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Document and Entity Information - shares
9 Months Ended
Sep. 30, 2017
Nov. 14, 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 Sep. 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 Q3  
Document Fiscal Year Focus 2017  
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
CURRENT ASSETS    
Cash and cash equivalents $ 142,965 $ 363,015
Account receivables 200,384
Other receivables, deposits and prepayment 1,950,295 747,551
Amount due from related parties 910,945 1,152,014
Amount due from a director 8 23,503
Short-term investments 13,457 12,660
Total Current Assets 3,218,054 2,298,743
PROPERTY AND EQUIPMENT, NET 64,644 60,064
TOTAL ASSETS 3,282,698 2,358,807
CURRENT LIABILITIES    
Other payables 4,060,553 2,440,117
Accruals 4,454
Amounts due to related parties 287,053 266,807
Total Current Liabilities 4,347,606 2,711,378
Total Liabilities 4,347,606 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 September 30, 2017 and December 31, 2016) 100,006 100,006
Additional paid in capital 302,166 302,166
Accumulated deficit (1,202,810) (533,282)
Accumulated other comprehensive loss (245,112) (221,461)
Equity attributable to equity holders of the parent (1,045,750) (352,571)
Non-controlling interests (19,158)
Total Stockholders' Equity (Deficit) (1,064,908) (352,571)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 3,282,698 $ 2,358,807
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares
Sep. 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 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]        
REVENUE $ 30,396 $ 19,052 $ 186,636 $ 19,052
COST OF REVENUE (41,494) (3,082) (122,204) (3,082)
GROSS PROFIT (11,098) 15,970 64,432 15,970
OPERATING EXPENSES        
Administrative expenses (230,724) (106,900) (689,537) (272,353)
PROFIT/(LOSS) FROM OPERATIONS (241,822) (90,930) (625,105) (256,383)
OTHER INCOME/(EXPENSE), NET        
Rental Income
Interest Expenses 161 205 829 205
Other Income (9,217) (3,223) (615)
Other Expense (6,213) (42,004) (38,200) (42,383)
Exchange (loss)/gain (1,615) 2,877 (3,830) 2,265
Total Other Income / (Expense), net (7,667) (48,139) (44,424) (40,528)
NET INCOME /(LOSS) BEFORE TAXES
Income tax expense (3) (736)
LOSS FROM CONTINUING OPERATIONS (249,489) (139,072) (669,529) (297,647)
Gain (loss) from discontinued operations 47,831 (16,810)
NET INCOME/(LOSS) (249,489) (91,241) (669,529) (314,457)
OTHER COMPREHENSIVE INCOME/(LOSS)        
Foreign currency translation adjustment (13,659) (15,788) (2,240) 39,584
TOTAL COMPREHENSIVE INCOME /(LOSS) (263,148) (107,029) (671,769) (274,873)
Net loss contributed to non-controlling interest (18,618)
Net loss contributed to shareholders
Total net loss Before Discontinued operations (263,148) (139,072) (669,529) (297,647)
Discontinued operations 47,831 (16,810)
Total net loss (249,489) (91,241) (669,529) (314,457)
Total comprehensive income /(loss) contributed to non-controlling interest (19,166)
Total comprehensive income /(loss) contributed to shareholders $ (263,148) $ (107,029) $ (652,603) $ (274,873)
Net income (loss) per share - basic and diluted (in dollars per share)        
Continuing (in dollars per share) $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Discontinued (in dollars per share) (0.00) 0.00 (0.00) (0.00)
Earnings Per Share, Basic and Diluted, Total $ 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 ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (669,529) $ (314,457)
Adjusted to reconcile net loss to net cash used in operating activities:    
Depreciation - property and equipment 1,914 1,583
Changes in operating assets and liabilities    
Account receivables (200,384)
Other receivables and accruals (1,202,744) (46,658)
Current assets from disposal of subsidiaries 10,788
Current liabilities from disposal of subsidiaries (8,936)
Other payables and accrued expenses 1,593,714 1,232,795
Deposit for purchase of properties 22,269
Net cash provided by (used in) operating activities (454,760) 875,115
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property, plant and equipment (2,691) (2,622)
Non-current assets from disposal of subsidiaries 24,596
Investment equity (16,897)
Net cash provided by (used in) investing activities (2,691) 5,077
CASH FLOWS FROM FINANCING ACTIVITIES    
Stockholders' equity from disposal of subsidiaries (87,054)
Amount due from related parties 261,315 (503,999)
Advance from director 23,495 (90,150)
Net cash provided by (used in) financing activities 284,810 (681,203)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (47,409) 33,033
NET INCREASE IN CASH AND CASH EQUIVALENTS (220,050) 232,022
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 363,015 463,007
CASH AND CASH EQUIVALENTS AT END OF PERIOD 142,965 695,029
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid for interest expenses
Cash paid for income tax $ 736
ORGANIZATION AND BUSINESS
9 Months Ended
Sep. 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).

