UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of May 2023
Commission File Number
(Translation of registrant’s name into English)
3rd Floor, No. 168 Fengqi Road
Jimei District, Xiamen City, Fujian Province
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☒ Form 40-F ☐
Explanatory Note
Pop Culture Group Co., Ltd. (the “Company”) is furnishing its unaudited financial statements for the six months ended December 31, 2022 and incorporating such financial statements into the Company’s registration statement referenced below. The financial statements and notes are attached as Exhibit 99.1 to this report. Management’s Discussion and Analysis of Financial Condition and Results of Operations for the six months ended December 31, 2022 is attached as Exhibit 99.2 to this report.
This Form 6-K is hereby incorporated by reference into the registration statement on Form F-3 of the Company (File Number 333-266130), as amended, and into the prospectus outstanding under the foregoing registration statement, to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
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EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Unaudited Condensed Consolidated Financial Statements for the Six Months Ended December 31, 2022 and 2021 (included in Exhibit 99.2) | |
| 99.2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
| 101.INS | Inline XBRL Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
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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.
| Pop Culture Group Co., Ltd. | ||
| Date: May 4, 2023 | By: | /s/ Zhuoqin Huang |
| Name: | Zhuoqin Huang | |
| Title: | Chairman and Chief Executive Officer | |
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Exhibit 99.2
Management’s discussion and analysis of the financial condition and results of operations of Pop Culture Group Co., Ltd. (the “Company,” “we,” “our,” or “us”) for the semi-annual period ended December 31, 2022 is set forth below:
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this filing. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements. All statements contained in this report other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the “Risk Factors” section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
OVERVIEW
We conduct our business in mainland China through the PRC operating entities. With the values of hip-hop culture at their core and the younger generation as their primary target audience, the PRC operating entities host entertainment events, operate hip-hop related online programs, and provide event planning and execution services and brand promotion services to corporate clients. They seek to create value for stakeholders in all parts of the hip-hop ecosystem, from fans to artists, corporate clients, and sponsors.
The PRC operating entities have in recent years focused on developing and hosting their own hip-hop events. The PRC operating entities own an extensive portfolio of intellectual property rights related to hip-hop events, including a stage play, three dance competitions or events, two cultural and musical festivals, and two promotional parties that feature live hip-hop performances in karaoke bars or amusement parks to promote hip-hop culture, and they cooperate with music companies and artists to host various concerts in mainland China; starting from March 2020, the PRC operating entities have been developing and operating hip-hop related online programs (collectively, “Event Hosting”). The PRC operating entities’ concerts and hip-hop events generated an aggregate attendance of 209,000 and 203,233 during the six months ended December 31, 2022 and 2021, respectively, and their online hip-hop programs generated over 592 million and 156.86 million views during the six months ended December 31, 2022 and 2021, respectively. The PRC operating entities generate revenue from their Event Hosting business by providing sponsorship packages to advertisers in exchange for sponsorship fees and by selling tickets for those concerts.
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The PRC operating entities help corporate clients with the design, logistics, and layout of events, coordinate and supervise the actual event set-up and implementation, and generate revenue through service fees (“Event Planning and Execution”). Their services feature significant hip-hop elements and cover each aspect of corporate and marketing events, including communication, planning, design, production, reception, execution, and analysis. During the six months ended December 31, 2022 and 2021, the PRC operating entities served 23 and 11 clients in 70 and 23 events with respect to event planning and execution, respectively.
The PRC operating entities provide brand promotion services, such as trademark and logo design, visual identity system design, brand positioning, brand personality design, and digital solutions, to corporate clients for service fees (“Brand Promotion”).
We believe that the main reason corporate clients hire the PRC operating entities to plan and execute events and provide brand promotion services geared towards the younger generation is for their deep understanding of the taste and preferences of this generation.
The PRC operating entities also sell digital collections to individual collectors, provide music recording services to a corporate client and SaaS software services to hip-hop dance training institutions for service fees, and distribute advertisements for corporate customers for service fees (“Other Services”).
RECENT DEVELOPMENTS
On July 14, 2022, the Company filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form F-3 under the Securities Act utilizing a “shelf” registration process with offering and selling up to $200,000,000 of the Class A ordinary shares, par value $0.001 per share, debt securities, warrants, rights, and units, or any combination thereof, together or separately as described in the prospectus. The registration statement was declared effective by the SEC on November 18, 2022.
COVID-19 IMPACT
The COVID-19 pandemic has resulted in the implementation of significant governmental measures, including lockdowns, closures, quarantines, and travel bans, intended to control the spread of the virus. The Chinese government has ordered quarantines, travel restrictions, and the temporary closure of stores and facilities. Companies are also taking precautions, such as requiring employees to work remotely, imposing travel restrictions and temporarily closing businesses.
Since the PRC operating entities primarily engage in the businesses of hosting events and providing services related to events, their results of operations and financial condition for the six months ended December 31, 2022 were adversely affected by the spread of COVID-19 as the Chinese government took a number of actions, including encouraging employees of enterprises to work remotely from home and cancelling public activities. In particular, at certain periods or in certain cities, all of the offline events the PRC operating entities expected to host or plan and execute were suspended because governmental authorities-imposed restrictions on large scale in-person gatherings, resulting in a significant decrease in revenue from the event hosting and the event planning and execution, and the PRC operating entities also suffered a decrease in the marketing business because of the sluggish demand for advertising or marketing activities during the six months ended December 31, 2022. The PRC operating entities also experienced difficulties in collecting accounts receivable during the first half of fiscal 2023.
The COVID-19 pandemic may continue to materially and adversely affect our business operations and condition and operating results for fiscal 2023, including delays in their execution of offline events, material negative impact on their total revenue, slower collection of accounts receivable, and additional allowance for doubtful accounts. As the pandemic control measures are being lifted, uncertainties in economic recovery and the operational difficulties faced by their clients during the earlier stages of the pandemic will both have an impact on the PRC operating entities.
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KEY FACTORS AFFECTING OUR FINANCIAL PERFORMANCE
In assessing our financial performance, we consider a variety of financial performance measures, including principal growth in net revenue and gross profit, our ability to control costs and operating expenses to improve our operating efficiency and net income. Our review of these indicators facilitates timely evaluation of the performance of our business and effective communication of results and key decisions, allowing our business to respond promptly to competitive market conditions and different demands and preferences from our customers. The key measures that we use to evaluate the performance of our business are set forth below.
RESULTS OF OPERATIONS
Revenue
Following table presents our revenue by revenue sources and by proportion:
| For the Six Months Ended December 31, | Change | |||||||||||||||||||||||
| 2022 | % | 2021 | % | Amount | % | |||||||||||||||||||
| Event Hosting | $ | 2,182,778 | 19 | % | $ | 11,966,659 | 59 | % | $ | (9,783,881 | ) | (82 | )% | |||||||||||
| Event Planning and Execution | 3,143,637 | 28 | % | 6,724,615 | 33 | % | (3,580,978 | ) | (53 | )% | ||||||||||||||
| Brand Promotion | 5,566,143 | 50 | % | 1,456,929 | 7 | % | 4,109,214 | 282 | % | |||||||||||||||
| Other Services | 363,213 | 3 | % | - | - | % | 363,213 | - | % | |||||||||||||||
| Total revenue | $ | 11,255,771 | 100 | % | $ | 20,148,203 | 100 | % | $ | (8,892,432 | ) | (44 | )% | |||||||||||
Total revenue for the six months ended December 31, 2022 was US$11.26 million, representing a decrease of US$8.89 million, or 44%, year-over-year.
Revenue for event hosting and event planning and execution decreased by 82% and 53% from US$11.97 million and US$6.72 million for six month ended December 31, 2021 to US$2.18 million and US$3.14 million for six month ended December 31, 2022, respectively, primarily due to the dual effects of pandemic control and economic downturn. For the event hosting segment, the 2022 CBC finals were postponed to March 2023 because of the pandemic situation.
Revenue for brand promotion increased by 282% from US$1.46 million for six month ended December 31, 2021 to US$5.56 million for six month ended December 31, 2022, primarily attributable to the growth in the number of advertisers and refined operation based on industry attributes.
Other revenue for six month ended December 31, 2022 was US$0.36 million including software development services and digital collection sales. There was no such revenue for the same period of last fiscal year.
Cost of Revenue
The cost of revenue for six months ended December 31, 2022 decreased by 15% to US$13.63 million from US$16.03 million of the previous period.
Cost of Event Hosting Revenue
Cost of event hosting revenue decreased by 32% from 8.96 million for the six months ended December 31, 2021 to US$6.12 million for the six months ended December 31, 2022, which was due to the decrease in the revenue for event hosting, offset by the Company’s investment in the promotion and implementation in the segment to maintain a high level of scale and quality of its intellectual property.
Cost of Event Planning and Execution Revenue
Cost of event planning and execution revenue decreased by 54% from US$5.78 million for the six months ended December 31, 2021 to US$2.64 million for the six months ended December 31, 2022, which was in line with the decrease in the revenue for event planning and execution.
Cost of Brand Promotion Revenue
Cost of brand promotion revenue increased by 266% from US$1.30 million for the six months ended December 31, 2021 to US$4.74 million for the six months ended December 31, 2022, which was in line with the growth in the revenue for brand promotion.
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The cost of revenue was derived from the following sources:
| For the Six Months Ended December 31, | Change | |||||||||||||||||||||||
| 2022 | % | 2021 | % | Amount | % | |||||||||||||||||||
| Event Hosting | $ | 6,124,146 | 45 | % | $ | 8,956,898 | 56 | % | $ | (2,832,752 | ) | (32 | )% | |||||||||||
| Event Planning and Execution | 2,644,865 | 19 | % | 5,778,554 | 36 | % | (3,133,689 | ) | (54 | )% | ||||||||||||||
| Brand Promotion | 4,744,569 | 35 | % | 1,295,843 | 8 | % | 3,448,727 | 266 | % | |||||||||||||||
| Other Services | 113,623 | 1 | % | - | - | % | 113,623 | - | % | |||||||||||||||
| Total Cost of revenue | $ | 13,627,203 | 100 | % | $ | 16,031,295 | 100 | % | $ | (2,404,092 | ) | (15 | )% | |||||||||||
Gross Profit and Gross Margin
Gross profit decreased by 158% from US$4.12 million in six months ended December 31, 2021 to negative US$2.34 million in the same period of 2022. Gross margin was negative 21% in six months ended December 31, 2022 compared to 20% of the previous period. It was primarily driven by the low margin in the segment of event hosting, as the decrease in the revenue outpaced the decrease in the cost of revenue. The Company incurred a large amount of promotion costs for its CBC hip-hop event, but the event was not able to generate the related sponsorship revenue due to the impact of the COVID-19 pandemic. We are taking measures to manage costs effectively and improve overall efficiency.
