<?xml version="1.0" encoding="ASCII"?>
<!-- Generated by CompSci Transform (tm) - http://www.compsciresources.com -->
<!-- Created: Tue Apr 25 21:10:30 UTC 2023 -->
<html xmlns:country="http://xbrl.sec.gov/country/2022" xmlns:dtr="http://www.xbrl.org/dtr/type/2020-01-21" xmlns:ixt="http://www.xbrl.org/inlineXBRL/transformation/2020-02-12" xmlns:ixt-sec="http://www.sec.gov/inlineXBRL/transformation/2015-08-31" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:dei="http://xbrl.sec.gov/dei/2022" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:compsci="http://compsciresources.com" xmlns:ix="http://www.xbrl.org/2013/inlineXBRL" xmlns:petz="http://tdhholdings/20221231" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:us-types="http://fasb.org/us-types/2022" xmlns:srt="http://fasb.org/srt/2022" xmlns:xl="http://www.xbrl.org/2003/XLink" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:us-gaap="http://fasb.org/us-gaap/2022" xmlns:currency="http://xbrl.sec.gov/currency/2022" xmlns:xs="http://www.w3.org/2001/XMLSchema-instance" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns="http://www.w3.org/1999/xhtml">
<head>
     <title> </title>

<meta content="text/html" http-equiv="Content-Type" />
</head>
<body><div style="font: 10pt Times New Roman, Times, Serif"><div>

</div><p style="text-align: center; margin-top: 0; margin-bottom: 0"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="text-align: center; margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>UNITED STATES<br/>
SECURITIES AND EXCHANGE COMMISSION<br/>
Washington, D.C. 20549</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>FORM <ix:nonNumeric contextRef="c0" name="dei:DocumentType">20-F</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Mark one)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentRegistrationStatement"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric>
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OR</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-true" name="dei:DocumentAnnualReport"><span style="font-family: Times New Roman, Times, Serif">&#9746;</span></ix:nonNumeric>
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>For the fiscal year ended <ix:nonNumeric contextRef="c0" format="ixt:date-monthname-day-year-en" name="dei:DocumentPeriodEndDate"><ix:nonNumeric contextRef="c0" format="ixt:date-monthname-day-en" name="dei:CurrentFiscalYearEndDate">December 31</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" name="dei:DocumentFiscalYearFocus">2022</ix:nonNumeric></ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OR</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentTransitionReport"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric>
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OR</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentShellCompanyReport"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric>
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">for the transition period from ____________&#160;to
____________</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Commission file number <ix:nonNumeric contextRef="c0" name="dei:EntityFileNumber">001-38206</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" name="dei:EntityRegistrantName"><b>TDH Holdings, Inc.</b></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of the Registrant as specified in its
charter)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt-sec:edgarprovcountryen" name="dei:EntityIncorporationStateCountryCode"><b><span style="text-decoration:underline">British Virgin Islands</span></b></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Jurisdiction of incorporation or organization)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>c/o Qingdao Tiandihui Pet Foodstuff Co., Ltd</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c0" name="dei:EntityAddressAddressLine1"><span style="-sec-ix-hidden: hidden-fact-0">2521</span> Tiejueshan Road</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" name="dei:EntityAddressAddressLine2">Huangdao District</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" name="dei:EntityAddressCityOrTown">Qingdao</ix:nonNumeric>,
Shandong Province</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>People&#8217;s Republic of <ix:nonNumeric contextRef="c0" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry">China</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Tel: +86-532-8615-7918</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c1" name="dei:ContactPersonnelName">Dandan Liu, Chief Executive Officer</ix:nonNumeric><br/>
c/o Qingdao Tiandihui Pet Foodstuffs Co. Ltd.,</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c1" name="dei:EntityAddressAddressLine1"><span style="-sec-ix-hidden: hidden-fact-1">2521</span> Tiejueshan Road</ix:nonNumeric>, <ix:nonNumeric contextRef="c1" name="dei:EntityAddressAddressLine2">Huangdao District</ix:nonNumeric>, <ix:nonNumeric contextRef="c1" name="dei:EntityAddressCityOrTown">Qingdao</ix:nonNumeric>,
Shandong Province</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>People&#8217;s Republic of <ix:nonNumeric contextRef="c1" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry">China</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Tel: +<span style="-sec-ix-hidden: hidden-fact-2"><span style="-sec-ix-hidden: hidden-fact-3">86-532-8615-7918</span></span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, Telephone, E-mail and/or Facsimile Number
and Address of Company Contact Person)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities registered or to be registered pursuant
to Section 12(b) of the Act:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; text-align: center"><span style="font-size: 10pt"><b>Title of each class</b></span></td> <td style="padding-bottom: 1.5pt; vertical-align: bottom; width: 2%; text-align: center">&#160;</td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; text-align: center"><span style="font-size: 10pt"><b>Trading Symbol</b></span></td> <td style="padding-bottom: 1.5pt; vertical-align: bottom; width: 2%; text-align: center">&#160;</td> <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; text-align: center"><span style="font-size: 10pt"><b>Name of each exchange on which registered</b></span></td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: center"><ix:nonNumeric contextRef="c0" name="dei:Security12bTitle"><span style="font-size: 10pt"><b>SHARES, PAR VALUE $0.02</b></span></ix:nonNumeric></td> <td style="text-align: center">&#160;</td> <td style="text-align: center"><ix:nonNumeric contextRef="c0" name="dei:TradingSymbol"><span style="font-size: 10pt">PETZ</span></ix:nonNumeric></td> <td style="text-align: center">&#160;</td> <td style="text-align: center"><span style="font-size: 10pt"><b>The <ix:nonNumeric contextRef="c0" name="dei:SecurityExchangeName">NASDAQ</ix:nonNumeric> Stock Market LLC</b></span></td></tr> </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities registered or to be registered pursuant
to Section 12(g) of the Act:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>None.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>None.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 1; Options: NewSection --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the close of the period covered by this
annual report the issuer had <ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="dei:EntityCommonStockSharesOutstanding" scale="0" unitRef="shares">10,323,268</ix:nonFraction> shares outstanding.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Yes <span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityWellKnownSeasonedIssuer">No</ix:nonNumeric>
<span style="font-family: Times New Roman, Times, Serif">&#9746;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this report is an annual or transition report,
indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Yes <span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityVoluntaryFilers">No</ix:nonNumeric>
<span style="font-family: Times New Roman, Times, Serif">&#9746;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><ix:nonNumeric contextRef="c0" name="dei:EntityCurrentReportingStatus">Yes</ix:nonNumeric> <span style="font-family: Times New Roman, Times, Serif">&#9746;</span>&#160;&#160;No
<span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><ix:nonNumeric contextRef="c0" name="dei:EntityInteractiveDataCurrent">Yes</ix:nonNumeric> <span style="font-family: Times New Roman, Times, Serif">&#9746;</span>&#160;&#160;No
<span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of &#8220;large
accelerated filer,&#8221; &#8220;accelerated filer,&#8221; and &#8220;emerging growth company&#8221; in Rule 12b-2 of the Exchange Act.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="white-space: nowrap; width: 33%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span> <span style="font-size: 10pt">Large Accelerated filer</span></td> <td style="white-space: nowrap; width: 34%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span> <span style="font-size: 10pt">Accelerated filer</span></td> <td style="white-space: nowrap; width: 33%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span> <ix:nonNumeric contextRef="c0" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory"><span style="font-size: 10pt">Non-accelerated filer</span></ix:nonNumeric></td></tr> <tr style="vertical-align: top"> <td style="white-space: nowrap; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityEmergingGrowthCompany">&#9744;</ix:nonNumeric>
</span><span style="font-size: 10pt">Emerging growth company </span></td> <td style="white-space: nowrap; text-align: justify">&#160;</td> <td style="white-space: nowrap; text-align: justify">&#160;</td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company that prepares its
financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
has filed a report on and attestation to its management&#8217;s assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report. <ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:IcfrAuditorAttestationFlag"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statement of the registrant included in the filing reflect the correction
of an error to previously issued financial statements. <span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant&#8217;s
executive officers during the relevant recovery period pursuant to &#167;240.10D-1(b). <span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark which basis of accounting
the registrant has used to prepare the financial statements included in this filing:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="white-space: nowrap; width: 15%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span> <span style="font-size: 10pt"><span style="-sec-ix-hidden: hidden-fact-4">US GAAP</span></span></td> <td style="white-space: nowrap; width: 1%">&#160;</td> <td style="white-space: nowrap; width: 68%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span> <span style="font-size: 10pt">International Financial Reporting Standards as issued by <br/>
the International Accounting Standards Board</span></td> <td style="white-space: nowrap; width: 1%">&#160;</td> <td style="white-space: nowrap; width: 15%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</span> <span style="font-size: 10pt">Other</span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If &#8220;Other&#8221; has been checked in response
to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span>
Item 17 <span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;&#160;Item 18</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this is an annual report, indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Yes <span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;&#160;No
<ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityShellCompany"><span style="font-family: Times New Roman, Times, Serif">&#9746;</span></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 2 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="text-transform: uppercase"><b>Table
of Contents</b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="white-space: nowrap; vertical-align: top; width: 10%; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 83%; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; width: 7%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt; text-transform: uppercase"><b>Page</b></span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase"><b><a href="#a_001">PART I</a></b></span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 1.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_002">IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">1</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 2.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_003">OFFER STATISTICS AND EXPECTED TIMETABLE</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">1</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 3.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_004">KEY INFORMATION</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">1</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 4.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_031">INFORMATION ON THE COMPANY</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">26</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 4A.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_005">UNRESOLVED STAFF COMMENTS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">36</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 5.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_006">OPERATING AND FINANCIAL REVIEW AND PROSPECT</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">36</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 6.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_007">DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">63</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 7.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_008">MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">70</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 8.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_009">FINANCIAL INFORMATION</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">73</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 9.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_010">THE OFFER AND LISTING</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">76</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 10.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_011">ADDITIONAL INFORMATION</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">76</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 11.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_012">QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">83</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 12.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_013">DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">83</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase"><b><a href="#a_014">PART II</a></b></span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 13.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_015">DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</a></span></td>
    <td style="vertical-align: bottom; text-align: center">84</td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 14.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_016">MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">84</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 15.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_017">CONTROLS AND PROCEDURES</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">84</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_018">RESERVED</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">85</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16A.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_019">AUDIT COMMITTEE FINANCIAL EXPERT.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">85</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16B.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_020">CODE OF ETHICS.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">85</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16C.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_021">PRINCIPAL ACCOUNTANT FEES AND SERVICES.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">85</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16D.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_022">EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">86</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16E.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_023">PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">86</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16F.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_024">CHANGES IN REGISTRANT&#8217;S CERTIFYING ACCOUNTANT.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">86</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16G.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_025">CORPORATE GOVERNANCE</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">86</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 16H.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt"><a href="#a_026">MINE SAFETY DISCLOSURE</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">86</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt">ITEM 16I.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt"><a href="#a_027">DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">86</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase"><b><a href="#a_032">PART III</a></b></span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 17.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_028">FINANCIAL STATEMENTS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">87</span></td></tr>
  <tr>
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 18.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_029">FINANCIAL STATEMENTS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">87</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="white-space: nowrap; vertical-align: top; text-align: justify"><span style="font-size: 10pt; text-transform: uppercase">ITEM 19.</span></td>
    <td style="vertical-align: top; padding-left: 9pt; text-align: justify; text-indent: -9pt"><span style="font-size: 10pt; text-transform: uppercase"><a href="#a_030">EXHIBITS</a></span></td>
    <td style="vertical-align: bottom; text-align: center"><span style="font-size: 10pt">87</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 3; Options: NewSection --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CERTAIN INFORMATION</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">In this Annual Report on Form
20-F (the &#8220;Annual Report&#8221;), unless otherwise indicated, numerical figures included in this Annual Report have been subject
to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures
that precede them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">For the sake of clarity, this
Annual Report follows the English naming convention of first name followed by last name, regardless of whether an individual&#8217;s name
is Chinese or English.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Except where the context otherwise
requires and for purposes of this Annual Report only:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Depending on the context, the
terms &#8220;we,&#8221; &#8220;us,&#8221; &#8220;our company,&#8221; and &#8220;our&#8221; refer to TDH Holdings, Inc., a British Virgin
Islands company;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">TDH HK Limited, a Hong Kong
company wholly-owned by TDH HOLDINGS, INC.;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">TDH Foods Limited, a Hong Kong
company wholly-owned by TDH HOLDINGS, INC.;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">TDH Group BVA, a Belgium company
wholly-owned by TDH Holdings, Inc;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">TDH Income Corporation, a Nevada
corporation;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Ruby21Noland LLC, a Missouri
corporation;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Far Ling&#8217;s Inc., a Missouri
corporation;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Bo Ling&#8217;s Chinese Restaurant,
Inc., a Missouri corporation;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Qingdao Tiandihui Foodstuffs
Co., Ltd. (&#8220;Tiandihui&#8221;), a Chinese limited liability company;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Qingdao Tiandihui Pet Foodstuffs
Co., Ltd., a Chinese limited liability company;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Qingdao Tiandihui Foodstuffs
Sales Co., Ltd., a Chinese limited liability company;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-size: 10pt">&#9679;</span></td>
    <td>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beijing Chongai Jiujiu Cultural Communication
Co., Ltd., a Chinese limited liability company;</p></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Beijing Wenxin Company., Ltd., a Chinese limited liability
company;</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
    <td style="width: 0.25in"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Qingdao Chihong Information Consulting Co., Ltd., a Chinese limited liability company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#8220;shares&#8221; and &#8220;common shares&#8221; refer to our shares, $0.02 par value per share;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#8220;China&#8221; and &#8220;PRC&#8221; refer to the People&#8217;s Republic of China, excluding, for the purposes of this Annual Report only, Macau, Taiwan and Hong Kong; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">all references to &#8220;RMB,&#8221; and &#8220;Renminbi&#8221; are to the legal currency of China, all references to &#8220;USD,&#8221; and &#8220;U.S. Dollars&#8221; are to the legal currency of the United States., all references to &#8220;Yen&#8221; and &#8220;&#165;&#8221; is to the legal currency of Japan, and all references to &#8220;Euro&#8221; and &#8220;&#8364;&#8221; are to the legal currency of Belgium.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 4 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>FORWARD-LOOKING STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">This Report contains &#8220;forward-looking
statements&#8221; that represent our beliefs, projections and predictions about future events. All statements other than statements of
historical fact are &#8220;forward-looking statements&#8221; including any projections of earnings, revenue or other financial items,
any statements of the plans, strategies and objectives of management for future operations, any statements concerning proposed new projects
or other developments, any statements regarding future economic conditions or performance, any statements of management&#8217;s beliefs,
goals, strategies, intentions and objectives, and any statements of assumptions underlying any of the foregoing. Words such as &#8220;may&#8221;,
&#8220;will&#8221;, &#8220;should&#8221;, &#8220;could&#8221;, &#8220;would&#8221;, &#8220;predicts&#8221;, &#8220;potential&#8221;, &#8220;continue&#8221;,
&#8220;expects&#8221;, &#8220;anticipates&#8221;, &#8220;future&#8221;, &#8220;intends&#8221;, &#8220;plans&#8221;, &#8220;believes&#8221;,
&#8220;estimates&#8221; and similar expressions, as well as statements in the future tense, identify forward-looking statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">These statements are necessarily
subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance
or achievements, or industry results, to differ materially from any future results, performance or achievements described in or implied
by such statements. Actual results may differ materially from expected results described in our forward-looking statements, including
with respect to correct measurement and identification of factors affecting our business or the extent of their likely impact, the accuracy
and completeness of the publicly available information with respect to the factors upon which our business strategy is based on the success
of our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Forward-looking statements
should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the
times by which, our performance or results may be achieved. Forward-looking statements are based on information available at the time
those statements are made and management&#8217;s belief as of that time with respect to future events and are subject to risks and uncertainties
that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.
Important factors that could cause such differences include, but are not limited to, those factors discussed under the headings &#8220;Risk
Factors&#8221;, &#8220;Operating and Financial Review and Prospects,&#8221; &#8220;Information on the Company&#8221; and elsewhere in
this Annual Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">This Annual Report should be
read in conjunction with our audited financial statements and the accompanying notes thereto, which are included in Item 18 of this Annual
Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><b><span style="text-decoration:underline">Summary of Risk Factors</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><i>Investing in our Common
Shares involves significant risks. You should carefully consider all of the information in this annual report before making an investment
in our Common Shares. Below please find a summary of the principal risks we face, organized under the relevant headings. These risks are
discussed more fully in the section titled &#8220;Risk Factors&#8221;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><b>Risks related to our business.
See &#8220;Risk Factors &#8211; Risks Related to Our Business</b><i>&#8221;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Risk and uncertainties related
to our business include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Legal claims by vendors could
impair our ability to continue as a going concern.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Various pending lawsuits, legal
claims, proceedings and arbitrations could impair our ability to continue as a going concern.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Labor arbitration claims by
former employees could impair our ability to continue as a going concern.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">The report of our independent
registered public accounting firm on our financial statements includes an explanatory paragraph that expresses substantial doubt about
our ability to continue as a going concern.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have historically incurred recurring losses and it is uncertain whether we may continue to incur losses in the future.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We
                                            discontinued our petfood manufacturing segment and the turnaround of our business currently
                                            depends, in part, on our ability to successfully generate revenue in the restaurant segment.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We depend on our key personnel,
and our business and growth prospects may be severely disrupted if we lose their services.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 5 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iii<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">If our products are alleged
to cause injury or illness or fail to comply with PRC or other applicable governmental regulations, we may need to recall our products
and may experience product liability claims.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><b>Risks related to our restaurant
segment business. See &#8220;Risk Factors &#8211; Risks Related to the Restaurant Segment</b><i>&#8221;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Risk and uncertainties related
to our restaurant segment business include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Social distancing measures and
changes in consumer behavior as a result of COVID-19 have affected and may materially and adversely affect us.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our restaurant base is geographically concentrated in Missouri, and we could be negatively affected by conditions specific to this state.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Failure to preserve the value
and relevance of our brand could have an adverse impact on our financial results.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">If we do not anticipate and
address evolving consumer preferences and effectively execute our pricing, promotional and marketing plans, our business could suffer.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify">We face intense competition in our market, which could hurt
our business.</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Food safety and foodborne illness concerns may have an adverse
effect on our reputation and business.</td>
</tr></table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><b>Risks related to Doing
Business in China. See &#8220;Risk Factors &#8211; Risks Related to Doing Business in China&#8221;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Risk and uncertainties related
to doing business in China include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Because of our corporate structure,
we as well as the investors are subject to unique risks due to uncertainty of the interpretation and the application of the PRC laws
and regulations.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Uncertainties with respect to
the PRC legal system could have a material adverse effect on us.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">The Chinese government exerts
substantial influence over the manner in which we must conduct our business activities and may intervene or influence our operations
at any time, which could result in a material change in our operations and the value of our Common Shares.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Draft rules for China-based
companies seeking for securities offerings in foreign stock markets was released by the CSRC for public consultation. While such rules
have not yet come into effect, the Chinese government may exert more oversight and control over overseas public offerings conducted by
China-based issuers, which could significantly limit or completely hinder our ability to offer or continue to offer our Common Shares
to investors and could cause the value of our Common Shares to significantly decline or become worthless.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">CSRC and other Chinese government
agencies may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers.
Additional compliance procedures may be required in connection offerings, and, if required, we cannot predict whether we will be able
to obtain such approval. As a result, we face uncertainty about future actions by the PRC government that could significantly affect
our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be
worthless.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We may be liable for improper
use or appropriation of personal information provided by our customers.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Since our operations and some
of our assets are located in the PRC, shareholders may find it difficult to enforce a U.S. judgment against the assets of our company,
our directors and executive officers.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">We hold certain of our cash balances in RMB in uninsured
bank accounts in China.</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 6 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iv<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We may be subject to PRC regulatory
limitations on merger and acquisition (M&amp;A) activities.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Fluctuation of the Renminbi
may indirectly affect our financial condition by affecting the volume of cross-border money flow.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We may become a passive foreign
investment company, which could result in adverse U.S. tax consequences to U.S. investors.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Introduction of new laws or
changes to existing laws by the PRC government may adversely affect our business.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Governmental control of currency
conversion may affect the value of your investment.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">PRC&#8217;s labor law restricts
our ability to reduce our workforce in the PRC in the event of an economic downturn and may increase our production costs.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Changes in PRC&#8217;s political
and economic policies could harm our business.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">If relations between the United
States and China worsen, our share price may decrease and we may have difficulty accessing U.S. capital markets.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Because our operations are
located in the PRC, information about our operations is not readily available from independent third-party sources.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><b>Risks related to the Ownership
of our Common Shares. See &#8220;Risk Factors &#8211; Risks Related to the Ownership of our Common Shares&#8221;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Risk and uncertainties related
to ownership of our Commons Shares include, but are not limited to, the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We are a holding company incorporated
in the British Virgin Islands. As a holding company with no material operations of our own, we conduct a substantial majority of our
operations through our subsidiaries established in the PRC.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Recent joint statement by the
SEC and PCAOB, proposed rule changes submitted by Nasdaq, and an act passed by the U.S. Senate all call for additional and more stringent
criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors
who are not inspected by the PCAOB. These developments could add uncertainties to our listing.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">The Holding Foreign Companies
Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification
of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to
our continued listing.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">If our financial condition deteriorates
as a NASDAQ listed company, we may not meet continued listing standards on the NASDAQ Capital Market.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">We are a &#8220;foreign private
issuer,&#8221; and our disclosure obligations differ from those of U.S. domestic reporting companies. As a result, we may not provide
you the same information as U.S. domestic reporting companies or we may provide information at different times, which may make it more
difficult for you to evaluate our performance and prospects.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">The market price of shares may
be volatile, which could cause the value of your investment to decline.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">As the rights of shareholders
under British Virgin Islands law differ from those under U.S. law, you may have fewer protections as a shareholder.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></p><div>

