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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2017
Aug. 15, 2017
Document And Entity Information    
Entity Registrant Name Ho Wah Genting Group Ltd  
Entity Central Index Key 0001622867  
Document Type 10-Q  
Trading Symbol HWGG  
Document Period End Date Jun. 30, 2017  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity a Well-known Seasoned Issuer No  
Entity a Voluntary Filer No  
Entity's Reporting Status Current Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   500,027,774
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
CURRENT ASSETS    
Cash and cash equivalents $ 39,337 $ 363,015
Account receivables 150,408
Other receivables [1] 1,928,586 746,386
Deposits and prepayment [2] 41,528 1,165
Amount due from related parties 910,676 1,152,014
Amount due from a director 23,503
Short-term investments 13,222 12,660
Total Current Assets 3,083,757 2,298,743
PROPERTY AND EQUIPMENT, NET 64,098 60,064
TOTAL ASSETS 3,147,855 2,358,807
CURRENT LIABILITIES    
Other payables 3,731,833 2,440,117
Accruals 3,811 4,454
Amounts due to related parties 266,807
Total Current Liabilities 3,735,644 2,711,378
Total Liabilities 3,735,644 2,711,378
STOCKHOLDERS' DEFICIT    
Common stock (Par value of $0.0002: 750,000,000 shares authorized; and 500,027,774 shares issued and outstanding as of June 30, 2017 and December 31, 2016) 100,006 100,006
Additional paid in capital 302,166 302,166
Accumulated deficit (759,618) (533,282)
Accumulated other comprehensive loss (230,339) (221,461)
Total Stockholders' Equity (Deficit) (587,785) (352,571)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 3,147,859 $ 2,358,807
[1] Deposits represented payments for telephone, electricity, water, maintenance fee, rental & utility and parking.
[2] Prepayment represented prepayments for maintenance fee, sinking fund and fire assurance.
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares
Jun. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.0002 $ 0.0002
Common stock, authorized 750,000,000 750,000,000
Common stock, issued 500,027,774 500,027,774
Common stock, outstanding 500,027,774 500,027,774
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]        
REVENUE $ 285,812 $ 71,297 $ 342,963 $ 118,625
COST OF REVENUE (79,746) (6,367) (80,419) (12,458)
GROSS PROFIT 206,066 64,930 262,544 106,167
OPERATING EXPENSES        
Administrative expenses (181,146) (127,815) (452,253) (258,324)
PROFIT/(LOSS) FROM OPERATIONS 24,920 (62,885) (189,709) (152,157)
OTHER INCOME/(EXPENSE), NET        
Interest Income 346 665 (379)
Other Income (918) 5,793 (3,212) 5,671
Other Expense (15,258) (387) (31,876)
Exchange (loss)/gain (2,115) (626) (2,204) (612)
Total Other Income / (Expense), net (17,944) 4,780 (36,627) 4,680
NET INCOME /(LOSS) BEFORE TAXES 6,976 (58,105) (226,336) (147,477)
Income tax expense (749) (733)
NET INCOME/(LOSS) 6,976 (58,854) (226,336) (148,210)
OTHER COMPREHENSIVE INCOME/(LOSS)        
Foreign currency translation adjustment 6,185 (150,974) 8,878 (30,489)
TOTAL COMPREHENSIVE INCOME /(LOSS) 13,161 (209,828) (217,458) (117,721)
Net loss contributed to non-controlling interest (3,884) (9,782)
Net loss contributed to shareholders 6,976 (54,970) (226,336) (138,428)
Total net loss 6,976 (58,854) (226,336) (148,210)
Total comprehensive income /(loss) contributed to non-controlling interest (13,783) (7,770)
Total comprehensive income /(loss) contributed to shareholders $ 13,161 $ (196,045) $ (217,458) $ (109,951)
Net loss per share - basic and diluted (in dollars per share) $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of shares outstanding during the period - basic and diluted |(in shares) 500,027,774 200,375,532 500,027,774 200,375,532
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (226,336) $ (138,428)
Adjusted to reconcile net loss to net cash used in operating activities:    
Depreciation - property and equipment 1,260 4,448
Changes in operating assets and liabilities    
Accounts receivable (150,408)  
Other receivables, deposits and prepayment (1,222,563) (43,667)
Other payables and accrued expenses 1,291,073 913,572
Net cash provided by (used in) operating activities (306,974) 719,628
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property, plant and equipment (2,647) (29,071)
Net cash provided by (used in) investing activities (2,647) (29,071)
CASH FLOWS FROM FINANCING ACTIVITIES    
Loss attributable to non-controlling interest (8,754)
Amount due from related parties 241,338 (418,182)
Amount due from director 23,503
Amounts due to related party (266,807)
Amount due to directors (513,687)
Net cash provided by (used in) financing activities (1,966) (940,623)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (12,091) 60,416
NET DECREASE IN CASH AND CASH EQUIVALENTS (323,678) (189,650)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 363,015 471,907
CASH AND CASH EQUIVALENTS AT END OF PERIOD 39,337 282,257
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid for interest expenses
Cash paid for income tax
ORGANIZATION AND BUSINESS
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
ORGANIZATION AND BUSINESS
1. ORGANIZATION AND BUSINESS

 

Ho Wah Genting Group Limited (“HWGG”), a Nevada corporation (formerly Computron, Inc.) through Ho Wah Genting Group SDN BHD (“Malaysia HWGG”), a Malaysia company and our wholly owned subsidiary, is engaged to promote travel and entertainment services to members to our partnering resorts and cruises in the Asia region and develop and invest in real estate property.

