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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2016
Aug. 10, 2016
Document And Entity Information    
Entity Registrant Name Vitaxel Group Ltd  
Entity Central Index Key 0001623590  
Document Type 10-Q  
Trading Symbol VXEL  
Document Period End Date Jun. 30, 2016  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity a Well-known Seasoned Issuer No  
Entity a Voluntary Filer No  
Entity's Reporting Status Current No  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   5,098,725,000
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  
CONSOLILDATED BALANCE SHEETS (Unaudited) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
CURRENT ASSETS    
Cash and cash equivalents $ 210,825 $ 303,794
Prepayment $ 12,308
Deferred tax asset $ 8,124
Inventories 33,060 $ 9,870
Other receivables and other assets 31,875 53,324
Total Current Assets 283,884 379,296
NON-CURRENT ASSETS    
Property, plant and equipment, net 208,509 104,857
Total Non-Current Assets 208,509 104,857
TOTAL ASSETS 492,393 484,153
CURRENT LIABILITIES    
Amounts due to a related party 665,074 $ 233,100
Amounts due to a director 24,845
Commission payables 351,969 $ 537,655
Accounts payable 2,109
Accruals and other payables 1,031,916 $ 735,143
Tax payable 8,865 17,586
Total Current Liabilities 2,084,777 $ 1,523,484
NON-CURRENT LIABILITY    
Deferred tax liability 8,124
TOTAL LIABILITIES $ 2,092,902 $ 1,523,484
Commitments and Contingencies
STOCKHOLDERS' EQUITY    
Common stock par value $0.000001: 7,000,000,000 shares authorized; 5,098,725,000 and 3,999,000,000 shares issued and outstanding, respectively $ 5,099 $ 3,999
Additional paid-in capital 509,348 510,448
Accumulated deficit (2,219,975) (1,733,633)
Accumulated other comprehensive income 105,019 179,855
Total Stockholders' Equity (1,600,509) (1,039,331)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 492,393 $ 484,153
CONSOLILDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]    
Common stock par value (in dollars per share) $ 0.000001 $ 0.000001
Common stock authorized 7,000,000,000 7,000,000,000
Common stock issued 5,098,725,000 3,999,000,000
Common stock outstanding 5,098,725,000 3,999,000,000
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Statement [Abstract]        
REVENUE $ 435,030 $ 552,779 $ 1,294,912 $ 1,087,696
COST OF REVENUE (356,221) (497,980) (911,309) (918,310)
GROSS PROFIT 78,809 $ 54,799 383,603 169,386
OPERATING EXPENSES        
Selling expense (648) (1,515) (1,724)
General and administrative expenses (572,549) $ (194,731) (930,303) (304,198)
Total Operating Expenses (573,197) (194,731) (931,818) (305,922)
(LOSS)/INCOME FROM OPERATIONS (494,388) $ (139,932) (548,215) (136,536)
OTHER INCOME/(EXPENSE), NET        
Other Income 14,879 71,629 38
Other Expense (9,443) $ (86,066) (9,756) (86,991)
Total Other Income / (Expense), net 5,436 (86,066) 61,873 (86,953)
NET LOSS BEFORE TAXES $ (488,952) $ (225,998) $ (486,342) $ (223,489)
Income tax expense
Net loss $ (488,952) $ (225,998) $ (486,342) $ (223,489)
OTHER COMPREHENSIVE INCOME/(LOSS)        
Foreign currency translation adjustment 31,577 (74,248)
TOTAL COMPREHENSIVE LOSS $ (457,375) $ (225,998) $ (560,590) $ (223,489)
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (486,342) $ (223,489)
Adjustments to reconcile net loss to cash used in operating activities:    
Depreciation - property, plant and equipment 9,784 1,894
Prepayment 12,308 518,048
Other receivables and other assets 21,449 $ 14,097
Deferred tax asset (8,124)
Inventories (23,190) $ 10,605
Trade creditor 2,109
Commission payables (185,686)
Other payables and accrued expenses $ 296,773
GST on payment $ (90)
Deferred tax liability $ 8,124
Tax payable (8,721) $ 10,732
Net cash (used in) provided by operating activities (361,516) 331,797
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property, plant and equipment (105,543) (19,734)
Net cash used in investing activities (105,543) $ (19,734)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from directors $ 24,845
(Decrease) in amount due to holding company $ (54,785)
Proceeds from related parties $ 431,974
Net cash provided by (used in) financing activities 456,819 $ (54,785)
EFFECT OF EXCHANGE RATES ON CASH (82,728)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (92,969) $ 257,278
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 303,794 28,056
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 210,825 $ 285,334
SUPPLEMENTAL OF CASH FLOW INFORMATION    
Cash paid for interest expenses
Cash paid for income tax
ORGANIZATION AND BUSINESS
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BUSINESS
1. ORGANIZATION AND BUSINESS