The following table displays the gross profit:
| For the Six Months Ended December 31, | Change | |||||||||||||||||||||||||||||||
| 2022 | % | Gross Margin | 2021 | % | Gross Margin | Amount | % | |||||||||||||||||||||||||
| Event Hosting | $ | (3,941,368 | ) | 167 | % | (181 | )% | $ | 3,009,761 | 73 | % | 25 | % | $ | (6,951,129 | ) | (231 | )% | ||||||||||||||
| Event Planning and Execution | 498,772 | (21 | )% | 16 | % | 946,061 | 23 | % | 14 | % | (447,289 | ) | (47 | )% | ||||||||||||||||||
| Brand Promotion | 821,574 | (35 | )% | 15 | % | 161,086 | 4 | % | 11 | % | 660,488 | 410 | % | |||||||||||||||||||
| Other services | 249,590 | (11 | )% | 69 | % | - | - | % | - | % | 249,590 | - | % | |||||||||||||||||||
| Total gross profit | $ | (2,371,432 | ) | 100 | % | (21 | )% | $ | 4,116,908 | 100 | % | 20 | % | $ | (6,488,340 | ) | (158 | )% | ||||||||||||||
Operating Expenses
Total operating expenses for the six months ended December 31, 2022 decreased by 26% to US$2.25 million from US$3.04 million for the previous period. Operating expenses as a percentage of total revenue increased to 20.0% from 15.1% in the same period of last fiscal year.
The following table shows the breakdown of our operating expenses:
| For the Six Months Ended December 31, | Change | |||||||||||||||||||||||
| 2022 | % | 2021 | % | Amount | % | |||||||||||||||||||
| Selling and marketing expenses | $ | 448,371 | 20 | % | $ | 193,720 | 6 | % | $ | 254,651 | 131 | % | ||||||||||||
| General and administrative expenses | 1,800,312 | 80 | % | 2,844,154 | 94 | % | (1,043,842 | ) | (37 | )% | ||||||||||||||
| Total operating expenses | $ | 2,248,683 | 100 | % | $ | 3,037,874 | 100 | % | $ | (789,191 | ) | (26 | )% | |||||||||||
| ● | Selling and marketing expenses for the six months ended December 31, 2022 were US$0.45 million, representing an increase of 131% year-over-year from US$0.19 million in the same period of last fiscal year. This increase was primarily due to the sales and promotion expenses of Jam Box and the business development expenses for the new entity Xiamen Pop Shuzhi Culture Communication Co., Ltd. established in May 2022. |
| ● | General and administrative expenses for the six months ended December 31, 2022 were US$1.80 million, representing a decrease of 37% year-over-year from US$2.84 million in the previous period, as there were IPO professional service fees incurred in the same period of last fiscal year. |
Operating Profit for the Period
Operating profit was US$4.65 million in the first six months of fiscal 2023, compared to US$0.96 million in the same period of fiscal 2022.
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Income Tax Expenses
Income tax expenses amounted to US$176,028 and US$512,259 for the first six months of fiscal 2023 and fiscal 2022, respectively. The decrease resulted from the decreased taxable income.
Net Profit for the Period
Net loss attributable to the Company’s equity holders for the first six months of fiscal 2023 was US$4.71 million, compared to net profit of US$0.45 million in the same period of fiscal 2022.
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2022, the combined balance of the Company’s cash, cash equivalents, term deposits, and short-term investments amounted to US$3.86 million, compared to US$14.4 million as of June 30, 2022.
Our principal sources of liquidity are cash and cash equivalents and cash flows generated from our operations. As of December 31, 2022, we had cash and cash equivalents of approximately US$1.16 million. In the amount of our cash and cash equivalents, US$0.9 million was held in financial institutions inside Mainland China and US$0.2 million was held in financial institutions outside of Mainland China. The Company is actively applying for new bank credit and expects to obtain a new credit line of not less than RMB10 million in July 2023. We believe our current liquidity and capital resources are sufficient to meet anticipated working capital needs (net cash used in operating activities), commitments, and capital expenditures for at least the next 12 months. We may, however, require additional cash resources due to changes in business conditions and other future developments, or changes in general economic conditions.
Cash Generating Ability
Our cash flows were summarized below:
| For the Six Months Ended December 31, | For the Six Months Ended December 31, | |||||||
| 2022 | 2021 | |||||||
| Net cash (used in) generated from operating activities | (5,787,201 | ) | (5,485,143 | ) | ||||
| Net cash (used in) generated from investing activities | (7,457,178 | ) | (74,411 | ) | ||||
| Net cash generated from (used in) financing activities | 796,554 | 32,387,841 | ||||||
| Effect of exchange rates on cash | (789,060 | ) | 362,729 | |||||
Net Cash Provided by/(Used in) Operating Activities
Net cash used in operating activities was US$5.79 million for the six months ended December 31, 2022, compared to net cash used in operating activities of US$5.5 million for the same period of last fiscal year.
Net Cash Provided by/(Used in) Investing Activities
The net cash used in investing activities was US$7.46 million for the six months ended December 31, 2022, representing an increase of US$7.38 million as compared to $0.07 in the same period of fiscal 2022, primarily attributable to the investment in the film production of “TianLongBabu” in the amount of US$2.72 million, a deposit to Lihe Trading Limited on “Fear of God” copyright negotiation in the amount of US$2.8 million, and a deposit to Wanyee Trading Company Limited on “Stussy” copyright negotiation in the amount of US$1.8 million.
Net Cash Provided by/(Used in) Financing Activities
The net cash generated from financing activities was US$0.80 million for the six months ended December 31, 2022, a decrease of US$32.4 million compared to the same period of the last fiscal year, primarily attributable to the capital injection in the previous period.
EXCHANGE RATE
This report contains translations of certain RMB amounts into U.S. dollars (“USD,” “US$,” or $) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.8972 to US$1.00, the noon buying rate in effect on December 31, 2022, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
OFF-BALANCE SHEET ARRANGEMENTS
As of December 31, 2022, there were no off-balance sheet arrangements.
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POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In U.S. dollars, except the number of shares)
| As of December 31 | As of June 30 | |||||||
| 2022 | 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | $ | ||||||
| Short-Term Investment | ||||||||
| Accounts receivable, net | ||||||||
| Advance to suppliers | ||||||||
| Due from related parties | ||||||||
| Prepaid expenses and other current assets | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| Property and equipment, net | ||||||||
| Intangible assets, net | ||||||||
| Operating right-of-use asset | ||||||||
| Prepaid Taxes | ||||||||
| Deferred tax assets | ||||||||
| Other non-current assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Short-term bank loans | $ | $ | ||||||
| Accounts payable | ||||||||
| Deferred revenue | ||||||||
| Taxes payable | ||||||||
| Due to a related party | ||||||||
| Accrued liabilities and other payables | ||||||||
| Operating lease liability - current | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| Long-term bank loans | ||||||||
| Operating lease liability - non-current | ||||||||
| TOTAL LIABILITIES | ||||||||
| Commitments and contingencies | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Subscription receivable | ( | ) | ( | ) | ||||
| Additional paid-in capital | ||||||||
| Statutory reserve | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive (loss) income | ( | ) | ||||||
| TOTAL POP CULTURE GROUP CO., LTD SHAREHOLDERS’ EQUITY | ||||||||
| Non-controlling interests | ||||||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In U.S. dollars, except the number of shares)
(UNAUDITED)
| For the Six Months Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| REVENUE, NET | $ | $ | ||||||
| Cost of revenue | ||||||||
| GROSS PROFIT | ( | ) | ||||||
| Selling and marketing | ||||||||
| General and administrative | ||||||||
| Total operating expenses | ||||||||
| INCOME FROM OPERATIONS | ( | ) | ||||||
| Other (expenses) income: | ||||||||
| Interest expenses, net | ( | ) | ( | ) | ||||
| Other (expenses) income, net | ||||||||
| Total other expenses, net | ( | ) | ( | ) | ||||
| INCOME BEFORE INCOME TAX PROVISION | ( | ) | ||||||
| PROVISION FOR INCOME TAXES | ||||||||
| NET INCOME | ( | ) | ||||||
| Less: net income attributable to non-controlling interests | ( | ) | ||||||
| NET INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | ( | ) | ||||||
| Other comprehensive (loss) income: | ||||||||
| Foreign currency translation adjustment | ( | ) | ( | ) | ||||
| COMPREHENSIVE INCOME | ( | ) | ||||||
| Less: comprehensive income attributable to non-controlling interest | ( | ) | ||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | $ | ( | ) | $ | ||||
| Net income per share | ||||||||
| $ | ( | ) | $ | |||||
| Basic and diluted | ||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(In U.S. dollars, except the number of shares)
(UNAUDITED)
| Ordinary shares | Subscription | Additional paid-in | Retained | Statutory | Accumulated other comprehensive | Total Pop Culture Group Co., Ltd’s Shareholders’ | Non- Controlling | Total shareholders’ | ||||||||||||||||||||||||||||||||
| Shares | Amount | receivable | capital | earnings | reserve | (loss) income | Equity | Interests | Equity | |||||||||||||||||||||||||||||||
| Balance as of June 30, 2020 | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||||||
| Shares issued for acquisition of non-controlling interests | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
| Net income for the period | - | |||||||||||||||||||||||||||||||||||||||
| Appropriation of statutory reserve | - | ( | ) | |||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||||||||||||||
| Balance as of June 30,2021 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Capital contribution from shareholders | - | |||||||||||||||||||||||||||||||||||||||
| Acquisition of Non-controlling interests | ||||||||||||||||||||||||||||||||||||||||
| Net income for the period | - | ( | ) | |||||||||||||||||||||||||||||||||||||
| Appropriation of statutory reserve | - | ( | ) | |||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
| Balance as of June 30, 2022 | $ | $ | ( | ) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Capital contribution from shareholders | - | |||||||||||||||||||||||||||||||||||||||
| Acquisition of Non-controlling interests | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||
| Net income for the period | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Appropriation of statutory reserve | - | ( | ) | |||||||||||||||||||||||||||||||||||||
| Foreign currency translation loss | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
| Balance Dec 31, 2022 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars)
(UNAUDITED)
For the Six Months Ended December 31 | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net Income | $ | ( | ) | $ | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Allowance for doubtful accounts | ||||||||
| Depreciation and amortization | ||||||||
| Amortization of operating lease right-of-use assets | ||||||||
| Deferred tax benefit | ( | ) | ||||||
| Non-cash lease expense | ( | ) | ||||||
| Loss from disposal of property and equipment | ( | ) | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Advance to suppliers | ( | ) | ( | ) | ||||
| Deferred COGS | ( | ) | ||||||
| Amounts due from related parties | ( | ) | ||||||
| Prepaid expenses and other current assets | ( | ) | ||||||
| Long-term deferred expenses | ( | ) | ||||||
| Other non-current assets | ( | ) | ( | ) | ||||
| Accounts payable | ( | ) | ||||||
| Deferred revenue | ( | ) | ||||||
| Taxes payable | ||||||||
| Accrued liabilities and other payables | ||||||||
| Due to a related party | ( | ) | ( | ) | ||||
| Operating lease liability | ( | ) | ( | ) | ||||
| Net cash provided by (used in) operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Purchase of intangible assets | ( | ) | ||||||
| deposits for long-term assets | ( | ) | ||||||
| Investment (redemption) of long-term investment | ||||||||
| Investment (redemption) of short-term investment | ( | ) | ||||||
| Net cash (used in) provided by investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term bank loans | ||||||||
| Repayments of short-term bank loans | ( | ) | ( | ) | ||||
| Proceeds from long-term bank loans | ( | ) | ||||||
| Repayments of long-term bank loans | ( | ) | ||||||
| Contribution from shareholders | ||||||||
| Payment for deferred offering costs | ||||||||
| Net cash provided by financing activities | ||||||||
| Effect of exchange rate changes | ( | ) | ||||||
| Net increase (decrease) in cash | ( | ) | ||||||
| Cash at beginning of year | ||||||||
| Cash at end of year | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Income tax paid | $ | $ | ||||||
| Interest expense paid | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
9
POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND PRINCIPAL ACTIVITIES
Xiamen Pop Culture Co., Ltd (“Pop Culture”) was incorporated in Xiamen, China on March 29, 2007 under the laws of the People’s Republic of China (the “PRC” or “China”). Pop Culture hosts entertainment events and provides event planning and execution services and brand promotion services to corporate clients.