 

On September 2, 1985, Malaysia HWGG was incorporated under the laws of Malaysia as a private company limited by shares with the name “Ho Wah Genting Holdings SDN. BHD” for the purpose of functioning as a holding company to obtain ownership interests in Malaysian businesses across various industries. Throughout the years, we have expanded our business operations and undergone multiple name changes and restructuring to fit our evolving business objectives. First on February 17, 1989, the company changed its name to “Ho Wah Genting Group (M) SDN. BHD.” On October 2, 1990, the company changed its name to “Ho Wah Genting Group SDN. BHD.” On December 22, 1990 its name was changed to “Ho Wah Genting Group Berhad” and was converted to a public company limited by shares. Lastly, on January 18, 1995, the company converted back into a private company limited by shares and changed its name to “Ho Wah Genting Group Sdn. Bhd.”

 

From 1985 to 2005, Malaysia HWGG was involved in wire and cable, taxi, travel agent and tour bus charterers and general insurance agent services. In August 2006, Malaysia HWGG shifted its operations to primarily focus on commercial and residential property investment by purchasing a condominium in Kuala Lumpur, Malaysia and renting it out for revenue.

 

In 2015, Malaysia HWGG entered the travel and entertainment services business by launching the Exclusive Travel Membership program in Malaysia.

 

On June 25, 2015, Malaysia HWGG acquired 65% of the equity interests of Beedo SDN BHD (“Beedo”). On July 7, 2015, Beedo increased its issued and paid-up shares from 2,500 to 1,000,000. HWGG acquired an additional 508,375 shares on that date, making its balance of shares 510,000 and effectively diluting its shareholding in Beedo from 65% to 51%. Beedo is mainly engaged in the provision of information technology services. On August 12, 2016, HWGG completed the disposal of its subsidiary, Beedo, by wholly transferring the shares it owns to a related party, Dato’ Lim Hui Boon, for the consideration of $ 118,881 (RM 510,000).

 

REVERSE MERGER

 

On October 28, 2016, Computron acquired all the issued and outstanding shares of Malaysia HWGG, a privately held Malaysia corporation, pursuant to the Share Exchange Agreement and Malaysia HWGG became the wholly owned subsidiary of Computron in a reverse merger, or the Merger. Pursuant to the Merger, all of the issued and outstanding shares of Malaysia HWGG common stock were converted, at an exchange ratio of 0.56-for-1, into an aggregate of 799,680,000 (560,000 pre- forward split) shares of Computron common stock and Malaysia HWGG became a wholly owned subsidiary of Computron. The holders of Computron’s common stock as of immediately prior to the Merger held an aggregate of 200,375,532 (140,319 pre-forward split) shares of Computron’s common stock. The accompanying financial statements share and per share information has been retroactively adjusted to reflect the exchange ratio in the Merger. Subsequent to the Merger, Computron’s name was changed from “Computron, Inc.” to “Ho Wah Genting Group Limited.”.

 

On November 4, 2016, we completed and closed a share exchange (the “Share Exchange”) under a Share Exchange Agreement (the “Share Exchange Agreement”) of the same date by and among us, Malaysia HWGG and the shareholders of Malaysia HWGG pursuant to which Malaysia HWGG became a wholly owned subsidiary of ours. In the Share Exchange, all of the outstanding shares of Malaysia HWGG were converted into shares of our Common Stock.

 

In connection with the Share Exchange and pursuant to the Split-Off Agreement (defined below), we transferred our pre-Share Exchange assets and liabilities to our pre-Share Exchange majority stockholder, in exchange for the surrender by him and cancellation of 5,000,000 shares of our Common Stock.

 

Under generally accepted accounting principles in the United States, (“U.S. GAAP”) because Malaysia HWGG’s former stockholders received the greater portion of the voting rights in the combined entity and Malaysia HWGG’s senior management represents all of the senior management of the combined entity, the Merger was accounted for as a recapitalization effected by a share exchange, wherein Malaysia HWGG is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of Malaysia HWGG have been brought forward at their book value and no goodwill has been recognized. Accordingly, the assets and liabilities and the historical operations that are reflected in Malaysia HWGG's consolidated financial statements are those of Malaysia HWGG and are recorded at the historical cost basis of Malaysia HWGG.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 8 of Regulation S-X.

 

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

 

Principles of consolidation

 

The unaudited consolidated financial statements include the accounts of HWGG and its subsidiary, Beedo, collectively referred to within as the Company. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

 

Use of estimates

 

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

 

Foreign currency translation and transactions

 

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

 

Cash and cash equivalents

 

The Company considers highly-liquid investments with maturities of three months or less, when purchased, to be cash equivalents.

   

Investments

 

The Company invests its excess cash primarily in equity instruments of high-quality corporate issuers listed on the Main Board of Bursa Malaysia. Such securities are classified as short-term investments and are valued at the last reported sales price on the balance sheet date. If no sale price was reported on that date, they are valued at the last reported bid price. Changes in the value of these investments are recognized as unrealized gain or loss in the statement of income and other comprehensive income.

 

Fair value of financial instruments

 

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

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. 