 

VitaxelGroup Limited (formerly Albero, Corp., the “Company”), incorporated in Nevada, is engaged in direct selling industryand online shopping platform primarily through its operating entities in Malaysia.

 

VitaxelSDN BHD ("Vitaxel"), was incorporated in Malaysia on August 10, 2012. The Company is primarily engaged in the direct selling industryutilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services.

 

VitaxelOnline Mall SBN BHD ("Vionmall"), was incorporated in Malaysia on September 22, 2015. The Company is primarily in developing onlineshopping platforms geared to Vitaxel and its members and the third party suppliers of products and services.

 

VitaxelSingapore PTE. Ltd. (“Vitaxel Singapore”) was incorporated in Singapore on February 16, 2016.

 

REVERSEACQUISITION

 

OnJanuary 18, 2016, the Company completed and closed a share exchange (the “Share Exchange”) under a Share ExchangeAgreement (the “Share Exchange Agreement”) of the same date among us, Vitaxel SDN BHD, a Malaysian corporation (“Vitaxel”),the shareholders of Vitaxel, Vitaxel Online Mall SBN BHD, a Malaysian corporation (“Vionmall”) and the shareholdersof Vionmall pursuant to which Vitaxel and Vionmall each became wholly owned subsidiaries of ours. In the Share Exchange, all ofthe outstanding shares of Vitaxel and Vionmall were converted into shares of our Common Stock, as described in more detail below.

 

Inconnection with the Share Exchange and pursuant to the Split-Off Agreement, we transferred our pre-Share Exchange assets and liabilitiesto our pre-Share Exchange majority stockholder, in exchange for the surrender by him and cancellation of 3,000,000 shares of ourCommon Stock

 

Asa result of the Share Exchange and Split-Off, we discontinued our pre-Share Exchange business and acquired the businesses of Vitaxeland Vionmall, and will continue the existing business operations of Vitaxel and Vionmall as a publicly-traded company under thename Vitaxel Group Limited.

 

Inaccordance with “reverse acquisition” accounting treatment, our historical financial statements as of period ends,and for periods ended, prior to the acquisition will be replaced with the historical financial statements of Vitaxel and Vionmallprior to the Share Exchange in all future filings with the SEC.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basisof presentation

Theaccompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principlesgenerally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 10 of RegulationS-X.

 

Thisbasis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned,and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

 

Fiscalyear end is December 31.

 

Useof estimates

Thepreparation of consolidated financial statements in conformity with accounting principles generally accepted in the United Statesof America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilitiesand disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenuesand expenses during the reporting periods. Actual results could differ from those estimates.

 

Foreigncurrency translation and transactions

Thefunctional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is UnitedStates Dollar “USD”). The financial statements of the Company are translated into USD using the exchange rate as ofthe balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translationgains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders' equity.

 

Cashand cash equivalents

Cashand cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, andwhich have original maturities of three months or less when purchased.