Pop Culture has seven wholly-owned subsidiaries in the PRC as follows:
| ● | Shanghai Pupu Sibo Sports Technology Development Co., Ltd. (“Pupu Sibo,” formerly known as “Shanghai Pudu Culture Communications Co., Ltd.”), a company incorporated on March 30, 2017 in Shanghai, China; |
| ● | Xiamen Pop Network Technology Co., Ltd. (“Pop Network”), a company incorporated on June 6, 2017 in Xiamen, China; |
| ● | Guangzhou Shuzhi Culture Communication Co., Ltd (“Guangzhou Shuzhi,” formerly known as “Zhongjing Pop (Guangzhou) Culture Media Co., Ltd.”), a company incorporated on December 19, 2018 in Guangzhou, China; |
| ● | Shenzhen Pop Digital Industry Development Co., Ltd. (“Shenzhen Pop,” formerly known as “Shenzhen Pop Culture Co., Ltd.”), a company incorporated on January 17, 2020 in Shenzhen, China; |
| ● |
Hualiu Digital Entertainment (Beijing) International Culture Media Co., Ltd. (“Hualiu Digital”), a company incorporated on April 14, 2022 in Beijing, China;
| |
| ● |
Xiamen Pupu Digital Technology Co., Ltd. (“Pupu Digital”), a company incorporated on June 20, 2022 in Xiamen, China; and
| |
| ● |
Xiamen Pop Shuzhi Culture Communication Co., Ltd. (“Xiamen Shuzhi”), a company incorporated on May 16, 2022 in Xiamen, China. |
Pop Culture also holds a
Reorganization
On January 3, 2020, Pop Culture Group Co., Ltd (“Pop Group” or the “Company”) was incorporated as an exempted company with limited liability under the laws of the Cayman Islands.
On January 20, 2020, Pop Culture (HK) Holding Limited (“Pop HK”) was established as a wholly-owned subsidiary of Pop Group formed in accordance with laws and regulations of Hong Kong. Pop HK is a holding company and holds all the equity interests of Heliheng Culture Co., Ltd. (“WFOE”), which was established in the PRC on March 13, 2020.
On March 30, 2020, WFOE entered into a series
of agreements with Pop Culture and the shareholders of Pop Culture who collectively held
Between February and May 2020, the Company and
its shareholders undertook a series of corporation actions, including share issuances in February 2020, re-designation of ordinary shares
of the Company, par value $
10
The above-mentioned transactions, including the
incorporation of Pop Group, Pop HK, and WFOE, the entry into the VIE Agreements, the share issuances, share re-designation, and share
transfers, were considered a reorganization of the Company (the “Reorganization”). After the Reorganization, Pop Group ultimately
owns
In accordance with ASC 805-50-25, the Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholder controls all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries and VIE have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Furthermore, ASC 805-50-45-5 indicates that the financial statements and financial information presented for prior years shall also be retrospectively adjusted to furnish comparative information.
Acquisition of non-controlling interest in VIE
On February 9, 2021, the Company issued
The consolidated financial statements of the Company included the following entities:
| Date of incorporation | Place of incorporation | Percentage of ownership | Principal activities | |||||
| The Company | ||||||||
| Wholly owned subsidiaries | ||||||||
| Pop HK | ||||||||
| WFOE | ||||||||
| Pop Culture Global Operations Inc. | ||||||||
| Xiamen Pop Investment Co., Ltd. | ||||||||
| Fujian Pupu Shuzhi Sports Industry Development Co., Ltd. (“Shuzhi Sports”) | ||||||||
| VIE | ||||||||
| Pop Culture | ||||||||
| VIE’s subsidiaries | ||||||||
| Pupu Sibo | ||||||||
| Pop Network | ||||||||
| Guangzhou Shuzhi | ||||||||
| Shenzhen Pop | ||||||||
| Pop Sikai | ||||||||
| Pupu Digital | ||||||||
| Zhongpu Shuyuan | ||||||||
| Xiamen Qiqin Technology Co., Ltd. | ||||||||
| Shenzhen Jam box Technology Co., Ltd. | ||||||||
| Xiamen Pop Shuzhi Culture Communication Co., Ltd. | ||||||||
| Fujian Shuzhi Fuxin Exhibition Co., Ltd. |
11
Risks in relation to the VIE structure
The Company believes that the VIE Agreements are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the VIE Agreements. If the legal structure and the VIE Agreements were found to be in violation of PRC laws and regulations, the PRC government could:
| ● | revoke the business and operating licenses of the Company’s PRC subsidiary and its VIE; |
| ● | discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and its VIE; |
| ● | limit the Company’s business expansion in China by way of entering into contractual arrangements; |
| ● | impose fines or other requirements with which the Company’s PRC subsidiary and its VIE may not be able to comply; |
| ● | require the Company or the Company’s PRC subsidiary and its VIE to restructure the relevant ownership structure or operations; or |
| ● | restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance. |
The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after the elimination of intercompany transactions:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Total assets | $ | $ | ||||||
| Total liabilities | $ | $ | ||||||
| For the Six Months Ended, December 31, | ||||||||
| 2022 | 2021 | |||||||
| Total revenue | $ | $ | ||||||
| Net income | $ | ( | ) | $ | ||||
| Net cash used in operating activities | $ | $ | ( | ) | ||||
| Net cash (used in) provided by investing activities | $ | ( | ) | $ | ||||
| Net cash provided by financing activities | $ | $ | ( | ) | ||||
The Company believes that there are no assets in Pop Culture that can be used only to settle specific obligations of Pop Culture except for the registered capital of Pop Culture and non-distributable statutory reserves. As Pop Culture is incorporated as a limited liability company under the PRC Company Law, creditors of Pop Culture do not have recourse to the general credit of the Company for any of the liabilities of Pop Culture. There are no terms in any arrangements, explicitly or implicitly, requiring the Company or its subsidiaries to provide financial support to Pop Culture. However, if Pop Culture were ever to need financial support, the Company may, at its discretion and subject to statutory limits and restrictions, provide financial support to Pop Culture through loans.
12
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE, and subsidiaries of its VIE. All inter-company transactions and balances have been eliminated upon consolidation.
Use of estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates.
Recent accounting pronouncements
Recently issued ASUs by the FASB are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures.
3. ACCOUNTS RECEIVABLE, NET
As of December 31, 2022 and June 30, 2022, accounts receivable consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Accounts receivable - gross | $ | $ | ||||||
| Allowance for doubtful accounts | ( | ) | ( | ) | ||||
| Accounts receivable, net | $ | $ | ||||||
The Company recorded bad debt expenses of
$
4. PREPAID EXPENSES AND OTHER CURRENT ASSETS
As of December 31, 2022 and June 30, 2022, prepaid expenses and other current assets consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Deferred costs (1) | $ | $ | ||||||
| Deferred offering costs | ||||||||
| Other receivables | ||||||||
| Allowance for doubtful accounts (2) | ( | ) | ( | ) | ||||
| $ | $ | |||||||
| (1) |
| (2) |
13
5. PROPERTY AND EQUIPMENT
As of December 31, 2022 and June 30, 2022, property and equipment consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Leasehold improvement | $ | $ | ||||||
| Building | ||||||||
| Office equipment | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| $ | $ | |||||||
Depreciation expenses were $
6. INTANGIBLE ASSET
As of December 31, 2022 and June 30, 2022, intangible assets consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Copyright licenses | $ | $ | ||||||
| SaaS | ||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ||||
| $ | $ | |||||||
The production copyright was purchased from a
third-party production provider in November 2018 for a total cash consideration of approximately $
For six months ended December 31, 2022 and six
months ended December 31, 2021, amortization expenses amounted to $
The following is a schedule, by fiscal year, of the amortization amount of intangible assets as of December 31, 2022:
| 2022 | $ | |||
| 2023 | ||||
| 2024 | ||||
| 2025 | ||||
| 2026 | ||||
| Thereafter | ||||
| Total | $ |
14
7. ACCRUED LIABILITIES AND OTHER PAYABLES
As of December 31, 2022 and June 30, 2022, accrued liabilities and other payables consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Payroll payables | $ | $ | ||||||
| Other payables | ||||||||
| $ | $ | |||||||
8. TAXES PAYABLE
As of December 31, 2022 and June 30, 2022, taxes payable consisted of the following:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Corporate income tax | $ | $ | ||||||
| Value-added tax (“VAT”) | ||||||||
| Related surcharges on VAT payable | ||||||||
| IIT | ||||||||
| $ | $ | |||||||
9. BANK LOANS
Bank loans represent the amounts due to various banks. As of December 31, 2022 and June 30, 2022, short-term and current portions of long-term banks consisted of the following:
Summary of short-term bank loans is as follows:
Annual | As of December 31, | As of June 30, | ||||||||||||
| Rate | Maturities | 2022 | 2022 | |||||||||||
| Short-term loans: | ||||||||||||||
| Industrial Bank Co., Ltd. (2) | % | |||||||||||||
| Xiamen Bank (1) | % | |||||||||||||
| Xiamen Bank (1) | % | |||||||||||||
| Xiamen Bank (1) | % | |||||||||||||
| Xiamen Bank (1) | % | |||||||||||||
| Bank of China Ltd. (3) | % | |||||||||||||
| Bank of China Ltd. (3) | % | |||||||||||||
| Industrial and Commercial Bank | % | |||||||||||||
| Subtotal | ||||||||||||||
| Current portion of long-term loans: | ||||||||||||||
| Bank of China Ltd. (3) | % | |||||||||||||
| Bank of China Ltd. (3) | % | | ||||||||||||
| Bank of China Ltd. (3) | % | |||||||||||||
| Total | $ | $ | ||||||||||||
15
Summary of long-term bank loans is as follows:
| Annual Interest | As of December 31, | As of June 30, | ||||||||||||
| Rate | Maturities | 2022 | 2022 | |||||||||||
| Long-term loans: | ||||||||||||||
| Bank of China Ltd. (3) | % | $ | $ | |||||||||||
| Bank of China Ltd. (3) | % | |||||||||||||
| Bank of China Ltd. (3) | % | |||||||||||||
| Total | $ | $ | ||||||||||||
The weighted average interest rate on short-term
bank loans outstanding as of June 30, 2022 and December 31, 2022 was
| (1) |
| (2) |
| (3) |
| (4) |
10. RELATED PARTY TRANSACTIONS
Amount due from a related party
| Name of Related Party | Relationship | Nature | Repayment terms | December 31, 2022 | June 31, 2022 | |||||||||
| Fuzhou XinSiYu Culture Communication Company Ltd. | | $ | $ | |||||||||||
| $ | $ | |||||||||||||
11. INCOME TAXES
Cayman Islands
The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands.