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2017 and December 31, 2016, short term investments classified as held-for-trading were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

 

Property and equipment, net

 

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

 

  Leasehold building 50 years
     
  Computer and software 5 years
     
  Furniture and fixtures 5 years
     
  Leasehold improvement 10 years

 

Revenue recognition

 

The Company provides rental, Information technology and junket operation services to customer. The Company has recognized lease revenue based upon its annual rental over the life of the operating lease. Lease revenue is recognized using the straight-line method in accordance with ASC Topic 970-605, “Real Estate – General – Revenue Recognition” (“ASC Topic 970-605”). Revenue from the provision of information technology services is recognized when (a) there is persuasive evidence that an arrangement exists, (b) delivery has occurred, (c) the vendor’s fee is fixed or determinable and (d) collectability is probable in accordance with ASC Topic 985-605, “Software – Revenue Recognition” (“ASC 985-605”). Junket operation revenue is recognized when service is performed, vendor’s fee is fixed or determinable and collectability is probable.

  

Income taxes

 

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

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of June 30, 2017 and December 31, 2016, respectively.  

 

Comprehensive loss

 

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Consolidated Statement of income and comprehensive loss.

 

Loss per share

 

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the three and six months ended June 30, 2017 and 2016, there is no dilutive effect due to net loss for the periods.

 

Segment reporting

 

ASC Topic 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the periods ended June 30, 2017, the Company operated in three reportable business segments: (1) investment property holding which generates rental income from the leasing out of its leasehold building, (2) exclusive travel membership (ETM) and junket operations (3) information technology services, which generates revenue from the provision of information technology services.

 

The others which comprise of general operating and administrative expenses, and other income/expenses not directly attributable to the sources of revenue of the Company for the three and six months ended June 30, 2017 and 2016.

 

Related party transactions

 

A related party is generally defined as:

 

(i) any person that holds the Company’s securities including such person’s immediate families,

 

(ii) the Company’s management,

 

(iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or

 

(iv) anyone who can significantly influence the financial and operating decisions of the Company.

 

A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

 

Recently issued accounting pronouncements

 

Revenue Recognition:  In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 

 

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

 

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

 

Financial Instruments - Credit Losses: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related disclosures.

 

The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during 2017. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Company’s reported financial position or operations in the near term.

GOING CONCERN UNCERTAINTIES
6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
GOING CONCERN UNCERTAINTIES
3. GOING CONCERN UNCERTAINTIES

 

These consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

 

For the period ended June 30, 2017, the Company reported a net loss of $217,458 and working capital deficit of $651,887. The Company had an accumulated deficit of $759,618 as of June 30, 2017.

 

The continuation of the Company as a going concern is dependent upon improving the profitability and the continuing financial support from its stockholders or other capital sources. Management believes that the continuing financial support from the existing shareholders or external debt financing will provide the additional cash to meet the Company’s obligations as they become due.

 

These consolidation financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the Company’s ability to continue as a going concern.

HELD FOR TRADING SECURITIES
6 Months Ended
Jun. 30, 2017
Cash and Cash Equivalents [Abstract]  
HELD FOR TRADING SECURITIES

4. HELD FOR TRADING SECURITIES

 

   Estimated 
   Fair Value 
   As of
June 30, 2017
(Unaudited)
   As of
December 31, 2016
 
         
Short-term investments:          
Quoted shares in Malaysia  $13,222   $12,660 

 

Realized gains and realized losses were not significant for either of the three month and six month ended June 30, 2017.

OTHER RECEIVABLES, NET
6 Months Ended
Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER RECEIVABLES, NET
5.OTHER RECEIVABLES, NET

 

Other receivables consist of the following:

 

       As of
June 30,
2017
   As of
December 31,
2016
 
             
Other receivables   (1)  $1,928,586    746,386 
Deposits and Prepayment   (2)   41,528    1,165 
        $1,970,114   $747,551 

 

(1) Deposits represented payments for telephone, electricity, water, maintenance fee, rental & utility and parking.
   
(2) Prepayment represented prepayments for maintenance fee, sinking fund and fire assurance.
PROPERTY AND EQUIPMENT, NET
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET
6. PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consist of the following:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Leasehold building  $73,674   $70,543 
Computer and software   6,803    3,979 
Furniture and fixtures   527    505 
           
    81,004    75,027 
           
Less: Accumulated depreciation   (16,906)   (14,963)
           
 Balance at end of period  $64,098   $60,064 

 

Depreciation expenses was $1,260 (3 months $667) and $4,448 (3 months $2,224) for the six months ended June 30, 2017 and 2016, respectively.

OTHER PAYABLES AND ACCRUALS
6 Months Ended
Jun. 30, 2017
Payables and Accruals [Abstract]  
OTHER PAYABLES AND ACCRUALS
7. OTHER PAYABLES AND ACCRUALS

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Other payables   3,731,833    2,440,117 
Accruals   3,811    4,454 
   $3,735,644   $2,444,571
INCOME TAX
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
INCOME TAX
8. INCOME TAX

 

The Company and its subsidiary are Malaysia incorporated companies and required to pay corporate income tax at 25% of taxable income.

 

Income tax expenses for the Company are summarized as follows:

 

   For the three months ended   For the six months ended 
   June 30,
2017
   June 30, 
2016
   June 30,
2017
   June 30, 
2016
 
                 
Current:                    
Provision for Malaysian income tax  $   $749   $   $733 
Provision for U.S. income tax                
Deferred:                    
Provision for Malaysian income tax                
Provision for U.S. income tax                
   $   $749   $   $733 

 

Malaysia

 

Malaysia HWGG recorded a loss before income tax of $226,336 and $147,477 for the period ended June 30, 2017 and 2016, respectively. A reconciliation of the provision for income taxes with amounts determined by applying the Malaysian income tax rate of 25% and 25% for the period ended June 30, 2017 and 2016, respectively, to income before income taxes are as follows: 

 

   For the three months ended   For the six months ended 
   June 30,
2017
   June 30, 
2016
   June 30,
2017
   June 30, 
2016
 