 

Accountsreceivable

Accountsreceivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. Anestimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.The Company generally does not require collateral from its customers. For the period ended June 30, 2016 and for the year endedDecember 31, 2015, the Company did not write off any accounts receivable as bad debts.

 

Fairvalue of financial instruments

FASBASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to thosevaluation techniques reflect assumptions other market participants would use based upon market data obtained from independentsources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company hasthe ability to access.

 

Level2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fairvalue measurements.

 

ASC820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measurefair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized isbased on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximizethe use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2016 and December 31, 2015, none of theCompany’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivativefinancial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values dueto the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

 

Inventories

Inventoriesare stated at lower of cost or market, with cost determined on a weighted-average method, and not to exceed net realizable value.The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods andthe raw material items with large amounts, and by a category basis for low value raw material items.

 

Property,plant and equipment, net

Property,plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis overthe following estimated useful lives:

 

Office equipment 10 years
Furniture and fixtures 10 years
Leasehold improvement 10 years

 

Revenuerecognition

Productsales − The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to theindependent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. Areserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of June 30, 2016and December 31, 2015.

 

Membershipfee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenuewill not be recognized until the 10 days cooling-off period is expired. For the period ended June 30, 2016 and for the year endedDecember 31, 2015, all membership feeswere waived by the Company for promotion purpose.

 

Loyaltyprogram

TheCompany operates loyalty program which allows customer to accumulate redemption points when they purchase products from the Company.The redemption points can be used to purchase a selection of products at discounted price or redeem products.

 

TheCompany allocates consideration received from the sale of goods to the goods sold and the redemption points issued that are expectedto be redeemed.

 

Theconsideration allocated to the redemptions points issued is measured at fair value of the redemption points. It is recognizedas a liability (deferred revenue) in the statement of financial position and recognized as revenue when the points are redeemed,have expired or are no longer expected to be redeemed. The amount of revenue recognized is based on the number of points thathave been redeemed, relative to the number expected to redeem.

 

Asof June 30, 2016 and December 31, 2015, there was no such deferred revenue recorded.

 

Incometaxes

Currentincome taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognizedwhen temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the combined financialstatements.Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years.Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that aportion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities areindividually classified as current and non-current based on their characteristics.

 

Theimpact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-notto be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has lessthan a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisionsfor income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penaltiesrelated to potential underpaid income tax expense as of June 30, 2016 and December 31, 2015.

 

ForwardStock split  

OnJanuary 27, 2016, our Board of Directors declared a 1333-for-1 forward stock split of our outstanding common stock, par value$0.000001 per share in the form of a dividend (the “Stock Split”) with a record date of February 8, 2016 (the “RecordDate”). On February 22, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified us of its announcementof the payment date of the Stock Split as February 23, 2016 (the “Payment Date”). On the Payment Date, as a result ofthe Stock split, each holder of our common stock as of the Record Date received 1332 additional shares of our common stock foreach one share owned, rounded up to the nearest whole share. All common stock share amounts referenced in this Quarterly Reportgive retroactive effect to the Stock Split.

 

Comprehensiveloss

Comprehensiveloss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of ComprehensiveLoss.

 

Lossper share

Theloss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the period endedJune 30, 2016 and for the year ended December 31, 2015, there was no dilutive effect due to net loss.

 

Recentlyissued accounting pronouncements

 

Financialinstrument: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognitionand Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certainaspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscalyears, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly,the standard is effective for us on September 1, 2018. We are currently evaluating the impact that the standard will have on ourconsolidated financial statements.

 

Leases:In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on leaseamendments to the FASB AccountingStandard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currentlyin the process of evaluating the impact of the adoption of ASU 2016-2on our consolidated financial statements.

 

TheCompany believes that there were no other accounting standards recently issued that had or are expected to have a material impacton our financial position or results of operations.

