Quarterly Report (10-q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2021

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

For the transition period from ____________ to ____________

Commission File Number: 333-196336

PORTER HOLDING INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in Its Charter)

Nevada		42-1777496
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

36th Floor, Shenzhen Development Center, #2010, Renmin South Road

Luohu District, Shenzhen, Guangdong, China, 518001

(Address of principal executive offices, Zip Code)

+86-755-22230666

(Registrant’s telephone number, including area code)

_____________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

The number of shares outstanding of each of the issuer’s classes of common stock, as of August 15, 2021 is as follows:

Class of Securities		Shares Outstanding
Common Stock, $0.001 par value		508,110,000

PORTER HOLDING INTERNATIONAL, INC.

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

PART II
OTHER INFORMATION

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	32

Item 6.	Exhibits	32

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED).

PORTER HOLDING INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Table of Contents

	Page Number

Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020	4

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2021 and 2020	5

Condensed Consolidated Statements of Changes in Deficit for the Three and Six Months Ended June 30, 2021 and 2020	6

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020	7

Notes to Condensed Consolidated Financial Statements	8

3

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In U.S. dollars)

	June 30, 2021			December 31, 2020

ASSETS
CURRENT ASSETS
Cash	$	24,117		$	24,912
Accounts receivable, net of $46,303 and $30,933 allowance for doubtful accounts as of June 30, 2021 and December 31, 2020, respectively		2,611			18,502
Prepayments and other receivables		36,268			46,315
Due from shareholders		333,350			335,420
Total current assets		396,346			425,149

NON-CURRENT ASSETS
Long-term rental deposits		39,001			38,592
Long-term prepayments		2,997			5,758
Equipment, net		18,454			24,434
Operating lease right-of-use assets		428,618			539,945
Total non-current assets		489,070			608,729

TOTAL ASSETS	$	885,416		$	1,033,878

LIABILITIES AND DEFICIT

CURRENT LIABILITIES
Accounts payable	$	123,215		$	145,644
Accruals and other payables		311,382			683,482
Deferred revenue		279,030			355,398
Taxes payable		76,073			91,596
Amounts due to shareholders		2,481,444			2,046,988
Operating lease liabilities – current		287,434			216,180
Total current liabilities		3,558,578			3,539,288

NON-CURRENT LIABILITIES
Operating lease liabilities - non-current		204,757			347,656
TOTAL LIABILITIES		3,763,335			3,886,944

COMMITMENTS AND CONTINGENCIES

DEFICIT
Common stock, par value $0.001 per share; 750,000,000 shares authorized, 508,110,000 shares issued and outstanding as of June 30, 2021 and December 31, 2020		508,110			508,110
Additional paid-in capital		1,128,241			1,128,241
Accumulated deficit		(4,420,689	)		(4,489,416	)
Accumulated other comprehensive loss		(113,546	)		(80,923	)
Total Porter Holding International, Inc. stockholders’ deficit		(2,897,884	)		(2,933,988	)

Non-controlling interests		19,965			80,922
Total deficit		(2,877,919	)		(2,853,066	)

TOTAL LIABILITIES AND DEFICIT	$	885,416		$	1,033,878

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

4

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In U.S. dollars)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020

REVENUE, NET	$	12,475		$	43,667		$	26,962		$	470,933

COST OF REVENUE		(8,564	)		(5,830	)		(15,408	)		(379,804	)

GROSS PROFIT		3,911			37,837			11,554			91,129

TOTAL OPERATING EXPENSES		(274,228	)		(398,461	)		(575,865	)		(1,026,535	)

LOSS FROM OPERATIONS		(270,317	)		(360,624	)		(564,311	)		(935,406	)

TOTAL OTHER INCOME, NET		96,760			1,281			633,176			21,299

NET (LOSS) INCOME BEFORE TAXES		(173,557	)		(359,343	)		68,865			(914,107	)

Income tax expense		-			-			-			-

NET (LOSS) INCOME		(173,557	)		(359,343	)		68,865			(914,107	)

Less: Net income (loss) attributable to non-controlling interests		3,542			(16,831	)		138			(19,528	)

Net (loss) income attributable to Porter Holding International, Inc. common stockholders		(177,099	)		(342,512	)		68,727			(894,579	)

Other comprehensive (loss) income
Foreign currency translation (loss) income		(102,957	)		(5,034	)		(93,718	)		14,969

Total Comprehensive loss		(276,514	)		(364,377	)		(24,853	)		(899,138	)
Less: comprehensive loss attributable to non-controlling interests		(57,258	)		(16,380	)		(60,957	)		(22,104	)

Comprehensive (loss) income attributable to Porter Holding International, Inc. common stockholders	$	(219,256	)	$	(347,997	)	$	36,104		$	(877,034	)

Basic and diluted earnings (loss) per share	$	-	*	$	-	*	$	-	*	$	-	*

Weighted average number of common shares outstanding - basic and diluted		508,110,000			508,110,000			508,110,000			508,110,000

* Less than $0.01 per share

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

5

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIT

For the six months ended June 30, 2021 and 2020

(Unaudited)

(In U.S. dollars)

	Porter Holding International, Inc. Stockholders
	Common stock				Additional					Accumulated other			Non-
	Number				paid-in		Accumulated			comprehensive			controlling
	of shares		Amount		capital		deficit			income (loss)			interests			Total
Balance at December 31, 2020		508,110,000	$	508,110	$	1,128,241	$	(4,489,416	)	$	(80,923	)	$	80,922		$	(2,853,066	)

Net income (loss)		-		-		-		245,826			-			(3,404	)		242,422

Foreign currency translation adjustment		-		-		-		-			9,534			(295	)		9,239

Balance at March 31, 2021		508,110,000	$	508,110	$	1,128,241	$	(4,243,590	)	$	(71,389	)	$	77,223		$	(2,601,405	)

Net (loss) income		-		-		-		(177,099	)		-			3,542			(173,557	)

Foreign currency translation adjustment		-		-		-		-			(42,157	)		(60,800	)		(102,957	)

Balance at June 30, 2021		508,110,000	$	508,110	$	1,128,241	$	(4,420,689	)	$	(113,546	)	$	19,965		$	(2,877,919	)

	Common stock				Additional					Accumulated other			Non-
	Number				paid-in		Accumulated			comprehensive			controlling
	of shares		Amount		capital		deficit			income (loss)			interests			Total
Balance at December 31, 2019		508,110,000	$	508,110	$	1,077,986	$	(2,200,932	)	$	92,800		$	182,406		$	(339,630	)

Net loss		-		-		-		(552,067	)		-			(2,697	)		(554,764	)

Foreign currency translation adjustment		-		-		-		-			23,030			(3,027	)		20,003

Balance at March 31, 2020		508,110,000	$	508,110	$	1,077,986	$	(2,752,999	)	$	115,830		$	176,682		$	(874,391	)

Net loss		-		-		-		(342,512	)		-			(16,831	)		(359,343	)

Foreign currency translation adjustment		-		-		-		-			(5,485	)		451			(5,034	)

Balance at June 30, 2020		508,110,000	$	508,110	$	1,077,986	$	(3,095,511	)	$	110,345		$	160,302		$	(1,238,768	)

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

6

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In U.S. dollars)

	Six Months Ended June 30,
	2021			2020

Cash flows from operating activities
Net income (loss)	$	68,865		$	(914,107	)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Loss on disposal of equipment		113			-
Depreciation and amortization		6,114			26,591
Impairment on goodwill		-			33,954
Impairment on intangible asset		-			17,691
Gain on termination of a subsidiary		(61,822	)		-
Amortization of operating lease right-of-use assets		116,802			150,604
Allowance for doubtful accounts		15,370			162,831
Changes in assets and liabilities
Accounts receivable		553			1,188
Prepayments and other receivables		13,089			5,653
Operating lease liabilities		(77,455	)		(155,600	)
Accounts payable		(23,922	)		(4,421	)
Accruals and other payables		(374,343	)		97,444
Deferred revenue		(79,965	)		74,991
Tax payable		(16,459	)		(41,359	)
Net cash used in operating activities		(413,060	)		(544,540	)

Cash flows from investing activities
Purchase of equipment		-			(1,379	)
Purchase of intangible asset		-			(19,908	)
Net cash used in investing activities		-			(21,287	)

Cash flows from financing activities
Advances from shareholders		2,073,720			1,407,975
Repayments to shareholders		(1,657,930	)		(1,076,193	)
Net cash provided by financing activities		415,790			331,782

Effect of exchange rates on cash		(3,525	)		72,780

Net decrease in cash		(795	)		(161,265	)

Cash at beginning of period		24,912			224,733

Cash at end of period	$	24,117		$	63,468

Supplemental of cash flow information
Cash paid for interest expenses	$	-		$	-
Cash paid for income tax	$	-		$	-

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

7

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

1.	ORGANIZATION AND BUSINESS

Porter Holding International, Inc. (formerly known as Uni Line Corp., “ULNV” or the “Company”) was incorporated in the State of Nevada on September 5, 2013.

As of June 30, 2021, the Company has subsidiaries incorporated in countries and jurisdictions including the People’s Republic of China (“PRC”), Hong Kong, and Seychelles. As of June 30, 2021, the Company also effectively controls a number of variable interest entities (“VIEs”) through the Primary Beneficiaries, as defined below. The VIEs include:

(a) Shenzhen Porter Warehouse E-Commerce Co. Ltd. (“Porter E-Commerce”);

(b) Shenzhen Porter Shops Lot Technology Co., Ltd. (“Porter Consulting”); and

(c) Shenzhen Porter Commercial Perspective Network Co. Ltd. (“Porter Commercial”).

As a result of the above contractual arrangements, or the Contractual Arrangements, PGL has substantial control over the VIE Entities’ daily operations and financial affairs, election of their senior executives and all matters requiring shareholder approval. Furthermore, as the primary beneficiary of the VIE Entities, the Company is entitled to consolidate the financial results of the VIE Entities in its own consolidated financial statements under Financial Accounting Standards Board Accounting Standard Codification (“ASC”) Topic 810 and related subtopics related to the consolidation of variable interest entities, or ASC Topic 810.

On June 28, 2018, Portercity and Mr. Zhibo Mao established Weifang Portercity in Weifang, Shandong Province, the PRC, with a registered capital of RMB1,000,000 (approximately $146,000). Portercity and Mr. Zhibo Mao hold 60% and 40% equity interest in Weifang Portercity, respectively. Weifang Portercity is intended to be engaged in the business of providing various consulting services to its clients, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. Weifang Portercity was dissolved on April 22, 2021.

