   $685,288   $1,546,057   $487,005 

 

Cost of revenue

 

Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers

 

Selling, general and administrative expenses

 

Selling, general and administrative expenses are primarily comprised of rental of office premises, travelling, licensing and professional fees.

 

F-13

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Income taxes

 

The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

 

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax.

 

The Company conducts much of its businesses activities in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities.

 

Comprehensive income (loss)

 

Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

 

Earnings (loss) per share

 

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

 

F-14

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Foreign currencies translation and transaction

 

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$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates is the Malaysian Ringgit (“MYR”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency.

 

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. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

 

Translation of foreign currencies 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,

  

As of and for the year ended
June 30,

 
   2019   2018   2019   2018 
                 
Period-end MYR : US$1 exchange rate   4.09    4.14    4.13    4.03 
Period-average MYR : US$1 exchange rate   4.16    4.13    4.13    4.21 
Period-end HKD : US$1 exchange rate   7.79    7.83    7.81    - 
Period-average HKD : US$1 exchange rate   7.83    7.84    7.84    - 
Period-end AUD : US$1 exchange rate   1.43    -    1.42    - 
Period-average AUD : US$1 exchange rate   1.46    -    1.42    - 

 

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.

 

F-15

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Fair value of financial instruments

 

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

 

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

 

  Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
  Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
  Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.

 

Operating leases

 

A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term.

 

Effective July 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. There is no impact from the adoption of ASC 842 as of July 1, 2019, as the Company did not have any existing leases with a lease term in excess of twelve months on July 1, 2019

 

Recent accounting pronouncements

 

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

 

In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.

 

F-16

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

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 is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements.

 

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 due the Company is qualified as an emerging growth company. The Company is currently evaluating the impact of ASU 2019-05 will have on its consolidated financial statements.

 

F-17

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

 

Reclassification

 

Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassifying $366,834 impairment in cost of investments from selling, general and administrative expenses to other income (expenses) for the year ended June 30, 2019, reclassifying accounts receivable – related party of $78,272 as of June 30, 2019 to be net against other payables and accrued liabilities, and reclassifying cash inflows of $78,272 from changes in other payables and accrued liabilities to accounts receivable – related party for the year ended June 30, 2019. These reclassifications have no effect on the reported revenues, net loss or total assets.

 

3. INVESTMENT IN MARKETABLE SECURITIES

 

  (i) On May 17, 2018, the Company purchased 83,333 shares of common stock in Greenpro Capital Corp. for $500,000 at a purchase price of $6 per share.
     
  (ii) On October 16, 2018, the Company purchased 33,333 shares of common stock in Greenpro Capital Corp. for $1,000 at a purchase price of $0.03 per share.

 

  

As of

December 31, 2019

  

As of

June 30, 2019

  

As of

December 31, 2018

 
              (Unaudited) 
Cost of investment  $134,166   $501,000   $501,000 
Less: Impairment in cost of investment   -    (366,834)   - 
Less: Unrealized holding loss   (68,391)   -    - 
Exchange rate effect   709    -    - 
Investment in marketable securities  $66,484   $134,166   $501,000 

 

F-18

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

4. INVESTMENT IN NON-MARKETABLE SECURITIES

 

The Company invested in Unreserved Sdn Bhd with the investment amount of $863,592 (MYR3,500,000), which approximated 20% of the equity interest of Unreserved Sdn Bhd and is accounted for under the equity method of accounting. On March 10, 2019 Unreserved Sdn Bhd issued additional common stock for working capital. As the Company did not subscribe for the additional common stock, the Company’s equity interest in investee company was diluted from approximately 20.0% to approximately 17.86%. Effective from March 10, 2019, the Company discontinued equity accounting on the investee company. The Company also ceased control over the operations of the investee company on the same date. Accordingly, the investment in investee company was reclassified to investment in non-marketable securities.

 

Unreserved Sdn Bhd is incorporated in Malaysia with 2,500,000 ordinary shares authorized, issued and outstanding. Mr. Lim Hun Soon @ David Lim and Ms. Aniza Helina Akmi Karim are the directors of Unreserved Sdn Bhd. Mr. How Kok Choong was a director of the company from April 30, 2018 to March 27, 2019.

 

On March 2, 2020, the Company agreed to sell the 17.86% ownership interest in Unreserved Sdn Bhd at December 31, 2019 carrying value of $730,637 to Mr. How Kok Choong, the CEO and director of the Company.

 

On April 3, 2019, the Company purchased a 5% of stock or 15,000,000 shares of common stock in Phoenix Plus Corp. for $1,500 at purchase price of $0.0001 per share.

 

Unreserved Sdn Bhd 

As of

December 31, 2019

  

As of

June 30, 2019

  

As of

December 31, 2018

 
              (Unaudited) 
Cost of investment  $-   $832,335   $832,335 
Less: loss of equity of investee company   -    (124,225)   (98,140)
Add: gain on deemed disposal of shares in investee company   -    16,509    - 
Investment in investee company  $-   $724,619   $734,195 
Reclassify to investment in non-marketable securities   -    (724,619)   - 
Investment in investee company  $-   $-   $- 
                
Investment in non-marketable securities  $730,637   $724,619   $- 
                
Phoenix Plus Corporation               
Cost of investment  $1,500   $1,500   $1,500 
                
Total investment in non-marketable securities  $732,137   $726,119   $- 

 

F-19

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

5. CASH AND CASH EQUIVALENTS

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, the Company recorded $2,744,457, $2,857,587, and $3,452,917 (unaudited), respectively, of cash and cash equivalents, which consists $238,937, $353,214, and $990,323 (unaudited), respectively, of cash in bank and $2,505,520, $2,504,373 and $2,462,594 (unaudited), respectively, of time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The effective interest rate for the time deposits ranges between 2.95% to 3.25% per annum.

 

6. ACCOUNTS RECEIVABLE – RELATED PARTY

 

  

As of

December 31, 2019

  

As of

June 30, 2019

  

As of

December 31, 2018

 
           (Unaudited) 
Accounts receivable – related party  $520,786   $433,338   $             - 
Allowance for doubtful accounts   -    -    - 
Total accounts receivables – related party  $520,786   $433,338   $- 

 

7. PREPAYMENTS AND DEPOSITS

 

  

As of

December 31, 2019

  

As of

June 30, 2019

  

As of

December 31, 2018

 
           (Unaudited) 
Prepaid expenses  $2,641   $21,081   $2,702 
Deposits to supplier   266,552    477,254    507,367 
Total prepaid expenses and deposits  $269,193   $498,335   $510,069 

 

8. RELATED PARTY TRANSACTIONS

 

The Company’s related party list and relationship are as follows:

 

Related parties   Relationships
     
Agape S.E.A. Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd
     
Agape Superior Living Pty Ltd   Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd

 

F-20

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

 

Agape Superior Living Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd
     
Agape ATP (Asia) Limited   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited.
     
Greenpro Capital Corp.  

Greenpro Capital Corp., through its wholly owned subsidiaries (collectively “Greenpro”), is an approximately 4.7% shareholder in the Company. Greenpro Venture Capital Limited is owned by Greenpro Capital Corp. The controlling shareholders of Greenpro Capital Corp. are Mr. Lee Chong Kuang and Mr. Loke Che Chan.

 

Mr. How Kok Choong, the CEO and director of the Company is also the director of Greenpro Capital Corp. Mr. How Kok Choong ceased to be the director of Greenpro Capital Corp. in November 2018.

 

Related party transactions as of and for six months ended December 31, 2019 and 2018 are as per table below:

 

   For the six months ended   As of 
   December 31, 2019   December 31, 2018   December 31, 2019   December 31, 2018 
       (Unaudited)       (Unaudited) 
   Revenue   Accounts Receivable, Trade 
                     
Agape S.E.A. Sdn Bhd  $429,362   $685,288   $520,786   $          - 

 

   Professional fee   Accounts Payable, Non-trade 
                     
Greenpro Capital Corp.  $-   $4,500   $-   $- 

 

   Expenses paid on behalf   Amount due from a related party 
                     
Agape ATP (Asia) Limited  $-   $-   $2,217   $- 

 

F-21

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Related party transactions as of and for years ended June 30, 2019 and 2018 are as per table below:

 

   Years ended   As of 
   June 30, 2019   June 30, 2018   June 30, 2019 
   Revenue  

Accounts Receivable,
Trade

 
Agape S.E.A. Sdn Bhd  $1,524,596   $487,005   $433,338 
Agape Superior Living Pty Ltd   21,461    -    - 
Total  $1,546,057   $487,005   $433,338 

 

   Professional fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $12,000   $214,883   $          - 

 

   Company Secretarial fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $3,282   $292   $           - 

 

   License fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $1,509   $-   $          - 

 

   Incorporation fee  

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.  $-   $1,419   $          - 

 

   Expenses paid on behalf  

Amount due from

A related party

 
Agape Superior Living Sdn Bhd  $-   $745   $        - 

 

   Expenses paid on behalf  

Amount due from

A related party

 
Agape ATP (Asia) limited  $2,210   $-   $2,210 

 

   Sundry purchases  

Accounts Payable,

Non-trade

 
Agape Superior Living Pty Ltd  $35,145   $-   $35,145 

 

F-22

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

9. STOCKHOLDERS’ EQUITY

 

Preferred stock

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, there were 200,000,000 preferred shares authorized but none were issued and outstanding.

 

Common stock

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, there were 376,275,500 of common stocks issued and outstanding.

 

There were no stock options, warrants or other potentially dilutive securities outstanding as of December 31, 2019, June 30, 2019 and December 31, 2018.

 

10. OTHER PAYABLES AND ACCRUED LIABILITIES

 

  

As of

December 31, 2019

  

As of

June 30, 2019

  

As of

December 31, 2018

 
           (Unaudited) 
Accrued professional fees  $58,594   $20,000   $7,884 
Others   18,652    12,319    - 
Total payables and accrued liabilities  $77,246   $32,319   $7,884 

 

11. INCOME TAXES

 

The United States and foreign components of income (loss) before income taxes were comprised of the following:

 

   For the six months ended   For the years ended 
   December 31, 2019   December 31, 2018   June 30, 2019   June 30, 2018 
       (Unaudited)         
Tax jurisdictions from:                    
- Local  $(279,476)  $(33,977)  $(76,309)  $(261,918)
- Foreign - Labuan   (4,174)   (45,576)   (2,777)   134,806 
- Foreign – Hong Kong   (55,281)   (55,928)   (440,556)   2,172 
Loss before income tax  $(338,931)  $(135,481)  $(519,642)  $(124,940)

 

F-23

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

The provision for income taxes consisted of the following:

 

   For the six months ended   For the years ended 
   December 31, 2019   December 31, 2018   June 30, 2019   June 30, 2018 
       (Unaudited)         
Current:                
- Local  $           -   $ -   $ -    $ - 
- Foreign   -    6,965    -    5,334 
                     
Deferred:                    
- Local   -    -    -    - 
- Foreign   -    -    -    - 
                     
Income tax expense  $-   $6.965   $-   $5,334 

 

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, 2019, June 30, 2019 and December 31, 2018, the operations in the United States of America incurred $717,901, $438,426, and $395,095 (unaudited), respectively, 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 2037 and ending in 2039, if unutilized. The tax valuation allowance as of December 31, 2019, June 30, 2019 and December 31, 2018 are $150,759, $92,069 and $82,970 (unaudited), 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. Due to Agape ATP Corporation is a holding company, it did not generate any income nor incurred any income tax. In addition, its related expenses incurred cannot be carried forward to offset any future operation income.