</div><!-- Field: Page; Sequence: 7 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->v<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART I</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_002"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 1.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_003"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 2.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>OFFER STATISTICS AND EXPECTED TIMETABLE</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_004"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 3.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>KEY INFORMATION</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b>&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>[Reserved]</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Capitalization and Indebtedness</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>C.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Reasons for the Offer and Use of Proceeds</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>D.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Risk factors</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">You should carefully consider
the following risk factors, together with all of the other information included in this Annual Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><span style="text-decoration:underline">Risks Related to Our Business</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Legal claims by vendors could impair our ability
to continue as a going concern.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since November 2019, the Company has been a subject
of 57 lawsuits by its raw material supplies, printing and packaging supplies, transportation companies and other vendors. The claims raised
in these lawsuits pertain to the Company&#8217;s non-payment of various invoices for supplier and vendor services rendered, with related
interest and costs. As of the date of this report, in 44 cases, the creditors have reached civil conciliation letters with our company,
and in 9 cases, the court has issued civil judgments. With respect to the remaining 4 cases, the plaintiffs withdrew the lawsuit because
of lack of evidence. The mediation and judgment involved total claims of RMB13.86 million (USD$2.12 million). Such liabilities have been
accrued and reflected in the consolidated financial statements for the year ended December 31, 2020. On March 13, 2021, a land use right
and a factory building on the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million). On March 16, 2022,
the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217;
application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now
subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not
been completed and are expected to be completed by the end of 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 8; Options: NewSection; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Various pending lawsuits, legal claims, proceedings
and arbitrations could impair our ability to continue as a going concern.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, we had the following
pending lawsuits, legal claims, proceedings and arbitrations:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 2, 2019, Qingdao Lingang Real Estate Co., Ltd. (&#8220;QLRE&#8221;), filed a civil lawsuit against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The Company entered into a loan agreement with QLRE in 2018 and borrowed RMB20 million (USD3.18 million) from QLRE in connection with purchase of a factory. The loan was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. The Company failed to make repayment to QLRE. On March 4, 2020, the Court ordered that: (i) the Company repay QLRE the principal amount of RMB20 million plus interest of RMB 550,000 accrued as of October 31, 2019. The court ordered that the payment be made within 10 business days after the effective date of the court ruling, and also ordered that the Company pay interest at the rate of 2% per month for the period from the date of November 1, 2019 to the date of full discharge of the debt, as well as the litigation fee of RMB77,000 (USD$11,933). If the debt is not repaid within the required timeframe, interest shall be doubled from the effective date of court order until the date of full discharge of the debt.&#160;&#160;As of December 31, 2021, we have not satisfied the repayment to QLRE. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">On January 15, 2020, China Construction Bank (&#8220;CCB&#8221;), initiated a civil claim against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The plaintiff alleged that it executed a loan agreement with the Company in the amount of RMB19.93 million (USD3.08 million) for the purchase of manufacturing facility and the associated land use right located at Lingang Economic Development Zone, Huangdao District, Qingdao, Shandong Province, People&#8217;s Republic of China. Rongfeng Cui and his wife, Yanjuan Wang, co-signed for this loan as personal guarantors subject to joint and several liability in connection with the loan. The loan with CCB was guaranteed by Rongfeng Cui and Yanjuan Wang, and secured by a pledge by the aforementioned manufacturing facilities and associated land use right. On April 14, 2020, the Court has ordered among other things that the Company repay RMB19.93 million (USD3.25 million) of principal and accrued interest to CCB, and to sell the mortgaged property. On March 13, 2021, the land and factory buildings on the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million), of which, $3,192,827 (RMB21.14 million) has been used to repay loan principal and accrued interest to CCB. The repayment was completed by April 2021.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
    November 11, 2019, Shanghai Pudong Development Bank Qingdao Branch (&#8220;SPDB&#8221;), filed a civil lawsuit against Tiandihui,
    Qingdao Saike Environmental Technology Co., Ltd. (&#8220;Saike&#8221;), Qingdao Gaochuang Technology Finance Guarantee Co., Ltd.
    (&#8220;Gaochuang&#8221;), Rongfeng Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB to borrow an
    aggregate of RMB4.85 million (USD0.75 million) from SPDB for working capital purpose. The Company failed to repay the debt upon
    maturity. The borrowing from SPDB was guaranteed by Rongfeng Cui and Yanjuan Wang, and secure by a pledge of land use right and real
    property of Saike and certaim real property owned by Rongfeng Cui and Yanjuan Wang. The Company failed to make repayment to SPDB on
    the maturity date. On October 24, 2020, the court has ordered the Company to repay SPDB the principal owed plus interest at the
    annual interest rate of 18.25%. The payment was required to be made within 10 business days after the effective date of the order.
    If the debt was not paid within the required timeframe, interest doubled from the effective date of the court order until the date
    of full discharge of the debt.&#160;&#160;The Company is also required to pay litigation fees in the amount of &#160;RMB156,880 (USD
    24,312). &#160;As of December 31, 2021, we have not satisfied the repayment to SPDB. &#160;On March 16, 2022, the People&#8217;s
    Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217;
    application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are
    now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings
    have not been completed and are expected to be completed by the end of 2023.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 9; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 10, 2019, Qingdao Gaochuang Technology Finance Guarantee Co., Ltd. (&#8220;Gaochuang&#8221;), initiated a civil claim against Tiandihui, Saike, Rongfeng Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB for bank acceptance draft and Gaochuang executed the guarantee of SPDB bank acceptance deposit on behalf of the Company in the amount of RMB1.2 million (USD0.19 million). The Company failed to repay the RMB 1.2 million ($0.19 million) deposit to Gaochuang upon the bank acceptance draft maturity date. The deposit made by Gaochuang was guaranteed by certain of the Company&#8217;s fixed assets and patents. &#160;On December 29, 2020, the court ordered the Company to repay the RMB 1.2 million ($0.19 million) deposit to Gaochuang and the interest at the annual interest rate of 4.15%. The payment was required to be made within 10 business days after the effective date of the court order. The court order also provides that if the debt was not paid within the required timeframe, interest doubled from the effective date of court order until the date of full discharge of the debt.&#160;&#160;The court order also obligate the Company to bear litigation fees of RMB83,127(USD 12,882).&#160;&#160;As of December 31, 2021, we had not satisfied the repayment to Gaochuang. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 6, 2020, the Postal Savings Bank of China Limited Weihai Road Sub-branch of Qingdao North District (hereinafter referred to as Postal Savings) filed a civil lawsuit against Tiandihui, Rongfeng Cui and Yanjuan Wang. The Company entered into two loan agreements with Postal Savings in 2018 and 2019, respectively, and borrowed RMB9.9 million ($1.53 million) in aggregate. The loans were guaranteed by Rongfeng Cui and Yanjuan Wang, and were secured by a pledge of real property owned by the Company and real property owned by Rongfeng Cui. The Company failed to pay its debt to Postal Savings when it was due. In June 2020, the court ordered the Company to repay to Postal Savings the principal and interest under the loan, and to reimburse Postal Savings for the litigation fees incurred by Postal Savings.&#160;&#160;If the court decide to auction the pledged real properties, Postal Savings shall have the priority right of the repayment from the auction proceeds. As of December 31, 2021, we had not satisfied the repayment to Postal Savings. &#160;On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Labor arbitration claims by former employees
could impair our ability to continue as a going concern.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company dismissed certain employees in 2019
and 2020 and only maintained 51 full-time employees during fiscal year 2022 and as of December 31, 2022. As a result of the employee layoffs,
certain of the Company&#8217;s former employees commenced arbitration proceedings against the Company under applicable labor rules and
standards, claiming, among others, lost wages, severance payments and/or social security obligations totaling RMB3.68 million (USD0.56
million). There were 98 labor arbitrations, of which 6 cases has been settled and the trial court has issued decisions on the remaining
92 cases. The Company accrued approximately $0.4 million contingent liabilities in other current liabilities on the consolidated balance
sheet as of December 31, 2019 and recognized contingent losses of approximately $0.4 million for the year ended December 31, 2019. Upon
the issuance of rulings in these cases, the Company further accrued approximately $0.1 million wage and/or severance payables in other
current liabilities on the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $0.1 million for
the year ended December 31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were actioned by
the court for $5,098,461 (RMB 33.14 million). In 2021, we have paid RMB3.73 million to substantially settle the labor arbitration cases
with our former employees. We only had RMB 0.5 million ($0.08 million) remaining severance payables to them as of December 31, 2021. On
March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance
of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these
legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy
proceedings have not been completed and are expected to be completed by the end of 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 10; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The report of our independent registered public
accounting firm on our financial statements includes an explanatory paragraph that expresses substantial doubt about our ability to continue
as a going concern, and if our business is unable to continue it is likely investors will lose all of their investment.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As discussed in Note 2 to the consolidated financial
statements to this Annual Report, the Company discontinued its petfood business during the first quarter of 2023 and currently the Company&#8217;s
revenue is substantially generated from the restaurant business segment. The Company&#8217;s business turnaround currently depends, in
part, on its ability to successfully introduce manage and acquire new restaurants. If the Company is not able to effectively manage and
acquire new restaurants that successfully generate revenue, it may not be able to grow and maintain its business as anticipated, and its
sales may decline and its future business, financial condition and results of operations may be materially adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, as of December 31, 2022, there were
still various pending lawsuits, legal claims, proceedings, arbitrations and bankruptcy proceedings that could impair the Company&#8217;s
future ability to continue as a going concern<b>. </b>Furthermore, the Company&#8217;s business operations may be further affected by
the ongoing COVID-19 pandemic. There can be no assurances that future revenue or capital infusion will be sufficient to enable the Company
to develop its business to a level where it will be profitable or continuously to generate positive cash flows. Our auditor, YCM CPA Inc,
has indicated in their report on the Company&#8217;s financial statements for the fiscal year ended December 31, 2022 that there is &#8220;substantial
doubt about our ability to continue as a going concern&#8221;. A &#8220;going concern&#8221; opinion could impair our ability to finance
our operations through the sale of equity, incurring debt, or other financing alternatives.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management&#8217;s plan to alleviate the substantial
doubt about our ability to continue as a going concern include working to improve the Company&#8217;s liquidity and capital sources mainly
through cash flow from its operations and raise sufficient capital through equity or debt financing, strategic alliances or otherwise.
If we are unable to achieve these goals, our business will be jeopardized and we may not be able to continue. If we ceased operations,
it is likely that all of our investors will lose their investment.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the absence of an additional liquidity, our
ability to continue to operate will be impaired, and we may not be able to continue as a going concern. Additionally, even if we raise
sufficient capital through equity or debt financing, strategic alliances or otherwise or generate additional revenue there can be no assurances
that future revenue or capital infusion will be sufficient to enable us to develop our business to a level where it will be profitable
or to generate positive cash flows.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We have historically incurred recurring losses
and it is uncertain whether we may continue to incur losses in the future.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayment to financial institutions
upon maturity, we temporarily suspended our production and normal business operations and we were involved in certain legal proceedings
beginning in November 2019. The COVID-19 outbreak and spread further disrupted our business activities during the period from the beginning
of 2020 up to May 2020 when we resumed our business operations. Historically, we reported recurring losses of approximately $0.87 million
and $6.72 million for the years ended December 31, 2020 and 2021, respectively. On October 31, 2021, we acquired 51% equity interests
of Far Ling&#8217;s Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. This resulted in an increase of $0.6 million
and $3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively. However, we discontinued our petfood
manufacturing segment in the first quarter of 2023 and currently our revenue is substantially generated from the restaurant business segment.
Our business turnaround currently depends, in part, on our ability to successfully introduce, manage and acquire new restaurants. If we
are not able to effectively manage and acquire new restaurants that successfully generate revenue, we may not be able to grow and maintain
our business as anticipated. Although we reported a net income of approximately $0.86 million in fiscal year 2022, it is uncertain whether
we may be able to continue to achieve profitability in the future. Our future revenue and operating cash flows may be further affected
by various pending lawsuits, legal claims, proceedings, arbitration and bankruptcy proceedings. In order to achieve profitability, among
other factors, management must successfully execute our growth and restaurant operations in the markets on which we are focused. If we
are unable to successfully take necessary steps, we may be unable to sustain or increase our profitability in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 11; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The Company is party to various legal proceedings
by its vendors and lenders, which proceedings distract our management, are expensive to conduct and could result in significant damage
award against the Company.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the period from November 2019 to 2020,
the Company has been named as a defendant in 57 lawsuits by its raw material supplies, printing and packaging supplies, transportation
companies and other vendors. The claims raised in these lawsuits pertain to the Company&#8217;s non-payment of various invoices for supplier
and vendor services rendered, with interest and costs. As of the date of this Annual Report, the creditors of 44 cases have reached civil
conciliation letters with the Company, and the court has issued civil judgments in 9 cases, another 4 claimants withdrew their cases for
various reasons including lack of evidence. The mediation and judgment costs are estimated approximately RMB13.86 million (USD$2.12 million).
In addition, several lending institutions have instituted legal proceedings to recover loans made to the Company. Finally, there are several
labor arbitration claims against the Company brought by its former employees following the layoffs, claiming, among others, lost wages,
severance payments and/or social security obligations totaling RMB3.68 million (USD$0.56 million). On March 13, 2021, the land and factory
buildings above the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB 33.14 million), among which, approximately
$3.2 million has been used to repay the defaulted loan to China Construction Bank. In 2021, we have paid RMB3.73 million to substantially
settle the labor arbitration cases with our former employees and we only have RMB 0.5 million ($0.08 million) remaining in severance payables
to them as of December 31, 2021. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made
a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We discontinued our petfood manufacturing segment
and the turnaround of our business depends, in part, on our ability to successfully generate revenue in the restaurant segment.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended
our production and normal business operations and we were involved in certain legal proceedings beginning in November 2019. The COVID-19
outbreak and spread further disrupted our business activities from the beginning of 2020 up to May 2020 when we resumed our business operations.
These factors led to significant decrease in our petfood sales. On October 31, 2021, we acquired 51% equity interests of Far Ling&#8217;s
Inc and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. This resulted in an increase of $0.6 million and $3.1 million
in food service revenue for the years ended December 31, 2021 and 2022, respectively. Although we reported a net income of approximately
$0.86 million for the year ended December 31, 2022, our revenues generated may not be sufficient to support our future business operations
given the uncertainty that our business operations may be further affected by various pending lawsuits, legal claims, proceedings, arbitrations
and bankruptcy proceedings.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We discontinued our petfood business during the
first quarter of 2023. Our decision to discontinue our petfood business was driven largely by the following factors: the increase in cost
of raw materials required for production;&#160;accepting less orders in an attempt to avoid unprofitable orders and customers;&#160;decreased
demand for sales of petfood; its historical performance and expected business forecasts in the absence of further capital investments
and opportunity costs; and lawsuits and the closing of our manufacturing facilities.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our turnaround depends, in part, on our ability
to successfully introduce manage and acquire new restaurants. This, in turn, depends on our ability to predict and respond to evolving
consumer trends, demands and preferences. The management and acquisition of restaurants involves considerable costs. If we are not able
to effectively manage and acquire new restaurants that successfully generate revenue, we may not be able to grow and maintain our business
as anticipated, and our sales may decline and our business, financial condition and results of operations may be materially adversely
affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 12; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We depend on our key personnel, and our business
and growth prospects may be severely disrupted if we lose their services.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our future success depends heavily upon the continued
service of our key executives. We rely on their business, industry, financial and capital markets knowledge and experience. If our CEO
or CFO became unable or unwilling to continue in their present positions, we may not be able to replace them easily, our business may
be significantly disrupted and our financial condition and results of operations may be materially adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We do not maintain key man life insurance on
any of our senior management or key personnel.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The loss of any one of them would have a material
adverse effect on our business and operations. Competition for senior management and our other key personnel is intense and the pool of
suitable candidates is limited. We may be unable to locate a suitable replacement for any senior management or key personnel that we lose.
In addition, if any member of our senior management or key personnel joins a competitor or forms a competing company, they may compete
with us for customers, business partners and other key professionals and staff members of our Company. In addition, we compete for qualified
personnel with other companies, and we face competition in attracting skilled personnel and retaining the members of our senior management
team. These personnel possess technical and business capabilities which are difficult to replace. There is intense competition for experienced
senior management with technical and industry expertise in our industry, and we may not be able to retain our key personnel. Intense competition
for these personnel could cause our compensation costs to increase, which could have a material adverse effect on our results of operations.
Our future success and ability to grow our business will depend in part on the continued service of these individuals and our ability
to identify, hire and retain additional qualified personnel. If we are unable to attract and retain qualified employees, we may be unable
to meet our business and financial goals.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>If our products are alleged to cause injury
or illness or fail to comply with PRC or other applicable governmental regulations, we may need to recall our products and may experience
product liability claims.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our products may be exposed to product recalls,
including voluntary recalls or withdrawals, if they are alleged to pose a risk of injury or illness, or if they are alleged to have been
mislabeled, misbranded or adulterated or to otherwise be in violation of governmental regulations. We may also voluntarily recall or withdraw
products in order to protect our brand or reputation if we determine that they do not meet our standards, whether for palatability, appearance
or otherwise. If there is any future product recall or withdrawal, it could result in substantial and unexpected expenditures, destruction
of product inventory, damage to our reputation and lost sales due to the unavailability of the product for a period of time, and our business,
financial condition and results of operations may be materially adversely affected. We also may be subject to claims if the consumption
or use of our products is alleged to cause injury or illness. If there is a judgment against us or a settlement agreement related to a
claim, our business, financial condition and results of operations may be materially adversely affected.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to the Restaurant Segment </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The ongoing COVID-19 pandemic may continue
to adversely affect, our operations, financial condition, liquidity and financial results.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In response to the Covid-19 outbreak, many state
and local authorities had mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor
dining capacities. COVID-19 and the government measures taken to control it have caused a significant disruption to our business of Bo
Lings. As of the filing date of this Annual Report on Form 20-F, we had Bo Lings operating at 100% indoor dining capacity. However, there
can be no assurance that developments with respect to the COVD-19 pandemic and government measures taken to control it will not adversely
affect our operations and financial results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Bo Lings restaurant is located in Missouri.
As a result of our concentration in this market, we may be disproportionately affected by any increased severity of the pandemic and heightened
regulatory measures in Missouri compared to other chain restaurants with a broader national footprint.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 13; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A prolonged occurrence of COVID-19 may result
in restaurant re-closures, prohibition on indoor dining, and further restrictions, including possible travel restrictions and additional
restrictions on the restaurant industry. Our efforts to mitigate the effect of COVID-19 on our business or the economic downturn may be
unsuccessful, and we may not be able to commence operations in a timeframe that is sufficient or otherwise take actions in response to
developments with regard to the pandemic. The future sales levels of Bo Lings and our ability to implement our growth strategy remain
highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Social distancing measures and changes in consumer
behavior as a result of COVID-19 have affected and may materially and adversely affect Bo Lings.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Social distancing measures due to the COVID-19
pandemic impacted our operation of Bo Lings, as customers choose to avoid public gathering places, and additional social distancing actions
could result in a loss of sales and profit. Additionally, consumer behavior has changed and may fundamentally change as a result of COVID-19
in both the near and long term and such change may pose significant challenges to our operation of Bo Lings. Traffic in restaurants, including
Bo Lings, has been affected and may be materially and adversely affected with more consumers relying on off-premises orders. Consumer
spending has also been and may continue to be negatively impacted by general macroeconomic conditions and consumer confidence, including
the impacts of economic downturns, resulting from the COVID-19 pandemic. All of this could materially and adversely impact sales at Bo
Lings and our growth prospects. We have made adjustments to our operation of Bo Lings due to the COVID-19 pandemic and may have to re-design
our service and business models to accommodate consumers&#8217; changed behavior patterns. Any such attempted effort could result in capital
expenditures, business disruption and lower margin sales, and may not be successful in growing our profitability.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Our restaurant base is geographically concentrated
in Missouri, and we could be negatively affected by conditions specific to this state.</b></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bo Lings is located in Missouri. Adverse changes
in demographic, unemployment, economic, regulatory or weather conditions in Missouri have had, and may continue to have, material adverse
effects on our business, financial condition or results of operations. As a result of our concentration in this market, we have been,
and in the future may be, disproportionately affected by adverse conditions in this market compared to other chain restaurants with a
broader national footprint.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Failure to preserve the value and relevance
of our brand could have an adverse impact on our financial results.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To be successful in the future, we believe we
must preserve, enhance and leverage the value of our brand, including corporate purpose, mission and values. Brand value is based in part
on consumer perceptions, which are affected by a variety of factors, including the nutritional content and preparation of our food, the
ingredients we use, the manner in which we source commodities and our general business practices, including the people practices at Bo
Lings. Consumer acceptance of our offerings is subject to change for a variety of reasons, and some changes can occur rapidly. For example,
nutritional, health, environmental and other scientific studies and conclusions, which constantly evolve and may have contradictory implications,
drive popular opinion, litigation and regulation (including initiatives intended to drive consumer behavior) in ways that affect the &#8220;informal
eating out&#8221; (&#8220;IEO&#8221;) segment or perceptions of our brand, generally or relative to available alternatives. Our business
could also be impacted by business incidents or practices, whether actual or perceived, particularly if they receive considerable publicity
or result in litigation, as well as by our position or perceived lack of position on environmental, social responsibility, public policy,
geopolitical and similar matters. Consumer perceptions may also be affected by adverse commentary from third parties, including through
social media or conventional media outlets, regarding the IEO segment or our brand, culture, operations, suppliers or franchisees. If
we are unsuccessful in addressing adverse commentary or perceptions, whether or not accurate, our brand and financial results may suffer.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 14; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>If we do not anticipate and address evolving
consumer preferences and effectively execute our pricing, promotional and marketing plans, our business could suffer.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our continued success depends on our ability to
build upon our historic strengths and competitive advantages. In order to do so, we need to anticipate and respond effectively to continuously
shifting consumer demographics and trends in food sourcing, food preparation, food offerings, and consumer behavior and preferences, including
with respect to environmental and social responsibility matters, in the IEO segment. If we are not able to predict, or quickly and effectively
respond to, these changes, or if our competitors predict or respond more effectively, our financial results could be adversely impacted.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to build upon our strengths and advantages
also depends on the impact of our pricing, promotional and marketing plans, and the ability to adjust these plans to respond quickly and
effectively to evolving customer behavior and preferences, as well as shifting economic and competitive conditions. Existing or future
pricing strategies and marketing plans, as well as the value proposition they represent, are expected to continue to be important components
of our business strategy. However, they may not be successful, or may not be as successful as the efforts of our competitors, which could
negatively impact sales, guest counts and market share.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We face intense competition in our market,
which could hurt our business.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We compete primarily in the IEO segment, which
is highly competitive. We also face sustained, intense competition from traditional, fast casual and other competitors, which may include
many non-traditional market participants such as convenience stores, grocery stores, coffee shops and online retailers. We expect our
environment to continue to be highly competitive, and our results in any particular reporting period may be impacted by a contracting
IEO segment or by new or continuing actions, product offerings or consolidation of our competitors and third-party partners, which may
have a short- or long-term impact on our results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We compete on the basis of product choice, quality,
affordability, service and location. In particular, we believe our ability to compete successfully in the current market environment depends
on our ability to improve existing products, successfully develop and introduce new products, price our products appropriately, deliver
a relevant customer experience, manage the complexity of our restaurant operations, manage our investments in technology and modernization,
and respond effectively to our competitors&#8217; actions or offerings or to unforeseen disruptive actions. There can be no assurance
these strategies will be effective, and some strategies may be effective at improving some metrics while adversely affecting other metrics,
which could have the overall effect of harming our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-style: normal"><b>Food safety
and foodborne illness concerns may have an adverse effect on our reputation and business. </b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Foodborne illnesses, such as E. coli, hepatitis
A and salmonella, may occur within our system from time to time. In addition, food safety issues such as food tampering, contamination
and adulteration occur or may occur within our system from time to time. Any report or publicity linking us, our competitors, our restaurant,
to instances of foodborne illness or food safety issues could adversely affect our brand and reputation as well as our revenues and profits
and possibly lead to product liability claims, litigation and damages. If a customer of our restaurant becomes ill from foodborne illnesses
or as a result of food safety issues, it may be temporarily closed, which would decrease our revenues.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 15; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><span style="text-decoration:underline">Risks Related to Doing Business in China</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;&#160;</b></p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Because of our corporate structure, we as well
as the investors are subject to unique risks due to uncertainty of the interpretation and the application of the PRC laws and regulations,
including but not limited to limitation regulatory review of overseas listing of PRC companies through a special purpose vehicle. We are
also subject to the risks of uncertainty about any future actions of the PRC government in this regard. We may also be subject to sanctions
imposed by PRC regulatory agencies including Chinese Securities Regulatory Commission (&#8220;CSRC&#8221;) if we fail to comply with their
rules and regulations. Adverse changes in political, economic and other policies of the Chinese government could have a material adverse
effect on the overall economic growth of China, which could materially and adversely affect the growth of our business and our competitive
position.</b></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our PRC subsidiaries are located in China. Accordingly,
our business, financial condition, results of operations and prospects are affected significantly by economic, political and legal developments
in China. China&#8217;s economy differs from the economies of most developed countries in many respects, including with respect to the
amount of government involvement, level of development, growth rate, control of foreign exchange, and allocation of resources. The PRC
government exercises significant control over China&#8217;s economic growth through strategical allocation of resources, controlling the
payment of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries
or companies. While the Chinese economy has experienced significant growth in the past decades, growth has been uneven, both geographically
and among various sectors of the economy. The growth of the Chinese economy may not continue at a rate experienced in the past, and the
impact of COVID-19 on the Chinese economy may continue. Any prolonged slowdown in the Chinese economy may reduce the demand for our services
and materially and adversely affect our business and results of operations. Furthermore, any adverse change in the economic conditions
in China, in policies of the PRC government or in laws and regulations in China could have a material adverse effect on the overall economic
growth of China and market demand for our products and services. Such developments could adversely affect our businesses, lead to reduction
in demand for our products and services and adversely affect our competitive position.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Uncertainties with respect to the PRC legal
system could have a material adverse effect on us.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC legal system is based on written statutes.
Prior court decisions may be cited for reference but have limited precedential value. We conduct some of our business through our PRC
Subsidiaries, and therefore these subsidiaries are generally subject to laws and regulations applicable to foreign investment in China.
However, since these laws and regulations are relatively new and the PRC legal system continues to rapidly evolve, the interpretations
of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involves uncertainties,
which may limit legal protections available to us. Recently, the General Office of the Central Committee of the Communist Party of China
and the General Office of the State Council jointly issued the &#8220;Opinions on Severely Cracking Down on Illegal Securities Activities
According to Law,&#8221; or the Opinions, which was made available to the public on July 6, 2021. The Opinions emphasized the need to
strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas listings by
Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems will be taken to deal with the
risks and incidents of China-concept overseas listed companies, and cybersecurity and data privacy protection requirements, etc. The Opinions
and any related implementing rules to be enacted may subject us to compliance requirement in the future. In addition, some regulatory
requirements issued by certain PRC government authorities may not be consistently applied by other government authorities (including local
government authorities), thus making strict compliance with all regulatory requirements impractical, or in some circumstances impossible.
For example, we may have to resort to administrative and court proceedings to enforce the legal protection that we enjoy either by law
or contract. However, since PRC administrative and court authorities have discretion in interpreting and implementing statutory and contractual
terms, it may be more difficult to predict the outcome of administrative and court proceedings and the level of legal protection we enjoy
than in more developed legal systems. These uncertainties may impede our ability to enforce the contracts we have entered into with our
business partners, customers and suppliers. In addition, such uncertainties, including any inability to enforce our contracts, together
with any development or interpretation of PRC law that is adverse to us, could materially and adversely affect our business and operations.
Furthermore, intellectual property rights and confidentiality protections in China may not be as effective as in the United States or
other more developed countries. We cannot predict the effect of future developments in the PRC legal system, including the promulgation
of new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national
laws. These uncertainties could limit the legal protections available to us and other foreign investors, including you. In addition, any
litigation in China may be protracted and result in substantial costs and diversion of our resources and management attention.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 16; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The Chinese government exerts substantial influence
over the manner in which we must conduct our business activities and may intervene or influence our operations at any time, which could
result in a material change in our operations and the value of our Common Shares.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to securities regulation, data protection,
cybersecurity and mergers and acquisitions and other matters. The central or local governments of these jurisdictions may impose new,
stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to
ensure our compliance with such regulations or interpretations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Government actions in the future could significantly
affect economic conditions in China or particular regions thereof and could require us to materially change our operating activities or
divest ourselves of any interests we hold in Chinese assets. Our business may be subject to various government and regulatory interference
in the provinces in which we operate. We may incur increased costs necessary to comply with existing and newly adopted laws and regulations
or penalties for any failure to comply. Our operations could be adversely affected, directly or indirectly, by existing or future laws
and regulations relating to our business or industry.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Given recent statements by the Chinese government
indicating an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based
issuers, any such action could significantly limit or completely hinder our ability to offer or continue to offer securities to investors
and cause the value of such securities to significantly decline or become worthless.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Recently, the General Office of the Central Committee
of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severely Cracking Down on Illegal
Securities Activities According to Law, or the Opinions, which was made available to the public on July 6, 2021. The Opinions emphasized
the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas
listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems, will be taken to
deal with the risks and incidents of China-concept overseas listed companies. As of the date of this annual report, we have not received
any inquiry, notice, warning, or sanctions from PRC government authorities in connection with the Opinions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 10, 2021, the Standing Committee of the
National People&#8217;s Congress of China, or the SCNPC, promulgated the PRC Data Security Law, which took effect in September 2021. The
PRC Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data activities, and introduces
a data classification and hierarchical protection system based on the importance of data in economic and social development, and the degree
of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when
such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC Data Security Law also provides for a national security
review procedure for data activities that may affect national security and imposes export restrictions on certain data an information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 17; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In early July 2021, regulatory authorities in
China launched cybersecurity investigations with regard to several China-based companies that are listed in the United States. The Chinese
cybersecurity regulator announced on July 2 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered
that the company&#8217;s app be removed from smartphone app stores. On July 5, 2021, the Chinese cybersecurity regulator launched the
same investigation on two other Internet platforms, China&#8217;s Full Truck Alliance of Full Truck Alliance Co. Ltd. (NYSE: YMM) and
Boss of KANZHUN LIMITED (Nasdaq: BZ). On July 24, 2021, the General Office of the Communist Party of China Central Committee and the General
Office of the State Council jointly released the Guidelines for Further Easing the Burden of Excessive Homework and Off-campus Tutoring
for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions, franchise
development, and variable interest entities are banned from this sector.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 14, 2021, the Cyberspace Administration
of China (&#8220;CAC&#8221;) released the Regulations on the Network Data Security Management (Draft for Comments), or the Data Security
Management Regulations Draft, to solicit public opinion and comments. Pursuant to the Data Security Management Regulations Draft, data
processor holding more than one million users/users&#8217; individual information shall be subject to cybersecurity review before listing
abroad. Data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision, disclosure,
or deletion of data. According to the latest amended Cybersecurity Review Measures, which was promulgated on December 28, 2021, and became
effective on February 15, 2022 and replace the Cybersecurity Review Measures promulgated on April 13, 2020, an online platform operator
holding more than one million users/users&#8217; individual information shall be subject to cybersecurity review before listing abroad.
Since the Cybersecurity Review Measures is new, the implementation and interpretation thereof is not yet clear. As of the date of this
annual report, we have not been informed by any PRC governmental authority of any requirement that we file for approval<b>.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 17, 2021, the State Council promulgated
the Regulations on the Protection of the Security of Critical Information Infrastructure, or the Regulations, which took effect on September
1, 2021. The Regulations supplement and specify the provisions on the security of critical information infrastructure as stated in the
Cybersecurity Review Measures. The Regulations provide, among others, that protection department of certain industry or sector shall notify
the operator of the critical information infrastructure in time after the identification of certain critical information infrastructure.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 20, 2021, the SCNPC promulgated the
Personal Information Protection Law of the PRC, or the Personal Information Protection Law, which took effect in November 2021. As the
first systematic and comprehensive law specifically for the protection of personal information in the PRC, the Personal Information Protection
Law provides, among others, that (i) an individual&#8217;s consent shall be obtained to use sensitive personal information, such as biometric
characteristics and individual location tracking, (ii) personal information operators using sensitive personal information shall notify
individuals of the necessity of such use and impact on the individual&#8217;s rights, and (iii) where personal information operators reject
an individual&#8217;s request to exercise his or her rights, the individual may file a lawsuit with a People&#8217;s Court. Given that
the above mentioned newly promulgated laws, regulations and policies were recently promulgated or issued, and have not yet taken effect
(as applicable), their interpretation, application and enforcement are subject to substantial uncertainties.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Draft rules for China-based companies seeking
for securities offerings in foreign stock markets was released by the CSRC for public consultation. While such rules have not yet come
into effect, the Chinese government may exert more oversight and control over overseas public offerings conducted by China-based issuers,
which could significantly limit or completely hinder our ability to offer or continue to offer our Common Shares to investors and could
cause the value of our Common Shares to significantly decline or become worthless.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 24, 2021, the CSRC and relevant departments
of the State Council published the Draft Rules Regarding Overseas Listings, which aim to regulate overseas securities offerings and listings
by China-based companies, are available for public consultation. The Draft Rules Regarding Overseas Listing aim to lay out the filing
regulation arrangement for both direct and indirect overseas listing and clarify the determination criteria for indirect overseas listing
in overseas markers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 18; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Draft Rules Regarding Overseas Listing, among
other things, stipulate that, after making initial applications with overseas stock markets for initial public offerings or listings,
all China-based companies shall file with the CSRC within three working days. The required filing materials with the CSRC include (without
limitation): (i) record-filing reports and related undertakings, (ii) compliance certificates, filing or approval documents from the primary
regulator of the applicants&#8217; businesses (if applicable), (iii) security assessment opinions issued by related departments (if applicable),
(iv) PRC legal opinions, and (v) prospectus. In addition, overseas offerings and listings may be prohibited for such China-based companies
when any of the following applies: (1) if the intended securities offerings and listings are specifically prohibited by the laws, regulations
or provision of the PRC; (2) if the intended securities offerings and listings may constitute a threat to, or endanger national security
as reviewed and determined by competent authorities under the State Council in accordance with laws; (3) if there are material ownership
disputes over applicants&#8217; equity interests, major assets, core technologies, etc.; (4) if, in the past three years, applicants&#8217;
domestic enterprises, controlling shareholders or de facto controllers have committed corruption, bribery, embezzlement, misappropriation
of property, or other criminal offenses disruptive to the order of the socialist market economy, or are currently under judicial investigation
for suspicion of criminal offenses, or are under investigation for suspicion of major violations; (5) if, in the past three years, any
directors, supervisors, or senior executives of applicants have been subject to administrative punishments for severe violations, or are
currently under judicial investigation for suspicion of criminal offenses, or are under investigation for suspicion of major violations;
(6) other circumstances as prescribed by the State Council. The Draft Administrative Provisions further stipulate that a fine between
RMB 1 million and RMB 10 million may be imposed if an applicant fails to fulfill the filing requirements with the CSRC or conducts an
overseas offering or listing in violation of the Draft Rules Regarding Overseas Listings, and in cases of severe violations, a parallel
order to suspend relevant businesses or halt operations for rectification may be issued, and relevant business permits or operational
license revoked.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Draft Rules Regarding Overseas Listings, if
enacted, may subject us to additional compliance requirements in the future, and though we believe that none of the situations that would
clearly prohibit overseas listing and offering applies to us, we cannot assure you that we will be able to receive clearance of such filing
requirements in a timely manner, or at all. There is also the possibility that we may not be able to obtain or maintain such approval
or that we inadvertently concluded that such approval was not required. If prior CSRC approval was required while we inadvertently concluded
that such approval was not required or if applicable laws and regulations or the interpretation of such were modified to require us to
obtain the CSRC approval in the future, we may face regulatory actions or other sanctions from the CSRC or other Chinese regulatory authorities.
These authorities may impose fines and penalties upon our operations in China, limit our operating privileges in China, delay or restrict
the repatriation of the proceeds from offerings into China, or take other actions that could have a material adverse effect upon our business,
financial condition, results of operations, reputation and prospects, as well as the trading price of our Common Shares. Any failure of
us to fully comply with new regulatory requirements may significantly limit or completely hinder our ability to offer or continue to offer
the Common Shares, cause significant disruption to our business operations, severely damage our reputation, materially and adversely affect
our financial condition and results of operations, and cause the Common Shares to significantly decline in value or become worthless.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>CSRC and other Chinese government agencies
may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, especially
those in the technology field. Additional compliance procedures may be required in connection offerings, and, if required, we cannot predict
whether we will be able to obtain such approval. If we are required to obtain PRC governmental permissions to commence the sale of securities,
we will not commence offerings until we obtain such permissions. As a result, we face uncertainty about future actions by the PRC government
that could significantly affect our ability to offer or continue to offer securities to investors and cause the value of our securities
to significantly decline or be worthless.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 6, 2021, the General Office of the Communist
Party of China Central Committee and the General Office of the State Council jointly issued a document to crack down on illegal activities
in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant
governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over
China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws.
Since this document is relatively new, uncertainties still exist in relation to how soon legislative or administrative regulation making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated,
if any, and the potential impact such modified or new laws and regulations will have on our future business, results of operations, and
the value of our securities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 19; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, Chinese government continues to exert
more oversight and control over Chinese technology firms. On July 2, 2021, Chinese cybersecurity regulator announced, that it had begun
an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company&#8217;s application be removed from smartphone
application stores. On July 5, 2021, the Chinese cybersecurity regulator launched the same investigation on two other Internet platforms,
China&#8217;s Full Truck Alliance of Full Truck Alliance Co. Ltd. (NYSE: YMM) and Boss of KANZHUN LIMITED (Nasdaq: BZ).</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Therefore, CSRC and other Chinese government agencies
may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, especially
those in the technology field. As of the date of this annual report, we have not received any requirement to obtain approval of CSRC to
list on U.S. exchanges. Further, however, given the current regulatory environment in the PRC, we and our PRC subsidiaries are still subject
to the uncertainty of interpretation and enforcement of the rules and regulations in the PRC, which can change quickly with little advance
notice, and any future actions of the PRC authorities, additional compliance procedures may be required in connection with this offering
and our business operations. As a result, we face uncertainty about future actions by the PRC government that could significantly affect
our ability to offer or continue to offer securities to investors and cause the value of our Common Shares to significantly decline or
be worthless.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We or our PRC subsidiaries may be subject to PRC
laws relating to the use, sharing, retention, security and transfer of confidential and private information, such as personal information
and other data. These laws continue to develop, and the PRC government may adopt other rules and restrictions in the future. Non-compliance
could result in penalties or other significant legal liabilities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Cybersecurity Law, which was adopted by the
National People&#8217;s Congress on November 7, 2016 and came into force on June 1, 2017, and the Cybersecurity Review Measures, or the
&#8220;Review Measures,&#8221; which were promulgated on April 13, 2020, amended on December 28, 2021 and became effective on February
15, 2022, provide that personal information and important data collected and generated by a critical information infrastructure operator
in the course of its operations in China must be stored in China, and if a critical information infrastructure operator purchases internet
products and services that affect or may affect national security, it should be subject to cybersecurity review by the CAC. In addition,
a cybersecurity review is required where critical information infrastructure operators, or the &#8220;CIIOs,&#8221; purchase network-related
products and services, which products and services affect or may affect national security. Due to the lack of further interpretations,
the exact scope of what constitute a &#8220;CIIO&#8221; remains unclear. Further, the PRC government authorities may have wide discretion
in the interpretation and enforcement of these laws. In addition, Review Measures stipulates that an online platform operator holding
more than one million users/users&#8217; individual information shall be subject to cybersecurity review before listing abroad. Cybersecurity
Review Measures does not provide a definition of &#8220;online platform operator&#8221;, therefore, we cannot assure you that we will
not be deemed as an &#8220;online platform operator&#8221;. As of the date of this annual report, we or our PRC subsidiaries have not
received any notice from any authorities identifying us as a CIIO or requiring us to undertake a cybersecurity review by the CAC. Further,
as of the date of this annual report, we or our PRC subsidiaries have not been subject to any penalties, fines, suspensions, investigations
from any competent authorities for violation of the regulations or policies that have been issued by the CAC. On June 10, 2021, the Standing
Committee of the National People&#8217;s Congress promulgated the Data Security Law which took effect on September 1, 2021. The Data Security
Law requires that data shall not be collected by theft or other illegal means, and it also provides that a data classification and hierarchical
protection system shall be established. The data classification and hierarchical protection system protects data according to its importance
in economic and social development, and the damages it may cause to national security, public interests, or the legitimate rights and
interests of individuals and organizations if the data is falsified, damaged, disclosed, illegally obtained or illegally used, which protection
system is expected to be built by the state for data security in the near future. On November 14, 2021, CAC published the Regulations
on the Network Data Security Management (Draft for Comments), or the Data Security Management Regulations Draft to solicit public opinion
and comments. Under the Data Security Management Regulations Draft, which provides that an overseas initial public offering to be conducted
by a data processor processing the personal information of more than one million individuals shall apply for a cybersecurity review. Data
processor means an individual or organization that independently makes decisions on the purpose and manner of processing in data processing
activities, and data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision,
disclosure, or deletion of data. We may be deemed as a data processor under the Data Security Management Regulations Draft. However, the
Data Security Management Regulations Draft has not been formally adopted. It is uncertain when the final regulation will be issued and
take effect, how it will be enacted, interpreted or implemented, and whether it will affect us. There remains uncertainty as to how the
Review Measures and the Data Security Management Regulations Draft will be interpreted or implemented and whether the PRC regulatory agencies,
including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Review Measures
and the Data Security Regulations Draft. If any such new laws, regulations, rules, or implementation and interpretation come into effect,
we and our PRC subsidiaries expect to take all reasonable measures and actions to comply. We cannot assure you that PRC regulatory agencies,
including the CAC, would take the same view as we do, and there is no assurance that we and our PRC subsidiaries can fully or timely comply
with such laws should they be deemed applicable to our operations. Any cybersecurity review could also result in negative publicity with
respect to our company and diversion of our managerial and financial resources. There is no certainty as to how such review or prescribed
actions would impact our operations and we cannot guarantee that any clearance can be obtained or any actions that may be required for
our continued listing on the Nasdaq capital market and the offering as well can be taken in a timely manner, or at all.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 20; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, according to the Personal Information
Protection Law, where the purpose of the activity is to provide a product or service to that natural person located within China, such
activity shall comply with the Personal Information Protection Law. Further, the Data Security Law provides that where any data handling
activity carried out outside of the territory of China harms the national security, public interests, or the legitimate rights and interests
of citizens or organizations of China, legal liability shall be investigated in accordance with such law. However, the Personal Information
Protection Law and the Data Security Law are relatively new, there remains uncertainty as to how the laws will be interpreted or implemented
and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation
related to the two laws.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The regulatory requirements with respect to cybersecurity
and data privacy are constantly evolving and can be subject to varying interpretations, and significant changes, resulting in uncertainties
about the scope of our responsibilities in that regard. Failure to comply with the cybersecurity and data privacy requirements in a timely
manner, or at all, may subject us to government enforcement actions and investigations, fines, penalties, suspension, or disruption of
our PRC subsidiaries&#8217; operations, among other things.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We may be liable for improper use or appropriation
of personal information provided by our customers.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business can potentially involve collecting
and retaining certain internal and customer data. We also maintain information about various aspects of our operations as well as regarding
our employees. The integrity and protection of our customer, employee and company data is critical to our business. Our customers and
employees expect that we will adequately protect their personal information. We are required by applicable laws to keep strictly confidential
the personal information that we collect, and to take adequate security measures to safeguard such information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC Criminal Law, as amended by its Amendment
7 (effective on February 28, 2009) and Amendment 9 (effective on November 1, 2015), prohibits institutions, companies, and their employees
from selling or otherwise illegally disclosing a citizen&#8217;s personal information obtained in performing duties or providing services
or obtaining such information through theft or other illegal ways. On November 7, 2016, the SCNPC issued the Cyber Security Law of the
PRC, or Cyber Security Law, which became effective on June 1, 2017. Pursuant to the Cyber Security Law, network operators must not, without
users&#8217; consent, collect their personal information, and may only collect users&#8217; personal information necessary to provide
their services. Providers are also obliged to provide security maintenance for their products and services and shall comply with provisions
regarding the protection of personal information as stipulated under the relevant laws and regulations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Civil Code of the PRC (issued by the PRC National
People&#8217;s Congress on May 28, 2020 and effective from January 1, 2021) provides legal basis for privacy and personal information
infringement claims under the Chinese civil laws. PRC regulators, including the CAC, the Ministry of Industry and Information Technology,
or MIIT, and the Ministry of Public Security, have been increasingly focused on regulation in data security and data protection.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC regulatory requirements regarding cybersecurity
are evolving. For instance, various regulatory bodies in China, including the CAC, the Ministry of Public Security and the State Administration
for Market Regulation, or the SAMR (formerly known as State Administration for Industry and Commerce, or the SAIC), have enforced data
privacy and protection laws and regulations with varying and evolving standards and interpretations. In April 2020, the Chinese government
promulgated Cybersecurity Review Measures, which came into effect on June 1, 2020, was amended on December 28, 2021, and became effective
on February 15, 2022. According to the Cybersecurity Review Measures, (i) operators of critical information infrastructure must pass a
cybersecurity review when purchasing network products and services which do or may affect national security; (ii) online platform operators
who are engaged in data processing are also subject to the regulatory scope; (iii) the CSRC is included as one of the regulatory authorities
for purposes of jointly establishing the state cybersecurity review working mechanism; (iv) online platform operators holding more than
one million users/users&#8217; individual information and seeking a listing outside China shall file for cybersecurity review; and (v)
the risks of core data, material data or large amounts of personal information being stolen, leaked, destroyed, damaged, illegally used
or illegally transmitted to overseas parties and the risks of critical information infrastructure, core data, material data or large amounts
of personal information being influenced, controlled or used maliciously shall be collectively taken into consideration during the cybersecurity
review process.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain internet platforms in China have been
reportedly subject to heightened regulatory scrutiny in relation to cybersecurity matters. As of the date of this prospectus supplement,
we and our PRC subsidiaries have not been informed by any PRC governmental authority of any requirement that we file for a cybersecurity
review. However, if any of us is deemed to be a critical information infrastructure operator or a company that is engaged in data processing
and holds personal information of more than one million users, we could be subject to PRC cybersecurity review.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 21; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date hereof, we are of the view that
we and our PRC subsidiaries are in compliance with the applicable PRC laws and regulations governing the data privacy and personal information
in all material respects, including the data privacy and personal information requirements of the CAC, and we and our PRC subsidiaries
have not received any complaints from any third party, or been investigated or punished by any PRC competent authority in relation to
data privacy and personal information protection. However, as there remains significant uncertainty in the interpretation and enforcement
of relevant PRC cybersecurity laws and regulations, we or our PRC subsidiaries could be subject to cybersecurity review, and if so, we
may not be able to pass such review. In addition, we or our PRC subsidiaries could become subject to enhanced cybersecurity review or
investigations launched by PRC regulators in the future. Any failure or delay in the completion of the cybersecurity review procedures
or any other non-compliance with the related laws and regulations may result in fines or other penalties, including suspension of business,
website closure, removal of our app from the relevant app stores, and revocation of prerequisite licenses, as well as reputational damage
or legal proceedings or actions against us, which may have material adverse effect on our business, financial condition or results of
operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 10, 2021, the SCNPC promulgated the PRC
Data Security Law, which took effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities
and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance
of data in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate
rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The
PRC Data Security Law also provides for a national security review procedure for data activities that may affect national security and
imposes export restrictions on certain data an information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As uncertainties remain regarding the interpretation
and implementation of these laws and regulations, we cannot assure you that we and our PRC subsidiaries will comply with such regulations
in all respects and we or our PRC subsidiaries may be ordered to rectify or terminate any actions that are deemed illegal by regulatory
authorities. We or our PRC subsidiaries may also become subject to fines and/or other sanctions which may have material adverse effect
on our business, operations and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While we and our PRC subsidiaries take various
measures to comply with all applicable data privacy and protection laws and regulations, the current security measures and those of our
third-party service providers may not always be adequate for the protection of our customer, employee or company data. We or our PRC subsidiaries
may be a target for computer hackers, foreign governments or cyber terrorists in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unauthorized access to our proprietary internal
and customer data may be obtained through break-ins, sabotage, breach of our secure network by an unauthorized party, computer viruses,
computer denial-of-service attacks, employee theft or misuse, breach of the security of the networks of our third-party service providers,
or other misconduct. Because the techniques used by computer programmers who may attempt to penetrate and sabotage our proprietary internal
and customer data change frequently and may not be recognized until launched against a target, we may be unable to anticipate these techniques.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unauthorized access to our proprietary internal
and customer data may also be obtained through inadequate use of security controls. Any of such incidents may harm our reputation and
adversely affect our business and results of operations. In addition, we may be subject to negative publicity about our security and privacy
policies, systems, or measurements. Any failure to prevent or mitigate security breaches, cyber-attacks or other unauthorized access to
our systems or disclosure of our customers&#8217; data, including their personal information, could result in loss or misuse of such data,
interruptions to our service system, diminished customer experience, loss of customer confidence and trust, impairment of our technology
infrastructure, and harm our reputation and business, resulting in significant legal and financial exposure and potential lawsuits<b>.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Since our operations and some of our assets
are located in the PRC, shareholders may find it difficult to enforce a U.S. judgment against the assets of our company, our directors
and executive officers.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operations and some assets are located in
the PRC. In addition, most of our executive officers and directors are non-residents of the U.S., and substantially all the assets of
such persons are located outside the U.S. As a result, it could be difficult for investors to effect service of process in the U.S., or
to enforce a judgment obtained in the U.S. against us or any of these persons.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><!-- Field: Page; Sequence: 22; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We may be subject to PRC regulatory limitations
on merger and acquisition (M&amp;A) activities.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Foreign enterprises that engage in M&amp;A activities
inside and outside China are subject to different regulatory limitations under Chinese laws and regulations. The key regulations governing
such activities within PRC are Wholly Foreign-Owned Enterprise Law, the Interim Provisions on the Domestic Investment of Foreign-Funded
Enterprise, the Catalogue for the Guidance of Foreign Investment Industries (amended in 2017) and other relevant Chinese laws and regulations.
Under these laws and regulations, conducting M&amp;A in China requires that Tiandihui and Qingdao Tiandihui Pet Foodstuffs Co., Ltd are
wholly foreign-owned enterprises &#8220;WFOE&#8221; be profitable, and a timely application with and approval by of local regulatory agencies
of any proposed M&amp;A transaction. The M&amp;A activities outside the PRC are governed by several rules and regulations, including PRC
Administrative Measures on Offshore Investment, the Regulation on Foreign Exchange Administration of the PRC, the Notice of the State
Administration of Foreign Exchange on Issuing the Provisions on the Foreign Exchange Administration of the Overseas Direct Investment
of Domestic Institutions, the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Resident&#8217;s Financing and
Round-trip Investment Through Offshore Special Purpose Vehicles. Under these laws and regulations, our WFOE must get approval from the
PRC Ministry of Commerce or its branch offices for any proposed offshore M&amp;A transaction, and complete its foreign exchange registration.
We cannot offer any assurance that in the event we seek such approvals or registrations we will be able to secure them in a timely fashion
or will be able to receive them at all; negative feedback from the regulatory agencies or our failure to register such proposed transactions
may have material adverse impact on our business expansion and could materially affect our business operation and finance condition. In
addition, since approval and/or registration procedures required time to complete, these processes may cause additional delays to our
onshore or offshore M&amp;A projects, which, in turn, may have adverse impact on our business and operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Fluctuation of the Renminbi may indirectly
affect our financial condition by affecting the volume of cross-border money flow.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The value of the RMB fluctuates and is subject
to changes in the PRC&#8217;s political and economic conditions. We do not currently engage in hedging activities to protect against foreign
currency risks. Even if we choose to engage in such hedging activities, we may not be able to do so effectively. Future movements in the
exchange rate of the RMB could adversely affect our financial condition as we may suffer financial losses when transferring money raised
outside of China into the country or paying vendors for services performed outside of China. The value of the Renminbi against the U.S.
dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions. On July
21, 2005, the PRC government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar. Under the new policy,
the Renminbi is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. This change in
policy has resulted in an appreciation of the Renminbi against the U.S. dollar. While the international reaction to the Renminbi revaluation
has generally been positive, there remains international pressure on the PRC government to adopt an even more flexible currency policy,
which could result in a further and more rapid appreciation of the Renminbi against the U.S. dollar. Any material revaluation of Renminbi
may materially and adversely affect our cash flows, revenues, earnings and financial position, and the value of, and any dividends payable
on, our common shares in U.S. dollars. For example, an appreciation of Renminbi against the U.S. dollar would make any new Renminbi denominated
investments or expenditures more costly to us, to the extent that we need to convert U.S. dollars into Renminbi for such purposes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>If any dividend is declared in the future and
paid in a foreign currency, you may be taxed on a larger amount in U.S. dollars than the U.S. dollar amount that you will actually ultimately
receive.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If you are a United States holder, you will be
taxed on the U.S. dollar value of your dividends, if any, at the time you receive them, even if you actually receive a smaller amount
of U.S. dollars when the payment is in fact converted into U.S. dollars. Specifically, if a dividend is declared and paid in a foreign
currency, the amount of the dividend distribution that you must include in your income as a U.S. holder will be the U.S. dollar value
of the payments made in the foreign currency, determined at the spot rate of the foreign currency to the U.S. dollar on the date the dividend
distribution is includible in your income, regardless of whether the payment is in fact converted into U.S. dollars. Thus, if the value
of the foreign currency decreases before you actually convert the currency into U.S. dollars, you will be taxed on a larger amount in
U.S. dollars than the U.S. dollar amount that you will actually ultimately receive.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 23; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We may become a passive foreign investment
company, which could result in adverse U.S. tax consequences to U.S. investors.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on the nature of our business activities,
we may be classified as a passive foreign investment company (&#8220;PFIC&#8221;), by the U.S. Internal Revenue Service (&#8220;IRS&#8221;),
for U.S. federal income tax purposes. Such characterization could result in adverse U.S. tax consequences to you if you are a U.S. investor.
For example, if we are a PFIC, a U.S. investor will become subject to burdensome reporting requirements. The determination of whether
or not we are a PFIC is made on an annual basis and will depend on the composition of our income and assets from time to time. Specifically,
we will be classified as a PFIC for U.S. tax purposes if either:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">75% or more of our gross income in a taxable year is passive income; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the average percentage of our assets by value in a taxable year that produce or are held for the production of passive income (which includes cash) is at least 50%.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The calculation of the value of our assets is
based, in part, on the then market value of our common shares, which is subject to change. We cannot assure that we will not be a PFIC
for any taxable year.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Introduction of new laws or changes to existing
laws by the PRC government may adversely affect our business.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC legal system is a codified legal system
made up of written laws, regulations, circulars, administrative directives and internal guidelines. Unlike common law jurisdictions such
as the U.S., decided cases (which may be taken as reference) do not form part of the legal structure of the PRC and thus have no binding
effect. Furthermore, in line with its transformation from a centrally planned economy to a more market-oriented economy, the PRC government
is still in the process of developing a comprehensive set of laws and regulations. As the legal system in the PRC is still evolving, laws
and regulations or their interpretation may be subject to further changes. Such uncertainty and prospective changes to the PRC legal system
could adversely affect our results of operations and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Governmental control of currency conversion
may affect the value of your investment.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC government imposes controls on the convertibility
of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of the PRC, which may take as long as six
months in the ordinary course. We receive the majority of our revenues in Renminbi. Under our current corporate structure, our income
is derived from payments from WFOE. The October 8, 2016 Provisional Measures for Filling Administration of Establishment and Changes of
Foreign-Investment Enterprise (the &#8220;Establishment and Changes Provision&#8221;) promulgated by the PRC Ministry of Commerce and
was amended on July 30, 2017, regulates the recordation procedures with respect to the establishment and changes of a foreign-invested
enterprise which do not fall within the scope of special administration measures for foreign investment admission as stipulated by the
state; for those entities that do fall within the regulatory reach of special administration measures must go through approval procedures
according to relevant laws and regulations governing foreign investment. We do not believe that such measures will have any impact on
our income derived from payment from our WFOE because:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">We do not fall within the scope of special access administrative measures for foreign investment admission as stipulated by the state, and therefore are not required to go through approval procedures.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 24; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The Establishment and Changes Provision regulates the recordation procedures relating to the establishment and changes of a foreign-invested enterprise, which including but not limited to: (i) the changes of company name, registered address, duration of operation, business scope, registered capital, total investment, shareholders, merger, division and termination of the enterprise; and (ii) the corporate name change, domicile or place of incorporation, subscribed capital, investment period. Based on the foregoing and our current corporate structure, our income is derived from payment from our WFOE, but the Establishment and Changes Provisions do not regulate our origin of income or dividend policy, and therefore will not have any impact on our dividend distribution.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shortages in the availability of foreign currency
may restrict the ability of WFOE to remit sufficient foreign currency to pay dividends or other payments to us, or otherwise satisfy their
foreign currency denominated obligations. Under existing PRC foreign exchange regulations, payments of current account items, including
profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior
approval from the PRC SAFE by complying with certain procedural requirements. However, approval from appropriate PRC government authorities
is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment
of bank loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign
currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currency
to satisfy our currency demands, we may not be able to pay dividends in foreign currencies to our shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>PRC&#8217;s labor law restricts our ability
to reduce our workforce in the PRC in the event of an economic downturn and may increase our production costs.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2007, the National People&#8217;s Congress
of the PRC enacted new labor law legislation called the Labor Contract Law, which became effective on January 1, 2008 and was amended
on December 28, 2012, to clarify certain details in connection with the implementation of the Labor Contract Law, the PRC State Council
promulgated the Implementing Rules for the Labor Contract Law on September 18, 2008, which came into effect immediately (collectively
as &#8220;new laws&#8221;). The legislation formalized workers&#8217; rights concerning overtime hours, pensions, layoffs, employment
contracts and the role of trade unions. Considered one of the strictest labor laws in the world, among other things, these new laws provide
for specific standards and procedures for the termination of an employment contract and places the burden of proof on the employer. In
addition, the new laws require the payment of a statutory severance pay upon the termination of an employment contract in most cases,
including the case of the expiration of a fixed-term employment contract. Further, the new laws require an employer to conclude an &#8220;employment
contract without a fixed-term&#8221; with any employee who either has worked for the same employer for 10 consecutive years or more or
has had two consecutive fixed-term contracts with the same employer. An &#8220;employment contract without a fixed term&#8221; can no
longer be terminated on the ground of the expiration of the contract, although it can still be terminated pursuant to the standards and
procedures set forth under the new laws. Because of the lack of precedent for the enforcement of such a law, the standards and procedures
set forth under the new laws in relation to the termination of an employment contract have raised concerns among foreign investment enterprises
in the PRC that such an &#8220;employment contract without a fixed term&#8221; might in fact become a &#8220;lifetime, permanent employment
contract.&#8221; Finally, under the new laws, downsizing of either more than 20 people or more than 10% of the workforce may occur only
under specified circumstances, such as a restructuring undertaken pursuant to the PRC&#8217;s Enterprise Bankruptcy Law, or where a company
suffers serious difficulties in production and/or business operations, or where there has been a material change in the objective economic
circumstances relied upon by the parties at the time of the conclusion of the employment contract, thereby making the performance of such
employment contract not possible. To date, there has been very little guidance or precedent as to how such specified circumstances for
downsizing will be interpreted and enforced by the relevant PRC authorities. All of our employees working for us exclusively within the
PRC are covered by the new laws and thus, our ability to adjust the size of our operations when necessary in periods of recession or less
severe economic downturns may be curtailed. Accordingly, if we face future periods of decline in business activity generally or adverse
economic periods specific to our business, these new laws can be expected to exacerbate the adverse effect of the economic environment
on our results of operations and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><!-- Field: Page; Sequence: 25; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Changes in PRC&#8217;s political and economic
policies could harm our business.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our results of operations, financial condition
and prospects are subject to economic, political and legal developments in the PRC. China&#8217;s economy differs from the economies of
most developed countries in many respects, including with respect to the amount of government involvement, level of development, growth
rate, and control of foreign exchange and allocation of resources. The PRC economy has historically been a planned economy subject to
governmental plans and quotas and has, in certain aspects, been transitioning to a more market-oriented economy. Although we believe that
the economic reform and the macroeconomic measures adopted by the PRC government have had a positive effect on the economic development
of PRC, we cannot predict the future direction of these economic reforms or the effects these measures may have on our business, financial
position or results of operations. In addition, the PRC economy differs from the economies of most countries belonging to the Organization
for Economic Cooperation and Development (&#8220;OECD&#8221;). These differences include, without limitation:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">economic structure;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">level of government involvement in the economy;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">level of development;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">level of capital reinvestment;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">control of foreign exchange;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">methods of allocating resources; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">balance of payments position.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of these differences, our business
may not develop in the same way or at the same rate as might be expected if the PRC economy were similar to those of the OECD member countries.
Since 1979, the Chinese government has promulgated many new laws and regulations covering general economic matters. Despite these efforts
to develop a legal system, the PRC&#8217;s system of laws is not yet complete. Even where adequate law exists in the PRC, enforcement
of existing laws or contracts based on existing law may be uncertain or sporadic, and it may be difficult to obtain swift and equitable
enforcement or to obtain enforcement of a judgment by a court of another jurisdiction. The relative inexperience of the PRC&#8217;s judiciary,
in many cases, creates additional uncertainty as to the outcome of any lawsuit. In addition, interpretation of statutes and regulations
may be subject to government policies reflecting domestic political changes. Our activities in the PRC will also be subject to administration
review and approval by various national and local agencies of the PRC&#8217;s government. Because of the changes occurring in the PRC&#8217;s
legal and regulatory structure, we may not be able to secure the requisite governmental approval for our activities. Although we have
obtained all required governmental approvals to operate our business as currently conducted, to the extent we are unable to obtain or
maintain required governmental approvals, the PRC government may, in its sole discretion, prohibit us from conducting our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>If relations between the United States and
China worsen, our share price may decrease and we may have difficulty accessing U.S. capital markets.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At various times during recent years, the United
States and China have had disagreements over political and economic issues. Controversies may arise in the future between these two countries.
Any political or trade controversy between the United States and China could adversely affect the market price of our common shares and
our ability to access U.S. capital markets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The Chinese government could change its policies
toward private enterprise or even nationalize or expropriate private enterprises, which could result in the total loss of our investment
in that country.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business is subject to political and economic
uncertainties and may be adversely affected by political, economic and social developments in the PRC. Over the past several years, the
PRC government has pursued economic reform policies including the encouragement of private economic activity and greater economic decentralization.
The PRC government may not continue to pursue these policies or may alter them to our detriment from time to time with little, if any,
prior notice. Changes in policies, laws and regulations or in their interpretation or the imposition of confiscatory taxation, restrictions
on currency conversion, restrictions or prohibitions on dividend payments to shareholders, devaluations of currency or the nationalization
or other expropriation of private enterprises could have a material adverse effect on our business. Nationalization or expropriation could
even result in the total loss of our investment in the PRC and in the total loss of any investment in us.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Because our operations are located in the PRC,
information about our operations is not readily available from independent third-party sources.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our shareholders may have greater difficulty in
obtaining information about them on a timely basis than would shareholders of a U.S.-based company. Their operations will continue to
be conducted in the PRC and shareholders may have difficulty in obtaining information about them from sources other than the companies
themselves. Information available from newspapers, trade journals, or local, regional or national regulatory agencies such as issuance
of construction permits and contract awards for development projects will not be readily available to shareholders and, where available,
will likely be available only in Chinese. Shareholders will be dependent upon management for reports of their progress, development, activities
and expenditure of proceeds.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 26; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><span style="text-decoration:underline">Risks Related to the Ownership of Our Common
Shares</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We are a holding company incorporated in the
British Virgin Islands. As a holding company with no material operations of our own, we conduct a substantial majority of our operations
through our subsidiaries.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors in our common shares should be aware
that they may never directly hold equity interests in our subsidiaries, but rather purchasing equity solely in TDH Holdings, Inc. our
British Virgin Islands holding company, which does not directly own substantially all of our business in China and the United States and
conducted by our subsidiaries. Our Common shares are shares in TDH Holdings, Inc., a BVI holding company instead of shares of our subsidiaries
in China and the United States. This structure is subject to certain legal and operational risks, including risks associated with our
subsidiaries&#8217; operations in China, including changes in the legal, political and economic policies of the Chinese government, the
relations between China and the United States, Chinese or United States regulations, all of which may materially and adversely affect
our business, financial condition and results of operations and/or the value of our Common Shares or could significantly decline or become
worthless.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent joint statement by the SEC and PCAOB,
proposed rule changes submitted by Nasdaq, and an act passed by the U.S. Senate all call for additional and more stringent criteria to
be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not
inspected by the PCAOB. These developments could add uncertainties to our listing.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2013, the PCAOB announced that it had entered
into a Memorandum of Understanding on Enforcement Cooperation with the CSRC, and the PRC Ministry of Finance, which establishes a cooperative
framework between the parties for the production and exchange of audit documents relevant to investigations undertaken by the PCAOB, the
CSRC or the PRC Ministry of Finance in the United States and the PRC, respectively. The PCAOB continues to be in discussions with the
CSRC, and the PRC Ministry of Finance to permit joint inspections in the PRC of audit firms that are registered with PCAOB and audit Chinese
companies that trade on U.S. exchanges.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 7, 2018, the SEC and the PCAOB issued
a joint statement highlighting continued challenges faced by the U.S. regulators in their oversight of financial statement audits of U.S.-listed
companies with significant operations in China. The joint statement reflects a heightened interest in an issue that has vexed U.S. regulators
in recent years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 21, 2020, SEC Chairman Jay Clayton and
PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated
with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized
the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in
emerging markets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 4, 2020, the U.S. President issued a memorandum
ordering the President&#8217;s Working Group on Financial Markets, or the PWG, to submit a report to the President within 60 days of the
memorandum that includes recommendations for actions that can be taken by the executive branch and by the SEC or PCAOB on Chinese companies
listed on U.S. stock exchanges and their audit firms, in an effort to protect investors in the U.S.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 6, 2020, the PWG released a report recommending
that the SEC take steps to implement the five recommendations outlined in the report. In particular, to address companies from jurisdictions
that do not provide the PCAOB with sufficient access to fulfill its statutory mandate, or NCJs, the PWG recommends enhanced listing standards
on U.S. stock exchanges. This would require, as a condition to initial and continued exchange listing, PCAOB access to work papers of
the principal audit firm for the audit of the listed company. Companies unable to satisfy this standard as a result of governmental restrictions
on access to audit work papers and practices in NCJs may satisfy this standard by providing a co-audit from an audit firm with comparable
resources and experience where the PCAOB determines it has sufficient access to audit work papers and practices to conduct an appropriate
inspection of the co-audit firm. There is currently no legal process under which such a co-audit may be performed in China. The report
permits the new listing standards to provide for a transition period until January 1, 2022 for listed companies, but would apply immediately
to new listings once the necessary rulemakings and/or standard-setting are effective. The measures in the PWG Report are presumably subject
to the standard SEC rulemaking process before becoming effective. On August 10, 2020, the SEC announced that SEC Chairman had directed
the SEC staff to prepare proposals in response to the PWG Report, and that the SEC was soliciting public comments and information with
respect to these proposals.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 27; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 24, 2021, the SEC announced that it had
adopted interim final amendments to implement congressionally mandated submission and disclosure requirements of the Act. The interim
final amendments will apply to registrants that the SEC identifies as having filed an annual report on Forms 10-K, 20-F, 40-F or N-CSR
with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB has determined
it is unable to inspect or investigate completely because of a position taken by an authority in that jurisdiction. The SEC will implement
a process for identifying such a registrant and any such identified registrant will be required to submit documentation to the SEC establishing
that it is not owned or controlled by a governmental entity in that foreign jurisdiction, and will also require disclosure in the registrant&#8217;s
annual report regarding the audit arrangements of, and governmental influence on, such a registrant.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, the Holding Foreign Companies Accountable
Act (&#8220;HFCA Act&#8221;), which requires that the PCAOB be permitted to inspect the issuer&#8217;s public accounting firm within three
years, may result in the delisting of our Company in the future if the PCAOB is unable to inspect our accounting firm at such future time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, on June 22, 2021, the U.S. Senate
passed the Accelerating Holding Foreign Companies Accountable Act (&#8220;AHFCAA&#8221;), which, if signed into law, would amend the HFCA
Act and require the SEC to prohibit an issuer&#8217;s securities from trading on any U.S. stock exchanges if its auditor is not subject
to PCAOB inspections for two consecutive years instead of three consecutive years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 5, 2021, the SEC approved the PCAOB&#8217;s
Rule 6100, Board Determinations Under the Holding Foreign Companies Accountable Act. Rule 6100 provides a framework for the PCAOB to use
when determining, as contemplated under the HFCA Act, whether it is unable to inspect or investigate completely registered public accounting
firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. On December 16, 2021,
the PCAOB issued a Determination Report which found that the PCAOB is unable to inspect or investigate completely registered public accounting
firms headquartered in: (1) mainland China, and (2) Hong Kong. The lack of access to the PCAOB inspection in China prevents the PCAOB
from fully evaluating audits and quality control procedures of the auditors based in China. As a result, the investors may be deprived
of the benefits of such PCAOB inspections. The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult
to evaluate the effectiveness of these accounting firms&#8217; audit procedures or quality control procedures as compared to auditors
outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors in our stock to lose confidence
in our audit procedures and reported financial information and the quality of our financial statements. Our auditor is headquartered in
California and is not subject to this determination announced by the PCAOB.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 26, 2022, the PCAOB signed a
SOP with the CSRC and the MOF of the PRC regarding cooperation in the oversight of PCAOB-registered public accounting firms in the PRC
and Hong Kong which establishes a method for the PCAOB to conduct inspections of PCAOB-registered public accounting firms in the PRC
and Hong Kong, as contemplated by the Sarbanes-Oxley Act. Under the agreement, (a) the PCAOB has sole discretion to select the firms,
audit engagements and potential violations it inspects and investigates without consultation with, or input from, PRC authorities; (b)
procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for
the PCAOB to retain information as needed; (c) the PCAOB has direct access to interview and take testimony from all personnel associated
with the audits the PCAOB inspects or investigates; and (d) the PCAOB shall have the unfettered ability to transfer information to the
SEC in accordance with the Sarbanes-Oxley Act, and the SEC can use the information for all regulatory purposes, including administrative
or civil enforcement actions. The PCAOB was required to reassess its determinations as to whether it is able to carry out inspections
and investigations completely and without obstruction by the end of 2022. On December 15, 2022, the PCAOB determined that the PCAOB was
able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong
Kong and vacated its previous determinations. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB&#8217;s
access in the future, the PCAOB will consider the need to issue a new determination.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Congress passed fiscal year 2023 Omnibus spending
legislation in December 2022, which contained provisions to accelerate the HFCAA timeline for implementation of trading prohibitions from
three years to two years. As a result, the SEC is required to prohibit an issuer&#8217;s securities from trading on any U.S. stock exchanges
if its auditor is not subject to PCAOB inspections or complete investigations for two consecutive years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our auditor, the independent registered public
accounting firm that issues the audit report for the year ended December 31, 2022 included elsewhere in this annual report, as an auditor
of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States
pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor
is headquartered in California and was last inspected by the PCAOB in March 2023. According to our auditor, the PCAOB will conduct regular
inspections. In the event that, in the future, either there is any regulatory change or step taken by PRC regulators that does not permit
YCM CPA Inc. to provide audit documentations located in China or Hong Kong to the PCAOB for inspection or investigation, or the PCAOB
expands the scope of the determinations so that we will be subject to the HFCA Act, as the same may be amended, you may be deprived of
the benefits of such inspection which could result in limitation or restriction to our access to the U.S. capital markets and trading
of our securities, including &#8220;over-the-counter&#8221; trading, may be prohibited, under the HFCA Act. The recent developments would
add uncertainties to our listing and we cannot assure you whether Nasdaq Capital Market or regulatory authorities would apply additional
and more stringent criteria to us after considering the effectiveness of our auditor&#8217;s audit procedures and quality control procedures,
adequacy of personnel and training, or sufficiency of resources, geographic reach, or experience as it relates to our audit.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 28; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The HFCA Act all call for additional and more
stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S.
auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing.</b></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 20, 2020, the U.S. Senate passed the HFCA
Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified
reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the company&#8217;s
auditors for three consecutive years, the issuer&#8217;s securities are prohibited to trade on a national exchange. On December 2, 2020,
the U.S. House of Representatives approved the HFCA Act. On December 18, 2020, the HFCA Act was signed into law. On March 24, 2021, the
SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the HFCA Act. A
company will be required to comply with these rules if the SEC identifies it as having a &#8220;non-inspection&#8221; year under a process
to be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the HFCA Act, including the listing
and trading prohibition requirements described above. Furthermore, on June 22, 2021, the U.S. Senate passed the AHFCAA, which, if signed
into law, would amend the HFCA Act and require the SEC to prohibit an issuer&#8217;s securities from trading on any U.S. stock exchanges
if its auditor is not subject to PCAOB inspections for two consecutive years instead of three consecutive years. On September 22, 2021,
the PCAOB adopted a final rule implementing the HFCAA, which provides a framework for the PCAOB to use when determining, as contemplated
under the HFCA Act, whether the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign
jurisdiction because of a position taken by one or more authorities in that jurisdiction. Furthermore, on June 22, 2021, the U.S. Senate
passed the AHFCAA, which, if signed into law, would amend the HFCA Act and require the SEC to prohibit an issuer&#8217;s securities from
trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three consecutive
years. On December 16, 2021, the PCAOB issued a Determination Report which found that the PCAOB is unable to inspect or investigate completely
registered public accounting firms headquartered in: (1) mainland China and (2) Hong Kong. Our auditor is headquartered in California
and is not subject to this determination announced by the PCAOB.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our auditor, the independent registered public
accounting firm that issues the audit report for the year ended December 31, 2022 included elsewhere in this annual report, as an auditor
of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States
pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor
is headquartered in California and was last inspected by the PCAOB in March 2023. According to our auditor, the PCAOB will conduct regular
inspections.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The recent developments would add uncertainties
to our listing and we cannot assure you whether the Nasdaq Capital Market or regulatory authorities would apply additional and more stringent
criteria to us after considering the effectiveness of our auditor&#8217;s audit procedures and quality control procedures, adequacy of
personnel and training, or sufficiency of resources, geographic reach, or experience as it relates to our audit. Furthermore, the HFCA
Act, which requires that the PCAOB be permitted to inspect the issuer&#8217;s public accounting firm within three years, may result in
the delisting of our Company in the future if the PCAOB is unable to inspect our accounting firm at such future time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management team has limited experience in
managing a U.S. public company and complying with laws applicable to such company, the failure of which may adversely affect our business,
financial conditions and results of operations<b><i>.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our current management team has limited experience
in managing a U.S. publicly traded company, interacting with public company investors and complying with the increasingly complex laws
pertaining to U.S. public companies. Prior to the completion of our initial public offering, we mainly operated our businesses as a private
company in the PRC. As a result of our IPO, our company became subject to significant regulatory oversight and reporting obligations under
the federal securities laws and the scrutiny of securities analysts and investors, and our management currently has no experience in complying
with such laws, regulations and obligations. Our management team may not successfully or efficiently manage our transition to becoming
a U.S. public company. These new obligations and constituents will require significant attention from our senior management and could
divert their attention away from the day-to-day management of our business, which could adversely affect our business, financial conditions
and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 29; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>If our financial condition deteriorates as
a NASDAQ listed company, we may not meet continued listing standards on the NASDAQ Capital Market.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 29, 2019, the Company received Nasdaq
confirmation of the Company&#8217;s regaining technical compliance with the minimum stockholders&#8217; equity rule and with other applicable
requirements as set forth in the Panel&#8217;s decision following an oral hearing in August 2019. In connection with this confirmation,
the Nasdaq Panel imposes a Panel Monitor under Listing Rule 5815(d)(4)(A) until October 30, 2020 for the purposes of monitoring the Company&#8217;s
continued compliance with the stockholders&#8217; equity requirement. The decision provided that if and to the extent the Company&#8217;s
stockholders&#8217; equity fell below $2.5 million and the Company did not qualify for listing under an alternative to the stockholders&#8217;
equity rule, the Panel (or a newly convened Panel if the initial Panel is unavailable) would promptly conduct a hearing with respect to
this deficiency, and the Company&#8217;s securities could be delisted from Nasdaq. During the monitoring period, the Company was obligated
to notify the Panel, in writing, in the event its stockholders&#8217; equity fell below $2.5 million for any reason, or if the Company
otherwise fell out of compliance with any other applicable listing requirement. In the event that the Company failed to comply with any
other requirement for continued listing during the monitoring period, the Company would have been provided written notice of the deficiency
and an opportunity to present a definitive plan to regain compliance to the Panel. The Panel would thereafter render a determination with
respect to the Company&#8217;s continued listing on Nasdaq. On November 12, 2020, the Company, was informed that, following a 12-month
compliance monitoring period under a Panel Monitor pursuant to a Compliance with Monitor letter dated October 29, 2019, the Company was
currently in compliance with applicable Nasdaq Listing Rules, and the Panel has determined to continue the listing of the Company&#8217;s
securities on The Nasdaq Stock Market. On February 23, 2022, the Company received a notification letter from Nasdaq Listing Qualifications
advising the Company that based upon the closing bid price for the Company&#8217;s common shares for the past 30 consecutive business
days, the Company no longer met the minimum&#160;$1.00&#160;per share Nasdaq continued listing requirement set forth in Nasdaq Listing
Rule 5550(a)(2). The notification also stated that the Company would be provided 180 calendar days, or until&#160;August 22, 2022, to
regain compliance with the foregoing listing requirement. To do so, the bid price of the Company&#8217;s common stock must close at or
above&#160;$1.00&#160;per share for a minimum of 10 consecutive business days prior to that date.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 14, 2022, our Board approved to effect
a&#160;reverse stock split of our common shares at the ratio of one-for-twenty with the market effective date of&#160;June 14, 2022. The
objective of the&#160;reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain
its listing on Nasdaq. As a result of the&#160;reverse stock split, each twenty common shares outstanding automatically combined and converted
to one issued and outstanding common share without any action on the part of the shareholder. Subsequent to the reverse stock split, Nasdaq
determined that for 10 consecutive business days, the closing bid price of the Company&#8217;s common shares was at $1.00 per share or
greater. On June 29, 2022, Nasdaq notified the Company that it has regained compliance with Listing Rule 5550(a)(2) and closed the matter.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, if our shares are listed on the NASDAQ
Capital Market but are delisted from the NASDAQ Capital Market at some later date, our shareholders could find it difficult to sell our
shares. In addition, if our common shares are delisted from the NASDAQ Capital Market at some later date, we may apply to have our common
shares quoted on the Bulletin Board or in the &#8220;pink sheets&#8221; maintained by the National Quotation Bureau, Inc. The Bulletin
Board and the &#8220;pink sheets&#8221; are generally considered to be less efficient markets than the NASDAQ Capital Market. In addition,
if our common shares are not so listed or are delisted at some later date, our common shares may be subject to the &#8220;penny stock&#8221;
regulations. These rules impose additional sales practice requirements on broker-dealers that sell low-priced securities to persons other
than established customers and institutional accredited investors and require the delivery of a disclosure schedule explaining the nature
and risks of the penny stock market. As a result, the ability or willingness of broker-dealers to sell or make a market in our common
shares might decline. If our common shares are delisted from the NASDAQ Capital Market at some later date or become subject to the penny
stock regulations, it is likely that the price of our shares would decline and that our shareholders would find it difficult to sell their
shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 30; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We are a &#8220;foreign private issuer,&#8221;
and our disclosure obligations differ from those of U.S. domestic reporting companies. As a result, we may not provide you the same information
as U.S. domestic reporting companies or we may provide information at different times, which may make it more difficult for you to evaluate
our performance and prospects.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a foreign private issuer and, as a result,
we are not subject to the same requirements as U.S. domestic issuers. Under the Exchange Act, we will be subject to reporting obligations
that, to some extent, are more lenient and less frequent than those of U.S. domestic reporting companies. For example, we will not be
required to issue quarterly reports or proxy statements. We will not be required to disclose detailed individual executive compensation
information. Furthermore, our directors and executive officers will not be required to report equity holdings under Section 16 of the
Exchange Act and will not be subject to the insider short-swing profit disclosure and recovery regime. As a foreign private issuer, we
will also be exempt from the requirements of Regulation FD (Fair Disclosure) which, generally, are meant to ensure that select groups
of investors are not privy to specific information about an issuer before other investors. However, we will still be subject to the anti-fraud
and anti-manipulation rules of the SEC, such as Rule 10b-5 under the Exchange Act. Since many of the disclosure obligations imposed on
us as a foreign private issuer differ from those imposed on U.S. domestic reporting companies, you should not expect to receive the same
information about us and at the same time as the information provided by U.S. domestic reporting companies.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>As a relatively new public company, we incur
increased costs and are subject to additional regulations and requirements, and our management is required to devote substantial time
to new compliance matters, which could lower our profits or make it more difficult to run our business.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a relatively new public company, we incur significant
legal, accounting and other expenses that we have not incurred as a private company, including costs associated with public company reporting
requirements and costs of recruiting and retaining non-executive directors. We also have incurred and will incur costs associated with
the Sarbanes-Oxley Act and related rules implemented by the Securities and Exchange Commission, or the SEC, and NASDAQ. The expenses incurred
by public companies generally for reporting and corporate governance purposes have been increasing. We expect these rules and regulations
to increase our legal and financial compliance costs and to make some activities more time-consuming and costlier, although we are currently
unable to estimate these costs with any degree of certainty. Our management will need to devote a substantial amount of time to ensure
that we comply with all of these requirements. These laws and regulations also could make it more difficult or costly for us to obtain
certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and
coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more
difficult for us to attract and retain qualified persons to serve on our Board of Directors, our board committees or as our executive
officers. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our common
shares, fines, sanctions and other regulatory action and potentially civil litigation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The market price of shares may be volatile,
which could cause the value of your investment to decline.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Worldwide market volatility, as well as general
economic, market or political conditions, could reduce the market price of shares of our stock in spite of our operating performance.
In addition, our results of operations could be below the expectations of public market analysts and investors due to a number of potential
factors, including variations in our quarterly results of operations, additions or departures of key management personnel, failure to
meet analysts&#8217; earnings estimates, publication of research reports about our industry, litigation and government investigations,
changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof affecting our business, adverse
market reaction to any indebtedness we may incur or securities we may issue in the future, changes in market valuations of similar companies
or speculation in the press or investment community, announcements by our competitors of significant contracts, acquisitions, dispositions,
strategic partnerships, joint ventures or capital commitments, adverse publicity about our industry in or individual scandals, and in
response the market price of our common shares could decrease significantly. In the past few years, stock markets have experienced extreme
price and volume fluctuations. In the past, following periods of volatility in the overall market and the market price of a company&#8217;s
securities, securities class action litigation has often been instituted against these companies. This litigation, if instituted against
us, could result in substantial costs and a diversion of our management&#8217;s attention and resources, or at all.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 31; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>If we are unable to implement and maintain
effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of
our financial reports and the market price of our Common Shares may decline.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a public company, we are required to
maintain internal control over financial reporting and to report any material weaknesses in such internal control. In addition, we
are required to furnish a report by management on the effectiveness of our internal control over financial reporting pursuant to
Section 404 of the Sarbanes-Oxley Act. Currently we have not established and maintained effective disclosure controls and
procedures. In addition, there are material weaknesses in our internal control over financial reporting. Specifically, the material
weakness identified by our management include (i)&#160;a lack of sufficient accounting staff and resources with appropriate
knowledge of generally accepted accounting principles in the United States (&#8220;U.S. GAAP&#8221;) and SEC reporting and
compliance requirements; and (ii) a lack of an effective review process which may lead to material audit adjustments to the
financial statements. In order to address the foregoing material weakness, we have put in place additional controls, including,
among others, hiring and replacing certain management team members. Our CEO has established a new management team to deal with
operation management challenges of the Company, and our CFO has been working on improving the Company&#8217;s financial and
reporting functions. We also plan to hire more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience
and qualifications to strengthen the financial reporting function and&#160;implement regular and continuous U.S. GAAP accounting and
financial reporting training programs for our accounting and financial reporting personnel. Overall, the Company is working through
and standardizing its business processes, instituting business procedures and adding controls and additional supervision,
particularly, in the areas of control duties and data sharing and supervision so as to provide effective means of linking various
functions and departments within the Company. If we are unable to resolve material weaknesses in our internal control over financial
reporting, if we are unable to comply with the requirements of Section 404 in a timely manner or assert that our internal control
over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to
the effectiveness of our internal control over financial reporting when required, investors may lose confidence in the accuracy and
completeness of our financial reports and the market price of our Common Shares could be negatively affected, and we could become
subject to investigations by the stock exchange on which our securities are listed, the SEC, or other regulatory authorities, which
could require additional financial and management resources.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>As the rights of shareholders under British
Virgin Islands law differ from those under U.S. law, you may have fewer protections as a shareholder.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our corporate affairs will be governed by our
memorandum and articles of association, the BVI Business Companies Act, 2004 (as amended), referred to below as the &#8220;BVI Act&#8221;,
and the common law of the British Virgin Islands. The rights of shareholders to take legal action against our directors, actions by minority
shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are governed by the BVI Act and the
common law of the British Virgin Islands. The common law of the British Virgin Islands is derived in part from comparatively limited judicial
precedent in the British Virgin Islands as well as from the common law of England and the wider Commonwealth, which has persuasive, but
not binding, authority on a court in the British Virgin Islands. The rights of our shareholders and the fiduciary responsibilities of
our directors under British Virgin Islands law are largely codified in the BVI Act, but are potentially not as clearly established as
they would be under statutes or judicial precedents in some jurisdictions in the United States. In particular, the British Virgin Islands
has a less developed body of securities laws as compared to the United States, and some states (such as Delaware) have more fully developed
and judicially interpreted bodies of corporate law. As a result of all of the above, holders of our shares may have more difficulty in
protecting their interests through actions against our management, directors or major shareholders than they would as shareholders of
a U.S. company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>British Virgin Islands companies may not be
able to initiate shareholder derivative actions, thereby depriving shareholders of the ability to protect their interests.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shareholders of British Virgin Islands companies
may not have standing to initiate a shareholder derivative action in a federal court of the United States Shareholders of a British Virgin
Islands company could, however, bring a derivative action in the British Virgin Islands courts, and there is a clear statutory right to
commence such derivative claims under Section 184C of the BVI Act. The circumstances in which any such action may be brought, and the
procedures and defenses that may be available in respect to any such action, may result in the rights of shareholders of a British Virgin
Islands company being more limited than those of shareholders of a company organized in the United States. Accordingly, shareholders may
have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The British Virgin Islands courts are
also unlikely to recognize or enforce against us judgments of courts in the United States based on certain liability provisions of U.S.
securities law; and to impose liabilities against us, in original actions brought in the British Virgin Islands, based on certain liability
provisions of U.S. securities laws that are penal in nature. There is no statutory recognition in the British Virgin Islands of judgments
obtained in the United States, although the courts of the British Virgin Islands will generally recognize and enforce the non-penal judgment
of a foreign court of competent jurisdiction without retrial on the merits. This means that even if shareholders were to sue us successfully,
they may not be able to recover anything to make up for the losses suffered.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The laws of the British Virgin Islands may
provide less protection for minority shareholders than those under U.S. law, so minority shareholders may have less recourse than they
would under U.S. law if the shareholders are dissatisfied with the conduct of our affairs.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the laws of the British Virgin Islands,
the rights of minority shareholders are protected by provisions of the BVI Act dealing with shareholder remedies and other remedies available
under common law (in tort or contractual remedies). The principal protection under statutory law is that shareholders may bring an action
to enforce the constitutional documents of the company (i.e. the memorandum and articles of association) as shareholders are entitled
to have the affairs of the company conducted in accordance with the BVI Act and the memorandum and articles of association of the company.
A shareholder may also bring an action under statute if he feels that the affairs of the company have been or will be carried out in a
manner that is unfairly prejudicial or discriminating or oppressive to him. The BVI Act also provides for certain other protections for
minority shareholders, including in respect of investigation of the company and inspection of the company books and records. There are
also common law rights for the protection of shareholders that may be invoked, largely dependent on English common law, since the common
law of the British Virgin Islands for business companies is limited.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 32; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>We may not be able to pay any dividends on
our shares in the future due to British Virgin Islands law.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under British Virgin Islands law, we may only
pay dividends to our shareholders if the value of our assets exceeds our liabilities and we are able to pay our debts as they become due.
We cannot give any assurance that we will declare dividends of any amounts, at any rate or at all in the future. Future dividends, if
any, will be at the discretion of our board of directors, and will depend upon our results of operations, cash flows, financial condition,
payment to us of cash dividends by our subsidiaries, capital needs, future prospects and other factors that our directors may deem appropriate.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_031"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 72px; text-align: left"><b>ITEM 4.</b></td><td style="text-align: justify"><b> INFORMATION ON THE COMPANY</b></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>History and Development of the Company</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We started our company in 2002 in Qingdao, Shandong
Province, PRC as a petfood company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following chart reflects our organizational
structure as of the filling date:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img alt="" src="image_001.jpg"/></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 20, 2018, the Board has approved
acquisitions by the Company of TDH Group BVBA, a company established under the laws of Belgium and TDH JAPAN, a company established under
the laws of Japan. In connection with the foregoing transactions the Company executed Share Sale and Purchase Agreements (together, the
&#8220;Agreements&#8221;) pursuant to which the Company agreed to pay approximately USD$ 936,782 and USD $156,130 (RMB 6 million and RMB
1 million), respectively, to acquire all of outstanding securities of TDH Group BVBA and TDH JAPAN, respectively, from the sole shareholder
of each entity, Rongfeng Cui, the Company&#8217;s former CEO. The purchase consideration under the Agreements was paid by issuance of
936,782 and 156,130 restricted common shares of the Company, respectively. Rongfeng Cui incorporated TDH Group BVBA in 2012 and TDH JAPAN
in 2017 to develop and maintain all the clients in Europe and Japan, and to distribute and expand product sales in European and Japanese
markets. Effective August 2, 2019, Rongfeng Cui ceased to be Company&#8217;s CEO and Dandan Liu was appointed as the CEO in his stead.
TDH Japan has been deregistered and dissolved in February 2021. As of the date of this filing, TDH Group BVBA is currently under bankruptcy
proceeding.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 33; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 22, 2002 Tiandihui was incorporated in
Qingdao City, PRC. As of the date of this filing, Qingdao Tiandihui Foodstuffs Co., Ltd is currently under bankruptcy proceeding.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 22, 2020, Qingdao Tiandihui Pet Foodstuffs
Co., Ltd. (&#8220;Tiandihui Pet Foodstuffs&#8221;) was incorporated in Qingdao City, PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 21, 2020, Qingdao Tiandihui Foodstuffs
Sales Co., Ltd. (&#8220;Tiandihui Foodstuffs Sales&#8221;) was incorporated in Qingdao City, PRC. Tiandihui Foodstuffs Sales is a wholly
owned subsidiary of Tiandihui Pet Foodstuffs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 27, 2020, TDH Foods Limited was incorporated
in Hong Kong, with the purpose of being a holding company for equity interests in Tiandihui Pet Foodstuffs. TDH Foods Limited does conduct
any operations or own any material assets or liabilities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 24, 2020, TDH Holdings, Inc. acquired
100% equity interests of TDH Foods Limited.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2020, TDH Holdings Inc. acquired remaining
1% equity interest of TDH Petfood LLC. As a result, TDH Petfood LLC became a wholly-owned subsidiary of TDH Holdings, Inc. TDH Petfood
LLC had no active business operations since its incorporation, and it has been deregistered and dissolved in 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 4, 2021, TDH Income Corporation (&#8220;TDH
Income&#8221;) was incorporated in Nevada. TDH Holdings, Inc. owns a 99.99% interest in TDH Income, and in December 2021, TDH Holdings,
Inc. acquired the remaining 0.01% interest in TDH Income. As a result, TDH Income became a wholly-owned subsidiary of TDH Holdings, Inc.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 9, 2021, Ruby21Noland LLC (&#8220;Ruby21Noland&#8221;)
was incorporated in Missouri. Ruby21Noland is a wholly owned subsidiary of TDH Income.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 31, 2021, TDH Income Corporation acquired
51% equity interests of Far Ling&#8217;s Inc.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 31, 2021, TDH Income Corporation acquired
100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 22, 2022, Beijing Wenxin Co., Ltd.
(&#8220;Beijing Wenxin&#8221;) was incorporated in Beijing City, PRC.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 27, 2023, Qingdao Chihong Information
Consulting Co., Ltd. (&#8220;Qingdao Chihong&#8221;) was incorporated in Qingdao City, PRC.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 34; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent Developments</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Discontinued operations</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We discontinued our petfood
manufacturing segment during the first quarter of 2023. Our decision to discontinue our petfood business was driven largely by the following
factors: the increase in cost of raw materials required for production;&#160;accepting less orders in an attempt to avoid unprofitable
orders and customers;&#160;decreased demand for sales of petfood; its historical performance and expected business forecasts in the absence
of further capital investments and opportunity costs; lawsuits and the closing of our manufacturing facilities and them being subject
to bankruptcy proceedings. We believe the discontinuation of our petfood manufacturing business will provide us with the opportunity to
redirect our focus and resources towards expanding and improving our restaurant segment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Nasdaq Compliance Matters</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">On February 23, 2022, the Company
received a notification letter from Nasdaq Listing Qualifications advising the Company that based upon the closing bid price for the Company&#8217;s
common shares for the past 30 consecutive business days, the Company no longer met the minimum&#160;$1.00&#160;per share Nasdaq continued
listing requirement set forth in Nasdaq Listing Rule 5550(a)(2). The notification also stated that the Company would be provided 180 calendar
days, or until&#160;August 22, 2022, to regain compliance with the foregoing listing requirement. To do so, the bid price of the Company&#8217;s
common stock must close at or above&#160;$1.00&#160;per share for a minimum of 10 consecutive business days prior to that date.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">On June 14, 2022, our Board approved to effect a&#160;reverse
stock split of our common shares at the ratio of one-for-twenty with the market effective date of&#160;June 14, 2022. The objective of
the&#160;reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain its listing
on Nasdaq. As a result of the&#160;reverse stock split, each twenty common shares outstanding automatically combined and converted to
one issued and outstanding common share without any action on the part of the shareholder. Subsequent to the reverse stock split, Nasdaq
determined that for 10 consecutive business days, the closing bid price of the Company&#8217;s common shares was at $1.00 per share or
greater. On June 29, 2022, Nasdaq notified the Company that it has regained compliance with Listing Rule 5550(a)(2) and closed the matter.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Recent Private Placement</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">On July 26, 2022, we completed
a private placement of securities, and entered into a securities purchase agreement with eight accredited investors pursuant to which
we sold to the investors an aggregate 4,000,000 of our common shares, at a price of $1.50 per share and warrants at a price of $0.01 per
warrant&#160;to purchase up to an aggregate 4,000,000 of our common shares, for gross proceeds of $6,040,000. The warrants have an exercise
price of $2.44 per share, and a term of two years.&#160; The warrants are immediately exercisable upon issuance and have a cashless exercise
feature.&#160;The securities were sold without registration under the Securities Act of 1933 in reliance on the exemptions provided by
Section 4(a)(2) of the Securities Act as transactions not involving a public offering and rules promulgated under the Securities Act as
sales to accredited investors. The Company&#8217;s intention was to use the proceeds of this offering for working capital and general
working purposes. There were no discounts or brokerage fees associated with this offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 35; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Business Overview</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration:underline">Special Considerations</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not a Chinese operating company but a British
Virgin Islands holding company with operations conducted by our subsidiaries established in Missouri, Nevada, PRC, Belgium, and Hong Kong.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PRC laws and regulations governing business operations
are sometimes vague and uncertain, and therefore, these risks may result in a material change in the operations of our PRC subsidiaries
and Hong Kong subsidiaries, significant depreciation of the value of our Common Shares, or a complete hindrance of our ability to offer
or continue to offer our securities to investors and cause the value of such securities to significantly decline or be worthless. The
Chinese government may intervene or influence the operations of our PRC operating entities at any time and may exert more control over
offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in the operations
of our PRC operating entities and/or the value of our Common Shares. Further, any actions by the Chinese government to exert more oversight
and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly limit or completely
hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline
or be worthless. Recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations
in China with little advance notice, including cracking down on illegal activities in the securities market, adopting new measures to
extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trading in our Common Shares may be prohibited
on national exchanges or &#8220;over-the-counter&#8221; markets under the HFCA Act if the PCAOB is unable to inspect our auditors for
three consecutive years beginning in 2021, and as a result, an exchange may determine to delist our securities. Furthermore, on June 22,
2021, the U.S. Senate passed the AHFCAA, which, if signed into law, would amend the HFCA Act and require the SEC to prohibit an issuer&#8217;s
securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead
of three consecutive years. Pursuant to the HFCA Act, the PCAOB issued a Determination Report on December 16, 2021 which found that the
PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in: (1) mainland China of the PRC,
and (2) Hong Kong. In addition, the PCAOB&#8217;s report identified the specific registered public accounting firms which are subject
to these determinations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our auditor is currently subject to PCAOB inspections
and the PCAOB is thus able to inspect our auditor. Our auditor is headquartered in California and was last inspected by the PCAOB in March
2023. According to our auditor, the PCAOB will conduct regular inspections. Our auditor is not headquartered in mainland China or Hong
Kong and was not identified in this report as a firm subject to the PCAOB&#8217;s determination. Notwithstanding the foregoing, in the
future, if there is any regulatory change or step taken by PRC regulators that does not permit YCM CPA Inc., to provide audit documentations
located in China or Hong Kong to the PCAOB for inspection or investigation, or the PACOB expands the scope of its determination so that
we are subject to the HFCA, as the same may be amended, you may be deprived of the benefits of such inspection which could result in limitation
or restriction to our access to the U.S. capital markets and trading of our securities, including trading on the national exchange and
trading on &#8220;over-the-counter&#8221; markets, may be prohibited under the HFCA Act.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Overview</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Petfood Manufacturing </i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We started our company in 2002 in Qingdao, Shandong
Province, PRC with a single mission of becoming a producer of high-quality petfood for pet owners in China and worldwide. Historically,
we anticipated our growth would be driven by two key factors: a significant increase in the number of pet owners and in the size of the
petfood market in China which would translate into expansion opportunities for us, and a fundamental change in Chinese society towards
pets, pet ownership and care, such that the trends of pet humanization and consumer concerns for pet health and wellness would in turn
would create a growing industry for petfood and products. We priced our products to be accessible to the average consumer.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 36; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended
our production and normal business operations and we were involved in certain legal proceedings beginning in November 2019. Although we
resumed our operations in May 2020 factors including the Covid-19 pandemic, the increase in cost of raw materials required for production;&#160;accepting
less orders in an attempt to avoid unprofitable orders and customers;&#160;and decreased demand for sales of petfood, led to a continuous
decrease in our petfood revenue from $0.47 million in 2021 to only $0.02 million in 2022. Additionally, our remaining petfood production
facility became subject to a bankruptcy proceeding and was frozen by the court in 2022. Accordingly, we sought strategic alternatives
to the petfood industry and entered the restaurant segment on October 31, 2021, when we acquired 51% equity interests of Far Ling&#8217;s
Inc and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. This resulted in an increase of $0.6 million and $3.1 million
in restaurant food service revenue for the years ended December 31, 2021 and 2022, respectively. In addition, we decided to discontinue
our petfood manufacturing business segment in the first quarter of 2023 due to the above operational challenges and to focus on our restaurant
segment.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Restaurant Segment</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October 31, 2021, the Company completed the acquisition of 51% equity
interests of Far Ling&#8217;s Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. The acquisition brought a new
revenue source for the Company.</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bo Lings Chinese Restaurant, which was founded
by Richard (Bo) and Far Ling (Ling) Ng, husband and wife, in 1981. Today there are 5 Bo Lings Chinese Restaurants in the Kansas City area,
as well as a warehouse for distribution of supplies. All Bo Lings restaurants are full service that include a dining area, bar, carry
out menu and offer catering services. The location we purchased is in Kansas City and offers a full Cantonese Dim Sum menu and space for
banquets. Most of the menu items are prepared onsite in the kitchen and cooked to order. Business is managed by Richard and Far Ling with
a team of employees in each restaurant, including bookkeepers, a marketing manager and a purchasing director. Over the years, we believe
Bo Lings has built a reputation as one of the best Chinese restaurants in the Kansas City area. &#160;Currently, no other Chinese Restaurant
has 2 or more restaurants in our area.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Business Strategy</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Growth agenda is based on four key drivers:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Culture and Talent: Leverage our culture and people capability
to fuel brand performance and franchise success;</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Operating Capability: Recruit and equip high-quality restaurant
operators to deliver great customer experiences;</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Strategically optimize
                                            our restaurant portfolio and pursue high quality assets and acquisitions: We aim to prudently
                                            pursue investments in high-quality assets. Our investment strategy primarily focuses on,
                                            restaurant brands with excellent growth potential and synergy, and related business such
                                            as catering and events. We continue to identify and evaluate investment opportunities in
                                            high-quality brands to capture growth opportunities. We will prudently assess investment
                                            targets based on each candidate&#8217;s strategic value, brand equity, business scale and
                                            financial performance, among other factors; and</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Menu Innovations: Offering appealing, tasty and convenient food at great prices is our value
                                                                                      proposition. We focus on the development and innovation of new recipes and improvement of existing products.</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 37; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Operating Strategy</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operating strategy is built on the following
key components:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">Offering high quality,
                                            freshly prepared food: We place a great deal of emphasis on providing our guests with high
                                            quality, freshly prepared food. As part of our process, we have developed proprietary recipes
                                            to provide consistency in quality and taste. We expect our employees to inspect every entr&#233;e
                                            before it leaves the kitchen to confirm it matches the guest&#8217;s order and meets our
                                            standards for quality, portion size, appearance and presentation;</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify"><b>&#160;</b></p><div>