In August 2019, Porter E-Commerce acquired 60% of the equity interest in Shenzhen Qianhai Maihuolang E-commerce Co., Ltd. (“Maihuolang E-commerce”), which is engaged in the business of online E-commerce. In October 2019, the shareholders of Maihuolang E-commerce resolved that the registered capital from RMB 5,000,000 ($718,205) to RMB 5,263,157 ($756,005), and such increase in registered capital would be contributed by the non-controlling interest shareholder. Consequently, the equity interest in Maihuolang E-commerce owned by the Company was changed to 57%. On July 15, 2020, Porter E-Commerce entered into an Equity Transfer Agreement (the “Agreement”) with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $100,672) which amount is received on July 27, 2020. The Company did not report the operation of Maihuolang E-commerce as discontinued operation as the sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results. An impairment loss of $52,603 and a disposal gain of $4,791 were recognized.

In July 2020, the shareholders of Porter Consulting resolved that the registered capital from RMB 1,000,000 ($147,284) to RMB 1,176,470 ($173,275), and such increase in registered capital would be contributed by the non-controlling interest shareholder. Consequently, the equity interest in Porter Consulting owned by the Company was changed to 85%. Besides, Porter Consulting change from Shenzhen Yihuilian Information Consulting Co. Ltd. to Shenzhen Porter Shops Lot Technology Co., Ltd.

The Company and its subsidiaries and VIE entities (collectively referred to as the “Company”) focus its business as an innovative O2O (Online to Offline) business platform operator covering both online E-commerce and offline commercial chain entity of three dimensional synchronous operation together with integrated comprehensive services for merchant clients, service income from organizing and delivering an event and forum, and third-party payment service. Starting from the second quarter of 2018, the Company provides investment and corporate management consulting services to its clients.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries and its variable interest entities. All significant inter-company transactions and balances have been eliminated in consolidation.

8

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

The unaudited interim condensed consolidated financial information as of June 30, 2021, and for the three and six months periods ended June 30, 2021 and 2020 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in consolidated financial statements prepared in accordance with U.S. GAAP have not been included. The unaudited interim condensed consolidated financial information should be read in conjunction with the Consolidated Financial Statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, previously filed with the SEC on April 15, 2021.

In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these unaudited condensed consolidated financial statements, which are of a normal and recurring nature, have been included. The results reported in the unaudited condensed consolidated financial statements for any interim periods are not necessarily indicative of the results that may be reported for the entire year.

Liquidity and Going Concern

The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements.

The Company has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) its recurring loss from operations, despite approximately $68,865 net income attributable to the Company’s stockholders for the six months ended June 30, 2021 due to a one time compensation from a project terminated by counter party, (2) its accumulated deficit of approximately $4,420,689 as of June 30, 2021 and (3) the fact that the Company had negative operating cash flows of approximately $413,060 for the six months ended June 30, 2021.

In evaluating if there is substantial doubt about its ability to continue as a going concern, the Company is trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and expanding more revenue streams, (2) loans from existing directors and shareholders, and (3) equity or debt financing. The Company has certain plans to mitigate these adverse conditions and to increase the liquidity of the Company.

As of June 30, 2021, our cash balance was $24,117 and our current liabilities exceed current assets by $3,162,232. Our cash balance as of June 30, 2021 is no sufficient to support our operations for the next 12 months after the date that the financial statements issued. The negative operating results of cash flow and working capital for the quarter ended June 30, 2021 raise substantial doubt about our ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern.

During January to June 2021, the Company received loans from shareholders with approximately $2.1 million. On an on-going basis, the Company also received and will continue to receive financial support commitments from the Company’s related parties. However, if the Company is unable to obtain the necessary additional capital on a timely basis and on acceptable terms, the Company will be unable to implement its current plans for expansion, repay debt obligations or respond to competitive market pressures, which will have negative influence upon its business, prospects, financial condition and results of operations.

The Company believes if it is unable to obtain its resources to fund operations, it may be required to delay, scale back or eliminate some or all of its planned operations, which may have a material adverse effect on its business, results of operations and ability to operate as a going concern.

9

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Use of Estimates

The preparation of these unaudited condensed consolidated financial statements requires management of the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Identified below are the accounting policies that reflect the Company’s most significant estimates and judgments, and those that the Company believes are the most critical to fully understanding and evaluating its unaudited condensed consolidated financial statements.

VIE Consolidation

The Company’s VIEs with the exception of Weifang Portercity and Porter Consulting, are wholly owned by Mr. Zonghua Chen and Ms. Xiaomei Xiong as nominee shareholders. For the consolidated VIEs, management made evaluations of the relationships between the Company and the VIEs and the economic benefit flow of contractual arrangements with the VIEs. In connection with such evaluation, management also took into account the fact that, as a result of such contractual arrangements, the Company controls the shareholders’ voting interests in these VIEs. As a result of such evaluation, management concluded that the Company is the primary beneficiary of its consolidated VIEs.

PRC laws and regulations prohibit or restrict foreign ownership of companies that operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses in which the Company is engaged or could be deemed to be engaged. Consequently, the Company conducts certain of its operations and businesses in the PRC through its VIEs. The Company consolidates in its consolidated financial statements all of the VIEs of which the Company is the primary beneficiary.

10

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

The following financial information of the Company’s consolidated VIEs (including subsidiary of VIEs) is included in the accompanying unaudited condensed consolidated financial statements:

	June 30, 2021		December 31, 2020
ASSETS
CURRENT ASSETS
Cash	$	13,347	$	13,013
Accounts receivable, net		2,611		3,132
Prepayments and other receivables		36,219		46,026
Due from shareholders		439,974		435,975
Amount due from the Company and its non-VIE subsidiaries (1)		593,709		441,759
Total current assets		1,085,860		939,905

NON-CURRENT ASSETS
Long term rental deposit		39,001		38,592
Long term prepayment		2,997		5,758
Equipment, net		17,638		23,410
Operating lease right-of-use assets		428,618		539,945
Total non-current assets		488,254		607,705

TOTAL ASSETS	$	1,574,114	$	1,547,610

CURRENT LIABILITIES
Accounts payable	$	123,215	$	145,644
Accruals and other payables		290,754		645,073
Deferred revenue		279,030		355,398
Tax payable		76,073		91,596
Amounts due to shareholders of the Company		2,714,654		2,294,151
Operating lease liability - current		287,434		216,180
Total current liabilities		3,771,160		3,748,042

NON-CURRENT LIABILITIES
Operating lease liability - non-current		204,757		347,656
TOTAL LIABILITIES	$	3,975,917	$	4,095,698

(1) Amount due from the Company and its non-VIE subsidiaries consists of inter-company from other non-VIE subsidiaries within the Company.

	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021		2020

Net revenue	$	12,475		$	43,601		$	26,962	$	420,914
Net (loss) income	$	(91,854	)	$	(242,260	)	$	234,600	$	(707,193	)

	Six Months Ended June 30,
	2021			2020

Net cash used in operating activities	$	(248,831	)	$	(350,296	)
Net cash used in investing activities		-			(21,287	)
Net cash provided by financing activities		249,027			220,748

11

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Revenue Recognition

The Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five step model prescribed under Accounting Standards Update (“ASU”) No. 2014-09: (i) identify contract(s) with a customer: Due to impact of COVID-19, the Company, starting from first quarter of 2020, determines to receive cash prior to performing investment and corporate management consulting services in order to ensure probable collection of consideration and hence existence of a contract; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) the Company satisfies the performance obligation.

Revenues are recognized when control of the promised goods or services is transferred to the customers, which may occur at a point in time or over time depending on the terms and conditions of the agreement, in an amount that reflects the consideration the Company expect to be entitled to in exchange for those goods or services.

The Company via Porter Consulting earns commissions of $6,573 and $15,182 for the three and six months ended June 30, 2021 respectively, primarily from a third-party payment service provider when China UnionPay card transactions are completed and settled. Commissions of $11,145 and $23,595 for the three and six months ended June 30, 2020 respectively, Revenue related to commissions is recognized in the statement of operation at the time when the underlying transaction is completed.

The third-party payment provider is a China UnionPay card acquiring institution and earns processing fees from China UnionPay card transactions. The Company’s performance obligation is to promote, via Porter Consulting, the payment service of the third-party payment service provider to merchants in Shenzhen, for which the Company shares a portion of the processing fees earned by the third-party payment service provider from China UnionPay, as commission.

Starting from the second quarter of 2018, the Company via Portercity provides various consulting services to its clients, especially to those who have the intention to be publicly listed in the stock exchanges in the United States and other countries. The Company categorizes its consulting services into three phases:

Phase I consulting services primarily include due diligence review, market research and feasibility study, business plan drafting, accounting record review, and business analysis and recommendations etc. Management estimates that Phase I normally takes around three months to complete based on its past experiences.

Phase II consulting services primarily include reorganization, pre-listing education and tutoring, talent search, legal and audit firm recommendation and coordination, VIE contracts and other public-listing related documents review, merger and acquisition planning, investor referral and pre-listing equity financing source identification and recommendation, independent directors and audit committee candidates recommendation; shell company identification and recommendation for customers expecting to become publicly listed through reverse merger transaction; etc. Management estimates that Phase II normally takes about five months to complete based its past experiences.

Phase III consulting services primarily include assistance in preparation of customers’ registration statement under IPO transactions or Form 8-K under reverse merger transactions; assistance in answering comments and questions received from regulatory agencies etc. Management believes it is very difficult to estimate the timing of this phase of service as the completion of Phase III services is not within the Company’s control.

12

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. Each phase of consulting services is standalone and fees associated with each phase are usually clearly identified in service agreements. Revenue from providing Phase I and Phase II consulting services to customers is recognized based on the output methods, including surveys of performance completed to date or milestones reached of each phase only when the Company has an enforceable right to payment for performance completed to date. Otherwise, such revenue is recognized at a point in time when services are delivered and accepted by customers. Revenue from providing Phase III consulting services to customers is recognized upon completion of reverse merger transaction or IPO transaction, which is evidenced by filing of 8-K for reverse merger transaction or receipt of effective notice from regulatory agencies for IPO transaction. Revenue that has been billed and not yet recognized is reflected as deferred revenue on the consolidated balance sheets.