 

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 derived from Hong Kong. Business income derived or business expenses incurred outside the Special Administrative Region is not subject to Hong Kong Profits Tax or deduction.

 

F-24

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below:

 

   For the six months ended   For the years ended 
   December 31, 2019   December 31, 2018   June 30, 2019   June 30, 2018 
       (Unaudited)         
U.S. statutory rate   21.0%   21.0%   21.0%   21.0%
Valuation allowance   (21.0)%   (21.0)%   (21.0)%   (21.0)%
Permanent difference (1)   0.0%   (5.1)%   0.0%   (4.3)%
Effective tax rate   0.0%   (5.1)%   0.0%   (4.3)%

 

(1) This was related to disallowed expenditure incurred in the ordinary course of business.

 

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of:

 

  

As of

December 31, 2019

  

As of

June 30, 2019

  

As of

December 31, 2018

 
           (Unaudited) 
Deferred tax assets:               
Net operating loss carry forwards in U.S.  $150,759   $92,069   $82,970 
Less: valuation allowance   (150,759)   (92,069)   (82,970)
Deferred tax asset  $-   $-   $- 

 

12. AMOUNT DUE TO A DIRECTOR

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, a director of the Company advanced $3,952, $3,938 and $3,921 (unaudited), respectively, to the Company, which is unsecured, interest-free with no fixed repayment term, for working capital purpose. Imputed interest is considered insignificant.

 

13. CONCENTRATIONS OF RISKS

 

(a) Major customers

 

For the six months ended December 31, 2019 and 2018, one customer accounted for 100% of the Company’s total revenues. For the years ended June 30, 2019 and 2018, one customer accounted for approximately 99% and 100% of the Company’s total revenues, respectively.

 

As of December 31, 2019, and June 30, 2019, one customer accounted for 100% of the total balance of accounts receivable.

 

F-25

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

(b) Major vendors

 

For the six months ended December 31, 2019, two vendors accounted for approximately 59% and 41% of the Company’s total purchases, respectively. For the six months ended December 31, 2018, one vendor accounted for approximately 89% of the Company’s total purchases. For the year ended June 30, 2019, two vendors accounted for approximately 71% and 26% of the Company’s total purchases. For the year ended June 30, 2018, one vendor accounted for 100% of the Company’s total purchases.

 

As of December 31, 2019 and June 30, 2019, one vendor accounted for 100% of the total balance of accounts payable.

 

(c) Credit risk

 

Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Historically, the Company did not have any bad debt on its account receivable.

 

(d) Exchange rate risk

 

The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM$ and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

 

14. COMMITMENTS AND CONTINGENCIES

 

Lease commitments

 

The Company has entered into an operating lease agreement for an office in Hong Kong. The Company’s commitment for minimum lease payments under these operating leases as of December 31, 2019 for the next two years is as follow:

 

Twelve months ending December 31,  Minimum lease payment 
2020  $17,973 
Thereafter   - 
Total minimum payments required  $17,973 

 

Rent expense for the six months ended December 31, 2019 and 2018 was $26,828 and $8,932 (Unaudited), respectively. Rent expense for the years ended June 30, 2019 and 2018 was $35,706 and $0, respectively

 

F-26

 

 

AGAPE ATP CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

 

Purchase commitments

 

The total future minimum purchase commitment under a non-cancellable purchase contract as of December 31, 2019 for the next five years and thereafter is as follows:

 

Twelve months ending December 31,  Minimum purchase 
2020  $693,900 
2021   693,900 
2022   693,900 
2023   693,900 
2024   693,900 
Thereafter   2,081,700 
Total minimum purchase commitments required  $5,551,200 

 

As of the date of this report, the Company’s vendor is not able to meet the Company’s minimum purchase commitment of the health and wellness products due to the manufacturing process was being delayed by its vendor.

 

Contingencies

 

From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements.

 

15. SUBSEQUENT EVENT

 

In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world in the first quarter of 2020 has caused significant volatility in Malaysia. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the Malaysia economies and, as such, the Company is unable to determine if it will have a material impact to its operations.

 

F-27

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, HOW KOK CHOONG, certify that:

 

1. I have reviewed this transition report on Form 10-K of Agape ATP Corporation (the “Company”) for the period ended December 31, 2019;

 

2. Based on my knowledge, this transition 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: March 27, 2020 By: /s/ How Kok Choong
    HOW KOK CHOONG
   

Chief Executive Officer,

President, Director, Secretary, Treasurer

    (Principal Executive Officer and Principal Financial 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 Transition Report of Agape ATP Corporation (the “Company”) on Form 10-K for the period ended December 31, 2019 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: March 27, 2020 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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Sdn Bhd [Member] Agape Superior Living Pty Ltd [Member] Greenpro Capital Corporation [Member] Agape Superior Living Sdn Bhd [Member] Agape ATP (Asia) Limited [Member] Consolidated Entities [Axis] Agape ATP International Holding Limited [Member] Subsidiary Company [Member] Subsidiary Company One [Member] Restatement [Axis] Reclassification [Member] Balance Sheet Location [Axis] Other Payables and Accrued Liabilities [Member] Product and Service [Axis] Survivor Select [Member] Energized Mineral Concentrate [Member] Ionized Cal-Mag [Member] Omega Blend [Member] BetaMaxx [Member] Iron [Member] Young Formula [Member] Organic Youth Care Cleansing Bar [Member] Energetique Hyaluronic Acid Serum [Member] Trim+ [Member] Lipomask [Member] Director [Member] Statistical Measurement [Axis] Maximum [Member] Minimum [Member] Mr. How Kok Choong [Member] Greenpro Capital Corp [Member] Scenario [Axis] If Unutilized [Member] Customer [Axis] One Customer [Member] Concentration Risk Benchmark [Axis] Accounts Receivable [Member] Two Vendor [Member] One Vendor [Member] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Well-known Seasoned Issuer Entity Voluntary Filer Entity Current Reporting Status Entity Interactive Data Current Entity Filer Category Entity Small Business Flag Entity Emerging Growth Company Entity Ex Transition Period Entity Shell Company Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS CURRENT ASSETS Cash and cash equivalents Accounts receivable - related party Amount due from a related party Prepayments and deposits Total Current Assets OTHER ASSETS Investment in investee company Investment in marketable securities Investment in non-marketable securities Total other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Accounts payable - related party Customer deposits Income tax payable Other payables and accrued liabilities Amount due to a director Total Current Liabilities TOTAL LIABILITIES 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 issued and outstanding as of December 31, 2019, June 30, 2019 and December 31, 2018 Additional paid in capital Accumulated deficit Accumulated other comprehensive loss TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] REVENUE - RELATED PARTY COST OF REVENUE GROSS PROFIT SELLING, GENERAL AND ADMINISTRATIVE EXPENSES INCOME (LOSS) FROM OPERATIONS OTHER INCOME/(EXPENSES) Other Income/(Expenses), Net Loss from equity investment Unrealized holding loss on marketable securities Gain on deemed disposal of shares in Investee Company Impairment loss in equity investment TOTAL OTHER INCOME/(EXPENSES), NET NET LOSS BEFORE INCOME TAXES PROVISION FOR INCOME TAXES NET LOSS OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment COMPREHENSIVE LOSS NET LOSS PER SHARE Basic and diluted WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic and diluted Statement [Table] Statement [Line Items] Balance Balance, shares Net loss IPO completed on March 9, 2018 at $1.00 per share IPO completed on March 9, 2018 at $1.00 per share, shares Shares issued to Adam, Network 1 and Damon completed on April 16, 2018 at $0.0001 per share Shares issued to Adam, Network 1 and Damon completed on April 16, 2018 at $0.0001 per share, shares Foreign currency translation adjustment Balance Balance, shares Statement of Stockholders' Equity [Abstract] Shares issued, price per share Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES: Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Loss from equity investment Unrealized holding loss on marketable securities Gain on deemed disposal of shares in Investee Company Impairment in cost of investment Deferred tax expenses Changes in operating assets and liabilities: Accounts receivable - related party Amount due from a related party Prepayments and deposits Accounts payable Accounts payable - related party Customer deposits Income taxes payable Other payables and accrued liabilities Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Investment in Investee Company Investment in marketable securities Investment in non-marketable securities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Increase in share capital Proceeds from sale of common stock Amount due to a related party Amount due to a director Net cash (used in) provided by financing activities EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, beginning of period CASH AND CASH EQUIVALENTS, end of period SUPPLEMENTAL CASH FLOWS INFORMATION Income taxes paid Interest paid SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES Amount transferred from investment in investee company to investment in non-marketable securities Accounting Policies [Abstract] Organization and Business Background Summary of Significant Accounting Policies Investments, Debt and Equity Securities [Abstract] Investment in Marketable Securities Investment In Non-marketable Securities Investment In Non-Marketable Securities Cash and Cash Equivalents [Abstract] Cash and Cash Equivalents Receivables [Abstract] Accounts Receivables - Related Party Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] Prepayments and Deposits Related Party Transactions [Abstract] Related Party Transactions Equity [Abstract] Stockholders Equity Other Liabilities Disclosure [Abstract] Other Payables and Accrued Liabilities Income Tax Disclosure [Abstract] Income Taxes Amount Due to a Director Risks and Uncertainties [Abstract] Concentrations of Risks Commitments and Contingencies Disclosure [Abstract] Commitments and Contingencies Subsequent Events [Abstract] Subsequent Events Basis of Presentation Change of year end Basis of Consolidation Use of Estimates Cash and Cash Equivalents Accounts receivable - related party Prepayments and deposits Investment in Investee Company Investment in marketable equity securities Investment in Non-marketable Securities Revenue Recognition Cost of Revenue Selling, General, Administrative and Operating Expenses Income Taxes Comprehensive income (loss) Earnings (loss) per share Foreign currencies translation and transaction Related Parties Fair Value of Financial Instruments Operating leases Recent Accounting Pronouncements Reclassification Schedule of Subsidiaries and Associates Schedule of Dis-aggregated Information of Revenues Schedule of Translation Exchange Rates Schedule of Investment in Marketable Securities Schedule of Investment in Non Marketable Securities Schedule of Accounts Receivables - Related Party Schedule of Prepaid Expenses and Deposits Schedule of Related Parties Relationships Schedule of Related Party Transactions Schedule of Other Payables and Accrued Liabilities Schedule of Components of Income/(Loss) Before Income Tax Schedule of Provision for Income Tax Schedule of Effective Income Tax Rate Schedule of Deferred Tax Assets Schedule of Lease Commitments Schedule of Purchase Commitments Ownership percentage Subsidiary company name Place and date of incorporation Particulars of issued capital Principal activities Proportional of ownership interest and voting power held Income tax examination, likelihood of unfavorable settlement Impairment in cost of investments Changes in other payables and accrued liabilities Total revenues Foreign Currency Exchange Rate, Translation Exchange rate Investment in securities, shares Investment amount Purchased price per shares Cost of investment Less: Impairment in cost of investment Less: Unrealized holding loss Exchange rate effect Investment in marketable securities Equity interest percentage Ordinary shares authorized Ordinary shares issued Ordinary shares outstanding Shares purchased during period Share purchased price per share Less: share of result of investee company Add: gain on deemed disposal of shares in investee company Investment in investee company Reclassify to investment in non-marketable securities Investment in investee company Cash on hand Time deposits Percentage of Interest rate for time deposits Accounts receivable - related party Allowance for doubtful accounts Total accounts receivables - related Party Prepaid expenses Deposits to supplier Total prepaid expenses and deposits Related parties relationship, description Revenue Accounts Receivable, Trade Professional fee Accounts Payable, Non-trade Company Secretarial fee License fee Incorporation fee Expenses paid on behalf Amount due from a related party Sundry Purchases Accrued professional fees Others Total payables and accrued liabilities Cumulative net operating loss Operating loss carryforwards expire year Valuation allowance Tax percentage Statutory income tax rate Local Foreign Loss before income tax Current, Local Current, Foreign Deferred, Local Deferred, Foreign Income tax expense U.S. statutory rate Valuation allowance Permanent difference Effective tax rate Net operating loss carry forwards Less: valuation allowance Deferred tax asset Concentrations of risk percentage Operating lease, term Operating lease, rent expenses 2020 Thereafter Total minimum payments required 2020 2021 2022 2023 2024 Thereafter Total minimum purchase commitments required Agape ATP International Holding Limited [Member] Amount Due to a Director [Text Block] Customer A [Member] Customer [Member] Customer [Member] Greenpro Capital Corp. [Member] Invetsee Company [Member] Investment in Marketable Securities [Text Block] Labuan [Member] Other [Member] Period-average HKD [Member] Period-average MYR [Member] Period-end HKD [Member] Period-end MYR [Member] Prepayments and Deposits [Text Block] Related Parties [Policy Text Block] Related party A [Member] Related party B [Member] Schedule of Other Payables and Accrued Liabilities [Table Text Block] Schedule of Prepaid Expenses and Deposits [Table Text Block] Subsidiary Company [Member] Subsidiary Company One [Member] Vendor A [Member] Vendor B [Member] Vendor [Member] Investment in non-marketable securities. Investment in non-marketable securities [Policy Text Block] Investment In Non- Marketable Securities [Text Block] Schedule of Investment in Non Marketable Securities [Table Text Block] Related Party C [Member] MYR Currency [Member] HKD Currency [Member] Adam Network Oneand Damon Member. Name of the company name. Place and date of incorporation. Particulars of issued capital. Principal activities. Period-end AUD [Member] Period-average AUD [Member] AUD Currency [Member] Impairment in cost of investment. Phoenix Plus Corporation [Member] Directors of Unreserved Investments [Member] Share of result of investee company. Reclassify to investment in non-marketable securities. Investment in investee company. Deposits to supplier. Agape S.E.A. Sdn Bhd [Member] Agape Superior Living Pty Ltd [Member] Greenpro Capital Corporation [Member] Agape Superior Living Sdn Bhd [Member] Agape ATP (Asia) Limited [Member] Related parties, relationships, description. Operating loss carryforwards expire year. Schedule of Related Parties Relationships [Table Text Block] Investment in investee company. Other income/(expenses), net. Impairment loss in equity investment. Weighted Average number of common shares outstanding [Abstract] Investment in non-marketable securities. Amount due to a director. Amount transferred from investment in investee company to investment in non-marketable securities. Investment in Investee company. Change of year end [Policy Text Block] Prepayments and deposits [Policy text block] Operating leases [Policy Text Block] Schedule of dis-aggregated information of revenues [Table Text Block] Schedule of purchase commitments [Table Text Block] Other Payables and Accrued Liabilities [Member] Survivor Select [Member] Energized Mineral Concentrate [Member] Ionized Cal-Mag [Member] Omega Blend [Member] BetaMaxx [Member] Iron [Member] Young Formula [Member] Organic Youth Care Cleansing Bar [Member] Energetique Hyaluronic Acid Serum [Member] Trim+ [Member] Lipomask [Member] Exchange rate effect on investment securities. Mr. How Kok Choong [Member] Accounts Payable, Non-trade. Company Secretarial fee. License fee. Incorporation fee. 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Accounts Receivables - Related Party
6 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Accounts Receivables - Related Party