</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Creating a comfortable atmosphere with a focus on high quality service: We believe the service quality and atmosphere we establish is a key component for fostering repeat business. We focus on keeping our table-to-server ratios low to allow our servers to truly focus on their guests and serve their needs in a personal, individualized manner. In addition, Bo Lings features a modern design; and</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt">&#160;</p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Offering attractive price points: When we evaluate menu pricing, we focus on remaining disciplined as we balance short-term pressures with long-term growth while always keeping our guest top of mind. Prices are reviewed and are offered at moderate price points that we believe are as low as or lower than those offered by our competitors without sacrificing food quality. Within each menu category, we offer a choice of several price points with the goal of fulfilling each guest&#8217;s budget and value expectations. Based on the results of our pricing evaluations, we will continue to take pricing actions as we feel are needed.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Marketing</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our marketing strategy aims to promote our brands
while retaining a localized focus. We strive to increase restaurant sales by increasing the frequency of visits by our current guests
and attracting new guests at Bo Lings and also by communicating and promoting our food quality, the guest experience and value. We accomplish
these objectives through three major initiatives.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Local Restaurant Marketing.</i> Given our strategy
to be a neighborhood destination, local restaurant marketing is integral in developing brand awareness in each market.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>In-restaurant Marketing.</i> A significant
portion of our marketing is spent communicating with our guests inside our restaurants through point of purchase materials.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Advertising.</i> We do not rely on national
television or print advertising to promote our brands. Earned local media is a critical part of our strategy that features our products
and people. We use mailing lists, social media and digital marketing, to promote the brand and engage with our guests. Additionally, we
continue to look for ways through various strategic initiatives to drive awareness and guest engagement with our brands.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Supply&#160;and Distribution</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bo Lings purchases a number of food and paper
products, equipment and other restaurant supplies. The principal items purchased include chicken, cheese, beef and pork products, paper
and packaging materials. Prices paid for these supplies fluctuate.&#160;&#160;When prices increase, Bo Lings may attempt to pass on such
increases to its customers, although there is no assurance that this can be done in practice. Bo Lings does not typically experience significant
continuous shortages of supplies, and alternative sources for most of these supplies are generally available.&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 38; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Seasonal Operations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bo Lings does not consider its operations to be
seasonal to any material degree.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Competition</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Competition in the restaurant industry is intense.
We compete with well-established food service companies on the basis of taste, quality and price of the food offered, service, atmosphere,
location, take-out and delivery options as well as the overall dining experience. Our competitors include a large and diverse group of
restaurant chains and individual restaurants that range from independent local operators that have opened restaurants in various markets
to well-capitalized national restaurant chains. We also face competition from meal kit delivery services as well as the supermarket industry.
In addition, improving product offerings of fast casual and quick-service restaurants and better execution of to-go sales, together with
negative economic conditions could cause consumers to choose less expensive alternatives. Although we believe that we compete favorably
with respect to each of the above channels, other restaurants and retail establishments compete for the same casual dining guests, quality
site locations and restaurant-level employees as we do. We expect intense competition to continue across all aspects of the restaurant
industry.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Environmental Matters</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is not aware of any federal, state
or local environmental laws or regulations that will materially affect our earnings or competitive position or result in material capital
expenditures.&#160;&#160;However, the Company cannot predict the effect on our operations due to possible future environmental legislation
or regulations.&#160;&#160;During 2022, there were no material capital expenditures for environmental control facilities and no such material
expenditures are anticipated<b>.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Human Capital Management </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Due to the discontinuation of out petfood manufacturing
segment we have reduced our number of employees in response to those challenges. As of the date of this filing, we employ around 51 full-time
employees. With the exception of Bo Lings&#8217; employees, all of our employees are located in Beijing and Shandong Province, PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Our History and Corporate Structure</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company incorporated in the British
Virgin Islands (incorporated on September 30, 2015) that owns all of the outstanding capital stock of TDH HK Limited, our wholly-owned
Hong Kong subsidiary (TDH HK). We also own all of the outstanding capital stock of TDH Foods Limited, another wholly-owned Hong Kong subsidiary,
and holds a 100% interest in TDH Income Corporation, a Nevada limited liability company. TDH HK, in turn, owns all of the outstanding
capital stock of Tiandihui, our operating subsidiary based in Qingdao City, Shandong Province, China, incorporated in April 2002 as a
PRC limited liability company Tiandihui. TDH Foods Limited owns 100% of the outstanding capital stock of Qingdao Pet Foodstuffs, with
its wholly-owned subsidiary of Tiandihui Foodstuffs Sales. TDH HK Limited owns 100% of the outstanding capital stock of Tiandihui Pet
Foodstuffs, with its wholly-owned subsidiary of Beijing Chongai Jiujiu Cultural Communication Co., Ltd. TDH Income Corporation owns 100%
of the outstanding capital stock of Ruby21Noland LLC. Ruby21Noland LLC was incorporated in the State of Missouri on June 9, 2021. On October
31, 2021, TDH Income Corporation acquired 51% equity interests of Far Ling&#8217;s Inc. On October 31, 2021, TDH Income Corporation acquired
100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. On January 22, 2022, Beijing Wenxin was incorporated in Beijing City,
PRC. On March 27, 2023, Qingdao Chihong was incorporated in Qingdao City, PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 20, 2018, the Board approved acquisitions
by the Company of TDH Group BVBA, a company established under the laws of Belgium and TDH JAPAN, a company established under the laws
of Japan. In connection with the foregoing transactions the Company executed Share Sale and Purchase Agreements (together, the &#8220;Agreements&#8221;)
pursuant to which the Company agreed to pay approximately USD$ 936,782 and USD $156,130 (RMB 6 million and RMB 1 million), respectively,
to acquire all of outstanding securities of TDH Group BVBA and TDH JAPAN, respectively, from the sole shareholder of each entity, Rongfeng
Cui, the Company&#8217;s former CEO. The purchase consideration under the Agreements was paid by issuance of 936,782 and 156,130 restricted
common shares of the Company, respectively. Rongfeng Cui incorporated TDH Group BVBA in 2012 and TDH JAPAN in 2017 to develop and maintain
all the clients in Europe and Japan, and to distribute and expand product sales in European and Japanese markets. TDH Japan has been deregistered
and dissolved in February 2021. As of the date of this filing, TDH Group BVBA is currently under bankruptcy proceeding.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 39; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Intellectual Property</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC has domestic laws for the protection of
rights in copyrights, patents, trademarks and trade secrets. The PRC is also a signatory to all of the world&#8217;s major intellectual
property conventions, including:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Convention establishing the World Intellectual Property Organization (June 3, 1980);</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Paris Convention for the Protection of Industrial Property (March 19, 1985);</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Patent Cooperation Treaty (January 1, 1994); and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Agreement on Trade-Related Aspects of Intellectual Property Rights (November 11, 2001).</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The PRC Trademark Law, adopted in 1982 and revised
in 2013, with its implementation rules adopted in 2014, protects registered trademarks. The Trademark Office of the State Administration
of Industry and Commerce of the PRC, handles trademark registrations and grants trademark registrations for a term of ten years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our primary trademark portfolio consists of 15
registered trademarks relating to petfood and manufacturing, we do not currently have any patents related to our restaurant business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Properties</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Chinese law, all of the land in China is
either state-owned or collectively-owned, depending on its location and the specific laws governing such land. Collectively-owned land
is owned by rural collectives and generally cannot be used for non-agricultural purposes unless approved by the Chinese government. Collectively-owned
land cannot be transferred, leased or mortgaged to non-collectives without first being converted into state-owned land. Individuals and
entities may acquire rights to use state-owned land, or land-use-rights, for commercial, industrial or residential purposes by means of
mutual agreement, tender, auction or listing for sale from local land authorities or an existing holder of a land-use-right. Land-use-rights
granted for commercial, industrial and residential purposes may be granted for a period of up to 40, 50 or 70 years, respectively. This
period may be renewed at the expiration of the initial and any subsequent terms, subject to compliance with relevant laws and regulations.
Land-use-rights are transferable and may be used as security for borrowings and other obligations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal executive office is located at Qingdao
Tiandihui Pet Foodstuff Co., Ltd., 2521 Tiejueshan Road, Huangdao District, Qingdao, Shandong Province, PRC. Our telephone number is +86
532-8615-7918. Our website address is www.tiandihui.com. The information on our website is not part of this Annual Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, in 2022 our remaining petfood manufacturing
facility was frozen by court order and became subject to Tiandihui&#8217;s bankruptcy proceeding. Our Bo Lings restaurant is located at
4701 Jefferson St, Kansas City, Missouri 64112.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Government Regulation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the U.S., the Food and Drug Administration
regulates both content and labeling of all animal food, China does not have a significant body of petfood laws, rules or regulations.
Various regulatory agencies (e.g., the Ministry of Agriculture, the General Administration for Quality Supervision, Inspection and Quarantine)
administer a set of standards, but there appears to be no single regulatory or administrative agency that is fulfills the comprehensive
regulatory function. We are also subject to PRC labor and employment laws, laws governing advertising and other laws. We monitor changes
in these laws and believe that our operations are in compliance in all material aspects with all PRC rules and regulations applicable
to petfood production. However, many such rules and regulations are subject to extensive interpretive power of governmental agencies
and commissions, and there is substantial uncertainty regarding the future interpretation and application of these laws or regulations.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 40; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><b><i>U.S. Restaurant Operation.&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company and its U.S. operations, are subject to various federal,
state and local laws affecting our business, including laws and regulations concerning information security, privacy, labor and employment,
health, marketing, food labeling, competition, public accommodation, sanitation and safety.&#160;&#160;Bo Lings and any additional restaurant
we open in the U.S. must comply with licensing requirements and regulations promulgated by a number of governmental authorities, which
include health, sanitation, safety, fire and zoning agencies in the state and/or municipality in which the restaurant is located.&#160;
To date, the Company has not been materially adversely affected by such licensing requirements and regulations or by any difficulty, delay
or failure to obtain required licenses or approvals.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><b><i>Regulation of Foreign Currency
Exchange and Dividend Distribution</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Foreign Currency Exchange.</i> The principal
regulations governing foreign currency exchange in China are the Foreign Exchange Administration Regulations (1996), as amended on August
5, 2008, the Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996) and the Interim Measures on Administration
on Foreign Debts (2003). Under these regulations, Renminbi are freely convertible for current account items, including the distribution
of dividends, interest payments, trade and service-related foreign exchange transactions, but not for most capital account items, such
as direct investment, loans, repatriation of investment and investment in securities outside China, unless the prior approval of State
Administration of Foreign Exchange (SAFE) or its local counterparts is obtained. In addition, any loans to an operating subsidiary in
China that is a foreign-invested enterprise, cannot, in the aggregate, exceed the difference between its respective approved total investment
amount and its respective approved registered capital amount. Furthermore, any foreign loan must be registered with SAFE or its local
counterparts for the loan to be effective. Any increase in the amount of the total investment and registered capital must be approved
by the PRC Ministry of Commerce or its local counterpart. We may not be able to obtain these government approvals or registrations on
a timely basis, if at all, which could result in a delay in the process of making these loans. The dividends paid by the subsidiary to
its shareholder are deemed shareholder income and are taxable in China. Pursuant to the Administration Rules of the Settlement, Sale and
Payment of Foreign Exchange (1996), foreign-invested enterprises in China may purchase or remit foreign exchange, subject to a cap approved
by SAFE, for settlement of current account transactions without the approval of SAFE. Foreign exchange transactions under the capital
account are still subject to limitations and require approvals from, or registration with, SAFE and other relevant PRC governmental authorities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Dividend Distribution.</i> The principal regulations
governing the distribution of dividends by foreign holding companies include the Company Law of the PRC (1993), as amended in 2013, the
Foreign Investment Enterprise Law (1986), as amended in 2000 and 2016 respectively, and the Administrative Rules under the Foreign Investment
Enterprise Law (1990), as amended in 2001 and 2014 respectively. Under these regulations, wholly foreign-owned investment enterprises
in China may pay dividends only out of their retained profits, if any, determined in accordance with PRC accounting standards and regulations.
In addition, wholly foreign-owned investment enterprises in China are required to allocate at least 10% of their respective retained profits
each year, if any, to fund certain reserve funds unless these reserves have reached 50% of the registered capital of the enterprises.
These reserves are not distributable as cash dividends, and a wholly foreign-owned enterprise is not permitted to distribute any profits
until losses from prior fiscal years have been offset.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Circular 37.</i> On July 4, 2014, SAFE issued
Circular 37, which became effective as of July 4, 2014. According to Circular 37, PRC residents shall apply to SAFE and its branches for
going through the procedures for foreign exchange registration of overseas investments before contributing the domestic assets or interests
to a SPV. An amendment to registration or filing with the local SAFE branch by such PRC resident is also required if the registered overseas
SPV&#8217;s basic information such as domestic individual resident shareholder, name, operating period, or major events such as domestic
individual resident capital increase, capital reduction, share transfer or exchange, merger or division has changed. Although the change
of overseas funds raised by overseas SPV, overseas investment exercised by overseas SPV and non-cross-border capital flow are not included
in Circular 37, we may be required to make foreign exchange registration if required by SAFE and its branches. Moreover, Circular 37 applies
retroactively. As a result, PRC residents who have contributed domestic assets or interests to a SPV, but failed to complete foreign exchange
registration of overseas investments as required prior to implementation of Circular 37, are required to send a letter to SAFE and its
branches for explanation. Under the relevant rules, failure to comply with the registration procedures set forth in Circular 37 may result
in receiving a warning from SAFE and its branches, and may result in a fine of up to RMB 300,000 for an organization or up to RMB 50,000
for an individual. PRC residents who control our company are required to register with SAFE in connection with their investments in us.
If we use our equity interest to purchase the assets or equity interest of a PRC company owned by PRC residents in the future, such PRC
residents will be subject to the registration procedures described in Circular 37.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 41; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><b><i>New M&amp;A Regulations and Overseas
Listings</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 8, 2006, six PRC regulatory agencies,
including the Ministry of Commerce, the State Assets Supervision and Administration Commission, the State Administration for Taxation,
the State Administration for Industry and Commerce, China Security Regulation Commission (CSRC) and SAFE, jointly issued the Regulations
on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the New M&amp;A Rule, which became effective on September
8, 2006 and was amended on June 22, 2009. This New M&amp;A Rule, among other things, includes provisions that purport to require that
an offshore special purpose vehicle formed for purposes of overseas listing of equity interests in PRC companies and controlled directly
or indirectly by PRC companies or individuals obtain the approval of CSRC prior to the listing and trading of such special purpose vehicle&#8217;s
securities on an overseas stock exchange. On September 21, 2006, CSRC published on its official website procedures regarding its approval
of overseas listings by special purpose vehicles. The CSRC approval procedures require the filing of a number of documents with the CSRC
and it would take several months to complete the approval process. The application of this new PRC regulation remains unclear with no
consensus currently existing among leading PRC law firms regarding the scope of the applicability of the CSRC approval requirement. Our
PRC counsel has advised us that, based on their understanding of the current PRC laws and regulations:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">We currently control the Operating Companies by virtue of TDH HK Holding acquiring 100% of the equity interests of Tiandihui, which are regulated by the New M&amp;A Rule. According to the New M&amp;A Rule, when a domestic company or a domestic natural person, through an overseas company established or controlled by it, to acquire a domestic company&#8217;s equity interest which is related to or connected with it, approval from Ministry of Commerce is required. At the time of our equity interest acquisition, as the acquiree, Tiandihui was not related to or connected with the foreign investor, or the acquirer, TDH HK Holding. Accordingly, we did not need the approval from Ministry of Commerce. In addition, we have received all relevant approvals and certificates required for the acquisition.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">We currently control the Operating Companies by virtue of TDH Foods Limited acquiring 100% of the equity interests of Tiandihui Pet Foodstuffs, which are regulated by the New M&amp;A Rule. According to the New M&amp;A Rule, when a domestic company or a domestic natural person, through an overseas company established or controlled by it, to acquire a domestic company&#8217;s equity interest which is related to or connected with it, approval from Ministry of Commerce is required. At the time of our equity interest acquisition, as the acquiree, Tiandihui Pet Foodstuffs was not related to or connected with the foreign investor, or the acquirer, TDH Foods Limited. Accordingly, we did not need the approval from Ministry of Commerce. In addition, we have received all relevant approvals and certificates required for the acquisition.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The CSRC approval under the New M&amp;A Rule only applies to overseas listings of SPVs that have used their existing or newly issued equity interest to acquire existing or newly issued equity interest in Chinese domestic companies, or a SPV-domestic company share swap. TDH Holdings, Inc. does not constitute a SPV that is required to obtain approval from the CSRC for overseas listing under the New M&amp;A Rule because there has not been any SPV-domestic company share swap in our corporate history; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the above analysis, the CSRC has
not issued any definitive rule or interpretation regarding whether offerings like the one contemplated by this Annual Report are subject
to the New M&amp;A Rule.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Regulations on Offshore
Parent Holding Companies&#8217; Direct Investment in and Loans to Their PRC Subsidiaries</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An offshore company may invest equity in a PRC
company, which will become the PRC subsidiary of the offshore holding company after investment. Such equity investment is subject to a
series of laws and regulations generally applicable to any foreign-invested enterprise in China, which include the Wholly Foreign-owned
Enterprise Law, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Contractual Joint Venture Enterprise Law, all as
amended from time to time, and their respective implementing rules; the Administrative Provisions on Foreign Exchange in Domestic Direct
Investment by Foreign Investors; and the Notice of the State Administration on Foreign Exchange on Further Improving and Adjusting Foreign
Exchange Administration Policies for Direct Investment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 42; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the aforesaid laws and regulations, the
increase of the registered capital of a foreign-invested enterprise is subject to the prior approval by the original approval authority
of its establishment. In addition, the increase of registered capital and total investment amount shall both be registered with SAIC,
MOFCOM and SAFE. Shareholder loans made by offshore parent holding companies to their PRC subsidiaries are regarded as foreign debts in
China for regulatory purpose, which is subject to a number of PRC laws and regulations, including the PRC Foreign Exchange Administration
Regulations, the Interim Measures on Administration on Foreign Debts, the Tentative Provisions on the Statistics Monitoring of Foreign
Debts and its implementation rules, and the Administration Rules on the Settlement, Sale and Payment of Foreign Exchange. Under these
regulations, the shareholder loans made by offshore parent holding companies to their PRC subsidiaries shall be registered with SAFE.
Furthermore, the total amount of foreign debts that can be borrowed by such PRC subsidiaries, including any shareholder loans, shall not
exceed the difference between the total investment amount and the registered capital amount of the PRC subsidiaries, both of which are
subject to the governmental approval.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><div><a id="a_005"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 72px; text-align: left"><b>ITEM 4A.</b></td><td style="text-align: justify"><b> UNRESOLVED STAFF COMMENTS</b></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_006"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 72px; text-align: left"><b>ITEM 5.</b></td><td style="text-align: justify"><b> OPERATING AND FINANCIAL REVIEW AND PROSPECTS</b></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Overview</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We started our company in
2002 in Qingdao, Shandong Province, PRC with a single mission of becoming a producer of high-quality petfood for pet owners in China and
worldwide. Due to the sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and
our inability to make bank loan repayments upon maturity, we suspended our production and normal business operations, and we were involved
in certain legal proceedings beginning in November 2019. Although we resumed our operations in May 2020 factors including the Covid-19
pandemic, the increase in costs of raw materials required for production;&#160;accepting less orders in an attempt to avoid unprofitable
orders and customers;&#160;decreased demand for sales of petfood, led to a dramatic decrease in our petfood sales revenue. Additionally,
our remaining production facility was frozen by court order and became subject to Tiandihui&#8217;s bankruptcy proceeding in 2022. Accordingly,
we sought strategic alternatives to the petfood industry and entered the restaurant segment on October 31, 2021, when we acquired 51%
equity interests of Far Ling&#8217;s Inc and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. In addition, we decided
to discontinue our petfood manufacturing business segment in the first quarter of 2023 due to the above operational challenges and focus
on our restaurant segment.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are a holding company incorporated in the British
Virgin Islands (incorporated on September 30, 2015) that owns all of the outstanding capital stock of TDH HK Limited, our wholly-owned
Hong Kong subsidiary (TDH HK). We also own all of the outstanding capital stock of TDH Foods Limited, another wholly-owned Hong Kong subsidiary,
and holds a 100% interest in TDH Income Corporation, a Nevada limited liability company. TDH HK, in turn, owns all of the outstanding
capital stock of Tiandihui, our operating subsidiary based in Qingdao City, Shandong Province, China, incorporated in April 2002 as a
PRC limited liability company. TDH Foods Limited owns 100% of the outstanding capital stock of Tiandihui Pet Foodstuffs, with its wholly-owned
subsidiary of Qingdao Foodstuff Sales Co., Ltd. We conduct some of our business through Tiandihui Pet Foodstuff and Tiandihui Foodstuff
Sales which has one wholly-owned subsidiary: Beijing Chongai Jiujiu Cultural Communication Co., Ltd. (incorporated on March 3, 2011).
TDH Income Corporation owns 100% of the outstanding capital stock of Ruby21Noland LLC. Ruby21Noland LLC was incorporated in the State
of Missouri on June 9, 2021. On October 31, 2021, TDH Income Corporation acquired 51% equity interests of Far Ling&#8217;s Inc. On October
31, 2021, TDH Income Corporation acquired 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. In addition, TDH Group BVBA,
a Belgium company is wholly-owned by TDH Holdings, Inc.; TDH JAPAN, a Japanese company is wholly-owned by TDH Holdings, Inc. TDH Japan
has been deregistered and dissolved in February 2021. On January 22, 2022, Beijing Wenxin was incorporated in Beijing City, PRC. On March
27, 2023, Qingdao Chihong was incorporated in Qingdao City, PRC.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal executive office is located at Qingdao
Tiandihui Pet Foodstuff Co., Ltd., 2521 Tiejueshan Road, Huangdao District, Qingdao, Shandong Province, PRC. Our telephone number is +86
532-8615-7918. Our website address is www.tiandihui.com. The information on our website is not part of this Annual Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 43; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>You should read the following discussion and
analysis of our financial condition and results of operations in conjunction with our audited consolidated financial statements and the
related notes included elsewhere in this annual filing. This discussion contains forward-looking statements that involve risks and uncertainties.
Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements
as a result of various factors, including those set forth under &#8220;Risk Factors&#8221; and elsewhere in this annual filing.</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent Developments</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Discontinued operations</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We discontinued our petfood manufacturing segment
during the first quarter of 2023. Our decision to discontinue our petfood business was driven largely by the following factors: the increase
in cost of raw materials required for production;&#160;accepting less orders in an attempt to avoid unprofitable orders and customers;&#160;decreased
demand for sales of petfood; its historical performance and expected business forecasts in the absence of further capital investments
and opportunity costs; lawsuits and the closing of our manufacturing facilities and them being subject to bankruptcy proceedings. We believe
the discontinuation of our petfood manufacturing business will provide us with the opportunity to redirect our focus and resources towards
expanding and improving our restaurant segment.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>We Are Currently Facing Challenges to Recover
Our Normal Business Operations and Resolve Existing Legal Proceedings</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayments to financial institutions
upon maturity, we temporarily suspended our production and normal business operations and we were involved in certain legal proceedings
beginning in November 2019. The COVID-19 outbreak and spread further disrupted our business activities during the period from the beginning
of 2020 up to May 2020 when we resumed our business operations. In order to diversify our revenue streams, on October 31, 2021, we acquired
51% equity interests of Far Ling&#8217;s Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. This resulted in an
increase of $0.6 million and $3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively. However,
our petfood revenue continued to decrease from approximately $0.8 million in 2020, to $0.47 million in 2021 and to $0.02 million in 2022.
We decided to discontinue our petfood manufacturing business segment in the first quarter of 2023 due to the operational challenges and
we plan to focus on our restaurant segment. Our business turnaround currently depends, in part, on our ability to successfully introduce
manage and acquire new restaurants. If we are not able to effectively manage and acquire new restaurants that successfully generate revenue,
we may not be able to grow and maintain our business as anticipated. Although we reported a net income of approximately $0.86 million
in fiscal year 2022 as compared to a net loss of $6.7 million in 2021 and a net loss of $0.87 million in 2020, it is uncertain whether
we may be able to continue to achieve profitability in the future. Our future revenue and operating cash flows may be further affected
by various pending lawsuits, legal claims, proceedings, arbitrations, and bankruptcy proceedings.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although we are currently trying to implement
our business strategies in order to manage the future growth of our business, we cannot assure our current efforts may achieve the anticipated
results and we may continue to incur operating losses in the near term. We cannot guarantee that going forward we will operate profitably.
In order to achieve profitability, among other factors, management must successfully execute our growth and operations in the markets
on which we are focused. If we are unable to successfully take necessary steps, we may be unable to sustain or increase our profitability
in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We terminated the lease of the Jiaozhou plant
in 2021, and as of December 31, 2022, we no longer have any petfood production facilities because the remaining facility owned by us was
frozen by the court as a result of Tiandihui&#8217;s bankruptcy proceeding. In addition, we discontinued our petfood manufacturing business
segment in the first quarter 2023 in order to focus on our restaurant segment.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 44; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We face substantial challenges in our effort to
resume normal business activities. Our future growth will place a significant strain on our sales and marketing capacities, administrative
and operating infrastructure, and other resources. We need to evaluate and identify suitable strategic or acquisition opportunities, complete
such transactions on commercially favorable terms, or successfully integrate business operations, infrastructure and management philosophies
of acquired restaurant businesses and companies, resolve the substantial litigation and judgements to which we are subject and raise substantial
capital. There may be particular complexities, regulatory or otherwise, associated with our expansion into new markets, and our strategies
may not succeed beyond our current markets. If we are unable to effectively address these challenges, our ability to execute acquisitions
as a component of our long-term strategy will be impaired, which could have an adverse effect on our growth or our ability to function
as a going concern. We also need to expand our customer base, refine our operational, financial and management controls and reporting
systems and procedures. If we fail to efficiently manage this expansion of our business, our costs and expenses may increase more than
anticipated and we may not successfully attract a sufficient number of customers in a cost-effective manner, respond to competitive challenges,
or otherwise execute our business plans. In addition, we may, as part of carrying out our growth strategies, adopt new initiatives to
implement new pricing models and strategies. We cannot assure you that these initiatives may achieve the anticipated results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our ability to effectively implement our strategies
and sustain and manage future growth of our business will depend on a number of factors, including our ability to: (i) effectively market
our restaurants to potential customers; (ii) develop and acquire new restaurants and related businesses; (iii) effectively recruit, train
and motivate a large number of new employees; (iv) improve our operational, financial and management controls and efficiencies; (v) raise
substantial amounts of capital; and (vi) make sound business decisions. These activities require significant capital expenditures and
investment of valuable management and financial resources, and our growth will continue to place significant demands on our management.
There are no guarantees that we will be able to effectively manage any future growth in an efficient, cost-effective and timely manner,
or at all. If we do not effectively manage the growth of our business and operations, our reputation, results of operations and overall
business and prospects, and our ability to continue as a going concern could be negatively impacted.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, we had the following
pending lawsuits, legal claims, proceedings and arbitrations:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Legal claims by vendors and lenders. Since November 2019, the Company
    has been a subject of 57 lawsuits by its raw material supplies, printing and packaging supplies, transportation companies and other
    vendors. The claims raised in these lawsuits pertain to the Company&#8217;s non-payment of various invoices for supplier and vendor
    services rendered, with related interest and costs. As of the date of this report, in 44 cases, the creditors have reached civil
    conciliation letters with our company, and in 9 cases, the court has issued civil judgments. With respect to the remaining 4 cases,
    the plaintiffs withdrew the lawsuit because of lack of evidence. The mediation and judgment involved total claims of RMB13.86 million
    (USD$2.12 million). Such liabilities have been accrued and reflected in the consolidated financial statements for the year ended
    December 31, 2020. On March 13, 2021, a land use right and a factory building on the land owned by Tiandihui were auctioned by the
    court for $5,098,461 (RMB33.14 million). On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong
    Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui,
    and it entered into bankruptcy proceedings. &#160;Accordingly, these legal claims are now subject to the bankruptcy proceedings.
    As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to
    be completed by the end of 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="vertical-align: top">
<td style="width: 48px"></td><td style="width: 24px">&#9679;</td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">On December 2, 2019, QLRE, filed a civil lawsuit
against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The Company entered into a loan agreement with QLRE in 2018 and borrowed RMB20 million
(USD3.18 million) from QLRE in connection with purchase of a factory. The loan was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang.
The Company failed to make repayment to QLRE. On March 4, 2020, the Court ordered that: (i) the Company repay QLRE the principal amount
of RMB20 million plus interest of RMB 550,000 accrued as of October 31, 2019. The court ordered that the payment be made within 10 business
days after the effective date of the court ruling, and also ordered that the Company pay interest at the rate of 2% per month for the
period from the date of November 1, 2019 to the date of full discharge of the debt, as well as the litigation fee of RMB77,000 (USD$11,933).
If the debt was not repaid within the required timeframe, interest doubled from the effective date of court order until the date of full
discharge of the debt.&#160;&#160;As of December 31, 2021, we have satisfied the repayment to QLRE. On March 16, 2022, the People&#8217;s
Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application
of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to
the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed
and are expected to be completed by the end of 2023</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 45; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="vertical-align: top">
<td style="width: 48px"></td><td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            January 15, 2020, CCB, initiated a civil claim against Tiandihui, Rongfeng Cui, and Yanjuan
                                            Wang. The plaintiff alleged that it executed a loan agreement with the Company in the amount
                                            of RMB19.93 million (USD3.08 million) for the purchase of manufacturing facility and the
                                            associated land use right located at Lingang Economic Development Zone, Huangdao District,
                                            Qingdao, Shandong Province, People&#8217;s Republic of China. Rongfeng Cui and his wife,
                                            Yanjuan Wang, co-signed for this loan as personal guarantors subject to joint and several
                                            liability in connection with the loan. The loan with CCB was guaranteed by Rongfeng Cui and
                                            Yanjuan Wang,and secured by a pledge by the aforementioned manufacturing facilities and associated
                                            land use right. On April 14, 2020, the Court has ordered among other things that the Company
                                            repay RMB19.93 million (USD3.25 million) of principal and accrued interest to CCB, and to
                                            sell the mortgaged property. On March 13, 2021, the land and factory buildings on the land
                                            owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million), of which,
                                            $3,192,827 (RMB21.14 million) has been used to repay loan principal and accrued interest
                                            to CCB. The repayment was completed by April 2021.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="vertical-align: top">
<td style="width: 48px"></td><td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            November 11, 2019, SPDB filed a civil lawsuit against Tiandihui, Saike, Gaochuang, Rongfeng
                                            Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB to borrow an
                                            aggregate of RMB4.85 million (USD0.75 million) from SPDB for working capital purpose. The
                                            Company failed to repay the debt upon maturity. The borrowing from SPDB was guaranteed by
                                            Rongfeng Cui and Yanjuan Wang, and secure by a pledge of land use right and real property
                                            of Saike and certaim real property owned by Rongfeng Cui and Yanjuan Wang. The Company failed
                                            to make repayment to SPDB on the maturity date. On October 24, 2020, the court has ordered
                                            the Company to repay SPDB the principal owed plus interest at the annual interest rate of
                                            18.25%. The payment was required to be made within 10 business days after the effective date
                                            of the order. If the debt was not paid within the required timeframe, interest doubled from
                                            the effective date of the court order until the date of full discharge of the debt.&#160;&#160;The
                                            Company was also required to pay litigation fees in the amount of &#160;RMB156,880 (USD 24,312).
                                            &#160;As of December 31, 2021, we had not satisfied the repayment to SPDB. On March 16, 2022,
                                            the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil
                                            ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation
                                            of Tiandihui and it entered into bankruptcy proceedings. Accordingly, these legal claims
                                            are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date
                                            of this filing, the bankruptcy proceedings have not been completed and are expected to be
                                            completed by the end of 2023.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="vertical-align: top">
<td style="width: 48px"></td><td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            December 10, 2019, Gaochuang initiated a civil claim against Tiandihui, Saike, Rongfeng Cui,
                                            and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB for bank acceptance
                                            draft and Gaochuang executed the guarantee of SPDB bank acceptance deposit on behalf of the
                                            Company in the amount of RMB 1.2 million (USD 0.19 million). The Company failed to repay
                                            the RMB 1.2 million ($0.19 million) deposit to Gaochuang upon the bank acceptance draft maturity
                                            date. The deposit made by Gaochuang was guaranteed by certain of the Company&#8217;s fixed
                                            assets and patents. &#160;On December 29, 2020, the court ordered the Company to repay the
                                            RMB 1.2 million ($0.19 million) deposit to Gaochuang and the interest at the annual interest
                                            rate of 4.15%. The payment was required to be made within 10 business days after the effective
                                            date of the court order. The court order also provided that if the debt was not paid within
                                            the required timeframe, interest doubled from the effective date of court order until the
                                            date of full discharge of the debt.&#160;&#160;The court order also obligated the Company
                                            to bear litigation fees of RMB83,127(USD 12,882). As of December 31, 2021, we had not satisfied
                                            the repayment to Gaochuang. On March 16, 2022, the People&#8217;s Court of Huangdao District,
                                            Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217;
                                            application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings.
                                            Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December
                                            31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed
                                            and are expected to be completed by the end of 2023.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 46; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="vertical-align: top">
<td style="width: 48px"></td><td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">On May 6, 2020, the Postal Savings Bank of China
Limited Weihai Road Sub-branch of Qingdao North District (hereinafter referred to as Postal Savings) filed a civil lawsuit against Tiandihui,
Rongfeng Cui and Yanjuan Wang. The Company entered into two loan agreements with Postal Savings in 2018 and 2019, respectively, and borrowed
RMB9.9 million ($1.53 million) in aggregate. The loans were guaranteed by Rongfeng Cui and Yanjuan Wang, and were secured by a pledge
of real property owned by the Company and real property owned by Rongfeng Cui. The Company failed to pay its debt to Postal Savings when
it was due. In June 2020, the court ordered the Company to repay to Postal Savings the principal and interest under the loan, and to reimburse
Postal Savings for the litigation fees incurred by Postal Savings.&#160;&#160;If the court decide to auction the pledged real properties,
Postal Savings shall have the priority right of the repayment from the auction proceeds. As of December 31, 2021, we had not made the
repayment to Postal Savings. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a
civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed are expected to be completed by the end of 2023.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Labor arbitration claims by former employees</i>. Due to decreased business scale and the impact of COVID-19, the Company dismissed certain employees in 2019 and 2020 and only maintained 51 full-time employees, during fiscal year 2022 and as of December 31, 2022. As a result of the employee layoffs, certain of the Company&#8217;s former employees commenced arbitration proceedings against the Company under applicable labor rules and standards, claiming, among others, lost wages, severance payments and/or social security obligations totaling RMB3.68 million (USD0.56 million). There were 98 labor arbitrations, of which 6 cases has been settled and the trial court has issued decisions on the remaining 92 cases. The Company accrued approximately $0.4 million contingent liabilities in other current liabilities on the consolidated balance sheet as of December 31, 2019 and recognized contingent losses of approximately $0.4 million for the year ended December 31, 2019. Upon the issuance of rulings in these cases, the Company further accrued approximately $0.1 million wage and/or severance payables in other current liabilities on the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $0.1 million for the year ended December 31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were actioned by the court for $5,098,461 (RMB 33.14 million). In 2021, we have paid RMB3.73 million to substantially settle the labor arbitration cases with our former employees. We only have RMB0.5 million ($0.08 million) remaining severance payables to them as of December 31, 2021. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Nasdaq Compliance Confirmation and a Panel
Monitor</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On&#160;February 23, 2022, the Company received
a notification letter from Nasdaq Listing Qualifications advising the Company that based upon the closing bid price for the Company&#8217;s
common shares for the past 30 consecutive business days, the Company no longer met the minimum&#160;$1.00&#160;per share Nasdaq continued
listing requirement set forth in Nasdaq Listing Rule 5550(a)(2). The notification also stated that the Company would be provided 180 calendar
days, or until&#160;August 22, 2022, to regain compliance with the foregoing listing requirement. To do so, the bid price of the Company&#8217;s
common stock must close at or above&#160;$1.00&#160;per share for a minimum of 10 consecutive business days prior to that date.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 14, 2022, our Board approved to effect
a&#160;reverse stock split of our common shares at the ratio of one-for-twenty with the market effective date of&#160;June 14, 2022. The
objective of the&#160;reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain
its listing on Nasdaq. As a result of the&#160;reverse stock split, each twenty common shares outstanding automatically combined and converted
to one issued and outstanding common share without any action on the part of the shareholder. Subsequent to the reverse stock split, Nasdaq
determined that for 10 consecutive business days, the closing bid price of the Company&#8217;s common shares was at $1.00 per share or
greater. On June 29, 2022, Nasdaq notified the Company that it has regained compliance with Listing Rule 5550(a)(2) and closed the matter.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, if our shares are listed on the NASDAQ
Capital Market but are delisted from the NASDAQ Capital Market at some later date, our shareholders could find it difficult to sell our
shares. In addition, if our common shares are delisted from the NASDAQ Capital Market at some later date, we may apply to have our common
shares quoted on the Bulletin Board or in the &#8220;pink sheets&#8221; maintained by the National Quotation Bureau, Inc. The Bulletin
Board and the &#8220;pink sheets&#8221; are generally considered to be less efficient markets than the NASDAQ Capital Market. In addition,
if our common shares are not so listed or are delisted at some later date, our common shares may be subject to the &#8220;penny stock&#8221;
regulations. These rules impose additional sales practice requirements on broker-dealers that sell low-priced securities to persons other
than established customers and institutional accredited investors and require the delivery of a disclosure schedule explaining the nature
and risks of the penny stock market. As a result, the ability or willingness of broker-dealers to sell or make a market in our common
shares might decline. If our common shares are delisted from the NASDAQ Capital Market at some later date or become subject to the penny
stock regulations, it is likely that the price of our shares would decline and that our shareholders would find it difficult to sell their
shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 47; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Recent Private Placement</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 26, 2022, we completed a private placement
of securities, and entered into a securities purchase agreement with eight accredited investors pursuant to which we sold to the investors
an aggregate 4,000,000 of our common shares, at a price of $1.50 per share and warrants at a price of $0.01 per warrant&#160;to purchase
up to an aggregate 4,000,000 of our common shares, for gross proceeds of $6 040 000 and received net proceeds of $6,017,781 after deducting
fees and expenses related to the transaction. The warrants have an exercise price of $2.44 per share, and a term of two years.&#160; The
warrants are immediately exercisable upon issuance and have a cashless exercise feature.&#160;The securities were sold without registration
under the Securities Act of 1933 in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving
a public offering and rules promulgated under the Securities Act as sales to accredited investors. The Company&#8217;s intention was to
use the proceeds of this offering for working capital and general working purposes. There were no discounts or brokerage fees associated
with this offering.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">