Hong Kong
On March 21, 2018,
16
PRC
Generally, WFOE, Pop Culture, Pupu Sibo, Pop Network,
Guangzhou Shuzhi, Shenzhen Pop, Pop Sikai, and Shenzhen Jam Box, Pupu Sibo, Pop Network, Shenzhen Pop, Xiamen Shuzhi, Pupu Digital,
Fujian Shuzhi Fuxin Exhibition Co., Ltd., which were incorporated in PRC, are subject to enterprise income tax on their taxable income
as determined under PRC tax laws and accounting standards at a rate of
i) The components of the income tax provision are as follows:
| For the Six Months Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| Current income tax provision | $ | $ | ||||||
| Deferred income tax benefit | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
The following table reconciles the statutory rate to the Company’s effective tax rate for the six months ended December 31, 2022 and 2021:
| For the Six Months Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| China Statutory income tax rate | % | % | ||||||
| Permanent difference | ( | )% | % | |||||
| Effect of favorable tax rates on small-scale and low-profit entities | ( | )% | % | |||||
| Valuation allowance | ( | )% | % | |||||
| Effective tax rate | ( | )% | % | |||||
The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that gives rise to deferred tax assets as of December 31, 2022 and June 30, 2022 was as follows:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Deferred tax assets: | ||||||||
| Net operating loss carry forwards | $ | $ | ||||||
| Allowance for doubtful accounts | ||||||||
| Total deferred tax assets | ||||||||
| Valuation allowance | ||||||||
| Total deferred tax assets, net | $ | $ | ||||||
17
12. LEASE
Supplemental balance sheet information related to the operating lease was as follows:
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| Right-of-use assets | $ | $ | ||||||
| Operating lease liabilities - current | $ | $ | ||||||
| Operating lease liabilities - non-current | ||||||||
| Total operating lease liabilities | $ | $ | ||||||
The weighted average remaining lease terms and discount rates for the operating lease as of December 31, 2022 were as follows:
Remaining lease term and discount rate:
| Weighted average remaining lease term (years) | ||||
| Weighted average discount rate | % |
During the six months ended December 31, 2022
and 2021, the Company incurred total operating lease expenses of $
As of December 31, 2022, the future minimum rent payable under the non-cancellable operating lease for fiscal years ended December 31 were:
| 2023 | $ | |||
| 2024 | ||||
| Thereafter | ||||
| Total lease payments | ||||
| Less: imputed interest | ( | ) | ||
| Present value of lease liabilities | $ |
13. ORDINARY SHARES
On January 3, 2020,
On April 28, 2020, shareholders of the Company
approved
18
On May 30, 2020, the Company issued
On May 30, 2020, the Company also issued an aggregate
of
On February 9, 2021, the Company issued
The subscription receivable presents the receivable for the issuance of Ordinary Shares of the Company and is reported as a deduction of equity. Subscription receivable has no payment terms nor any interest receivable accrual.
On July 2, 2021, the Company closed its initial
public offering of
14. STATUTORY RESERVE
WFOE, Pop Culture, Pupu Sibo, Pop Network, Guangzhou
Shuzhi, Shenzhen Pop, Xiamen Shuzhi, Pupu Digital, Fujian Shuzhi Fuxin Exhibition Co., Ltd., and Pop Sikai are required to reserve
For the six months ended December 31, 2021 and 2022, the Company provided statutory reserve as follows:
| Balance — June 30, 2021 | $ | |||
| Appropriation to statutory reserve | ||||
| Balance — December 31, 2021 | ||||
| Appropriation to statutory reserve | ||||
| Balance — June 30, 2022 | ||||
| Appropriation to statutory reserve | ||||
| Balance — December 31, 2022 | $ |
19
15. RESTRICTED NET ASSETS
Relevant PRC laws and regulations restrict WFOE,
Pop Culture, and subsidiaries of Pop Culture from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital,
additional paid-in-capital and statutory reserves to the Company in the form of loans, advances, or cash dividends. Relevant PRC statutory
laws and regulations permit the payments of dividends by WFOE, Pop Culture, and subsidiaries of Pop Culture from their respective retained
earnings, if any, as determined in accordance with PRC accounting standards and regulations. As of December 31, 2022 and June 30, 2022,
the balance of restricted net assets was $
16. SUBSEQUENT EVENTS
The Company has evaluated subsequent events through the date the financial statements were available to be issued. No other matters were identified affecting the accompanying financial statements or related disclosures.
17. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
The Company performed a test on the restricted net assets of its consolidated subsidiaries, the VIE, and the VIE’s subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only.
The subsidiaries did not pay any dividends to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company.
As of December 31, 2022, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements.
20
POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
PARENT COMPANY BALANCE SHEETS
| As of December 31, | As of June 30, | |||||||
| 2022 | 2022 | |||||||
| ASSETS | ||||||||
| Cash | $ | $ | ||||||
| Prepaid expenses and other current assets | ||||||||
| Due from a related party | - | |||||||
| TOTAL CURRENT ASSETS | ||||||||
| Intangible assets, net | ||||||||
| Other non-current assets | ||||||||
| Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries | ||||||||
| TOTAL ASSETS | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Other Payable | $ | $ | ||||||
| Due to a related party | ||||||||
| TOTAL CURRENT LIABILITIES | $ | $ | ||||||
| TOTAL LIABILITIES | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Subscription receivable | ( | ) | ( | ) | ||||
| Additional paid-in capital | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive (loss) income | ( | ) | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | $ | ||||||
| * | Certain shares are presented on a retroactive basis to reflect the Reorganization (see Note 13). |
21
POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME
| For the Six Months Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| Selling expenses | $ | $ | ||||||
| General and administrative expenses | ||||||||
| Financial expenses | ( | ) | ||||||
| Loss from operation | ||||||||
| Other income: | ||||||||
| Share of income of subsidiaries, consolidated VIE, and VIE’s subsidiaries | ( | ) | ||||||
| Income before income tax expense | ( | ) | ||||||
| Income tax expense | ||||||||
| Net income | $ | ( | ) | $ | ||||
| Other Comprehensive loss | ||||||||
| Foreign currency translation (loss) income | ( | ) | ( | ) | ||||
| Total comprehensive income | $ | ( | ) | $ | ||||
POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
PARENT COMPANY STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
| Ordinary shares | Subscription | Additional paid-in | Retained | Accumulated other comprehensive | Total Shareholders’ | |||||||||||||||||||||||
| Shares* | Amount | receivable | capital | earnings | (loss) income | Equity | ||||||||||||||||||||||
| Balance as of June 30, 2020 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
| Acquisition of Non-controlling interests | ( | ) | ||||||||||||||||||||||||||
| Net income for the period | - | |||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | |||||||||||||||||||||||||||
| Balance as of June 30, 2021 | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||
| Issuance of Class A Ordinary Shares | ||||||||||||||||||||||||||||
| Net income for the period | ||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Balance as of June 30, 2022 | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||||||
| Acquisition of Non-controlling interests | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Net income for the period | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Foreign currency translation adjustment | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Balance as of December 31, 2022 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||||||
| * | Certain shares are presented on a retroactive basis to reflect the Reorganization (see Note 13). |
22
POP CULTURE GROUP CO., LTD AND SUBSIDIARIES
PARENT COMPANY STATEMENTS OF CASH FLOWS
| For the Six Months Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| Net Income | ( | ) | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Depreciation and amortization | ||||||||
| Equity loss (income) of subsidiaries | ( | ) | ||||||
| Other non-current assets | ( | ) | ||||||
| Changes in operating assets and liabilities | ||||||||
| Other payable | ( | ) | ( | ) | ||||
| Due from a related party | ( | ) | ||||||
| Net cash used in operating activities | $ | ( | ) | ( | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Investment in a subsidiary | - | ( | ) | |||||
| Purchase of intangible assets | ( | ) | ||||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Contribution from shareholders | - | |||||||
| Payment for deferred offering costs | ( | ) | ||||||
| Net cash provided by (used in) financing activities | - | |||||||
| Net increase (decrease) in cash | ( | ) | ||||||
| Cash at the beginning of the period | ||||||||
| Cash at the end of the period | $ | |||||||
23
Document And Entity Information |
6 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Document Information Line Items | |
| Entity Registrant Name | POP CULTURE GROUP CO., LTD |
| Document Type | 6-K |
| Current Fiscal Year End Date | --06-30 |
| Amendment Flag | false |
| Entity Central Index Key | 0001807389 |
| Document Period End Date | Dec. 31, 2022 |
| Document Fiscal Year Focus | 2022 |
| Document Fiscal Period Focus | Q2 |
| Entity File Number | 001-40543 |
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Class A Ordinary Shares | ||
| Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
| Ordinary shares, authorized | 44,000,000 | 44,000,000 |
| Ordinary shares, issued | 18,286,923 | 18,286,923 |
| Ordinary shares, outstanding | 18,286,923 | 18,286,923 |
| Class B Ordinary Shares | ||
| Ordinary shares, authorized | 6,000,000 | 6,000,000 |
| Ordinary shares, issued | 5,763,077 | 5,763,077 |
| Ordinary shares, outstanding | 5,763,077 | 5,763,077 |
Consolidated Statements of Income and Comprehensive Income (Parentheticals) - $ / shares |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
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| Income Statement [Abstract] | ||
| Diluted | $ (0.20) | $ 0.02 |
| Weighted average shares used in calculating net income per share Diluted | 24,050,000 | 20,950,000 |
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) |
Ordinary shares |
Subscription receivable |
Additional paid-in capital |
Retained earnings |
Statutory reserve |
Accumulated other comprehensive (loss) income |
Total Pop Culture Group Co., Ltd’s Shareholders’ Equity |
Non- Controlling Interests |
Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance at Jun. 30, 2020 | $ 16,785 | $ (15,441) | $ 5,813,745 | $ 6,693,120 | $ 779,094 | $ (367,581) | $ 12,919,722 | $ 805,084 | $ 13,724,806 |
| Balance (in Shares) at Jun. 30, 2020 | 16,784,911 | ||||||||
| Shares issued for acquisition of non-controlling interests | $ 1,065 | 829,373 | (25,354) | 805,084 | (805,084) | ||||
| Shares issued for acquisition of non-controlling interests (in Shares) | 1,065,089 | ||||||||
| Net income for the period | 4,267,542 | 4,267,542 | 4,267,542 | ||||||
| Appropriation of statutory reserve | (462,479) | 462,479 | |||||||
| Foreign currency translation adjustment | 1,335,757 | 1,335,757 | 1,335,757 | ||||||
| Balance at Jun. 30, 2021 | $ 17,850 | (15,441) | 6,643,118 | 10,498,183 | 1,241,573 | 942,822 | 19,328,105 | 19,328,105 | |
| Balance (in Shares) at Jun. 30, 2021 | 17,850,000 | ||||||||
| Capital contribution from shareholders | 108,437 | 108,437 | |||||||
| Acquisition of Non-controlling interests | $ 6,200 | 33,515,525 | 33,521,725 | 33,521,725 | |||||
| Acquisition of Non-controlling interests (in Shares) | 6,200,000 | ||||||||
| Net income for the period | 787,958 | 787,958 | (100,070) | 687,888 | |||||
| Appropriation of statutory reserve | (257,796) | 257,796 | |||||||
| Foreign currency translation adjustment | (873,803) | (873,803) | (873,803) | ||||||
| Balance at Jun. 30, 2022 | $ 24,050 | (15,441) | 40,158,643 | 11,028,345 | 1,499,369 | 69,019 | 52,763,985 | 8,367 | 52,772,352 |
| Balance (in Shares) at Jun. 30, 2022 | 24,050,000 | ||||||||
| Capital contribution from shareholders | 309,370 | 309,370 | |||||||
| Acquisition of Non-controlling interests | (920) | (920) | 920 | ||||||
| Net income for the period | (4,714,381) | (4,714,381) | (114,789) | (4,829,170) | |||||
| Appropriation of statutory reserve | (109,320) | 109,320 | |||||||
| Foreign currency translation loss | (893,208) | (893,208) | 17,600 | (875,608) | |||||
| Balance at Dec. 31, 2022 | $ 24,050 | $ (15,441) | $ 40,157,723 | $ 6,204,644 | $ 1,608,689 | $ (824,189) | $ 47,155,476 | $ 221,468 | $ 47,376,944 |
| Balance (in Shares) at Dec. 31, 2022 | 24,050,000 |
Organization and Principal Activities |
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| Organization and Principal Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES
Xiamen Pop Culture Co., Ltd (“Pop Culture”) was incorporated in Xiamen, China on March 29, 2007 under the laws of the People’s Republic of China (the “PRC” or “China”). Pop Culture hosts entertainment events and provides event planning and execution services and brand promotion services to corporate clients.
Pop Culture has seven wholly-owned subsidiaries in the PRC as follows:
Pop Culture also holds a 60% controlling interest in Shenzhen Jam box Technology Co., Ltd. a joint venture incorporated on November 18, 2021 in Shenzhen, China, while Shenzhen HipHopJust Information Technology Co., Ltd. owns a 20% interest and a third-party investor owns a 20% interest; a 51% controlling interest in Fujian Shuzhi Fuxin Exhibition Co., Ltd., a joint venture incorporated on May 18, 2022 in Fuzhou, China, while another unrelated party owns a 49% interest; and a 51% controlling interest in Zhongpu Shuyuan (Xiamen) Digital Technology Co., Ltd. (“Zhongpu Shuyuan”), a joint venture incorporated on March 30, 2022 in Xiamen, China, while other three unrelated parties own 49% interest.
Reorganization
On January 3, 2020, Pop Culture Group Co., Ltd (“Pop Group” or the “Company”) was incorporated as an exempted company with limited liability under the laws of the Cayman Islands.
On January 20, 2020, Pop Culture (HK) Holding Limited (“Pop HK”) was established as a wholly-owned subsidiary of Pop Group formed in accordance with laws and regulations of Hong Kong. Pop HK is a holding company and holds all the equity interests of Heliheng Culture Co., Ltd. (“WFOE”), which was established in the PRC on March 13, 2020.
On March 30, 2020, WFOE entered into a series of agreements with Pop Culture and the shareholders of Pop Culture who collectively held 93.55% of the shares in Pop Culture, including an Exclusive Services Agreement, an Exclusive Option Agreement, a Share Pledge Agreement, Powers of Attorney, and Spousal Consents (collectively the “VIE Agreements”). All the above contractual arrangements obligate WFOE to absorb a majority of the risk of loss from business activities of Pop Culture and entitle WFOE to receive a majority of its residual returns. In essence, WFOE has gained effective control over Pop Culture. Therefore, the Company believes that Pop Culture should be considered as a Variable Interest Entity (“VIE”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation.”
Between February and May 2020, the Company and its shareholders undertook a series of corporation actions, including share issuances in February 2020, re-designation of ordinary shares of the Company, par value $0.001 per share (“Ordinary Shares”), into Class A and Class B Ordinary Shares in April 2020, and share issuances and transfers in May 2020. See “Note 13—Ordinary Shares.”
The above-mentioned transactions, including the incorporation of Pop Group, Pop HK, and WFOE, the entry into the VIE Agreements, the share issuances, share re-designation, and share transfers, were considered a reorganization of the Company (the “Reorganization”). After the Reorganization, Pop Group ultimately owns 100% equity interests of Pop HK and WFOE, which further has effective control over the operating entities, Pop Culture, and its subsidiaries through the VIE Agreements.
In accordance with ASC 805-50-25, the Reorganization has been accounted for as a recapitalization among entities under common control since the same controlling shareholder controls all these entities before and after the Reorganization. The consolidation of the Company and its subsidiaries and VIE have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. Furthermore, ASC 805-50-45-5 indicates that the financial statements and financial information presented for prior years shall also be retrospectively adjusted to furnish comparative information.
Acquisition of non-controlling interest in VIE
On February 9, 2021, the Company issued 1,065,089 Class A Ordinary Shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture. See “Note 13—Ordinary Shares.” On February 19, 2021, the VIE Agreements were amended and restated, through which WFOE gained 100% control over Pop Culture. WFOE is obliged to absorb all risk of loss from business activities of Pop Culture and is entitled to receive all its residual returns. Upon the above transactions, the Company consummated the acquisition of non-controlling interests in Pop Culture, and Pop Culture does not have any non-controlling interests anymore.
The consolidated financial statements of the Company included the following entities:
Risks in relation to the VIE structure
The Company believes that the VIE Agreements are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the VIE Agreements. If the legal structure and the VIE Agreements were found to be in violation of PRC laws and regulations, the PRC government could:
The following financial statement amounts and balances of the VIE and its subsidiaries were included in the accompanying consolidated financial statements after the elimination of intercompany transactions:
The Company believes that there are no assets in Pop Culture that can be used only to settle specific obligations of Pop Culture except for the registered capital of Pop Culture and non-distributable statutory reserves. As Pop Culture is incorporated as a limited liability company under the PRC Company Law, creditors of Pop Culture do not have recourse to the general credit of the Company for any of the liabilities of Pop Culture. There are no terms in any arrangements, explicitly or implicitly, requiring the Company or its subsidiaries to provide financial support to Pop Culture. However, if Pop Culture were ever to need financial support, the Company may, at its discretion and subject to statutory limits and restrictions, provide financial support to Pop Culture through loans. |
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Summary of Significant Accounting Policies |
6 Months Ended |
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Dec. 31, 2022 | |
| Organization and Principal Activities [Abstract] | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE, and subsidiaries of its VIE. All inter-company transactions and balances have been eliminated upon consolidation.
Use of estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates.
Recent accounting pronouncements
Recently issued ASUs by the FASB are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures. |
Accounts Receivable, Net |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET
As of December 31, 2022 and June 30, 2022, accounts receivable consisted of the following:
The Company recorded bad debt expenses of $290,138 and $1,063,983 for six months ended December 31, 2022 and six months ended December 31, 2021, respectively. |
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Prepaid Expenses and Other Current Assets |
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| Prepaid Expenses and Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PREPAID EXPENSES AND OTHER CURRENT ASSETS | 4. PREPAID EXPENSES AND OTHER CURRENT ASSETS
As of December 31, 2022 and June 30, 2022, prepaid expenses and other current assets consisted of the following:
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Property and Equipment |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT
As of December 31, 2022 and June 30, 2022, property and equipment consisted of the following:
Depreciation expenses were $46,195 and $18,841 for the six months ended December 31, 2022 and the six months ended December 31, 2021, respectively. |
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Intangible Asset |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSET | 6. INTANGIBLE ASSET
As of December 31, 2022 and June 30, 2022, intangible assets consisted of the following:
The production copyright was purchased from a third-party production provider in November 2018 for a total cash consideration of approximately $2,086,819, and entitled “Move it.” The content of the production copyright includes but is not limited to music content, stage design, and screen design. The Company has exclusive reproduction rights, distribution rights, rental rights, and other rights in China (including mainland China, Hong Kong, Macau, and Taiwan). The Company acquired only the production copyright from the seller, not the operation or equity interest of the seller. Thus, the Company determined that the acquisition constituted an acquisition of assets for financial statement purposes, rather than an acquisition of a business.
For six months ended December 31, 2022 and six months ended December 31, 2021, amortization expenses amounted to $146,055 and $110,362, respectively.