GOING CONCERN
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN
3. GOING CONCERN

 

Theaccompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Companyhas incurred losses since its inception resulting in an accumulated deficit of $2,219,975 as of June 30, 2016. The ability tocontinue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining thenecessary financing to meet its obligations and repay its liabilities arising from normal business operations when they becomedue. These combined financial statements do not include any adjustments to the recoverability and classification of recorded assetamounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

TheCompany expects to finance operations primarily through cash flow from revenue and capital contributions from principal shareholders.In the event that we require additional funding to finance the growth of the Company’s current and expected future operationsas well as to achieve our strategic objectives, our principal shareholders have indicated the intent and ability to provide additionalequity financing.

 

Theseconditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuationas a going concern is dependent on our ability to meet obligations as they become due and to obtain additional equity or alternativefinancing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurancethat the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptableterms, or if at all. The financial statements do not include any adjustments that might result from the outcome of this- uncertainty.

OTHER RECEIVABLES AND OTHER ASSETS
6 Months Ended
Jun. 30, 2016
Other Receivables And Other Assets  
OTHER RECEIVABLES AND OTHER ASSETS
4. OTHER RECEIVABLES AND OTHER ASSETS

 

Otherreceivables and other assets consist of the following:

 

    As of 
June 30,
2016
    As of 
December 31,
2015
 
             
Deposits (1)   $ 28,063     $ 45,830  
Others (2)     3,812       7,494  
    $ 31,875     $ 53,324  

 

(1)         Depositsrepresented payments for rental, utilities, and construction funds to government department.

(2)         Othersmainly consists other miscellaneous payments.

PROPERTY, PLANT AND EQUIPMENT, NET
6 Months Ended
Jun. 30, 2016
Property, Plant and Equipment, Net [Abstract]  
PROPERTY, PLANT AND EQUIPMENT, NET
5. PROPERTY, PLANT AND EQUIPMENT, NET

 

Property,plant and equipment, net consist of the following:

 

    As of 
June 30,
2016
    As of 
December 31,
2015
 
             
Office equipment   $ 33,346     $ 19,160  
Computer equipment     50,649       29,945  
Furniture and fittings     7,632       12,238  
Electrical & fitting     376       -  
Motor vehicle     17,063       -  
Software and website     4,850       -  
Renovations     111,609       50,166  
      225,525       111,509  
                 
Less: Accumulated depreciation     (17,016 )     (6,652 )
                 
 Balance at end of period/year   $ 208,509     $ 104,857  

 

Depreciationexpenses charged to the statements of operations for the period ended June 30, 2016 and December 31, 2015 were $9,784 and $1,984respectively.

ACCRUALS AND OTHER PAYABLES
6 Months Ended
Jun. 30, 2016
Payables and Accruals [Abstract]  
ACCRUALS AND OTHER PAYABLES
6. ACCRUALS AND OTHER PAYABLES

 

Accrualsand other payables consist of the following:

 

    As of
June 30,
2016
    As of
December 31,
2015
 
             
Provisions   $ 942,157     $ 594,492  
Others     89,759       140,651  
 Balance at end of period/year   $ 1,031,916     $ 735,143  
AMOUNT DUE TO A DIRECTOR
6 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
AMOUNT DUE TO A DIRECTOR
7. AMOUNT DUE TO A DIRECTOR

 

    As of
June 30,
2016
    As of 
December 31,
2015
 
Amounts due to a director                
Lim Chun Hoo   $ 24,845     $ -  
RELATED PARTIES TRANSCTIONS
6 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
RELATED PARTIES TRANSCTIONS
  8. RELATED PARTIES TRANSCTIONS

 

Asof June 30, 2016 and December 31, 2015, the amount of due to a related party, Ho Wah Genting Group SdnBhd, was $458,027 and $557,406respectively. In addition, the amount to Dato’ Lim Hui Boon was $198,758 and 99,379 respectively as of June 30,2016 andDecember 31, 2015..

 

TheCompany recognized an expense of $24,649 pertaining to a forfeited deposit for a group air ticket during the six months endedJune 30, 2016, which was paid to its affiliate, Ho WahGenting Holiday Sdn. Bhd..