</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Overview</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We started our company in 2002 in Qingdao, Shandong
Province, PRC with a single mission of becoming a a producer of high-quality petfood for pet owners in China and worldwide. Due to the
sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and our inability to make
bank loan repayments upon maturity, we suspended our production and normal business operations and we were involved in certain legal proceedings
beginning in November 2019. Although we resumed our operations in May 2020 factors including the Covid-19 pandemic, the increase in cost
of raw materials required for production;&#160;accepting less orders in an attempt to avoid unprofitable orders and customers; and&#160;decreased
demand for sales of petfood, led to a decrease in our petfood revenue from $0.8 million in 2020, to $0.47 million in 2021 and to only
$0.02 million in 2022. Additionally, our remaining petfood manufacturing facility was frozen by the court and became subject to Tiandihui&#8217;s
bankruptcy proceeding in 2022. Accordingly, we sought strategic alternatives to the petfood industry and entered the restaurant segment
on October 31, 2021, when we acquired 51% equity interests of Far Ling&#8217;s Inc and 100% equity interests of Bo Ling&#8217;s Chinese
Restaurant, Inc. This resulted in an increase of $0.6 million and $3.1 million in food service revenue for the years ended December 31,
2021 and 2022, respectively. In addition, we decided to discontinue our petfood manufacturing business segment in the first quarter 2023
due to the above operational challenges and focus on our restaurant segment. &#160;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">
</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenues from continuing operations </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Historically before 2019, our revenue primarily
was generated from sales of our petfood products to customers mainly through our overseas and domestic distribution agents, and online
sales through various electronic commerce platforms. Revenue consists of the invoiced value for the sales, net of value-added tax (&#8220;VAT&#8221;),
business tax, applicable local government levies and returns. Due to the sharp rise in market price of raw materials, the lack of operational
efficiency of our production facilities and our inability to make bank loan repayment upon maturity, we suspended our production and normal
business operations, and we were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations
in May 2020 factors including the COVID-19 pandemic, the increase in cost of raw materials required for production;&#160;accepting less
orders in an attempt to avoid unprofitable orders and customers;&#160;and decreased demand for sales of petfood, led to a decrease in
our petfood revenue from $0.8 million in 2020, to $0.47 million in 2021 and to only $0.02 million in 2022. Additionally, our remaining
petfood manufacturing facility was frozen by the court and became subject to Tiandihui&#8217;s bankruptcy proceeding in 2022. We decided
to discontinue our petfood manufacturing business segment in the first quarter 2023 due to the above operational challenges and focus
on our restaurant segment.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">
</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 31, 2021 we acquired 51% equity interests
of Far Ling&#8217;s Inc and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. and started our restaurant business. This
resulted in an increase of $0.6 million and $3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 48; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following factors affected the revenues we
derived from our operations from 2020 to 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>COVID-19 Impact</i>: In December 2019, a novel
strain of coronavirus was reported in Wuhan, China. On March 11, 2020, the World Health Organization categorized it as a pandemic. In
response to the COVID-19 outbreak, governments around the global have implemented measures such as lockdowns, travel restrictions, and
closures of businesses and schools. As a result of the COVID-19 outbreak, we have experienced suspension of operations, interruption of
supply chain and decline in sales orders by our customers. Our businesses, results of operations, financial position and cash flows were
adversely affected in fiscal years 2020 to 2022, including but not limited to material negative impact to our total revenues, slower collection
of account receivables and significant disruptions of our supply chains. On October 31, 2021, we acquired 51% equity interests of Far
Ling&#8217;s Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. This resulted in an increase of $0.6 million and
$3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively. However, our revenue growth may be
further affected by the ongoing COVID-19 pandemic. We are currently trying to implement our business strategies in order to manage the
future growth of our business, we cannot assure our current efforts may achieve the anticipated results and we may continue to incur operating
losses in the near term. We conduct our restaurant business in the United States. In response to the Covid-19 outbreak, many state and
local authorities had mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining
capacities. COVID-19 and the government measures taken to control caused a significant disruption to our business of Bo Lings. As of the
filing date of this Annual Report on Form 20-F, we had Bo Lings operating at 100% indoor dining capacity. However, there can be no assurance
that developments with respect to the COVID-19 pandemic and government measures taken to control it will not adversely affect our operations
and financial results. We cannot guarantee that going forward we will operate profitably. In order to achieve profitability, among other
factors, management must successfully execute our growth and operations in the markets on which we are focused. If we are unable to successfully
take necessary steps, we may be unable to sustain or increase our profitability in the future.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">
</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Our ability to resolve our debt burden and
limited production capacity to support our future revenue growth.</i> We are currently facing challenges to settle lawsuits related to
defaulted loan payments to various financial institutions mentioned above. Our petfood manufacturing capacity also decreased from 8.0
tons per day in 2019 to 4.6 tons per day in 2021 and to no tons as of the date of this filing because our remaining petfood manufacturing
facility was frozen by court order and currently subject to a bankruptcy proceeding. We decided to discontinue our petfood manufacturing
business segment in the first quarter 2023 due to the above operational challenges and focus on our restaurant segment. Our future market
expansion, business recovery and revenue growth may need significant amount of capital expenditure. If we cannot resolve current working
capital shortage, debt burden and limited production capacity, we may not be able to support our future revenue growth.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Our ability to maintain our competitive advantages.</i>
Historically, we provided more than 200 different variety of pet snack products to our targeted customers to satisfy their needs. Due
to the sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and our inability
to make bank loan repayments upon maturity, we suspended our production and normal business operations and we were involved in certain
legal proceedings beginning in November 2019. Although we resumed our operations in May 2020 factors including the COVID-19 pandemic,
the increase in cost of raw materials required for production;&#160;accepting less orders in an attempt to avoid unprofitable orders and
customers;&#160;and decreased demand for sales of petfood, led to a decrease in our petfood revenue from $0.8 million in 2020, to $0.49
million in 2021 and to only $0.03 million in 2022. Additionally, our remaining production facility was frozen by the court and became
subject to a bankruptcy proceeding in 2022. We decided to discontinue our petfood manufacturing business segment in the first quarter
2023 due to the above operational challenges and focus on our restaurant segment. However, the market conditions and consumer preferences
change rapidly. If we fail to maintain our reputation and competitive advantages, customers demand for our dining products and services
could decline.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">In addition, competition in the restaurant
industry is intense.</span> We face sustained, intense competition from traditional, fast casual and other competitors, which may include
many non-traditional market participants such as convenience stores, grocery stores, coffee shops and online retailers. We expect our
environment to continue to be highly competitive, and our results in any particular reporting period may be impacted by a contracting
IEO segment or by new or continuing actions, product offerings or consolidation of our competitors and third-party partners, which may
have a short-term or long-term impact on our results. We compete on the basis of product choice, quality, affordability, service and location.
In particular, we believe our ability to compete successfully in the current market environment depends on our ability to improve existing
products, successfully develop and introduce new products, price our products appropriately, deliver a relevant customer experience, manage
the complexity of our restaurant operations, manage our investments in technology and modernization, and respond effectively to our competitors&#8217;
actions or offerings or to unforeseen disruptive actions. There can be no assurance these strategies will be effective, and some strategies
may be effective at improving some metrics while adversely affecting other metrics, which could have the overall effect of harming our
business.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">
</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 49; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Loss of key personnel.&#160;</i>Our revenue
was derived from our competitive advantages in our products. We rely heavily on the expertise and leadership of our senior management
to maintain our core competence. The loss of the service of any of our key personnel could adversely affect our business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Macro-economic conditions.&#160;</i>Our business,
financial condition and results of operations may be materially adversely affected by a challenging economic climate, including adverse
changes in interest rates, volatile commodity markets and inflation, contraction in the availability of credit in the market and reductions
in consumer spending. A macroeconomic downturn, which decreases the disposable personal income, may contribute to decreased sales of our
petfood products and our restaurant business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Costs and Expenses from continuing operations
</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our costs and expenses primarily include the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Costs of revenues</i>. Cost of revenues of
our petfood business consists primarily of direct raw materials, direct payroll of workshop staff, utility and supply costs consumed in
the manufacturing process, manufacturing labor, depreciation expense and overhead expenses necessary to manufacture finished goods as
well as distribution costs such as inbound freight charges. Cost of revenues of our restaurant business consist primarily of food and
packaging costs, payroll and employee benefit costs, store lease and occupancy costs and depreciation and amortization costs.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Selling, general and administrative expenses</i>.
Selling, general and administrative expenses consist primarily of compensation expense for our corporate staff in supporting departments,
communication costs, gasoline, shipping and handling cost, welfare expenses, education expenses, professional fees (including consulting,
audit and legal fees), travel and business hospitality expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Income tax expense.</i>&#160;We account for
income taxes under the provisions of Section 740-10-30 of the FASB Accounting Standards Codification, which is an asset and liability
approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that
have been recognized in the financial statements or tax returns.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following factors affect our cost of revenues
and expense.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Price fluctuation of raw materials.&#160;</i>For
our petfood business<i>, </i>the raw materials purchase costs significantly impact our cost of goods sold. Any significant fluctuation
of the market price of raw materials may negatively affect our operating results. Even if our current materials supply is relatively stable,
we could be impacted by material price fluctuation in coming years. For our restaurant business, food and beverage purchase costs and
labor costs also significantly impact our costs of goods sold.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Our ability to resolve our current poor credit
resulting from our legal proceedings with our vendors and suppliers</i>. Our cost of revenues is impacted by whether we can negotiate
favorable purchase price and credit terms with our suppliers and vendors, including but not limit to raw material supplies, printing and
packaging supplies, transportation companies and other vendors. Since November 2019, we have been a subject of 57 lawsuits by our suppliers
and vendors. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and
announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui. Accordingly, these legal claims are now
subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not
been completed and are expected to be completed by the end of 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 50; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Prevailing salary levels</i>. Our cost of revenues
is impacted by prevailing salary levels. Although we have not been subject to significant wage inflation, a significant increase in the
market rate for wages could harm our operating results and our operating margin. Our ability to attract, retain, and expand our senior
management and our professional and technical staff is an important factor in determining our future success. From time to time, it may
be difficult to attract and retain qualified individuals with the required expertise at a fair wage.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Depreciation</i>. Our depreciation expenses
are mainly driven by the net value of machinery equipment, motor vehicles, buildings, lease restaurant store and other items. Depreciation
of property, plant and equipment is calculated based on cost, less their estimated residual value, if any, using the straight-line method
over estimated useful life from 5 years to 50 years. Any change of the depreciation accounting policy or impairment of our property may
affect our operating results.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Shipping and handling expense.&#160;</i>Our
shipping and handling expense includes domestic freight, overseas freight, domestic express shipping fee. In order to reduce shipping
and handling cost, we are trying to negotiate with and establish closer cooperation with several shipping companies providing express
shipping services in order to lock favorable fee rates and reduce the domestic express fees.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Research and Development expense.</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We did not have research and development spending
in 2021 and 2022, we may not incur additional R&amp;D expenses in the coming years due to our last petfood production facility being frozen
by the court and becoming subject to a bankruptcy proceeding in 2022, and we decided to discontinue our petfood manufacturing business
segment in the first quarter 2023.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Results of Operations</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>For the years ended December 31, 2022, 2021
and 2020</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">2022 vs</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">2021 vs</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Net revenues from continuing operations</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">3,098,733</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,081,095</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">622,801</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">186.63</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">73.59</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Cost of revenues from continuing operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,046,200</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">769,967</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">449,694</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">165.75</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">71.22</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,052,533</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">311,128</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">173,107</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">238.30</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">79.73</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Gross margin</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">33.97</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">28.78</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">27.79</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt">N/A</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt">N/A</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Selling expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">91,370</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">74,278</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">85,744</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">23.01</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-13.37</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">General and administrative expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,002,346</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,541,872</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">583,594</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13.00</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">506.91</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Impairment of goodwill</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">355,570</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-100.00</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">100</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Loss from operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(3,048,016</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(3,660,592</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(496,231</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">16.73</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">-637.68</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>





</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenues from continuing operations</i>.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our revenue from continuing operations were $3,098,733,
$1,081,095 and $622,801 for the years ended December&#160;31, 2022, 2021 and 2020, respectively. Our total revenue from continuing operations
increased by $2,017,638 or 186.63% when comparing 2022 to 2021 and increased by $458,294 or 73.59% when comparing 2021 to 2020.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 51; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table displays our revenue from
our continuing operations by different marketing channels.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">2022 vs</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">2021 vs</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Oversea sales</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">134,896</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">226,385</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-100</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-40</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Domestic sales</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">25,849</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">308,267</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">382,497</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-92</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-19</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Electronic commerce sales</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">34,590</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,708</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-100</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">107</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Restaurant revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,074,007</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">606,463</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">407</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">100</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Sale tax and addition</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,123</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,121</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,789</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-64</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">12</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Total revenues from continuing operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">3,098,733</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">1,081,095</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">622,801</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">187</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">74</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Year Ended December 31, 2022 Compared to Year
Ended December 31, 2021</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December 31, 2022, for revenue
generated from petfood sales of our continuing operations, our domestic sales decreased by $282,418 or 92%, and there was no e-commerce
sales and overseas sales of petfood products. However, revenue from our restaurant business segment in the United States increased by
$2,467,544 or 407%. As a result, our total revenue increased by $2,017,638 or 187% when comparing 2022 to 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The decrease of petfood sales revenue of our continuing
operations in 2022 was mainly due to the following factors: Due to the sharp rise in market price of raw materials, the lack of operational
efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended our production and
normal business operations and we were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations
in May 2020 factors including the COVID-19 pandemic, the increase in cost of raw materials required for production;&#160;accepting less
orders in an attempt to avoid unprofitable orders and customers;&#160;and decreased demand for sales of petfood, led to a decrease in
our petfood revenue from $0.47 million in 2021 and to only $0.02 million in 2022. Additionally, our remaining petfood production facility
was frozen by the court and became subject to a bankruptcy proceeding in 2022. We decided to discontinue our petfood manufacturing business
segment in the first quarter 2023 due to the above operational challenges</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the other hand, revenue from our restaurant
business segment increased by $2,467,544 or 407% when comparing 2022 to 2021. On October 31, 2021, we acquired 51% equity interests of
Far Ling&#8217;s Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. Revenue from our restaurant business primarily
includes food and beverage sales of $606,463 for the last two months in 2021 after we acquired the business on October 31, 2021 and include
12 months of sales in 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the above, our total revenues from
continuing operations for the fiscal year 2022 increased as compared with the fiscal year 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Year Ended December 31, 2021 Compared to Year
Ended December 31, 2020</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December 31, 2021, for revenue
generated from petfood sales of our continuing operations, our overseas and domestic sales decreased by $91,489 and $74,230, respectively,
and our e-commerce sales increased by $17,882 from the year ended December 31, 2020. However, our revenue from restaurant business in
the United States increased by $606,463 or 100%. As a result, our total revenue increased by $458,294 or 74% when comparing 2021 to 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The decrease of petfood revenue of our continuing
operations in 2020 was mainly due to the following facts: (1) Due to the continuous development of the COVID-19, we had to close the factory
and stop production for a period of time, which caused the delay of orders and affected customers&#8217; trust in us. Therefore, some
customers canceled their orders to the company, and the company&#8217;s sales revenue decreased greatly; (2) The purchasing cost of raw
materials required for production has risen to a certain extent; (3) stop taking unprofitable orders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the other hand, our revenue from restaurant
business increased by $606,463 or 100% when comparing 2021 to 2020. On October 31, 2021, we acquired 51% equity interests of Far Ling&#8217;s
Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. Revenue from our restaurant business primarily include food
and beverage sales of $606,463 for the last two months in 2021 after we acquired the business on October 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the above, our total revenues from
continuing operations for the fiscal year 2021 increased as compared with the fiscal year 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 52; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The revenue generated from different product lines
from our continuing operations are set forth as following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022 vs</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021 vs</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">$</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Pet chews</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">8,367</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">46,112</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">59,096</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-82</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">-22</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Dried pet snacks</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8,005</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">293,325</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">317,392</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-97</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-8</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Wet canned petfood</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,290</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">10,760</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">84,117</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-88</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-87</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Dental health snacks</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">550</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,127</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">19,915</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-91</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-69</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Baked pet biscuits</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,132</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-100</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Restaurant revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,074,007</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">606,463</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">407</td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">100</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,637</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,429</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">141,938</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-94</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-14</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Sale tax and addition</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,123</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(3,121</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,789</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-64</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">12</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Total revenues from continuing operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">3,098,733</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">1,081,095</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">622,801</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">187</td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">74</td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Year Ended December 31, 2022 Compared to Year
Ended December 31, 2021</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our total revenue from continuing operations increased
by $2,017,638 or 187% when comparing 2022 to 2021, among which, revenue generated from pet chews decreased by $37,745 or 82%, revenue
from dried pet snacks decreased by $285,320 or 97%, revenue generated from wet canned petfoods decreased by $9,470 or 88%, revenue generated
from dental health snacks decreased by $5,577 or 91%, from the year ended December 31, 2021 to the year ended December 31, 2022, respectively.
In addition, revenue generated from dental health snacks decreased by $6,127 or 100%, from the year ended December 31, 2021 to the year
ended December 31, 2022. The decrease in petfood sales was primarily due to our inability to fulfill customer orders on a timely basis
due to disruption of supply chain and logistics caused by the COVID-19, as well as decrease of sales order, and our unfavorable selling
price which led to our products became less attractive to customers. In addition, our petfood manufacturing activities were suspended
in 2022 because our remaining petfood production facility was frozen by the court and became subject to a bankruptcy proceeding. On the
other hand, on October 31, 2021, we acquired 51% equity interests of Far Ling&#8217;s Inc and 100% equity interests of Bo Ling&#8217;s
Chinese Restaurant, Inc. This resulted in an increase of $2,467,544 in restaurant revenue in 2022 from food and beverage sales to customers
as compared to 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Year Ended December 31, 2021 Compared to Year
Ended December 31, 2020</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our total revenue from continuing operations increased
by $458,294 or 74% when comparing 2021 to 2020, among which, revenue generated from pet chews decreased by $12,984 or 22%, revenue from
dried pet snacks decreased by $24,067 or 8%, revenue generated from wet canned petfoods decreased by $73,357 or 87%, from the year ended
December 31, 2020 to the year ended December 31, 2021, respectively. In addition, revenue generated from dental health snacks decreased
by $13,788 or 69%, from the year ended December 31, 2020 to the year ended December 31, 2021. The decrease in petfood sales was primarily
due to our inability to fulfill customer orders on a timely basis due to disruption of supply chain and logistics caused by the COVID-19,
as well as decrease of sales order, and our unfavorable selling price which led to our products became less attractive to customers. On
the other hand, on October 31, 2021, we acquired 51% equity interests of Far Ling&#8217;s Inc and 100% equity interests of Bo Ling&#8217;s
Chinese Restaurant, Inc. This resulted in an increase of $606,463 in restaurant revenue when we sold food and beverage to customers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The revenue generated from different countries
from our continuing operations are set forth as following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December 31</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2022 vs</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2021 vs</b></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2022</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2021</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2020</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2021</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2020</b></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>$</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>$</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>$</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 40%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">South Korea</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">37,320</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">34,378</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-100</span></td>
    <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">9</span></td>
    <td style="width: 1%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">China</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">25,849</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">342,857</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">382,497</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-92</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-10</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">United Kingdom</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Germany</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,074,007</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">606,463</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">407</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">100</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other countries</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">97,576</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">208,715</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-100</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">53</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: Sale tax and addition</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,123</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,121</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,789</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">-64</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total revenues from continuing operations</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,098,733</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,081,095</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">622,801</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">187</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#8220;Other countries&#8221; is comprised of
all countries whose revenues, individually, were less than 10% of the Company&#8217;s revenues.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 53; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Year Ended December 31, 2022 Compared
to Year Ended December 31, 2021</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overall, in terms of revenue from our continuing
operations, our petfood sales to the China domestic market and overseas market both significantly decreased in 2022 as compared to 2021,
mainly due to decreased sales volume of our products as affected by the negative impact of COVID-19 as discussed above, as well as decrease
in sales orders, and our unfavorable selling price. On the other hand, revenue from United States increased by $2,467,544 in 2022 as compared
to 2021 attributable to the restaurant business we acquired in October 2021 and we had 12 months operations in 2022 as compared to only
2 months operations in 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Year Ended December 31, 2021 Compared to Year
Ended December 31, 2020</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overall, in terms of revenue from our continuing
operations, our petfood sales to China domestic market and overseas market both significantly decreased in 2021 as compared to 2020,
mainly due to decreased sales volume of our products as affected by the negative impact of COVID-19 (coronavirus) as discussed above,
as well as decrease in sales orders, and our unfavorable selling price. On the other hand, revenue from United States increased by $606,463
in 2021 as compared to 2020 attributable to the restaurant business we acquired in October 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of revenues from continuing operations
</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cost of revenues from our continuing operations
is primarily comprised of the cost of our raw materials, labor and overhead costs. Our cost of revenues from continuing operations, increased
by $1,276,233 or 165.75% for the year ended December 31, 2022 as compared to the year ended December 31, 2021, primarily due to increased
food and beverage costs, labor costs and overhead costs associated with our restaurant business. Cost of revenues associated with our
petfood sales was immaterial in 2022. Our cost of revenues as a percentage of revenue was 66.03% and 71.21% for the years ended December
31, 2022, and 2021, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our cost of revenues is primarily comprised of
the cost of our raw materials, labor and factory overhead. Our cost of revenues from continuing operations, increased by $320,273 or 71.22%
for the year ended December 31, 2021 as compared to the year ended December 31, 2020. On October 31, 2021, we acquired 51% equity interests
of Far Ling&#8217;s Inc. and 100% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. This resulted in an increase of $606,463
in food service revenue and related costs. Our cost of revenues as a percentage of revenue was 71.22% and 72.21% for the years ended December
31, 2021, and 2020, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Gross margin from continuing operations
</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our gross margin from continuing operations was
33.97% for the year ended December 31, 2022, compared with gross margin of 28.78% for the year ended December&#160;31, 2021. The improvement
in gross margin was mainly due to increased gross margin of our restaurant business and changes in related sales mix of food and beverage
products in 2022 as compared to 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our gross margin was 28.78% for the year ended
December 31, 2021, compared with gross margin of27.79% for the year ended December&#160;31, 2020. The improvement in gross margin was
mainly due to change in sales mix and more high margin petfood products being sold in 2021 as compared to 2020, and also affected by
increased gross margin from our restaurant business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Operating expenses from continuing operations
</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Operating expenses from our continuing operations
were $4,100,549, and $3,971,720 for the years ended December&#160;31, 2022 and 2021, respectively, an increase of $128,829, or 3.24%.
The ratio of operating expenses as a percentage of revenue decreased from 367.38% for the year ended December 31, 2021 to 132.33% for
the year ended December 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Selling expense from our continuing operations
was $91,370 and $74,278 for the years ended December 31, 2022, and 2021, respectively, an increase of $17,092 or 23.01%. The increase
in our selling expense was in line with our increased restaurant business segment revenue in 2022. As our revenue increased, our marketing
campaign related costs and sales commission paid to our sales teams increased in 2022 as compared to 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and administrative expenses from our continuing
operations was $4,002,346, and $3,541,872 for the years ended December 31, 2022 and 2021 respectively, representing an increase of $460,474,
or 13.00%. The main reason for the increase was mainly due to increased depreciation and amortization expenses related to our restaurant
business.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 54; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Operating expenses from continuing operations
were $3,971,720, and $669,338 for the years ended December&#160;31, 2021 and 2020, respectively, an increase of $3,302,382, or 493.38%.
The ratio of operating expenses as a percentage of revenue increased from 107.47% for the year ended December 31, 2020 to 367.38% for
the year ended December 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Selling expense from continuing operations was
$74,278 and $85,744 for the years ended December 31, 2021, and 2020, respectively, a decrease of $11,466 or 13.37%. The decrease in our
selling expense was in line with our decreased petfood revenue in 2021. As our revenue declined, our distribution costs, sales promotion
and marketing campaign related costs and sales commission paid to our sales teams decreased in 2021 as compared to 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">General and administrative expenses from continuing
operations was $3,541,872, and $583,594 for the years ended December 31, 2021 and 2020 respectively, representing an increase of $2,958,278,
or 506.91%. The main reason for the increase was mainly due to the company&#8217;s payment of certain legal costs, an increase in consulting
service fees and increased depreciation and amortization expenses related to our restaurant business.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Impairment of goodwill was $0, $355,570 and $0
for the years ended December 31, 2022, 2021 and 2020, respectively. There was no such goodwill impairment in 2022 and 2020. In connection
with our acquisition of restaurant business, we recognized a goodwill of $355,570 as of the acquisition date. However, due to our significant
net loss in fiscal year 2021, goodwill of $355,570 has been fully impaired for the year ended December 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Loss from operations from continuing operations</i>.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our loss from operations associated with our continuing
operations was $3,048,016 for the year ended December 31, 2022, while our loss from operations was $3,660,592 for the year ended December
31, 2021. Our operating loss as a percentage of total revenues was negative 98.36%, and negative 338.60% for the years ended December
31, 2022 and 2021, respectively. The continuous loss from operation was mainly due to increased operating expenses in 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our loss from operations associated with our continuing
operations was $3,734,079 for the year ended December 31, 2021, while our loss from operations was $496,231 for the year ended December
31, 2020. Our operating loss as a percentage of total revenues was negative 370.59%, and negative 79.68% for the years ended December
31, 2021 and 2020, respectively. The continuous loss from operation was mainly due to increased operating expenses in 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Income taxes expense from continuing operations</i>.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to our continuous operating loss for the years
ended December 31, 2022, 2021 and 2020, we reported minimal income tax benefit for those years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Net loss from discontinued operations </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 16, 2022, the People&#8217;s Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of
bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, Tiandihui is now subject to the bankruptcy
proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected
to be completed by the end of 2023. As a result, the operation results of Tiandihui was presented as discontinued operations as of December
31, 2022<span style="font-family: Times New Roman, Times, Serif">.</span> In the consolidated statements of operations and comprehensive
income (loss), result from discontinued operations is reported separately from the income and expenses from continuing operations and
prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued
operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are
considered to continue after the disposal of the discontinued operations. Our net loss from discontinued operations amounted to $339,054,
$2,645,831 and $2,565,197 for the years ended December 31, 2022, 2021 and 2020, respectively.</p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Net loss</i></b>.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the above, our total net income
was $855,013 for the year ended December 31, 2022, compared to the net loss of $6,715,958 for the year ended December 31, 2021. The increase
in our net income was due to increased revenue from our restaurant business segment and increased investment income for the year ended
December 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 55; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our total net loss was $6,715,958 or the year
ended December 31, 2021, compared to the net loss of $874,668 for the year ended December 31, 2020. The increase in our net loss was due
to increased operating expenses as discussed above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Going Concern and Capital Resources</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our consolidated financial statements have been
prepared assuming we will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in
the normal course of business. We discontinued our petfood business during the first quarter of 2023 and currently our revenue is substantially
generated from the restaurant business segment. Our business turnaround depends, in part, on our ability to successfully introduce manage
and acquire new restaurants. If we are not able to effectively manage and acquire new restaurants that successfully generate revenue,
we may not be able to grow and maintain our business as anticipated, and our sales may decline and our future business, financial condition
and results of operations may be materially adversely affected. In addition, as of December 31, 2022, there were still various pending
lawsuits, legal claims, proceedings, arbitrations and bankruptcy proceedings that could impair our future ability to continue as a going
concern<b>. </b>Furthermore, our business operations may be further affected by the ongoing COVID-19 pandemic. There can be no assurances
that future revenue or capital infusion will be sufficient to enable us to develop our business to a level where we will be profitable
or continuously to generate positive cash flows.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December 31, 2021, we have
incurred a net loss of approximately $6.72 million and our cash used in operating activities amounted to approximately $3.45 million.
For the year ended December 31, 2022, our revenue from the restaurant business segment increased by approximately $2.5 million as compared
to 2021 and we reported a net income of approximately $0.86 million and cash flows from operating activities of approximately $0.85 million
in 2022. However, due to the sharp rise in market prices of raw materials, the lack of operational efficiency of our production facilities
and our inability to make bank loan repayment upon maturity, we suspended our petfood production and normal business operations and we
were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations in May 2020 factors including
the Covid pandemic, the increase in cost of raw materials required for petfood production;&#160;accepting less orders in an attempt to
avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a decrease in our petfood revenue from $0.47
million in 2021 and to only $0.02 million in 2022. Additionally, our remaining petfood production facility was frozen by the court and
became subject to a bankruptcy proceeding. We decided to discontinue our petfood manufacturing business segment in the first quarter 2023
due to the above operational challenges. As a result, it is uncertain our future revenue and cash flows will be sufficient to support
our growth. In addition, although we received approximately $6 million net proceeds from the issuance of common shares to certain investors
during fiscal year 2022, there can be no assurances that future revenue or capital infusion will be sufficient to enable us to develop
our business to a level where it will be profitable or to generate positive cash flows. These factors raise substantial doubt about the
Company&#8217;s ability to continue as a going concern for the next twelve months from the date that our consolidated financial statements
are issued.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">
</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In assessing our liquidity, management monitors
and analyzes our cash and cash equivalent, our ability to generate sufficient revenue sources in the future, and our operating and capital
expenditure commitments. As of December 31, 2022, we had cash and cash equivalent and restricted cash of approximately $23.1 million.
We also had short-term investment of approximately $9.92 million, which are highly liquid and can be covered into cash and used in our
operations if needed. We also had an aggregate approximately $5.99 million loans (including approximately $4.98 million short-term loans
and approximately $0.51 million short-term loans from related parties). For the legal proceedings since December 31, 2019 regarding our
delayed repayment of certain bank loans upon maturity as described above, in March and April 2020, we received court rulings to require
us to make an aggregate RMB 54.54 million (approximately $8.35 million) to the financial institutions. On March 13, 2021, the land and
factory buildings above the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million), among which, $3,192,827
(RMB21.14 million) has been used to repay loan principal and accrued interest to CCB based on the court order. The repayment has been
completed as of the date of this filing. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province
made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered
in bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings which has not been completed
as of the date of this filing and are expected to be completed by the end of 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 56; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on our current financial conditions, our
cash balance and revenues generated from our business operations may not be currently sufficient and cannot be projected to cover our
future operating expenses and meet our obligations as they become due for the next twelve months after the date that our financial statements
are issued.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management&#8217;s plan to alleviate the substantial
doubt about our ability to continue as a going concern include attempting to improve our business profitability, generating sufficient
cash flow from our operations to meet our operating needs on a timely basis, and obtaining additional working capital funds through debt
and equity financings in order to meet our anticipated cash requirements. We also plan to evaluate and identify suitable strategic or
acquisition opportunities, complete such transactions on commercially favorable terms, or successfully integrate business operations,
infrastructure and management philosophies of acquired businesses and companies. Due to the effects discussed above, to the extent that
we experience an adverse operating environment, incur unanticipated capital expenditures, or if we decide to accelerate our growth, then
substantial additional financing may be required. Currently, we are working to improve our liquidity and capital sources primarily through
financial support from our principal shareholder and the exploration of additional debt or equity financing possibilities. In order to
fully implement our business plan and sustain continued growth, we may also need to raise capital from outside investors. On July 26,
2022, we completed a private placement of securities, and entered into a securities purchase agreement with eight accredited investors
pursuant to which we sold to the investors an aggregate 4,000,000 of our common shares, at a price of $1.50 per share and warrants at
a price of $0.01 per warrant&#160;to purchase up to an aggregate 4,000,000 of our common shares, for gross proceeds of $6,040,000. Our
expectation, therefore, is that we will seek to access the capital markets in both the U.S. and China to obtain additional funds as needed.
At the present time, however, we do not have commitments of funds from any third party. No assurance can be given that additional financing,
if required, would be available on favorable terms or at all. If we do not secure capital needed for our operations, we may have to temporarily
suspend or to terminate our operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on above reasons, there is a substantial
doubt about the Company&#8217;s ability to continue as a going concern for the next 12 months from the date of this filing.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year ended December 31, 2022, our cash
used in operating activities was $2,072,715, cash used in investing activities was $1,332,827, cash provided by financing activities was
$6,055,480, and had the positive effect of prevailing exchange rates on our cash of $985,263. During the year ended December 31, 2021,
our cash used in operating activities was $3,299,563, cash used in investing activities was $1,642,776, cash provided by financing activities
was $17,952,057, and had the negative effect of prevailing exchange rates on our cash of $247,807. During the year ended December 31,
2020, our cash used in operating activities was $2,156,774, cash provided by investing activities was $3,355,189, cash used in financing
activities was $1,060,839, and had the positive effect of prevailing exchange rates on our cash of $106,910. &#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities for the
year ended December 31, 2022 totaled $2,072,715 (including cash flows of $ 1,977,789 used in operating activities from our continuing
operations and cash flows of $94,926 used in operating activities from discontinued operations). The activities were mainly comprised
of a net income of $803,700, depreciation and amortization of $17,114, fair value change of short-term investments $4,161,093, inventory
write-down of $11,532, a increase in prepayment and other current net assets of $1,017,261, an increase in other current liabilities of
$1,054,749, and a decrease in accounts payable of $305,382.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities for the
year ended December&#160;31, 2021 totaled $3,299,563 (including cash flows of $8,154,363 used in operating activities from our continuing
operations and cash flows of $4,854,800 provided by operating activities from discontinued operations).&#160;The activities were mainly
comprised of a net loss of $6,120,308, depreciation and amortization of $466,720, fair value change of short-term investments&#160;$495,265,
bad debt provision $2,168 a decrease in net accounts receivable of $127,057, a decrease in Operating lease liabilities of $4,830,456,
an increase in prepayment and other current net asset $793,726, an increase in other current liabilities of $793,726,&#160;and an increase
in account payable of $64,427.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 57; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities for the
year ended December&#160;31, 2020 totaled $2,156,774 (including cash flows of $755,118 used in operating activities from our continuing
operations and cash flows of $1,401,656 used in operating activities from discontinued operations).&#160;The activities were mainly comprised
of a net loss of $874,668, depreciation and amortization of $72,344, fair value change of short-term investments&#160;$2,120,241, an increase
in interest payable&#160;$60,733, an increase in net accounts receivable of $654,246, a decrease in net inventory of $304,953, an increase
in prepayment and other current net asset $57,561, a decrease in other current liabilities of $1,017,864,&#160;and a decrease in account
payable of $68,095.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in&#160;investing activities for
the year ended December&#160;31, 2022 totaled $1,332,827 from our continuing operations, primarily include purchase of short-term investments&#160;of
$45,418,240 and proceeds from sale of short-term investments&#160;of $41,150,967. There was no cash used in our discontinued operations
during the year ended December 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in&#160;investing activities for
the year ended December&#160;31, 2021 totaled $1,642,776 from our continuing operations, primarily include cash obtained from business
acquisition of $171,827, payment for a business acquisition of $1,020,000, purchases of short-term investments&#160;of $4,372,809 and
proceeds from sale of short-term investments&#160;of $3,578,206. There was no cash used in our discontinued operations during the year
ended December 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by&#160;investing activities
for the year ended December&#160;31, 2020 totaled $3,355,189 (including cash flows of $3,172,293 provided by operating activities from
continuing operations and cash flows of $182,896 from discontinued operations), primarily include purchase of short-term investments&#160;of
$38,743,908, proceeds from sale of short-term investments&#160;of $42,146,183, and payments to acquire property, plant and equipment&#160;of&#160;$47,086.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December&#160;31, 2022, net
cash provided by financing activities from continuing operations was $6,055,480, which is from the proceeds from issuance of common shares
of $6,017,781.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December&#160;31, 2021, net
cash provided by financing activities was $17,952,057 (including cash flows of $21,556,174 provided by financing activities from continuing
operations and cash flows of $3,604,117 used in discontinued operations), primarily include Proceeds from issuance of common shares of
$20,222,188, Repayments of short term loans of $1,458,040, and Repayments of short term loans - related parties of $22,302.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the year ended December&#160;31, 2020, net
cash used in financing activities was $1,060,839 (including cash flows of $1,365,936 used in financing activities from continuing operations
and cash flows of $305,097 provided by discontinued operations), primarily include proceeds from borrowing of short-term loans of $107,829,
borrowing of short-term loan-related parties of $49,350, and repayment of short term loan of $999,448.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Loan facilities</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before the discontinued operations of Tiandihui,
from 2018, 2019 and 2020, we secured the following revolving lines of credit:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 10, 2016, we obtained a line of credit
of approximately $705,676 (RMB 4,900,000) from Industrial &amp; Commercial Bank of China - Qingdao Shinan Second Branch. The borrowing
under the line of credit was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. Under the term of the loan documentation, the loan
term commenced on the date the borrowed capital was transferred to the borrower and continued until the all principal and accrued interest
thereon were repaid in full. On June 6, 2017, we drew down the full amount of this loan; the term of this loan is 15-day, with this loan
bearing interest at approximately 120% of the prevailing PRC prime rate. On July 6, 2017, this loan was repaid in full. On July 12, 2017,
we obtained a new line of credit of approximately $412,371 (RMB2,800,000) with the same lender. On July 14, 2017, we drew down the full
amount of this loan. The loan maturity date is July 10, 2018 with annual interest rate of 5.22%. On July 9, 2018, this loan was repaid
in full and the line of credit was recovered. On August 2, 2018, we drew down the full amount of this loan. The loan maturity date is
July 16, 2019 with annual interest rate of 5.22%. In July 2019 this loan was repaid in full.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 58; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 25, 2017, we obtained a line of credit
of approximately $290,361 (RMB 2,000,000) from China Postal Savings Bank &#8211; Qingdao Weihai Road Sub Branch. The borrowing under the
line of credit was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. Under the term of the loan documentation, the loan term commenced
on the date the borrowed capital was transferred to the borrower and continued until the all principal and accrued interest thereon are
repaid in full. On March 29, 2017, we drew down the full amount of this loan. The loan maturity date is March 28, 2018, bearing interest
at approximately 140% of the prevailing PRC prime rate. On March 16, 2018, this loan was repaid in full and the line of credit is recovered.
On March 21, 2018, we drew down the full amount of this loan. The loan maturity date is March 19, 2019 with annual interest rate of 6.96%.
We made partial repayment of this loan during the year ended December 31, 2018 and the outstanding balance on this loan was approximately
$147,000 (RMB 1,008,675) as of December 31, 2018. In 2019 we repaid the rest of the loan in full.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 23, 2017, we obtained a line of credit
of approximately $614,779 (RMB 4,000,000) from China Postal Savings Bank &#8211; Qingdao Weihai Road Sub Branch (&#8220;CPSB&#8221;).
The borrowing under the line of credit was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. Under the term of the loan documentation,
the loan term commenced on the date the borrowed capital was transferred to the borrower and continued until the all principal and accrued
interest thereon are repaid in full. On December 13, 2017, we drew down the full amount of this loan. The loan maturity date is December
12, 2018 with annual interest rate of 5.655%. On November 14, 2018, this loan was repaid in full and the line of credit is recovered.
On November 19, 2018, we drew down the full amount of this loan. The loan maturity date is November 18, 2019 with annual interest rate
of 5.22%. In 2019 we didn&#8217;t repay the loan when it came due, and the outstanding balance on this loan was approximately $608,893
(RMB 3,972,965) as of December 31, 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 29, 2019, we entered a line of credit
of approximately $845,732 (RMB 5,900,000) from China Postal Savings Bank - Qingdao Branch. The borrowing under the line of credit was
guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. The term of this loan is one-year; the loan maturity date is 17, 2020, with this
loan bearing interest rate of 5.0025% at approximately 150% of the prevailing PRC prime rate. In 2020 we didn&#8217;t repay the loan when
it became due. The outstanding balance of this loan was approximately $903,975 (RMB 5,898,347) as of December 31, 2020</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 16, 2022, the People&#8217;s Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of
bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims and our defaulted loans
payable are now subject to the bankruptcy proceedings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Compared to $5,440,350 short-term loans outstanding
as of December&#160;31, 2021, we had $4,980,334 short-term loans outstanding as of December&#160;31, 2022. In connection with the discontinued
operations of Tiandihui, which is now under bankruptcy proceedings, the short-term loans have been reclassified and included in &#8220;liabilities
held for sales&#8221; as reflected in the consolidated balance sheets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our long-term future capital requirements will
depend on many factors, including our level of revenue, the timing and extent of our spending to support the maintenance and growth of
our operations, the expansion of our sales and the continued market acceptance of our products and projects.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to incur additional costs associated
with being a reporting company in the United States, primarily due to increased expenses that we incur to comply with the requirements
of the Sarbanes-Oxley Act of 2002, as well as costs related to accounting and tax services, legal expenses and investor and stockholder-related
expenses. These additional long-term expenses may require us to seek other sources of financing, such as additional borrowings or public
or private equity or debt capital. The availability of these other sources of financing will depend upon our financial condition and results
of operations as well as prevailing market conditions, and may not be available on terms reasonably acceptable to us or at all.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 59; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Regulatory Restrictions on Capital Injections</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We used proceeds from our initial public offering
and subsequent offerings to fund our business. Accordingly, the following regulations have to be followed, regarding capital injections
to foreign-invested enterprises.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Chinese regulations relating to investments
in offshore companies by Chinese residents</i>. SAFE promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on
Domestic Residents&#8217; Financing and Round-trip Investment through Offshore Special Purpose Vehicles, or SAFE Circular 37, on July
4, 2014. SAFE Circular 37 requires Chinese residents to register and update certain investments in companies incorporated outside of China
with their local SAFE branch. SAFE also subsequently issued various guidance and rules regarding the implementation of SAFE Circular 37,
which imposed obligations on Chinese subsidiaries of offshore companies to coordinate with and supervise any Chinese-resident beneficial
owners of offshore entities in relation to the SAFE registration process.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may not be aware of the identities of all of
our beneficial owners who are Chinese residents. We do not have control over our beneficial owners and cannot assure you that all of our
Chinese -resident beneficial owners will comply with SAFE Circular 37 and subsequent implementation rules. The failure of our beneficial
owners who are Chinese residents to register or amend their SAFE registrations in a timely manner pursuant to SAFE Circular 37 and subsequent
implementation rules, or the failure of future beneficial owners of our Company who are Chinese residents to comply with the registration
procedures set forth in SAFE Circular 37 and subsequent implementation rules, may subject such beneficial owners or our Chinese subsidiaries
to fines and legal sanctions, which may be substantial. Failure to register may also limit our ability to contribute additional capital
to our Chinese subsidiaries and limit our Chinese subsidiaries&#8217; ability to distribute dividends to our Company. These risks may
have a material adverse effect on our business, financial condition and results of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">China regulates loans to and direct investment
in Chinese entities by offshore holding companies and there is governmental control of currency conversion. We are an offshore holding
company conducting our operations in China through our wholly owned subsidiary Tiandihui. As an offshore holding company, we may make
loans and additional contributions to Tiandihui subject to approval from government authorities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any loan to Tiandihui, which is treated as a foreign-invested
enterprise under Chinese law, is subject to Chinese regulations and foreign exchange loan registrations. In January 2003, the China State
Development and Reform Commission, SAFE and Ministry of Finance jointly promulgated the Circular on the Interim Provisions on the Management
of Foreign Debts, or the Circular 28, limiting the total amount of foreign debt a foreign-invested enterprise may incur to the difference
between the amount of total investment approved by the Ministry of Commerce or its local counterpart for such enterprise and the amount
of registered capital of such enterprise, and requiring registration of any such loans with SAFE. As of December 31, 2016, the amount
of approved total investment of Tiandihui was $2,707,490 (RMB 18,800,000) and TDH HK have invested the same amount of $2,707,490 (RMB
18,800,000) into Tiandihui, which means Tiandihui needs to obtain additional approval for total investment amount from the local counterpart
of Ministry of Commerce. During 2017, we have successfully obtained the investment approval from Ministry of Commerce for our proceeds
of IPO.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2015, SAFE issued the Circular Concerning
the Reform of the Administration of the Settlement of Foreign Currency Capital of Foreign-Invested Enterprises, or SAFE Circular 19, which
became effective in June 2015. SAFE Circular 19 regulates the conversion by a foreign-invested enterprise of foreign currency registered
capital into RMB by restricting how the converted RMB may be used. Furthermore, SAFE promulgated a circular in June 2016, SAFE Circular
16, which further revises some clauses in the SAFE Circular 19. SAFE Circular 19 and 16 provide that the capital-account foreign exchange
incomes of a domestic enterprise shall not be directly or indirectly used for expenditures that are forbidden by relevant laws and regulations,
for purposes that are not included in the business scope approved by the applicable government authority, shall not be directly or indirectly
used for investments in securities or for any other kind of wealth-managing investments than banks&#8217; principal-secured products unless
otherwise prescribed by other laws and regulations, shall not be directly or indirectly used for issuing RMB entrusted loans (unless expressly
permitted in the business scope approved by the competent governmental authorities) or repaying inter-enterprise loans (including advances
by the third party) or repaying bank loans in RMB which have been sub-lent to third parties, shall not be used for granting loans to non-affiliated
enterprises unless expressly permitted in the business scope and shall not be used for the construction or purchase of real estate not
for self-use (except for real estate enterprises). In addition, SAFE supervises the flow and use of the RMB capital converted from foreign
currency registered capital of a foreign-invested company by further focusing on ex post facto supervision and violations. These two circulars
may limit our ability to use the net proceeds from this offering to invest in or acquire any other Chinese companies in China, which may
adversely affect our liquidity and our ability to fund and expand our business in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 60; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Capital Resources</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>As of December 31, 2022 and 2021</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table provides certain selected
balance sheets comparisons between years ended December&#160;31, 2022 and 2021:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fluctuation</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: center">ASSETS</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; text-align: left; text-indent: -9pt; padding-left: 9pt">Cash and cash equivalents</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">21,857,125</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">18,025,966</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">3,831,159</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">21</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Short-term investments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9,922,366</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,428,446</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,493,920</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">124</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">29,318</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">36,835</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(7,517</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-20</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Advanced to suppliers, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,789</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">10,986</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(8,197</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-75</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Inventories, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">987</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">51,423</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(50,436</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-98</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Prepayment and other current assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">127,834</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,158,867</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,031,033</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-89</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Current Assets held for sale associated with discontinued operation of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,844,335</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,355,317</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,513,982</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-75</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">Total current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">33,781,754</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">31,067,840</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,713,914</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">9</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Property, plant and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">698,044</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">781,670</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(83,626</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-11</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Land use rights, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">481,840</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">535,632</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(53,792</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-10</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating lease right-of-use assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">783,658</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,604,365</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(3,820,707</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-83</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Non current assets held for sale associated with discontinued operation of Tiandihui</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">768,101</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">879,253</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(111,152</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-13</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total non-current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,731,643</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,800,920</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,069,277</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-60</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">36,513,397</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">37,868,760</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(1,355,363</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">-4</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: center; text-indent: -9pt; padding-left: 9pt">LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">491,850</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">506,881</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(15,031</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-3</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Account payable - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,033</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,033</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">100</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Advances from customers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,024</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,959</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,935</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-35</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Bank overdrafts</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">74,425</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">79,851</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(5,426</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-7</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Short term loans - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">266,451</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">285,878</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(19,427</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-7</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Taxes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,923</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">24,077</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(12,154</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-50</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Due to related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">55,747</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">36,410</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">19,337</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">53</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating lease liabilities, current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">212,814</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">268,403</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(55,589</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-21</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,212,420</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">533,668</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">678,752</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">127</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Current Liabilities held for sale associated with discontinued operation of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,337,657</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">17,898,674</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,561,017</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-31</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">Total current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,675,344</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">19,650,801</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,975,457</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-25</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating lease liabilities - related party, non-current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">683,113</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4,846,760</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(4,163,647</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-86</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">non-current Liabilities held for sale associated with discontinued operation of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,037</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,132</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(95</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-8</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">15,359,494</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">24,498,693</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(9,139,199</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">-37</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><!-- Field: Page; Sequence: 61; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We maintain cash and cash equivalents in mainland
China, Hong Kong, New Zealand and U.S. on December 31, 2022 and 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Country</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">China (Mainland)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,777,357</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">26,367</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">China (Hong Kong)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">80,021</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">14,099,208</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Hong Kong (through a broker account)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">189,056</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">157,974</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">New Zealand (through a broker account)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">16,246,621</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,232,822</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">U.S.</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,564,070</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,509,595</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 9pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">21,857,125</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">18,025,966</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The majority of our cash balances at December
31, 2022 and 2021 are in form of USD and held in a broker accounts in New Zealand and Hong Kong and bank accounts at financial institutions
located in China. Cash held in banks in China is not insured. In 1996, the Chinese government introduced regulations relaxing restrictions
on the conversion of the RMB; however restrictions still remain, including restrictions on foreign-invested entities. Foreign-invested
entities may only buy, sell or remit foreign currencies after providing valid commercial documents at only those banks authorized to conduct
foreign exchanges. Furthermore, the conversion of RMB for capital account items, including direct investments and loans, is subject to
China government approval. Chinese entities are required to establish and maintain separate foreign exchange accounts for capital account
items. We cannot be certain Chinese regulatory authorities will not impose more stringent restrictions on the convertibility of the RMB,
especially with respect to foreign exchange transactions. Accordingly, cash on deposit in banks in China is not readily deployable by
us for use outside of China.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cash and cash equivalents and restricted
cash</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December&#160;31, 2022, cash and cash equivalents
were $21,857,125, compared to $18,025,966 at December&#160;31, 2021. The components of this increase of $3,831,159 reflected below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Net cash used in operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(2,072,715</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(3,299,563</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net cash provided by investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,332,827</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,642,776</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net cash provided by (used in) financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6,055,480</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17,952,057</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Exchange rate effect on cash and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">985,263</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(247,807</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Net cash inflow</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,635,201</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,766,911</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We had current restricted cash of $1,289,051 and
$1,485,009 as of December 31, 2022 and 2021, respectively, among which, $1,289,051 and $1,485,009 has been frozen by the court as a result
of our current pending legal proceedings as disclosed above, respectively. Due to the pending legal proceedings, certain of our bank deposit
under Tiandihui has been temporarily frozen by the court. In connection with the discontinued operations of Tiandihui, such restricted
cash was reclassified and included in &#8220;current assets held for sales associated with discontinued operation of Tiandihui&#8221;
on the consolidated balance sheets.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Short-term investments</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the years ended December 31, 2022 and 2021,
the Company acquired equity securities of certain publicly listed companies through various open market transactions. The Company&#8217;s
investments in marketable securities are accounted for pursuant to ASC 321 and reported at their readily determinable fair value as quoted
by market exchanges in the consolidated balance sheets with changes in fair value recognized in earnings. Changes in fair value, including
realized gain of approximately $4.19 million and unrealized gain of approximately $0.03 million for the year ended December 31, 2022.
Changes in fair value, including realized gain of approximately $0.07 million and unrealized gain of approximately $0.5 million for the
year ended December 31, 2021, which were included in &#8220;investment income&#8221; in the accompanying consolidated statements of operations
and comprehensive loss.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 62; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Accounts receivable</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable, net as of December 31, 2022
was $29,318, an decrease of $7,517 compared to $36,835 as of December&#160;31, 2021. $29,421 and $19,221 allowance for credit losses was
recorded for the years ended December 31, 2022 and 2021, respectively.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Inventories</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December&#160;31, 2022, our inventory balance
was $987, a decrease of $50,436, or 98% compared to $51,423 as of December&#160;31, 2021. The decrease was due to our petfood manufacturing
activities were suspended in 2022 because our remaining petfood production facility was frozen by the court and became subject to a bankruptcy
proceeding.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Due to related parties</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, the balances of due to
related parties were $55,747, an increase of $19,337 compared to $36,410 on December 31, 2021. The balance of due to related parties represented
expenses incurred by related parties in the ordinary course of business, expense paid by related parties on behalf of the Company as well
as the loans the Company obtained from related parties for working capital purpose. The loans owed to the related parties are interest
free, unsecured and repayable on demand.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Property, plant and equipment, net</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment, net as of December&#160;31,
2022 were $698,044, an decrease of $83,626 compared to $781,670, as of December&#160;31, 2021. The decrease in balance of property, plant
and equipment was because certain amount associated with the bankruptcy proceedings of Tiandihui, has been reclassified and included in
&#8220;non-current assets held for sale associated with discontinued operations of Tiandihui&#8221; as reflected in the consolidated balance
sheets. Depreciation expense for the years ended December 31, 2022 and 2021 was $62,547 and $31,095, respectively.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Land use rights, net</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Land use rights, net as of December&#160;31, 2022
were $481,840, an decrease of $53,792 compared to $535,632 as of December&#160;31, 2021. During the years ended December 31, 2022 and
2021, amortization expense amounted to $53,975 and $433, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Accounts payable </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts payable represents our commercial credit
offered to the suppliers and notes payable was the bank acceptance notes to suppliers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts payable decreased by $15,031, to $491,850
as of December 31, 2022, from $506,881 as of December 31, 2021 due to our severe shortage of sales orders in 2022, we have reduced material
purchases and inventory.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 63; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Taxes payable</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Taxes payable represents the accrued enterprise
income tax at the year end.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Balance of taxes payable as of December 31, 2022
was $11,923 representing an decrease of $12,154, or 50%, compared with balance of $24,077 as of December 31, 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Tabular Disclosure of Contractual Obligations</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have certain potential commitments that include
future estimated payments. Changes in our business needs, cancellation provisions, changing interest rates, and other factors may result
in actual payments differing from the estimates. We cannot provide certainty regarding the timing and amounts of payments.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, we had the following
contractual obligations:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Payments Due by Period</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">Contractual Obligations</td><td style="font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt; font-style: italic">&#160;</td><td style="font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Less than<br/> 1 year</td><td style="padding-bottom: 1.5pt; font-style: italic">&#160;</td><td style="font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">1-3 years</td><td style="padding-bottom: 1.5pt; font-style: italic">&#160;</td><td style="font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">3-5 years</td><td style="padding-bottom: 1.5pt; font-style: italic">&#160;</td><td style="font-style: italic; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">More than<br/> 5 years</td><td style="padding-bottom: 1.5pt; font-style: italic">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">(1) Debt Obligations</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">4,980,334</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">4,980,334</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">(2) Lease Obligations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">895,927</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">240,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">480,000</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">175,927</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,876,261</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,220,334</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">480,000</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">175,927</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(1)</span></td>
    <td>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2020, The Company was
in default on substantially all of the outstanding loans. On March 13, 2021, the land and factory buildings on the land owned by Tiandihui
were auctioned by the court for $5,098,461 (RMB33.14 million), of which, $3,192,827 (RMB21.14 million) has been used to repay loan principal
and accrued interest to CCB, which was repaid by April 2021. As of December 31, 2022, the Company had defaulted short-term loans payable
of $4,980,334. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling
and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings.
Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing,
the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</p></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify; text-indent: -18pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The Company has signed two lease agreements for office premises and restaurant premises. The remaining lease term of the Company&#8217;s leases ranges from approximately 1 to 4 years.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Off-Balance Sheet Arrangements</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under SEC regulations, we are required to disclose
off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, such
as changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that
are material to investors. An off-balance sheet arrangement means a transaction, agreement or contractual arrangement to which any entity
that is not consolidated with us is a party, under which we have:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Any obligation under certain guarantee contracts,</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Any retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets,</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Any obligation under a contract that would be accounted for as a derivative instrument, except that it is both indexed to our stock and classified in shareholder equity in our statement of financial position, and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Any obligation arising out of a material variable interest held by us in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or engages in leasing, hedging or research and development services with us.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 64; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not have any off-balance sheet arrangements
that we are required to disclose pursuant to these regulations. In the ordinary course of business, we enter into operating lease commitments,
and other contractual obligations. These transactions are recognized in our financial statements in accordance with generally accepted
accounting principles in the United States.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Trend Information</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other than as disclosed elsewhere in this annual
report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse
effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information
to be not necessarily indicative of future operating results or financial conditions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Critical Accounting Policies</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The discussion and analysis of our financial condition
and results of operations are based upon our audited consolidated financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States. The preparation of these audited consolidated financial statements requires us to
make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We evaluate our estimates
on an ongoing basis, including those related to revenue recognition and income taxes. We base our estimates on our historical experience
and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making
the judgments we make about the carrying values of our assets and liabilities that are not readily apparent from other sources. Because
these estimates can vary depending on the situation, actual results may differ from the estimates.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The critical accounting policies summarized in
this section are discussed in further detail in the notes to the audited consolidated financial statements appearing elsewhere in this
Annual Report. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable
financial information about our operating results and financial condition.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Use of Estimates</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information
that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived
with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information
is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful
lives and impairment of long-lived assets, allowance for credit losses, write-down in value of inventories and income taxes including
the valuation allowance for deferred tax assets. Estimates and assumptions are periodically reviewed and the effects of revisions are
reflected in the financial statements in the period they are determined to be necessary.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Inventories</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories, consisting of raw materials, work
in progress, and finished goods, are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis.
The valuation of inventory requires us to estimate excess and slow-moving inventory. We evaluate the recoverability of our inventory based
on assumption about expected demand, market conditions, forecasts prepared by its customers, sales contracts and orders in hand.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 65; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Impairment of Long-Lived Assets and Goodwill</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least
annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying
amount of the asset. The amount of impairment is measured as the difference between the asset&#8217;s estimated fair value and its book
value. The Company recorded impairment loss on long-lived assets other than goodwill of $6,833, $217,257 and $0 and for the years ended
December 31, 2022, 2021 and 2020, respectively.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s goodwill is tested for impairment
on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable.
In testing for goodwill impairment, the Company compares the fair value of its reporting unit to its carrying value including the goodwill
of that unit. If the carrying value, including goodwill, exceeds the reporting unit&#8217;s fair value, the Company will recognize an
impairment loss for the amount by which the carrying amount exceeds the reporting unit&#8217;s fair value. The loss recognized cannot
exceed the total amount of goodwill allocated to that reporting unit. The Company recorded impairment of goodwill of $0, $355,570, and
$0 for the years ended December 31, 2022, 2021 and 2020, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Lease Commitments</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 1, 2019, the Company adopted Accounting
Standards Update (&#8220;ASU&#8221;) No. 2016-02, Leases (together with all amendments subsequently issued thereto, &#8220;ASC Topic 842&#8221;),
using the modified retrospective method. The Company elected the transition method which allows entities to initially apply the requirements
by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing
this transition method, previously reported financial information has not been restated to reflect the application of the new standard
to the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance
within ASC Topic 842, which among others, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840
regarding lease identification, classification, and the accounting treatment of initial direct costs. The Company elected not to record
assets and liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Company
recognizes lease expenses for such leases on a straight-line basis over the lease term. In addition, the Company elected the land easement
transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it
has not historically been accounted for as a lease.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The initial lease liability is equal to the future
fixed minimum lease payments discounted using the Company&#8217;s incremental borrowing rate, on a secured basis. The lease term includes
option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial
measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any
lease incentives.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payments made under operating leases are charged
to the consolidated statements of operations and comprehensive loss on a straight-line basis over the lease period.&#160;The Company does
not have finance lease arrangements as of December 31, 2022 and 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Loss Contingencies</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company records accruals for certain of its
outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably
estimated. When a loss contingency is not both probable and estimable, the Company does not record an accrued liability but discloses
the nature and the amount of possible loss, if material, in the notes to the consolidated financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews the developments in contingencies
that could affect the amount of the provisions that has been previously recorded, and the matters and related possible losses disclosed.
The Company makes adjustments to provisions and changes to its disclosures accordingly to reflect the impact of negotiations, settlements,
rulings, advice of legal counsel, and updated information. The assessment of whether a loss is probable or reasonably possible, and whether
the loss or a range of loss is estimable, often involves complex judgments about future events. Management is often unable to estimate
the loss or a range of loss, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages,
or (iii) there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions.
In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including eventual loss,
fine, penalty or business impact, if any.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 66; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue Recognition</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is measured according to ASC Topic 606,
Revenue from Contracts with Customers. The Company currently generated revenue from two sources: sales of petfood products and revenue
from restaurant business operation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue for sale of products is derived from contracts
with customers, which primarily include the sale of petfood products. The Company recognizes revenue upon transfer of control of promised
goods in a contract with a customer in an amount that reflects the consideration the Company expects to receive in exchange for those
products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery
and risk of loss has transferred to the customer.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company started to generate revenue from restaurant
business operation when the Company acquired Far Ling&#8217;s Inc. and Bo Ling&#8217;s Chinese Restaurant, Inc. in late 2021. Revenue
from providing dining services and sales of meals is recognized at point when services are rendered. The Company recognizes revenues in
the form of restaurant sales at the time of the sale when payment is made by the customer, as the Company has completed its performance
obligation, namely the provision of food and beverage, and the accompanying customer service, during the customer&#8217;s visit to the
restaurant.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized net of any taxes collected
from customers that are subsequently remitted to governmental authorities, including value-added tax (&#8220;VAT&#8221;), business tax,
applicable local government levies. At the time revenue is recognized, allowances are recorded, with the related reduction to revenue,
for estimated sales returns based upon historical experience and related terms of customer arrangements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company elected to account for shipping and
handling fees that occur after the customer has obtained control of goods, for instance, free onboard shipping point arrangements, as
a fulfillment cost and accrues for such costs.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management has concluded that the disaggregation
level is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is
measured on the same basis as under the revenue standard.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Contract liabilities are recorded when consideration
is received from a customer prior to transferring the control of goods to the customer or other conditions under the terms of a sales
contract. As of December 31, 2022 and 2021, the Company recorded contract liabilities of $11,024 and $16,959, respectively, which were
presented as advances from customers on the accompanying consolidated balance sheets.&#160;During the years ended December 31, 2022, 2021
and 2020, the Company recognized $6,970, $163,074 and $56,983 of contract liabilities as revenue, respectively.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Foreign Currency Translation</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements
are presented in United States dollar (&#8220;$&#8221;), which is the reporting currency of the Company. The functional currency of TDH
Holdings, TDH HK, TDH Foods, TDH Income Corporation, Ruby21Noland LLC, Far Ling&#8217;s Inc, Bo Ling&#8217;s Chinese Restaurant, Inc and
TDH Petfood LLC is United States dollar. The functional currency of Tiandihui, Tiandihui Pet Foodstuffs, Tiandihui Foodstuffs Sales and
Chongai Jiujiu, is Renminbi (&#8220;RMB&#8221;). The functional currency of TDH Group BVBA is Euro (&#8220;&#8364;&#8221;). The functional
currency of TDH JAPAN is Yen (&#8220;&#165;&#8221;). For the subsidiaries whose functional currencies are RMB, Euro and Yen, results of
operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified
exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are
included in determining other comprehensive income or loss. Transaction gains and losses are reflected in the consolidated statements
of operations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 67; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exchange rates used to translate amounts in
RMB into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=RMB):</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Period Covered</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Balance<br/> Sheet<br/> Date Rates</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average<br/> Rates</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Year ended December 31, 2022</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">6.9646</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">6.7261</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt">Year ended December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6.3757</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6.4515</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exchange rates used to translate amounts in
Euro into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=&#8364;):</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Period Covered</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Balance<br/> Sheet<br/> Date Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average<br/> Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Year ended December 31, 2022</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">0.9383</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">0.9485</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt">Year ended December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">0.8831</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">0.8448</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exchange rates used to translate amounts in
Yen into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=&#165;):</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Period Covered</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Balance<br/> Sheet<br/> Date Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average<br/> Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Year ended December 31, 2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">115.0536</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">109.7430</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fair Value of Financial Instruments</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting guidance defines fair value as the
price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at
fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that
market participants would use when pricing the asset or liability.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company measures certain financial assets,
including the investment under the measurement alternative method and equity method on other-than-temporary basis, intangible assets and
fixed assets at fair value when an impairment charge is recognized.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 68; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting guidance establishes a fair value hierarchy
that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
A financial instrument&#8217;s categorization within the fair value hierarchy is based upon the lowest level of input that is significant
to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">Level 1 &#8212; Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.</p><div>