The following is a schedule, by fiscal year, of the amortization amount of intangible assets as of December 31, 2022:
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Accrued Liabilities and Other Payables |
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| Accrued Liabilities and Other Payables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| ACCRUED LIABILITIES AND OTHER PAYABLES | 7. ACCRUED LIABILITIES AND OTHER PAYABLES
As of December 31, 2022 and June 30, 2022, accrued liabilities and other payables consisted of the following:
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Taxes Payable |
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| Taxes Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TAXES PAYABLE | 8. TAXES PAYABLE
As of December 31, 2022 and June 30, 2022, taxes payable consisted of the following:
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Bank Loans |
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| Bank Loans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BANK LOANS | 9. BANK LOANS
Bank loans represent the amounts due to various banks. As of December 31, 2022 and June 30, 2022, short-term and current portions of long-term banks consisted of the following:
Summary of short-term bank loans is as follows:
Summary of long-term bank loans is as follows:
The weighted average interest rate on short-term bank loans outstanding as of June 30, 2022 and December 31, 2022 was 4.86% and 3.98%, respectively. The effective interest rate for bank loans was approximately 4.87% and 4.74% for the years ended June 30, 2022 and December 31, 2022, respectively.
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Related Party Transactions |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS
Amount due from a related party
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Income Taxes |
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| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | 11. INCOME TAXES
Cayman Islands
The Company was incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands.
Hong Kong
On March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%.
PRC
Generally, WFOE, Pop Culture, Pupu Sibo, Pop Network, Guangzhou Shuzhi, Shenzhen Pop, Pop Sikai, and Shenzhen Jam Box, Pupu Sibo, Pop Network, Shenzhen Pop, Xiamen Shuzhi, Pupu Digital, Fujian Shuzhi Fuxin Exhibition Co., Ltd., which were incorporated in PRC, are subject to enterprise income tax on their taxable income as determined under PRC tax laws and accounting standards at a rate of 25%.
According to Taxation 2019 No. 13, which was effective from January 1, 2019 to December 31, 2021, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3 million. A small-scale and low-profit enterprise receives a tax preference, including a preferential tax rate of 5% on its taxable income below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million. In 2021, the preferential tax rate was reduced by half. During the fiscal year ended June 30, 2020, Pop Network, Pupu Sibo, and Guangzhou Shuzhi qualified as small-scale and low-profit enterprises, and during the six months ended December 31, 2022, Pop Network qualified as a small-scale and low-profit enterprise.
i) The components of the income tax provision are as follows:
The following table reconciles the statutory rate to the Company’s effective tax rate for the six months ended December 31, 2022 and 2021:
The tax effect of temporary difference under ASC 740 “Accounting for Income Taxes” that gives rise to deferred tax assets as of December 31, 2022 and June 30, 2022 was as follows:
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Lease |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Operating Leases of Lessee Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASE | 12. LEASE
Supplemental balance sheet information related to the operating lease was as follows:
The weighted average remaining lease terms and discount rates for the operating lease as of December 31, 2022 were as follows:
Remaining lease term and discount rate:
During the six months ended December 31, 2022 and 2021, the Company incurred total operating lease expenses of $91,984 and $45,196, respectively.
As of December 31, 2022, the future minimum rent payable under the non-cancellable operating lease for fiscal years ended December 31 were:
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Ordinary Shares |
6 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Ordinary Shares [Abstract] | |
| ORDINARY SHARES | 13. ORDINARY SHARES
On January 3, 2020, 9,165,000 Ordinary Shares were held by Joya Enterprises Limited. On February 22, 2020, the Company issued 3,760,911 Ordinary Shares, to certain founding shareholders, and 2,015,400 Ordinary Shares to two new shareholders who made the capital injection of $2,557,654 in October 2019.
On April 28, 2020, shareholders of the Company approved the re-designation of 5,763,077 of the Company’s issued Ordinary Shares held by Joya Enterprises Limited into 5,763,077 Class B Ordinary Shares and an aggregate of 9,178,234 of the Company’s issued Ordinary Shares held by Joya Enterprises Limited and certain other shareholders into 9,178,234 Class A Ordinary Shares. Holders of Class A Ordinary Shares and Class B Ordinary shares have the same rights except for voting and conversion rights. In respect of matters requiring a shareholder vote, each holder of Class A Ordinary Shares will be entitled to one vote per one Class A Ordinary Share and each holder of Class B Ordinary Shares will be entitled to seven votes per one Class B Ordinary share. The Class A Ordinary Shares are not convertible into shares of any other class. The Class B Ordinary Shares are convertible into Class A Ordinary Shares at any time after issuance at the option of the holder on a one-to-one basis.
On May 30, 2020, the Company issued 500,000 Class A Ordinary Shares to two original shareholders of Pop Culture for a nominal cash consideration of $500 as part of the Reorganization. The shares and per share data as of June 30, 2019 are presented on a retroactive basis to reflect the above share issuances and re-designation.
On May 30, 2020, the Company also issued an aggregate of 1,343,600 Class A Ordinary Shares to five new investors for a cash consideration of $1,707,893 pursuant to certain Share purchase agreements entered into on September 30, 2019. This share issuance is presented on a prospective basis.
On February 9, 2021, the Company issued 1,065,089 Class A Ordinary Shares to non-controlling shareholders of Pop Culture to acquire their 6.45% non-controlling interests in Pop Culture, which resulted in Pop Culture becoming a VIE fully controlled by the Company. The Company has accounted this acquisition of non-controlling interest as an equity transaction with no gain or loss recognized in accordance with ASC 810-10-45.
The subscription receivable presents the receivable for the issuance of Ordinary Shares of the Company and is reported as a deduction of equity. Subscription receivable has no payment terms nor any interest receivable accrual.
On July 2, 2021, the Company closed its initial public offering of 6,200,000 Class A Ordinary Shares. The Class A Ordinary Shares were priced at $6.00 per share, and the offering was conducted on a firm commitment basis. The Company received an aggregate amount of $34,839,398, representing payment in full to the Company of the purchase price for 6,200,000 shares in the aggregate amount of $37,200,000 less underwriting discounts and expenses pursuant to the underwriting agreement dated June 30, 2021. |
Statutory Reserve |
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| Statutory Reserve [Abstract] | ||||||||||||||||||||||||||||||||||||
| STATUTORY RESERVE | 14. STATUTORY RESERVE
WFOE, Pop Culture, Pupu Sibo, Pop Network, Guangzhou Shuzhi, Shenzhen Pop, Xiamen Shuzhi, Pupu Digital, Fujian Shuzhi Fuxin Exhibition Co., Ltd., and Pop Sikai are required to reserve 10% of their net profit after income tax, as determined in accordance with the PRC accounting rules and regulations. Appropriation to the statutory reserve by the Company is based on profit arrived at under PRC accounting standards for business enterprises for each year. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before the distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital, which was $2,663,330 and $1,608,689 as of December 31, 2021 and 2022, respectively. This statutory reserve is not distributable in the form of cash dividends.
For the six months ended December 31, 2021 and 2022, the Company provided statutory reserve as follows:
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Restricted Net Assets |
6 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Restricted Net Assets [Abstract] | |
| RESTRICTED NET ASSETS | 15. RESTRICTED NET ASSETS
Relevant PRC laws and regulations restrict WFOE, Pop Culture, and subsidiaries of Pop Culture from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital, additional paid-in-capital and statutory reserves to the Company in the form of loans, advances, or cash dividends. Relevant PRC statutory laws and regulations permit the payments of dividends by WFOE, Pop Culture, and subsidiaries of Pop Culture from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. As of December 31, 2022 and June 30, 2022, the balance of restricted net assets was $16,665,441 and $16,557,042, respectively. |
Subsequent Events |
6 Months Ended |
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Dec. 31, 2022 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS
The Company has evaluated subsequent events through the date the financial statements were available to be issued. No other matters were identified affecting the accompanying financial statements or related disclosures. |
Condensed Financial Information of the Parent Company |
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| Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 17. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
The Company performed a test on the restricted net assets of its consolidated subsidiaries, the VIE, and the VIE’s subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only.
The subsidiaries did not pay any dividends to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company.
As of December 31, 2022, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements.
PARENT COMPANY BALANCE SHEETS
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME
PARENT COMPANY STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
PARENT COMPANY STATEMENTS OF CASH FLOWS
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Accounting Policies, by Policy (Policies) |
6 Months Ended |
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Dec. 31, 2022 | |
| Organization and Principal Activities [Abstract] | |
| Basis of presentation | Basis of presentation
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE, and subsidiaries of its VIE. All inter-company transactions and balances have been eliminated upon consolidation.
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| Use of estimates | Use of estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period and accompanying notes, including allowance for doubtful accounts, the useful lives of property and equipment and intangible asset, impairment of long-lived assets, deferred cost, and valuation for deferred tax assets. Actual results could differ from those estimates.