                 
Profit (loss) before income tax  $6,976   $(58,854)  $(226,336)  $(147,477)
Permanent difference   6,976    58,854    226,336    147,477 
Taxable income  $   $   $   $ 
Malaysian income tax rate   24%   24%   24%   24%
Current tax expenses  $   $(749)  $   $733 
Less: Valuation allowance                
Income tax expenses  $   $   $   $733 

 

United States of America

 

HWGG is a company incorporated in State of Nevada and recorded a loss before income tax of $ and for the period ended June 30, 2017 and 2016, respectively. A reconciliation of the provision for income taxes with amounts determined by applying the United States Federal income tax rate of 34% for the period ended June 30, 2017 and 2016, respectively, to income before income taxes are as follows:

 

  

For the three months ended 

   For the six ended 
   June 30,
2017
   June 30, 
2016
   June 30,
2017
   June 30, 
2016
 
                 
Profit (loss) before income tax  $6,976   $(58,854)  $(226,336)  $(147,477)
Permanent difference   6,976    58,854    226,336    147,477 
Taxable income  $   $   $   $ 
USA income tax rate   34%   34%   34%   34%
Current tax expenses  $   $   $   $ 
Less: Valuation allowance                   
Income tax expenses  $   $   $   $ 

 

No deferred tax has been provided as there are no material temporary differences arising during the periods ended June 30, 2017 and 2016.

RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
9. RELATED PARTY TRANSACTIONS

 

As of June 30, 2017 and December 31, 2016, amounts due from related parties were as follows:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Ho Wah Genting Berhad  $   $544,096 
Ho Wah Genting Holiday Sdn Bhd   67,537     
Vitaxel SDN BHD   819,850    585,619 
Vitaxel Online Mall SDN BHD   23,289    22,299 
   $910,676   $1,152,014 

 

Our President. Dato Lim Hui Boon, is also the Group President and shareholder of Ho Wah Genting Berhad. Liew Jenn Lim, one of our directors since March 1, 2017, has also been a director of Vitaxel Online Mall Sdn Bhd since January 25, 2016. Lim Chun Hoo, our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and director, was a director of Vitaxel Group Limited, parent company of its wholly owned subsidiary Vitaxel SDN BHD, until his resignation from that position on March 31, 2017.  

 

The amounts due from related companies are unsecured, interest-free and repayable on demand.

 

As of June 30, 2017 and December 31, 2016, amounts due from directors were as follows:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
           
Lim Chun Hoo  $   $23,503 

 

The amounts due from a director were unsecured, interest-free and repayable on demand. 

 

As of June 30, 2017 and December 31, 2016, amounts due to related parties were as follows:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Dato’ Lim Boon Hui  $   $208,830 
Beedo SDN BHD       57,977 
   $   $266,807 

 

During the periods ended June 30, 2017 and 2016, the Company recognized rental income of $ 2,703 (3 months $1,352) and $5,407 (3 months $2,704) respectively from Ho Wah Genting Berhad. The president of the Company, Dato’ Lim Hui Boon, is also the Group President of Ho Wah Genting Berhad. In addition, two sons of Dato’ Lim Hui Boon are directors of Ho Wah Genting Berhad.

 

During the periods ended June 30, 2017 and 2016, the Company recognized revenues consisting of (1) junket commission from Ho Wah Genting Holiday SDN BHD was $7,680 and $15,592 respectively, and the following expenses it is $nil in the first quarter and second quarter ended June 30, 2017 (2) management fees from ETM or Exclusive Travel Membership Program of $87,539 and (3) RCM Membership of $183,705.

 

From January 1, 2016 to June 30, 2016, the Company, through its subsidiary Beedo SDN BHD recognized revenue from the provision of information technology services of $9,558 from Ho Wah Genting Holiday SDN BHD and $29,023 from Vitaxel SDN BHD. Beedo SDN BHD was disposed of by the Company after August 12, 2016 and stopped earning revenue from the provision of information technology services.

EARNINGS (LOSS) PER SHARE
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
EARNINGS (LOSS) PER SHARE

The Company has adopted ASC Topic No. 260,  “Earnings Per Share,”  (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year.

 

The following table sets forth the computation of basic and diluted earnings per share:

 

    For the three month ended     For the six month ended  
    June 30,
2017
    June 30, 
2016
    June 30,
2017
    June 30, 
2016
 
                         
Net loss applicable to common shares   $ 6,976     $ (54,970 )   $ (226,336 )   $ (138,428 )
                                 
Weighted average common shares outstanding (Basic) / (Diluted)     500,027,774       200,375,532       500,027,774       200,375,532  
                                 
Loss per share   $ 0.00     $ 0.00     $ 0.00       0.00  

 

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

SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION

11. SEGMENT INFORMATION

 

The Company’s operating businesses are organized based on the business activities from which the Company earns revenues. Our reported segments for the period ended June 30, 2017 and year ended December 31, 2016 are described as follows:

 

Investment property holding

 

The Company generates rental income from the leasing out of its leasehold building.

 

Information technology services

 

The Company generates revenue from the provision of information technology services. This line of business commenced in the year 2015. This line of business ended on August 12, 2016 when the Company completed the disposal of its subsidiary, Beedo.

 

Exclusive Travel Membership

 

The company generates revenue from management fee billing on the member 10% for the deposit that put into the account.

 

Junket income

 

The company generates revenue from junket commission provided by Ho Wah Genting Malaysia Berhad.

 

Others

 

These comprise of general operating and administrative expenses, and other income/expenses not directly attributable to the sources of revenue of the Company for the periods ended June 30, 2017 and 2016.