6. ACCOUNTS RECEIVABLE – RELATED PARTY

 

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Accounts receivable – related party   $ 520,786     $ 433,338     $              -  
Allowance for doubtful accounts     -       -       -  
Total accounts receivables – related party   $ 520,786     $ 433,338     $ -  

XML 31 R17.htm IDEA: XBRL DOCUMENT v3.20.1
Other Payables and Accrued Liabilities
6 Months Ended
Dec. 31, 2019
Other Liabilities Disclosure [Abstract]  
Other Payables and Accrued Liabilities

10. OTHER PAYABLES AND ACCRUED LIABILITIES

 

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Accrued professional fees   $ 58,594     $ 20,000     $ 7,884  
Others     18,652       12,319       -  
Total payables and accrued liabilities   $ 77,246     $ 32,319     $ 7,884  

XML 32 R38.htm IDEA: XBRL DOCUMENT v3.20.1
Summary of Significant Accounting Policies - Schedule of Translation Exchange Rates (Details)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Jun. 30, 2018
Period-end MYR [Member]        
Foreign Currency Exchange Rate, Translation 4.09 4.13 4.14 4.03
Period-average MYR [Member]        
Foreign Currency Exchange Rate, Translation 4.16 4.13 4.13 4.21
Period-end HKD [Member]        
Foreign Currency Exchange Rate, Translation 7.79 7.81 7.83
Period-average HKD [Member]        
Foreign Currency Exchange Rate, Translation 7.83 7.84 7.84
Period-end AUD [Member]        
Foreign Currency Exchange Rate, Translation 1.43 1.42
Period-average AUD [Member]        
Foreign Currency Exchange Rate, Translation 1.46 1.42
XML 33 R34.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Business Background (Details Narrative)
Dec. 31, 2019
Agape ATP International Holding Limited [Member]  
Ownership percentage 100.00%
XML 34 R30.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions (Tables)
6 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Schedule of Related Parties Relationships

The Company’s related party list and relationship are as follows:

 

Related parties   Relationships
     
Agape S.E.A. Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd
     
Agape Superior Living Pty Ltd   Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd

  

 

Agape Superior Living Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd
     
Agape ATP (Asia) Limited   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited.
     
Greenpro Capital Corp.  

Greenpro Capital Corp., through its wholly owned subsidiaries (collectively “Greenpro”), is an approximately 4.7% shareholder in the Company. Greenpro Venture Capital Limited is owned by Greenpro Capital Corp. The controlling shareholders of Greenpro Capital Corp. are Mr. Lee Chong Kuang and Mr. Loke Che Chan.

 

Mr. How Kok Choong, the CEO and director of the Company is also the director of Greenpro Capital Corp. Mr. How Kok Choong ceased to be the director of Greenpro Capital Corp. in November 2018.

Schedule of Related Party Transactions

Related party transactions as of and for six months ended December 31, 2019 and 2018 are as per table below:

 

    For the six months ended     As of  
    December 31, 2019     December 31, 2018     December 31, 2019     December 31, 2018  
          (Unaudited)           (Unaudited)  
    Revenue     Accounts Receivable, Trade  
                                 
Agape S.E.A. Sdn Bhd   $ 429,362     $ 685,288     $ 520,786     $           -  

 

    Professional fee     Accounts Payable, Non-trade  
                                 
Greenpro Capital Corp.   $ -     $ 4,500     $ -     $ -  

 

    Expenses paid on behalf     Amount due from a related party  
                                 
Agape ATP (Asia) Limited   $ -     $ -     $ 2,217     $ -  

  

Related party transactions as of and for years ended June 30, 2019 and 2018 are as per table below:

 

    Years ended     As of  
    June 30, 2019     June 30, 2018     June 30, 2019  
    Revenue     Accounts Receivable,
Trade
 
Agape S.E.A. Sdn Bhd   $ 1,524,596     $ 487,005     $ 433,338  
Agape Superior Living Pty Ltd     21,461       -       -  
Total   $ 1,546,057     $ 487,005     $ 433,338  

 

    Professional fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ 12,000     $ 214,883     $           -  
                         

 

    Company Secretarial fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ 3,282     $ 292     $            -  
                         

 

    License fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ 1,509     $ -     $           -  
                         

 

    Incorporation fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ -     $ 1,419     $           -  
                         

 

    Expenses paid on behalf    

Amount due from

A related party

 
Agape Superior Living Sdn Bhd   $ -     $ 745     $         -  
                         

 

    Expenses paid on behalf    

Amount due from

A related party

 
Agape ATP (Asia) limited   $ 2,210     $ -     $ 2,210  
                         

 

    Sundry purchases    

Accounts Payable,

Non-trade

 
Agape Superior Living Pty Ltd   $ 35,145     $ -     $ 35,145  

XML 35 R51.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Valuation allowance $ 150,759 $ 82,970 $ 92,069  
Tax percentage 0.00% (5.10%) 0.00% (4.30%)
Statutory income tax rate 21.00% 21.00% 21.00% 21.00%
United States of America [Member]        
Cumulative net operating loss $ 717,901 $ 395,095 $ 438,426  
Operating loss carryforwards expire year 2037      
Valuation allowance $ 150,759 $ 82,970 $ 92,069  
United States of America [Member] | If Unutilized [Member]        
Operating loss carryforwards expire year 2039      
Labuan [Member]        
Tax percentage 3.00%      
Hong Kong [Member]        
Statutory income tax rate 16.50%      
XML 36 R55.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Net operating loss carry forwards $ 150,759 $ 92,069 $ 82,970
Less: valuation allowance (150,759) (92,069) (82,970)
Deferred tax asset
XML 37 R59.htm IDEA: XBRL DOCUMENT v3.20.1
Commitments and Contingencies - Schedule of Lease Commitments (Details)
Dec. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2020 $ 17,973
Thereafter
Total minimum payments required $ 17,973
XML 39 R48.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Revenue $ 429,362 $ 685,288 $ 1,546,057 $ 487,005
Accounts Receivable, Trade 520,786 433,338  
Agape S.E.A. Sdn Bhd [Member]        
Revenue 429,362 685,288 1,524,596 487,005
Accounts Receivable, Trade 520,786 433,338  
Greenpro Capital Corporation [Member]        
Professional fee 4,500 12,000 214,883
Accounts Payable, Non-trade  
Company Secretarial fee     3,282 292
License fee     1,509
Incorporation fee     1,419
Agape ATP (Asia) Limited [Member]        
Expenses paid on behalf 2,210
Amount due from a related party $ 2,217 2,210  
Agape Superior Living Pty Ltd [Member]        
Revenue     21,461
Accounts Receivable, Trade      
Accounts Payable, Non-trade     35,145  
Sundry Purchases     35,145
Agape Superior Living Sdn Bhd [Member]        
Expenses paid on behalf     $ 745
Amount due from a related party      
XML 40 R44.htm IDEA: XBRL DOCUMENT v3.20.1
Cash and Cash Equivalents (Details Narrative) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Cash and cash equivalents $ 2,744,457 $ 2,857,587 $ 3,452,917
Cash on hand 238,937 353,214 990,323
Time deposits $ 2,505,520 $ 2,504,373 $ 2,462,594
Minimum [Member]      
Percentage of Interest rate for time deposits 2.95%    
Maximum [Member]      
Percentage of Interest rate for time deposits 3.25%    
XML 41 R40.htm IDEA: XBRL DOCUMENT v3.20.1
Investment in Marketable Securities (Details Narrative) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Oct. 16, 2018
May 17, 2018
Apr. 16, 2018
Mar. 09, 2018
Purchased price per shares           $ 0.0001 $ 1.00
Greenpro Capital Corp. [Member]              
Investment in securities, shares       33,333 83,333    
Investment amount $ 134,166 $ 501,000 $ 501,000 $ 1,000 $ 500,000    
Purchased price per shares       $ 0.03 $ 6    
XML 42 R21.htm IDEA: XBRL DOCUMENT v3.20.1
Commitments and Contingencies
6 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

14. COMMITMENTS AND CONTINGENCIES

 

Lease commitments

 

The Company has entered into an operating lease agreement for an office in Hong Kong. The Company’s commitment for minimum lease payments under these operating leases as of December 31, 2019 for the next two years is as follow:

 

Twelve months ending December 31,   Minimum lease payment  
2020   $ 17,973  
Thereafter     -  
Total minimum payments required   $ 17,973  

 

Rent expense for the six months ended December 31, 2019 and 2018 was $26,828 and $8,932 (Unaudited), respectively. Rent expense for the years ended June 30, 2019 and 2018 was $35,706 and $0, respectively

  

Purchase commitments

 

The total future minimum purchase commitment under a non-cancellable purchase contract as of December 31, 2019 for the next five years and thereafter is as follows:

 

Twelve months ending December 31,   Minimum purchase  
2020   $ 693,900  
2021     693,900  
2022     693,900  
2023     693,900  
2024     693,900  
Thereafter     2,081,700  
Total minimum purchase commitments required   $ 5,551,200  

 

As of the date of this report, the Company’s vendor is not able to meet the Company’s minimum purchase commitment of the health and wellness products due to the manufacturing process was being delayed by its vendor.