Depending on the complexity of the underlying service arrangement and related terms and conditions, significant judgments, assumptions and estimates may be required to determine when substantial delivery of contract elements has occurred, whether any significant ongoing obligations exist subsequent to contract execution, whether amounts due are collectible and the appropriate period or periods in which, or during which, the completion of the earnings process occurs. Depending on the magnitude of specific revenue arrangements, adjustment may be made to the judgments, assumptions and estimates regarding contracts executed in any specific period. Service income from consulting services, totaled nil and nil for the three and six months period ended June 30, 2021, is recognized when the service is performed. Service income from consulting services, totaled $626 and $306,286 for the three and six months ended June 30, 2020.

In accordance with ASC 606, the Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned by PPBGL as commissions. When the Company is primarily obligated in a transaction, is subject to inventory risk, has latitude in establishing prices and selecting suppliers, or has several but not all of these indicators, revenues should be recorded on a gross basis. When the Company is not the primary obligor, does not bear the inventory risk and does not have the ability to establish the price, revenues are recorded on a net basis. The Company determined that it is not the primary obligor in its trading business. For the three and six months period ended June 30, 2021, the Company recognized a net revenue of $5,423 and $8,659, when control of the products has transferred, being at the point the products are delivered to the customer and the customer has accepted the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. For the three and six months ended June 30, 2020, the Company recognized a net revenue of $nil and $11,928.

Starting from the first quarter of 2019, the Company, via PPBGL, Maihuolang E-commerce and Porter Commercial, provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels and promotion strategy, and capital market operation, via live and online sessions. Under ASC Topic 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable. The fees associated with the course of training sessions are clearly identified in service agreements. Training service revenue is recognized at the time when the training sessions stipulated in the contract are completed. The Company recognized nil and $1,947 for the three and six months period ended June 30, 2021. The Company recognized $11,865 and $89,643 for the three and six months ended June 30, 2020.

Practical expedients and exemption

The company has not incurred any costs to obtain contracts, and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Other service income is earned when services have been rendered.

13

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Revenue by major product line

	For Three Months Ended June 30,				For Six Months Ended June 30,
	2021		2020		2021		2020

Investment and corporate management consulting services	$	-	$	626	$	-	$	306,286
Training service		-		11,865		1,947		89,643
Third-party payment service		6,573		11,145		15,182		23,595
Trading business		5,423		-		8,659		11,928
Others		479		20,031		1,174		39,481
	$	12,475	$	43,667	$	26,962	$	470,933

Revenue by recognition over time vs point in time

	For Three Months Ended June 30,				For Six Months Ended June 30,
	2021		2020		2021		2020

Revenue by recognition over time	$	-	$	626	$	-	$	306,286
Revenue by recognition at a point in time		12,475		43,041		26,962		164,647
	$	12,475	$	43,667	$	26,962	$	470,933

Revenue by recognition gross vs net

	For Three Months Ended June 30,				For Six Months Ended June 30,
	2021		2020		2021		2020

Revenue by gross	$	7,052	$	43,667	$	18,303	$	459,005
Revenue by net		5,423		-		8,659		11,928
	$	12,475	$	43,667	$	26,962	$	470,933

Foreign Currency and Foreign Currency Translation

The functional currency of the Company and PGL is the United States dollar (“US dollar”). The functional currency of the PPBGL is the Hong Kong dollar. The Company’s subsidiary and VIEs with operations in PRC uses the local currency, the Chinese Yuan (“RMB”), as their functional currencies. An entity’s functional currency is the currency of the primary economic environment in which it operates, normally that is the currency of the environment in which the entity primarily generates and expends cash. Management’s judgment is essential to determine the functional currency by assessing various indicators, such as cash flows, sales price and market, expenses, financing and inter-company transactions and arrangements.

Foreign currency transactions denominated in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are re-measured at the applicable rates of exchange in effect at that date. Gains and losses resulting from foreign currency re-measurement are included in the statements of comprehensive loss.

The unaudited condensed consolidated financial statements are presented in U.S. dollars. Assets and liabilities are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date, and revenues and expenses are translated at the average of the exchange rates in effect during the reporting period. Stockholders’ equity accounts are translated using the historical exchange rates at the date the entry to stockholders’ equity was recorded, except for the change in retained earnings during the period, which is translated using the historical exchange rates used to translate each period’s statement of operation. Differences resulting from translating functional currencies to the reporting currency are recorded in accumulated other comprehensive income in the unaudited condensed consolidated balance sheets.

14

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Translation of amounts from RMB into U.S. dollars has been made at the following exchange rates:

Balance sheet items, except for equity accounts
June 30, 2021	RMB6.4566 to $1	HKD7.7658 to $1
December 31, 2020	RMB6.5250 to $1	HKD7.7534 to $1

Statement of operation and cash flows items
For the six-month period ended June 30, 2021	RMB6.4702 to $1	HKD7.7617 to $1
For the six-month period ended June 30, 2020	RMB7.0322 to $1	HKD7.7608 to $1
For the three-month period ended June 30, 2021	RMB6.4594 to $1	HKD 7.7654 to $1
For the three-month period ended June 30, 2020	RMB7.0841 to $1	HKD7.7510 to $1

Net loss per share of common stock

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the statement of operation for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying unaudited condensed consolidation financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021		2020

Net (loss) income attributable to Porter Holding International, Inc.	$	(177,099	)	$	(342,512	)	$	68,727	$	(894,579	)

Weighted average number of common shares outstanding - basic and diluted		508,110,000			508,110,000			508,110,000		508,110,000

Basic and diluted loss per share	$	-		$	-		$	-	$	-

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

Segments

The Company evaluates a reporting unit by first identifying its operating segments, and then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meets the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company reports two reportable segments in consulting services, as well as training services and others.

Fair Value of Financial Instruments

U.S. GAAP establishes a three-tier hierarchy to prioritize the inputs used in the valuation methodologies in measuring the fair value of financial instruments. This hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three-tier fair value hierarchy is:

Level 1 – observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – include other inputs that are directly or indirectly observable in the market place.

Level 3 – unobservable inputs which are supported by little or no market activity.

The carrying value of the Company’s financial instruments, including cash, accounts and other receivables, other current assets, accounts and other payables, and other short-term liabilities approximate their fair value due to their short maturities.

15

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. The lease has remaining lease term of approximately four years. Lease expense is recognized on a straight-line basis over the lease term. The Company elected the package of practical expedients permitted under the transition guidance to combine the lease and non-lease components as a single lease component for operating leases associated with the Company’s office space lease, and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.

ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets.

ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company recognized no impairment of ROU assets as of June 30, 2021 and December 31, 2020.

The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current on the unaudited condensed consolidated balance sheets.

Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued Accounting Standards Update No. 2016-13,”Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023.The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements, particularly its recognition of allowances for accounts receivable.

Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial position, statements of operations and cash flows.

3.	BUSINESS COMBINATIONS

Disposition

On July 15, 2020, Porter E-Commerce entered into the Agreement with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $100,672) which amount is received on July 27, 2020. The Company did not report the operation of Maihuolang E-commerce as discontinued operation as the sale did not represent a strategic shift that would have a major effect on the Company’s operations and financial results. An impairment loss of $52,603 and a disposal gain of $4,791 were recognized for the year ended December 31, 2020.

16

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

4.	ACCOUNTS RECEIVABLE, NET

Accounts receivable consist of the following:

	June 30, 2021			December 31, 2020

Billed	$	46,303		$	46,303
Unbilled		2,611			3,132
Accounts receivable		48,914		$	49,435
Less: allowance for doubtful accounts		(46,303	)		(30,933	)
	$	2,611		$	18,502

The following table sets forth the movement of allowance for doubtful accounts:

	June 30, 2021		December 31, 2020

Beginning	$	30,933	$	3,065
Additions		15,370		1,051,816
Write off		-		(1,023,948	)
Exchange rate difference		-		-
Balance	$	46,303	$	30,933

5.	PREPAYMENTS AND OTHER RECEIVABLES

Prepayments and other receivables consist of the following:

	June 30, 2021		December 31, 2020

Prepayments	$	13,929	$	10,448
Others		22,339		35,867
	$	36,268	$	46,315

6.	EQUIPMENT, NET

Equipment, net consist of the following:

	June 30, 2021			December 31, 2020

Office and computer equipment	$	76,926		$	185,009
Less: Accumulated depreciation		(58,472	)		(149,130	)
		18,454			35,879
Impairment		-			(10,816	)
Exchange rate difference		-			(629	)
Net value	$	18,454		$	24,434

17

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

Depreciation expenses charged to the statements of operations For the six months ended June 30, 2021 and 2020 were $6,114 and $9,683, respectively. Depreciation expenses charged to the statements of operations for the three months ended June 30, 2021 and 2020 were $3,137 and $4,734, respectively. Loss on disposal of equipment for the six months ended June 30, 2021 and 2020 were $113 and nil, respectively.

7.	INTANGIBLE ASSETS, NET

Intangible assets, net, consist of the following:

	June 30, 2021		December 31, 2020

Software copyright	$	-	$	-
Domain names and trademarks		-		42,473
Intangible asset		-		42,473
Less: Accumulated amortization		-		(18,126	)
		-		24,347
Impairment		-		(23,009	)
Exchange rate difference		-		(1,338	)
Net value	$	-	$	-

Amortization charged to the statements of operations for the six months period ended June 30, 2021 and 2020 were nil and $16,908, respectively. Amortization charged to the statements of operations for the three months period ended June 30, 2021 and 2020 were nil and $8,425, respectively.

For the six months ended June 30, 2021 and 2020, nil and $17,609 of impairment of intangible assets was recognized, respectively.

8.	ACCRUALS AND OTHER PAYABLES

Accruals and other payables consist of the following:

	June 30, 2021		December 31, 2020

Salary payables	$	27,606	$	185,396
Refund to a third party*		232,320		306,513
Accrued professional fees		19,778		33,735
Accrued rental expenses		2,211		155,539
Others		29,467		2,299
	$	311,382	$	683,482

*Refund to a third party is resulted from the fact that Henan Longji Real Estate Development Co., Ltd. (“Longji Real Estate”) filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to a loan of RMB 2 million (approximately $309,761) which occurred before Porter E-Commerce merged with the Company on April 13, 2020. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. This amount is co-related to the amount due from shareholders in Note 9.