 

HWGG Property Sdn Bhd was incorporated in March 24, 2015. In January 11, 2017, the company acquired 67% of HWGG Property Sdn Bhd for a consideration of approximately $16 (RM67). HWGG Property Sdn Bhd business activity is in property investment and property development.

 

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.

 

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, as market price no longer deemed as micro penny stock (below $0.01); (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.

  

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
9 Months Ended
Sep. 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.

 

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 September 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 September 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 nine months ended September 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 September 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 nine months ended September 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
9 Months Ended
Sep. 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 September 30, 2017, the Company reported a net loss of $669,529 and working capital deficit of $1,129,552. The Company had an accumulated deficit of $1,202,810 as of September 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
9 Months Ended
Sep. 30, 2017
Cash and Cash Equivalents [Abstract]  
HELD FOR TRADING SECURITIES
4. HELD FOR TRADING SECURITIES

 

    Estimated  
    Fair Value  
    As of
September 30, 2017
(Unaudited)
    As of
December 31, 2016
 
             
Short-term investments:                
Quoted shares in Malaysia   $ 13,457     $ 12,660  

 

Realized gains and realized losses were not significant for either of the three month and nine month ended September 30, 2017. The changes in value was mainly due to forex implication.

OTHER RECEIVABLES, NET
9 Months Ended
Sep. 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
September 30,
2017
    As of
December 31,
2016
 
             
Other receivables (1)   $ 1,912,624       746,386  
Deposits and Prepayment (2)     37,671       1,165  
    $ 1,950,295     $ 747,551  

  

  (1) Other receivables mainly arising from owing by Silver Rhythm Sdn Bhd. Ho Wah Genting Group Limited has signed an agreement with Silver Rhythm Sdn Bhd and another deemed related party, to offset Silver Rhythm Sdn Bhd’s owing of RM8,420,000 with 1,960,912 unit of Vitaxel Group Limited’s shares, a company listed on OTC Market.

  

  (2) Deposits represented payments for telephone, electricity, water, maintenance fee, rental & utility and parking. Prepayment represented prepayments for maintenance fee, sinking fund and fire assurance.

PROPERTY AND EQUIPMENT, NET
9 Months Ended
Sep. 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
September
30, 2017
    As of
December
31, 2016
 
             
Leasehold building   $ 74,982     $ 70,543  
Computer and software     6,755       3,979  
Furniture and fixtures     781       505  
      82,518       75,027  
                 
Less: Accumulated depreciation     (17,874 )     (14,963 )
                 
 Balance at end of period   $ 64,644     $ 60,064  

  

Depreciation expenses was $1,914 (3 months $654) and $4,886 (3 months $1,043) for the nine months ended September 30, 2017 and 2016, respectively.

OTHER PAYABLES AND ACCRUALS
9 Months Ended
Sep. 30, 2017
Payables and Accruals [Abstract]  
OTHER PAYABLES AND ACCRUALS

  7. OTHER PAYABLES AND ACCRUALS

 

    As of
September
30, 2017
    As of
December
31, 2016
 
             
Other payables (1)     4,055,316       2,440,117  
Accruals     5,237       4,454  
    $ 4,060,553     $ 2,444,571  

 

  (1) Other payables mainly consist of members redemption balances.
INCOME TAX
9 Months Ended
Sep. 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 24% of taxable income.