 

Contingencies

 

From time to time, the Company is party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements.

XML 43 R25.htm IDEA: XBRL DOCUMENT v3.20.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of Dis-aggregated Information of Revenues

Disaggregated information of revenues by products are as follows:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
                         
Survivor Select   $ -     $ 204,138     $ 203,815     $ 104,656  
Energized Mineral Concentrate     100,270       222,789       361,092       66,573  
Ionized Cal-Mag     -       -       55,731       43,124  
Omega Blend     68,927       97,170       165,999       68,561  
BetaMaxx     67,789       87,793       211,280       126,191  
Iron     -       2,813       2,809       20,270  
Young Formula     -       -       117,480       57,630  
Organic Youth Care Cleansing Bar     17,206       -       17,751       -  
Energetique Hyaluronic Acid Serum     175,170       -       -       -  
Trim+     -       -       198,862       -  
Lipomask     -       70,585       211,238       -  
Total revenues   $ 429,362     $ 685,288     $ 1,546,057     $ 487,005  

Schedule of Translation Exchange Rates

Translation of foreign currencies 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,

    As of and for the year ended
June 30,
 
    2019     2018     2019     2018  
                         
Period-end MYR : US$1 exchange rate     4.09       4.14       4.13       4.03  
Period-average MYR : US$1 exchange rate     4.16       4.13       4.13       4.21  
Period-end HKD : US$1 exchange rate     7.79       7.83       7.81       -  
Period-average HKD : US$1 exchange rate     7.83       7.84       7.84       -  
Period-end AUD : US$1 exchange rate     1.43       -       1.42       -  
Period-average AUD : US$1 exchange rate     1.46       -       1.42       -  

XML 44 R7.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Cash Flows - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss $ (338,931) $ (142,446) $ (519,642) $ (130,274)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:        
Loss from equity investment 98,140 124,225 30,155
Unrealized holding loss on marketable securities 68,391
Gain on deemed disposal of shares in Investee Company (16,509)
Impairment in cost of investment 366,834
Deferred tax expenses   5,334
Changes in operating assets and liabilities:        
Accounts receivable - related party (85,602) (433,338)
Amount due from a related party (2,210)
Prepayments and deposits 229,638 (245,128) (233,394) (264,941)
Accounts payable 2,778
Accounts payable - related party (35,086) 35,145
Customer deposits 217,743
Income taxes payable 6,965
Other payables and accrued liabilities 44,867 (11,865) 11,825 11,749
Net cash used in operating activities (113,945) (76,591) (667,064) (347,977)
CASH FLOWS FROM INVESTING ACTIVITIES:        
Investment in Investee Company (862,490)
Investment in marketable securities (1,000) (1,000) (500,000)
Investment in non-marketable securities (1,500)
Net cash used in investing activities (1,000) (2,500) (1,362,490)
CASH FLOWS FROM FINANCING ACTIVITIES:        
Increase in share capital 493
Proceeds from sale of common stock 2,925,207
Amount due to a related party (745) 745
Amount due to a director (5,318) 3,822
Net cash (used in) provided by financing activities (745) (5,318) 2,930,267
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS 815 (2) 1,214 (1,293)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (113,130) (78,338) (673,668) 1,218,507
CASH AND CASH EQUIVALENTS, beginning of period 2,857,587 3,531,255 3,531,255 2,312,748
CASH AND CASH EQUIVALENTS, end of period 2,744,457 3,452,917 2,857,587 3,531,255
SUPPLEMENTAL CASH FLOWS INFORMATION        
Income taxes paid
Interest paid
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES        
Amount transferred from investment in investee company to investment in non-marketable securities $ 724,619
XML 45 R29.htm IDEA: XBRL DOCUMENT v3.20.1
Prepayments and Deposits (Tables)
6 Months Ended
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Deposits

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Prepaid expenses   $ 2,641     $ 21,081     $ 2,702  
Deposits to supplier     266,552       477,254       507,367  
Total prepaid expenses and deposits   $ 269,193     $ 498,335     $ 510,069  

XML 46 R3.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]      
Preferred stock, par value $ 0.0001 $ 0.0001 $ 0.0001
Preferred stock, shares authorized 200,000,000 200,000,000 200,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value $ 0.0001 $ 0.0001 $ 0.0001
Common stock, shares authorized 1,000,000,000 1,000,000,000 1,000,000,000
Common stock, shares issued 376,275,500 376,275,500 376,275,500
Common stock, shares outstanding 376,275,500 376,275,500 376,275,500
XML 47 R45.htm IDEA: XBRL DOCUMENT v3.20.1
Accounts Receivables - Related Party - Schedule of Accounts Receivables - Related Party (Details) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Receivables [Abstract]      
Accounts receivable - related party $ 520,786 $ 433,338
Allowance for doubtful accounts
Total accounts receivables - related Party $ 520,786 $ 433,338
XML 48 R41.htm IDEA: XBRL DOCUMENT v3.20.1
Investment in Marketable Securities - Schedule of Investment in Marketable Securities (Details) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Oct. 16, 2018
May 17, 2018
Less: Unrealized holding loss $ 68,391    
Investment in marketable securities 66,484 501,000 134,166      
Greenpro Capital Corp. [Member]            
Cost of investment 134,166 501,000 501,000   $ 1,000 $ 500,000
Less: Impairment in cost of investment (366,834)      
Less: Unrealized holding loss (68,391)      
Exchange rate effect 709      
Investment in marketable securities $ 66,484 $ 501,000 $ 134,166      
XML 49 R49.htm IDEA: XBRL DOCUMENT v3.20.1
Stockholders' Equity (Details Narrative) - shares
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Equity [Abstract]      
Preferred stock, shares authorized 200,000,000 200,000,000 200,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, shares issued 376,275,500 376,275,500 376,275,500
Common stock, shares outstanding 376,275,500 376,275,500 376,275,500
XML 50 R6.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
Apr. 16, 2018
Mar. 09, 2018
Statement of Stockholders' Equity [Abstract]    
Shares issued, price per share $ 0.0001 $ 1.00
XML 51 R28.htm IDEA: XBRL DOCUMENT v3.20.1
Accounts Receivables - Related Party (Tables)
6 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Schedule of Accounts Receivables - Related Party

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Accounts receivable – related party   $ 520,786     $ 433,338     $              -  
Allowance for doubtful accounts     -       -       -  
Total accounts receivables – related party   $ 520,786     $ 433,338     $ -  

XML 52 R2.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Balance Sheets - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
CURRENT ASSETS      
Cash and cash equivalents $ 2,744,457 $ 2,857,587 $ 3,452,917
Accounts receivable - related party 520,786 433,338
Amount due from a related party 2,217 2,210
Prepayments and deposits 269,193 498,335 510,069
Total Current Assets 3,536,653 3,791,470 3,962,986
OTHER ASSETS      
Investment in investee company 734,195
Investment in marketable securities 66,484 134,166 501,000
Investment in non-marketable securities 732,137 726,119
Total other assets 798,621 860,285 1,235,195
TOTAL ASSETS 4,335,274 4,651,755 5,198,181
CURRENT LIABILITIES      
Accounts payable 2,790
Accounts payable - related party 35,145
Customer deposits 217,743
Income tax payable 12,299
Other payables and accrued liabilities 77,246 32,319 7,884
Amount due to a director 3,952 3,938 3,921
Total Current Liabilities 83,988 71,402 241,847
TOTAL LIABILITIES 83,988 71,402 241,847
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 issued and outstanding as of December 31, 2019, June 30, 2019 and December 31, 2018 37,628 37,628 37,628
Additional paid in capital 5,293,082 5,293,082 5,293,082
Accumulated deficit (1,089,209) (750,278) (373,082)
Accumulated other comprehensive loss 9,785 (79) (1,294)
TOTAL STOCKHOLDERS' EQUITY 4,251,286 4,580,353 4,956,334
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,335,274 $ 4,651,755 $ 5,198,181
XML 53 R20.htm IDEA: XBRL DOCUMENT v3.20.1
Concentrations of Risks
6 Months Ended
Dec. 31, 2019
Risks and Uncertainties [Abstract]  
Concentrations of Risks

13. CONCENTRATIONS OF RISKS

 

(a) Major customers

 

For the six months ended December 31, 2019 and 2018, one customer accounted for 100% of the Company’s total revenues. For the years ended June 30, 2019 and 2018, one customer accounted for approximately 99% and 100% of the Company’s total revenues, respectively.

 

As of December 31, 2019, and June 30, 2019, one customer accounted for 100% of the total balance of accounts receivable.

  

(b) Major vendors

 

For the six months ended December 31, 2019, two vendors accounted for approximately 59% and 41% of the Company’s total purchases, respectively. For the six months ended December 31, 2018, one vendor accounted for approximately 89% of the Company’s total purchases. For the year ended June 30, 2019, two vendors accounted for approximately 71% and 26% of the Company’s total purchases. For the year ended June 30, 2018, one vendor accounted for 100% of the Company’s total purchases.

 

As of December 31, 2019 and June 30, 2019, one vendor accounted for 100% of the total balance of accounts payable.

 

(c) Credit risk

 

Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its account receivable is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Historically, the Company did not have any bad debt on its account receivable.

 

(d) Exchange rate risk

 

The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RM$ and HK$ converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

XML 54 R24.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Business Background (Tables)
6 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of Subsidiaries and Associates

Details of the Company’s subsidiaries:

 

   

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
  100 shares of ordinary share of US$1 each   Investment holding     100 %
                         
2.   Agape ATP International Holding Limited   Hong Kong,
June 1, 2017
  1,000,000 shares of ordinary share of HK$1 each   Health and wellness products and health solution advisory services     100 %

XML 55 R12.htm IDEA: XBRL DOCUMENT v3.20.1
Cash and Cash Equivalents
6 Months Ended
Dec. 31, 2019
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents

5. CASH AND CASH EQUIVALENTS

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, the Company recorded $2,744,457, $2,857,587, and $3,452,917 (unaudited), respectively, of cash and cash equivalents, which consists $238,937, $353,214, and $990,323 (unaudited), respectively, of cash in bank and $2,505,520, $2,504,373 and $2,462,594 (unaudited), respectively, of time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less. The effective interest rate for the time deposits ranges between 2.95% to 3.25% per annum.