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| Recent accounting pronouncements | Recent accounting pronouncements
Recently issued ASUs by the FASB are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows, or disclosures. |
Organization and Principal Activities (Tables) |
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| Schedule of consolidated financial statements |
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| Schedule of financial statement amounts and balances of the VIE and its subsidiaries |
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| Schedule of income and cash flows |
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Accounts Receivable, Net (Tables) |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accounts receivable |
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Prepaid Expenses and Other Current Assets (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses and Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of prepaid expenses and other current assets |
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Property and Equipment (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of property and equipment |
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Intangible Asset (Tables) |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of intangible asset |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of amortization amount of intangible asset by fiscal years |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Other Payables (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Liabilities and Other Payables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accrued liabilities and other payables |
|
|||||||||||||||||||||||||||||||||||||||||||||
Taxes Payable (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxes Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of taxes payable |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Loans (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bank Loans [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of short-term bank loans |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of due from related a party |
|
|||||||||||||||||||||||||||||||||||||||||||||
Income Taxes (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of components of income tax provision |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of reconciles the statutory rate to the company’s effective tax rate |
|
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| Schedule of accounting for income taxes |
|
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Lease (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of supplemental balance sheet information related to the operating lease |
|
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| Schedule of remaining lease terms and discount rates |
|
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| Schedule of future minimum rent payable under the non-cancelable operating lease |
|
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Statutory Reserve (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||
| Statutory Reserve [Abstract] | ||||||||||||||||||||||||||||||||||||
| Schedule of statutory reserve |
|
Condensed Financial Information of the Parent Company (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of parent company balance sheets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of parent company statements of comprehensive income |
|
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| Schedule of parent company statements of changes in shareholders’ equity |
|
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| Schedule of parent company statements of cash flows |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Principal Activities (Details) - Schedule of financial statement amounts and balances of the VIE and its subsidiaries - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Financial Statement Amounts and Balances of the Vie and Its Subsidiaries [Abstract] | ||
| Total assets | $ 27,868,985 | $ 30,147,583 |
| Total liabilities | $ 13,229,412 | $ 11,110,127 |
Organization and Principal Activities (Details) - Schedule of income and cash flows - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Schedule of Income and Cash Flows [Abstract] | ||
| Total revenue | $ 8,727,933 | $ 13,479,761 |
| Net income | (4,118,522) | 1,090,050 |
| Net cash used in operating activities | 2,063,270 | (4,277,567) |
| Net cash (used in) provided by investing activities | (4,753,309) | 7,006,589 |
| Net cash provided by financing activities | $ 796,554 | $ (1,153,376) |
Accounts Receivable, Net (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Accounts Receivable, Net [Abstract] | ||
| Bad debt expenses | $ 290,138 | $ 1,063,983 |
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Accounts Receivable [Abstract] | ||
| Accounts receivable - gross | $ 27,182,374 | $ 28,094,299 |
| Allowance for doubtful accounts | (2,056,827) | (1,815,665) |
| Accounts receivable, net | $ 25,125,547 | $ 26,278,634 |
Prepaid Expenses and Other Current Assets (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Disclosure Text Block Supplement [Abstract] | ||
| Bad debt expenses | $ 13 | $ 25,221 |
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
||||
|---|---|---|---|---|---|---|
| Schedule of prepaid expenses and other current assets [Abstract] | ||||||
| Deferred costs | [1] | $ 1,084,845 | $ 783,798 | |||
| Deferred offering costs | ||||||
| Other receivables | 125,068 | 36,559 | ||||
| Prepaid expenses and other current assets, gross | 1,209,913 | 820,357 | ||||
| Allowance for doubtful accounts | [2] | (14,512) | (14,930) | |||
| Prepaid expenses and other current assets, net | $ 1,195,401 | $ 805,427 | ||||
| ||||||
Property and Equipment (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Property, Plant and Equipment [Abstract] | ||
| Depreciation expenses amounted | $ 46,195 | $ 18,841 |
Property and Equipment (Details) - Schedule of property and equipment - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 1,584,971 | $ 103,333 |
| Less: accumulated depreciation | (77,401) | (31,570) |
| Property and equipment, net | 1,507,570 | 71,763 |
| Leasehold improvement [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 988,076 | 17,394 |
| Building [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 480,198 | |
| Office equipment [Member] | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 116,697 | $ 85,939 |
Intangible Asset (Details) - USD ($) |
1 Months Ended | 6 Months Ended | |
|---|---|---|---|
Nov. 30, 2018 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Goodwill and Intangible Assets Disclosure [Abstract] | |||
| Cash consideration amount | $ 2,086,819 | ||
| Amortization expense | $ 146,055 | $ 110,362 | |
Intangible Asset (Details) - Schedule of intangible asset - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Jun. 30, 2022 |
|
| Schedule of Intangible Asset [Abstract] | ||
| Copyright licenses | $ 2,889,491 | $ 2,845,857 |
| SaaS | 144,986 | 149,296 |
| Intangible assets gross | 3,034,477 | 2,995,153 |
| Less: accumulated amortization | (915,957) | (790,742) |
| Total intangible assets | $ 2,118,520 | $ 2,204,411 |
Intangible Asset (Details) - Schedule of amortization amount of intangible asset by fiscal years |
Dec. 31, 2022
USD ($)
|
|---|---|
| Schedule of Amortization Amount of Intangible Asset By Fiscal Years [Abstract] | |
| 2022 | $ 260,069 |
| 2023 | 260,069 |
| 2024 | 260,069 |
| 2025 | 260,069 |
| 2026 | 260,069 |
| Thereafter | 818,175 |
| Total | $ 2,118,520 |
Accrued Liabilities and Other Payables (Details) - Schedule of accrued liabilities and other payables - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Accrued Liabilities and Other Payables [Abstract] | ||
| Payroll payables | $ 130,139 | $ 126,336 |
| Other payables | 169,456 | 102,873 |
| Total | $ 299,595 | $ 229,209 |
Taxes Payable (Details) - Schedule of taxes payable - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Taxes Payable [Abstract] | ||
| Corporate income tax | $ 3,788,929 | $ 3,946,227 |
| Value-added tax (“VAT”) | 965,297 | 746,975 |
| Related surcharges on VAT payable | 3,151 | 2,224 |
| IIT | 3,911 | 1,841 |
| Total | $ 4,761,288 | $ 4,697,267 |
Bank Loans (Details) |
Dec. 31, 2022 |
Jun. 30, 2022 |
Feb. 04, 2021
USD ($)
|
Feb. 04, 2021
CNY (¥)
|
|---|---|---|---|---|
| Bank Loans [Abstract] | ||||
| Interest rate outstanding | 3.98% | 4.86% | ||
| Effective interest rate | 4.74% | 4.87% | ||
| Total loan received | $ 1,548,491 | ¥ 10,000,000 | ||
| Receivables due from customers | $ 2,013,038 | ¥ 13,000,000 |
Bank Loans (Details) - Schedule of short-term bank loans - USD ($) |
6 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Jun. 30, 2022 |
|||||||
| Short-Term Debt [Line Items] | ||||||||
| Total | $ 173,984 | $ 1,254,087 | ||||||
| Total | 5,219,510 | 3,792,121 | ||||||
| Subtotal | $ 4,001,624 | 3,433,810 | ||||||
| Industrial Bank Co., Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [1] | 4.80% | ||||||
| Maturities | [1] | Dec. 20, 2023 | ||||||
| Short-term loans | [1] | $ 1,449,864 | 1,492,960 | |||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 3.80% | ||||||
| Maturities | [2] | Nov. 26, 2023 | ||||||
| Short-term loans | [2] | $ 347,967 | 89,579 | |||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 4.15% | ||||||
| Maturities | [2] | Dec. 29, 2023 | ||||||
| Short-term loans | [2] | $ 811,924 | 209,014 | |||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 5.10% | ||||||
| Maturities | [2] | Apr. 15, 2024 | ||||||
| Short-term loans | [2] | $ 57,995 | 59,718 | |||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 3.80% | ||||||
| Maturities | [2] | Nov. 26, 2023 | ||||||
| Short-term loans | [2] | 313,522 | ||||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 4.15% | ||||||
| Maturities | [2] | Dec. 29, 2023 | ||||||
| Short-term loans | [2] | 731,551 | ||||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 5.10% | ||||||
| Maturities | [2] | Apr. 15, 2024 | ||||||
| Short-term loans | [2] | $ 173,984 | 209,014 | |||||
| Xiamen Bank [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [3] | 4.30% | ||||||
| Maturities | [3] | Jun. 16, 2023 | ||||||
| Short-term loans | [3] | $ 434,959 | ||||||
| Xiamen Bank [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [3] | 4.30% | ||||||
| Maturities | [3] | Jun. 16, 2023 | ||||||
| Short-term loans | [3] | $ 289,973 | ||||||
| Xiamen Bank [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [3] | 5.22% | ||||||
| Maturities | [3] | Jun. 18, 2022 | ||||||
| Short-term loans | [3] | 447,888 | ||||||
| Xiamen Bank [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [3] | 5.22% | ||||||
| Maturities | [3] | Jun. 22, 2022 | ||||||
| Short-term loans | [3] | 298,592 | ||||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 4.70% | ||||||
| Maturities | [2] | Jun. 01, 2022 | ||||||
| Short-term loans | [2] | |||||||
| Bank of China Ltd. [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | [2] | 4.70% | ||||||
| Maturities | [2] | May 30, 2023 | ||||||
| Short-term loans | [2] | $ 1,101,896 | 1,194,370 | |||||
| Industrial and Commercial Bank [Member] | ||||||||
| Short-Term Debt [Line Items] | ||||||||
| Annual Interest Rate | 3.65% | |||||||
| Maturities | Sep. 23, 2023 | |||||||
| Short-term loans | $ 724,932 | |||||||
| ||||||||
Related Party Transactions (Details) - Schedule of due from related a party - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Jun. 30, 2022 |
|
| Related Party Transaction [Line Items] | ||
| Amount due from related a party | $ 1,385,635 | |
| Fuzhou XinSiYu Culture Communication Company Ltd. [Member] | ||
| Related Party Transaction [Line Items] | ||
| Minority Shareholder | Equity Holder of one of the Subsidiaries of Pop Culture | |
| Account receivables | Account receivables | |
| Repayment in demand | Repayment in demand | |
| Amount due from related a party | $ 1,385,635 |
Income Taxes (Details) |
1 Months Ended | 6 Months Ended |
|---|---|---|
Mar. 21, 2018 |
Dec. 31, 2022 |
|
| Income Tax Disclosure [Abstract] | ||
| Income tax rate, description | the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was announced on the following day. Under the two-tiered profits tax rates regime, the first 2 million Hong Kong Dollar (“HKD”) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HKD2 million will be taxed at 16.5%. | |
| Accounting standards rate | 25.00% | |