18

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

9.	BALANCES WITH RELATED PARTIES

	Note	June 30, 2021		December 31, 2020
Due from shareholders
Mr. Zongjian Chen and Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)	(a)	$	309,761	$	306,513
Mr. Zongjian Chen (brother of Mr. Zonghua Chen)			23,589		28,907
		$	333,350	$	335,420

Due to shareholders
Mr. Zonghua Chen (the Company’s Chairman, Chief Executive Officer, Chief Financial Officer and President)		$	1,455,950	$	2,046,988
Ms. Xiaomei Xiong (wife of Mr. Zongjian Chen)			1,025,494		-
		$	2,481,444	$	2,046,988

(a)

On April 13, 2020, Longji Real Estate filed an action against Porter E-Commerce, Zongjian Chen and Xue’an Yan related to certain loan of RMB 2 million (approximately $309,761) which occurred before Porter E-Commerce merged with the Company. On May 10, 2020, Porter E-Commerce, Zongjian Chen, Xue’an Yan and Longji Real Estate reached a settlement under which Porter E-Commerce agreed to pay off the loan principal of RMB 2 million in two installments before June 30, 2021 and interest accrued on unpaid principal since January 1, 2020 at a rate of 6% per annum. In addition, under the settlement, Zongjian Chen and Xue’an Yan, the two original shareholders of Porter E-Commerce agreed to be severally and jointly liable for the payoff of the principal and interest of the loan. Porter E-Commerce, Zongjian Chen and Xue’an Yan were also jointly liable for the litigation costs of RMB11,400 (approximately $1,766). This is co-related to the amount of refund to a third party in Note 8.

All the above balances are due on demand, interest-free and unsecured. The Company used the funds for its operations. For the six months ended June 30, 2021, the Company had transactions amounted $2,073,720 from shareholders and $1,657,930 to shareholders, comparing to $1,407,975 from shareholders and $1,076,193 to shareholders, for the same period in 2020.

10.

INCOME TAXES

The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled.

ULNV is incorporated in the State of Nevada and is subject to the U.S. federal tax and has incurred net operating loss for income tax purposes through June 30, 2021. As of June 30, 2021, future net operating losses of approximately $56,837 from ULNV are available to offset future taxable income. Accumulated deficit as of June 30, 2021 and December 31, 2020 was approximately $4.4 million and $4.5 million, respectively.

The 2017 Tax Act created a new requirement that, for the periods beginning after January 1, 2018, certain income (referred to as global intangible low taxed income or “GILTI”) earned by foreign subsidiaries in excess of a deemed return on tangible assets of foreign corporations must be included in U.S. taxable income. The GILTI income is eligible for a deduction, which lowers the effective tax rate to 10.5% for calendar years 2018 through 2025 and 13.125% after 2025. Under U.S. GAAP, companies are allowed to make an accounting policy election to either (i) account for GILTI as a component of tax expense in the period in which a company is subject to the rules – the period cost method, or (ii) account for GILTI in a company’s measurement of deferred taxes – the deferred method. The Company elected to account for GILTI in the period the tax is incurred. The Company did not generate any GILTI during the six-month period ended June 30, 2021.

PGL is registered as an international business company and is exempted from corporation tax in Seychelles.

PPBGL is subject to Hong Kong profits tax rate of 16.5%. For the six-month period ended June 30, 2021 and 2020, it did not have any assessable profits arising in or derived from Hong Kong and accordingly no provision for Hong Kong profits tax was made.

19

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

PRC Tax

The Company’s subsidiary and consolidated VIEs in China are subject to corporate income tax (“CIT”) at 25% for the six-month period ended June 30, 2021 and 2020. As of June 30, 2021, the Company had approximately $3.1 million of net operating loss carried forward from the foreign subsidiaries which will expire in various years through 2026.

A reconciliation of the income tax expense determined at the statutory income tax rate to the Company’s income taxes is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
(Loss)/Profit before income taxes	$	(173,557	)	$	(359,343	)	$	68,865		$	(914,107	)
United States statutory income tax rate		21	%		21	%		21	%		21	%
Income tax (benefit)/expense computed at statutory corporate income tax rate		(36,447	)		(75,462	)		14,462			(191,962	)
Reconciling items:
Effect of different tax jurisdictions		(10,105	)		15,551			(24,785	)		(15,829	)
Non-deductible expenses		3,360			23,492			3,951			76,189
Change in valuation allowance		43,192			36,419			6,372			131,602
Income tax expense	$	-		$	-		$	-		$	-

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of June 30, 2021 and December 31, 2020 are presented below

	June 30, 2021			December 31, 2020

Deferred tax assets:
Net operating loss carryforwards:
- United States of America	$	11,936		$	11,432
- Hong Kong		45,852			44,147
- PRC		770,469			766,306
		828,257			821,885
Less: Valuation allowance		(828,257	)		(821,885	)
Disposal:
- PRC		-			(187,240	)
Less: Valuation allowance		-			187,240
	$	-		$	-

Management believes that it is more likely than not that the Company will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As a result, a valuation allowance was provided against the full amount of the potential tax benefits.

11.

CHINA CONTRIBUTION PLAN

The Company’s subsidiaries and consolidated VIEs in China participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company’s subsidiaries and consolidated VIEs to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company’s China-based subsidiaries and consolidated VIEs have no further commitments beyond their monthly contributions. For the three and six months ended June 30, 2021, the Company’s China based subsidiaries and consolidated VIEs contributed a total of $7,974 and $15,475, respectively, to these funds. For the three and six months ended June 30, 2020, the Company’s China based subsidiaries and consolidated VIEs contributed a total of $4,075 and $11,263, respectively, to these funds.

20

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

12.

OPERATING LEASE

The Company has operating leases for its office facilities. The Company's leases have remaining terms of approximately four years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes.

The Company subleases certain office space to a third party that has a remaining term of less than 12 months.

The following table provides a summary of leases by balance sheet location as of June 30, 2021 and December 31, 2020:

Assets/liabilities	June 30, 2021		December 31, 2020
Assets
Operating lease right-of-use assets	$	428,618	$	539,945

Liabilities
Operating lease liability - current	$	287,434	$	216,180
Operating lease liability - non-current		204,757		347,656
Total lease liabilities	$	492,191	$	563,836

The operating lease expenses were as follows:

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Cost	Classification	2021		2020		2021		2020
Operating lease cost	General and administrative expenses	$	69,547	$	91,684	$	138,847	$	184,788

Maturities of operating lease liabilities at June 30, 2021 were as follows:

Maturity of Lease Liabilities	Operating Leases
12 months ending June 30,
2022		316,422
2023		210,947
Total lease payments		527,369
Less: interest		(35,178	)
Present value of lease payments	$	492,191

Lease liabilities include lease and non-lease component such as management fee.

Future minimum lease payments, which do not include the non-lease components, as of June 30, 2021 were as follows:

12 months ending June 30,
2022	$	234,005
2023		156,003
Total	$	390,008

Lease Term and Discount Rate	June 30, 2021
Weighted-average remaining lease term (years)
Operating leases--- Shenzhen Development Center, 36/F, LuoHu, Shenzhen		1.67

Weighted-average discount rate (%)
Operating leases		8	%

21

Table of Contents

PORTER HOLDING INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In U.S. dollars)

13.

CONCENTRATIONS AND CREDIT RISK

(a)	Concentrations

In the three months ended June 30, 2021, no customers accounted for over 10% of the Company’s revenues, respectively. In the six months ended June 30, 2021, no customers accounted for more than 10% of the Company’s revenues, respectively.

In the three months ended June 30, 2020, no customer accounted for over 10% of the Company’s revenues, respectively. In the six months ended June 30, 2020, two customers accounted for 65% and 11% of the Company’s revenues, respectively.

No other customer accounts for more than 10% of the Company’s revenue in the six months ended June 30, 2021 and 2020.

As of June 30, 2021, two customer accounted for 90% of the Company’s accounts receivable. As of June 30, 2020, three customers accounted for 75% of the Company’s accounts receivable.

(b)	Credit risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash. As of June 30, 2021, and December 31, 2020, substantially all of the Company’s cash were held by major financial institutions located in the PRC, which management believes are of high credit quality.

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

14.

SEGMENT REPORTING

During the period ended June 30, 2021, the Company reports two reportable segments in consulting services, as well as training services and others.

Revenues and associated costs are directly attributable to the related segments. Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, are managed centrally at a consolidated level.

The Company’s Chief Operating Decision Maker does not evaluate operating segments using asset information.

Information about segments during the periods presented were as follows. For comparative purposes, amounts in prior period has been recast:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenue
Consulting services		-			626			-			306,286
Training services and others		12,475			43,041			26,962			164,647
Total revenue		12,475			43,667			26,962			470,933
Loss from operations
Consulting services		(127,447	)		(93,742	)		(268,037	)		(529,929	)
Training services and others		(72,114	)		(165,535	)		(144,229	)		(165,988	)
Corporate costs, unallocated		(70,756	)		(101,347	)		(152,045	)		(239,489	)
Total loss from operations	$	(270,317	)	$	(360,624	)	$	(564,311	)	$	(935,406	)

15.

SUBSEQUENT EVENT

The Company has analyzed its operations subsequent to June 30, 2021 to the date these consolidation financial statements were issued. There is not material subsequent events to disclose in these consolidated financial statements.

22

Table of Contents

ITEM 2.

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

Investors are cautioned that you are not buying shares of a China-based operating company but instead are buying shares of a shell company issuer that maintains contractual arrangements with the associated operating company. Our PRC subsidiary has nominal operations or assets. We conduct our business in China through our consolidated VIE and its subsidiaries.

The following management’s discussion and analysis should be read in conjunction with our financial statements and the notes thereto and the other financial information appearing elsewhere in this report. Our financial statements are prepared in U.S. dollars and in accordance with U.S. GAAP.