XML 56 R16.htm IDEA: XBRL DOCUMENT v3.20.1
Stockholders' Equity
6 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders Equity

9. STOCKHOLDERS’ EQUITY

 

Preferred stock

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, there were 200,000,000 preferred shares authorized but none were issued and outstanding.

 

Common stock

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, there were 376,275,500 of common stocks issued and outstanding.

 

There were no stock options, warrants or other potentially dilutive securities outstanding as of December 31, 2019, June 30, 2019 and December 31, 2018.

XML 57 R35.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Business Background - Schedule of Subsidiaries and Associates (Details)
6 Months Ended
Dec. 31, 2019
Subsidiary Company [Member]  
Subsidiary company name Agape ATP Corporation
Place and date of incorporation Labuan, March 6, 2017
Particulars of issued capital 100 shares 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]  
Subsidiary company name Agape ATP International Holding Limited
Place and date of incorporation Hong Kong, June 1, 2017
Particulars of issued capital 1,000,000 shares 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%
XML 58 R31.htm IDEA: XBRL DOCUMENT v3.20.1
Other Payables and Accrued Liabilities (Tables)
6 Months Ended
Dec. 31, 2019
Other Liabilities Disclosure [Abstract]  
Schedule of Other Payables and Accrued Liabilities

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Accrued professional fees   $ 58,594     $ 20,000     $ 7,884  
Others     18,652       12,319       -  
Total payables and accrued liabilities   $ 77,246     $ 32,319     $ 7,884  

XML 59 R39.htm IDEA: XBRL DOCUMENT v3.20.1
Summary of Significant Accounting Policies - Schedule of Translation Exchange Rates (Details) (Parenthetical) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
MYR Currency [Member]        
Exchange rate $ 1 $ 1 $ 1 $ 1
HKD Currency [Member]        
Exchange rate 1 1 1 1
AUD Currency [Member]        
Exchange rate $ 1 $ 1 $ 1 $ 1
XML 60 R58.htm IDEA: XBRL DOCUMENT v3.20.1
Commitments and Contingencies (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]        
Operating lease, term 2 years      
Operating lease, rent expenses $ 26,828 $ 8,932 $ 35,706 $ 0
XML 61 R50.htm IDEA: XBRL DOCUMENT v3.20.1
Other Payables and Accrued Liabilities - Schedule of Other Payables and Accrued Liabilities (Details) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]      
Accrued professional fees $ 58,594 $ 20,000 $ 7,884
Others 18,652 12,319
Total payables and accrued liabilities $ 77,246 $ 32,319 $ 7,884
XML 62 R54.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes - Schedule of Effective Income Tax Rate (Details)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
U.S. statutory rate 21.00% 21.00% 21.00% 21.00%
Valuation allowance (21.00%) (21.00%) (21.00%) (21.00%)
Permanent difference [1] 0.00% (5.10%) 0.00% (4.30%)
Effective tax rate 0.00% (5.10%) 0.00% (4.30%)
[1] This was related to disallowed expenditure incurred in the ordinary course of business.
XML 63 R60.htm IDEA: XBRL DOCUMENT v3.20.1
Commitments and Contingencies - Schedule of Purchase Commitments (Details)
Dec. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2020 $ 693,900
2021 693,900
2022 693,900
2023 693,900
2024 693,900
Thereafter 2,081,700
Total minimum purchase commitments required $ 5,551,200
XML 64 R47.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions - Schedule of Related Parties Relationships (Details)
6 Months Ended
Dec. 31, 2019
Agape S.E.A. Sdn Bhd [Member]  
Related parties relationship, description Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd
Agape Superior Living Pty Ltd [Member]  
Related parties relationship, description Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd
Agape Superior Living Sdn Bhd [Member]  
Related parties relationship, description Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd
Agape ATP (Asia) Limited [Member]  
Related parties relationship, description Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited.
Greenpro Capital Corp [Member]  
Related parties relationship, description Greenpro Capital Corp., through its wholly owned subsidiaries (collectively "Greenpro"), is an approximately 4.7% shareholder in the Company. Greenpro Venture Capital Limited is owned by Greenpro Capital Corp. The controlling shareholders of Greenpro Capital Corp. are Mr. Lee Chong Kuang and Mr. Loke Che Chan. Mr. How Kok Choong, the CEO and director of the Company is also the director of Greenpro Capital Corp. Mr. How Kok Choong ceased to be the director of Greenpro Capital Corp. in November 2018.
XML 65 R43.htm IDEA: XBRL DOCUMENT v3.20.1
Investment in Non-Marketable Securities - Schedule of Investment in Non Marketable Securities (Details) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Apr. 03, 2019
Dec. 31, 2018
Investment in non-marketable securities $ 732,137 $ 726,119  
Phoenix Plus Corporation [Member]        
Cost of investment 1,500 1,500 $ 1,500 1,500
Directors of Unreserved Investments [Member]        
Cost of investment 832,335   832,335
Less: share of result of investee company (124,225)   (98,140)
Add: gain on deemed disposal of shares in investee company 16,509  
Investment in investee company 724,619   734,195
Reclassify to investment in non-marketable securities (724,619)  
Investment in investee company  
Investment in non-marketable securities $ 730,637 $ 724,619  
XML 66 R4.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]        
REVENUE - RELATED PARTY $ 429,362 $ 685,288 $ 1,546,057 $ 487,005
COST OF REVENUE (383,479) (619,355) (1,436,705) (441,409)
GROSS PROFIT 45,883 65,933 109,352 45,596
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (312,270) (63,068) (240,522) (279,682)
INCOME (LOSS) FROM OPERATIONS (266,387) 2,865 (131,170) (234,086)
OTHER INCOME/(EXPENSES)        
Other Income/(Expenses), Net (4,153) (40,206) 86,078 139,301
Loss from equity investment (98,140) (124,225) (30,155)
Unrealized holding loss on marketable securities (68,391)
Gain on deemed disposal of shares in Investee Company 16,509
Impairment loss in equity investment (366,834)
TOTAL OTHER INCOME/(EXPENSES), NET (72,544) (138,346) (388,472) 109,146
NET LOSS BEFORE INCOME TAXES (338,931) (135,481) (519,642) (124,940)
PROVISION FOR INCOME TAXES (6,965) (5,334)
NET LOSS (338,931) (142,446) (519,642) (130,274)
OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation adjustment 9,864 (1) 1,214 (1,293)
COMPREHENSIVE LOSS $ (329,067) $ (142,447) $ (518,428) $ (131,567)
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 376,275,500 376,275,500 376,275,500 373,017,955
XML 67 R22.htm IDEA: XBRL DOCUMENT v3.20.1
Subsequent Events
6 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

15. SUBSEQUENT EVENT

 

In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world in the first quarter of 2020 has caused significant volatility in Malaysia. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the Malaysia economies and, as such, the Company is unable to determine if it will have a material impact to its operations.

XML 68 R8.htm IDEA: XBRL DOCUMENT v3.20.1
Organization and Business Background
6 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Organization and Business Background

1. ORGANIZATION AND BUSINESS BACKGROUND

 

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 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 provide health and wellness products and advisory services to the public. 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.

 

Details of the Company’s subsidiaries:

 

   

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
  100 shares of ordinary share of US$1 each   Investment holding     100 %
                         
2.   Agape ATP International Holding Limited   Hong Kong,
June 1, 2017
  1,000,000 shares of ordinary share of HK$1 each   Health and wellness products and health solution advisory services     100 %

 

Business Overview

 

Agape ATP Corporation is a company that provides health solution advisory services to our clients. We primarily focus our efforts on attracting customers in Malaysia. Our advisory services center on the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and promotion of health. The program aims to promote improved health and longevity in our clients through a combination of modern medicine, proper nutrition and advice from skilled nutritionists and/or 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. As a strong advocator of “beauty from within”, our program shall emphasize 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.

 

The ATP Zeta Super Health Program consists of eight products. None of these products are owned or produced by Agape ATP Corporation. In the event that any of these products are no longer produced, or are otherwise unavailable, we may have to devote significant effort to identifying and obtaining comparable replacement products. The ten products that comprise the ATP Zeta Super Health Program are ATP1s Survivor Select, ATP2 Energized Mineral Concentrate, ATP3 Ionized Cal-Mag, ATP4 Omega Blend, ATP5 BetaMaxx, AGN-Vege Fruit Fiber, AGP1-Iron and YFA-Young Formula.

 

At present, our products are mainly sold in Malaysia, and due to the contents and combination of the main ingredients in the products they are categorized as health food rather than medicines or drugs. As such, all products require authorization from the Food and Quality Division of Ministry of Health according to the Food Act of 1983 and Food Regulation 1985 in order to be sold in the country. All of the products in the ATP Zeta Super Health Program have obtained the appropriate authorizations.

 

As part of a continuous effort to increase market share of the health and wellness industry that is growing at an exponential rate, we will also evaluate adding additional products to the ATP Zeta Super Health Program; and considering the potential of the synergies between the health and beauty sectors, we will further involve ourselves in the topical approach of skin and hair regime.

XML 69 R26.htm IDEA: XBRL DOCUMENT v3.20.1
Investment in Marketable Securities (Tables)
6 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investment in Marketable Securities

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                      (Unaudited)  
Cost of investment   $ 134,166     $ 501,000     $ 501,000  
Less: Impairment in cost of investment     -       (366,834 )     -  
Less: Unrealized holding loss     (68,391 )     -       -  
Exchange rate effect     709       -       -  
Investment in marketable securities   $ 66,484     $ 134,166     $ 501,000  

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Summary of Significant Accounting Policies - Schedule of Dis-aggregated Information of Revenues (Details) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Total revenues $ 429,362 $ 685,288 $ 1,546,057 $ 487,005
Survivor Select [Member]        
Total revenues 204,138 203,815 104,656
Energized Mineral Concentrate [Member]        
Total revenues 100,270 222,789 361,092 66,573
Ionized Cal-Mag [Member]        
Total revenues 55,731 43,124
Omega Blend [Member]        
Total revenues 68,927 97,170 165,999 68,561
BetaMaxx [Member]        
Total revenues 67,789 87,793 211,280 126,191
Iron [Member]        
Total revenues 2,813 2,809 20,270
Young Formula [Member]        
Total revenues 117,480 57,630
Organic Youth Care Cleansing Bar [Member]        
Total revenues 17,206 17,751
Energetique Hyaluronic Acid Serum [Member]        
Total revenues 175,170
Trim+ [Member]        
Total revenues 198,862
Lipomask [Member]        
Total revenues $ 70,585 $ 211,238
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Commitments and Contingencies (Tables)
6 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Lease Commitments

The Company has entered into an operating lease agreement for an office in Hong Kong. The Company’s commitment for minimum lease payments under these operating leases as of December 31, 2019 for the next two years is as follow:

 

Twelve months ending December 31,   Minimum lease payment  
2020   $ 17,973  
Thereafter     -  
Total minimum payments required   $ 17,973  

Schedule of Purchase Commitments

Purchase commitments

 

The total future minimum purchase commitment under a non-cancellable purchase contract as of December 31, 2019 for the next five years and thereafter is as follows:

 

Twelve months ending December 31,   Minimum purchase  
2020   $ 693,900  
2021     693,900  
2022     693,900  
2023     693,900  
2024     693,900  
Thereafter     2,081,700  
Total minimum purchase commitments required   $ 5,551,200  

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Investment in Marketable Securities
6 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment in Marketable Securities

3. INVESTMENT IN MARKETABLE SECURITIES

 

  (i) On May 17, 2018, the Company purchased 83,333 shares of common stock in Greenpro Capital Corp. for $500,000 at a purchase price of $6 per share.
     