</div><p style="text-align: right; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">Level 2 &#8212; Include other inputs that are directly or indirectly observable in the marketplace.</p><div>

</div><p style="text-align: right; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt">Level 3 &#8212; Unobservable inputs which are supported by little or no market activity.</p><div>




</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting guidance also describes three main
approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The
market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets
or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement
is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that
would currently be required to replace an asset.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For certain of the Company&#8217;s financial instruments,
including cash and cash equivalents, restricted cash, short-term investment, accounts receivable, advances to suppliers, inventories,
prepayments and other current assets, accounts payable, notes payables, advances from customers, taxes payable, bank overdrafts, short
term loans and other current liabilities, the carrying amounts approximate their fair values due to the short maturities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Recently Issued Accounting Pronouncements
</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2020, the FASB issued ASU 2020-04,&#160;<i>Reference
Rate Reform, (Topic 848)</i>. The amendments in Topic 848 provide optional expedients and exceptions for applying GAAP to contracts, hedging
relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied by all entities
as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect to apply the amendments
prospectively through December 31, 2022. The Company did not utilize the optional expedients and exceptions provided by this standard
during the year ended December 31, 2021. The Company is evaluating the impact of this standard on its consolidated financial statements
and disclosures.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Impact of Inflation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not believe the impact of inflation on our
Company is material. Our operations are in China and China&#8217;s inflation rates have been relatively stable in the last three years:
3.7% in 2022, 1.1% in 2021, and 2.6% in 2020.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Impact of Foreign Currency Fluctuations</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not believe the impact of foreign currency
fluctuations on our Company is material. Regarding purchase of raw materials, we are subject to commodity price risks arising from price
fluctuations in the market prices of the raw materials. We have generally been able to pass on cost increases through price adjustments.
However, the ability to pass on these increases depends on market conditions influenced by the overall economic conditions in China.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Most of our oversea sales are denominated in US
dollars, for which our oversea sales are exempted from the risk of foreign currency fluctuation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have not had any foreign currency investments hedged by currency
borrowings or other hedging instruments. We manage our price risks through productivity improvements and cost-containment measures</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 69; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_007"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 6.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Directors and senior management</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth our executive officers
and directors, their ages and the positions held by them as of April 20, 2023:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="width: 30%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt"><b>Name</b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 7%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Age</b></span></td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 61%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt"><b>Position</b></span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top"><span style="font-size: 10pt">Dandan Liu</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">35</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">Chief Executive Officer, Class A Director</span></td></tr>
  <tr>
    <td style="vertical-align: top"><span style="font-size: 10pt">Feng Zhang</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">40</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">Chief Financial Officer, Class A Director</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top"><span style="font-size: 10pt">Caifen Zou<sup>(1) (2)&#160;(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">58</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">Class B Director, independent</span></td></tr>
  <tr>
    <td style="vertical-align: top"><span style="font-size: 10pt">Qiu Li <sup>(1) (2)&#160;(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">62</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">Class B Director, independent</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top"><span style="font-size: 10pt">Owens Meng <sup>(1) (2)&#160;(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">45</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">Class C Director, independent</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Member of the Audit Committee.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Member of the Compensation Committee.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Member of the Nominating and Corporate Governance Committee.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Dandan Liu</i> was appointed as the Company&#8217;s
Chief Executive Officer effective as of August 2, 2019 and Chair on September 15, 2021. Dandan Liu has served as a Class A director of
the Company since February 2019. Ms. Liu founded Beijing Houxin Investments Co., Ltd. in June 2012 and served as its Chief Executive Officer
and Chairman from June 2012 to July 2020. Ms. Liu&#8217;s valuable entrepreneurial, management, and investment experience together with
her in-depth knowledge of the Company provide her with the qualifications and skills to serve as a director of our Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Feng Zhang</i> was appointed as the Company&#8217;s
Chief Financial Officer on February 19, 2020. From August 2018 to September 2019, Feng Zhang worked as Senior Accounting Manager for Beijing
Longguang Energy Technology Co., Ltd. From July 2017 to July 2018, Mr. Zhang worked as Accounting Manager for Hebei Yinlong Renewable
Energy Co., Ltd. From March 2015 to June 2017, Mr. Zhang worked as Audit Manager for Beijing Xinghua Certified Public Accountants Firm
(Partnership). From June 2006 to February 2015, Mr. Zhang worked as Accounting Manager for Boda Instrument Group Co., Ltd. Mr. Zhang is
a Certified Public Accountant and received his bachelor degree in Assets Appraisal from Hebei Agricultural University.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Qiu Li</i> is an independent director of the
company. Ms. Li has been Senior Consultant of Hangzhou Guohan Financial Holding Co., Ltd. since November 2015. Between March 2010 and
October 2015, Ms. Li was director of audit of Hengfeng Bank Hangzhou Branch. Between November 1987 and March 2010, Ms. Li held several
managerial positions at Hengfeng Bank headquarter. Ms. Li is a China Certified Public Accountants (CPA). Ms. Li holds a Bachelor&#8217;s
degree in Management from Shandong Cadres Correspondence University. The Board of Directors determined that Ms. Li should serve as our
director based on her experience in business and accounting matters.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Caifen Zou</i> has served as Senior Advisor
of Shandong Renhe Guarantee Company since August 2019. From December 1993 to July 2019, Ms. Zou has served in a number of senior executive
roles within CITIC Bank Weihai Branch, including senior manager of Personal Credit Department, general manager of Retail Banking Department,
and deputy section chief of Accounting Department, etc. Ms. Zou received her Associate&#8217;s degree in Administration Management from
Shandong Normal University, and held Intermediate Accountant Qualification Certificate and Intermediate Economist Qualification Certificate
in China. The Board of Directors determined that Ms. Zou should serve as our director based on her experience and expertise in accounting,
management and internal controls.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 70; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Owens Meng</i> is an independent director.
Since September 2013, Owens Meng has been the managing director of Beijing Songlin Xinya Financial Consultants, Ltd. From November 2007
to September 2013, he served as chief representative of Sherb Consulting LLC Beijing Representative Office, and managing director of Sherb
&amp; Co, LLP, a mid-sized accounting firm which has audited more than 25 China-based, US publicly traded companies. From July 2003 to
October 2007, Mr. Meng worked as an audit manager for Grant Thornton Beijing. Mr. Meng received his CPA permit from the state of Delaware,
and is a member of China Institute of Certified Public Accountants (CICPA), and a Certified Internal Auditor of the Institute of Internal
Auditors. Mr. Meng holds a Bachelor&#8217;s degree in accounting and economics from Beijing Technology and Business University. Mr. Meng
has served as an independent director of China Customer Relations Centers, Inc. (Nasdaq: CCRC) since September 2014. Mr. Meng was nominated
as a director because of his experience in auditing, US GAAP and compliance issues.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under British Virgin Islands law, our directors
have a duty to act honestly, in good faith and with a view to our best interests. Our directors also have a duty to exercise the care,
diligence and skills that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to
us, our directors must ensure compliance with our memorandum and articles of association. We have the right to seek damages if a duty
owed by our directors is breached. The functions and powers of our board of directors include, among others:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">appointing officers and determining the term of office of the officers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">authorizing the payment of donations to religious, charitable, public or other bodies, clubs, funds or associations as deemed advisable;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">exercising the borrowing powers of the company and mortgaging the property of the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">executing checks, promissory notes and other negotiable instruments on behalf of the company; and maintaining or registering a register of mortgages, charges or other encumbrances of the company.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director may vote, attend a board meeting or
sign a document on our behalf with respect to any contract or transaction in which he or she is interested. A director must promptly disclose
the interest to all other directors after becoming aware of the fact that he or she is interested in a transaction we have entered into
or are to enter into. A general notice or disclosure to the board or otherwise contained in the minutes of a meeting or a written resolution
of the board or any committee of the board that a director is a shareholder, director, officer or trustee of any specified firm or company
and is to be regarded as interested in any transaction with such firm or company will be sufficient disclosure, and, after such general
notice, it will not be necessary to give special notice relating to any particular transaction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may receive such remuneration as
our board of directors may determine from time to time. Each director is entitled to be repaid or prepaid for all traveling, hotel and
incidental expenses reasonably incurred or expected to be incurred in attending meetings of our board of directors or committees of our
board of directors or shareholder meetings or otherwise in connection with the discharge of his or her duties as a director. The compensation
committee will assist the directors in reviewing and approving the compensation structure for the directors. Our board of directors may
exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to
issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation
of the company or of any third party.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director is not required to hold shares as a
qualification to office.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 71; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Compensation</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the annual compensation
paid by us for the years ended December 31, 2022 and 2021 to our principal executive officers.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: black 1.5pt solid"><span style="font-size: 10pt"><b>Name and principal position</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Year</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Salary <br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Bonus <br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Total Paid&#160;<br/>
($)</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 52%"><span style="font-size: 10pt">Dandan Liu</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: center">&#160;</td>
    <td style="width: 9%; text-align: center"><span style="font-size: 10pt">2022</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">85,000</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">35,000</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">120,000</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt"><span style="font-size: 10pt">CEO and director</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">60,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">60,000</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Feng Zhang </span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2022</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">45,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">45,000</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt"><span style="font-size: 10pt">CFO</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt">2021</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">45,000</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">&#160;&#160;&#160;-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">45,000</span></td>
    <td>&#160;</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Compensation Committee Interlocks and Insider
Participation</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our officers currently serves, or has
served during the last completed fiscal year, on the compensation committee or board of directors of any other entity that has one or
more officers serving as a member of our board of directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Director Compensation</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors are entitled to receive compensation
for their actual travel expenses for each Board meeting attended. We paid $10,000 compensation to each of our directors during each of
the&#160;years ended December&#160;31, 2022 and 2021.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Limitation of Director and Officer Liability</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under British Virgin Islands law, each of our
directors and officers, in performing his or her functions, is required to act honestly and in good faith with a view to our best interests
and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Our memorandum
and articles of association provide that, to the fullest extent permitted by British Virgin Islands law or any other applicable laws,
our directors will not be personally liable to us or our shareholders for any acts or omissions in the performance of their duties. Such
limitation of liability does not affect the availability of equitable remedies such as injunctive relief or rescission. These provisions
will not limit the liability of directors under United States federal securities laws.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may indemnify any of our directors or anyone
serving at our request as a director of another entity against all expenses, including legal fees, and against all judgments, fines and
amounts paid in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings. We may only
indemnify a director if he or she acted honestly and in good faith with the view to our best interests and, in the case of criminal proceedings,
the director had no reasonable cause to believe that his or her conduct was unlawful. The decision of our board of directors as to whether
the director acted honestly and in good faith with a view to our best interests and as to whether the director had no reasonable cause
to believe that his or her conduct was unlawful, is in the absence of fraud sufficient for the purposes of indemnification, unless a question
of law is involved. The termination of any proceedings by any judgment, order, settlement, conviction or the entry of no plea does not,
by itself, create a presumption that a director did not act honestly and in good faith and with a view to our best interests or that the
director had reasonable cause to believe that his or her conduct was unlawful. If a director to be indemnified has been successful in
defense of any proceedings referred to above, the director is entitled to be indemnified against all expenses, including legal fees, and
against all judgments, fines and amounts paid in settlement and reasonably incurred by the director or officer in connection with the
proceedings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Insofar as indemnification for liabilities arising
under the Securities Act may be permitted for our directors or officers under the foregoing provisions, we have been informed that in
the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable
as a matter of United States law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 72; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Retirement Benefits</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, we have contributed to
the government-mandated employee welfare and retirement benefit plan and provided pension, retirement or similar benefits to its employees.
The PRC regulations require us to pay the local labor administration bureau a monthly contribution at a stated contribution rate based
on the monthly basic compensation of qualified employees. The local labor administration bureau, which manages various investment funds,
will take care of employee retirement, medical and other fringe benefits. We have no further commitments beyond our monthly contribution.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Employment Agreements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Employment agreement with
Dandan Liu, CEO</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 1, 2022, TDH Holdings, Inc. renewed
employment agreement with Dandan Liu to serve in the role of Chief Executive Officer for the initial period of 3 years (commencing as
of August 1, 2022 and terminating on July 31, 2025), which term may be automatically renewed for another 3 years unless either party to
the agreement terminates the agreement at least 60 days prior to the expiration of the term. Under the terms of this agreement, Ms. Liu&#8217;s
annual salary is USD 120,000 payable in 12 equal monthly installments until July 31, 2025. Ms. Liu may be eligible to receive an annual
bonus in the amount of 10% of the growth in book value as of the last fiscal year end, subject to review of corporate performance goals
set forth by the Compensation Committee. The Compensation Committee will have the sole discretion whether Ms. Liu is entitled to the bonus
and the amount of the payment, if any. The employment agreement may be terminated by either party upon 60 days advance notice to the other
party. The Company will reimburse Ms. Liu for all reasonable out of pocket expenses in connection with travel, entertainment and other
expenses incurred in the performance of her duties. The agreement also contains certain confidentiality, non-disclosure and other provisions
that are customary to the agreements of this nature.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Employment agreement with
Feng Zhang, CFO</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 4, 2021, TDH Holdings, Inc. entered
into an employment agreement with Feng Zhang to serve in the role of Chief Financial Officer for the initial period of three years, (commencing
as of January 4, 2021 and terminating on January 3, 2024). Under the terms of this agreement, Mr. Zhang&#8217;s annual salary is USD 48,000
payable in 12 equal monthly installments. The employment agreement may be terminated by either party upon 15-day advance notice to the
other party. The Company will reimburse Mr. Zhang for all reasonable out of pocket expenses in connection with travel, entertainment and
other expenses incurred in the performance of his duties. The agreement also contains certain confidentiality, non-disclosure and other
provisions that are customary to the agreements of this nature.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>C.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Board Practices</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Composition of Board; Risk
Oversight</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board of Directors presently consists of five
directors. The Board membership is divided into three classes, Class A, B and C, respectively, as nearly equal in number as the total
number of directors permits. Class A directors will face re-election at our next annual meeting of shareholders and every three years
thereafter. Class B directors will face re-election at our second annual meeting of shareholders and every three years thereafter. Class
C directors will face re-election at our third annual meeting of shareholders and every three years thereafter.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as noted above, there are no family relationships
between any of our executive officers and directors. Officers are elected by, and serve at the discretion of, the board of directors.
Our board of directors shall hold meetings on at least a quarterly basis. As a smaller reporting company under the NASDAQ rules we are
only required to maintain a board of directors comprised of at least 50% independent directors, and an audit committee of at least two
members, comprised solely of independent directors who also meet the requirements of Rule 10A-3 under the Securities Exchange Act of 1934.
There are no membership qualifications for directors. Further, there are no share ownership qualifications for directors unless so fixed
by us in a general meeting. There are no other arrangements or understandings pursuant to which our directors are selected or nominated.
Our board plays a significant role in our risk oversight. The board makes all relevant Company decisions. As such, it is important for
us to have our Chief Executive Officer serve on the board as he plays key roles in the risk oversight or the Company. As a smaller reporting
company with a small board of directors, we believe it is appropriate to have the involvement and input of all of our directors in risk
oversight matters.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 73; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Director Independence</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board has reviewed the independence of our
directors, applying the NASDAQ independence standards. Based on this review, the board determined that each of Caifen Zou, Qiu Li, and
Owens Meng are &#8220;independent&#8221; within the meaning of the NASDAQ rules. In making this determination, our board considered the
relationships that each of these non-employee directors has with us and all other facts and circumstances our board deemed relevant in
determining their independence. As required under applicable NASDAQ rules, we anticipate that our independent directors will meet on a
regular basis as often as necessary to fulfill their responsibilities, including at least annually in executive session without the presence
of non-independent directors and management.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Board Committees</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, three committees have been established
under the board: the Audit Committee, the Compensation Committee and the Nominating Committee.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee is responsible for overseeing
the accounting and financial reporting processes of our company and audits of the financial statements of our company, including the appointment,
compensation and oversight of the work of our independent auditors. The Compensation Committee of the board of directors reviews and makes
recommendations to the board regarding our compensation policies for our officers and all forms of compensation, and also administers
our incentive compensation plans and equity-based plans (but our board retains the authority to interpret those plans). The Nominating
Committee of the board is responsible for the assessment of the performance of the board, considering and making recommendations to the
board with respect to the nominations or elections of directors and other governance issues. The nominating committee considers diversity
of opinion and experience when nominating directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Audit Committee</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee will be responsible for, among
other matters:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">appointing, compensating, retaining, evaluating, terminating, and overseeing our independent registered public accounting firm;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">discussing with our independent registered public accounting firm the independence of its members from its management;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing with our independent registered public accounting firm the scope and results of their audit;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">approving all audit and permissible non-audit services to be performed by our independent registered public accounting firm;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">overseeing the financial reporting process and discussing with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls, and compliance with legal and regulatory requirements;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">coordinating the oversight by our board of directors of our code of business conduct and our disclosure controls and procedures;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">establishing procedures for the confidential and/or anonymous submission of concerns regarding accounting, internal controls or auditing matters; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and approving related-party transactions.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Audit Committee consists of Caifen Zou, Qiu
Li, and Owens Meng, with Owens Meng serving as chair of the Audit Committee. Our board has affirmatively determined that each of the members
of the Audit Committee meets the definition of &#8220;independent director&#8221; for purposes of serving on an Audit Committee under
Rule 10A-3 of the Exchange Act and NASDAQ rules. In addition, our board has determined that Lei Wang qualifies as an &#8220;audit committee
financial expert&#8221; as such term is currently defined in Item 407(d)(5) of Regulation S-K and meets the financial sophistication requirements
of the NASDAQ rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 74; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Compensation Committee</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Compensation Committee will be responsible
for, among other matters:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and approving, or recommending to the board of directors to approve the compensation of our CEO and other executive officers and directors;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing key employee compensation goals, policies, plans and programs;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">administering incentive and equity-based compensation;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and approving employment agreements and other similar arrangements between us and our executive officers; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">appointing and overseeing any compensation consultants or advisors.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Compensation Committee consists of Caifen
Zou, Qiu Li, and Owens Meng, with Qiu Li serving as chair of the Compensation Committee. Our board has affirmatively determined that each
of the members of the Compensation Committee meets the definition of &#8220;independent director&#8221; for purposes of serving on Compensation
Committee under NASDAQ rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Nominating Committee</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nominating Committee will be responsible for,
among other matters:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">selecting or recommending for selection candidates for directorships;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">evaluating the independence of directors and director nominees;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and making recommendations regarding the structure and composition of our board and the board committees;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">developing and recommending to the board corporate governance principles and practices;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and monitoring the Company&#8217;s Code of Business Conduct and Ethics; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">overseeing the evaluation of the Company&#8217;s management</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Nominating Committee consists of consists
of Caifen Zou, Qiu Li, and Owens Meng, with Caifen Zou serving as chair of the Nominating Committee. Our board has affirmatively determined
that each of the members of the Nominating Committee meets the definition of &#8220;independent director&#8221; for purposes of serving
on a Nominating Committee under NASDAQ rules.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Duties of Directors</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under British Virgin Islands law, our directors
have a duty to act honestly, in good faith and with a view to our best interests. Our directors also have a duty to exercise the care,
diligence and skills that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to
us, our directors must ensure compliance with our memorandum and articles of association. We have the right to seek damages if a duty
owed by our directors is breached. The functions and powers of our board of directors include, among others:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">appointing officers and determining the term of office of the officers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">authorizing the payment of donations to religious, charitable, public or other bodies, clubs, funds or associations as deemed advisable;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 75; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">exercising the borrowing powers of the company and mortgaging the property of the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">executing checks, promissory notes and other negotiable instruments on behalf of the company; and maintaining or registering a register of mortgages, charges or other encumbrances of the company.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A director may vote, attend a board meeting or
sign a document on our behalf with respect to any contract or transaction in which he or she is interested. A director must promptly disclose
the interest to all other directors after becoming aware of the fact that he or she is interested in a transaction we have entered into
or are to enter into. A general notice or disclosure to the board or otherwise contained in the minutes of a meeting or a written resolution
of the board or any committee of the board that a director is a shareholder, director, officer or trustee of any specified firm or company
and is to be regarded as interested in any transaction with such firm or company will be sufficient disclosure, and, after such general
notice, it will not be necessary to give special notice relating to any particular transaction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors may receive such remuneration as
our board of directors may determine from time to time. Each director is entitled to be repaid or prepaid for all traveling, hotel and
incidental expenses reasonably incurred or expected to be incurred in attending meetings of our board of directors or committees of our
board of directors or shareholder meetings or otherwise in connection with the discharge of his or her duties as a director. The compensation
committee will assist the directors in reviewing and approving the compensation structure for the directors. Our board of directors may
exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to
issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation
of the company or of any third party.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><i>Limitation on Liability
and Other Indemnification Matters</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">British Virgin Islands law does not limit the
extent to which a company&#8217;s memorandum and articles of association may provide for indemnification of officers and directors, except
to the extent any such provision may be held by the British Virgin Islands courts to be contrary to public policy, such as to provide
indemnification against civil fraud or the consequences of committing a crime. Under our memorandum and articles of association, we may
indemnify our directors, officers and liquidators against all expenses, including legal fees, and against all judgments, fines and amounts
paid in settlement and reasonably incurred in connection with civil, criminal, administrative or investigative proceedings to which they
are party or are threatened to be made a party by reason of their acting as our director, officer or liquidator. To be entitled to indemnification,
these persons must have acted honestly and in good faith with a view to the best interest of the company and, in the case of criminal
proceedings, they must have had no reasonable cause to believe their conduct was unlawful. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted for our directors or officers under the foregoing provisions, we have been informed
that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable
as a matter of United States law.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>D.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Employees</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table below provides information as to the
total number of employees at the end of the last three fiscal years. We have no contracts or collective bargaining agreements with labor
unions and have never experienced work stoppages due to labor dispute. We consider our relations with our employees to be good.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%">Number of Employees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">54</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">42</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">51</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>E.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Share Ownership</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See Item 7 below.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 76; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_008"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 7.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Major shareholders</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth, as of April 18,
2023 certain information regarding beneficial ownership of our shares by each person who is known by us to beneficially own more than
5% of our shares. The table also identifies the share ownership of each of our directors, each of our named executive officers, and all
directors and officers as a group. Except as otherwise indicated, the shareholders listed in the table have sole voting and investment
powers with respect to the shares indicated. Our major shareholders do not have different voting rights than any other holder of our shares.
Shares which an individual or group has a right to acquire within 60&#160;days pursuant to the exercise or conversion of options, warrants
or other similar convertible or derivative securities are deemed to be outstanding for the purpose of computing the percentage ownership
of such individual or group, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person
shown in the table. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally
includes voting and investment power. Except as otherwise indicated below, each beneficial owner holds voting and investment power directly.
The percentage of ownership is based on 10,323,268 shares issued and outstanding as of the record date. Unless otherwise indicated, the
address of each beneficial owner listed in the table below is c/o Qingdao Tiandihui Foodstuffs Co. Ltd., 2521 Tiejueshan Road, Huangdao
District, Qingdao, Shandong Province, PRC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center; border-bottom: Black 1.5pt solid"><p style="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><b>&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><b>Name of Beneficial Owner</b></p></td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Shares Owned</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Percentage</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Dandan Liu</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">1,354,697</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">13.1</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Feng Zhang</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Caifen Zou<sup>(1)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qiu Li<sup>(1)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Owens Meng<sup>(1)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Directors&#160;&amp; executive officers as a group (5 persons)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">1,354,697</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">13.1</td><td style="font-weight: bold; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Xiumei Lan</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">620,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6.0</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Liping Gao</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">640,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">6.2</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Yanli Xu</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">580,000</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5.6</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">5%&#160;or Greater Shareholders as a group (2 persons)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">1,840,000</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">17.8</td><td style="font-weight: bold; text-align: left">%</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="font-size: 1pt; border-top: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left">(1)</td><td style="text-align: justify">Independent director.</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Related Party Transactions</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The related parties had transactions for the years
ended December 31, 2022, 2021 and 2020 consist of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="vertical-align: bottom; width: 49%; border-bottom: black 1.5pt solid; text-align: justify"><span style="font-size: 10pt"><b>Name of Related Party</b></span></td>
    <td style="vertical-align: bottom; width: 2%; text-align: justify">&#160;</td>
    <td style="vertical-align: top; width: 49%; border-bottom: black 1.5pt solid; text-align: justify"><span style="font-size: 10pt"><b>Nature of Relationship at December 31, 2021</b></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Dandan Liu</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Chairman of the Board, Shareholder, Chief Executive Officer (&#8220;CEO&#8221;)</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Rongfeng Cui</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Former Chairman of the Board and Former CEO. Rongfeng Cui ceased to be the CEO of the Company effective August 2, 2019.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Rongbing Cui</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Former Chief Financial Officer (&#8220;CFO&#8221;), Rongfeng Cui&#8217;s brother</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Feng Zhang</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Chief Financial Officer (&#8220;CFO&#8221;)</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Yanjuan Wang</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Rongfeng Cui&#8217;s wife</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Yan Fu</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Former Sales Vice President</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Yuxiang Qi</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Dandan Liu&#8217;s mother</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><span style="font-size: 10pt">Tide (Shanghai) Industrial Co. Ltd. (&#8220;Tide&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Owned by Rongfeng Cui and Yanjuan Wang</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 77; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
    <td style="text-indent: -0.125in; padding-left: 0.125in; border-bottom: black 1.5pt solid; vertical-align: bottom; text-align: justify; width: 49%"><span style="font-size: 10pt"><b>Name of Related Party</b></span></td>
    <td style="vertical-align: bottom; text-align: justify; width: 2%">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: top; text-align: justify; width: 49%"><span style="font-size: 10pt"><b>Nature of Relationship at December 31, 2021</b></span></td></tr>

<tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 49%; text-align: justify"><span style="font-size: 10pt">Qingdao Like Pet Supplies Co., Ltd. (&#8220;Like&#8221;)</span></td>
    <td style="width: 2%; text-align: justify">&#160;</td>
    <td style="width: 49%; text-align: justify"><span style="font-size: 10pt">Rongfeng Cui served as CEO, and Shuhua Cui, sister of Rongfeng Cui, served as the legal person. On May 26, 2016, both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">Qingdao Saike Environmental Technology Co., Ltd. (&#8220;Saike&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Owned by Rongfeng Cui and Yanjuan Wang</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">Huangdao Ding Ge Zhuang Kangkang Family Farm (&#8220;Kangkang Family Farm&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Controlled by Rongfeng Cui&#8217;s father</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">TDH Group BVBA</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">A Belgium company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">TDH JAPAN</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">A Japanese company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018. Dissolved in February 2021.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">Qingdao Yinhe Jiutian Information Technology Co., Ltd. (&#8220;Yinhe Jiutian&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Solely owned by Rongbing Cui</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">Huangdao Hanyinhe Software Development Center Co., Ltd. (&#8220;Hanyinhe&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Solely owned by Xiaomei Wang</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">Zhenyu Trading (Qingdao) Co., Ltd. (&#8220;Zhenyu&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Noncontrolling shareholder of Yichong prior to September 27, 2019; Sole shareholder of Yichong after September 27, 2019</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify"><span style="font-size: 10pt">Beijing Quanmin Chongai Information Technology Co., Ltd. (&#8220;Quanmin Chongai&#8221;)</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">Rongbing Cui serves as supervisor of Quanmin Chongai</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">LAI LINGS LENEXA </span></td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Raymond Ng is the son of Richard Ng</span></td></tr>
  <tr>
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Products Inc.</span></td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Owned by Richard Ng</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Bo Lings at Zona Rosa in the Northland </span></td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Owned by Richard Ng</span></td></tr>
  <tr>
    <td style="text-indent: -0.125in; padding-left: 0.125in; vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Richard Ng</span></td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Richard owns 49% control of Far Ling&#8217;s Inc.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Due to related parties from continuing operations</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to related parties consisted of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Rongfeng Cui</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">33,624</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">32,401</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Feng Zhang</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">22,123</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,568</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Products Inc.</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,441</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">55,747</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">36,410</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 78; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The balance of due to related parties represents
expenses paid by related parties on behalf of the Company as well as advances the Company obtained from related parties for working capital
purposes. The amounts owed to the related parties are unsecured, non-interest bearing and payable on demand.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Short term loans from related parties</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td>
    <td style="white-space: nowrap; text-align: center">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b>December&#160;31,</b></span></td>
    <td style="white-space: nowrap; text-align: center">&#160;</td>
    <td style="white-space: nowrap; text-align: center">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b>December&#160;31,</b></span></td>
    <td style="white-space: nowrap; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2022</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2021</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 72%"><span style="font-size: 10pt">Rongfeng Cui</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 11%; text-align: right"><span style="font-size: 10pt">266,451</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 11%; text-align: right"><span style="font-size: 10pt">285,878</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Total</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">266,451</span></td>
    <td>&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">285,878</span></td>
    <td>&#160;</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2018, TDH Group BVBA borrowed non-interest
bearing, unsecured long term loans from Rongfeng Cui in the aggregate amount of &#8364;250,000 (approximately $288,000), of which &#8364;60,000
(approximately $69,000), &#8364;60,000 (approximately $69,000), &#8364;60,000 (approximately $69,000), &#8364;60,000 (approximately $69,000),
&#8364;10,000 (approximately $11,500) and $0 is due in the years ended December 31, 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.
The Company did not make any repayment to Rongfeng Cui during the years ended December 31, 2019 and 2020 nor subsequently, such default
may lead to callable of the loan at any time by Rongfeng Cui. As a result, the corresponding loan was classified as current liability
and included in short term loans &#8211; related parties as of December 31, 2021 and 2020. The Company is aware of the possible penalty
and/or other consequence due to the default, however, no reasonable estimate can be made at this time.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Modification of Loans from related party</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2018, the Company entered into a loan agreement with Dandan
Liu. In May 2018, the agreement was amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting
in an increase of principal from RMB3,000,000 (approximately $466,000) to RMB3,030,000 (approximately $471,000) and increase the interest
rate from 3% to 15%. Interest rate will be 24% for the period past due. In March 2019, the agreement was further amended to, among others,
reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal to RMB3,484,500 (approximately
$539,000) and extend the maturity date from January 2019 to May 2019. As of December 31, 2022, the loan had $69,566 of interest outstanding.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2018, the Company entered into a loan
agreement with Yuxiang Qi. Interest rate was 15% during the loan period and 24% for the period past due. In March 2019, the agreement
was amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal from
RMB3,000,000 (approximately $462,000) to RMB3,405,000 (approximately $522,000) and extend the maturity date from December 2018 to May
2019. Beginning in 2019 the Company was in default of this loan, and was subject to 24% annual interest rate.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company analyzed the amendments under ASC
470-50 and concluded that these amendments did not qualify for debt modification.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The interest expenses for loans from related parties
amounted to $0, $29,581 and $43,835 for the years ended December 31, 2022, 2021 and 2020, respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Accounts payable to related parties</span></i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td>
    <td style="white-space: nowrap">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b>December&#160;31,</b></span></td>
    <td style="white-space: nowrap">&#160;</td>
    <td style="white-space: nowrap">&#160;</td>
    <td colspan="2" style="white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b>December&#160;31,</b></span></td>
    <td style="white-space: nowrap">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2022</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2021</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 72%"><span style="font-size: 10pt">Richard Ng</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 11%; text-align: right"><span style="font-size: 10pt">1,033</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 11%; text-align: right"><span style="font-size: 10pt">-</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Total</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">1,033</span></td>
    <td>&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>C.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Interests of Experts and Counsel</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></p><div>

</div><!-- Field: Page; Sequence: 79; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_009"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 8.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>FINANCIAL INFORMATION</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Consolidated Statements and Other Financial Information.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">See Item 18 for our audited
consolidated financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b>Legal Proceedings</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as set forth below, we are not involved
in any legal proceedings; nor are we aware of any claims that could have a material adverse effect on our business, financial condition,
results of operations or cash flows.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Legal claims by vendors and lenders</i>. During
    the months of November 2019 to April 2021, the Company has been a subject of 57 lawsuits by its raw material supplies, printing and packaging
    supplies, transportation companies and other vendors. The claims raised in these lawsuits pertain to the Company&#8217;s non-payment of
    various invoices for supplier and vendor services rendered, with interest and costs. As of the date of this Annual Report, the creditors
    of 44 cases have reached civil conciliation letters with our company, and the court has issued civil judgments in 9 cases, another four
    withdrew their cases for reasons including lack of evidence. The mediation and judgment is estimated approximately RMB13.86 million (USD2.12
    million). On March 13, 2021, the land and factory buildings above the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were auctioned
    by the court for $5,098,461 (RMB33.14 million). On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong
    Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and
    it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings.</p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and as of the date
of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">On December 2, 2019, QLRE filed a civil lawsuit against Tiandihui,
Rongfeng Cui, and Yanjuan Wang. The Company entered into a loan agreement with QLRE in 2018 and borrowed RMB20 million (USD3.18 million)
from QLRE in connection with the purchase of a factory. The loan was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. The Company
failed to make repayment to QLRE on time. On March 4, 2020, the Court has ruled that: (i) the Company repay QLRE with loan principal
of RMB 20 million plus interest of RMB 550,000 accrued as of October 31, 2019; The payment was to be made within 10 business days after
the court ruling takes effect (ii) assume and pay the interest at the rate of 2% per month for the period from the date of November 1,
2019 to the date of full discharge of the debt. If the debt was not paid within the required timeframe, interest doubled from the date
the court order takes effect until the date of full discharge of the debt; (iii) Rongfeng Cui and Yanjuan Wang, as guarantors, bore joint
and several responsibilities for clearing the debts and (iv) The Company and Rongfeng Cui jointly bore the litigation fee of RMB77,000
(USD$11,933). As of December 31, 2021, we had not satisfied the repayment to QLRE. On March 16, 2022, the People&#8217;s Court of Huangdao
District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy
liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy
proceedings. As of December 31, 2022 and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected
to be completed by the end of 2023.</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify">On January 15, 2020 <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CCB
instituted a civil claim against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The plaintiff alleged that it executed a loan agreement with
the Company in the amount of RMB19.93 million (USD3.08 million) for the purchase of manufacturing facility and the associated land use
right located at Lingang Economic Development Zone, Huangdao District, Qingdao, Shandong Province, People&#8217;s Republic of China.
Rongfeng Cui and his wife, Yanjuan Wang, co-signed for this loan as personal guarantors subject to joint and several liability in connection
with the loan. The loan with CCB was guaranteed by Rongfeng Cui and Yanjuan Wang, pledged by the aforementioned manufacturing facilities
and associated land use right. On April 14, 2020, the Court ruled that i) the Company repay RMB19.93 million (USD3.25 million) of principal
and accrued interest to CCB, ii) to execute the sale of the mortgaged property and iii) Rongfeng Cui and Yanjuan Wang bear joint and
several security liability for the payment. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were
auctioned by the court for $5,098,461 (RMB33.14 million), among which, $3,192,827 (RMB21.14 million) was used to repay loan principal
and accrued interest to CCB based on the court order. The repayment was completed as of the date of this filing.</span></td>
</tr></table><div>