Special Note Regarding Forward Looking Statements

In addition to historical information, this report contains forward-looking statements. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth; any projections of earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in our Annual Report on Form 10-K filed on April 15, 2021, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Use of Terms

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

●

“Company”, “we”, “us” and “our” are to the combined business of Porter Holding International, Inc., a Nevada corporation, and its consolidated subsidiaries and variable interest entities;

●

“PGL” are to Porter Group Limited, a Republic of Seychelles company and our wholly-owned subsidiary;

●

“PPBGL” are to Porter Perspective Business Group Limited, a Hong Kong company and wholly-owned subsidiary of PGL;

●

“Qianhai Porter” are to Shenzhen Qianhai Porter Industrial Co. Ltd., a PRC company and wholly-owned subsidiary of PPBGL;

●

“Portercity” are to Shenzhen Porter Enterprise Management Services Co. Ltd., a PRC company;

●

“Porter E-Commerce” are to Shenzhen Porter Warehouse E-Commerce Co. Ltd., a PRC company and wholly-owned subsidiary of Portercity;

●

“Porter Consulting” are to Shenzhen Porter Shops Lot Technology Co., Ltd., a PRC company and 85% owned subsidiary of Portercity;

●

“Porter Commercial” are to Shenzhen Porter Commercial Perspective Network Co., Ltd., a PRC company and wholly-owned subsidiary of Portercity;

●

“Weifang Portercity” are to Weifang Porter City Commercial Management Company Limited, a PRC company and a 60% owned subsidiary of Portercity. Weifang Portercity was dissolved on April 22, 2021.

●

“VIEs” means our consolidated variable interest entities, including Portercity and its subsidiaries, Porter E-Commerce, Porter Consulting and Porter Commercial as depicted in our organizational chart below;

●

“Hong Kong” refers to the Hong Kong Special Administrative Region of the People’s Republic of China;

23

Table of Contents

●

“China” and “PRC” refer to the People’s Republic of China;

●

“Renminbi” and “RMB” refer to the legal currency of China;

●

“U.S. dollars,” “dollars” and “$” refer to the legal currency of the United States;

●

“SEC” are to the U.S. Securities and Exchange Commission;

●

“Exchange Act” are to the Securities Exchange Act of 1934, as amended; and

●

“Securities Act” are to the Securities Act of 1933, as amended.

Overview

Our PRC subsidiary has nominal operations or assets. We conduct our business in China through our consolidated VIE and its subsidiaries. The following overview of our operations is an overview of the operations of our consolidated VIE and its subsidiaries. See “Item 1. Business—Our Corporate Structure” of our most recent Annual Report on Form 10-K filed on April 15, 2021 for a summary of the contractual arrangements between our PRC subsidiary and VIE, and “Item 1A. Risk Factors—Risks Relating to Our Commercial Relationship with VIEs” of our most recent Annual Report on Form 10-K filed on April 15, 2021 for certain risks related to the contractual arrangements and our corporate structure.

We were incorporated in the State of Nevada on September 5, 2013. Our original business plan was to sell freshly squeezed juices from mobile stands in London, United Kingdom, but this business was not successful and we did not generate any revenue from this business. Since 2016, through our VIE entity, Porter Consulting, we have partnered with China Payment Technology Co., Ltd., a third-party online payment service provider (“China Payment”) to promote China Payment’s online payment platform to companies and businesses in Shenzhen and in return share a portion of the processing fees earned by China Payment as commission. Porter Consulting also partners with Shenzhen Xinghua Tongfu Technology Co., Ltd., a third-party online payment service provider (“Shenzhen Tongfu”), whereby Porter Consulting agreed to promote Shenzhen Tongfu’s online payment platform, including the Point of Sale (POS) system, to companies and businesses in China and in return obtain a certain amount of commission based on the volume of trading through such online payment platform.

Our wholly-owned PRC subsidiary, Qianhai Porter, as a foreign investment enterprise under PRC laws, is not eligible to operate Internet information and content, Internet access, online games, mobile, value added telecommunications and certain other businesses. As a result, we conduct our business in China through our consolidated VIE, Portercity, and its subsidiaries. Qianhai Porter has nominal operations or assets and controls and receives 100% of the economic benefits of our VIE through contractual arrangements.

On July 15, 2020, Porter E-Commerce entered into an Equity Transfer Agreement (the “Agreement”) with Mr. Kezhan Ma, whereby Porter E-Commerce transferred its 57% equity interests in Maihuolang E-Commerce to Mr. Kezhan Ma, for cash consideration of RMB 650,000 (approximately $100,672). An impairment loss of $51,936 and a disposal gain of $4,730 were recognized.

Moreover, we have been developing our O2O (Online to Offline) business by serving as an O2O business platform operator that provides both online E-commerce and offline physical business facilities to our merchant customers where they can conduct business and interact with their existing and potential end-consumers face to face. Our goal is to provide one-stop services for our customers through our integrated online and offline platforms. As described fully below, we are developing and offering our O2O products and services including hosting our online marketplaces (www.pt37.com and www.17yugo.com) for our merchant clients to post and sell their products and services online and managing and operating physical business facilities, Porter City, that our online merchant clients can utilize to conduct their businesses offline. We currently focus on merchant clients who are engaged in manufacturing, real estate, trade and financing sectors. In the future, we intend to expand our merchant client base to industries of big data, new materials, new energy, green food and environment protection.

According to the development demands and goals of our customers, in 2018, we started to offer a series of services such as business planning, financial guidance, business matching and guidance for listing primarily in the United States. At present, in our customer pool, many small and medium-sized enterprises have gained certain public awareness. They are seeking the potential advantages of being a listed company and striving for obtaining the recognition of international capital to accelerate their corporate expansion. However, many enterprises may not be familiar with the listing requirements, laws and regulations of different capital markets, and the process of obtaining financing from overseas markets. In order to help our customers who intend to access overseas capital markets, we have a team of experienced professionals who have professional knowledge of the listing rules and regulations of various capital markets. We capitalize on our expertise and resources in the capital markets to assist these customers to achieve their goals.

24

Table of Contents

In addition, starting from the first quarter of 2019, we via PPBGL provide various training services to our clients, primarily those related to e-commerce platform operation, expansion of channels and promotion strategies, via live and online sessions.

Since the first half of 2020, the COVID-19 pandemic has depressed demand for the Company’s services, and adversely impacted the Company’s operating results. The Company’s revenue decreased by $443,971, or 94.27% to $26,962 for the six months ended June 30, 2021, compared to $470,933 for the same period of 2020. The Company has changed to require upfront cash payments prior to performing certain consulting services, in order to enhance collection of accounts receivable. The Company expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with COVID-19.

Recent Regulatory Developments in China

On July 6, 2021, the PRC government issued the Opinions on Strictly Cracking Down on Illegal Securities Activities, calling for: (i) tightening oversight of data security, cross-border data flow and administration of classified information, as well as amendments to relevant regulation to specify responsibilities of overseas listed Chinese companies with respect to data security and information security; (ii) enhanced oversight of overseas listed companies as well as overseas equity fundraising and listing by Chinese companies; and (iii) extraterritorial application of China’s securities laws. As the Opinions on Strictly Cracking Down on Illegal Securities Activities were recently issued, there are great uncertainties with respect to the interpretation and implementation thereof. We will closely monitor further developments.

In addition, on July 10, 2021, the Cyberspace Administration of China issued the Measures for Cybersecurity Review (Revision Draft for Comments), or the Measures, for public comments, which propose to authorize the relevant government authorities to conduct cybersecurity review on a range of activities that affect or may affect national security, including listings in foreign countries by companies that possess the personal data of more than one million users. The Measures are soliciting comments and subject to change. As we have less than one million users, we believe that the Measures are not applicable to us even after they take effect in current form. The PRC government is increasingly focused on data security, recently launching cybersecurity review against a number of mobile apps operated by several US-listed Chinese companies and prohibiting these apps from registering new users during the review period. There are great uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations regarding data and privacy security. We may be required to change our data and other business practices and be subject to regulatory investigations, penalties, increased cost of operations, or declines in user growth or engagement as a result of these laws and policies. Further, our consulting business with respect to overseas listing and capital raising may be adversely affected.

Results of Operations

Comparison of Three Months Ended June 30, 2021 and 2020

The following table sets forth key components of our results of operations during the three months ended June 30, 2021 and 2020, both in dollars and as a percentage of our revenue.

	Three Months Ended June 30,
	2021						2020
	Amount			% of Revenue			Amount			% of Revenue
Revenue, net	$	12,475			100.00		$	43,667			100.00
Cost of revenue		(8,564	)		(68.65	)		(5,830	)		(13.35	)
Gross profit		3,911			31.35			37,837			86.65
Operating expenses
General and administrative expenses		(274,228	)		(2,198.22	)		(398,461	)		(912.50	)
Loss from operations		(270,317	)		(2,166.87	)		(360,624	)		(825.85	)
Other income		96,760			775.63			1,281			2.93
Net loss before income taxes		(173,557	)		(1,391.24	)		(359,343	)		(822.92	)
Income tax expense		-			-			-			-
Net loss	$	(173,557	)		(1,391.24	)	$	(359,343	)		(822.92	)
Less: Net income (loss) attributable to non-controlling interests		3,542			28.39			(16,831	)		(38.55	)
Net loss attributable to Porter Holding International Inc. common stockholders	$	(177,099	)		(1,419.63	)	$	(342,512	)		(784.37	)

25

Table of Contents

Revenue. Our revenue was $12,475 for the three months ended June 30, 2021, compared to $43,667 for the same period last year. One of our revenue sources is to provide various consulting services to our customers, especially those who have the intention to be publicly listed, primarily on the stock exchanges in the United States. Service income from the provision of these consulting services totaled $nil and $626 for the three months ended June 30, 2021 and 2020, respectively. The decrease was mainly attributable to the impacts of COVID-19 and depressed market demand. Starting from 2019, the Company provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels, promotion strategy and capital market operation, via live and online sessions. The service income from providing training services totaled $nil and $11,865 for the three months ended June 30, 2021 and 2020. Through Porter Consulting, we also promoted the payment service of third-party payment service providers to merchants in Shenzhen and in return share a portion of the processing fees earned by the third-party payment service providers in the form of commission. Our commission totaled $6,573 and $11,145 for the three months ended June 30, 2021 and 2020, respectively. The approximately 41.02% decline in commission for the second quarter of 2021 was also the result of the COVID-19 pandemic. Revenues of $5,423 and $nil were generated from trading business for the three months ended June 30, 2021 and 2020, respectively. Revenue of others were $479 and $20,031 for the three months ended June 30, 2021 and 2020, respectively.

Due to the impact of COVID-19, the Company, starting from the first quarter of 2020, requests to receive cash prior to performing investment and corporate management consulting services in order to ensure collection of payment.

Cost of revenue. Our cost of revenue was $8,564 for the three months ended June 30, 2021, compared to $5,830 for the same period last year. Cost of revenue includes the costs incurred in performing consulting services, third-party payment service and other business. The cost of consulting service arises from shell acquisitions, and legal and accounting advisory service outsourced to third-party service providers. The increase of cost of revenue is due to smaller margins of trading business.