  (ii) On October 16, 2018, the Company purchased 33,333 shares of common stock in Greenpro Capital Corp. for $1,000 at a purchase price of $0.03 per share.

 

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                      (Unaudited)  
Cost of investment   $ 134,166     $ 501,000     $ 501,000  
Less: Impairment in cost of investment     -       (366,834 )     -  
Less: Unrealized holding loss     (68,391 )     -       -  
Exchange rate effect     709       -       -  
Investment in marketable securities   $ 66,484     $ 134,166     $ 501,000  

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Prepayments and Deposits
6 Months Ended
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepayments and Deposits

7. PREPAYMENTS AND DEPOSITS

 

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Prepaid expenses   $ 2,641     $ 21,081     $ 2,702  
Deposits to supplier     266,552       477,254       507,367  
Total prepaid expenses and deposits   $ 269,193     $ 498,335     $ 510,069  

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Income Taxes
6 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

11. INCOME TAXES

 

The United States and foreign components of income (loss) before income taxes were comprised of the following:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
Tax jurisdictions from:                                
- Local   $ (279,476 )   $ (33,977 )   $ (76,309 )   $ (261,918 )
- Foreign - Labuan     (4,174 )     (45,576 )     (2,777 )     134,806  
- Foreign – Hong Kong     (55,281 )     (55,928 )     (440,556 )     2,172  
Loss before income tax   $ (338,931 )   $ (135,481 )   $ (519,642 )   $ (124,940 )

  

The provision for income taxes consisted of the following:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
Current:                        
- Local   $           -     $ -     $ -      $ -  
- Foreign     -       6,965       -       5,334  
                                 
Deferred:                                
- Local     -       -       -       -  
- Foreign     -       -       -       -  
                                 
Income tax expense   $ -     $ 6.965     $ -     $ 5,334  

 

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, 2019, June 30, 2019 and December 31, 2018, the operations in the United States of America incurred $717,901, $438,426, and $395,095 (unaudited), respectively, 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 2037 and ending in 2039, if unutilized. The tax valuation allowance as of December 31, 2019, June 30, 2019 and December 31, 2018 are $150,759, $92,069 and $82,970 (unaudited), 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. Due to Agape ATP Corporation is a holding company, it did not generate any income nor incurred any income tax. In addition, its related expenses incurred cannot be carried forward to offset any future operation income.

 

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 derived from Hong Kong. Business income derived or business expenses incurred outside the Special Administrative Region is not subject to Hong Kong Profits Tax or deduction.

  

The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
U.S. statutory rate     21.0 %     21.0 %     21.0 %     21.0 %
Valuation allowance     (21.0 )%     (21.0 )%     (21.0 )%     (21.0 )%
Permanent difference (1)     0.0 %     (5.1 )%     0.0 %     (4.3 )%
Effective tax rate     0.0 %     (5.1 )%     0.0 %     (4.3 )%

 

(1) This was related to disallowed expenditure incurred in the ordinary course of business.

 

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of:

 

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Deferred tax assets:                        
Net operating loss carry forwards in U.S.   $ 150,759     $ 92,069     $ 82,970  
Less: valuation allowance     (150,759 )     (92,069 )     (82,970 )
Deferred tax asset   $ -     $ -     $ -  

XML 75 R52.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes - Schedule of Components of Income/(Loss) Before Income Tax (Details) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Local $ (279,476) $ (33,977) $ (76,309) $ (261,918)
Loss before income tax (338,931) (135,481) (519,642) (124,940)
Labuan [Member]        
Foreign (4,174) (45,576) (2,777) 134,806
Hong Kong [Member]        
Foreign $ (55,281) $ (55,928) $ (440,556) $ 2,172
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Amount Due to a Director (Details Narrative) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Related Party Transactions [Abstract]      
Amount due to a director $ 3,952 $ 3,938 $ 3,921
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Summary of Significant Accounting Policies (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Income tax examination, likelihood of unfavorable settlement Greater than 50%      
Impairment in cost of investments   $ (366,834)  
Accounts receivable - related party 520,786 433,338  
Changes in other payables and accrued liabilities $ (35,086) 35,145
Reclassification [Member]        
Changes in other payables and accrued liabilities     78,272  
Reclassification [Member] | Other Payables and Accrued Liabilities [Member]        
Accounts receivable - related party     $ 78,272  
XML 79 R32.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes (Tables)
6 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income/(Loss) Before Income Tax

The United States and foreign components of income (loss) before income taxes were comprised of the following:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
Tax jurisdictions from:                                
- Local   $ (279,476 )   $ (33,977 )   $ (76,309 )   $ (261,918 )
- Foreign - Labuan     (4,174 )     (45,576 )     (2,777 )     134,806  
- Foreign – Hong Kong     (55,281 )     (55,928 )     (440,556 )     2,172  
Loss before income tax   $ (338,931 )   $ (135,481 )   $ (519,642 )   $ (124,940 )

Schedule of Provision for Income Tax

The provision for income taxes consisted of the following:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
Current:                        
- Local   $           -     $ -     $ -      $ -  
- Foreign     -       6,965       -       5,334  
                                 
Deferred:                                
- Local     -       -       -       -  
- Foreign     -       -       -       -  
                                 
Income tax expense   $ -     $ 6.965     $ -     $ 5,334  

Schedule of Effective Income Tax Rate

The following table reconciles the local (United States) statutory rates to the Company’s effective tax rate for the periods indicated below:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
U.S. statutory rate     21.0 %     21.0 %     21.0 %     21.0 %
Valuation allowance     (21.0 )%     (21.0 )%     (21.0 )%     (21.0 )%
Permanent difference (1)     0.0 %     (5.1 )%     0.0 %     (4.3 )%
Effective tax rate     0.0 %     (5.1 )%     0.0 %     (4.3 )%

Schedule of Deferred Tax Assets

The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of:

 

   

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                (Unaudited)  
Deferred tax assets:                        
Net operating loss carry forwards in U.S.   $ 150,759     $ 92,069     $ 82,970  
Less: valuation allowance     (150,759 )     (92,069 )     (82,970 )
Deferred tax asset   $ -     $ -     $ -  

XML 80 R19.htm IDEA: XBRL DOCUMENT v3.20.1
Amount Due to a Director
6 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Amount Due to a Director

12. AMOUNT DUE TO A DIRECTOR

 

As of December 31, 2019, June 30, 2019 and December 31, 2018, a director of the Company advanced $3,952, $3,938 and $3,921 (unaudited), respectively, to the Company, which is unsecured, interest-free with no fixed repayment term, for working capital purpose. Imputed interest is considered insignificant.

XML 81 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Investment In Non-Marketable Securities
6 Months Ended
Dec. 31, 2019
Investment In Non-marketable Securities  
Investment In Non-Marketable Securities

4. INVESTMENT IN NON-MARKETABLE SECURITIES

 

The Company invested in Unreserved Sdn Bhd with the investment amount of $863,592 (MYR3,500,000), which approximated 20% of the equity interest of Unreserved Sdn Bhd and is accounted for under the equity method of accounting. On March 10, 2019 Unreserved Sdn Bhd issued additional common stock for working capital. As the Company did not subscribe for the additional common stock, the Company’s equity interest in investee company was diluted from approximately 20.0% to approximately 17.86%. Effective from March 10, 2019, the Company discontinued equity accounting on the investee company. The Company also ceased control over the operations of the investee company on the same date. Accordingly, the investment in investee company was reclassified to investment in non-marketable securities.

 

Unreserved Sdn Bhd is incorporated in Malaysia with 2,500,000 ordinary shares authorized, issued and outstanding. Mr. Lim Hun Soon @ David Lim and Ms. Aniza Helina Akmi Karim are the directors of Unreserved Sdn Bhd. Mr. How Kok Choong was a director of the company from April 30, 2018 to March 27, 2019.

 

On March 2, 2020, the Company agreed to sell the 17.86% ownership interest in Unreserved Sdn Bhd at December 31, 2019 carrying value of $730,637 to Mr. How Kok Choong, the CEO and director of the Company.

 

On April 3, 2019, the Company purchased a 5% of stock or 15,000,000 shares of common stock in Phoenix Plus Corp. for $1,500 at purchase price of $0.0001 per share.

 

Unreserved Sdn Bhd  

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                      (Unaudited)  
Cost of investment   $ -     $ 832,335     $ 832,335  
Less: loss of equity of investee company     -       (124,225 )     (98,140 )
Add: gain on deemed disposal of shares in investee company     -       16,509       -  
Investment in investee company   $ -     $ 724,619     $ 734,195  
Reclassify to investment in non-marketable securities     -       (724,619 )     -  
Investment in investee company   $ -     $ -     $ -  
                         
Investment in non-marketable securities   $ 730,637     $ 724,619     $ -  
                         
Phoenix Plus Corporation                        
Cost of investment   $ 1,500     $ 1,500     $ 1,500  
                         
Total investment in non-marketable securities   $ 732,137     $ 726,119     $ -  

XML 82 R15.htm IDEA: XBRL DOCUMENT v3.20.1
Related Party Transactions
6 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

8. RELATED PARTY TRANSACTIONS

 

The Company’s related party list and relationship are as follows:

 

Related parties   Relationships
     
Agape S.E.A. Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape S.E.A. Sdn Bhd
     
Agape Superior Living Pty Ltd   Mr. How Kok Choong, the CEO and director of the Company is a 51% shareholder and a director of Agape Superior Living Pty Ltd

  

 

Agape Superior Living Sdn Bhd   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape Superior Living Sdn Bhd
     
Agape ATP (Asia) Limited   Mr. How Kok Choong, the CEO and director of the Company is also the sole shareholder and director of Agape ATP (Asia) Limited.
     
Greenpro Capital Corp.  

Greenpro Capital Corp., through its wholly owned subsidiaries (collectively “Greenpro”), is an approximately 4.7% shareholder in the Company. Greenpro Venture Capital Limited is owned by Greenpro Capital Corp. The controlling shareholders of Greenpro Capital Corp. are Mr. Lee Chong Kuang and Mr. Loke Che Chan.

 

Mr. How Kok Choong, the CEO and director of the Company is also the director of Greenpro Capital Corp. Mr. How Kok Choong ceased to be the director of Greenpro Capital Corp. in November 2018.