</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 80; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">On November 11, 2019 SPDB filed a civil
lawsuit against Tiandihui, Saike, Gaochuang, Rongfeng Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB to
borrow an aggregate of RMB 4.85 million (USD 0.75 million) from SPDB for working capital purpose. The borrowing from SPDB was guaranteed
by Rongfeng Cui and Yanjuan Wang, pledged by land use right and real property of Saike and a real property of Rongfeng Cui and Yanjuan
Wang. The Company failed to make repayment to SPDB on time. On October 24, 2020, the court ruled that, (i) the Company repay SPDB with
bank acceptance draft principals and interest at the annual interest rate of 18.25%. The payment be made within 10 business days after
the court ruling takes effect. If the debt was not paid within the required timeframe, interest doubled from the date the court order
took effect until the date of full discharge of the debt (ii) the Company bear the litigation fees of RMB156,880 (USD 24,312), (iii) Rongfeng
Cui and Yanjuan Wang, as guarantors, bear joint and several responsibilities for clearing the debts and (iv) if the court decides to auction
the pledged land use right and real properties, SPDB shall have the priority right of the repayment from the auction proceeds. As of December
31, 2021, we had not satisfied the repayment to SPDB. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City,
Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui,
and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December
31, 2022 and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the
end of 2023.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            December 10, 2019, Gaochuang, initiated a civil claim against, Saike, Rongfeng Cui, and Yanjuan
                                            Wang. In 2018, the Company entered into agreements with SPDB for bank acceptance draft and
                                            Gaochuang executed the guarantee of SPDB bank acceptance deposit on behalf of the Company
                                            in the amount of RMB1.2 million (USD0.19 million). The Company failed to repay the RMB 1.2
                                            million ($0.19 million) deposit to Gaochuang upon the bank acceptance draft maturity date.
                                            The deposit made by Gaochuang was guaranteed by certain of the Company&#8217;s fixed assets
                                            and patents. Saike, Rongfeng Cui and Yanjuan Wang are also subject to joint and several responsibilities.
                                            On December 29, 2020, the court ruled that, (i) the Company repay the RMB 1.2 million ($0.19
                                            million) deposit to Gaochuang and the interest at the annual interest rate of 4.15%. The
                                            payment was to be made within 10 business days after the court ruling takes effect. If the
                                            debt was not paid within the required timeframe, interest doubled from the date the court
                                            order takes effect until the date of full discharge of the debt (ii) the Company bear the
                                            litigation fees of RMB 83,127(USD 12,882) and (iii) if the court decides to auction the pledged
                                            fixed assets and patent, Gaochuang shall have the priority right of the repayment from the
                                            auction proceeds. As of December 31, 2021, we had not satisfied the repayment to Gaochuang.
                                            On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong
                                            Province made a civil ruling and announced the acceptance of creditors&#8217; application
                                            of bankruptcy liquidation of Tiandihui and it entered into bankruptcy proceedings. Accordingly,
                                            these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022
                                            and as of the date of this filing, the bankruptcy proceedings have not been completed and
                                            are expected to be completed by the end of 2023.</span></td></tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            May 6, 2020, the Postal Savings Bank of China Limited Weihai Road Sub-branch of Qingdao North
                                            District (hereinafter referred to as Postal Savings) filed a civil lawsuit against Tiandihui,
                                            Rongfeng Cui and Yanjuan Wang. The Company entered into two loan agreements with Postal Savings
                                            in 2018 and 2019, respectively, and borrowed RMB 9.9 million ($1.53 million) in aggregate.
                                            The loans were guaranteed by Rongfeng Cui and Yanjuan Wang, pledged by a real property of
                                            the Company and a real property of Rongfeng Cui. The Company failed to make repayment to
                                            Postal Savings on time. In June 2020, the court ruled that, i) the Company to repay Postal
                                            Savings with principals and interest of the loan, ii) the Company bear the litigation fees
                                            incurred by Postal Savings, iii) if the court decides to auction the pledged real properties,
                                            Postal Savings shall have the priority right of the repayment from the auction proceeds and
                                            iv) Rongfeng Cui and Yanjuan Wang, as guarantors, bear joint and several responsibilities
                                            for clearing the debts. As of December 31, 2021, we had satisfied the repayment to Postal
                                            Savings. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City,
                                            Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application
                                            of bankruptcy liquidation of Tiandihui and it entered into bankruptcy proceedings. Accordingly,
                                            these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022
                                            and as of the date of this filing, the bankruptcy proceedings have not been completed and
                                            are expected to be completed by the end of 2023.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 81; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 54pt; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Labor arbitration claims by former employees</i>. The Company estimates that its headcount will reduce to around 51 full-time employees through the end of this adjustment period. As a result of the layoffs, certain of the Company&#8217;s former employees commenced arbitration proceedings against the Company under applicable labor rules and standards, claiming, among others, lost wages, severance payments and/or social security obligations totaling RMB3.68 million (USD0.56 million). As of the reporting date, there were 98 labor arbitrations, of which 6 reached a settlement at the first instance stage, and 92 decisions of the second instance have taken effect. The Company accrued approximately $0.4 million contingent liabilities in other current liabilities on the consolidated balance sheet as of December 31, 2019 and recognized contingent losses of approximately $0.4 million for the year ended December 31, 2019. Upon ruling of these cases, the Company further accrued approximately $0.1 million wage and/or severance payables in other current liabilities on the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $0.1 million for the year ended December 31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were actioned by the court for $5,098,461 (RMB 33.14 million). In 2021, we have paid RMB 3.73 million to substantially settle the labor arbitration cases with our former employees and we only have RMB 0.5 million ($0.08 million) remaining severance payables to them as of December 31, 2021. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022 and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 36pt; text-align: justify"><b>Dividend Policy</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The holders of shares of our common shares are
entitled to dividends out of funds legally available when and as declared by our board of directors. Our board of directors has never
declared a dividend and does not anticipate declaring a dividend in the foreseeable future. Should we decide in the future to pay dividends,
as a holding company, our ability to do so and meet other obligations depends upon the receipt of dividends or other payments from our
operating subsidiary and other holdings and investments. In addition, the operating companies may, from time to time, be subject to restrictions
on their ability to make distributions to us, including as a result of restrictive covenants in loan agreements, restrictions on the conversion
of local currency into U.S. dollars or other hard currency and other regulatory restrictions. In the event of our liquidation, dissolution
or winding up, holders of our common shares are entitled to receive, ratably, the net assets available to shareholders after payment of
all creditors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To date, none of the PRC subsidiaries has made
any dividends or distributions to TDH Holdings, Inc. We anticipate that we will retain any earnings to support operations and to finance
the growth and development of our business. Therefore, we do not expect to pay cash dividends in the foreseeable future. Under British
Virgin Islands law, we may only pay dividends from surplus (the excess, if any, at the time of the determination of the total assets of
our company over the sum of our liabilities, as shown in our books of account, plus our capital), and we must be solvent before and after
the dividend payment in the sense that we will be able to satisfy our liabilities as they become due in the ordinary course of business;
and the realizable value of assets of our company will not be less than the sum of our total liabilities, other than deferred taxes as
shown on our books of account, and our capital. If we determine to pay dividends on any of our Common Shares in the future, as a holding
company, we will be dependent on receipt of funds from our Hong Kong subsidiaries, TDH HK Limited and TDH Food Limited. Current PRC regulations
permit the PRC Subsidiaries to pay dividends to TDH HK Limited and TDH Food Limited only out of their accumulated profits, if any, determined
in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside
at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered
capital. Each of such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare
fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves
can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective
companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Significant Changes</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as disclosed elsewhere in this Annual Report,
we have not experienced any significant changes since the date of our audited consolidated financial statements included in this Annual
Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 82; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_010"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 9.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>THE OFFER AND LISTING</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Offer and Listing Details</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We completed our initial public offering on September
21, 2017. Our Common Shares trade under the trading symbol &#8220;PETZ&#8221; on the NASDAQ Capital Market. As of April 24, 2023, there
were approximately 14 holders of record of our Common Shares. This excludes our Common Shares owned by shareholders holding Common Shares
under nominee security position listings. On April 24, 2023 the last sales price of our Common Shares as reported on the NASDAQ Capital
Market was $1.04 per common share.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Plan of Distribution</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not Applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>C.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Markets</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our shares have been listed on the NASDAQ Stock
Market under the symbols PETZ, since September 21, 2017, following the completion of our initial public offering.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>D.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Selling Shareholders</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not Applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>E.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Dilution</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not Applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>F.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Expenses of the Issue</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not Applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_011"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 10.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>ADDITIONAL INFORMATION</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Share Capital</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not Applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Memorandum and Articles of Association</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information required by Item 10.B of Form
20-F is included in the section titled &#8220;Description of Share Capital&#8221; in our Registration Statement on Form F-1 initially
filed with the SEC on August 11, 2017 (File No.: 333-219896), which section is incorporated herein by reference.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>C.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Material Contracts</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">None</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>D.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Exchange controls</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under British Virgin Islands law, there are currently
no restrictions on the export or import of capital, including foreign exchange controls or restrictions that affect the remittance of
dividends, interest or other payments to nonresident holders of our shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>E.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Taxation</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 83; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>&#160;</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>PRC Enterprise Income Tax</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Enterprise Income Tax Law of
PRC (the &#8220;EIT Law&#8221;), which was promulgated on March 16, 2007, last amended in February 2017 and became effective as of January
1, 2008, the income tax for both domestic and foreign-invested enterprises is at a uniform rate of 25%. The Regulation on the Implementation
of Enterprise Income Tax Law of the PRC (the &#8220;EIT Rules&#8221;) was promulgated on December 6, 2007 and became effective on January
1, 2008. On April 14, 2008, the Chinese Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation enacted
the Administrative Measures for Certifying High and New Technology Enterprises (the &#8220;Certifying Measures&#8221;), which retroactively
became effective on January 1, 2008 and was amended on January 29, 2016. Under the EIT Law and the Certifying Measures, certain qualified
high-tech companies may benefit from a preferential tax rate of 15% if they own their core intellectual properties and are classified
into certain industries strongly supported by the Chinese government and set forth by certain departments of the Chinese State Council.
Tiandihui was granted the high and new technology enterprise (&#8220;HNTE&#8221;) qualification valid until the year end of December 2018.
The Company was subject to 25% income tax rate in 2021 and 2022. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao
City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of
Tiandihui, and it entered into bankruptcy proceedings. Under the EIT Law, an enterprise established outside of China with a &#8220;de
facto management body&#8221; within China is considered a &#8220;resident enterprise&#8221;, which means that it is treated in a manner
similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of the EIT Law define &#8220;de
facto management body&#8221; as a managing body that exercises substantive and overall management and control over the production and
business, personnel, accounting books and assets of an enterprise, the only official guidance for this definition currently available
is set forth in Circular 82 issued by the State Administration of Taxation, at April 22, 2009 which provides that a foreign enterprise
controlled by a PRC company or a PRC company group will be classified as a &#8220;resident enterprise&#8221; with its &#8220;de facto
management bodies&#8221; located within China if the following criteria are satisfied:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the place where the senior management and core management departments that are in charge of its daily operations perform their duties is mainly located in the PRC;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">its financial and human resources decisions are made by or are subject to approval by persons or bodies in the PRC;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">its major assets, accounting books, company seals, and minutes and files of its board and shareholders&#8217; meetings are located or kept in the PRC; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">more than half of the enterprise&#8217;s directors or senior management with voting rights frequently reside in the PRC.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not believe that we meet the conditions
outlined in the preceding paragraph since Tiandihui does not have a PRC enterprise or enterprise group as our primary controlling shareholder.
In addition, we are not aware of any offshore holding companies with a corporate structure similar to the Company that has been deemed
a PRC &#8220;resident enterprise&#8221; by the PRC tax authorities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are deemed a China resident enterprise,
we may be subject to the EIT at the rate of 25% on our global income, except that the dividends we receive from our Chinese subsidiaries
may be exempt from the EIT to the extent such dividends are deemed dividends among qualified resident enterprises. If we are considered
a resident enterprise and earn income other than dividends from our Chinese subsidiaries, a 25% EIT on our global income could significantly
increase our tax burden and materially and adversely affect our cash flow and profitability.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>PRC VAT</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the Provisional Regulations of the
People&#8217;s Republic of China on Value-added Tax (2017), which were revised and came into effect on November 20, 2017, the sales of
goods, processing, repair and replacement services, sales of services, intangible assets, immovable property and imported goods within
the territory of the People&#8217;s Republic of China must pay VAT. The amount of VAT payable is calculated as &#8220;output VAT&#8221;
minus &#8220;input VAT&#8221;, and the rates of VAT are 13% or 9% for sales of our goods as determined by State Administration of Taxation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 84; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>People&#8217;s Republic of China Taxation</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the EIT law and EIT Rules, both of which
became effective on January 1, 2008, the income tax for both domestic and foreign-invested enterprises is at a uniform rate of 25%, unless
they qualify for certain exceptions. On April 14, 2008, the Chinese Ministry of Science and Technology, Ministry of Finance and State
Administration of Taxation enacted the Certifying Measures, which retroactively became effective on January 1, 2008 and was amended on
January 29, 2016 provide that certain qualified high-tech companies may benefit from a preferential tax rate of 15% if they own their
core intellectual properties and are classified into certain industries strongly supported by the Chinese government and set forth by
certain departments of the Chinese State Council. Tiandihui was granted the HNTE qualification valid for three years commencing on December
2, 2016. Tiandihui&#8217;s status as a &#8220;high-tech enterprise&#8221; was automatically revoked by the relevant government departments
when it expired on December 2, 2019. We are a holding company incorporated in the British Virgin Islands and we gain substantial income
by way of dividends from our PRC subsidiaries. The EIT Law and Rules provide that China-sourced income of foreign enterprises, such as
dividends paid by a PRC Subsidiary to its equity holders that are non-resident enterprises, will normally be subject to PRC withholding
tax at a rate of 10%, unless any such foreign investor&#8217;s jurisdiction of incorporation has tax treaty with China that provides for
a different withholding arrangement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>British Virgin Islands Taxation</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the BVI Act as currently in effect, a holder
of common shares who is not a resident of the British Virgin Islands is exempt from British Virgin Islands income tax on dividends paid
with respect to the common shares and all holders of common shares are not liable to the British Virgin Islands for income tax on gains
realized during that year on sale or disposal of such shares. The British Virgin Islands does not impose a withholding tax on dividends
paid by a company incorporated or re-registered under the BVI Act. There are no capital gains, gift or inheritance taxes levied by the
British Virgin Islands on companies incorporated or re-registered under the BVI Act. In addition, shares of companies incorporated or
re-registered under the BVI Act are not subject to transfer taxes, stamp duties or similar charges. There is no income tax treaty or convention
currently in effect between the United States and the British Virgin Islands or between China and the British Virgin Islands.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>United States Federal Income Taxation</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following does not address the tax consequences
to any particular investor or to persons in special tax situations such as:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">banks;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">financial institutions;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">insurance companies;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">regulated investment companies;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">real estate investment trusts;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">broker-dealers;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">traders that elect to mark to market;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">U.S. expatriates;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">tax-exempt entities;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons liable for alternative minimum tax;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons holding our common shares as part of a straddle, hedging, conversion or integrated transaction;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons that actually or constructively own 10% or more of our voting shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons who acquired our common shares pursuant to the exercise of any employee share option or otherwise as consideration; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons holding our common shares through partnerships or other pass-through entities.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 85; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prospective purchasers are urged to consult their
tax advisors about the application of the U.S. Federal tax rules to their particular circumstances as well as the state, local, foreign
and other tax consequences to them of the purchase, ownership and disposition of our common shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Taxation of Dividends and Other Distributions
on our Shares</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the passive foreign investment company
rules discussed below, the gross amount of distributions made by us to you with respect to the common shares (including the amount of
any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but
only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal
income tax principles). With respect to corporate U.S. Holders, to the extent that the amount of the distribution exceeds our current
and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated first as a tax-free
return of your tax basis in your common shares, and to the extent the amount of the distribution exceeds your tax basis, the excess will
be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax principles. Therefore,
a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise be treated as
a non-taxable return of capital or as capital gain under the rules described above. The dividends will not be eligible for the dividends-received
deduction allowed in respect of dividends received from other U.S. corporations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With respect to non-corporate U.S. Holders, including
individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that
(1) the common shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits
of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a
passive foreign investment company (as discussed below) for either our taxable year in which the dividend is paid or the preceding taxable
year, and (3) certain holding period requirements are met. Under U.S. Internal Revenue Service authority, our common shares will be considered
for purpose of clause (1) above to be readily tradable on an established securities market in the United States when they are listed on
the NASDAQ Capital Market. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid
with respect to our common shares, including the effects of any change in law after the date of this Annual Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dividends on our common shares will constitute
foreign source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed
above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to
the gross amount of the dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends.
The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose,
dividends distributed by us with respect to our common shares will constitute &#8220;passive category income&#8221; but could, in the
case of certain U.S. Holders, constitute &#8220;general category income.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Taxation of Dispositions of Shares</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the passive foreign investment company
rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of shares equal to the
difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the shares. The gain or
loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the common
shares for more than one year, you will be eligible for the capital gains tax rate of 20% (or lower for individuals in lower tax brackets).
The deductibility of capital losses is subject to limitations. Any such gain or loss that you recognize will generally be treated as United
States source income or loss for foreign tax credit limitation purposes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 86; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Passive Foreign Investment Company</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on our current and anticipated operations
and the composition of our assets, we do not expect to be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes
for our current taxable year ending December 31, 2022. Our actual PFIC status for the current taxable years ending December 31, 2022 will
not be determinable until after the close of such year and, accordingly, there is no guarantee that we will not be a PFIC for the current
year. PFIC status is a factual determination for each taxable year which cannot be made until the close of the taxable year. A non-U.S.
corporation is considered a PFIC for any taxable year if either:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">at least 75% of its gross income is passive income; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the &#8220;asset test&#8221;).</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will be treated as owning our proportionate
share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly,
at least 25% (by value) of the stock. We must make a separate determination each year as to whether we are a PFIC. As a result, our PFIC
status may change. In particular, because the value of our assets for purposes of the asset test will generally be determined based on
the market price of our common shares, our PFIC status will depend in large part on the market price of our common shares. Accordingly,
fluctuations in the market price of the common shares may cause us to become a PFIC. If we are a PFIC for any year during which you hold
common shares, we will continue to be treated as a PFIC for all succeeding years during which you hold common shares. However, if we cease
to be a PFIC, you may avoid some of the adverse effects of the PFIC regime by making a &#8220;deemed sale&#8221; election with respect
to the common shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we are a PFIC for any taxable year during which
you hold common shares, you will be subject to special tax rules with respect to any &#8220;excess distribution&#8221; that you receive
and any gain you realize from a sale or other disposition (including a pledge) of the common shares, unless you make a &#8220;mark-to-market&#8221;
election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions
you received during the shorter of the three preceding taxable years or your holding period for the common shares will be treated as an
excess distribution. Under these special tax rules:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the excess distribution or gain will be allocated ratably over your holding period for the common shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the amount allocated to each other year will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. The tax liability for amounts allocated to such years cannot be offset by any net operating losses for such years, and gains realized on the sale of the common shares cannot be treated as capital, even if you hold the common shares as capital assets.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A U.S. Holder of &#8220;marketable stock&#8221;
(as defined below) in a PFIC may make a mark-to-market election for such stock to elect out of the tax treatment discussed above. If you
make a mark-to-market election for the common shares, you will include in income each year an amount equal to the excess, if any, of the
fair market value of the common shares as of the close of your taxable year over your adjusted basis in such common shares. You are allowed
a deduction for the excess, if any, of the adjusted basis of the common shares over their fair market value as of the close of the taxable
year. However, deductions are allowable only to the extent of any net mark-to-market gains on the common shares included in your income
for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other
disposition of the common shares, are treated as ordinary income. Ordinary loss treatment also applies to the deductible portion of any
mark-to-market loss on the common shares, as well as to any loss realized on the actual sale or disposition of the common shares, to the
extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such common shares. Your basis
in the common shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market election, the tax
rules that apply to distributions by corporations that are not PFICs would apply to distributions by us, except that the lower applicable
capital gains rate for qualified dividend income discussed above under &#8220;Taxation of Dividends and Other Distributions on our Shares&#8221;
generally would not apply.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 87; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The mark-to-market election is available only
for &#8220;marketable stock&#8221;, which is stock that is traded in other than de minimis quantities on at least 15 days during each
calendar quarter (&#8220;regularly traded&#8221;) on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations),
including the NASDAQ Capital Market. If the common shares are regularly traded on the NASDAQ Capital Market and if you are a holder of
common shares, the mark-to-market election would be available to you were we to be or become a PFIC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Alternatively, a U.S. Holder of stock in a PFIC
may make a &#8220;qualified electing fund&#8221; election with respect to such PFIC to elect out of the tax treatment discussed above.
A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable
year such holder&#8217;s pro rata share of the corporation&#8217;s earnings and profits for the taxable year. However, the qualified electing
fund election is available only if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as
required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the information that would enable
you to make a qualified electing fund election. If you hold common shares in any year in which we are a PFIC, you will be required to
file U.S. Internal Revenue Service Form 8621 regarding distributions received on the common shares and any gain realized on the disposition
of the common shares.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You are urged to consult your tax advisors regarding
the application of the PFIC rules to your investment in our common shares and the elections discussed above.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Information Reporting and Backup Withholding</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dividend payments with respect to our common shares
and proceeds from the sale, exchange or redemption of our common shares may be subject to information reporting to the U.S. Internal Revenue
Service and possible U.S. backup withholding at a current rate of 28%. Backup withholding will not apply, however, to a U.S. Holder who
furnishes a correct taxpayer identification number and makes any other required certification on U.S. Internal Revenue Service Form W-9
or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide
such certification on U.S. Internal Revenue Service Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application
of the U.S. information reporting and backup withholding rules. Backup withholding is not an additional tax. Amounts withheld as backup
withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld
under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service and furnishing any
required information.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><span style="text-decoration:underline">United States Federal Income Taxation</span></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following sets forth the material British
Virgin Islands, Chinese and U.S. federal income tax matters related to an investment in our common shares. It is directed to U.S. Holders
(as defined below) of our common shares and is based on laws and relevant interpretations thereof in effect as of the date of this Annual
Report, all of which are subject to change. This description does not deal with all possible tax consequences relating to an investment
in our common shares, such as the tax consequences under state, local and other tax laws. The following brief description applies only
to U.S. Holders (defined below) that hold common shares as capital assets and that have the U.S. dollar as their functional currency.
This brief description is based on the tax laws of the United States in effect as of the date of this Annual Report and on U.S. Treasury
regulations in effect or, in some cases, proposed, as of the date of this Annual Report, as well as judicial and administrative interpretations
thereof available on or before such date. All of the foregoing authorities are subject to change, which change could apply retroactively
and could affect the tax consequences described below. The brief description below of the U.S. federal income tax consequences to &#8220;U.S.
Holders&#8221; will apply to you if you are a beneficial owner of shares and you are, for U.S. federal income tax purposes:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an individual who is a citizen or resident of the United States;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 88; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an estate whose income is subject to U.S. federal income taxation regardless of its source; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Belgium taxation</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The current enterprise income tax rate is approximately
34%, which includes 3% additional tax, for Belgium companies. Small and medium-sized enterprises may enjoy preferential tax rate if they
meet the requirements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Japan taxation</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The enterprise income tax includes national income
tax and local special tax for companies operated in Japan. The current national enterprise income tax rate is 30%. And the actual income
tax burden will be around 35% - 40% given the local special tax was considered.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>F.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Dividends and paying agents</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>G.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Statement by experts</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>H.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Documents on display</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We file annual reports and other information with
the Securities and Exchange Commission. We file annual reports on Form 20-F and submit other information under cover of Form 6-K. As a
foreign private issuer, we are exempt from the proxy requirements of Section 14 of the Exchange Act and our officers, directors and principal
shareholders are exempt from the insider short-swing disclosure and profit recovery rules of Section 16 of the Exchange Act. Annual reports
and other information we file with the Commission may be inspected at the public reference facilities maintained by the Commission at
Room 1024, 100 F. Street, N.E., Washington, D.C. 20549, and copies of all or any part thereof may be obtained from such offices upon payment
of the prescribed fees. You may call the Commission at 1-800-SEC-0330 for further information on the operation of the public reference
rooms and you can request copies of the documents upon payment of a duplicating fee, by writing to the Commission. In addition, the Commission
maintains a web site that contains reports and other information regarding registrants (including us) that file electronically with the
Commission which can be assessed at http://www.sec.gov.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>I.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Subsidiary Information</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></p><div>

</div><!-- Field: Page; Sequence: 89; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_012"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 11.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Interest Rate Risk</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our main interest rate exposure relates to bank
borrowings. We manage our interest rate exposure with a focus on reducing our overall cost of debt and exposure to changes in interest
rates. In 2022, we had $211.45 million weighted average outstanding bank loans, with weighted average effective interest rate of 9.42%.
In 2021, we had $2.69 million weighted average outstanding bank loans, with weighted average effective interest rate of 9.41%. In 2020,
we had $5.11 million weighted average outstanding bank loans, with weighted average effective interest rate of 9.03%.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, if interest rates
increased/decreased by 1%, with all other variables having remained constant, and assuming the amount of bank borrowings outstanding
at the end of the year was outstanding for the entire year, profit attributable to equity owners of our company would have been <span>$</span>21,145,&#160;lower/higher,
respectively, mainly as a result of higher/lower interest income from our cash and cash equivalents and loan receivables</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, if interest rates increased/decreased
by 1%, with all other variables having remained constant, and assuming the amount of bank borrowings outstanding at the end of the year
was outstanding for the entire year, profit attributable to equity owners of our company would have been $1,783,&#160;lower/higher, respectively,
mainly as a result of higher/lower interest income from our cash and cash equivalents and loan receivables.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Foreign Currency Risk</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our functional currency is the RMB, Euro and Yen,
and our financial statements are presented in U.S. dollar. We mainly use RMB in domestic transaction, and the transaction settled with
Euro and Yen are immaterial. The RMB depreciated against the U.S. dollar by 9.23% in 2022 and appreciated against the U.S. dollar by 2.7%
in 2021. The change in the value of RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms
without giving effect to any underlying change in our business or results of operation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, our assets, liabilities, revenues and
costs are denominated in RMB and in U.S. dollars, our exposure to foreign exchange risk will primarily relate to those financial assets
denominated in U.S. dollars. Any significant revaluation of RMB against U.S. dollar may materially affect our earnings and financial position,
and the value of, and any dividends payable on, our common shares in U.S. dollars in the future.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_013"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 12.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not required.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></p><div>

</div><!-- Field: Page; Sequence: 90; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_014"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART II</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_015"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 13.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, there has been approximately
USD15.71 million default of indebtedness and there is no any arrearage in the payment of dividends.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_016"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 14.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_017"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 15.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>CONTROLS AND PROCEDURES</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Disclosure Controls and
Procedures</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 (the &#8220;Evaluation
Date&#8221;), the Company carried out an evaluation, under the supervision of and with the participation of management, including the
Company&#8217;s Chief Executive Officer and Chief Financial Officer (the &#8220;Certifying Officers&#8221;), of the effectiveness of the
design and operation of the Company&#8217;s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934). Based on the foregoing, the Certifying Officers concluded that as of the Evaluation Date the Company&#8217;s
disclosure controls and procedures were not effective as of December 31, 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The material weakness identified by our management
include (i)&#160;a lack of sufficient accounting staff and resources with appropriate knowledge of generally accepted accounting principles
in the United States (&#8220;U.S. GAAP&#8221;) and SEC reporting and compliance requirements; and (ii) a lack of an effective review process
which may lead to material audit adjustments to the financial statements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order to address the foregoing material weakness,
we have put in place additional controls, including, among others, hiring and replacing certain management team members. Our CEO has established
a new management team to deal with operation management challenges of the Company, and our CFO has been working on improving the Company&#8217;s
financial and reporting functions. We also plan to hire more qualified accounting personnel with relevant U.S. GAAP and SEC reporting
experience and qualifications to strengthen the financial reporting function and&#160;implement regular and continuous U.S. GAAP accounting
and financial reporting training programs for our accounting and financial reporting personnel. Overall, the Company is working through
and standardizing its business processes, instituting business procedures and adding controls and additional supervision, particularly,
in the areas of control duties and data sharing and supervision so as to provide effective means of linking various functions and departments
within the Company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to complete the remediation effort on
or before the end of the 2023 fiscal year and will conduct periodic assessments of the state of the Company&#8217;s financial reporting
measures and systems, as a whole.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b><i>Management&#8217;s annual
report on internal control over financial reporting</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed
under the supervision of our chief executive officer and chief financial officer to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of our consolidated financial statements for external reporting purpose in accordance with
U.S. generally accepted accounting principles.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 91; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management assessed the effectiveness of our internal
control over financial reporting as of December 31, 2022. In making this assessment, management used the framework set forth in the report
Internal Control &#8211; Integrated framework issued in 2013 by the Committee of Sponsoring Organization of the Treadway Commission, or
COSO. The COSO framework summarizes each of the components of a company&#8217;s internal control system, including (1) the control environment,
(2) risk assessment, (3) control activities, (4) information and communication and (5) monitoring.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on these evaluations, our management concluded
that, due to the material weakness described above, our internal control over financial reporting was not effective as of December 31,
2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b><i>Attestation report of the registered public
accounting firm.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b><i>Changes in Internal Controls over Financial
Reporting</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt"><b>&#160;</b></p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other than the changes described above, there were no changes
in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) during
the period covered by this Annual Report that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_018"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>RESERVED</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_019"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16A.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>AUDIT COMMITTEE FINANCIAL EXPERT.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board of Directors has determined that Owens
Meng is an audit committee financial expert as that term is defined in Item 16A(b) of Form 20-F, and &#8220;independent&#8221; as that
term is defined in the NASDAQ listing standards.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_020"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16B.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>CODE OF ETHICS.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have adopted a Code of Business Conduct and
Ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer,
and principal accounting officer. A copy of the Code of Business Conduct and Ethics is available on our website, www.tdhpet.com. The information
on our corporate website is not a part of this Annual Report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_021"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16C.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>PRINCIPAL ACCOUNTANT FEES AND SERVICES.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table represents the approximate
aggregate fees for services rendered by YCM CPA INC. for the periods indicated:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,<br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Audit Fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">160,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">120,000</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Audit Related Fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Tax Fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">All Other Fees</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total Fees</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">160,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">120,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"></p><div>

</div><!-- Field: Page; Sequence: 92; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table represents the approximate
aggregate fees for services rendered by MaloneBailey, LLP for the periods indicated:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,<br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Audit Fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">149,000</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Audit Related Fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Tax Fees</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">All Other Fees</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total Fees</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">149,000</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt"><b>Pre-Approval of Services</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audit committee evaluated and approved in
advance the scope and cost of the engagement of an auditor before the auditor rendered its audit and non-audit services.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_022"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16D.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">None.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_023"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16E.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">No purchases of our securities
were made by us or our affiliates in 2022.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_024"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16F.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>CHANGES IN REGISTRANT&#8217;S CERTIFYING ACCOUNTANT.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The information contained in
our Form 6-K filed on January 4, 2022 is incorporated herein by reference pursuant to instruction 2 of Item 16F.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_025"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16G.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>CORPORATE GOVERNANCE</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">We are incorporated in the
BVI and our corporate governance practices are governed by applicable BVI law, our memorandum and articles of association. In addition,
because our common shares are listed on the NASDAQ Capital Market, we are subject to NASDAQ&#8217;s corporate governance requirements.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">NASDAQ Listing Rule 5615(a)(3)
permits a foreign private issuer like us to follow home country practices in lieu of certain requirements of Listing Rule 5600, provided
that such foreign private issuer discloses in its annual report filed with the SEC each requirement of Rule 5600 that it does not follow
and describes the home country practice followed in lieu of such requirement. Our BVI counsel, Ogier, has provided a letter to NASDAQ
certifying that under BVI law, we are not required to follow Nasdaq rules 5635(b) and 5635(d) to seek shareholders&#8217; approval of
any issuance of securities in connection with a transaction other than a public offering where such transaction involves the issuance
of securities representing more than 20% of our total outstanding ordinary shares or results in a change of control of a company.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_026"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 16H.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>MINE SAFETY DISCLOSURE</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_027"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px"><span style="font-size: 10pt"><b>ITEM 16I.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 93; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="a_032"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART III</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_028"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 17.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>FINANCIAL STATEMENTS</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">We have elected to provide
financial statements pursuant to Item 18.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_029"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 18.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>FINANCIAL STATEMENTS</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The financial statements are
filed as part of this Annual Report beginning on page F-1.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><div><a id="a_030"></a></div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify"><span style="font-size: 10pt"><b>ITEM 19.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>EXHIBITS</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="vertical-align: bottom; width: 8%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt"><b>Exhibit&#160;No.</b></span></td>
    <td style="vertical-align: top; width: 1%; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; width: 91%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Description</b></span></td></tr>
  <tr>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td>2.1</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><a href="f20f2022ex2-1_tdhhold.htm">Description of Registrant&#8217;s Securities.</a></p>
</td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">3.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><a href="https://www.sec.gov/Archives/edgar/data/1684425/000121390022032794/ea161354ex3-1_tdhholdings.htm"><span style="font-size: 10pt">Memorandum and Articles of Association. (1)</span></a></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">4.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><a href="http://www.sec.gov/Archives/edgar/data/1684425/000121390022041724/ea163345ex10-2_tdhholding.htm">Form of Warrant from July 26, 2022 Private Placement. (2)</a></p></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">10.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="f20f2022ex10-1_tdhhold.htm">Employment Agreement between the Registrant and its CEO.</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">10.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1684425/000121390022022816/f20f2021ex10-2_tdhhold.htm">Employment Agreement between the Registrant and its CFO. (3)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">12.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="f20f2022ex12-1_tdhhold.htm">Certification of the Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act, as amended.</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">12.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="f20f2022ex12-2_tdhhold.htm">Certification of the Chief Financial Officer (Principal Financial Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act, as amended.</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">13.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="f20f2022ex13-1_tdhhold.htm">Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">14.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1684425/000121390022022816/f20f2021ex14-1_tdhhold.htm">Code of Conduct and Ethics. (3)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">21.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="f20f2022ex21-1_tdhhold.htm">List of Subsidiaries of the Registrant.</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">99.1</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1684425/000121390022022816/f20f2021ex99-1_tdhhold.htm">Charter of the Audit Committee. (3)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">99.2</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1684425/000121390022022816/f20f2021ex99-2_tdhhold.htm">Charter of the Compensation Committee. (3)</a></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">99.3</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt"><a href="http://www.sec.gov/Archives/edgar/data/1684425/000121390022022816/f20f2021ex99-3_tdhhold.htm">Charter of the Nominating Committee. (3)</a></span></td></tr>
  <tr style="vertical-align: top; ">
    <td><span style="font-size: 10pt">99.4</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><a href="f20f2022ex99-4_tdhhold.htm"><span style="font-size: 10pt">Press Release dated April 20, 2023.</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top"><span style="font-size: 10pt">101.INS</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Inline XBRL Instance Document.</span></td></tr>
  <tr>
    <td style="vertical-align: top"><span style="font-size: 10pt">101.SCH</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Schema Document.</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top"><span style="font-size: 10pt">101.CAL</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Calculation Linkbase Document.</span></td></tr>
  <tr>
    <td style="vertical-align: top"><span style="font-size: 10pt">101.DEF</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Definition Linkbase Document.</span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top"><span style="font-size: 10pt">101.LAB</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Label Linkbase Document.</span></td></tr>
  <tr>
    <td style="vertical-align: top"><span style="font-size: 10pt">101.PRE</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="vertical-align: top; text-align: justify"><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Presentation Linkbase Document.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed as an exhibit to the Registrant&#8217;s Current Report on Form 6-K, filed on June 14, 2022 and hereby incorporated by reference.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed as an exhibit to the Registrant&#8217;s Current Report on Form 6-K, filed on July 26, 2022 and hereby incorporated by reference.</span></td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left">(3)</td><td style="text-align: justify">Filed as an exhibit to the Registrant&#8217;s Annual Report
on Form 20-F, fled on April 29, 2022 and hereby incorporated by reference.</td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 94; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SIGNATURES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">The Registrant hereby certifies
that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this
annual report on its behalf.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td colspan="3"><span style="font-size: 10pt"><b>TDH Holdings, Inc.</b></span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">April 25, 2023</p></td>
    <td><span style="font-size: 10pt">By:</span></td>
    <td colspan="2" style="border-bottom: black 1.5pt solid"><span style="font-size: 10pt">/s/&#160;<i>Dandan Liu</i></span></td></tr>
  <tr style="vertical-align: top">
    <td style="width: 60%">&#160;</td>
    <td style="width: 4%">&#160;</td>
    <td style="width: 5%"><span style="font-size: 10pt">Name:&#160;&#160;</span></td>
    <td style="width: 31%"><span style="font-size: 10pt">Dandan Liu</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Title:</span></td>
    <td><span style="font-size: 10pt">Chief Executive Officer<br/>
(Principal Executive Officer)</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td colspan="3"><span style="font-size: 10pt"><b>TDH Holdings, Inc.</b></span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">April 25, 2023</p></td>
    <td><span style="font-size: 10pt">By:</span></td>
    <td colspan="2" style="border-bottom: black 1.5pt solid"><span style="font-size: 10pt">/s/&#160;<i>Feng Zhang</i></span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Name:&#160;</span></td>
    <td><span style="font-size: 10pt">Feng Zhang</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Title:</span></td>
    <td><span style="font-size: 10pt">Chief Financial Officer<br/>
(Principal Financial and Accounting Officer)</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 95; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TDH HOLDINGS, INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="width: 91%"><span style="font-size: 10pt"><a href="#fin_001">Report of Independent Registered Public Accounting Firm (PCAOB ID <ix:nonNumeric contextRef="c0" name="dei:AuditorFirmId">6781</ix:nonNumeric>)</a></span></td> <td style="width: 1%">&#160;</td> <td style="width: 8%; text-align: center"><span style="font-size: 10pt">F-2</span></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><a href="#fin_002">Consolidated Balance Sheets as of December 31, 2022 and 2021</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-size: 10pt">F-4</span></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><a href="#fin_003">Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2022, 2021 and 2020</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-size: 10pt">F-5</span></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><a href="#fin_004">Consolidated Statements of Changes in Stockholders&#8217; Equity (Deficit) for the Years Ended December 31, 2022, 2021 and 2020</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-size: 10pt">F-6</span></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><a href="#fin_005">Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-size: 10pt">F-7</span></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: center">&#160;</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td><span style="font-size: 10pt"><a href="#fin_006">Notes to the Consolidated Financial Statements</a></span></td> <td>&#160;</td> <td style="text-align: center"><span style="font-size: 10pt">F-8 &#8211; F-34</span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>