Gross profit and gross margin. Our gross profit was $3,911 for the three months ended June 30, 2021, compared to $37,837 for the same period last year. Gross profit as a percentage of revenue (gross margin) was 31.35% for the three months ended June 30, 2021, compared to 86.65% for the same quarter last year. The decrease of gross profit was mainly due to the decrease of business demand as a result of COVID-19.

General and administrative expenses. As shown below, our general and administrative expenses consist primarily of bad debt provision, compensation and benefits to our general management, finance and administrative staff, professional fees and other expenses incurred in connection with general operations. Our general and administrative expenses decreased by $124,233 to $274,228 for the three months ended June 30, 2021, compared to $398,461 for the same period of 2020. Decrease was mainly due to no impairment reserved during the three months ended June 30, 2021. An impairment of $51,645 related to the goodwill and intangible assets of Maihuolang E-Commerce was recognized for the three months ended June 30, 2020. Besides, there was a decrease in salary and staff benefit, lease and management fee and legal and professional fees of $14,801, $25,563 and $38,254, respectively, compared to corresponding period in prior year. The decrease was mostly due to the depressed market demand and the cost reduction strategy of the Company as a result of the impact of COVID-19.

	Three months ended June 30,
	2021				2020						Fluctuation
	Amount		%		Amount			%			Amount			%
Salary and staff benefits	$	89,492		32.63	$	104,293			26.17		$	(14,801	)		(14.19	)
Lease and management fee		67,594		24.65		93,157			23.38			(25,563	)		(27.44	)
Legal and professional fees		83,962		30.62		122,216			30.67			(38,254	)		(31.30	)
Depreciation and amortization		3,137		1.14		13,029			3.27			(9,892	)		(75.92	)
Bad debt recovery		15,370		5.60		(1,251	)		(0.31	)		16,621			(1,328.61	)
Impairment		-		-		51,645			12.96			(51,645	)		(100.00	)
Others		14,673		5.36		15,372			3.86			(699	)		(4.55	)
Total general and administrative expenses	$	274,228		100.00	$	398,461			100.00		$	(124,233	)		(31.18	)

Other income. Our other income was $96,760 and $1,281 for the three months ended June 30, 2021 and 2020. The increase was due to the dissolution of Weifang Portercity, and $61,822 investment gain recognized during the three months ended June 30, 2021.

Income tax expense. Our Income tax expense was $nil and $nil for the three months ended June 30, 2021 and 2020.

Net loss. As a result of the cumulative effect of the factors described above, there was a net loss of $173,557 and $359,343 for the three months ended June 30, 2021 and 2020, respectively.

26

Table of Contents

Comparison of Six Months Ended June 30, 2021 and 2020

The following table sets forth key components of our results of operations during the six months ended June 30, 2021 and 2020, both in dollars and as a percentage of our revenue.

	Six Months Ended June 30,
	2021						2020
	Amount			% of Revenue			Amount			% of Revenue
Revenue, net	$	26,962			100.00		$	470,933			100.00
Cost of revenue		(15,408	)		(57.15	)		(379,804	)		(80.65	)
Gross profit		11,554			42.85			91,129			19.35
Operating expenses
General and administrative expenses		(575,865	)		(2,135.84	)		(1,026,535	)		(217.98	)
Loss from operations		(564,311	)		(2,092.99	)		(935,406	)		(198.63	)
Other income		633,176			2,348.40			21,299			4.52
Net income (loss) before income taxes		68,865			255.42			(914,107	)		(194.11	)
Income tax expense		-			-			-			-
Net income (loss)	$	68,865			255.42		$	(914,107	)		(194.11	)
Less: Net income (loss) attributable to non-controlling interests		138			0.51			(19,528	)		(4.15	)
Net income (loss) attributable to Porter Holding International Inc. common stockholders		68,727			254.90			(894,579	)		(189.96	)

Revenue, net. Our revenue was $26,962 for the six months ended June 30, 2021, compared to $470,933 for the same period last year. Starting from the second quarter of 2018, we commenced providing various consulting services to our customers, especially those who have the intention to be publicly listed primarily on the stock exchanges in the United States, and we received service income from the provision of these consulting services totaled $nil and $306,286 for the six months ended June 30, 2021 and 2020, respectively. The significant decrease of revenue in the first six months of 2021 was mainly attributable to the impacts of COVID-19 and depressed market demand. Starting from 2019, the Company provides various training services to its clients, primarily related to e-commerce platform operation, expansion of channels, promotion strategy and capital market operation, via live and online sessions. The service income from providing training services totaled $1,947 and $89,643 for the six months ended June 30, 2021 and 2020. Through Porter Consulting we have also promoted the payment service of third-party payment service providers to merchants in Shenzhen and in return share a portion of the processing fees earned by such third-party payment service providers as commission. Our commission totaled $15,182 and $23,595 for the six months ended June 30, 2021 and 2020, respectively. The approximately 35.66% decline in commission for the first half of 2021 was also the result of the COVID-19 pandemic. Revenues of $8,659 and $11,928 were generated from trading business for the six months ended June 30, 2021 and 2020, respectively. Revenue of others were $1,174 and $39,481 for the six months ended June 30, 2021 and 2020, respectively.

Cost of revenue. Our cost of revenue was $15,408 for the six months ended June 30, 2021, compared to $379,804 for the same period last year. Cost of revenue refers to the cost incurred in performing consulting services, third-party payment service and other business. The cost of consulting service arises from shell acquisitions, and legal and accounting advisory service outsourced to third-party service providers. The decrease of cost of revenue in the six months ended June 30, 2021 is in line with the decrease of revenue.

Gross profit and gross margin. Our gross profit was $11,554 for the six months ended June 30, 2021, compared to $91,129 for the same period last year. Gross profit as a percentage of revenue (gross margin) was 42.85% for the six months ended June 30, 2021, compared to 19.35% for the same quarter last year. The decrease of gross profit was mainly due to the decrease of business demand as a result of the impacts of COVID-19.

General and administrative expenses. As shown below, our general and administrative expenses consist primarily of compensation and benefits to our general management, finance and administrative staff, professional fees and other expenses incurred in connection with general operations. Our general and administrative expenses decreased by $450,670 to $575,865 for the six months ended June 30, 2021, compared to $1,026,535 for the same period in 2020. Decrease was mainly due to that allowance for doubtful accounts decreased $147,461, from $162,831 to $15,370 during the six months ended June 30, 2021 and 2020. Due to the impact of COVID-19, the Company assessed that the collectability being not probable and hence provide bad debt provision for majority of receivable from the investment and corporate management consulting services for the six months period last year. Besides, no impairment reserved during the six months ended June 30, 2021. An impairment of $51,645 related to the goodwill and intangible assets of Maihuolang E-Commerce was recognized for the six months ended June 30, 2020. Moreover, there was a decrease in salary and staff benefit, lease and management fee and legal and professional fees of $112,948, $48,098 and $86,533, respectively, compared to corresponding period in prior year. The decrease was mostly due to the depressed market demand and the cost reduction strategy of the Company as a result of the impact of COVID-19.

27

Table of Contents

	Six months ended June 30,
	2021				2020				Fluctuation
	Amount		%		Amount		%		Amount			%
Salary and staff benefits	$	183,551		31.87	$	296,499		28.88	$	(112,948	)		(38.09	)
Lease and management fee		139,662		24.25		187,760		18.29		(48,098	)		(25.62	)
Legal and professional fees		180,534		31.35		267,067		26.02		(86,533	)		(32.40	)
Depreciation and amortization		6,114		1.06		26,591		2.59		(20,477	)		(77.01	)
Bad debt provision		15,370		2.67		162,831		15.86		(147,461	)		(90.56	)
Impairment		-		-		51,645		5.03		(51,645	)		(100.00	)
Others		50,634		8.80		34,142		3.33		16,492			48.30
Total general and administrative expenses	$	575,865		100.00	$	1,026,535		100.00	$	(450,670	)		(43.90	)

Other income. Our other income was $633,176 and $21,299 for the six months ended June 30, 2021 and 2020. The increase was primarily due to the compensation received with the termination of the Weifang project. During January 2021, Weifang Portercity agreed with the local government to terminate a project, which was signed on August 25, 2018 for Weifang Portercity to facilitate investment and promote business opportunities for the Weifang region. As the local government changed its development strategy, it determined to terminate the Weifang project. Consequently, Weifang Portercity received a compensation of approximately $0.5 million from the local government to compensate its upfront establishment expenses including expenditure relating to office renovation, office equipment and supplies. Weifang Portercity was dissolved on April 22, 2021. Besides, $61,822 investment gain was recognized during the six months ended June 30, 2021.

Income tax expense. Our Income tax expense was $nil and $nil for the six months ended June 30, 2021 and 2020.

Net income (loss). As a result of the cumulative effect of the factors described above, there was a net income of $68,865 and a net loss of $914,107 for the six months ended June 30, 2021 and 2020, respectively.

Liquidity and Capital Resources

Need for Additional Capital

Our business is subject to risks such as limited capital resources, a narrow client base, limited sources of revenue, and possible cost overruns due to the price and cost increases in supplies and services.

Without additional funding, management believes that we will not have sufficient funds to meet our obligations beyond one year after the date our unaudited condensed consolidated financial statements are issued. These conditions give rise to substantial doubt as to our ability to continue as a going concern.

We have been, and intend to continue, working toward identifying and obtaining new sources of financing. To date we have been dependent on related parties for our source of funding. No assurances can be given that we will be successful in obtaining additional financing in the future. Any future financing that we may obtain may cause significant dilution to existing stockholders. Any debt financing or other financing of securities senior to common stock that we are able to obtain will likely include financial and other covenants that will restrict our flexibility. Any failure to comply with these covenants would have a negative impact on our business, prospects, financial condition, results of operations and cash flows.

If adequate funds are not available, we may be required to delay, scale back or eliminate portions of our operations or obtain funds through arrangements with strategic partners or others that may require us to relinquish rights to certain of our assets. Accordingly, the inability to obtain such financing could result in a significant loss of ownership and/or control of our assets and could also adversely affect our ability to fund our continued operations and our expansion efforts.

Currently we spend approximately $200,000 per month for basic operations. During the next 12 months, we expect to incur a similar amount of expenses each month. However, as we work to expand our operations, we expect to incur significant research, marketing and development costs and expenses on our online service platforms that meet the constantly evolving industry standards and consumer demands. We may also need to hire additional employees in order to provide new services and accommodate new clients.