 

Related party transactions as of and for six months ended December 31, 2019 and 2018 are as per table below:

 

    For the six months ended     As of  
    December 31, 2019     December 31, 2018     December 31, 2019     December 31, 2018  
          (Unaudited)           (Unaudited)  
    Revenue     Accounts Receivable, Trade  
                                 
Agape S.E.A. Sdn Bhd   $ 429,362     $ 685,288     $ 520,786     $           -  

 

    Professional fee     Accounts Payable, Non-trade  
                                 
Greenpro Capital Corp.   $ -     $ 4,500     $ -     $ -  

 

    Expenses paid on behalf     Amount due from a related party  
                                 
Agape ATP (Asia) Limited   $ -     $ -     $ 2,217     $ -  

  

Related party transactions as of and for years ended June 30, 2019 and 2018 are as per table below:

 

    Years ended     As of  
    June 30, 2019     June 30, 2018     June 30, 2019  
    Revenue     Accounts Receivable,
Trade
 
Agape S.E.A. Sdn Bhd   $ 1,524,596     $ 487,005     $ 433,338  
Agape Superior Living Pty Ltd     21,461       -       -  
Total   $ 1,546,057     $ 487,005     $ 433,338  

 

    Professional fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ 12,000     $ 214,883     $           -  
                         

 

    Company Secretarial fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ 3,282     $ 292     $            -  
                         

 

    License fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ 1,509     $ -     $           -  
                         

 

    Incorporation fee    

Accounts Payable,

Non-trade

 
Greenpro Capital Corp.   $ -     $ 1,419     $           -  
                         

 

    Expenses paid on behalf    

Amount due from

A related party

 
Agape Superior Living Sdn Bhd   $ -     $ 745     $         -  
                         

 

    Expenses paid on behalf    

Amount due from

A related party

 
Agape ATP (Asia) limited   $ 2,210     $ -     $ 2,210  
                         

 

    Sundry purchases    

Accounts Payable,

Non-trade

 
Agape Superior Living Pty Ltd   $ 35,145     $ -     $ 35,145  

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Income Taxes - Schedule of Provision for Income Tax (Details) - USD ($)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
Current, Local
Current, Foreign 6,965 5,334
Deferred, Local
Deferred, Foreign
Income tax expense $ 6,965 $ 5,334

XML 85 R57.htm IDEA: XBRL DOCUMENT v3.20.1
Concentrations of Risks (Details Narrative)
6 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Accounts Payable [Member]        
Concentrations of risk percentage 41.00%   26.00%  
One Customer [Member]        
Concentrations of risk percentage 100.00% 100.00% 99.00% 100.00%
One Customer [Member] | Accounts Receivable [Member]        
Concentrations of risk percentage 100.00%   100.00%  
Two Vendor [Member]        
Concentrations of risk percentage 59.00%   71.00%  
One Vendor [Member]        
Concentrations of risk percentage       100.00%
One Vendor [Member] | Accounts Payable [Member]        
Concentrations of risk percentage 100.00% 89.00% 100.00%  
XML 86 R46.htm IDEA: XBRL DOCUMENT v3.20.1
Prepayments and Deposits - Schedule of Prepaid Expenses and Deposits (Details) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Prepaid expenses $ 2,641 $ 21,081 $ 2,702
Deposits to supplier 266,552 477,254 507,367
Total prepaid expenses and deposits $ 269,193 $ 498,335 $ 510,069
XML 87 R42.htm IDEA: XBRL DOCUMENT v3.20.1
Investment in Non-Marketable Securities (Details Narrative)
Dec. 31, 2019
USD ($)
shares
Dec. 31, 2019
MYR (RM)
shares
Jun. 30, 2019
USD ($)
shares
Apr. 03, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
shares
Apr. 16, 2018
$ / shares
Mar. 09, 2018
$ / shares
Ordinary shares authorized 1,000,000,000 1,000,000,000 1,000,000,000   1,000,000,000    
Ordinary shares issued 376,275,500 376,275,500 376,275,500   376,275,500    
Ordinary shares outstanding 376,275,500 376,275,500 376,275,500   376,275,500    
Share purchased price per share | $ / shares           $ 0.0001 $ 1.00
Phoenix Plus Corporation [Member]              
Investment amount | $ $ 1,500   $ 1,500 $ 1,500 $ 1,500    
Equity interest percentage       5.00%      
Shares purchased during period       300,000,000      
Share purchased price per share | $ / shares       $ 0.0001      
Phoenix Plus Corporation [Member] | Common Stock [Member]              
Shares purchased during period       15,000,000      
Maximum [Member]              
Equity interest percentage 20.00% 20.00%          
Minimum [Member]              
Equity interest percentage 17.86% 17.86%          
Director [Member]              
Investment amount | $ $ 863,592            
Equity interest percentage 20.00% 20.00%          
Ordinary shares authorized 2,500,000 2,500,000          
Ordinary shares issued 2,500,000 2,500,000          
Ordinary shares outstanding 2,500,000 2,500,000          
Director [Member] | MYR Currency [Member]              
Investment amount | RM   RM 3,500,000          
Mr. How Kok Choong [Member]              
Investment amount | $ $ 730,637            
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Summary of Significant Accounting Policies (Policies)
6 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Basis of Presentation

Basis of presentation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

Change of year end

Change of year end

 

As of December 31, 2019, the Company changed its fiscal year end from June 30 to December 31. The consolidated financial statements consist of a six-month transition period ended December 31, 2019 and 2018 (unaudited), and the fiscal years ended June 30, 2019 and 2018.

Basis of Consolidation

Basis of consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

 

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

Use of Estimates

Use of estimates

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for deferred tax assets and uncertain tax position, and impairment of investment in non-marketable securities. Actual results could differ from these estimates.

Cash and Cash Equivalents

Cash and cash equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less.

Accounts receivable - related party

Accounts receivable – related party

 

Accounts receivable – related party 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. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of December 31, 2019, June 30, 2019 and December 31, 2018, all of the Company’s accounts receivable balance are due from a related party, as a result, no valuation allowance was made.

Prepayments and deposits

Prepayments and deposits

 

Prepayments and deposits are cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary.

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. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares representing 20% to 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or higher to represent significant influence.

Investment in marketable equity securities

Investment in marketable equity securities

 

Prior to July 1, 2019, marketable securities included in investment in marketable equity securities (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities (non-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.

 

On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Investments in marketable equity securities (non-current) are reported at fair value with changes in fair value recognized in the Company’s consolidated statements of operations and comprehensive loss in the caption of “unrealized holding losses on marketable securities” in each reporting period.

Investment in Non-marketable Securities

Investment in non-marketable equity securities

 

Prior to July 1, 2019, investments in non-marketable equity securities (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.

 

On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Due to the Company’s non-marketable equity securities (non-current) does not qualify for the practical expedient to estimate fair value in accordance with ASC 820-10-35-59, the Company has selected to record its investments in non-marketable equity securities (non-current) at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issue.

 

At each reporting period, the Company will make a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. The qualitative assessment indicators include, but are not limited to: (1) A significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) A significant adverse change in the regulatory, economic, or technological environment of the investee; (iii) A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; (iv) A bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and (v) Factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. If the qualitative assessment indicators indicated that the non-marketable equity securities (non-current) is deemed to be impaired, the Company would recognize the impairment loss equal to the difference between the fair value of the investment and its carrying amount.

Revenue Recognition

Revenue recognition

 

On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2019. This did not result in an adjustment to retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations.

 

The core principle underlying the revenue recognition of this ASU allows the Company to recognize- revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products.

 

The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

 

The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection.

 

Prior to July 1, 2019, 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 health and wellness 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.

 

The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption on July 1, 2019, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition.

 

Sales of Health and Wellness products

 

- Performance obligations satisfied at a point in time

 

On July 1, 2019, the Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods, which is generally similar to when its delivery has occurred prior to July 1, 2019. Such revenues are recognized at a point in time after all performance obligations are satisfied. The revenue is recorded net of estimated discounts and return allowances. Historically, there were no sales return as the Company’s products sold are not refundable, returnable or exchangeable.

 

Disaggregated information of revenues by products are as follows:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
                         
Survivor Select   $ -     $ 204,138     $ 203,815     $ 104,656  
Energized Mineral Concentrate     100,270       222,789       361,092       66,573  
Ionized Cal-Mag     -       -       55,731       43,124  
Omega Blend     68,927       97,170       165,999       68,561  
BetaMaxx     67,789       87,793       211,280       126,191  
Iron     -       2,813       2,809       20,270  
Young Formula     -       -       117,480       57,630  
Organic Youth Care Cleansing Bar     17,206       -       17,751       -  
Energetique Hyaluronic Acid Serum     175,170       -       -       -  
Trim+     -       -       198,862       -  
Lipomask     -       70,585       211,238       -  
Total revenues   $ 429,362     $ 685,288     $ 1,546,057     $ 487,005  

Cost of Revenue

Cost of revenue

 

Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers

Selling, General, Administrative and Operating Expenses

Selling, general and administrative expenses

 

Selling, general and administrative expenses are primarily comprised of rental of office premises, travelling, licensing and professional fees.

Income Taxes

Income taxes

 

The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

 

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax.

 

The Company conducts much of its businesses activities in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities.

Comprehensive income (loss)

Comprehensive income (loss)

 

Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

Earnings (loss) per share

Earnings (loss) per share

 

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Foreign currencies translation and transaction

Foreign currencies translation and transaction

 

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$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates is the Malaysian Ringgit (“MYR”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency.

 

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. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

 

Translation of foreign currencies 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,

    As of and for the year ended
June 30,
 
    2019     2018     2019     2018  
                         
Period-end MYR : US$1 exchange rate     4.09       4.14       4.13       4.03  
Period-average MYR : US$1 exchange rate     4.16       4.13       4.13       4.21  
Period-end HKD : US$1 exchange rate     7.79       7.83       7.81       -  
Period-average HKD : US$1 exchange rate     7.83       7.84       7.84       -  
Period-end AUD : US$1 exchange rate     1.43       -       1.42       -  
Period-average AUD : US$1 exchange rate     1.46       -       1.42       -  

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.

Fair Value of Financial Instruments

Fair value of financial instruments

 

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

 

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

 

  Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
  Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
  Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.

Operating leases

Operating leases

 

A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term.

 

Effective July 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. There is no impact from the adoption of ASC 842 as of July 1, 2019, as the Company did not have any existing leases with a lease term in excess of twelve months on July 1, 2019

Recent Accounting Pronouncements

Recent accounting pronouncements

 

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

 

In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.

 

Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

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 is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements.

 

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 due the Company is qualified as an emerging growth company. The Company is currently evaluating the impact of ASU 2019-05 will have on its consolidated financial statements.

  

In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

Reclassification

Reclassification

 

Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassifying $366,834 impairment in cost of investments from selling, general and administrative expenses to other income (expenses) for the year ended June 30, 2019, reclassifying accounts receivable – related party of $78,272 as of June 30, 2019 to be net against other payables and accrued liabilities, and reclassifying cash inflows of $78,272 from changes in other payables and accrued liabilities to accounts receivable – related party for the year ended June 30, 2019. These reclassifications have no effect on the reported revenues, net loss or total assets.

XML 90 R9.htm IDEA: XBRL DOCUMENT v3.20.1
Summary of Significant Accounting Policies
6 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes.

 

Basis of presentation

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”).

 

Change of year end

 

As of December 31, 2019, the Company changed its fiscal year end from June 30 to December 31. The consolidated financial statements consist of a six-month transition period ended December 31, 2019 and 2018 (unaudited), and the fiscal years ended June 30, 2019 and 2018.

 

Basis of consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.

 

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include allowance for doubtful accounts, allowance for deferred tax assets and uncertain tax position, and impairment of investment in non-marketable securities. Actual results could differ from these estimates.

 

Cash and cash equivalents

 

Cash and cash equivalents are carried at cost and represent cash on hand, time deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less.

 

Accounts receivable – related party

 

Accounts receivable – related party 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. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of December 31, 2019, June 30, 2019 and December 31, 2018, all of the Company’s accounts receivable balance are due from a related party, as a result, no valuation allowance was made.