Income tax expenses for the Company are summarized as follows:

 

    For the three months ended     For the nine months ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Current:                                
Provision for Malaysian income tax   $     $ 736     $     $ 733  
Provision for U.S. income tax                        
Deferred:                                
Provision for Malaysian income tax                        
Provision for U.S. income tax                        
    $     $ 736     $     $ 733  

 

Malaysia

 

Malaysia HWGG recorded a loss before income tax of $669,529 and $296,911 for the period ended September 30, 2017 and 2016, respectively. A reconciliation of the provision for income taxes with amounts determined by applying the Malaysian income tax rate of 24% and 24% for the period ended September 30, 2017 and 2016, respectively, to income before income taxes are as follows:

 

    For the three months ended     For the nine months ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Profit (loss) before income tax   $ (323,597 )   $ (98,437 )   $ (549,933 )   $ (320,920 )
Permanent difference     323,597       98,425       549,933       323,864  
Taxable income   $     $ 12     $     $ 2,944  
Malaysian income tax rate     24 %     24 %     24 %     24 %
Current tax expenses   $     $ (3 )   $     $ (736 )
Less: Valuation allowance                        
Income tax expenses   $     $ (3 )   $     $ (736 )

 

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 September 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 September 30, 2017 and 2016, respectively, to income before income taxes are as follows:

 

    For the three months ended     For the six ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Profit (loss) before income tax   $     $     $     $  
Permanent difference                        
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 September 30, 2017 and 2016.

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

  9. RELATED PARTY TRANSACTIONS

 

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

 

    As of
September
30, 2017
    As of
December
31, 2016
 
             
Ho Wah Genting Berhad (1)   $ 59,256     $ 544,096  
Ho Wah Genting Holiday Sdn Bhd (2)     37,924        
Ho Wah Genting Shenzhen Limited (2)     110,612        
Genting Highlands Taxi Services Sdn Bhd     23,702        
Vitaxel SDN BHD (2)     655,749       585,619  
Vitaxel Online Mall SDN BHD (3)     23,702       22,299  
    $ 910,945     $ 1,152,014  

 

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

 

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

  

    As of
September
30, 2017
    As of
December
31, 2016
 
                 
 Lim Chun Hoo (1)   $ 8     $ 23,503  

  

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

 

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

 

    As of
September
30, 2017
    As of
December
31, 2016
 
             
Dato’ Lim Boon Hui (1)   $     $ 208,830  
Grande Legacy Inc. (4)     234,908        
Beedo SDN BHD (2) (3)     52,145       57,977  
    $ 287,053     $ 266,807  

 

  (1) Our President. Dato Lim Hui Boon, is also the Group President and shareholder of Ho Wah Genting Berhad

 

  (2) Lim Chun Hoo, our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and director, is also a director of Ho Wah Genting Holiday Sdn Bhd, Ho Wah Genting Shenzhen Limited and Beedo SDN BHD. He was also 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.

 

  (3) Liew Jenn Lim, one of our directors since March 1, 2017, is also a director of Vitaxel Online Mall Sdn Bhd and Beedo SDN BHD.

 

  (4) Leong Yee Ming, one of our directors prior to his resignation on March 1, 2017, is a director of Grande Legacy Inc.

 

During the periods ended September 30, 2017 and 2016, the Company recognized rental income of $4,144 (3 months $1,381) and $4,414 (3 months $1,381) 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 September 30, 2017 and 2016, the Company recognized revenues consisting of junket commission from Ho Wah Genting Holiday SDN BHD was $7,680 and $15,592 respectively, and only for period ended September 30, 2017.