28

Table of Contents

Working Capital

	June 30, 2021			December 31, 2020
Current Assets	$	396,346		$	425,149
Current Liabilities		3,558,578			3,539,288
Working Capital Deficiency	$	(3,162,232	)	$	(3,114,139	)

As of June 30, 2021, we had cash of $24,117. To date, we have financed our operations primarily through borrowings from our stockholders, related and unrelated parties.

Going Concern Uncertainties

The accompanying unaudited condensed consolidated financial statements have been prepared assuming we will continue as a going concern.

We have considered whether there is substantial doubt about our ability to continue as a going concern given (1) our net loss from operations, despite approximately $68,865 net income attributable to our stockholders for the six months ended June 30, 2021 due to a one time compensation from the Weifang project, (2) our accumulated deficit of approximately $4,420,689 as of June 30, 2021 and (3) the fact that we had negative operating cash flows of approximately $413,060 for the six months ended June 30, 2021.

As of June 30, 2021, our cash balance was $24,117 and our current liabilities exceed current assets by $3,162,232. Our cash balance as of June 30, 2021 is not sufficient to support our operations for the next 12 months after the date that the financial statements issued. The negative operating results of cash flow and working capital deficiency for the quarter ended June 30, 2021 raise substantial doubt about our ability to continue as a going concern. Our continued operations are highly dependent upon our ability to increase revenues and if needed, to complete equity and/or debt financing.

In evaluating if there is substantial doubt about our ability to continue as a going concern, we are trying to alleviate the going concern risk through (1) increasing cash generated from operations by controlling operating expenses and increasing more live steaming e-commerce events to bring up e-commerce revenue, (2) financing from domestic banks and other financial institutions, and (3) equity or debt financing. We have certain plans to mitigate these adverse conditions and to increase the liquidity of the Company.

However, if we are unable to obtain the necessary additional capital on a timely basis and on acceptable terms, we will be unable to implement our current plans for expansion, repay debt obligations or respond to competitive market pressures, which will have negative impacts upon our business, prospects, financial condition and results of operations. On an on-going basis, the Company also received and will continue to receive financial support commitments from the Company’s related parties.

	Six Months Ended June 30,
	2021			2020
Net cash used in operating activities	$	(413,060	)	$	(544,540	)
Net cash used in investing activities		-			(21,287	)
Net cash provided by financing activities		415,790			331,782
Effect of exchange rate changes on cash		(3,525	)		72,780
Net decrease in cash		(795	)		(161,265	)
Cash at the beginning of period		24,912			224,733
Cash at the end of period	$	24,117		$	63,468

Operating Activities

Net cash used in operating activities was $413,060 for the six months ended June 30, 2021, as compared to $544,540 net cash used in operating activities for the six months ended June 30, 2020. The net cash used in operating activities for the six months ended June 30, 2021 was mainly due to our net income of $84,235, partially offset by the decrease in accruals and other payables of $374,343 and deferred revenue of $79,965. The net cash used in operating activities for the six months ended June 30, 2020 was mainly due to our net loss of $914,107, an increase in operating lease liability of $155,600 and tax payable of $41,359, partially offset by the decrease in accruals and other payables of $97,444 and deferred revenue of $74,991.

29

Table of Contents

Investing Activities

Net cash used in investing activities was $nil for the six months ended June 30, 2021, as compared to $21,287 net cash used in investing activities for the six months ended June 30, 2020. The net cash used in investing activities for the six months ended June 30, 2020 was attributable to the purchase of $1,379 of equipment and $19,908 of intangible assets.

Financing Activities

Net cash provided by financing for the six months ended June 30, 2021 was $415,790, as compared to $331,782 for the six months ended June 30, 2020. For the six months ended June 30, 2021, we obtained advances of $2,073,720 from shareholders and repaid $1,657,930 to shareholders. During the six months ended June 30, 2020, we obtained advances of $1,407,975 from shareholders and repaid $1,076,193 to shareholders.

Contractual Obligations and Commercial Commitments

We had the following contractual obligations and commercial commitments as of June 30, 2021:

Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Amounts due to shareholders	$	2,481,444	$	2,481,444	$	-	$	-	$	-
Leases		390,008		234,005		156,003		-		-
TOTAL	$	2,871,452	$	2,715,449	$	156,003	$	-	$	-

We believe that our current cash and financing from our existing stockholders are adequate to support operations for the next 12 months. We may, however, in the future, require additional cash resources due to changed business conditions, implementation of our strategy to expand our business or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

Capital Expenditures

We incurred capital expenditures of $nil and $21,287 for the six months ended June 30, 2021 and 2020, respectively.

Off-Balance Sheet Transactions

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Critical Accounting Policies

Our unaudited condensed consolidated financial information has been prepared in accordance with U.S. GAAP, which requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. There were no other material changes to the critical accounting policies previously disclosed in our audited consolidated financial statements for the year ended December 31, 2020 included in the Annual Report on Form 10-K filed on April 15, 2021.

30

Table of Contents

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4.

CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2021. Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.

Management conducted its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and chief financial officer. Based upon, and as of the date of this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of June 30, 2021 due to the following material weaknesses that our management identified in our internal control over financial reporting as of June 30, 2021:

(1) We did not hold shareholders meetings during the last fiscal year;

(2) We do not have an audit committee;

(3) We do not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of accounting principles generally accepted in the United States commensurate with our financial reporting requirements;

(4) We do not have appropriate policies and procedures in place to evaluate the proper accounting and disclosures of key documents and agreements of revenue process;

(5) We have not maintained sufficient internal controls over cash related controls, including failure to segregate cash handling and accounting functions and did not require dual signature on the Company’s bank accounts. Alternatively, the effects of poor cash controls were mitigated by the fact that we had limited transactions in our bank accounts; and

(6) We retain copies of all financial data and material agreements; however there is no formal procedure or evidence of normal backup of our data or off-site storage of data in the event of theft, misplacement, or loss due to unmitigated factors. We did not implement appropriate information technology controls.

A material weakness is a deficiency or a combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual financial statements will not be prevented or detected in a timely basis.

We plan to take steps to remediate these material weaknesses as soon as practicable by implementing a plan to improve our internal control over financial reporting including, but not limited to, hiring additional staff and/or outside consultants experienced in US GAAP financial reporting as well as in SEC reporting requirements. Our management team will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements.

Our management does not believe that these material weaknesses had a material effect on our financial condition or results of operations or caused our unaudited condensed consolidation financial statements as of and for the period ended June 30, 2021 to contain a material misstatement.

Changes in Internal Control over Financial Reporting

Except for the matters described above, there were no changes in our internal controls over financial reporting during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

31

Table of Contents

PART II

OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. We are currently not aware of any legal proceedings or claims that would require disclosure under Item 103 of Regulation S-K. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

ITEM 1A.

RISK FACTORS.

Not applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5.

OTHER INFORMATION.

None.

ITEM 6.

EXHIBITS.

The following exhibits are filed as part of this report or incorporated by reference:

Exhibit No.		Description

31.1		Certifications of Principal Executive Officer and Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certifications of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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––the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

32

Table of Contents

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.

Date: August 16, 2021

PORTER HOLDING INTERNATIONAL, INC.

By:	/s/ Zonghua Chen
	Zonghua Chen
	Chief Executive Officer and Chief Financial Officer