 

Prepayments and deposits

 

Prepayments and deposits are cash deposited or advanced to suppliers for future inventory purchases or service providers for future services. This amount is refundable and bears no interest. For any prepayments and deposits determined by management that such advances will not be in receipts of inventories, services, or refundable, the Company will recognize an allowance account to reserve such balances. Management reviews its prepayments and deposits on a regular basis to determine if the allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary.

 

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. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares representing 20% to 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company generally considers an ownership interest of 20% or higher to represent significant influence.

  

Investment in marketable equity securities

 

Prior to July 1, 2019, marketable securities included in investment in marketable equity securities (non-current) are stated at the lower of cost or market in the aggregate. Other marketable securities (non-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.

 

On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Investments in marketable equity securities (non-current) are reported at fair value with changes in fair value recognized in the Company’s consolidated statements of operations and comprehensive loss in the caption of “unrealized holding losses on marketable securities” in each reporting period.

 

Investment in non-marketable equity securities

 

Prior to July 1, 2019, investments in non-marketable equity securities (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.

 

On July 1, 2019, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Due to the Company’s non-marketable equity securities (non-current) does not qualify for the practical expedient to estimate fair value in accordance with ASC 820-10-35-59, the Company has selected to record its investments in non-marketable equity securities (non-current) at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issue.

 

At each reporting period, the Company will make a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. The qualitative assessment indicators include, but are not limited to: (1) A significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee; (ii) A significant adverse change in the regulatory, economic, or technological environment of the investee; (iii) A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; (iv) A bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and (v) Factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. If the qualitative assessment indicators indicated that the non-marketable equity securities (non-current) is deemed to be impaired, the Company would recognize the impairment loss equal to the difference between the fair value of the investment and its carrying amount.

  

Revenue recognition

 

On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC Topic 606) using the modified retrospective method for contracts that were not completed as of June 30, 2019. This did not result in an adjustment to retained earnings upon adoption of this new guidance as the Company’s revenue was recognized based on the amount of consideration expected to receive in exchange for satisfying the performance obligations.

 

The core principle underlying the revenue recognition of this ASU allows the Company to recognize- revenue that represents the transfer of goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange. This will require the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. The Company’s revenue streams are recognized at a point in time for the Company’s sale of health and wellness products.

 

The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

 

The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of substantially collection.

 

Prior to July 1, 2019, 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 health and wellness 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.

 

The application of the five-step model to the revenue streams compared to the prior guidance did not result in significant changes in the way the Company records its revenue. Upon adoption on July 1, 2019, the Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and confirmed that there were no differences in the pattern of revenue recognition.

 

Sales of Health and Wellness products

 

- Performance obligations satisfied at a point in time

 

On July 1, 2019, the Company derives its revenues from sales contracts with its customers with revenues being recognized when control of the health and wellness products are transferred to its customer at the Company’s office or shipment of the goods, which is generally similar to when its delivery has occurred prior to July 1, 2019. Such revenues are recognized at a point in time after all performance obligations are satisfied. The revenue is recorded net of estimated discounts and return allowances. Historically, there were no sales return as the Company’s products sold are not refundable, returnable or exchangeable.

 

Disaggregated information of revenues by products are as follows:

 

    For the six months ended     For the years ended  
    December 31, 2019     December 31, 2018     June 30, 2019     June 30, 2018  
          (Unaudited)              
                         
Survivor Select   $ -     $ 204,138     $ 203,815     $ 104,656  
Energized Mineral Concentrate     100,270       222,789       361,092       66,573  
Ionized Cal-Mag     -       -       55,731       43,124  
Omega Blend     68,927       97,170       165,999       68,561  
BetaMaxx     67,789       87,793       211,280       126,191  
Iron     -       2,813       2,809       20,270  
Young Formula     -       -       117,480       57,630  
Organic Youth Care Cleansing Bar     17,206       -       17,751       -  
Energetique Hyaluronic Acid Serum     175,170       -       -       -  
Trim+     -       -       198,862       -  
Lipomask     -       70,585       211,238       -  
Total revenues   $ 429,362     $ 685,288     $ 1,546,057     $ 487,005  

 

Cost of revenue

 

Cost of revenue includes freight-in and the purchase cost of manufactured goods for sale to customers

 

Selling, general and administrative expenses

 

Selling, general and administrative expenses are primarily comprised of rental of office premises, travelling, licensing and professional fees.

  

Income taxes

 

The Company accounts for income taxes in accordance with U.S. GAAP for income taxes. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Deferred taxes is accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities.

 

An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax.

 

The Company conducts much of its businesses activities in Hong Kong and is subject to tax in this jurisdiction. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities.

 

Comprehensive income (loss)

 

Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

 

Earnings (loss) per share

 

The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

  

Foreign currencies translation and transaction

 

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$”) albeit its functional currency being the primary currency of the economic environment in which the entity operates is the Malaysian Ringgit (“MYR”). The Company’s subsidiary in Hong Kong maintains its books and record in Hong Kong Dollars (“HK$”), similar to its functional currency.

 

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. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

 

Translation of foreign currencies 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,

    As of and for the year ended
June 30,
 
    2019     2018     2019     2018  
                         
Period-end MYR : US$1 exchange rate     4.09       4.14       4.13       4.03  
Period-average MYR : US$1 exchange rate     4.16       4.13       4.13       4.21  
Period-end HKD : US$1 exchange rate     7.79       7.83       7.81       -  
Period-average HKD : US$1 exchange rate     7.83       7.84       7.84       -  
Period-end AUD : US$1 exchange rate     1.43       -       1.42       -  
Period-average AUD : US$1 exchange rate     1.46       -       1.42       -  

 

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.

  

Fair value of financial instruments

 

The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.

 

The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:

 

  Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
  Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
  Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

 

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.

 

Operating leases

 

A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term.

 

Effective July 1, 2019, the Company adopted ASU 2016-02, “Leases” (Topic 842), and elected the practical expedients that do not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. There is no impact from the adoption of ASC 842 as of July 1, 2019, as the Company did not have any existing leases with a lease term in excess of twelve months on July 1, 2019

 

Recent accounting pronouncements

 

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

 

In July 2017, the FASB Issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815). The amendments in Part I of the Update change the reclassification analysis of certain equity-lined financial instruments (or embedded features) with down round features. The amendments in Part II of this Update re-characterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.

 

Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

 

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 is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements.

 

In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 due the Company is qualified as an emerging growth company. The Company is currently evaluating the impact of ASU 2019-05 will have on its consolidated financial statements.

  

In January 2020, the FASB issued ASU 2020-01 to clarify the interaction of the accounting for equity securities under ASC 321 and investments accounted for under the equity method of accounting in ASC 323 and the accounting for certain forward contracts and purchased options accounted for under ASC 815. With respect to the interactions between ASC 321 and ASC 323, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting when applying the measurement alternative in ASC 321, immediately before applying or upon discontinuing the equity method of accounting. With respect to forward contracts or purchased options to purchase securities, the amendments clarify that when applying the guidance in ASC 815-10-15-141(a), an entity should not consider whether upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in ASC 323 or the fair value option in accordance with ASC 825. The ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

 

Reclassification

 

Certain prior year amounts have been reclassified to conform to the current year presentation, such as reclassifying $366,834 impairment in cost of investments from selling, general and administrative expenses to other income (expenses) for the year ended June 30, 2019, reclassifying accounts receivable – related party of $78,272 as of June 30, 2019 to be net against other payables and accrued liabilities, and reclassifying cash inflows of $78,272 from changes in other payables and accrued liabilities to accounts receivable – related party for the year ended June 30, 2019. These reclassifications have no effect on the reported revenues, net loss or total assets.

XML 91 R27.htm IDEA: XBRL DOCUMENT v3.20.1
Investment In Non-Marketable Securities (Tables)
6 Months Ended
Dec. 31, 2019
Investment In Non-marketable Securities  
Schedule of Investment in Non Marketable Securities

Unreserved Sdn Bhd  

As of

December 31, 2019

   

As of

June 30, 2019

   

As of

December 31, 2018

 
                      (Unaudited)  
Cost of investment   $ -     $ 832,335     $ 832,335  
Less: loss of equity of investee company     -       (124,225 )     (98,140 )
Add: gain on deemed disposal of shares in investee company     -       16,509       -  
Investment in investee company   $ -     $ 724,619     $ 734,195  
Reclassify to investment in non-marketable securities     -       (724,619 )     -  
Investment in investee company   $ -     $ -     $ -  
                         
Investment in non-marketable securities   $ 730,637     $ 724,619     $ -  
                         
Phoenix Plus Corporation                        
Cost of investment   $ 1,500     $ 1,500     $ 1,500  
                         
Total investment in non-marketable securities   $ 732,137     $ 726,119     $ -  

XML 92 R5.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Balance at Jun. 30, 2017 $ 37,135 $ 2,367,875 $ (100,362) $ 2,304,648
Balance, shares at Jun. 30, 2017 371,350,000        
Net loss (130,274) (130,274)
IPO completed on March 9, 2018 at $1.00 per share $ 293 2,925,207 2,925,500
IPO completed on March 9, 2018 at $1.00 per share, shares 2,925,500        
Shares issued to Adam, Network 1 and Damon completed on April 16, 2018 at $0.0001 per share $ 200 200
Shares issued to Adam, Network 1 and Damon completed on April 16, 2018 at $0.0001 per share, shares 2,000,000        
Foreign currency translation adjustment (1,293) (1,293)
Balance at Jun. 30, 2018 $ 37,628 5,293,082 (230,636) (1,293) 5,098,781
Balance, shares at Jun. 30, 2018 376,275,500        
Net loss (142,446) (142,446)
Foreign currency translation adjustment (1) (1)
Balance at Dec. 31, 2018 $ 37,628 5,293,082 (373,082) (1,294) 4,956,334
Balance, shares at Dec. 31, 2018 376,275,500        
Balance at Jun. 30, 2018 $ 37,628 5,293,082 (230,636) (1,293) 5,098,781
Balance, shares at Jun. 30, 2018 376,275,500        
Net loss         (519,642)
Balance at Jun. 30, 2019 $ 37,628 5,293,082 (750,278) (79) 4,580,353
Balance, shares at Jun. 30, 2019 376,275,500        
Balance at Dec. 31, 2018 $ 37,628 5,293,082 (373,082) (1,294) 4,956,334
Balance, shares at Dec. 31, 2018 376,275,500        
Net loss (377,196) (377,196)
Foreign currency translation adjustment 1,215 1,215
Balance at Jun. 30, 2019 $ 37,628 5,293,082 (750,278) (79) 4,580,353
Balance, shares at Jun. 30, 2019 376,275,500        
Net loss (338,931) (338,931)
Foreign currency translation adjustment 9,864 9,864
Balance at Dec. 31, 2019 $ 37,628 $ 5,293,082 $ (1,089,209) $ 9,785 $ 4,251,286
Balance, shares at Dec. 31, 2019 376,275,500        
XML 93 R1.htm IDEA: XBRL DOCUMENT v3.20.1
Document and Entity Information - USD ($)
6 Months Ended
Dec. 31, 2019
Mar. 25, 2020
Jun. 28, 2019
Document And Entity Information      
Entity Registrant Name Agape ATP Corp    
Entity Central Index Key 0001713210    
Document Type 10-K    
Document Period End Date Dec. 31, 2019    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business Flag true    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
Entity Shell Company false    
Entity Public Float     $ 804,186,900
Entity Common Stock, Shares Outstanding   376,275,500  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2019    
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