 

The Company’s reportable segments are managed separately based on the fundamental differences in their operations.

 

Information with respect to these reportable business segments for the periods ended June 30, 2017 and 2016 was as follows:

 

    For the three months ended     For the six months ended  
    June 30,
2017
    June 30, 
2016
    June 30,
2017
    June 30, 
2016
 
                         
Revenues:                                
                                 
Investment property holding   $ 1,350     $     $ 2,700     $  
Information technology services           71,297             118,625  
                                 
ETM and junket operations     284,462             340,263        
Others                        
    $ 285,812     $ 71,297     $ 342,963     $ 118,625  
                                 
Cost of revenues:                                
Investment property holding   $     $     $     $  
Information technology services           6,367             12,458  
ETM and junket operations     79,746             80,419        
Others                        
    $ 79,746     $ 6,367     $ 80,419     $ 12,458  
                                 
Depreciation:                                
Investment property holding   $     $     $     $  
Information technology services           2,224             4,448  
ETM and junket operations     667             1,260        
Others                        
    $ 667     $ 2,224     $ 1,260     $ 4,448  
                                 
Net income (loss):                                
Investment property holding   $ 1,350     $     $ 2,700     $  
Information technology services           (58,854 )           (148,210 )
ETM and junket operations     5,626             (223,636 )      
Others                        
    $ 6,976     $ (58,854 )   $ (226,336 )   $ (148,210 )

  

    June 30, 2017  
    Investment
property
holding
    Information
technology
services
    Junket
operation
    Others     Total  
Identifiable long-lived assets, net   $ 56,729     $     $     $ 3,572     $ 64,098  

 

    December 31, 2016  
    Investment
property
holding
    Information
technology
services
    Junket
operation
    Others     Total  
Identifiable long-lived assets, net   $ 56,317     $     $     $ 3,747     $ 60,064  

 

The Company does not allocate any operating and administrative expenses, other income/expenses to its reportable segments because these activities are managed at a corporate level. In addition, the specified amounts for income tax expense are not included in the measure of segment profit or loss reviewed by the chief operating decision maker and these specified amounts are not regularly provided to the chief operating decision maker. Therefore, the Company has not disclosed income tax expense for each reportable segment.

 

Asset information by reportable segment is not reported to or reviewed by the chief operating decision maker and, therefore, the Company has not disclosed asset information for each reportable segment. The Company’s operations are located in Malaysia. All revenues are derived from customers in Malaysia. All of the Company’s operating assets are located in Malaysia. 

FAIR VALUE MEASUREMENTS
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
12. FAIR VALUE MEASUREMENTS

 

Fair Value of Financial Assets

 

The Company’s financial assets measured at fair value on a recurring basis subject to disclosure requirements at June 30, 2017 and December 31, 2016 were as follows:

 

   Balance at
June 30,
2017
(Unaudited)
   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
(Unaudited)
   Significant
Other
Observable
Inputs
(Level 2)
(Unaudited)
   Significant
Unobserved
Inputs
(Level 3)
(Unaudited)
 
Short-term investments:                    
Quoted shares in Malaysia  $13,222   $13,222   $   $ 
Total short-term investments   13,222    13,222         
Total financial assets measured at fair value  $13,222   $13,222   $   $ 

 

       Quoted Prices         
       in Active   Significant     
       Markets for   Other   Significant 
   Balance at   Identical   Observable   Unobserved 
   December 31,   Assets   Inputs   Inputs 
   2016   (Level 1)   (Level 2)   (Level 3) 
Short-term investments:                    
Quoted shares in Malaysia  $12,660   $12,660   $   $ 
Total short-term investments   12,660    12,660         
Total financial assets measured at fair value  $12,660   $12,660   $   $ 

SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
13. SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, Company management reviewed all material events through the date of this report and determined that there are no additional material subsequent events to report.

 

Reverse Stock Split

 

On July 12, 2017, the Board of Directors of Ho Wah Genting Group Limited (“ HWGG ”) authorized and approved an amendment (the “ Amendment ”) to HWGG’s Amended and Restated Articles of Incorporation, which authorized a two-to-one reverse stock split (the “Reverse Split”) of HWGG’s outstanding common stock, par value $0.0001 per share, with a record date of July 14, 2017 (the “ Record Date ”). In connection with the reverse stock split, the Board of Directors of HWGG, also authorized and approved a related increase in the par value of the HWGG common stock from $0.0001 per share to $0.0002 per share. We expect that the Reverse Stock Split will (i) increase the marketability and liquidity of our common stock; (ii) address the reluctance of brokerage firms and institutional investors to recommend lower-priced stocks to their clients or to hold in their own portfolios; and (iii) enable us to strengthen the quotation of our common stock on the OTC Markets, Inc. QB Tier.

 

On August 9, 2017 we received approval from the Financial Industry Regulatory Authority (“FINRA”) to effectuate the Reverse Split at the open of business on August 11, 2017.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Basis of presentation

Basis of presentation

 

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 8 of Regulation S-X.

 

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

Principles of consolidation

Principles of consolidation

 

The unaudited consolidated financial statements include the accounts of HWGG and its subsidiary, Beedo, collectively referred to within as the Company. All material intercompany accounts, transactions, and profits have been eliminated in consolidation.

Use of estimates

Use of estimates

 

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

Foreign currency translation and transactions

Foreign currency translation and transactions

 

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

Cash and cash equivalents

Cash and cash equivalents

 

The Company considers highly-liquid investments with maturities of three months or less, when purchased, to be cash equivalents.