33

NONE false --12-31 Q2 2021 0001605810 0001605810 2021-01-01 2021-06-30 0001605810 2021-08-14 0001605810 2021-06-30 0001605810 2020-12-31 0001605810 2021-04-01 2021-06-30 0001605810 2020-04-01 2020-06-30 0001605810 2020-01-01 2020-06-30 0001605810 us-gaap:CommonStockMember 2020-12-31 0001605810 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001605810 us-gaap:RetainedEarningsMember 2020-12-31 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001605810 us-gaap:NoncontrollingInterestMember 2020-12-31 0001605810 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001605810 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001605810 2021-01-01 2021-03-31 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001605810 us-gaap:CommonStockMember 2021-03-31 0001605810 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001605810 us-gaap:RetainedEarningsMember 2021-03-31 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001605810 us-gaap:NoncontrollingInterestMember 2021-03-31 0001605810 2021-03-31 0001605810 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001605810 us-gaap:NoncontrollingInterestMember 2021-04-01 2021-06-30 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001605810 us-gaap:CommonStockMember 2021-06-30 0001605810 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001605810 us-gaap:RetainedEarningsMember 2021-06-30 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001605810 us-gaap:NoncontrollingInterestMember 2021-06-30 0001605810 us-gaap:CommonStockMember 2019-12-31 0001605810 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001605810 us-gaap:RetainedEarningsMember 2019-12-31 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001605810 us-gaap:NoncontrollingInterestMember 2019-12-31 0001605810 2019-12-31 0001605810 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001605810 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001605810 2020-01-01 2020-03-31 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001605810 us-gaap:CommonStockMember 2020-03-31 0001605810 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001605810 us-gaap:RetainedEarningsMember 2020-03-31 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001605810 us-gaap:NoncontrollingInterestMember 2020-03-31 0001605810 2020-03-31 0001605810 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001605810 us-gaap:NoncontrollingInterestMember 2020-04-01 2020-06-30 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001605810 us-gaap:CommonStockMember 2020-06-30 0001605810 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001605810 us-gaap:RetainedEarningsMember 2020-06-30 0001605810 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001605810 us-gaap:NoncontrollingInterestMember 2020-06-30 0001605810 2020-06-30 0001605810 ulnv:WeifangPortercityMember 2018-06-28 2018-06-28 0001605810 ulnv:PortercityMember ulnv:WeifangPortercityMember 2018-06-28 0001605810 ulnv:MrZhiboMaoMember ulnv:WeifangPortercityMember 2018-06-28 0001605810 ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember 2019-08-31 0001605810 ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember 2019-08-01 2019-08-31 0001605810 ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember 2019-10-01 2019-10-31 0001605810 ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember 2019-10-31 0001605810 ulnv:KezhanMaMember ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember 2020-07-15 0001605810 ulnv:KezhanMaMember ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember 2020-07-15 2020-07-15 0001605810 ulnv:ShenzhenPorterShopsLotTechnologyCoLtdMember 2020-07-01 2020-07-01 0001605810 ulnv:ShenzhenPorterShopsLotTechnologyCoLtdMember 2020-07-31 2020-07-31 0001605810 ulnv:ShenzhenPorterShopsLotTechnologyCoLtdMember 2020-07-31 0001605810 ulnv:ConsultingServicesMember 2021-04-01 2021-06-30 0001605810 ulnv:ConsultingServicesMember 2021-01-01 2021-06-30 0001605810 ulnv:ConsultingServicesMember 2020-04-01 2020-06-30 0001605810 ulnv:ConsultingServicesMember 2020-01-01 2020-06-30 0001605810 ulnv:CosmeticTradingBusinessMember 2021-04-01 2021-06-30 0001605810 ulnv:CosmeticTradingBusinessMember 2021-01-01 2021-06-30 0001605810 ulnv:CosmeticTradingBusinessMember 2020-01-01 2020-06-30 0001605810 ulnv:TrainingServiceRevenueMember 2021-04-01 2021-06-30 0001605810 ulnv:TrainingServiceRevenueMember 2021-01-01 2021-06-30 0001605810 ulnv:TrainingServiceRevenueMember 2020-04-01 2020-06-30 0001605810 ulnv:TrainingServiceRevenueMember 2020-01-01 2020-06-30 0001605810 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-06-30 0001605810 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-12-31 0001605810 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-04-01 2021-06-30 0001605810 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-04-01 2020-06-30 0001605810 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-06-30 0001605810 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-01-01 2020-06-30 0001605810 ulnv:InvestmentAndCorporateManagementConsultingServicesMember 2021-04-01 2021-06-30 0001605810 ulnv:InvestmentAndCorporateManagementConsultingServicesMember 2020-04-01 2020-06-30 0001605810 ulnv:InvestmentAndCorporateManagementConsultingServicesMember 2021-01-01 2021-06-30 0001605810 ulnv:InvestmentAndCorporateManagementConsultingServicesMember 2020-01-01 2020-06-30 0001605810 ulnv:TrainingServiceMember 2021-04-01 2021-06-30 0001605810 ulnv:TrainingServiceMember 2020-04-01 2020-06-30 0001605810 ulnv:TrainingServiceMember 2021-01-01 2021-06-30 0001605810 ulnv:TrainingServiceMember 2020-01-01 2020-06-30 0001605810 ulnv:ThirdPartyPaymentServiceMember 2021-04-01 2021-06-30 0001605810 ulnv:ThirdPartyPaymentServiceMember 2020-04-01 2020-06-30 0001605810 ulnv:ThirdPartyPaymentServiceMember 2021-01-01 2021-06-30 0001605810 ulnv:ThirdPartyPaymentServiceMember 2020-01-01 2020-06-30 0001605810 ulnv:CosmeticTradingBusinessMember 2020-04-01 2020-06-30 0001605810 us-gaap:ProductAndServiceOtherMember 2021-04-01 2021-06-30 0001605810 us-gaap:ProductAndServiceOtherMember 2020-04-01 2020-06-30 0001605810 us-gaap:ProductAndServiceOtherMember 2021-01-01 2021-06-30 0001605810 us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-06-30 0001605810 ulnv:RevenueRecognizedOverTimeMember 2021-04-01 2021-06-30 0001605810 ulnv:RevenueRecognizedOverTimeMember 2020-04-01 2020-06-30 0001605810 ulnv:RevenueRecognizedOverTimeMember 2021-01-01 2021-06-30 0001605810 ulnv:RevenueRecognizedOverTimeMember 2020-01-01 2020-06-30 0001605810 ulnv:RevenueRecognizedAtAPointInTimeMember 2021-04-01 2021-06-30 0001605810 ulnv:RevenueRecognizedAtAPointInTimeMember 2020-04-01 2020-06-30 0001605810 ulnv:RevenueRecognizedAtAPointInTimeMember 2021-01-01 2021-06-30 0001605810 ulnv:RevenueRecognizedAtAPointInTimeMember 2020-01-01 2020-06-30 0001605810 ulnv:RevenueByGrossMember 2021-04-01 2021-06-30 0001605810 ulnv:RevenueByGrossMember 2020-04-01 2020-06-30 0001605810 ulnv:RevenueByGrossMember 2021-01-01 2021-06-30 0001605810 ulnv:RevenueByGrossMember 2020-01-01 2020-06-30 0001605810 ulnv:RevenueByNetMember 2021-04-01 2021-06-30 0001605810 ulnv:RevenueByNetMember 2020-04-01 2020-06-30 0001605810 ulnv:RevenueByNetMember 2021-01-01 2021-06-30 0001605810 ulnv:RevenueByNetMember 2020-01-01 2020-06-30 0001605810 currency:CNY ulnv:BalanceSheetItemsMember 2021-06-30 0001605810 ulnv:BalanceSheetItemsMember 2021-06-30 0001605810 currency:HKD ulnv:BalanceSheetItemsMember 2021-06-30 0001605810 currency:CNY ulnv:BalanceSheetItemsMember 2020-12-31 0001605810 ulnv:BalanceSheetItemsMember 2020-12-31 0001605810 currency:HKD ulnv:BalanceSheetItemsMember 2020-12-31 0001605810 currency:CNY 2021-06-30 0001605810 currency:HKD 2021-06-30 0001605810 currency:CNY 2020-06-30 0001605810 currency:HKD 2020-06-30 0001605810 currency:CNY ulnv:IncomeStatementAndCashFlowsItemsMember 2021-06-30 0001605810 ulnv:IncomeStatementAndCashFlowsItemsMember 2021-06-30 0001605810 currency:HKD ulnv:IncomeStatementAndCashFlowsItemsMember 2021-06-30 0001605810 currency:CNY ulnv:IncomeStatementAndCashFlowsItemsMember 2020-06-30 0001605810 ulnv:IncomeStatementAndCashFlowsItemsMember 2020-06-30 0001605810 currency:HKD ulnv:IncomeStatementAndCashFlowsItemsMember 2020-06-30 0001605810 ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember ulnv:KezhanMaMember 2020-07-15 0001605810 ulnv:ShenzhenQianhaiMaihoulangECommerceCoLtdMaihoulangMember ulnv:KezhanMaMember 2020-07-15 2020-07-15 0001605810 2020-01-01 2020-12-31 0001605810 us-gaap:ComputerSoftwareIntangibleAssetMember 2021-06-30 0001605810 us-gaap:ComputerSoftwareIntangibleAssetMember 2020-12-31 0001605810 us-gaap:TrademarksAndTradeNamesMember 2021-06-30 0001605810 us-gaap:TrademarksAndTradeNamesMember 2020-12-31 0001605810 2020-05-10 0001605810 2020-05-10 2020-05-10 0001605810 2020-04-13 2020-04-13 0001605810 ulnv:ZonghuaChenMember 2020-05-10 2020-05-10 0001605810 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2021-06-30 0001605810 us-gaap:ImmediateFamilyMemberOfManagementOrPrincipalOwnerMember 2020-12-31 0001605810 ulnv:ZongjianChenMember 2021-06-30 0001605810 ulnv:ZongjianChenMember 2020-12-31 0001605810 ulnv:ZonghuaChenMember 2021-06-30 0001605810 ulnv:ZonghuaChenMember 2020-12-31 0001605810 ulnv:XiaomeiXiongMember 2021-06-30 0001605810 ulnv:XiaomeiXiongMember 2020-12-31 0001605810 ulnv:ULNYMember 2021-06-30 0001605810 ulnv:CalendarYears2018Through2025Member 2019-01-01 2019-12-31 0001605810 ulnv:CalendarYearsAfter2025Member 2019-01-01 2019-12-31 0001605810 country:HK us-gaap:ForeignCountryMember 2019-01-01 2019-12-31 0001605810 country:CN us-gaap:ForeignCountryMember 2021-01-01 2021-06-30 0001605810 country:CN us-gaap:ForeignCountryMember 2020-01-01 2020-06-30 0001605810 country:CN us-gaap:ForeignCountryMember 2021-06-30 0001605810 country:US 2021-06-30 0001605810 country:US 2020-12-31 0001605810 country:HK 2021-06-30 0001605810 country:HK 2020-12-31 0001605810 country:CN 2021-06-30 0001605810 country:CN 2020-12-31 0001605810 ulnv:TheCompanysSubsidiaryAndVIEsInChinaMember 2021-04-01 2021-06-30 0001605810 ulnv:TheCompanysSubsidiaryAndVIEsInChinaMember 2021-01-01 2021-06-30 0001605810 ulnv:TheCompanysSubsidiaryAndVIEsInChinaMember 2020-04-01 2020-06-30 0001605810 ulnv:TheCompanysSubsidiaryAndVIEsInChinaMember 2020-01-01 2020-06-30 0001605810 ulnv:FutureMinimumLeasePaymentsNonLeaseComponentsMember 2021-06-30 0001605810 ulnv:CustomerOneMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001605810 ulnv:CustomerTwoMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001605810 ulnv:OneCustomerMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001605810 ulnv:FourCustomersMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001605810 ulnv:ConsultingServicesMember 2021-04-01 2021-06-30 0001605810 ulnv:ConsultingServicesMember 2020-04-01 2020-06-30 0001605810 ulnv:ConsultingServicesMember 2021-01-01 2021-06-30 0001605810 ulnv:ConsultingServicesMember 2020-01-01 2020-06-30 0001605810 ulnv:TrainingServiceMember 2021-04-01 2021-06-30 0001605810 ulnv:TrainingServiceMember 2020-04-01 2020-06-30 0001605810 ulnv:TrainingServiceMember 2021-01-01 2021-06-30 0001605810 ulnv:TrainingServiceMember 2020-01-01 2020-06-30 0001605810 us-gaap:CorporateMember 2021-04-01 2021-06-30 0001605810 us-gaap:CorporateMember 2020-04-01 2020-06-30 0001605810 us-gaap:CorporateMember 2021-01-01 2021-06-30 0001605810 us-gaap:CorporateMember 2020-01-01 2020-06-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares iso4217:CNY xbrli:pure

Porter (CE) (USOTC:ULNV)
Historical Stock Chart
From May 2024 to Jun 2024

Porter (CE) (USOTC:ULNV)
Historical Stock Chart
From Jun 2023 to Jun 2024

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

ULNV Porter Holding International Inc (CE)

Latest ULNV Messages

Loading Messages....

Porter Holding International, Inc. News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

ULNV Porter Holding International Inc (CE)

Latest ULNV Messages

Loading Messages....

Porter Holding International, Inc. News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App