 

From January 1, 2016 to August 12, 2016, the Company, through its subsidiary Beedo SDN BHD recognized revenue from the provision of information technology services of $10,361 from Ho Wah Genting Holiday SDN BHD and $41,443 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
9 Months Ended
Sep. 30, 2017
Net income (loss) per share - basic and diluted (in dollars per share)  
EARNINGS (LOSS) PER SHARE
10. 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 nine month ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Net loss applicable to common shares   $ (249,490 )   $ (91,241 )   $ (669,529 )   $ (314,457 )
                                 
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
9 Months Ended
Sep. 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 September 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 September 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 September 30, 2017 and 2016 was as follows:

 

    For the three months ended     For the nine months
ended
 
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Revenues:                                
                                 
Investment property holding   $ 1,381     $ 4,414     $ 4,144     $ 4,414  
Information technology services                        
ETM and junket operations                 7,850        
Others     29,014       14,638       174,642       14,638  
    $ 30,395     $ 19,052     $ 186,636     $ 19,052  
                                 
Cost of revenues:                                
Investment property holding   $     $ 3,082     $     $ 3,082  
Information technology services                        
ETM and junket operations                        
Others     41,494             122,204        
    $ 41,494     $ 3,082     $ 122,204     $ 3,082  
                                 
Depreciation:                                
Investment property holding   $ 638     $ 611     $ 1,914     $ 1,583  
Information technology services                        
ETM and junket operations                        
Others                        
    $ 638     $ 611     $ 1,914     $ 1,583  
                                 
Net income (loss):                                
Investment property holding   $ 1,381     $ 1,332     $ 4,144     $ 1,332  
Information technology services                        
ETM and junket operations                 7,850        
Others     (250,870 )     (140,404 )     (681,523 )     (298,979 )
    $ (249,489 )   $ (139,072 )   $ (669,529 )   $ (297,647 )

 

    September 30, 2017  
    Investment
property
holding
    Information
technology
services
    Junket
operation
    Others     Total  
Identifiable long-lived assets, net   $ 58,736     $     $     $ 5,908     $ 64,644  
                                         

 

    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
9 Months Ended
Sep. 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 September 30, 2017and December 31, 2016 were as follows:

 

    Balance at
September 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   $ 13,457     $ 13,457     $     $  
Total short-term investments     13,457       13,457              
Total financial assets measured at fair value   $ 13,457     $ 13,477     $     $  

 

          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
9 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

  

On October 23, 2017, Ho Wah Genting Group Sdn. Bhd. has signed an agreement with Silver Rhythm Sdn Bhd and another deemed related party, to offset Silver Rhythm Sdn Bhd’s owing of RM8,420,000 with 1,960,912 unit of shares of a company listed on OTC Market, following to an arrangement signed between Ho Wah Genting Group Sdn Bhd with Silver Rhythm Sdn Bhd on July 6, 2017. 

 

On November 6, 2017, Ho Wah Genting Group Sdn. Bhd. has issued a letter to Vspark Malaysia Sdn. Bhd. to acknowledge that there is a potential 50:50 joint venture with Vspark Malaysia Sdn. Bhd. to develop the Port Dickson Project. The Port Dickson Project consist of 182 units of water chalet, 400 units of hotel tower and a cruise entertainment hub.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 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.

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 September 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 September 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 nine months ended September 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 September 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 nine months ended September 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)
9 Months Ended
Sep. 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)
9 Months Ended
Sep. 30, 2017
Cash and Cash Equivalents [Abstract]  
Schedule of held for trading securities
 

    Estimated  
    Fair Value  
    As of
September 30, 2017
(Unaudited)
    As of
December 31, 2016
 
             
Short-term investments:                
Quoted shares in Malaysia   $ 13,457     $ 12,660  

 

OTHER RECEIVABLES, NET (Tables)
9 Months Ended
Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of other receivables

Other receivables consist of the following: 

 

    As of
September 30,
2017
    As of
December 31,
2016
 
             
Other receivables (1)   $ 1,912,624       746,386  
Deposits and Prepayment (2)     37,671       1,165  
    $ 1,950,295     $ 747,551  

  

  (1) Other receivables mainly arising from owing by Silver Rhythm Sdn Bhd. Ho Wah Genting Group Limited has signed an agreement with Silver Rhythm Sdn Bhd and another deemed related party, to offset Silver Rhythm Sdn Bhd’s owing of RM8,420,000 with 1,960,912 unit of Vitaxel Group Limited’s shares, a company listed on OTC Market.