Investments

Investments

 

The Company invests its excess cash primarily in equity instruments of high-quality corporate issuers listed on the Main Board of Bursa Malaysia. Such securities are classified as short-term investments and are valued at the last reported sales price on the balance sheet date. If no sale price was reported on that date, they are valued at the last reported bid price. Changes in the value of these investments are recognized as unrealized gain or loss in the statement of income and other comprehensive income.

Fair value of financial instruments

Fair value of financial instruments

 

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

 

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. 

 

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

 

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

 

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2017 and December 31, 2016, short term investments classified as held-for-trading were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

Property and equipment, net

Property and equipment, net

 

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

 

  Leasehold building 50 years
     
  Computer and software 5 years
     
  Furniture and fixtures 5 years
     
  Leasehold improvement 10 years
Revenue recognition

Revenue recognition

 

The Company provides rental, Information technology and junket operation services to customer. The Company has recognized lease revenue based upon its annual rental over the life of the operating lease. Lease revenue is recognized using the straight-line method in accordance with ASC Topic 970-605, “Real Estate – General – Revenue Recognition” (“ASC Topic 970-605”). Revenue from the provision of information technology services is recognized when (a) there is persuasive evidence that an arrangement exists, (b) delivery has occurred, (c) the vendor’s fee is fixed or determinable and (d) collectability is probable in accordance with ASC Topic 985-605, “Software – Revenue Recognition” (“ASC 985-605”). Junket operation revenue is recognized when service is performed, vendor’s fee is fixed or determinable and collectability is probable.

Income taxes

Income taxes

 

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

 

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of June 30, 2017 and December 31, 2016, respectively.  

Comprehensive loss

Comprehensive loss

 

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Consolidated Statement of income and comprehensive loss.

Loss per share

Loss per share

 

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the three and six months ended June 30, 2017 and 2016, there is no dilutive effect due to net loss for the periods.

Segment reporting

Segment reporting

 

ASC Topic 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the periods ended June 30, 2017, the Company operated in three reportable business segments: (1) investment property holding which generates rental income from the leasing out of its leasehold building, (2) exclusive travel membership (ETM) and junket operations (3) information technology services, which generates revenue from the provision of information technology services.

 

The others which comprise of general operating and administrative expenses, and other income/expenses not directly attributable to the sources of revenue of the Company for the three and six months ended June 30, 2017 and 2016.

Related party transactions

Related party transactions

 

A related party is generally defined as:

 

(i) any person that holds the Company’s securities including such person’s immediate families,

 

(ii) the Company’s management,

 

(iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or

 

(iv) anyone who can significantly influence the financial and operating decisions of the Company.

 

A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Recently issued accounting pronouncements

Recently issued accounting pronouncements

 

Revenue Recognition:  In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 

 

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

 

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

 

Financial Instruments - Credit Losses: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016-13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related disclosures.

 

The Financial Accounting Standards Board and other entities issued new or modifications to, or interpretations of, existing accounting guidance during 2017. Management has carefully considered the new pronouncements that altered generally accepted accounting principles and does not believe that any other new or modified principles will have a material impact on the Company’s reported financial position or operations in the near term.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Schedule of useful life

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

 

  Leasehold building 50 years
     
  Computer and software 5 years
     
  Furniture and fixtures 5 years
     
  Leasehold improvement 10 years
HELD FOR TRADING SECURITIES (Tables)
6 Months Ended
Jun. 30, 2017
Cash and Cash Equivalents [Abstract]  
Schedule of held for trading securities

   Estimated 
   Fair Value 
   As of
June 30, 2017
(Unaudited)
   As of
December 31, 2016
 
         
Short-term investments:          
Quoted shares in Malaysia  $13,222   $12,660 
OTHER RECEIVABLES, NET (Tables)
6 Months Ended
Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of other receivables

Other receivables consist of the following:

 

       As of
June 30,
2017
   As of
December 31,
2016
 
             
Other receivables   (1)  $1,928,586    746,386 
Deposits and Prepayment   (2)   41,528    1,165 
        $1,970,114   $747,551 

 

(1) Deposits represented payments for telephone, electricity, water, maintenance fee, rental & utility and parking.
   
(2) Prepayment represented prepayments for maintenance fee, sinking fund and fire assurance.
PROPERTY AND EQUIPMENT, NET (Tables)
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
Schedule of property and equipment

Property and equipment, net consist of the following:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Leasehold building  $73,674   $70,543 
Computer and software   6,803    3,979 
Furniture and fixtures   527    505 
           
    81,004    75,027 
           
Less: Accumulated depreciation   (16,906)   (14,963)
           
 Balance at end of period  $64,098   $60,064 
OTHER PAYABLES AND ACCRUALS (Tables)
6 Months Ended
Jun. 30, 2017
Payables and Accruals [Abstract]  
Schedule of other payables and accruals

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Other payables   3,731,833    2,440,117 
Accruals   3,811    4,454 
   $3,735,644   $2,444,571 
INCOME TAX (Tables)
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

Income tax expenses for the Company are summarized as follows:

 

   For the three months ended   For the six months ended 
   June 30,
2017
   June 30, 
2016
   June 30,
2017
   June 30, 
2016
 
                 
Current:                    
Provision for Malaysian income tax  $   $749   $   $733 
Provision for U.S. income tax                
Deferred:                    
Provision for Malaysian income tax                
Provision for U.S. income tax                
   $   $749   $   $733 
Schedule of income before income tax

Malaysia

 