 

TheCompany recognized an expense of $104,785 pertaining to a forfeited deposit for a group air ticket during the year ended 31 December2015, which was paid to its affiliate, Ho WahGenting Holiday Sdn. Bhd.

COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
  9. COMMITMENTS AND CONTINGENCIES

 

CapitalCommitments

TheCompany engaged a third party to develop an operation software with the total contract amount of $48,069. As of June 30, 2016and December 31, 2015, Company has no capital commitments.

 

OperationCommitments

Thetotal future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, aswell as hardware trading platform as of June 30, 2016 are payable as follows:

 

Year ending December 31, 2016     49,150  
Year ending December 31, 2017     90,810  
Year ending December 31, 2018     22,122  
Total   $ 162,082  

 

Rentalexpense of the Company was $62,722 and $4,260 for the period ended June 30, 2016 and 2015, respectively.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Basis of presentation

Basisof presentation

Theaccompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principlesgenerally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 10 of RegulationS-X.

 

Thisbasis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned,and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

 

Fiscalyear end is December 31.

Use of estimates

Useof estimates

Thepreparation of consolidated financial statements in conformity with accounting principles generally accepted in the United Statesof America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilitiesand disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenuesand expenses during the reporting periods. Actual results could differ from those estimates.

Foreign currency translation and transactions

Foreigncurrency translation and transactions

Thefunctional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is UnitedStates Dollar “USD”). The financial statements of the Company are translated into USD using the exchange rate as ofthe balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translationgains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders' equity.

Cash and cash equivalents

Cashand cash equivalents

Cashand cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, andwhich have original maturities of three months or less when purchased.

Accounts receivable

Accountsreceivable

Accountsreceivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. Anestimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.The Company generally does not require collateral from its customers. For the period ended June 30, 2016 and for the year endedDecember 31, 2015, the Company did not write off any accounts receivable as bad debts.

Fair value of financial instruments

Fairvalue of financial instruments

FASBASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs tothose valuation techniques reflect assumptions other market participants would use based upon market data obtained from independentsources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

 

Level1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company hasthe ability to access.

 

Level2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fairvalue measurements.

 

ASC820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measurefair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized isbased on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximizethe use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2016 and December 31, 2015, none of theCompany’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivativefinancial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values dueto the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

Inventories

Inventories

Inventoriesare stated at lower of cost or market, with cost determined on a weighted-average method, and not to exceed net realizable value.The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods andthe raw material items with large amounts, and by a category basis for low value raw material items.

Property, plant and equipment, net

Property,plant and equipment, net

Property,plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis overthe following estimated useful lives:

 

Office equipment 10 years
Furniture and fixtures 10 years
Leasehold improvement 10 years

Revenue recognition

Revenuerecognition

Productsales − The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to theindependent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. Areserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of June 30, 2016and December 31, 2015.

 

Membershipfee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenuewill not be recognized until the 10 days cooling-off period is expired. For the period ended June 30, 2016 and for the year endedDecember 31, 2015, all membership feeswere waived by the Company for promotion purpose.

Loyalty program

Loyaltyprogram

TheCompany operates loyalty program which allows customer to accumulate redemption points when they purchase products from the Company.The redemption points can be used to purchase a selection of products at discounted price or redeem products.

 

TheCompany allocates consideration received from the sale of goods to the goods sold and the redemption points issued that are expectedto be redeemed.

 

Theconsideration allocated to the redemptions points issued is measured at fair value of the redemption points. It is recognizedas a liability (deferred revenue) in the statement of financial position and recognized as revenue when the points are redeemed,have expired or are no longer expected to be redeemed. The amount of revenue recognized is based on the number of points thathave been redeemed, relative to the number expected to redeem.

 

Asof June 30, 2016 and December 31, 2015, there was no such deferred revenue recorded.