  

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

Property and equipment, net consist of the following:

 

    As of
September
30, 2017
    As of
December
31, 2016
 
             
Leasehold building   $ 74,982     $ 70,543  
Computer and software     6,755       3,979  
Furniture and fixtures     781       505  
      82,518       75,027  
                 
Less: Accumulated depreciation     (17,874 )     (14,963 )
                 
 Balance at end of period   $ 64,644     $ 60,064  
OTHER PAYABLES AND ACCRUALS (Tables)
9 Months Ended
Sep. 30, 2017
Payables and Accruals [Abstract]  
Schedule of other payables and accruals
    As of
September
30, 2017
    As of
December
31, 2016
 
             
Other payables (1)     4,055,316       2,440,117  
Accruals     5,237       4,454  
    $ 4,060,553     $ 2,444,571  

 

  (1) Other payables mainly consist of members redemption balances.

 

INCOME TAX (Tables)
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

Company and its subsidiary are Malaysia incorporated companies and required to pay corporate income tax at 24% of taxable income.

Income tax expenses for the Company are summarized as follows:

 

    For the three months ended     For the nine months ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Current:                                
Provision for Malaysian income tax   $     $ 736     $     $ 733  
Provision for U.S. income tax                        
Deferred:                                
Provision for Malaysian income tax                        
Provision for U.S. income tax                        
    $     $ 736     $     $ 733  

 

Schedule of income before income tax

Malaysia HWGG recorded a loss before income tax of $669,529 and $296,911 for the period ended September 30, 2017 and 2016, respectively. A reconciliation of the provision for income taxes with amounts determined by applying the Malaysian income tax rate of 24% and 24% for the period ended September 30, 2017 and 2016, respectively, to income before income taxes are as follows:

 

    For the three months ended     For the nine months ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Profit (loss) before income tax   $ (323,597 )   $ (98,437 )   $ (549,933 )   $ (320,920 )
Permanent difference     323,597       98,425       549,933       323,864  
Taxable income   $     $ 12     $     $ 2,944  
Malaysian income tax rate     24 %     24 %     24 %     24 %
Current tax expenses   $     $ (3 )   $     $ (736 )
Less: Valuation allowance                        
Income tax expenses   $     $ (3 )   $     $ (736 )

 

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 September 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 September 30, 2017 and 2016, respectively, to income before income taxes are as follows:

 

    For the three months ended     For the six ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Profit (loss) before income tax   $     $     $     $  
Permanent difference                        
Taxable income   $     $     $     $  
USA income tax rate     34 %     34 %     34 %     34 %
Current tax expenses   $     $     $     $  
Less: Valuation allowance                        
Income tax expenses   $     $     $     $  

 

RELATED PARTY TRANSACTIONS (Tables)
9 Months Ended
Sep. 30, 2017
Related Party Transactions [Abstract]  
Schedule of due from related party

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

 

    As of
September
30, 2017
    As of
December
31, 2016
 
             
Ho Wah Genting Berhad (1)   $ 59,256     $ 544,096  
Ho Wah Genting Holiday Sdn Bhd (2)     37,924        
Ho Wah Genting Shenzhen Limited (2)     110,612        
Genting Highlands Taxi Services Sdn Bhd     23,702        
Vitaxel SDN BHD (2)     655,749       585,619  
Vitaxel Online Mall SDN BHD (3)     23,702       22,299  
    $ 910,945     $ 1,152,014  

 

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

 

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

  

    As of
September
30, 2017
    As of
December
31, 2016
 
                 
 Lim Chun Hoo (1)   $ 8     $ 23,503  

 

Schedule of due to related party

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

 

    As of
September
30, 2017
    As of
December
31, 2016
 
             
Dato’ Lim Boon Hui (1)   $     $ 208,830  
Grande Legacy Inc. (4)     234,908        
Beedo SDN BHD (2) (3)     52,145       57,977  
    $ 287,053     $ 266,807  

 

  (1) Our President. Dato Lim Hui Boon, is also the Group President and shareholder of Ho Wah Genting Berhad

 

  (2) Lim Chun Hoo, our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and director, is also a director of Ho Wah Genting Holiday Sdn Bhd, Ho Wah Genting Shenzhen Limited and Beedo SDN BHD. He was also 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.

