Business Combination

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

BUSINESS COMBINATION

NOTE 2 - BUSINESS COMBINATION

On May 6, 2020, the Company completed the acquisition of 68% equity interest of Jebe Production Group Limited (the “Acquisition”). The total consideration of the acquisition is 2,658,000 shares of series A convertible preferred stock, approximately $1,010,040.

The purchase price allocation resulted in $1,080,898 of goodwill, as below:

Acquired assets:	US$
Cash and cash equivalents	$	192,022
Trade receivables		123,798
Other receivables		45,160
		360,980
Less: Assumed liabilities
Accrued liabilities		(2,709	)
Amount due to a director		(462,474	)
		(465,183	)
Fair value of net assets acquired		(104,203	)
Non-controlling interest		33,345
Goodwill recorded		1,080,898
Cash consideration allocated	$	1,010,040

The Acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense.

The goodwill is fully impaired during the period ended June 30, 2020.