Income taxes

Incometaxes

Currentincome taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognizedwhen temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the combined financialstatements.Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years.Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that aportion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities areindividually classified as current and non-current based on their characteristics.

 

Theimpact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-notto be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has lessthan a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisionsfor income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penaltiesrelated to potential underpaid income tax expense as of June 30, 2016 and December 31, 2015.

Forward Stock split

ForwardStock split  

OnJanuary 27, 2016, our Board of Directors declared a 1333-for-1 forward stock split of our outstanding common stock, par value$0.000001 per share in the form of a dividend (the “Stock Split”) with a record date of February 8, 2016 (the “RecordDate”). On February 22, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified us of its announcementof the payment date of the Stock Split as February 23, 2016 (the “Payment Date”). On the Payment Date, as a resultof the Stock split, each holder of our common stock as of the Record Date received 1332 additional shares of our common stockfor each one share owned, rounded up to the nearest whole share. All common stock share amounts referenced in this Quarterly Reportgive retroactive effect to the Stock Split.

Comprehensive loss

Comprehensiveloss

Comprehensiveloss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of ComprehensiveLoss.

Loss per share

Lossper share

Theloss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the period endedJune 30, 2016 and for the year ended December 31, 2015, there was no dilutive effect due to net loss.

Recently issued accounting pronouncements

Recentlyissued accounting pronouncements

 

Financialinstrument: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognitionand Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certainaspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscalyears, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly,the standard is effective for us on September 1, 2018. We are currently evaluating the impact that the standard will have on ourconsolidated financial statements.

 

Leases:In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on leaseamendments to the FASB AccountingStandard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currentlyin the process of evaluating the impact of the adoption of ASU 2016-2on our consolidated financial statements.

 

TheCompany believes that there were no other accounting standards recently issued that had or are expected to have a material impacton our financial position or results of operations.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Schedule of property, plant and equipment estimated useful lives

Property,plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis overthe following estimated useful lives:

 

Office equipment 10 years
Furniture and fixtures 10 years
Leasehold improvement 10 years
OTHER RECEIVABLES AND OTHER ASSETS (Tables)
6 Months Ended
Jun. 30, 2016
Other Receivables And Other Assets  
Schedule of other receivables and other assets

Otherreceivables and other assets consist of the following:

 

    As of 
June 30,
2016
    As of 
December 31,
2015
 
             
Deposits (1)   $ 28,063     $ 45,830  
Others (2)     3,812       7,494  
    $ 31,875     $ 53,324  

 

(1)         Depositsrepresented payments for rental, utilities, and construction funds to government department.

(2)         Othersmainly consists other miscellaneous payments.

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)
6 Months Ended
Jun. 30, 2016
Property, Plant and Equipment, Net [Abstract]  
Schedule of property, plant and equipment, net

Property,plant and equipment, net consist of the following:

 

    As of 
June 30,
2016
    As of 
December 31,
2015
 
             
Office equipment   $ 33,346     $ 19,160  
Computer equipment     50,649       29,945  
Furniture and fittings     7,632       12,238  
Electrical & fitting     376       -  
Motor vehicle     17,063       -  
Software and website     4,850       -  
Renovations     111,609       50,166  
      225,525       111,509  
                 
Less: Accumulated depreciation     (17,016 )     (6,652 )
                 
 Balance at end of period/year   $ 208,509     $ 104,857  
ACCRUALS AND OTHER PAYABLES (Tables)
6 Months Ended
Jun. 30, 2016
Payables and Accruals [Abstract]  
Schedule of accruals and other payables

Accrualsand other payables consist of the following:

 

    As of
June 30,
2016
    As of
December 31,
2015
 
             
Provisions   $ 942,157     $ 594,492  
Others     89,759       140,651  
 Balance at end of period/year   $ 1,031,916     $ 735,143  
AMOUNT DUE TO A DIRECTOR (Tables)
6 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
Schedule of due to director