    </div><!-- Field: Page; Sequence: 96; Options: NewSection; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><div><a id="fin_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><img alt="" src="image_002.jpg"/></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Board of Directors and</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shareh<span>olders
of TDH Holdings, Inc.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Opinion on the Financial Statements</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of TDH Holdings, Inc. and Subsidiaries (collectively, the &#8220;Company&#8221;) as of December 31, 2022 and 2021, the
related consolidated statements of operations and comprehensive income (loss), changes in shareholders&#8217; equity (deficit), and cash
flows for each of the two years in the period ended December 31, 2022, and the related notes (collectively referred to as the &#8220;financial
statements&#8221;). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years
in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern Matter</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company currently
has income but has not completed its efforts to establish a stabilized source of revenue sufficient to cover its operating costs, and
the Company has a negative cash flows from operations and historically relied on cash proceeds from issuance of loans and equity securities.
These factors raise substantial doubt about its ability to continue as a going concern. Management&#8217;s plans in regard to these matters
are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Basis for Opinion</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These financial statements are the responsibility
of the Company&#8217;s management. Our responsibility is to express an opinion on the Company&#8217;s financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&#8220;PCAOB&#8221;)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company&#8217;s
internal control over financial reporting. Accordingly, we express no such opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><!-- Field: Page; Sequence: 97; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><b><i>Critical
Audit Matters</i></b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><b><i>&#160;</i></b></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The critical
audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or
required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><i><span style="text-decoration:underline">Property
and Equipment, Net and Intangible Assets, Net - Impairment of Long-Lived Assets &#8212; Refer to Notes 2, and 7 to the financial statements</span></i></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><i>Critical
Audit Matter Description</i></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><i>&#160;</i></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The Company
performs an analysis of the carrying value of all long-lived assets, primarily property and equipment and intangible assets, for impairment
whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company&#8217;s
impairment analysis determines whether projected undiscounted future cash flows from operations are sufficient to recover the carrying
value of these long-lived assets. Impairment may result when the carrying value of the long-lived assets exceeds the estimated undiscounted
future cash flows over the estimated remaining reasonably certain lease term. Events that result in an impairment review typically include
a significant decrease in the operating performance of the long-lived asset. Impairment charges recorded related to assets for the fiscal
year ended December 31, 2022 were $6,833.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>We identified
long-lived asset impairment as a critical audit matter because the determination of the estimated future cash flows to assess the recoverability
of long-lived assets requires significant management judgment, specifically forecasting future sales, gross profits and general expenses.
Changes in these estimates could have a significant impact on whether long-lived assets should be further evaluated for impairment and
could have a significant impact on the measurement of the resulting impairment charge. This required a high degree of auditor judgment
and an increased extent of effort when performing audit procedures to evaluate the reasonableness of the Company&#8217;s judgments used
in these estimates.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><i>How the
Critical Audit Matter Was Addressed in the Audit</i></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span><i>&#160;</i></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>Our audit
procedures related to management&#8217;s judgments regarding the estimated future cash flows, specifically projection of future sales,
gross margin and general expense growth assumptions included the following, among others:</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in">(1)</td><td style="text-align: justify"><span>We evaluated management&#8217;s ability to accurately estimate future
cash flows by comparing actual results to management&#8217;s historical forecasts and internal communications regarding the Company&#8217;s
business plan and strategy.</span></td></tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top">
<td style="width: 0.25in"></td><td style="width: 0.25in">(2)</td><td style="text-align: justify"><span>We evaluated the reasonableness of management&#8217;s estimated
future cash flows by comparing the projections to historical operating results, performed independent analysis, and exercised professional
judgment during our evaluation process.</span></td></tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span>/s/ <ix:nonNumeric contextRef="c0" name="dei:AuditorName">YCM CPA, Inc.</ix:nonNumeric></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span>&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span>We have served as the Company&#8217;s
auditor since 2022. </span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span>PCAOB ID 6781</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><ix:nonNumeric contextRef="c0" name="dei:AuditorLocation"><span>Irvine, California</span></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span>April 25, 2023</span></p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 98; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="fin_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TDH HOLDINGS, INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED BALANCE SHEETS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: center">ASSETS</td><td>&#160;</td>
    <td colspan="6" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>CURRENT ASSETS:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Cash and cash equivalents</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">21,857,125</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAndCashEquivalentsAtCarryingValue" scale="0" unitRef="usd">18,025,966</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Short-term investments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermInvestments" scale="0" unitRef="usd">9,922,366</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermInvestments" scale="0" unitRef="usd">4,428,446</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">29,318</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">36,835</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Advances to suppliers, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Supplies" scale="0" unitRef="usd">2,789</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Supplies" scale="0" unitRef="usd">10,986</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Inventories, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">987</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">51,423</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Prepayments and other current assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">127,834</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" scale="0" unitRef="usd">1,158,867</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Current assets held for sale associated with discontinued operation of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperationCurrent" scale="0" unitRef="usd">1,841,335</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperationCurrent" scale="0" unitRef="usd">7,355,317</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">33,781,754</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">31,067,840</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">NON-CURRENT ASSETS</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Property, plant and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">698,044</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">781,670</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Intangible assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:LandAndLandImprovement" scale="0" unitRef="usd">481,840</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:LandAndLandImprovement" scale="0" unitRef="usd">535,632</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating lease right-of-use assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseRightOfUseAsset" scale="0" unitRef="usd">783,658</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseRightOfUseAsset" scale="0" unitRef="usd">4,604,365</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Non-current assets held for sale associated with discontinued operation of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOtherNoncurrentAssets" scale="0" unitRef="usd">768,101</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOtherNoncurrentAssets" scale="0" unitRef="usd">879,253</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total non-current assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">2,731,643</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">6,800,920</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">36,513,397</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">37,868,760</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: center">LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">CURRENT LIABILITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">491,850</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">506,881</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts payable - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NotesPayable" scale="0" unitRef="usd">1,033</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Advances from customers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:AdvancesFromCustomers" scale="0" unitRef="usd">11,024</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:AdvancesFromCustomers" scale="0" unitRef="usd">16,959</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Bank overdrafts</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BankOverdrafts" scale="0" unitRef="usd">74,425</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BankOverdrafts" scale="0" unitRef="usd">79,851</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Short-term loans - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:ShortTermLoanRelatedParties" scale="0" unitRef="usd">266,451</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:ShortTermLoanRelatedParties" scale="0" unitRef="usd">285,878</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Taxes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TaxesPayableCurrent" scale="0" unitRef="usd">11,923</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TaxesPayableCurrent" scale="0" unitRef="usd">24,077</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Due to related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToRelatedPartiesCurrent" scale="0" unitRef="usd">55,747</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToRelatedPartiesCurrent" scale="0" unitRef="usd">36,410</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating lease liabilities, current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityCurrent" scale="0" unitRef="usd">212,814</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityCurrent" scale="0" unitRef="usd">268,403</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLiabilitiesCurrent" scale="0" unitRef="usd">1,212,420</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLiabilitiesCurrent" scale="0" unitRef="usd">533,668</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Current liabilities held for sale associated with discontinued operation of Tiandihui</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent" scale="0" unitRef="usd">12,337,657</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent" scale="0" unitRef="usd">17,898,674</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total current liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">14,675,344</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">19,650,801</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">NON-CURRENT LIABILITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 9pt">Operating lease liabilities, non-current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingleaseliabilitiesRelatedPartyNonCurrentPortion" scale="0" unitRef="usd">683,113</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingleaseliabilitiesRelatedPartyNonCurrentPortion" scale="0" unitRef="usd">4,846,760</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Non-current liabilities held for sale associated with discontinued operation of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationNoncurrent" scale="0" unitRef="usd">1,037</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationNoncurrent" scale="0" unitRef="usd">1,132</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">15,359,494</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">24,498,693</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">SHAREHOLDERS&#8217; EQUITY :</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Common shares ($<ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" id="ix_8_fact" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" id="ix_9_fact" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="usdPershares">0.02</ix:nonFraction></ix:nonFraction> par value; <ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_4_fact" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" id="ix_5_fact" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">50,000,000</ix:nonFraction></ix:nonFraction> shares authorized; <ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_2_fact" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_3_fact" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">10,323,268</ix:nonFraction></ix:nonFraction> and <ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" id="ix_6_fact" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" id="ix_7_fact" name="us-gaap:PreferredStockSharesOutstanding" scale="0" unitRef="shares">5,218,681</ix:nonFraction></ix:nonFraction> shares issued and outstanding at December 31, 2022, and 2021, respectively)*</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_0_fact" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">206,465</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" id="ix_1_fact" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">104,374</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Additional paid-in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">48,089,439</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">42,151,658</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Statutory reserves</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:StatutoryReserves" scale="0" unitRef="usd">160,014</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:StatutoryReserves" scale="0" unitRef="usd">160,014</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accumulated deficit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">28,165,927</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">28,969,627</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Accumulated other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" unitRef="usd">428,249</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" scale="0" sign="-" unitRef="usd">460,702</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total TDH Holdings, Inc. shareholders&#8217; equity</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">20,718,240</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">12,985,717</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Non-controlling interest</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:MinorityInterest" scale="0" unitRef="usd">435,663</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:MinorityInterest" scale="0" unitRef="usd">384,350</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total shareholders&#8217; equity</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">21,153,903</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">13,370,067</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total liabilities and shareholders&#8217; equity</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">36,513,397</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">37,868,760</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b>&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><b>*</b></td><td style="text-align: justify"><ix:footnote id="ix_0_footnote" xml:lang="en-US"><b>Retrospectively restated to reflect the one-for-twenty
reverse split dated on June 14, 2022</b></ix:footnote></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of these consolidated financial statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 99; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="fin_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TDH HOLDINGS, INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For The Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Net revenue</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesRevenuesNet" scale="0" unitRef="usd">3,098,733</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesRevenuesNet" scale="0" unitRef="usd">1,081,095</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesRevenuesNet" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,098,733</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,081,095</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in">Cost of revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AffiliateCosts" scale="0" unitRef="usd">2,046,200</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AffiliateCosts" scale="0" unitRef="usd">769,967</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AffiliateCosts" scale="0" unitRef="usd">449,694</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total cost of revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">2,046,200</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">769,967</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">449,694</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">1,052,533</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">311,128</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">173,107</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 9pt">Operating expenses:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">Selling expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingExpense" scale="0" unitRef="usd">91,370</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingExpense" scale="0" unitRef="usd">74,278</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingExpense" scale="0" unitRef="usd">85,744</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">General and administrative expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">4,002,346</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">3,541,872</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">583,594</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">Impairment of long-lived assets other than goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsHeldForUse" scale="0" unitRef="usd">6,833</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in">Impairment of goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-5">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetImpairmentCharges" scale="0" unitRef="usd">355,570</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-6">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Total operating expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">4,100,549</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">3,971,720</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">669,338</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Loss from operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">3,048,016</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">3,660,592</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" sign="-" unitRef="usd">496,231</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">Interest expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" unitRef="usd">43,081</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" sign="-" unitRef="usd">14,518</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeExpenseNonoperatingNet" scale="0" unitRef="usd">32,448</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">Government subsidies</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-7">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-8">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:GovernmentSubsidie" scale="0" unitRef="usd">8,651</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">Other income</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIncome" scale="0" unitRef="usd">64,029</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIncome" scale="0" sign="-" unitRef="usd">28,667</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIncome" scale="0" sign="-" unitRef="usd">14,381</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0.25in">Other expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherExpenses" scale="0" unitRef="usd">26,120</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherExpenses" scale="0" unitRef="usd">642,216</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherExpenses" scale="0" unitRef="usd">38,901</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Investment income, net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentIncomeNonoperating" scale="0" unitRef="usd">4,161,093</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentIncomeNonoperating" scale="0" unitRef="usd">275,866</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentIncomeNonoperating" scale="0" unitRef="usd">2,120,241</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total other income (expenses)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingIncomeExpense" scale="0" unitRef="usd">4,242,083</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">409,535</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingIncomeExpense" scale="0" unitRef="usd">2,185,860</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Income (loss) before income tax provision</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest" scale="0" unitRef="usd">1,194,067</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest" scale="0" sign="-" unitRef="usd">4,070,127</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest" scale="0" unitRef="usd">1,689,629</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Income tax provision</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">900</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Net income (loss)&#160;&#160;from continuing operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,194,067</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">4,070,127</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,690,529</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Net loss from discontinued operations of Tiandihui</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromDiscontinuedOperationsNetOfTax" scale="0" sign="-" unitRef="usd">339,054</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromDiscontinuedOperationsNetOfTax" scale="0" sign="-" unitRef="usd">2,645,831</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromDiscontinuedOperationsNetOfTax" scale="0" sign="-" unitRef="usd">2,565,197</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Net income (loss)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" unitRef="usd">855,013</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,715,958</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Less: Net income (loss) attributable to non-controlling interest</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToNoncontrollingInterest" scale="0" unitRef="usd">51,313</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">595,650</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Net income (loss) attributable to TDH Holdings, Inc.</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">803,700</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">6,120,308</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Comprehensive income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Net income (loss)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLoss" scale="0" unitRef="usd">803,700</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLoss" scale="0" sign="-" unitRef="usd">6,120,308</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLoss" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Other comprehensive income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Foreign currency translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" unitRef="usd">888,951</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">247,807</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" scale="0" sign="-" unitRef="usd">355,411</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Total comprehensive income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">1,692,651</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">6,368,115</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">1,230,079</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Less: Comprehensive income (loss) attributable to noncontrolling interest</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-9">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-10">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-11">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Comprehensive income ( loss) attributable to TDH Holdings, Inc.</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" unitRef="usd">1,692,651</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">6,368,115</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ComprehensiveIncomeNetOfTax" scale="0" sign="-" unitRef="usd">1,230,079</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Earnings (loss) per common share attributable to TDH Holdings, Inc.</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Basic</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">0.10</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">1.17</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" sign="-" unitRef="usdPershares">0.38</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Diluted</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" unitRef="usdPershares">0.10</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">1.17</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareDiluted" scale="0" sign="-" unitRef="usdPershares">0.38</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold">Weighted average common shares outstanding*</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Basic</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" id="ix_10_fact" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">8,019,208</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" id="ix_11_fact" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">5,218,681</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" id="ix_12_fact" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">2,292,500</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Diluted</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" id="ix_13_fact" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" scale="0" unitRef="shares">8,019,208</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" id="ix_14_fact" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" scale="0" unitRef="shares">5,218,681</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" id="ix_15_fact" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" scale="0" unitRef="shares">2,292,500</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b>&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><b>*</b></td><td style="text-align: justify"><ix:footnote id="ix_1_footnote" xml:lang="en-US"><b>Retrospectively restated to reflect the one-for-twenty
reverse split dated on June 14, 2022</b></ix:footnote></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of these consolidated financial statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 100; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="fin_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TDH HOLDINGS, INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#8217;
EQUITY (DEFICIT)</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; padding-left: 9pt; text-align: center; text-indent: -9pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Number of<br/>
Shares*</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Common<br/>
Shares</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Additional<br/>
Paid-in<br/>
Capital</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Stock<br/>
Subscription<br/>
Receivable</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Statutory<br/>
Reserves</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Accumulated<br/>
Deficit</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Accumulated<br/>
Other<br/>
Comprehensive<br/>
Income (Loss)</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Noncontrolling<br/>
Interest</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Total <br/>
Stockholders&#8217;<br/>
Equity (Deficit)</b></span></td>
    <td style="white-space: nowrap; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 19%; padding-bottom: 4pt; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt"><b>Balance, December&#160;31, 2019</b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double">&#160;</td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" id="ix_16_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,292,500</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">45,850</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c8" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">21,963,678</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-12; font-size: 10pt"><b>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c10" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">160,014</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">21,974,651</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c12" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">142,516</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c13" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">8</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="width: 6%; border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">337,399</ix:nonFraction></b></span></td>
    <td style="width: 1%; padding-bottom: 4pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 9pt; text-indent: -9pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Net loss</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-13; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-14; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-15; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c18" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-16; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Foreign currency translation adjustment</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-17; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-18; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-19; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-20; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c19" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" scale="0" sign="-" unitRef="usd">355,411</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-21; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" scale="0" sign="-" unitRef="usd">355,411</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Purchase of noncontrolling interest</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c15" decimals="0" format="ixt:num-dot-decimal" name="petz:PurchaseOfNoncontrollingInterest" scale="0" sign="-" unitRef="usd">108</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-22; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-23; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-24; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-25; font-size: 10pt">-</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="petz:PurchaseOfNoncontrollingInterest" scale="0" unitRef="usd">8</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:PurchaseOfNoncontrollingInterest" scale="0" sign="-" unitRef="usd">100</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt"><b>Balance, December&#160;31, 2020</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c21" decimals="0" format="ixt:num-dot-decimal" id="ix_17_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">2,292,500</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">45,850</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c22" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">21,963,570</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-26; font-size: 10pt"><b>-</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c24" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">160,014</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c25" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">22,849,319</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">212,895</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-27; font-size: 10pt">-</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">892,780</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 4pt; padding-left: 9pt; text-indent: -9pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Net Loss</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,120,308</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">595,650</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">6,715,958</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Issuance of common stock</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" id="ix_18_fact" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">1,705,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">34,100</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c32" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">20,188,088</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">20,222,188</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Warrants exercised for cashless</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" id="ix_19_fact" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" scale="0" unitRef="shares">1,221,181</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c31" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" scale="0" unitRef="usd">24,424</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" scale="0" unitRef="usd">24,424</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Foreign currency translation adjustment</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c33" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" scale="0" sign="-" unitRef="usd">247,807</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" scale="0" sign="-" unitRef="usd">247,807</ix:nonFraction></span></td>
    <td><span style="font-size: 10pt">)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Acquisition of non-controlling interest</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c30" decimals="0" format="ixt:num-dot-decimal" name="petz:AcquisitionOfNoncontrollingInterest" scale="0" unitRef="usd">980,000</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:AcquisitionOfNoncontrollingInterest" scale="0" unitRef="usd">980,000</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 4pt; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt"><b>Balance, December 31, 2021</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c34" decimals="0" format="ixt:num-dot-decimal" id="ix_20_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">5,218,681</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c34" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">104,374</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">42,151,658</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$&#160;</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">160,014</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c37" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">28,969,627</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c38" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">460,702</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c39" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">384,350</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">13,370,067</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt; text-indent: -9pt">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Net income</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-28; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-29; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-30; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c43" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" unitRef="usd">803,700</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-31; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c45" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" unitRef="usd">51,313</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" unitRef="usd">855,013</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Issuance of common stock and warrants in private placements</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c46" decimals="0" format="ixt:num-dot-decimal" id="ix_21_fact" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">4,000,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c46" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">80,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c40" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">5,937,781</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-32; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-33; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-34; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-35; font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">6,017,781</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Warrants exercised for cashless</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c46" decimals="0" format="ixt:num-dot-decimal" id="ix_22_fact" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" scale="0" unitRef="shares">1,104,587</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c46" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" scale="0" unitRef="usd">22,091</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueStockOptionsExercised" scale="0" unitRef="usd">22,091</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Foreign currency translation adjustment</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-36; font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-37; font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-38; font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-39; font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c44" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" scale="0" unitRef="usd">888,951</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-40; font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" scale="0" unitRef="usd">888,951</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 4pt; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt"><b>Balance, December 31, 2022</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c47" decimals="0" format="ixt:num-dot-decimal" id="ix_23_fact" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">10,323,268</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c47" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">206,465</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c48" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">48,089,439</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$&#160;</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-41; font-size: 10pt">-&#160;</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">160,014</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b>(<ix:nonFraction contextRef="c51" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">28,165,927</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt"><b>)</b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c52" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">428,249</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">435,663</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt"><b>$&#160;</b></span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><b><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" unitRef="usd">21,153,903</ix:nonFraction></b></span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><b>*</b></td><td style="text-align: justify"><ix:footnote id="ix_2_footnote" xml:lang="en-US"><b>Retrospectively restated to reflect the one-for-twenty
reverse split dated on June 14, 2022</b></ix:footnote></td>
</tr></table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of these consolidated financial statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 101; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="fin_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TDH HOLDINGS, INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">For The&#160;Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-size: 10pt">&#160;<b>2022</b> &#160; &#160;</span></td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-size: 10pt">&#160;<b>2020</b></span></td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold">Cash flows from operating activities</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-indent: -0.125in; width: 64%; text-align: left">Net income (loss)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">803,700</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">6,120,308</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Less: net loss from discontinued operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromDiscontinuedOperationsNetOfTax" scale="0" sign="-" unitRef="usd">339,054</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromDiscontinuedOperationsNetOfTax" scale="0" sign="-" unitRef="usd">2,645,831</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromDiscontinuedOperationsNetOfTax" scale="0" sign="-" unitRef="usd">2,565,197</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Net income (loss)&#160;&#160;from continuing operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperations" scale="0" unitRef="usd">1,142,754</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperations" scale="0" sign="-" unitRef="usd">3,474,477</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeLossFromContinuingOperations" scale="0" unitRef="usd">1,690,529</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Depreciation and amortization expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">17,114</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">466,720</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationDepletionAndAmortization" scale="0" unitRef="usd">72,344</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Fair value change of short-term investments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:FairValueChangeOfShorttermInvestments" scale="0" unitRef="usd">4,161,093</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:FairValueChangeOfShorttermInvestments" scale="0" unitRef="usd">495,265</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:FairValueChangeOfShorttermInvestments" scale="0" unitRef="usd">2,120,241</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Impairment of goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-42">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetImpairmentCharges" scale="0" unitRef="usd">355,570</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-43">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Impairment of long-lived assets other than goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:ImpairmentOfLonglivedAssetsOtherThanGoodwill" scale="0" unitRef="usd">6,833</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:ImpairmentOfLonglivedAssetsOtherThanGoodwill" scale="0" unitRef="usd">217,257</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-44">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Inventory write-down</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryWriteDown" scale="0" unitRef="usd">11,532</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryWriteDown" scale="0" unitRef="usd">368,441</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryWriteDown" scale="0" unitRef="usd">234,861</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Allowance for doubtful accounts</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">7,210</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">2,168</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForDoubtfulAccounts" scale="0" unitRef="usd">593,142</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Deferred income taxes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-45">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-46">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxExpenseBenefit" scale="0" sign="-" unitRef="usd">1,106</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Loss (gain) on disposal of property, plant and equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainLossOnSaleOfPropertyPlantEquipment" scale="0" sign="-" unitRef="usd">153,983</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainLossOnSaleOfPropertyPlantEquipment" scale="0" unitRef="usd">5,905,889</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainLossOnSaleOfPropertyPlantEquipment" scale="0" unitRef="usd">77,287</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Amortization of operating lease right-of-use assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseRightOfUseAssetAmortizationExpenses" scale="0" unitRef="usd">408,198</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseRightOfUseAssetAmortizationExpenses" scale="0" sign="-" unitRef="usd">438,063</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseRightOfUseAssetAmortizationExpenses" scale="0" unitRef="usd">18,118</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Non-cash lease expense</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:NonCashOperatingExpensesPaidByRelatedParties" scale="0" sign="-" unitRef="usd">205,295</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:NonCashOperatingExpensesPaidByRelatedParties" scale="0" sign="-" unitRef="usd">4,786,099</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:NonCashOperatingExpensesPaidByRelatedParties" scale="0" sign="-" unitRef="usd">116</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Gain on forgiveness of short-term loan</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-47">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GainsLossesOnExtinguishmentOfDebt" scale="0" unitRef="usd">6,265</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Changes in operating assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-48">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherOperatingAssets" scale="0" unitRef="usd">277,310</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherOperatingAssets" scale="0" unitRef="usd">32,132</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInReceivables" scale="0" sign="-" unitRef="usd">2,733</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInReceivables" scale="0" sign="-" unitRef="usd">127,057</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInReceivables" scale="0" unitRef="usd">654,246</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Inventories, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInventories" scale="0" sign="-" unitRef="usd">38,904</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInventories" scale="0" unitRef="usd">368,246</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInventories" scale="0" unitRef="usd">304,953</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Operating lease liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreasingDecreasingOperatingLeaseLiabilities" scale="0" unitRef="usd">195,626</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreasingDecreasingOperatingLeaseLiabilities" scale="0" sign="-" unitRef="usd">4,830,456</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreasingDecreasingOperatingLeaseLiabilities" scale="0" unitRef="usd">9,382</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Operating lease liabilities &#8211; related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-49">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseLiabilitiesRelatedParties" scale="0" unitRef="usd">278,472</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseLiabilitiesRelatedParties" scale="0" sign="-" unitRef="usd">887</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Advances to suppliers, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInSuppliersAdvances" scale="0" unitRef="usd">8,197</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInSuppliersAdvances" scale="0" sign="-" unitRef="usd">3,653</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInSuppliersAdvances" scale="0" sign="-" unitRef="usd">21,701</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Prepayments and other current assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInPrepaidExpensesOther" scale="0" sign="-" unitRef="usd">1,017,261</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInPrepaidExpensesOther" scale="0" unitRef="usd">1,029,552</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInPrepaidExpensesOther" scale="0" unitRef="usd">57,561</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayable" scale="0" sign="-" unitRef="usd">305,382</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayable" scale="0" unitRef="usd">64,427</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayable" scale="0" unitRef="usd">68,095</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Accounts payable - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInAccountsPayablesRelatedParties" scale="0" sign="-" unitRef="usd">132,081</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInAccountsPayablesRelatedParties" scale="0" unitRef="usd">132,192</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-50">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Interest payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInterestPayableNet" scale="0" sign="-" unitRef="usd">411,112</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInterestPayableNet" scale="0" sign="-" unitRef="usd">12,787</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInterestPayableNet" scale="0" sign="-" unitRef="usd">60,773</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Interest payable - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInAccountPayableRelatedParties" scale="0" unitRef="usd">88,778</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInAccountPayableRelatedParties" scale="0" sign="-" unitRef="usd">2,501</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Notes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-51">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-52">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInNotesPayable" scale="0" unitRef="usd">969,254</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Taxes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable" scale="0" sign="-" unitRef="usd">17,103</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable" scale="0" unitRef="usd">15,331</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-53">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Advances from&#160;customers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-54">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-55">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInAdvancesFromCustomers" scale="0" unitRef="usd">1,790</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Advances from&#160;customer - related party</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInCustomerAdvancesRelatedParties" scale="0" sign="-" unitRef="usd">13,799</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInCustomerAdvancesRelatedParties" scale="0" unitRef="usd">19,125</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-56">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Deferred income tax liability</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-57">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:DeferredIncomeTaxLiabilityCurrent" scale="0" unitRef="usd">1,132</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-58">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Other current liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentLiabilities" scale="0" unitRef="usd">1,054,749</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentLiabilities" scale="0" unitRef="usd">793,726</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentLiabilities" scale="0" sign="-" unitRef="usd">1,017,864</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Net cash&#160;&#160;provided by (used in) operating activities from continuing operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations" scale="0" sign="-" unitRef="usd">1,977,789</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations" scale="0" sign="-" unitRef="usd">8,154,363</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations" scale="0" sign="-" unitRef="usd">755,118</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Net cash provided by (used in) operating activities from discontinued operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashProvidedByUsedInOperatingActivitiesDiscontinuedOperations" scale="0" sign="-" unitRef="usd">94,926</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashProvidedByUsedInOperatingActivitiesDiscontinuedOperations" scale="0" unitRef="usd">4,854,800</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashProvidedByUsedInOperatingActivitiesDiscontinuedOperations" scale="0" sign="-" unitRef="usd">1,401,656</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Net cash provided by (used in) operating activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">2,072,715</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">3,299,563</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">2,156,774</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Cash flows from investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Payments to acquire property, plant and equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-59">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-60">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:PaymentsToAcquireLandUseRights" scale="0" unitRef="usd">47,086</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Cash obtained from business acquisition</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-61">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired" scale="0" sign="-" unitRef="usd">171,827</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-62">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Payment for business acquisition</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-63">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireInvestments" scale="0" unitRef="usd">1,020,000</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-64">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Purchase of short-term investments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:PurchaseOfShorttermInvestments" scale="0" unitRef="usd">42,483,794</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:PurchaseOfShorttermInvestments" scale="0" unitRef="usd">4,372,809</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:PurchaseOfShorttermInvestments" scale="0" unitRef="usd">38,743,908</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Proceeds from sale of short-term investments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromSaleOfPropertyHeldForSale" scale="0" unitRef="usd">41,150,967</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromSaleOfPropertyHeldForSale" scale="0" unitRef="usd">3,578,206</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromSaleOfPropertyHeldForSale" scale="0" unitRef="usd">42,146,183</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Investment in equity</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireEquityMethodInvestments" scale="0" unitRef="usd">182,896</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Net cash used in (provided by) investing activities from continuing operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivitiesContinuingOperations" scale="0" sign="-" unitRef="usd">1,332,827</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivitiesContinuingOperations" scale="0" sign="-" unitRef="usd">1,642,776</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivitiesContinuingOperations" scale="0" unitRef="usd">3,172,293</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Net cash provided by investing activities from discontinued operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-65">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-66">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations" scale="0" unitRef="usd">182,896</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Net cash (used in) provided by&#160;&#160;investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">1,332,827</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">1,642,776</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" unitRef="usd">3,355,189</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Cash flows from financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Proceeds from issuance of common shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-67">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceOfCommonStock" scale="0" unitRef="usd">20,222,188</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Purchase of noncontrolling interest</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToMinorityShareholders" scale="0" unitRef="usd">100</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToMinorityShareholders" scale="0" unitRef="usd">100</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Collection of stock subscription receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromStockPlans" scale="0" unitRef="usd">6,017,781</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-70">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-71">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Proceeds from related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfRelatedPartyDebt" scale="0" unitRef="usd">22,410</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfRelatedPartyDebt" scale="0" unitRef="usd">4,085,071</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfRelatedPartyDebt" scale="0" sign="-" unitRef="usd">471,481</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Proceeds from short-term loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-72">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-73">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromShortTermDebt" scale="0" unitRef="usd">107,829</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Repayments of short-term loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-74">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfShortTermDebt" scale="0" sign="-" unitRef="usd">1,458,040</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfShortTermDebt" scale="0" unitRef="usd">999,448</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Proceeds from short-term loans - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-75">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-76">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:ProceedsFromShortTermLoansRelatedParties" scale="0" unitRef="usd">49,350</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Repayments of short-term loans - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-77">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:RepaymentsOfShortTermLoansRelatedParty" scale="0" sign="-" unitRef="usd">22,302</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:RepaymentsOfShortTermLoansRelatedParty" scale="0" unitRef="usd">52,086</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Payment to related party</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInOperatingAsset" scale="0" sign="-" unitRef="usd">15,829</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:IncreaseDecreaseInOperatingAsset" scale="0" unitRef="usd">4,231,327</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-78">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Net cash provided by (used in) financing activities from continuing operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivitiesContinuingOperations" scale="0" unitRef="usd">6,055,480</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivitiesContinuingOperations" scale="0" unitRef="usd">21,556,174</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivitiesContinuingOperations" scale="0" sign="-" unitRef="usd">1,365,936</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Net cash (used in) provided by financing activities from discontinued operations</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-79">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashProvidedByUsedInFinancingActivitiesDiscontinuedOperations" scale="0" sign="-" unitRef="usd">3,604,117</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashProvidedByUsedInFinancingActivitiesDiscontinuedOperations" scale="0" unitRef="usd">305,097</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Net cash provided by (used in) financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">6,055,480</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">17,952,057</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">1,060,839</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Effect of exchange rate changes on cash, cash equivalents and restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">985,263</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" sign="-" unitRef="usd">247,807</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">106,910</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Net change in cash, cash equivalents and restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" unitRef="usd">3,635,201</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" unitRef="usd">12,761,911</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" unitRef="usd">244,486</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Cash, cash equivalents and restricted cash, beginning of the year</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">19,510,975</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">6,749,064</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">6,504,578</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Cash, cash equivalents and restricted cash, end of the year</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">23,146,176</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">19,510,975</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">6,749,064</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Less: cash and restricted cash of discontinued operations at the end of the period</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations" scale="0" unitRef="usd">1,289,051</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations" scale="0" unitRef="usd">1,485,009</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations" scale="0" unitRef="usd">186,964</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Cash and restricted cash of continued operations at the end of the period</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">21,857,125</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">18,025,966</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" scale="0" unitRef="usd">6,562,100</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-indent: -0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Supplemental cash flow information</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Interest paid</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-80">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-81">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestPaidNet" scale="0" unitRef="usd">38,362</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 0.375in; text-indent: -0.125in; text-align: left">Income taxes paid</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-82">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-83">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-84">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.125in; text-indent: -0.125in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Non-cash investing and financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Liabilities assumed in connection with purchase of property, plant and equipment</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-85">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-86">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:LiabilitiesAssumedInConnectionWithPurchaseOfPropertyPlantAndEquipment" scale="0" unitRef="usd">14,592</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Notes payable reclassified to short-term loans</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-87"><span style="font-size: 10pt">&#160; &#160;</span></div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-88">&#160;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:ReceivablesFromCommonStockSubscriptionSettledWithLoanPayablesToRelatedParty" scale="0" unitRef="usd">908,850</ix:nonFraction></td><td style="text-align: left"></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Short-term loans settled by transferring an equity investment to the creditor</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-89">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssued1" scale="0" unitRef="usd">70,708</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Cashless exercise of warrants</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromWarrantExercises" scale="0" unitRef="usd">22,091</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromWarrantExercises" scale="0" unitRef="usd">24,424</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-90"><span style="font-size: 10pt">&#160; &#160; &#160;</span></div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.375in; text-indent: -0.125in; text-align: left">Right of use assets obtained in exchange for operating lease obligations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" scale="0" unitRef="usd">5,158,944</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-91">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left">Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Cash and cash equivalents</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">21,857,125</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">18,025,966</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Cash" scale="0" unitRef="usd">6,562,100</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -0.125in; text-align: left">Restricted cash</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:RestrictedCashCurrentAssets" scale="0" unitRef="usd">1,289,051</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:RestrictedCashCurrentAssets" scale="0" unitRef="usd">1,485,009</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="petz:RestrictedCashCurrentAssets" scale="0" unitRef="usd">186,964</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt; padding-left: 0.25in; text-indent: -0.125in; font-weight: bold; text-align: left"><b>Total cash,
    cash equivalents, and restricted cash</b></td><td style="padding-bottom: 4pt"><b>&#160;</b></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><b>$</b></td><td style="border-bottom: Black 4pt double; text-align: right"><b><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsAndShortTermInvestments" scale="0" unitRef="usd">23,146,176</ix:nonFraction></b></td><td style="padding-bottom: 4pt; text-align: left"><b>&#160;</b></td><td style="padding-bottom: 4pt"><b>&#160;</b></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><b>$</b></td><td style="border-bottom: Black 4pt double; text-align: right"><b><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsAndShortTermInvestments" scale="0" unitRef="usd">19,510,975</ix:nonFraction></b></td><td style="padding-bottom: 4pt; text-align: left"><b>&#160;</b></td><td style="padding-bottom: 4pt"><b>&#160;</b></td>
    <td style="border-bottom: Black 4pt double; text-align: left"><b>$</b></td><td style="border-bottom: Black 4pt double; text-align: right"><b><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsAndShortTermInvestments" scale="0" unitRef="usd">6,749,064</ix:nonFraction></b></td><td style="padding-bottom: 4pt; text-align: left"><b>&#160;</b></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying footnotes are an integral
part of these financial statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 102; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="fin_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TDH HOLDINGS, INC. AND SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 1 &#8211; ORGANIZATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_2" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">TDH Holdings, Inc. (&#8220;TDH Holdings&#8221;)
was incorporated on September 30, 2015 under the laws of the British Virgin Islands. On November 4, 2015, TDH Holdings incorporated a
wholly owned subsidiary, TDH HK Limited (&#8220;TDH HK&#8221;) in Hong Kong for the purpose of being a holding company for the equity
interest in Qingdao Tiandihui Foodstuffs Co., Ltd. (&#8220;Tiandihui&#8221;). On September 9, 2016, TDH Holdings incorporated TDH Petfood
LLC, a Nevada limited liability company, in which TDH Holdings holds <ix:nonFraction contextRef="c54" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">99</ix:nonFraction>% equity interest. In December, 2020, TDH Holdings acquired the
remaining <ix:nonFraction contextRef="c55" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">1</ix:nonFraction>% equity interest of TDH Petfood LLC with a consideration of $<ix:nonFraction contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferredOther1" scale="0" unitRef="usd">100</ix:nonFraction>. TDH Petfood LLC does not own any material assets or liabilities.
TDH Petfood LLC had no active business operations since its incorporation, and it has been deregistered and dissolved in 2021. Other
than cash and equity interest in TDH HK and TDH Petfood LLC, TDH Holdings has not conducted any active business operations or own any
material assets or liabilities prior to March 1, 2020 and started to invest in marketable securities since March 2020. TDH HK does not
conduct any operations or own any material assets or liabilities except for cash and the <ix:nonFraction contextRef="c28" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% of the equity interest of Tiandihui which
it acquired on February 21, 2016.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_3" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Tiandihui was founded in Qingdao City, Shandong
Province, People&#8217;s Republic of China (&#8220;PRC&#8221;) on April 22, 2002 as a limited liability company. As of December 31, 2022,
Tiandihui had one wholly owned subsidiary: Beijing Chongai Jiujiu Cultural Communication Co., Ltd. (&#8220;Chongai Jiujiu&#8221;), which
was incorporated on March 3, 2011, in Beijing City, PRC. Tiandihui and its wholly owned subsidiary are engaged in the business of development,
manufacturing and sales of high quality petfood products under our own formula patents. Our products are produced at Tiandihui facility
and sold to the pet owners in PRC and to the retailers and wholesalers throughout worldwide. On March 16, 2022, the People&#8217;s Court
of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application
of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, T<span style="font-family: Times New Roman, Times, Serif">ian</span>dihui
is now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings
have not been completed and are expected to be completed by the end of 2023. As a result, the operation results of Tiandihui was presented
as discontinued operations as of December 31, 2022 (see Note 4).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_4" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 21, 2016, TDH HK entered into an
equity transfer agreement with Rongfeng Cui and his wife Yanjuan Wang, the shareholders of Tiandihui at the time, to acquire <ix:nonFraction contextRef="c57" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% of
the equity interests in Tiandihui (&#8220;reorganization&#8221;).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_5" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 19, 2016, Tiandihui acquired <ix:nonFraction contextRef="c58" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% shares
of Chongai Jiujiu from Rongfeng Cui and Yanjuan Wang with a consideration of $<ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferredOther1" scale="0" unitRef="usd">87,849</ix:nonFraction> (RMB<ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferredOther1" scale="0" unitRef="cny">610,000</ix:nonFraction>). The acquisition of Chongai Jiujiu
is a transaction between entities under common control.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_6" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Immediately before and after the reorganization,
the same shareholders of Tiandihui controlled Tiandihui and TDH Holdings. Therefore, for accounting purposes, the reorganization is accounted
for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared
as if the current corporate structure had been in existence throughout the periods presented.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>



</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_7" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2018, the Company completed business
acquisitions of TDH Group BVBA, a Belgium entity and TDH JAPAN, a Japanese entity. TDH Group BVBA and TDH JAPAN had limited operation
activities for the year ended December 31, 2020. TDH JAPAN was dissolved in February 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 103; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_8" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 22, 2020, Qingdao Tiandihui Pet Foodstuffs
Co., Ltd. (&#8220;Tiandihui Pet Foodstuffs&#8221;) was incorporated in Qingdao City, PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_9" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 21, 2020, Qingdao Tiandihui Foodstuffs
Sales Co., Ltd. (&#8220;Tiandihui Foodstuffs Sales&#8221;) was incorporated in Qingdao City, PRC. Tiandihui Foodstuffs Sales is a wholly
owned subsidiary of Tiandihui Pet Foodstuffs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_10" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 27, 2020, TDH Foods Limited was incorporated
in Hong Kong, with the purpose of being a holding company for equity interests in Tiandihui Pet Foodstuffs. TDH Foods Limited does not
conduct any operations or own any material assets or liabilities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_11" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 24, 2020, TDH Holdings, Inc. acquired
<ix:nonFraction contextRef="c60" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% equity interests of TDH Foods Limited. The acquisition of TDH Foods Limited and its subsidiaries is a transaction between entities
under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate
structure had been in existence throughout the fiscal year presented.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_12" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 4, 2021, TDH Income Corporation (&#8220;TDH
Income&#8221;) was incorporated in Nevada. TDH Holdings, Inc. owns a <ix:nonFraction contextRef="c61" decimals="4" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">99.99</ix:nonFraction>% interest in TDH Income, and in December 2021, TDH Holdings,
Inc. acquired the remaining <ix:nonFraction contextRef="c62" decimals="4" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">0.01</ix:nonFraction>% interest in TDH Income. As a result, TDH Income became a wholly-owned subsidiary of TDH Holdings, Inc.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_13" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 9, 2021, Ruby21Noland LLC (&#8220;Ruby21Noland&#8221;)
was incorporated in Missouri. Ruby21Noland is a wholly owned subsidiary of TDH Income.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_14" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 31, 2021, TDH Income acquired <ix:nonFraction contextRef="c63" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">51</ix:nonFraction>%
equity interests of Far Ling&#8217;s Inc. and <ix:nonFraction contextRef="c64" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. (see Note 3)</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_15" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 22, 2022, Beijing Wenxin Co., Ltd.
(&#8220;Beijing Wenxin&#8221;) was incorporated in Beijing City, PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_16" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 27, 2023, Qingdao Chihong Information
Consulting Co., Ltd. (&#8220;Qingdao Chihong&#8221;) was incorporated in Qingdao City, PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">TDH Holdings and its consolidated subsidiaries
are collectively referred to herein as the &#8220;Company&#8221;, &#8220;we&#8221; and &#8220;us&#8221;, unless specific reference is
made to an entity.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">In
connection with the Company&#8217;s stock reverse split on June 14, 2022, the number of common stock associated with the warrants exercised
prior to June 14, 2022 has been retrospectively restated at the ratio of one-for-twenty and reflected in the consolidated financial statements.</span></p><div>



</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_1" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 2 &#8211; SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_2" id="_SignificantAccountingPoliciesTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Basis of Presentation and Principles of
Consolidation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_3" id="_SignificantAccountingPoliciesTextBlock-c0_cont_2"><ix:continuation continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_2" id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying audited financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America (&#8220;U.S. GAAP&#8221;).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_4" id="_SignificantAccountingPoliciesTextBlock-c0_cont_3"><ix:continuation continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_3" id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This basis of accounting differs in certain material
respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting
principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC (&#8220;PRC
GAAP&#8221;), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect
necessary adjustments not recorded in the books of account of the Company to present them in conformity with U.S. GAAP.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_5" id="_SignificantAccountingPoliciesTextBlock-c0_cont_4"><ix:continuation continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_4" id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The consolidated financial statements include
the accounts of the Company, its wholly-owned and majority-owned subsidiaries.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_6" id="_SignificantAccountingPoliciesTextBlock-c0_cont_5"><ix:continuation id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All significant intercompany accounts and transactions
have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of during the respective periods are included
in the consolidated statements of operations and comprehensive loss from the effective date of acquisition or up to the effective date
of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interest in subsidiaries is reflected in
the consolidated statements of operations and comprehensive loss.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 104; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_7" id="_SignificantAccountingPoliciesTextBlock-c0_cont_6"><ix:nonNumeric contextRef="c0" continuedAt="_DiscontinuedOperationsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:DiscontinuedOperationsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Discontinued operations</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_8" id="_SignificantAccountingPoliciesTextBlock-c0_cont_7"><ix:continuation continuedAt="_DiscontinuedOperationsPolicyTextBlock-c0_cont_2" id="_DiscontinuedOperationsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 16, 2022, the People&#8217;s Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of
bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, these legal
claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings
have not been completed and are expected to be completed by the end of 2023. As a result, the operation results of Tiandihui was presented
as discontinued operations as of December 31, 2022<span style="font-family: Times New Roman, Times, Serif">.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_9" id="_SignificantAccountingPoliciesTextBlock-c0_cont_8"><ix:continuation id="_DiscontinuedOperationsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A component of a reporting entity or a group
of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management
having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations
if the disposal represents a strategic shift that has (or will have) a major effect on an entity&#8217;s operations and financial results.
Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished,
operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed
of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity&#8217;s financial results and operations.
In the consolidated statements of operations and comprehensive loss, result from discontinued operations is reported separately from
the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial
effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated
except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations (see Note 4)</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_10" id="_SignificantAccountingPoliciesTextBlock-c0_cont_9"><ix:nonNumeric contextRef="c0" continuedAt="_PriorPeriodReclassificationAdjustmentDescription-c0_cont_1" escape="true" name="us-gaap:PriorPeriodReclassificationAdjustmentDescription"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Reclassifications</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_11" id="_SignificantAccountingPoliciesTextBlock-c0_cont_10"><ix:continuation id="_PriorPeriodReclassificationAdjustmentDescription-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the discontinued operations
of a business, certain prior-year amounts have been reclassified for consistency with the current-year presentation. These reclassifications
had no effect on the reported results of operations. The assets and liabilities related to the discontinued operations are classified
as assets/liabilities held for sale as of December 31, 2022 and 2021, while results of operations related to the discontinued operations,
including comparatives, were reported as losses from discontinued operations. Certain prior-year balance sheet accounts have been reclassified
to conform to the current-year presentation.<b>&#160;</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_12" id="_SignificantAccountingPoliciesTextBlock-c0_cont_11"><ix:nonNumeric contextRef="c0" continuedAt="petz_GoingConcernPolicyTextblock-c0_cont_1" escape="true" name="petz:GoingConcernPolicyTextblock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Going Concern</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_13" id="_SignificantAccountingPoliciesTextBlock-c0_cont_12"><ix:continuation continuedAt="petz_GoingConcernPolicyTextblock-c0_cont_2" id="petz_GoingConcernPolicyTextblock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our consolidated financial statements have been
prepared assuming we will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in
the normal course of business. For the year ended December 31, 2022, our revenue from the restaurant business segment increased by approximately
$<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="petz:IncurredNetLoss" scale="6" unitRef="usd">2.5</ix:nonFraction> million as compared to 2021 and we reported a net income of approximately $<ix:nonFraction contextRef="c0" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:InterestIncomeOther" scale="6" unitRef="usd">0.86</ix:nonFraction> million and cash flows from operating activities
of approximately $<ix:nonFraction contextRef="c0" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForOperatingActivities" scale="6" unitRef="usd">0.85</ix:nonFraction> million in 2022. However, due to the sharp rise in market prices of raw materials, the lack of operational efficiency
of our production facilities and our inability to make bank loan repayment upon maturity, we suspended our petfood production and normal
business operations and we were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations in
May 2020 factors including the Covid pandemic, the increase in cost of raw materials required for petfood production; accepting less orders
in an attempt to avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a decrease in our petfood
revenue from $<ix:nonFraction contextRef="c5" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="6" unitRef="usd">0.47</ix:nonFraction> million in 2021 and to only $<ix:nonFraction contextRef="c0" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInDeferredRevenue" scale="6" unitRef="usd">0.02</ix:nonFraction> million in 2022. Additionally, our remaining petfood production facility was frozen
by the court and became subject to a bankruptcy proceeding. We decided to discontinue our petfood manufacturing business segment in the
first quarter 2023 due to the above operational challenges. As a result, it is uncertain our future revenue and cash flows will be sufficient
to support our growth. In addition, although we received approximately $<ix:nonFraction contextRef="c0" decimals="-6" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromStockPlans" scale="6" unitRef="usd">6</ix:nonFraction> million net proceeds from the issuance of common shares to certain
investors during fiscal year 2022, there can be no assurances that future revenue or capital infusion will be sufficient to enable us
to develop our business to a level where it will be profitable or to generate positive cash flows. These factors raise substantial doubt
about the Company&#8217;s ability to continue as a going concern for the next twelve months from the date that our consolidated financial
statements are issued.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_14" id="_SignificantAccountingPoliciesTextBlock-c0_cont_13"><ix:continuation continuedAt="petz_GoingConcernPolicyTextblock-c0_cont_3" id="petz_GoingConcernPolicyTextblock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management&#8217;s plan to alleviate the substantial
doubt about the Company&#8217;s ability to continue as a going concern include attempting to improve its business profitability, its
ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working
capital funds through debt and equity financings to eliminate inefficiencies in order to meet its anticipated cash requirements. However,
there can be no assurance that these plans and arrangements will be sufficient to fund the Company&#8217;s ongoing capital expenditures,
working capital, and other requirements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 105; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_15" id="_SignificantAccountingPoliciesTextBlock-c0_cont_14"><ix:continuation id="petz_GoingConcernPolicyTextblock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course
of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_16" id="_SignificantAccountingPoliciesTextBlock-c0_cont_15"><ix:nonNumeric contextRef="c0" continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Foreign Currency Translation</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_17" id="_SignificantAccountingPoliciesTextBlock-c0_cont_16"><ix:continuation continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_2" id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements
are presented in United States dollar (&#8220;$&#8221;), which is the reporting currency of the Company. The functional currency of TDH
Holdings, TDH HK, TDH Petfood LLC TDH Income Corporation, Ruby21Noland LLC, Far Ling&#8217;s Inc, Bo Ling&#8217;s Chinese Restaurant,
Inc and TDH Foods Limited is United States dollar. The functional currency of Beijing Wenxin, Qingdao Chihong, Tiandihui, Tiandihui Pet
Foodstuffs, Tiandihui Foodstuffs Sales and Chongai Jiujiu is Renminbi (&#8220;RMB&#8221;). The functional currency of TDH Group BVBA
is Euro (&#8220;&#8364;&#8221;). The functional currency of TDH JAPAN is Yen (&#8220;&#165;&#8221;). For the subsidiaries whose functional
currencies are RMB, Euro and Yen, results of operations and cash flows are translated at average exchange rates during the period, assets
and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange
rates. The resulting translation adjustments are included in determining other comprehensive income or loss. Transaction gains and losses
are reflected in the consolidated statements of operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_18" id="_SignificantAccountingPoliciesTextBlock-c0_cont_17"><ix:continuation continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_3" id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exchange rates used to translate amounts
in RMB into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=RMB):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_19" id="_SignificantAccountingPoliciesTextBlock-c0_cont_18"><ix:nonNumeric contextRef="c0" continuedAt="petz_ScheduleOfExchangeRatesUsedToTranslateAmountsTableTextBlock-c0_cont_1" escape="true" name="petz:ScheduleOfExchangeRatesUsedToTranslateAmountsTableTextBlock"><ix:continuation continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_4" id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Period Covered</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Balance<br/> Sheet Date<br/> Rates</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average<br/> Rates</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Year ended December 31, 2022</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c70" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationBalanceSheetDateRate" scale="0" unitRef="pure">6.9646</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c70" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationAverageRates" scale="0" unitRef="pure">6.7261</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt">Year ended December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c71" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationBalanceSheetDateRate" scale="0" unitRef="pure">6.3757</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c71" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationAverageRates" scale="0" unitRef="pure">6.4515</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_20" id="_SignificantAccountingPoliciesTextBlock-c0_cont_19"><ix:continuation continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_5" id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exchange rates used to translate amounts
in Euro into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=&#8364;):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_21" id="_SignificantAccountingPoliciesTextBlock-c0_cont_20"><ix:continuation continuedAt="petz_ScheduleOfExchangeRatesUsedToTranslateAmountsTableTextBlock-c0_cont_2" id="petz_ScheduleOfExchangeRatesUsedToTranslateAmountsTableTextBlock-c0_cont_1"><ix:continuation continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_6" id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Period Covered</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Balance<br/> Sheet Date<br/> Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average<br/> Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Year ended December 31, 2022</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c72" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationBalanceSheetDateRate" scale="0" unitRef="pure">0.9383</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c72" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationAverageRates" scale="0" unitRef="pure">0.9485</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt">Year ended December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationBalanceSheetDateRate" scale="0" unitRef="pure">0.8831</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c73" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationAverageRates" scale="0" unitRef="pure">0.8448</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_22" id="_SignificantAccountingPoliciesTextBlock-c0_cont_21"><ix:continuation continuedAt="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_7" id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The exchange rates used to translate amounts
in Yen into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=&#165;):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_23" id="_SignificantAccountingPoliciesTextBlock-c0_cont_22"><ix:continuation id="petz_ScheduleOfExchangeRatesUsedToTranslateAmountsTableTextBlock-c0_cont_2"><ix:continuation id="_ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; border-bottom: Black 1.5pt solid">Period Covered</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Balance<br/> Sheet Date<br/> Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Average<br/> Rate</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Year ended December 31, 2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c74" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationBalanceSheetDateRate" scale="0" unitRef="pure">115.0536</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c74" decimals="4" format="ixt:num-dot-decimal" name="petz:ForeignCurrencyExchangeRateTranslationAverageRates" scale="0" unitRef="pure">109.7430</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p></ix:continuation></ix:continuation></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_24" id="_SignificantAccountingPoliciesTextBlock-c0_cont_23"><ix:nonNumeric contextRef="c0" continuedAt="_UseOfEstimates-c0_cont_1" escape="true" name="us-gaap:UseOfEstimates"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Use of Estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_25" id="_SignificantAccountingPoliciesTextBlock-c0_cont_24"><ix:continuation id="_UseOfEstimates-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information
that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived
with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information
is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful
lives and impairment of long-lived assets, allowance for credit losses, write-down in value of inventories and income taxes including
the valuation allowance for deferred tax assets. Estimates and assumptions are periodically reviewed and the effects of revisions are
reflected in the financial statements in the period they are determined to be necessary.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 106; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_26" id="_SignificantAccountingPoliciesTextBlock-c0_cont_25"><ix:nonNumeric contextRef="c0" continuedAt="petz_COVID19PandemicPolicyTextBlock-c0_cont_1" escape="true" name="petz:COVID19PandemicPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>COVID-19 Pandemic</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_27" id="_SignificantAccountingPoliciesTextBlock-c0_cont_26"><ix:continuation id="petz_COVID19PandemicPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The COVID-19 pandemic has created significant
public health concerns as well as economic disruption, uncertainty, and volatility which may negatively affect our business operations.
As a result, as the pandemic persists and/or if it worsens, our accounting estimates and assumptions could be impacted in subsequent
periods, and it is reasonably possible such changes could be significant (although the potential effects cannot be estimated at this
time).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_28" id="_SignificantAccountingPoliciesTextBlock-c0_cont_27"><ix:nonNumeric contextRef="c0" continuedAt="_CashAndCashEquivalentsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cash and Cash Equivalents</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_29" id="_SignificantAccountingPoliciesTextBlock-c0_cont_28"><ix:continuation id="_CashAndCashEquivalentsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cash and cash equivalents include cash on hand,
cash in time deposits and highly liquid investments purchased with original maturities of three months or less.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_30" id="_SignificantAccountingPoliciesTextBlock-c0_cont_29"><ix:nonNumeric contextRef="c0" continuedAt="_CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy-c0_cont_1" escape="true" name="us-gaap:CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Restricted Cash</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_31" id="_SignificantAccountingPoliciesTextBlock-c0_cont_30"><ix:continuation id="_CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Restricted cash mainly represents bank deposits judicially frozen by
the court as a result of legal proceedings as of December 31, 2022 and 2021. Restricted cash amounted to $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">1,289,051</ix:nonFraction> and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">1,485,009</ix:nonFraction> as
of December 31, 2022 and 2021, respectively and was included in &#8220;current assets held for sales associated with discontinued operation
of Tiandihui&#8221; (see Note 4).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_32" id="_SignificantAccountingPoliciesTextBlock-c0_cont_31"><ix:nonNumeric contextRef="c0" continuedAt="petz_ShortTermInvestmentsPolicy-c0_cont_1" escape="true" name="petz:ShortTermInvestmentsPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Short-term Investments</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_33" id="_SignificantAccountingPoliciesTextBlock-c0_cont_32"><ix:continuation continuedAt="petz_ShortTermInvestmentsPolicy-c0_cont_2" id="petz_ShortTermInvestmentsPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Starting March 2020 and throughout the years ended
December 31, 2020, 2021 and 2022, TDH Holdings invested in equity securities of certain publicly listed companies through various open
market transactions. The investments in marketable securities are managed and operated by an asset management company. Pursuant to the
asset management agreement, for the period from March 1, 2020 to December 31, 2022, the asset management company is entitled to <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:RealizedGainPercentage" scale="-2" unitRef="pure">25</ix:nonFraction>% of
total realized gain if certain condition is met. In addition, if the total accumulated realized gain as of December 31, 2022, 2021 and
2020 is in excess of <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:ExcessOfAccumulatedRealizedGainPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="petz:ExcessOfAccumulatedRealizedGainPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c6" decimals="2" format="ixt:num-dot-decimal" name="petz:ExcessOfAccumulatedRealizedGainPercentage" scale="-2" unitRef="pure">20</ix:nonFraction></ix:nonFraction></ix:nonFraction>% (&#8220;exceeding portion&#8221;), the asset management company is entitled to additional monetary reward in
the amount of <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:ExceedingPortionOfTotalRealizedGainPercentage" scale="-2" unitRef="pure">70</ix:nonFraction>% of the exceeding portion of the total realized gain.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_34" id="_SignificantAccountingPoliciesTextBlock-c0_cont_33"><ix:continuation id="petz_ShortTermInvestmentsPolicy-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">TDH Holdings&#8217; investments in marketable
securities are accounted for pursuant to ASC 321 and reported at their readily determinable fair value as quoted by market exchanges in
the consolidated balance sheets with change in fair value recognized in earnings. Changes in fair value, including realized gain of approximately
$<ix:nonFraction contextRef="c0" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:DebtSecuritiesTradingRealizedGain" scale="6" unitRef="usd">4.19</ix:nonFraction> million and unrealized loss of approximately $<ix:nonFraction contextRef="c0" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:DebtSecuritiesUnrealizedGainLoss" scale="6" unitRef="usd">0.03</ix:nonFraction> million for the year ended December 31, 2022. Changes in fair value, including
realized gain of approximately $<ix:nonFraction contextRef="c5" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:RealizedInvestmentGainsLosses" scale="6" unitRef="usd">0.07</ix:nonFraction> million and unrealized gain of approximately $<ix:nonFraction contextRef="c5" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:MarketableSecuritiesUnrealizedGainLoss" scale="6" unitRef="usd">0.5</ix:nonFraction> million for the year ended December 31, 2021, which
were included in &#8220;investment income&#8221; in the accompanying consolidated statements of operations and comprehensive loss.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_35" id="_SignificantAccountingPoliciesTextBlock-c0_cont_34"><ix:nonNumeric contextRef="c0" continuedAt="_ConsolidationVariableInterestEntityPolicy-c0_cont_1" escape="true" name="us-gaap:ConsolidationVariableInterestEntityPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Business Combination</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_36" id="_SignificantAccountingPoliciesTextBlock-c0_cont_35"><ix:continuation continuedAt="_ConsolidationVariableInterestEntityPolicy-c0_cont_2" id="_ConsolidationVariableInterestEntityPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In October 2021, the Company acquired <ix:nonFraction contextRef="c65" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">51</ix:nonFraction>% equity
interests of Far Ling&#8217;s Inc. and <ix:nonFraction contextRef="c66" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. (see Note 3). Business combination
is accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired
are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair
value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included
in the statement of operations from the date of acquisition.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_37" id="_SignificantAccountingPoliciesTextBlock-c0_cont_36"><ix:continuation continuedAt="_ConsolidationVariableInterestEntityPolicy-c0_cont_3" id="_ConsolidationVariableInterestEntityPolicy-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Non-controlling interest</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_38" id="_SignificantAccountingPoliciesTextBlock-c0_cont_37"><ix:continuation id="_ConsolidationVariableInterestEntityPolicy-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 <span style="font-family: Times New Roman, Times, Serif">and
</span>2021, non-controlling interest represents <ix:nonFraction contextRef="c67" decimals="2" format="ixt:num-dot-decimal" name="petz:NoncontrollingInterestOwnershipPercentagesByParent" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="petz:NoncontrollingInterestOwnershipPercentagesByParent" scale="-2" unitRef="pure">49</ix:nonFraction></ix:nonFraction>% of the equity interest in Far Ling&#8217;s Inc. owned by minority shareholder, which
is not under the Company&#8217;s control.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_39" id="_SignificantAccountingPoliciesTextBlock-c0_cont_38"><ix:nonNumeric contextRef="c0" continuedAt="petz_CurrentExpectedCreditLossesPolicyTextBlock-c0_cont_1" escape="true" name="petz:CurrentExpectedCreditLossesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Current Expected Credit Losses</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_40" id="_SignificantAccountingPoliciesTextBlock-c0_cont_39"><ix:continuation continuedAt="petz_CurrentExpectedCreditLossesPolicyTextBlock-c0_cont_2" id="petz_CurrentExpectedCreditLossesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 1, 2020, the Company adopted FASB
Accounting Standards Update (ASU) 2016-13 &#8220;<i>Financial Instruments &#8211; Credit Losses: Measurement of Credit Losses on Financial
Instruments</i>,&#8221; (ASC Topic 326) and its amendments using the modified retrospective approach. Results for reporting periods beginning
after January 1, 2020 are presented under ASC Topic 326, while prior amounts are not adjusted. The Company&#8217;s accounts receivables,
advances to suppliers, prepayments and other current assets are within the scope of ASC Topic 326. This ASU replaces the incurred loss
impairment model with an expected credit loss impairment model for financial instruments. The amendments require entities to consider
forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current
or not yet due, which were not considered under the previous accounting guidance. The adoption of this standard did not have a material
impact to the Company&#8217;s consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_41" id="_SignificantAccountingPoliciesTextBlock-c0_cont_40"><ix:continuation id="petz_CurrentExpectedCreditLossesPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our expected loss allowance methodology is developed
using an aging method and analyses of historical credit losses experience, current economic conditions, future market forecasts and any
recoveries in assessing the lifetime expected credit losses. Additionally, external data and macroeconomic factors are also considered.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 107; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_42" id="_SignificantAccountingPoliciesTextBlock-c0_cont_41"><ix:nonNumeric contextRef="c0" continuedAt="_InventoryPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:InventoryPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Inventories</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_43" id="_SignificantAccountingPoliciesTextBlock-c0_cont_42"><ix:continuation id="_InventoryPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories, consisting of raw materials, work
in progress, and finished goods, are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis.
The valuation of inventory requires us to estimate excess and slow-moving inventory. We evaluate the recoverability of our inventory
based on assumption about expected demand, market conditions, forecasts prepared by its customers, sales contracts and orders in hand.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_44" id="_SignificantAccountingPoliciesTextBlock-c0_cont_43"><ix:nonNumeric contextRef="c0" continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Property, Plant and Equipment</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_45" id="_SignificantAccountingPoliciesTextBlock-c0_cont_44"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_2" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment, are stated at
cost less depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing
use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical
properties are capitalized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_46" id="_SignificantAccountingPoliciesTextBlock-c0_cont_45"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_3" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation of property, plant and equipment
is calculated based on cost, less their estimated residual value, if any, using the straight-line method over their estimated useful
lives. Estimated useful lives are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_47" id="_SignificantAccountingPoliciesTextBlock-c0_cont_46"><ix:nonNumeric contextRef="c0" escape="true" name="petz:PropertyAndEquipmentEstimatedUsefulLivesTableTextBlock"><ix:continuation id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 49%"><span style="font-size: 10pt">Machinery equipment</span></td>
    <td style="width: 1%; text-align: justify">&#160;</td>
    <td style="width: 49%; text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c75" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">5</ix:nonNumeric> - <ix:nonNumeric contextRef="c76" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">20</ix:nonNumeric> years</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Computer software</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c77" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">10</ix:nonNumeric> years</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Electronic equipment</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c78" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">5</ix:nonNumeric> - <ix:nonNumeric contextRef="c79" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">10</ix:nonNumeric> years</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Office equipment</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c80" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">5</ix:nonNumeric> - <ix:nonNumeric contextRef="c81" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">10</ix:nonNumeric> years</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Motor vehicles</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c82" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">5</ix:nonNumeric> - <ix:nonNumeric contextRef="c83" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">10</ix:nonNumeric> years</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Leasehold improvement</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c84" name="petz:PropertyPlantAndEquipmentUsefulLifes">Shorter of the lease term or estimated useful life</ix:nonNumeric></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Buildings</span></td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c85" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">20</ix:nonNumeric> - <ix:nonNumeric contextRef="c86" format="ixt-sec:duryear" name="us-gaap:PropertyPlantAndEquipmentUsefulLife">50</ix:nonNumeric> years</span></td>
    <td>&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_48" id="_SignificantAccountingPoliciesTextBlock-c0_cont_47"><ix:nonNumeric contextRef="c0" continuedAt="petz_LandUsesRightsPolicyTextBlock-c0_cont_1" escape="true" name="petz:LandUsesRightsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Land Use Rights</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_49" id="_SignificantAccountingPoliciesTextBlock-c0_cont_48"><ix:continuation id="petz_LandUsesRightsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the law of PRC, the government owns
all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by
the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods
the rights are granted.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_50" id="_SignificantAccountingPoliciesTextBlock-c0_cont_49"><ix:nonNumeric contextRef="c0" continuedAt="_GoodwillAndIntangibleAssetsGoodwillPolicy-c0_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsGoodwillPolicy"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Goodwill</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_51" id="_SignificantAccountingPoliciesTextBlock-c0_cont_50"><ix:continuation id="_GoodwillAndIntangibleAssetsGoodwillPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Goodwill represents the excess of the consideration
paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill
is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred.
Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair
value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are
not reversed.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_52" id="_SignificantAccountingPoliciesTextBlock-c0_cont_51"><ix:nonNumeric contextRef="c0" continuedAt="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Impairment of Long-Lived Assets and Goodwill</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_53" id="_SignificantAccountingPoliciesTextBlock-c0_cont_52"><ix:continuation continuedAt="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_2" id="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least
annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying
amount of the asset. The amount of impairment is measured as the difference between the asset&#8217;s estimated fair value and its book
value. The Company recorded impairment loss on long-lived assets other than goodwill of $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" scale="0" unitRef="usd">6,833</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" scale="0" unitRef="usd">217,257</ix:nonFraction> and $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfLongLivedAssetsToBeDisposedOf" scale="0" unitRef="usd">0</ix:nonFraction> for the years ended December
31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_54" id="_SignificantAccountingPoliciesTextBlock-c0_cont_53"><ix:continuation continuedAt="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_3" id="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s goodwill is tested for impairment
on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable.
In testing for goodwill impairment, the Company compares the fair value of its reporting unit to its carrying value including the goodwill
of that unit. If the carrying value, including goodwill, exceeds the reporting unit&#8217;s fair value, the Company will recognize an
impairment loss for the amount by which the carrying amount exceeds the reporting unit&#8217;s fair value. The loss recognized cannot
exceed the total amount of goodwill allocated to that reporting unit. Given the Company&#8217;s net loss position, the Company recorded
impairment of goodwill of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairmentLoss" scale="0" unitRef="usd">0</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairmentLoss" scale="0" unitRef="usd">335,570</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairmentLoss" scale="0" unitRef="usd">0</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 108; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_55" id="_SignificantAccountingPoliciesTextBlock-c0_cont_54"><ix:continuation continuedAt="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_4" id="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" continuedAt="_InvestmentPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:InvestmentPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with ASC 323, <i>Investments-Equity
Method and Joint Ventures</i>, the Company applies the equity method of accounting to equity investments, over which it has significant
influence but does not own a majority equity interests or otherwise control. Significant influence is generally considered to exist when
the Company has an ownership interest in the voting stock of the investee between <ix:nonFraction contextRef="c68" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">20</ix:nonFraction>% and <ix:nonFraction contextRef="c69" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">50</ix:nonFraction>%. Under the equity method, the Company initially
records its investment at cost and subsequently adjusts the carrying amount of the investment to recognize the Company&#8217;s proportionate
share of each equity investee&#8217;s net income or loss into earnings after the date of investment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_56" id="_SignificantAccountingPoliciesTextBlock-c0_cont_55"><ix:continuation continuedAt="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_5" id="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_4"><ix:continuation continuedAt="_InvestmentPolicyTextBlock-c0_cont_2" id="_InvestmentPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company continually reviews its investment
under equity method to determine whether a decline in fair value to below the carrying value is other-than-temporary. The primary factors
in its determination are the duration and severity of the decline in fair value, the financial condition, operating performance and the
prospects of the equity investee, and other company specific information such as recent financing rounds. If the decline in fair value
is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_57" id="_SignificantAccountingPoliciesTextBlock-c0_cont_56"><ix:continuation id="_ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock-c0_cont_5"><ix:continuation id="_InvestmentPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For equity securities without readily determinable
fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures to estimate fair
value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative
to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions
for identical or similar investments of the same issuer, if any. The Company makes assessment of whether an investment is impaired at
each reporting date and recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated
statements of operations and comprehensive loss if there is any. The Company makes a qualitative assessment of whether the investments
are impaired at each reporting date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_58" id="_SignificantAccountingPoliciesTextBlock-c0_cont_57"><ix:nonNumeric contextRef="c0" continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fair Value of Financial Instruments</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_59" id="_SignificantAccountingPoliciesTextBlock-c0_cont_58"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_2" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting guidance defines fair value as the
price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded
at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions
that market participants would use when pricing the asset or liability.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_60" id="_SignificantAccountingPoliciesTextBlock-c0_cont_59"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_3" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company measures certain financial assets,
including the investment under the measurement alternative method and equity method on other-than-temporary basis, intangible assets
and fixed assets at fair value when an impairment charge is recognized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_61" id="_SignificantAccountingPoliciesTextBlock-c0_cont_60"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_4" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting guidance establishes a fair value
hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring
fair value. A financial instrument&#8217;s categorization within the fair value hierarchy is based upon the lowest level of input that
is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair
value:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_62" id="_SignificantAccountingPoliciesTextBlock-c0_cont_61"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_5" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 1 &#8212; Observable inputs that reflect
quoted prices (unadjusted) for identical assets or liabilities in active markets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_63" id="_SignificantAccountingPoliciesTextBlock-c0_cont_62"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_6" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 2 &#8212; Include other inputs that are
directly or indirectly observable in the marketplace.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_64" id="_SignificantAccountingPoliciesTextBlock-c0_cont_63"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_7" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Level 3 &#8212; Unobservable inputs which are
supported by little or no market activity.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_65" id="_SignificantAccountingPoliciesTextBlock-c0_cont_64"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_8" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting guidance also describes three main
approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The
market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets
or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement
is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that
would currently be required to replace an asset.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 109; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_66" id="_SignificantAccountingPoliciesTextBlock-c0_cont_65"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_9" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For certain of the Company&#8217;s financial
instruments, including cash and cash equivalents, restricted cash, accounts receivable, advances to suppliers, inventories, prepayments
and other current assets, accounts payable, advances from customers, taxes payable, bank overdrafts, short-term loans and other current
liabilities, the carrying amounts approximate their fair values due to the short maturities. The fair value of the Company&#8217;s investments
in the equity securities of publicly listed companies are measured using quoted market prices.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_67" id="_SignificantAccountingPoliciesTextBlock-c0_cont_66"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_10" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents information about
the Company&#8217;s assets that are measured at fair value on a recurring basis as of December 31, 2022 and 2021 and indicates the fair
value hierarchy of the valuation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_68" id="_SignificantAccountingPoliciesTextBlock-c0_cont_67"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock"><ix:continuation id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Quoted<br/>
                                            Prices in<br/> Active<br/> Markets for<br/> Identical<br/> Assets</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(Level
                                            1)</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Significant<br/>
                                            Other<br/> Observation<br/> Inputs</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(Level
                                            2)</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Significant<br/>
                                            Unobservable<br/> Inputs</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>(Level
                                            3)</b></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<br/> Balance</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Publicly listed equity securities</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%; padding-left: 9pt">As of December 31, 2022</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c87" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermInvestments" scale="0" unitRef="usd">9,922,366</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-92">&#160;&#160;&#160;&#160;-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-93">&#160;&#160;&#160;&#160;&#160;&#160;-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermInvestments" scale="0" unitRef="usd">9,922,366</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt; padding-left: 9pt">As of December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermInvestments" scale="0" unitRef="usd">4,428,446</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-94">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-95">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermInvestments" scale="0" unitRef="usd">4,428,446</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_69" id="_SignificantAccountingPoliciesTextBlock-c0_cont_68"><ix:nonNumeric contextRef="c0" continuedAt="_LessorLeasesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:LessorLeasesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Lease Commitments</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_70" id="_SignificantAccountingPoliciesTextBlock-c0_cont_69"><ix:continuation continuedAt="_LessorLeasesPolicyTextBlock-c0_cont_2" id="_LessorLeasesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 1, 2019, the Company adopted ASU 2016-02,
<i>Leases </i>(together with all amendments subsequently issued thereto, &#8220;ASC Topic 842&#8221;), using the modified retrospective
method. The Company elected the transition method which allows entities to initially apply the requirements by recognizing a cumulative-effect
adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, previously
reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented.
The Company elected the package of practical expedients permitted under the transition guidance within ASC Topic 842, which among others,
allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification,
and the accounting treatment of initial direct costs. The Company elected not to record assets and liabilities on its consolidated balance
sheet for new or existing lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on
a straight-line basis over the lease term. In addition, the Company elected the land easement transition practical expedient and did
not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for
as a lease.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_71" id="_SignificantAccountingPoliciesTextBlock-c0_cont_70"><ix:continuation continuedAt="_LessorLeasesPolicyTextBlock-c0_cont_3" id="_LessorLeasesPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The initial lease liability is equal to the future
fixed minimum lease payments discounted using the Company&#8217;s incremental borrowing rate, on a secured basis. The lease term includes
option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The
initial measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs and prepayments,
less any lease incentives.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_72" id="_SignificantAccountingPoliciesTextBlock-c0_cont_71"><ix:continuation id="_LessorLeasesPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payments made under operating leases are charged
to the consolidated statements of operations and comprehensive loss on a straight-line basis over the lease period.&#160;The Company does
not have finance lease arrangements as of December 31, 2022 and 2021. See Note 15 for further discussion.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 110; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_73" id="_SignificantAccountingPoliciesTextBlock-c0_cont_72"><ix:nonNumeric contextRef="c0" continuedAt="_EarningsPerSharePolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:EarningsPerSharePolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>E<span style="font-family: Times New Roman, Times, Serif">a</span>rnings
(Loss) per Share</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_74" id="_SignificantAccountingPoliciesTextBlock-c0_cont_73"><ix:continuation id="_EarningsPerSharePolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic earnings (loss) per common share is computed
by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during
the period. Diluted earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the sum
of the weighted average number of common shares outstanding and dilutive potential common shares during the period. Potentially dilutive
common shares consist of common shares warrants using the treasury stock method. Common equivalent shares are not included in the denominator
of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. There were no diluted shares for
the years ended December 31, 2022, 2021 and 2020.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_75" id="_SignificantAccountingPoliciesTextBlock-c0_cont_74"><ix:nonNumeric contextRef="c0" continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:RevenueRecognitionPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenue Recognition</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_76" id="_SignificantAccountingPoliciesTextBlock-c0_cont_75"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_2" id="_RevenueRecognitionPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is measured according to ASC Topic 606,
<i>Revenue from Contracts with Customers</i>. The Company currently generated revenue from <ix:nonFraction contextRef="c0" decimals="0" format="ixt-sec:numwordsen" name="petz:NumberOfSourcesGeneratedRevenue" scale="0" unitRef="pure">two</ix:nonFraction> sources: sales of petfood products and
revenue from restaurant business operation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_77" id="_SignificantAccountingPoliciesTextBlock-c0_cont_76"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_3" id="_RevenueRecognitionPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue for sale of products is derived from contracts
with customers, which primarily include the sale of petfood products. The Company recognizes revenue upon transfer of control of promised
goods in a contract with a customer in an amount that reflects the consideration the Company expects to receive in exchange for those
products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery
and risk of loss has transferred to the customer.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_78" id="_SignificantAccountingPoliciesTextBlock-c0_cont_77"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_4" id="_RevenueRecognitionPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the business acquisition as
disclosed in Note 3, the Company started to generate revenue from restaurant business operation since late 2021. Revenue from providing
dining services and sales of meals is recognized at point when services are rendered. The Company recognizes revenues in the form of
restaurant sales at the time of the sale when payment is made by the customer, as the Company has completed its performance obligation,
namely the provision of food and beverage, and the accompanying customer service, during the customer&#8217;s visit to the restaurant.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_79" id="_SignificantAccountingPoliciesTextBlock-c0_cont_78"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_5" id="_RevenueRecognitionPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized net of any taxes collected
from customers that are subsequently remitted to governmental authorities, including value-added tax (&#8220;VAT&#8221;), business tax,
applicable local government levies. At the time revenue is recognized, allowances are recorded, with the related reduction to revenue,
for estimated sales returns based upon historical experience and related terms of customer arrangements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_80" id="_SignificantAccountingPoliciesTextBlock-c0_cont_79"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_6" id="_RevenueRecognitionPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The allowance for sales returns recorded by the
Company was $<ix:nonFraction contextRef="c0" decimals="-6" format="ixt:num-dot-decimal" name="petz:SalesRevenue" scale="6" unitRef="usd">0</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="-6" format="ixt:num-dot-decimal" name="petz:SalesRevenue" scale="6" unitRef="usd">0</ix:nonFraction> million and $<ix:nonFraction contextRef="c6" decimals="-6" format="ixt:num-dot-decimal" name="petz:SalesRevenue" scale="6" unitRef="usd">0</ix:nonFraction> million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company does not provide
rebate, pricing protection or any other concessions to its customers.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_81" id="_SignificantAccountingPoliciesTextBlock-c0_cont_80"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_7" id="_RevenueRecognitionPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company elected to account for shipping and
handling fees that occur after the customer has obtained control of goods, for instance, free onboard shipping point arrangements, as
a fulfillment cost and accrues for such costs.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_82" id="_SignificantAccountingPoliciesTextBlock-c0_cont_81"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_8" id="_RevenueRecognitionPolicyTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management has concluded that the disaggregation
level is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is
measured on the same basis as under the revenue standard. See Note 14 for information regarding revenue disaggregation by product lines,
marketing channels and countries.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_83" id="_SignificantAccountingPoliciesTextBlock-c0_cont_82"><ix:continuation id="_RevenueRecognitionPolicyTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Contract liabilities are recorded when consideration is received from
a customer prior to transferring the control of goods to the customer or other conditions under the terms of a sales contract. As of December
31, 2022 and 2021, the Company recorded contract liabilities of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:ContractLiabilities" scale="0" unitRef="usd">11,024</ix:nonFraction> and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:ContractLiabilities" scale="0" unitRef="usd">16,959</ix:nonFraction>, respectively, which were presented as advances from
customers on the accompanying consolidated balance sheets.&#160;During the years ended December 31, 2022, 2021 and 2020, the Company recognized
$<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ContractWithCustomerLiabilityRevenueRecognized" scale="0" unitRef="usd">6,970</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ContractWithCustomerLiabilityRevenueRecognized" scale="0" unitRef="usd">163,074</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ContractWithCustomerLiabilityRevenueRecognized" scale="0" unitRef="usd">56,983</ix:nonFraction> of contract liabilities as revenue, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_84" id="_SignificantAccountingPoliciesTextBlock-c0_cont_83"><ix:nonNumeric contextRef="c0" continuedAt="petz_GovernmentGrantsPolicyTextBlock-c0_cont_1" escape="true" name="petz:GovernmentGrantsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Government Grants</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_85" id="_SignificantAccountingPoliciesTextBlock-c0_cont_84"><ix:continuation id="petz_GovernmentGrantsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Government grants include cash subsidies as well
as other subsidies received from the PRC government by the subsidiaries of the Company. Such subsidies are generally provided as incentives
from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements
of operations and comprehensive loss when cash is received and the relevant performance criteria specified in the grant are met.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 111; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_86" id="_SignificantAccountingPoliciesTextBlock-c0_cont_85"><ix:nonNumeric contextRef="c0" continuedAt="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:SellingGeneralAndAdministrativeExpensesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Selling Expenses</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_87" id="_SignificantAccountingPoliciesTextBlock-c0_cont_86"><ix:continuation continuedAt="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c0_cont_2" id="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Selling expenses consist primarily of advertising,
salaries and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged
to expense as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_88" id="_SignificantAccountingPoliciesTextBlock-c0_cont_87"><ix:continuation continuedAt="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c0_cont_3" id="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shipping and handling expenses amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:ShippingHandlingAndTransportationCost" scale="0" unitRef="usd">1,828</ix:nonFraction>,
$<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:ShippingHandlingAndTransportationCost" scale="0" unitRef="usd">4,864</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:ShippingHandlingAndTransportationCost" scale="0" unitRef="usd">620</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_89" id="_SignificantAccountingPoliciesTextBlock-c0_cont_88"><ix:continuation id="_SellingGeneralAndAdministrativeExpensesPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Advertising costs amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdvertisingExpense" scale="0" unitRef="usd">93,197</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdvertisingExpense" scale="0" unitRef="usd">22,019</ix:nonFraction>
and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdvertisingExpense" scale="0" unitRef="usd">144</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_90" id="_SignificantAccountingPoliciesTextBlock-c0_cont_89"><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Income Taxes</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_91" id="_SignificantAccountingPoliciesTextBlock-c0_cont_90"><ix:continuation id="_IncomeTaxPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for income taxes under the
provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized
for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting
amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected
to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected
to be realized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_92" id="_SignificantAccountingPoliciesTextBlock-c0_cont_91"><ix:nonNumeric contextRef="c0" continuedAt="_ComprehensiveIncomePolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ComprehensiveIncomePolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Comprehensive Income (Loss)</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_93" id="_SignificantAccountingPoliciesTextBlock-c0_cont_92"><ix:continuation id="_ComprehensiveIncomePolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC 220 &#8220;<i>Comprehensive Income</i>&#8221;
established standards for reporting and display of comprehensive income (loss), its components and accumulated balances. Components of
comprehensive income ( loss) include net income (loss) and foreign currency translation adjustment. As of December 31, 2022, 2021 and
2020, the only component of accumulated other comprehensive income (loss) was foreign currency translation adjustment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_94" id="_SignificantAccountingPoliciesTextBlock-c0_cont_93"><ix:nonNumeric contextRef="c0" continuedAt="_CommitmentsAndContingenciesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Loss Contingencies</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_95" id="_SignificantAccountingPoliciesTextBlock-c0_cont_94"><ix:continuation continuedAt="_CommitmentsAndContingenciesPolicyTextBlock-c0_cont_2" id="_CommitmentsAndContingenciesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company records accruals for certain of its
outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably
estimated. When a loss contingency is not both probable and estimable, the Company does not record an accrued liability but discloses
the nature and the amount of possible loss, if material, in the notes to the consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_96" id="_SignificantAccountingPoliciesTextBlock-c0_cont_95"><ix:continuation id="_CommitmentsAndContingenciesPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews the developments in contingencies
that could affect the amount of the provisions that has been previously recorded, and the matters and related possible losses disclosed.
The Company makes adjustments to provisions and changes to its disclosures accordingly to reflect the impact of negotiations, settlements,
rulings, advice of legal counsel, and updated information. The assessment of whether a loss is probable or reasonably possible, and whether
the loss or a range of loss is estimable, often involves complex judgments about future events. Management is often unable to estimate
the loss or a range of loss, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages,
or (iii) there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions.
In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including eventual loss,
fine, penalty or business impact, if any.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_97" id="_SignificantAccountingPoliciesTextBlock-c0_cont_96"><ix:nonNumeric contextRef="c0" continuedAt="_ConcentrationRiskCreditRisk-c0_cont_1" escape="true" name="us-gaap:ConcentrationRiskCreditRisk"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Concentration of Credit Risk</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_98" id="_SignificantAccountingPoliciesTextBlock-c0_cont_97"><ix:continuation id="_ConcentrationRiskCreditRisk-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject
the Company to concentrations of credit risk are cash and cash equivalents, restricted cash, and accounts receivable arising from its
normal business activities. The Company places its cash and cash equivalents in financial institutions in the U.S., the PRC, Hong Kong
and New Zealand, which the management believes to be credit-worthy. The Company establishes an allowance for credit losses primarily
based upon the age of receivables and factors surrounding the credit risk of specific customers.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_99" id="_SignificantAccountingPoliciesTextBlock-c0_cont_98"><ix:nonNumeric contextRef="c0" continuedAt="petz_RelatedPartiesTransactionsPolicyTextBlock-c0_cont_1" escape="true" name="petz:RelatedPartiesTransactionsPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Related Parties Transactions</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_100" id="_SignificantAccountingPoliciesTextBlock-c0_cont_99"><ix:continuation continuedAt="petz_RelatedPartiesTransactionsPolicyTextBlock-c0_cont_2" id="petz_RelatedPartiesTransactionsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A related party is generally defined as (i) any
person that holds 10% or more of the Company&#8217;s securities and their immediate families, (ii) the Company&#8217;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. Related parties may be individuals or corporate entities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>