 

  (3) Liew Jenn Lim, one of our directors since March 1, 2017, is also a director of Vitaxel Online Mall Sdn Bhd and Beedo SDN BHD.

 

  (4) Leong Yee Ming, one of our directors prior to his resignation on March 1, 2017, is a director of Grande Legacy Inc.

EARNINGS (LOSS) PER SHARE (Tables)
9 Months Ended
Sep. 30, 2017
Net income (loss) per share - basic and diluted (in dollars per share)  
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 nine month ended  
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Net loss applicable to common shares   $ (249,490 )   $ (91,241 )   $ (669,529 )   $ (314,457 )
                                 
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)
9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Schedule of reportable business segments

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

 

    For the three months ended     For the nine months
ended
 
    September
30, 2017
    September
30, 2016
    September
30, 2017
    September
30, 2016
 
                         
Revenues:                                
                                 
Investment property holding   $ 1,381     $ 4,414     $ 4,144     $ 4,414  
Information technology services                        
ETM and junket operations                 7,850        
Others     29,014       14,638       174,642       14,638  
    $ 30,395     $ 19,052     $ 186,636     $ 19,052  
                                 
Cost of revenues:                                
Investment property holding   $     $ 3,082     $     $ 3,082  
Information technology services                        
ETM and junket operations                        
Others     41,494             122,204        
    $ 41,494     $ 3,082     $ 122,204     $ 3,082  
                                 
Depreciation:                                
Investment property holding   $ 638     $ 611     $ 1,914     $ 1,583  
Information technology services                        
ETM and junket operations                        
Others                        
    $ 638     $ 611     $ 1,914     $ 1,583  
                                 
Net income (loss):                                
Investment property holding   $ 1,381     $ 1,332     $ 4,144     $ 1,332  
Information technology services                        
ETM and junket operations                 7,850        
Others     (250,870 )     (140,404 )     (681,523 )     (298,979 )
    $ (249,489 )   $ (139,072 )   $ (669,529 )   $ (297,647 )

Schedule of identifiable long-lived assets

    September 30, 2017  
    Investment
property
holding
    Information
technology
services
    Junket
operation
    Others     Total  
Identifiable long-lived assets, net   $ 58,736     $     $     $ 5,908     $ 64,644  
                                         

 

    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)
9 Months Ended
Sep. 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 September 30, 2017and December 31, 2016 were as follows:

 

    Balance at
September 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   $ 13,457     $ 13,457     $     $  
Total short-term investments     13,457       13,457              
Total financial assets measured at fair value   $ 13,457     $ 13,477     $     $  

 

          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)
Jul. 12, 2017
$ / shares
Jan. 11, 2017
USD ($)
Jan. 11, 2017
MYR
Nov. 04, 2016
shares
Oct. 28, 2016
shares
Aug. 12, 2016
USD ($)
Aug. 12, 2016
MYR
Jul. 07, 2015
shares
Sep. 30, 2017
$ / shares
Jul. 14, 2017
$ / shares
Dec. 31, 2016
$ / shares
Jul. 06, 2015
shares
Jun. 25, 2015
Common stock, par value (in dollars per share) | $ / shares                 $ 0.0002   $ 0.0002    
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 Limited ("HWGG") [Member]                          
Description of reverse split two-to-one                        
Previously reported common stock, par value (in dollars per share) | $ / shares                   $ 0.0001      
Common stock, par value (in dollars per share) | $ / shares $ 0.0002                        
Ho Wah Genting Group SDN BHD ("Malaysia HWGG") [Member]                          
Percentage of aquired for a consideration   67.00% 67.00%                    
Consideration fair value | $   $ 16                      
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