A reconciliation of the provision for income taxes with amounts determined by applying the Malaysian income tax rate of 25% and 25% for the period ended June 30, 2017 and 2016, respectively, to income before income taxes are as follows: 

 

   For the three months ended   For the six months ended 
   June 30,
2017
   June 30, 
2016
   June 30,
2017
   June 30, 
2016
 
                 
Profit (loss) before income tax  $6,976   $(58,854)  $(226,336)  $(147,477)
Permanent difference   6,976    58,854    226,336    147,477 
Taxable income  $   $   $   $ 
Malaysian income tax rate   24%   24%   24%   24%
Current tax expenses  $   $(749)  $   $733 
Less: Valuation allowance                
Income tax expenses  $   $   $   $733 

 

United States of America

 

A reconciliation of the provision for income taxes with amounts determined by applying the United States Federal income tax rate of 34% for the period ended June 30, 2017 and 2016, respectively, to income before income taxes are as follows:

 

  

For the three months ended 

   For the six ended 
   June 30,
2017
   June 30, 
2016
   June 30,
2017
   June 30, 
2016
 
                 
Profit (loss) before income tax  $6,976   $(58,854)  $(226,336)  $(147,477)
Permanent difference   6,976    58,854    226,336    147,477 
Taxable income  $   $   $   $ 
USA income tax rate   34%   34%   34%   34%
Current tax expenses  $   $   $   $ 
Less: Valuation allowance                   
Income tax expenses  $   $   $   $ 
RELATED PARTY TRANSACTIONS (Tables)
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Schedule of due from related party

As of June 30, 2017 and December 31, 2016, amounts due from related parties were as follows:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Ho Wah Genting Berhad  $   $544,096 
Ho Wah Genting Holiday Sdn Bhd   67,537     
Vitaxel SDN BHD   819,850    585,619 
Vitaxel Online Mall SDN BHD   23,289    22,299 
   $910,676   $1,152,014 
Schedule of due to related party

As of June 30, 2017 and December 31, 2016, amounts due from directors were as follows:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
           
Lim Chun Hoo  $   $23,503 

  

As of June 30, 2017 and December 31, 2016, amounts due to related parties were as follows:

 

   As of
June 30,
2017
   As of
December 31, 
2016
 
         
Dato’ Lim Boon Hui  $   $208,830 
Beedo SDN BHD       57,977 
   $   $266,807 

EARNINGS (LOSS) PER SHARE (Tables)
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Schedule of earning per share

The following table sets forth the computation of basic and diluted earnings per share:

 

    For the three month ended     For the six month ended  
    June 30,
2017
    June 30, 
2016
    June 30,
2017
    June 30, 
2016
 
                         
Net loss applicable to common shares   $ 6,976     $ (54,970 )   $ (226,336 )   $ (138,428 )
                                 
Weighted average common shares outstanding (Basic) / (Diluted)     500,027,774       200,375,532       500,027,774       200,375,532  
                                 
Loss per share   $ 0.00     $ 0.00     $ 0.00       0.00  

SEGMENT INFORMATION (Tables)
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Schedule of reportable business segments

Information with respect to these reportable business segments for the periods ended June 30, 2017 and 2016 was as follows:

    For the three months ended     For the six months ended  
    June 30,
2017
    June 30,
2016
    June 30,
2017
    June 30,
2016
 
                         
Revenues:                                
                                 
Investment property holding   $ 1,350     $     $ 2,700     $  
Information technology services           71,297             118,625  
                                 
ETM and junket operations     284,462             340,263        
Others                        
    $ 285,812     $ 71,297     $ 342,963     $ 118,625  
                                 
Cost of revenues:                                
Investment property holding   $     $     $     $  
Information technology services           6,367             12,458  
ETM and junket operations     79,746             80,419        
Others                        
    $ 79,746     $ 6,367     $ 80,419     $ 12,458  
                                 
Depreciation:                                
Investment property holding   $     $     $     $  
Information technology services           2,224             4,448  
ETM and junket operations     667             1,260        
Others                        
    $ 667     $ 2,224     $ 1,260     $ 4,448  
                                 
Net income (loss):                                
Investment property holding   $ 1,350     $     $ 2,700     $  
Information technology services           (58,854 )           (148,210 )
ETM and junket operations     5,626             (223,636 )      
Others                        
    $ 6,976     $ (58,854 )   $ (226,336 )   $ (148,210 )

Schedule of identifiable long-lived assets
  June 30, 2017 
   Investment
property
holding
   Information
technology
services
   Junket
operation
   Others   Total 
Identifiable long-lived assets, net  $56,729   $   $   $3,572   $64,098 

 

   December 31, 2016 
   Investment
property
holding
   Information
technology
services
   Junket
operation
   Others   Total 
Identifiable long-lived assets, net  $56,317   $   $   $3,747   $60,064 
FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Schedule of assets measured at fair value on a recurring basis

The Company’s financial assets measured at fair value on a recurring basis subject to disclosure requirements at June 30, 2017 and December 31, 2016 were as follows:

 

   Balance at
June 30,
2017
(Unaudited)
   Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
(Unaudited)
   Significant
Other
Observable
Inputs
(Level 2)
(Unaudited)
   Significant
Unobserved
Inputs
(Level 3)
(Unaudited)
 
Short-term investments:                    
Quoted shares in Malaysia  $13,222   $13,222   $   $ 
Total short-term investments   13,222    13,222         
Total financial assets measured at fair value  $13,222   $13,222   $   $ 

 