    As of
June 30,
2016
    As of 
December 31,
2015
 
Amounts due to a director                
Lim Chun Hoo   $ 24,845     $ -  
COMMITMENTS AND CONTINGENCIES (Tables)
6 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future minimum lease payments under the non-cancellable operating lease

Thetotal future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, aswell as hardware trading platform as of June 30, 2016 are payable as follows:

 

Year ending December 31, 2016     49,150  
Year ending December 31, 2017     90,810  
Year ending December 31, 2018     22,122  
Total   $ 162,082  
ORGANIZATION AND BUSINESS (Details Narrative)
Jan. 18, 2016
shares
Share Exchange & Split-Off Agreement [Member]  
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]  
Number of shares surrender and cancellation 3,000,000
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
6 Months Ended
Jun. 30, 2016
Office Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
Furniture and fixtures [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Estimated useful lives P10Y
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - $ / shares
6 Months Ended
Jan. 27, 2016
Jan. 23, 2016
Jun. 30, 2016
Dec. 31, 2015
Accounting Policies [Abstract]        
Description of uncertain income tax position    

An uncertain income tax position will not be recognizedif it has less than a 50% likelihood of being sustained.

 
Description of forward stock split ratio

1333-for-1 forward stock split

     
Common stock, par value (in dollars per share) $ 0.000001   $ 0.000001 $ 0.000001
Number of shares issued upon forward stock split   1,332    
GOING CONCERN (Details Narrative) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accumulated deficit $ (2,219,975) $ (1,733,633)
OTHER RECEIVABLES AND OTHER ASSETS (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Other Receivables And Other Assets    
Deposits [1] $ 28,063 $ 45,830
Others [2] 3,812 7,494
Total other receivables and other assets $ 31,875 $ 53,324
[1] Deposits represented payments for rental, utilities, and construction funds to government department.
[2] Others mainly consists other miscellaneous payments.
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year $ 225,525 $ 111,509
Less: Accumulated depreciation (17,016) (6,652)
Balance at end of period/year 208,509 104,857
Office Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 33,346 19,160
Computer Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 50,649 29,945
Furniture and fixtures [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 7,632 $ 12,238
Electrical And Fitting [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 376
Motor Vehicle [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 17,063
Software And Website [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year 4,850
Renovations [Member]    
Property, Plant and Equipment [Line Items]    
Balance at beginning of period/year $ 111,609 $ 50,166
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Property, Plant and Equipment, Net [Abstract]      
Depreciation expenses $ 9,784 $ 1,894 $ 1,984
ACCRUALS AND OTHER PAYABLES (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]    
Provisions $ 942,157 $ 594,492
Others 89,759 140,651
Balance at end of period/year $ 1,031,916 $ 735,143
AMOUNT DUE TO A DIRECTOR (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Related Party Transaction [Line Items]    
Amounts due to a director $ 24,845
Mr. Lim Chun Hoo [Member]    
Related Party Transaction [Line Items]    
Amounts due to a director $ 24,845
RELATED PARTIES TRANSCTIONS (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Related Party Transaction [Line Items]    
Due to a related party $ 665,074 $ 233,100
Ho Wah Genting Group Sdn Bhd [Member]    
Related Party Transaction [Line Items]    
Due to a related party 458,027 557,406
Dato Lim Hui Boon [Member]    
Related Party Transaction [Line Items]    
Due to a related party 198,758 99,379
Ho WahGenting Holiday Sdn. Bhd [Member]    
Related Party Transaction [Line Items]    
Forfeited deposit for a group air ticket expenses $ 24,649 $ 104,785
COMMITMENTS AND CONTINGENCIES (Details)
Jun. 30, 2016
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Year ending December 31, 2016 $ 49,150
Year ending December 31, 2017 90,810
Year ending December 31, 2018 22,122
Total $ 162,082
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Rental expense $ 62,722 $ 4,260
Third Party [Member]    
Capital commitments $ 48,069