| Preferential tax rate, description | According to Taxation 2019 No. 13, which was effective from January 1, 2019 to December 31, 2021, an enterprise is recognized as a small-scale and low-profit enterprise when its taxable income is less than RMB3 million. A small-scale and low-profit enterprise receives a tax preference, including a preferential tax rate of 5% on its taxable income below RMB1 million and another preferential tax rate of 10% on its taxable income between RMB1 million and RMB3 million. |
Income Taxes (Details) - Schedule of components of income tax provision - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Schedule of Components of Income Tax Provision [Abstract] | ||
| Current income tax provision | $ 193,212 | $ 769,748 |
| Deferred income tax benefit | (17,184) | (257,489) |
| Total | $ 176,028 | $ 512,259 |
Income Taxes (Details) - Schedule of reconciles the statutory rate to the company’s effective tax rate |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Schedule of Reconciles the Statutory Rate to the Company S Effective Tax Rate [Abstract] | ||
| China Statutory income tax rate | 25.00% | 25.00% |
| Permanent difference | (0.18%) | 0.20% |
| Effect of favorable tax rates on small-scale and low-profit entities | (0.31%) | 0.01% |
| Valuation allowance | (28.30%) | 0.01% |
| Effective tax rate | (3.78%) | 25.21% |
Income Taxes (Details) - Schedule of accounting for income taxes - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Deferred tax assets: | ||
| Net operating loss carry forwards | ||
| Allowance for doubtful accounts | $ 517,835 | 457,649 |
| Total deferred tax assets | 517,835 | 457,649 |
| Valuation allowance | ||
| Total deferred tax assets, net | $ 517,835 | $ 457,649 |
Lease (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Operating Leases of Lessee Disclosures [Abstract] | ||
| Operating lease expense | $ 91,984 | $ 45,196 |
Lease (Details) - Schedule of supplemental balance sheet information related to the operating lease - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Supplemental Balance Sheet Information Related to the Operating Lease [Abstract] | ||
| Right-of-use assets | $ 336,356 | $ 461,399 |
| Operating lease liabilities - current | 202,230 | 208,926 |
| Operating lease liabilities - non-current | 155,082 | 250,178 |
| Total operating lease liabilities | $ 357,312 | $ 459,104 |
Lease (Details) - Schedule of remaining lease terms and discount rates |
Dec. 31, 2022 |
|---|---|
| Schedule of Remaining Lease Terms and Discount Rates [Abstract] | |
| Weighted average remaining lease term (years) | 1 year 10 months 28 days |
| Weighted average discount rate | 4.30% |
Lease (Details) - Schedule of future minimum rent payable under the non-cancelable operating lease - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Schedule of Future Minimum Rent Payable Under the Non-Cancelable Operating Lease [Abstract] | ||
| 2023 | $ 129,802 | |
| 2024 | 155,785 | |
| Thereafter | 93,685 | |
| Total lease payments | 379,272 | |
| Less: imputed interest | (21,960) | |
| Present value of lease liabilities | $ 357,312 | $ 459,104 |
Ordinary Shares (Details) - USD ($) |
1 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
Feb. 09, 2021 |
May 30, 2020 |
Apr. 28, 2020 |
Feb. 22, 2020 |
Oct. 31, 2019 |
Jul. 02, 2021 |
Jun. 30, 2021 |
Jan. 03, 2020 |
|
| Ordinary Shares (Details) [Line Items] | ||||||||
| Ordinary shares issued | 3,760,911 | |||||||
| Ordinary shareholders | 2,015,400 | |||||||
| Capital injection (in Dollars) | $ 2,557,654 | |||||||
| Re-designation, description | the re-designation of 5,763,077 of the Company’s issued Ordinary Shares held by Joya Enterprises Limited into 5,763,077 Class B Ordinary Shares and an aggregate of 9,178,234 of the Company’s issued Ordinary Shares held by Joya Enterprises Limited and certain other shareholders into 9,178,234 Class A Ordinary Shares. Holders of Class A Ordinary Shares and Class B Ordinary shares have the same rights except for voting and conversion rights. In respect of matters requiring a shareholder vote, each holder of Class A Ordinary Shares will be entitled to one vote per one Class A Ordinary Share and each holder of Class B Ordinary Shares will be entitled to seven votes per one Class B Ordinary share. The Class A Ordinary Shares are not convertible into shares of any other class. The Class B Ordinary Shares are convertible into Class A Ordinary Shares at any time after issuance at the option of the holder on a one-to-one basis. | |||||||
| Aggregate amount (in Dollars) | $ 34,839,398 | |||||||
| Purchase Shares | 6,200,000 | |||||||
| Underwriting amount (in Dollars) | $ 37,200,000 | |||||||
| IPO [Member] | ||||||||
| Ordinary Shares (Details) [Line Items] | ||||||||
| Ordinary shares issued | 6,200,000 | |||||||
| Common Class A [Member] | ||||||||
| Ordinary Shares (Details) [Line Items] | ||||||||
| Ordinary shares issued | 500,000 | |||||||
| Nominal cash consideration (in Dollars) | $ 500 | |||||||
| Aggregate share issued | 1,343,600 | |||||||
| Investors for cash consideration (in Dollars) | $ 1,707,893 | |||||||
| Insurance of new investors | 1,065,089 | |||||||
| Non controlling interests | 6.45% | |||||||
| Shares price (in Dollars per share) | $ 6 | |||||||
| Joya Enterprises Limited [Member] | ||||||||
| Ordinary Shares (Details) [Line Items] | ||||||||
| Ordinary shares issued | 9,165,000 | |||||||
Statutory Reserve (Details) - USD ($) |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statutory Reserve [Abstract] | ||
| Net profit after income tax percentage | 10.00% | |
| Registered capital percentage | 50.00% | |
| Registered capital amount | $ 1,608,689 | $ 2,663,330 |
Statutory Reserve (Details) - Schedule of statutory reserve - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
| Schedule of Statutory Reserve [Abstract] | |||
| Beginning Balance | $ 1,499,369 | $ 1,391,770 | $ 1,241,573 |
| Appropriation to statutory reserve | 109,320 | 257,796 | 150,197 |
| Ending Balance | $ 1,608,689 | $ 1,499,369 | $ 1,391,770 |
Restricted Net Assets (Details) - USD ($) |
Dec. 31, 2022 |
Jun. 30, 2022 |
|---|---|---|
| Restricted Net Assets [Abstract] | ||
| Restricted net assets | $ 16,665,441 | $ 16,557,042 |
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company balance sheets (Parentheticals) - Parent Company [Member] - $ / shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|---|---|---|---|---|
| Class A ordinary shares | ||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company balance sheets (Parentheticals) [Line Items] | ||||
| Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
| Ordinary shares, shares authorized | 44,000,000 | 44,000,000 | ||
| Ordinary shares, shares issued | 18,286,923 | 18,286,923 | ||
| Ordinary shares, shares outstanding | 18,286,923 | 18,286,923 | ||
| Class B ordinary shares | ||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company balance sheets (Parentheticals) [Line Items] | ||||
| Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
| Ordinary shares, shares authorized | 6,000,000 | 6,000,000 | ||
| Ordinary shares, shares issued | 5,763,077 | 5,763,077 | ||
| Ordinary shares, shares outstanding | 5,763,077 | 5,763,077 |
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of comprehensive income - Parent Company [Member] - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Condensed Statement of Income Captions [Line Items] | ||
| Selling expenses | $ 36,000 | |
| General and administrative expenses | 605,795 | 1,052,619 |
| Financial expenses | 114,980 | (43) |
| Loss from operation | 756,775 | 1,052,576 |
| Other income: | ||
| Share of income of subsidiaries, consolidated VIE, and VIE’s subsidiaries | (3,957,606) | 1,499,211 |
| Income before income tax expense | (4,714,381) | 446,635 |
| Income tax expense | ||
| Net income | (4,714,381) | 446,635 |
| Other Comprehensive loss | ||
| Foreign currency translation (loss) income | (893,208) | (59,682) |
| Total comprehensive income | $ (5,607,589) | $ 386,953 |
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity - Parent Company [Member] - USD ($) |
6 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||||
| Balance | $ 52,763,985 | $ 19,328,105 | $ 19,328,105 | $ 12,919,722 | ||
| Balance | $ 47,155,476 | 52,763,985 | $ 19,328,105 | |||
| Acquisition of Non-controlling interests (in Shares) | (920) | 805,084 | ||||
| Issuance of additional shares | 33,521,725 | |||||
| Net income for the period | (4,714,381) | 787,958 | $ 4,267,542 | |||
| Foreign currency translation adjustment | $ (893,208) | $ (873,803) | $ 1,335,757 | |||
| Ordinary shares [Member] | ||||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||||
| Balance (in Shares) | [1] | 24,050,000 | 17,850,000 | 17,850,000 | 16,784,911 | |
| Balance | $ 24,050 | $ 17,850 | $ 17,850 | $ 16,785 | ||
| Balance (in Shares) | [1] | 24,050,000 | 24,050,000 | 17,850,000 | ||
| Balance | $ 24,050 | $ 24,050 | $ 17,850 | |||
| Acquisition of Non-controlling interests | [1] | $ 1,065,089 | ||||
| Acquisition of Non-controlling interests (in Shares) | 1,065 | |||||
| Issuance of additional shares (in Shares) | [1] | 6,200,000 | ||||
| Issuance of additional shares | $ 6,200 | |||||
| Net income for the period | ||||||
| Foreign currency translation adjustment | ||||||
| Subscription receivable [Member] | ||||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||||
| Balance | $ (15,441) | (15,441) | (15,441) | (15,441) | ||
| Balance | $ (15,441) | (15,441) | (15,441) | |||
| Acquisition of Non-controlling interests (in Shares) | ||||||
| Issuance of additional shares | ||||||
| Net income for the period | ||||||
| Foreign currency translation adjustment | ||||||
| Additional paid-in capital [Member] | ||||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||||
| Balance | $ 40,158,643 | 6,643,118 | 6,643,118 | 5,813,745 | ||
| Balance | $ 40,157,723 | 40,158,643 | $ 6,643,118 | |||
| Acquisition of Non-controlling interests (in Shares) | (920) | 829,373 | ||||
| Issuance of additional shares | 33,515,525 | |||||
| Net income for the period | ||||||
| Foreign currency translation adjustment | ||||||
| Retained earnings [Member] | ||||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||||
| Balance | $ 12,527,714 | 11,739,756 | 11,739,756 | 7,472,214 | ||
| Balance | $ 7,813,333 | 12,527,714 | $ 11,739,756 | |||
| Acquisition of Non-controlling interests (in Shares) | ||||||
| Issuance of additional shares | ||||||
| Net income for the period | (4,714,381) | 787,958 | $ 4,267,542 | |||
| Foreign currency translation adjustment | ||||||
| Accumulated other comprehensive (loss) income [Member] | ||||||
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of changes in shareholders’ equity [Line Items] | ||||||
| Balance | $ 69,019 | 942,822 | 942,822 | (367,581) | ||
| Balance | $ (824,189) | 69,019 | $ 942,822 | |||
| Acquisition of Non-controlling interests (in Shares) | (25,354) | |||||
| Issuance of additional shares | ||||||
| Net income for the period | ||||||
| Foreign currency translation adjustment | $ (893,208) | $ (873,803) | $ 1,335,757 | |||
| ||||||
Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of cash flows - Parent Company [Member] - USD ($) |
6 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Condensed Financial Information of the Parent Company (Details) - Schedule of parent company statements of cash flows [Line Items] | ||
| Net Income | $ (4,714,381) | $ 446,635 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Depreciation and amortization | 36,875 | |
| Equity loss (income) of subsidiaries | 3,957,606 | (1,499,211) |
| Other non-current assets | (4,448,342) | |
| Changes in operating assets and liabilities | ||
| Other payable | (70,000) | (155,000) |
| Due from a related party | (3,500,001) | |
| Net cash used in operating activities | (8,738,243) | (1,207,576) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Investment in a subsidiary | (7,081,000) | |
| Purchase of intangible assets | (105,000) | |
| Net cash used in investing activities | (105,000) | (7,081,000) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Contribution from shareholders | 34,069,438 | |
| Payment for deferred offering costs | (528,221) | |
| Net cash provided by (used in) financing activities | 33,541,217 | |
| Net increase (decrease) in cash | (8,843,243) | 25,252,641 |
| Cash at the beginning of the period | 9,085,082 | 4,260 |
| Cash at the end of the period | $ 241,839 | $ 25,256,901 |