       Quoted Prices         
       in Active   Significant     
       Markets for   Other   Significant 
   Balance at   Identical   Observable   Unobserved 
   December 31,   Assets   Inputs   Inputs 
   2016   (Level 1)   (Level 2)   (Level 3) 
Short-term investments:                    
Quoted shares in Malaysia  $12,660   $12,660   $   $ 
Total short-term investments   12,660    12,660         
Total financial assets measured at fair value  $12,660   $12,660   $   $ 
ORGANIZATION AND BUSINESS (Details Narrative)
Nov. 04, 2016
shares
Oct. 28, 2016
shares
Aug. 12, 2016
USD ($)
Aug. 12, 2016
MYR
Jul. 07, 2015
shares
Jul. 06, 2015
shares
Jun. 25, 2015
Share Exchange Agreement [Member] | Computron, Inc. [Member]              
Number of shares converted   200,375,532          
Number of shares converted, pre reverse split   140,319          
Beedo SDN BHD ("Beedo") [Member]              
Issued and paid-up shares         1,000,000 2,500  
Ho Wah Genting Group SDN BHD ("Malaysia HWGG") [Member] | Share Exchange Agreement [Member]              
Number of common shares cancelled 5,000,000            
Ho Wah Genting Group SDN BHD ("Malaysia HWGG") [Member] | Share Exchange Agreement [Member] | Computron, Inc. [Member]              
Description of reverse split  

0.56-for-1

         
Number of shares converted   799,680,000          
Number of shares converted, pre reverse split   560,000          
Ho Wah Genting Group SDN BHD ("Malaysia HWGG") [Member] | Beedo SDN BHD ("Beedo") [Member]              
Percentage of equity interest         51.00%   65.00%
Number of additional shares acquired         508,375    
Number of balance shares         510,000    
Ho Wah Genting Group SDN BHD ("Malaysia HWGG") [Member] | Beedo SDN BHD ("Beedo") [Member] | Dato' Lim Hui Boon [Member]              
Proceeds from disposal of subsidiary | $     $ 118,881        
Ho Wah Genting Group SDN BHD ("Malaysia HWGG") [Member] | Beedo SDN BHD ("Beedo") [Member] | Dato' Lim Hui Boon [Member] | MYR              
Proceeds from disposal of subsidiary | MYR       MYR 510,000      
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
6 Months Ended
Jun. 30, 2017
Leasehold Building [Member]  
Estimated useful lives 50 years
Computer and Software [Member]  
Estimated useful lives 5 years
Furniture and Fixtures [Member]  
Estimated useful lives 5 years
Leasehold Improvement [Member]  
Estimated useful lives 10 years
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
6 Months Ended
Jun. 30, 2017
Segment
Accounting Policies [Abstract]  
Number of reportable segments 3
GOING CONCERN UNCERTAINTIES (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Net loss contributed to shareholders $ 6,976 $ (54,970) $ (226,336) $ (138,428)  
Working capital deficit     (651,887)    
Accumulated deficit $ (759,618)   $ (759,618)   $ (533,282)
HELD FOR TRADING SECURITIES (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Short-term investments:    
Quoted shares in Malaysia $ 13,222 $ 12,660
OTHER RECEIVABLES, NET (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Other receivables [1] $ 1,928,586 $ 746,386
Deposits and Prepayment [2] 41,528 1,165
Other receivables, deposits and prepayment $ 1,970,114 $ 747,551
[1] Deposits represented payments for telephone, electricity, water, maintenance fee, rental & utility and parking.
[2] Prepayment represented prepayments for maintenance fee, sinking fund and fire assurance.
PROPERTY AND EQUIPMENT, NET (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Gross $ 81,004 $ 75,027
Less: Accumulated depreciation (16,906) (14,963)
Balance at end of period 64,098 60,064
Leasehold Building [Member]    
Gross 73,674 70,543
Computer and Software [Member]    
Gross 6,803 3,979
Furniture and Fixtures [Member]    
Gross $ 527 $ 505
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Property, Plant and Equipment [Abstract]        
Depreciation expenses $ 1,260 $ 4,448 $ 667 $ 2,224
OTHER PAYABLES AND ACCRUALS (Details) - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Payables and Accruals [Abstract]    
Other payables $ 3,731,833 $ 2,440,117
Accruals 3,811 4,454
Other payables and accrued expenses $ 3,735,644 $ 2,444,571
INCOME TAX (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Deferred:        
Income tax expense $ 749 $ 733
MALAYSIA [Member]        
Current:        
Provision for income tax (749)   733
Deferred:        
Provision for income tax
Income tax expense 733
UNITED STATES [Member]        
Current:        
Provision for income tax  
Deferred:        
Provision for income tax
Income tax expense  
INCOME TAX (Details 1) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Profit (loss) before income tax $ 6,976 $ (58,105) $ (226,336) $ (147,477)
Taxable income 6,976 (54,970) (226,336) (138,428)
Income tax expenses 749 733
MALAYSIA [Member]        
Profit (loss) before income tax 6,976 (58,854) 226,336 (147,477)
Permanent difference 6,976 58,854 226,336 147,477
Taxable income
Income tax rate 24.00% 24.00% 24.00% 24.00%
Current tax expenses $ (749)   $ 733
Less: Valuation allowance
Income tax expenses 733
UNITED STATES [Member]        
Profit (loss) before income tax 6,976 (58,854) (226,336) (147,477)
Permanent difference $ 6,976 $ 58,854 $ 226,336 $ 147,477
Income tax rate 34.00% 34.00% 34.00% 34.00%
Current tax expenses  
Less: Valuation allowance
Income tax expenses  
INCOME TAX (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Profit (loss) before income tax $ 6,976 $ (58,105)