</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 112; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_101" id="_SignificantAccountingPoliciesTextBlock-c0_cont_100"><ix:continuation id="petz_RelatedPartiesTransactionsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transactions involving related parties cannot
be presumed to be carried out on an arm&#8217;s-length basis, as the requisite conditions of competitive, free market dealings may not
exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated
on terms equivalent to those that prevail in arm&#8217;s-length transactions unless such representations can be substantiated. It is
not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_102" id="_SignificantAccountingPoliciesTextBlock-c0_cont_101"><ix:nonNumeric contextRef="c0" continuedAt="_SegmentReportingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:SegmentReportingPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Segment Reporting</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_103" id="_SignificantAccountingPoliciesTextBlock-c0_cont_102"><ix:continuation id="_SegmentReportingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company uses the &#8220;management approach&#8221;
in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company&#8217;s
chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company&#8217;s
reportable segments. The Company&#8217;s chief operating decision maker has been identified as the chief executive officer of the Company
who reviews financial information based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel.
This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined
that it has only <ix:nonFraction contextRef="c0" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:NumberOfOperatingSegments" scale="0" unitRef="pure">two</ix:nonFraction> operating segments as of December 31, 2022 (see Note 14).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_104" id="_SignificantAccountingPoliciesTextBlock-c0_cont_103"><ix:nonNumeric contextRef="c0" continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Recently Issued Accounting Pronouncements
Not Yet Adopted </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SignificantAccountingPoliciesTextBlock-c0_cont_104"><ix:continuation id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2020, the FASB issued ASU 2020-04,&#160;<i>Reference
Rate Reform, (Topic 848)</i>. The amendments in Topic 848 provide optional expedients and exceptions for applying GAAP to contracts,
hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied
by all entities as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect
to apply the amendments prospectively through December 31, 2022. The Company did not utilize the optional expedients and exceptions provided
by this standard during the year ended December 31, 2021. The Company is evaluating the impact of this standard on its consolidated financial
statements and disclosures.</p></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:BusinessCombinationDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 3- BUSINESS COMBINATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_2" id="_BusinessCombinationDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 31, 2021, the Company completed the
acquisition of <ix:nonFraction contextRef="c63" decimals="2" format="ixt:num-dot-decimal" name="petz:BusinessCombinationStepAcquisitionEquityInterestInAcquirePercentage" scale="-2" unitRef="pure">51</ix:nonFraction>% equity interests of Far Ling&#8217;s Inc. and <ix:nonFraction contextRef="c93" decimals="2" format="ixt:num-dot-decimal" name="petz:BusinessCombinationStepAcquisitionEquityInterestInAcquirePercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_3" id="_BusinessCombinationDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Stock Purchase Agreements executed
on October 31, 2021, the Company acquired <ix:nonFraction contextRef="c94" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">51</ix:nonFraction>% equity interest of Far Ling&#8217;s Inc. for a total cash consideration of $<ix:nonFraction contextRef="c95" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="0" unitRef="usd">850,000</ix:nonFraction> and
acquired <ix:nonFraction contextRef="c96" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% equity interest in Bo Ling&#8217;s Chinese Restaurant, Inc. for a total cash consideration of $<ix:nonFraction contextRef="c97" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="0" unitRef="usd">170,000</ix:nonFraction>. The Company believes
that the acquisition brings new revenue source for the Company going forward.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_4" id="_BusinessCombinationDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The transaction was accounted for as a business
combination using the purchase method of accounting. The purchase price allocation of the transaction was determined by the Company with
the assistance of an independent appraisal firm based on the estimated fair value of&#160;the assets acquired and liabilities assumed
as of the acquisition date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_5" id="_BusinessCombinationDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents the purchase price
allocation to assets acquired and liabilities assumed as of the acquisition date. The non-controlling interest represents the fair value
of the <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:BusinessCombinationAcquisitionNonControllingInterest" scale="-2" unitRef="pure">49</ix:nonFraction>% equity interest not held by the Company:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_6" id="_BusinessCombinationDisclosureTextBlock-c0_cont_5"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of<br/> October 31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: justify">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Cash acquired</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c98" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireBusinessesAndInterestInAffiliates" scale="0" unitRef="usd">171,827</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsReceivables" scale="0" unitRef="usd">68,551</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Inventories, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory" scale="0" unitRef="usd">30,306</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Prepaid expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsPrepaidExpenseAndOtherAssets" scale="0" unitRef="usd">198,939</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsOther" scale="0" unitRef="usd">1,199</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Property and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment" scale="0" unitRef="usd">1,179,190</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Intangible assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIndefiniteLivedIntangibleAssets" scale="0" unitRef="usd">532,895</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c98" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAcquiredDuringPeriod" scale="0" unitRef="usd">355,570</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Customer deposit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssetsCustomerDeposits" scale="0" sign="-" unitRef="usd">3,209</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Accrued rent</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAccruedRent" scale="0" sign="-" unitRef="usd">357,619</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Accrued salary and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOther" scale="0" unitRef="usd">177,650</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Noncontrolling interest</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNoncontrollingInterest" scale="0" sign="-" unitRef="usd">980,000</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 4pt">Total consideration</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetAcquisitionContingentConsiderationLiability" scale="0" unitRef="usd">1,020,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 113; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_7" id="_BusinessCombinationDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The intangible assets mainly include Bo Ling&#8217;s
Chinese Restaurant, Inc.&#8217;s brand name of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill" scale="0" unitRef="usd">532,895</ix:nonFraction> to attract customers and bring in increased revenue to benefit the Company in
the future. The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired
that cannot be recognized separately as identifiable assets under U.S. GAAP.&#160;Goodwill is not amortized and is not deductible for
tax purposes.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_8" id="_BusinessCombinationDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the non-controlling interest
in Far Ling&#8217;s Inc. was determined based on the purchase price allocation report prepared by an independent third-party appraiser
by using discount cash flow model.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_9" id="_BusinessCombinationDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There was no impairment of Bo Ling&#8217;s intangible
assets as of December 31, 2022, because there was no impairment indicator as the Company&#8217;s restaurant business was profitable during
the year ended December 31, 2022. There was no impairment of Bo Ling&#8217;s intangible assets as of December 31, 2022, because there
was no impairment indicator as the Company&#8217;s restaurant business was profitable during the year ended December 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_BusinessCombinationDisclosureTextBlock-c0_cont_10" id="_BusinessCombinationDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amounts of revenue and net income (loss)
of Far Ling&#8217;s Inc. and Bo Ling&#8217;s Chinese Restaurant, Inc. as included in the Company&#8217;s consolidated statement of operations
for the years ended December 31, 2022 and 2021 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_BusinessCombinationDisclosureTextBlock-c0_cont_10"><ix:nonNumeric contextRef="c0" escape="true" name="srt:ScheduleOfCondensedIncomeStatementTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year<br/> ended<br/> December&#160;31,<br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">From<br/> acquisition<br/> date to<br/> December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Net Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessAcquisitionNetRevenue" scale="0" unitRef="usd">3,074,007</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessAcquisitionNetRevenue" scale="0" unitRef="usd">606,463</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net income (loss)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessAcquisitionNetIncomeLoss" scale="0" unitRef="usd">104,720</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:BusinessAcquisitionNetIncomeLoss" scale="0" sign="-" unitRef="usd">1,215,613</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 4 &#8211; DISCONTINUED OPERATION</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_2" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s subsidiary, Qingdao Tiandihui Foodstuffs
Co., Ltd. (&#8220;Tiandihui&#8221;), is mainly engaged in the development, manufacture and sale of petfood in China and other regions.
On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the
acceptance of creditors&#8217; application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy
proceedings. As a result, the operation results of Tiandihui was reported as discontinued operations as of December 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_3" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The discontinued operation represents a strategic
shift that has a major effect on the Company&#8217;s operations and financial results, which trigger discontinued operations accounting
in accordance with ASC 205-20-45. The assets and liabilities related to the discontinued operations are classified as assets/liabilities
held for sale as of December 31, 2022 and 2021, while results of operations related to the discontinued operations for the years ended
December 31, 2022, 2021 and 2020, were reported as income (loss) from discontinued operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_4" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The results of discontinued operations for years
ended December 31, 2022, 2021 and 2020 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_5" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfDisposalGroupsIncludingDiscontinuedOperationsIncomeStatementBalanceSheetAndAdditionalDisclosuresTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="width: 64%">Revenue</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationRevenue" scale="0" unitRef="usd">159</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationRevenue" scale="0" unitRef="usd">10,794</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationRevenue" scale="0" unitRef="usd">192,424</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Cost of revenues</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationCostsOfGoodsSold" scale="0" unitRef="usd">5,260</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationCostsOfGoodsSold" scale="0" unitRef="usd">342,496</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationCostsOfGoodsSold" scale="0" unitRef="usd">407,366</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Gross profit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss" scale="0" sign="-" unitRef="usd">5,101</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-96">(331,02</div></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss" scale="0" sign="-" unitRef="usd">214,942</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Operating expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOperatingExpense" scale="0" unitRef="usd">140,073</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOperatingExpense" scale="0" unitRef="usd">621,760</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOperatingExpense" scale="0" unitRef="usd">1,491,473</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">(Loss) income from discontinued operations</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss" scale="0" sign="-" unitRef="usd">145,174</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss" scale="0" sign="-" unitRef="usd">953,462</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss" scale="0" sign="-" unitRef="usd">1,706,415</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Other income (expense), net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOtherExpense" scale="0" unitRef="usd">193,880</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOtherExpense" scale="0" unitRef="usd">1,692,369</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationOtherExpense" scale="0" unitRef="usd">858,782</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">(Loss) income before tax</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationInterestIncome" scale="0" unitRef="usd">339,054</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationInterestIncome" scale="0" unitRef="usd">2,645,831</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationInterestIncome" scale="0" unitRef="usd">2,565,197</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Net (loss) income from discontinued operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationNetlossIncomeFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">339,054</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationNetlossIncomeFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">2,645,831</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationNetlossIncomeFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">2,565,197</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 114; Value: 1 --><div>
    </div><div style="border-bottom: Black 1.5pt solid; margin-top: 12pt; margin-bottom: 6pt"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_6" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assets and liabilities of the discontinued operations
as of December 31, 2022 and 2021 consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_7" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_6"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; font-weight: bold">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December&#160;31,</td><td style="white-space: nowrap; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December&#160;31,</td><td style="white-space: nowrap; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="6" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>CURRENT ASSETS:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Restriced cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationCashAndCashEquivalents" scale="0" unitRef="usd">1,289,051</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-97">14,85,009</div></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAccountsNotesAndLoansReceivableNet" scale="0" unitRef="usd">2,513</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAccountsNotesAndLoansReceivableNet" scale="0" unitRef="usd">235</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Prepayments and other current assets, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPrepaidAndOtherAssetsCurrent" scale="0" unitRef="usd">549,771</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPrepaidAndOtherAssetsCurrent" scale="0" unitRef="usd">5,870,073</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total current assets held for sales</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperationCurrent" scale="0" unitRef="usd">1,841,335</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperationCurrent" scale="0" unitRef="usd">7,355,317</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0.25in">NON-CURRENT ASSETS</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Property, plant and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipmentCurrent" scale="0" unitRef="usd">665,492</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipmentCurrent" scale="0" unitRef="usd">761,761</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Land use rights, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationLandUseRightsNet" scale="0" unitRef="usd">102,609</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationLandUseRightsNet" scale="0" unitRef="usd">117,492</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total non-current assets held for sales</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAssetsNoncurrent" scale="0" unitRef="usd">768,101</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAssetsNoncurrent" scale="0" unitRef="usd">879,253</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Total assets held for sales</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsHeldForSaleNotPartOfDisposalGroupCurrent" scale="0" unitRef="usd">2,609,436</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsHeldForSaleNotPartOfDisposalGroupCurrent" scale="0" unitRef="usd">8,234,570</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">CURRENT LIABILITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAccountsPayable" scale="0" unitRef="usd">2,714,811</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAccountsPayable" scale="0" unitRef="usd">2,967,905</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Advances from customers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAccruedLiabilities" scale="0" unitRef="usd">85,136</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationAccruedLiabilities" scale="0" unitRef="usd">93,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Short term loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPensionPlanBenefitObligationCurrent" scale="0" unitRef="usd">4,980,335</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPensionPlanBenefitObligationCurrent" scale="0" unitRef="usd">5,440,350</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Short-term loans - related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPostretirementPlanBenefitObligationCurrent" scale="0" unitRef="usd">246,454</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationPostretirementPlanBenefitObligationCurrent" scale="0" unitRef="usd">269,235</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Taxes payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationTaxesPayable" scale="0" unitRef="usd">13,897</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationTaxesPayable" scale="0" unitRef="usd">58,541</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Due to related parties</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationDueToRelatedParties" scale="0" unitRef="usd">712,516</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationDueToRelatedParties" scale="0" unitRef="usd">778,377</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; text-align: left">Other current liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationsOtherCurrentLiabilities" scale="0" unitRef="usd">3,584,508</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:DisposalGroupIncludingDiscontinuedOperationsOtherCurrentLiabilities" scale="0" unitRef="usd">8,291,266</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total current liabilities held for sales</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrentLiabilitiesHeldForSales" scale="0" unitRef="usd">12,337,657</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrentLiabilitiesHeldForSales" scale="0" unitRef="usd">17,898,674</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.25in">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-left: 9pt">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Non-current Liabilities held for sale</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperation" scale="0" unitRef="usd">1,037</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperation" scale="0" unitRef="usd">1,132</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Total liabilities held for sales</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperation" scale="0" unitRef="usd">12,338,694</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperation" scale="0" unitRef="usd">17,899,806</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_8" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before the discontinued operations of Tiandihui,
the Company had short-term bank loans of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermBankLoansAndNotesPayable" scale="0" unitRef="usd">4,986,206</ix:nonFraction>, $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermBankLoansAndNotesPayable" scale="0" unitRef="usd">5,440,350</ix:nonFraction>, and $<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermBankLoansAndNotesPayable" scale="0" unitRef="usd">8,391,323</ix:nonFraction> as of December 31, 2022, 2021 and 2020, respectively.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_9" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended December 31, 2020 and 2019,
the Company entered into various loans agreements with various Chinese banks, other entities and individuals for an aggregated amount
of $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:AggregatedAmount" scale="0" unitRef="usd">107,829</ix:nonFraction> and $<ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="petz:AggregatedAmount" scale="0" unitRef="usd">1,046,275</ix:nonFraction>, respectively, to facilitate its business operations. Interest rate for the loans outstanding during the years
ended December 31, 2020 and 2019 ranged from <ix:nonFraction contextRef="c101" decimals="4" format="ixt:num-dot-decimal" name="srt:FinancingReceivableNonaccrualToOutstandingPercent" scale="-2" unitRef="pure">4.15</ix:nonFraction>% to <ix:nonFraction contextRef="c102" decimals="2" format="ixt:num-dot-decimal" name="srt:FinancingReceivableNonaccrualToOutstandingPercent" scale="-2" unitRef="pure">24</ix:nonFraction>% and from <ix:nonFraction contextRef="c28" decimals="4" format="ixt:num-dot-decimal" name="srt:FinancingReceivableNonaccrualToOutstandingPercent" scale="-2" unitRef="pure">2.46</ix:nonFraction>% to <ix:nonFraction contextRef="c14" decimals="2" format="ixt:num-dot-decimal" name="srt:FinancingReceivableNonaccrualToOutstandingPercent" scale="-2" unitRef="pure">25</ix:nonFraction>% per annum, respectively. Except using the proceeds received
from the auction of the land and factory buildings on the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd. to make the repayment of
approximately $<ix:nonFraction contextRef="c100" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfDebt" scale="6" unitRef="usd">3.2</ix:nonFraction> million to CCB as disclosed below, the Company did not enter into new loan agreements with financial institutions during
the year ended December 31, 2022. As a result, the total outstanding short-term loan included in the current liabilities from discontinued
operations at December 31, 2022 was approximately $<ix:nonFraction contextRef="c0" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:ShortTermLeasePayments" scale="6" unitRef="usd">4.99</ix:nonFraction> million.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_10" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the years ended December 31, 2019, the Company issued notes payable to Shanghai Pudong Development Bank (&#8220;SPDB&#8221;) to
pay the holders according to the terms of the agreement. At the maturity, the Company did not make repayment to SPDB. In November 2019,
SPDB filed litigation against the Company. In October 2020, the court has ruled that, among others, the Company should repay SPDB principal
and interests in full within 10 days from the date of ruling. As of the date of this filing, the Company has not fulfilled the court order.
During the year ended December 31, 2020, SPDB used the Company&#8217;s restricted cash deposited in this bank to settle against partial
of outstanding balance of the notes. The Company did not make additional repayment to SPDB during the year ended December 31, 2022 and
2021. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced
the acceptance of creditors&#8217; application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd. Accordingly, the outstanding
notes payable to SPDB is now subject to the bankruptcy proceedings (see Note 15). Therefore, the unpaid notes payable to SPDB were included
in current liabilities from discontinued operations on the consolidated balance sheets as of December 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_11" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December 31, 2022 and 2021, corporate or personal guarantees
provided for those loans were as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_12" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; width: 1%"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: top; width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTransactionAmountsOfTransaction" scale="0" unitRef="usd">572,976</ix:nonFraction></span></td> <td style="vertical-align: bottom; width: 1%">&#160;</td> <td style="vertical-align: bottom; width: 1%">&#160;</td> <td style="vertical-align: bottom; width: 89%; text-align: justify"><span style="font-size: 10pt">Pledged by cash deposit of RMB<ix:nonFraction contextRef="c104" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepositAssets" scale="0" unitRef="cny">300,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c104" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepositAssets" scale="0" unitRef="usd">43,000</ix:nonFraction>) from Gaochuang, real property of Rongfeng Cui and Yanjuan Wang, former CEO of the Company and his wife, and land use right and real property of Qingdao Saike Environmental Technology Co., Ltd; Guaranteed by Rongfeng Cui, Yanjuan Wang and Gaochuang.</span></td></tr> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c105" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTransactionAmountsOfTransaction" scale="0" unitRef="usd">1,541,857</ix:nonFraction></span></td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Pledged by real property of the Company and real property of Rongfeng Cui; Guaranteed by Rongfeng Cui and Yanjuan Wang</span></td></tr> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c106" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTransactionAmountsOfTransaction" scale="0" unitRef="usd">3,136,910</ix:nonFraction></span></td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Guaranteed by Rongfeng Cui and Yanjuan Wang</span></td></tr> <tr> <td style="vertical-align: top">&#160;</td> <td style="vertical-align: top; text-align: right">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: justify">&#160;</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"><span style="font-size: 10pt">$</span></td> <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RelatedPartyTransactionAmountsOfTransaction" scale="0" unitRef="usd">188,607</ix:nonFraction></span></td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom">&#160;</td> <td style="vertical-align: bottom; text-align: justify"><span style="font-size: 10pt">Pledged by restricted cash of RMB<ix:nonFraction contextRef="c107" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="cny">300,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c107" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCash" scale="0" unitRef="usd">47,054</ix:nonFraction>), four patents and certain equipment of the Company; Guaranteed by Rongfeng Cui, Yanjuan Wang and Qingdao Saike Environmental Technology Co., Ltd.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>


</div><!-- Field: Page; Sequence: 115; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_13" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 20, 2018, the Company entered into
a loan agreement with China Construction Bank (&#8220;CCB&#8221;) to borrow RMB<ix:nonFraction contextRef="c108" decimals="0" format="ixt:num-dot-decimal" name="petz:LoanAgreement" scale="0" unitRef="cny">21,450,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c108" decimals="0" format="ixt:num-dot-decimal" name="petz:LoanAgreement" scale="0" unitRef="usd">3,119,000</ix:nonFraction>). The loan bears an
annual interest rate of <ix:nonFraction contextRef="c3" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:InvestmentInterestRate" scale="-2" unitRef="pure">5.39</ix:nonFraction>% and is due in 84 months. Pursuant to the loan agreement, the proceeds of the loan can only be used in the
purchase of manufacturing facility and the associated land use right located at Lingang Economic Development Zone, Huangdao District,
Qingdao, Shandong Province, PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_14" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The loan agreement between the Company and CCB
contains a number of covenants and restrictions. Such covenants and restrictions include, but are not limited to, financial ratios. Unless
a breach is remediated or a waiver is obtained, a breach of such covenants and restrictions generally permits lender to demand accelerated
repayment of principal and interest.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_15" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2018, the Company did not meet
the financial ratios set forth in the debt covenants. Starting December 2019, the Company has been in default on the loan. In January
2020, CCB filed litigation against the Company. In April 2020, the court has ruled that, among others, the Company should repay CCB the
principal and interests in full within 10 days from the date of ruling. On March 13, 2021, the land and factory buildings on the land
owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were auctioned by the court for $<ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfLoanCosts" scale="0" unitRef="usd">5,098,461</ix:nonFraction> (RMB<ix:nonFraction contextRef="c110" decimals="-4" format="ixt:num-dot-decimal" name="petz:AccruedInterestAmount" scale="6" unitRef="cny">33.14</ix:nonFraction> million), of which, $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfLoanCosts" scale="0" unitRef="usd">3,192,827</ix:nonFraction> (RMB<ix:nonFraction contextRef="c3" decimals="-4" format="ixt:num-dot-decimal" name="petz:AccruedInterestAmount" scale="6" unitRef="cny">21.14</ix:nonFraction>
million) has been used to repay loan principal and accrued interest to CCB. The repayment has been completed by April 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_16" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s repayments of substantially
all its outstanding short-term loans were delinquent on or around November 2019, and the Company is involved in a number of lawsuits filed
by various lenders. See further discussions in Note 15 and Note 18.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_17" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 16, 2022, the People&#8217;s Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of
bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, the short-term
bank loans borrowed by Tiandihui are now under bankruptcy proceedings, and have been reclassified and included in &#8220;liabilities held
for sales&#8221; as reflected in the consolidated balance sheets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_18" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 20, 2018, the Company entered into
a loan agreement with China Construction Bank (&#8220;CCB&#8221;) to borrow RMB<ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="petz:LoanAgreement" scale="0" unitRef="cny">21,450,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="petz:LoanAgreement" scale="0" unitRef="usd">3,119,000</ix:nonFraction>). The loan bears an
annual interest rate of <ix:nonFraction contextRef="c111" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:InvestmentInterestRate" scale="-2" unitRef="pure">5.39</ix:nonFraction>% and is due in 84 months. Pursuant to the loan agreement, the proceeds of the loan can only be used in the
purchase of manufacturing facility and the associated land use right located at Lingang Economic Development Zone, Huangdao District,
Qingdao, Shandong Province, PRC.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_19" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The loan agreement between the Company and CCB
contains a number of covenants and restrictions. Such covenants and restrictions include, but are not limited to, financial ratios. Unless
a breach is remediated or a waiver is obtained, a breach of such covenants and restrictions generally permits lender to demand accelerated
repayment of principal and interest.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_20" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2018, the Company did not meet
the financial ratios set forth in the debt covenants. Starting December 2019, the Company has been in default on the loan. In January
2020, CCB filed litigation against the Company. In April 2020, the court has ruled that, among others, the Company should repay CCB the
principal and interests in full within 10 days from the date of ruling. On March 13, 2021, the land and factory buildings on the land
owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were auctioned by the court for $<ix:nonFraction contextRef="c112" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfLoanCosts" scale="0" unitRef="usd">5,098,461</ix:nonFraction> (RMB<ix:nonFraction contextRef="c113" decimals="-4" format="ixt:num-dot-decimal" name="petz:AccruedInterestAmount" scale="6" unitRef="cny">33.14</ix:nonFraction> million), of which, $<ix:nonFraction contextRef="c114" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsOfLoanCosts" scale="0" unitRef="usd">3,192,827</ix:nonFraction> (RMB<ix:nonFraction contextRef="c115" decimals="-4" format="ixt:num-dot-decimal" name="petz:AccruedInterestAmount" scale="6" unitRef="cny">21.14</ix:nonFraction>
million) has been used to repay loan principal and accrued interest to CCB. The repayment has been completed by April 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_21" id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s repayments of substantially
all its outstanding short-term loans were delinquent on or around November 2019, and the Company is involved in a number of lawsuits filed
by various lenders. See further discussions in Note 16.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-c0_cont_21"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 16, 2022, the People&#8217;s Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of
bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, the short-term
bank loans borrowed by Tiandihui are now under bankruptcy proceedings, and have been reclassified and included in &#8220;liabilities held
for sales&#8221; as reflected in the consolidated balance sheets.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 116; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:LoansNotesTradeAndOtherReceivablesDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 5 &#8211; ACCOUNTS RECEIVABLE, NET AND
ACCOUNTS RECEIVABLE-RELATED PARTIES, NET</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_2" id="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable, net consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_3" id="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31, <br/> 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31, <br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Accounts receivable</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGrossCurrent" scale="0" unitRef="usd">58,739</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableGrossCurrent" scale="0" unitRef="usd">56,056</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Allowance for credit losses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables" scale="0" unitRef="usd">29,421</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables" scale="0" unitRef="usd">19,221</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Accounts receivable, net</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">29,318</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">36,835</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_4" id="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The changes in allowance for credit losses consisted
of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock-c0_cont_4"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:AccountsReceivableAllowanceForCreditLossTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Balance, beginning of the year</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivable" scale="0" unitRef="usd">19,221</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivable" scale="0" unitRef="usd">16,656</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivable" scale="0" unitRef="usd">612,249</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Provision for credit losses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForOtherCreditLosses" scale="0" unitRef="usd">11,642</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForOtherCreditLosses" scale="0" unitRef="usd">2,168</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForOtherCreditLosses" scale="0" unitRef="usd">15,757</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Write-off uncollectable accounts receivable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-98">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-99">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivableWriteOffs" scale="0" unitRef="usd">612,249</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Translation adjustment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestructuringReserveTranslationAndOtherAdjustment" scale="0" sign="-" unitRef="usd">1,442</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestructuringReserveTranslationAndOtherAdjustment" scale="0" unitRef="usd">397</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestructuringReserveTranslationAndOtherAdjustment" scale="0" unitRef="usd">899</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Balance, end of the year</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivable" scale="0" unitRef="usd">29,421</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivable" scale="0" unitRef="usd">19,221</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllowanceForDoubtfulAccountsReceivable" scale="0" unitRef="usd">16,656</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_InventoryDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:InventoryDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 6 &#8211; INVENTORIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_InventoryDisclosureTextBlock-c0_cont_2" id="_InventoryDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, inventories
consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_InventoryDisclosureTextBlock-c0_cont_3" id="_InventoryDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfInventoryCurrentTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="white-space: nowrap; text-align: center">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31, <br/> 2022</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31, <br/> 2021</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Raw materials</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryRawMaterials" scale="0" unitRef="usd">27,069</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryRawMaterials" scale="0" unitRef="usd">39,884</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Work in process</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryWorkInProcessNetOfReserves" scale="0" unitRef="usd">8,665</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryFinishedGoods" scale="0" unitRef="usd">43,707</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryFinishedGoods" scale="0" unitRef="usd">83,173</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Total</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryGross" scale="0" unitRef="usd">70,776</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryGross" scale="0" unitRef="usd">131,722</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; text-align: left">Inventory write-down</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryAdjustments" scale="0" sign="-" unitRef="usd">69,789</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryAdjustments" scale="0" sign="-" unitRef="usd">80,299</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Translation adjustments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Inventories, net</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">987</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">51,423</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation id="_InventoryDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recorded write-down of potentially
obsolete or slow-moving inventories of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:WritedownOfPotentiallyObsoleteOrSlowmovingInventories" scale="0" unitRef="usd">226</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:WritedownOfPotentiallyObsoleteOrSlowmovingInventories" scale="0" unitRef="usd">216,325</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:WritedownOfPotentiallyObsoleteOrSlowmovingInventories" scale="0" unitRef="usd">42,241</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 117; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 7 &#8211; PROPERTY, PLANT AND EQUIPMENT,
NET</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_2" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, property, plant
and equipment consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_3" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:PropertyPlantAndEquipmentTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-left: 0in">Machinery equipment</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c116" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">7,524</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c117" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">57,094</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0in">Electronic equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c118" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">17,784</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c119" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">19,724</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0in">Office equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">6,088</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c121" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">151</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0in">Buildings</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">735,795</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c123" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">735,795</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total property, plant and equipment</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c124" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">767,190</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c125" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">812,765</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-left: 0in">Less: accumulated depreciation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c126" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">62,547</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c127" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">31,095</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-left: 0in">Less: impairment loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c128" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillImpairedAccumulatedImpairmentLoss" scale="0" unitRef="usd">6,599</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Translation adjustments</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-100">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-101">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Property, plant and equipment, net</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">698,044</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">781,670</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_4" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation expense for the years ended December
31, 2022, 2021 and 2020 was $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">62,547</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">31,095</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">363,098</ix:nonFraction>, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_5" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021 and 2020, certain property,
plant and equipment with net book value of $<ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentCollateralAmount" scale="0" unitRef="usd">55.25</ix:nonFraction> and $<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentCollateralAmount" scale="0" unitRef="usd">6,174,867</ix:nonFraction> were pledged as collateral under certain loan arrangements, respectively
(also see Note 4). In connection with the discontinued operations of Tiandihui (see Note 4), such pledged assets were reclassified and
included in the &#8220;non-current assets held for sales&#8221; as reflected in the consolidated balance sheets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021 and 2020, certain buildings
with net book value of $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:BuildingsNetBookValue" scale="0" unitRef="usd">552,529</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:BuildingsNetBookValue" scale="0" unitRef="usd">5,890,975</ix:nonFraction> were judicially seized by the court. In connection with the discontinued operations of
Tiandihui (see Note 4), such pledged assets were reclassified and included in the &#8220;non-current assets held for sales&#8221; as
reflected in the consolidated balance sheets.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 8 &#8211; INTANGIBLE ASSETS </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_2" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&#160;31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Intangible assets- brand name</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIntangibleAssetsNet" scale="0" unitRef="usd">535,815</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherIntangibleAssetsNet" scale="0" unitRef="usd">536,065</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Accumulated amortization</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedAmortizationOfOtherDeferredCosts" scale="0" unitRef="usd">53,975</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedAmortizationOfOtherDeferredCosts" scale="0" unitRef="usd">433</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Intangible assets, net</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationIntangibleAssetsCurrent" scale="0" unitRef="usd">481,840</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationIntangibleAssetsCurrent" scale="0" unitRef="usd">535,632</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_3" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The intangible assets mainly include Bo Ling&#8217;s
Chinese Restaurant, Inc.&#8217;s brand name to attract customers and bring in increased revenue to benefit the Company.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_4" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the years ended December 31, 2022, 2021
and 2020, amortization expense amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebtExcludingAmortization" scale="0" unitRef="usd">34,507</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebtExcludingAmortization" scale="0" unitRef="usd">28,253</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseDebtExcludingAmortization" scale="0" unitRef="usd">28,217</ix:nonFraction>, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_5" id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Estimated future amortization expense for land
use rights is as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_GoodwillAndIntangibleAssetsDisclosureTextBlock-c0_cont_5"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; padding-bottom: 1.5pt; text-align: left; font-weight: bold">Years ended December 31,</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amortization<br/>
    expense</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">2023</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths" scale="0" unitRef="usd">53,561</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo" scale="0" unitRef="usd">53,561</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2025</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree" scale="0" unitRef="usd">53,561</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2026</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearFour" scale="0" unitRef="usd">53,561</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2027</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearFive" scale="0" unitRef="usd">53,561</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationExpenseRollingAfterYearFive" scale="0" unitRef="usd">214,035</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsNet" scale="0" unitRef="usd">481,840</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OtherLiabilitiesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:OtherLiabilitiesDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 9 &#8211; OTHER CURRENT LIABILITIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_OtherLiabilitiesDisclosureTextBlock-c0_cont_2" id="_OtherLiabilitiesDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other current liabilities mainly consist of accrued
liabilities, interest payable owed to third party and related party creditors, Wages payable and other payables. Accrued liabilities
mainly include accrued employee welfares and benefits and rent expenses. Other payables primarily represent accrued fee of Borrowing
from individuals and transportation costs as of December 31, 2022 and primarily represented accrued management fee paid to an asset management
company in connection with the management of the Company&#8217;s short-term investments in marketable securities as of December 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_OtherLiabilitiesDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:OtherCurrentLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Other Payables</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableOtherCurrent" scale="0" unitRef="usd">1,212,420</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableOtherCurrent" scale="0" unitRef="usd">533,668</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLiabilitiesCurrent" scale="0" unitRef="usd">1,212,420</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherLiabilitiesCurrent" scale="0" unitRef="usd">533,668</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 118; Options: NewSection; Value: 23 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 10 &#8211; RELATED PARTY TRANSACTIONS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_2" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The related parties had transactions for the
years ended December 31, 2022, 2021 and 2020 consist of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_3" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom; width: 51%; text-align: justify"><span style="font-size: 10pt"><b>Name
    of Related Party</b></span></td>
    <td style="vertical-align: bottom; width: 1%; text-align: justify">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: top; width: 48%; text-align: justify"><span style="font-size: 10pt"><b>Nature
    of Relationship at December 31, 2022</b></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Dandan Liu</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c149" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Chairman of the Board, Shareholder, Chief Executive Officer (&#8220;CEO&#8221;)</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Rongfeng Cui</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c105" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Former Chairman of the Board and Former CEO. Rongfeng Cui ceased to be the CEO of the Company effective August 2, 2019.</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Rongbing Cui</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c150" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Former Chief Financial Officer (&#8220;CFO&#8221;), Rongfeng Cui&#8217;s brother</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Feng Zhang</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c151" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Chief Financial Officer (&#8220;CFO&#8221;)</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Yanjuan Wang</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c106" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Rongfeng Cui&#8217;s wife</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Yan Fu</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c152" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Former Sales Vice President</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Yuxiang Qi</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c153" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Dandan Liu&#8217;s mother</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Tide (Shanghai) Industrial Co. Ltd. (&#8220;Tide&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c154" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Owned by Rongfeng Cui and Yanjuan Wang</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Qingdao Like Pet Supplies Co., Ltd. (&#8220;Like&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c155" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Rongfeng Cui served as CEO, and Shuhua Cui, sister of Rongfeng Cui, served as the legal person. On May 26, 2016, both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like.</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Qingdao Saike Environmental Technology Co.,
    Ltd. (&#8220;Saike&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c156" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Owned by Rongfeng Cui and Yanjuan Wang</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Huangdao Ding Ge Zhuang Kangkang Family Farm
    (&#8220;Kangkang Family Farm&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c157" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Controlled by Rongfeng Cui&#8217;s father</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">TDH Group BVBA</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c158" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">A Belgium company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">TDH JAPAN</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c159" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">A Japanese company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018. Dissolved in February 2021.</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Qingdao Yinhe Jiutian Information Technology
    Co., Ltd. (&#8220;Yinhe Jiutian&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c160" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Solely owned by Rongbing Cui</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Huangdao Hanyinhe Software Development Center
    Co., Ltd. (&#8220;Hanyinhe&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c161" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Solely owned by Xiaomei Wang</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Zhenyu Trading (Qingdao) Co., Ltd. (&#8220;Zhenyu&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c162" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Noncontrolling shareholder of Yichong prior to September 27, 2019; Sole shareholder of Yichong after September 27, 2019</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Beijing Quanmin Chongai Information Technology
    Co., Ltd. (&#8220;Quanmin Chongai&#8221;)</span></td>
    <td>&#160;</td>
    <td><ix:nonNumeric contextRef="c163" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Rongbing Cui serves as supervisor of Quanmin Chongai</span></ix:nonNumeric></td></tr>
  <tr style="vertical-align: top; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">LAI LINGS LENEXA </span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><ix:nonNumeric contextRef="c164" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Raymond Ng is the son of Richard Ng</span></ix:nonNumeric></td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Products Inc.</span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><ix:nonNumeric contextRef="c165" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Owned by Richard Ng</span></ix:nonNumeric></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Bo Lings at Zona Rosa
    in the Northland </span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><ix:nonNumeric contextRef="c166" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Owned by Richard Ng</span></ix:nonNumeric></td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Richard Ng</span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><ix:nonNumeric contextRef="c167" name="us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement"><span style="font-size: 10pt">Richard owns 49% control of Far Ling&#8217;s Inc.</span></ix:nonNumeric></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 119; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_4" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Due to related parties from continuing operations</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_5" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to related parties consisted of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_6" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_5"><ix:nonNumeric contextRef="c0" escape="true" name="petz:ScheduleOfDueToRelatedPartiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Rongfeng Cui</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c107" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">33,624</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c168" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">32,401</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Feng Zhang</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c169" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">22,123</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c170" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">1,568</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Products Inc.</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-102">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c172" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">2,441</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">55,747</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" scale="0" unitRef="usd">36,410</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_7" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The balance of due to related parties represents
expenses paid by related parties on behalf of the Company as well as advances the Company obtained from related parties for working capital
purposes. The amounts owed to the related parties are unsecured, non-interest bearing and payable on demand.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_8" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Short-term loans from related parties</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_9" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_8"><ix:nonNumeric contextRef="c0" escape="true" name="petz:ScheduleOfShortTermLoansFromRelatedParties"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; width: 76%; text-align: left">Rongfeng Cui</td><td style="padding-bottom: 1.5pt; width: 1%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><ix:nonFraction contextRef="c107" decimals="0" format="ixt:num-dot-decimal" name="petz:ShortTermLoanRelatedParties" scale="0" unitRef="usd">266,451</ix:nonFraction></td><td style="padding-bottom: 1.5pt; width: 1%; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; width: 1%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right"><ix:nonFraction contextRef="c168" decimals="0" format="ixt:num-dot-decimal" name="petz:ShortTermLoanRelatedParties" scale="0" unitRef="usd">285,878</ix:nonFraction></td><td style="padding-bottom: 1.5pt; width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:ShortTermLoanRelatedParties" scale="0" unitRef="usd">266,451</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:ShortTermLoanRelatedParties" scale="0" unitRef="usd">285,878</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_10" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2018, TDH Group BVBA borrowed non-interest
bearing, unsecured long-term loans from Rongfeng Cui in the aggregate amount of &#8364;<ix:nonFraction contextRef="c131" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="eur">250,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c131" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="usd">288,000</ix:nonFraction>), of which &#8364;<ix:nonFraction contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="eur">60,000</ix:nonFraction>
(approximately $<ix:nonFraction contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="usd">69,000</ix:nonFraction>), &#8364;<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="eur">60,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="usd">69,000</ix:nonFraction>), &#8364;<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="eur">60,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="usd">69,000</ix:nonFraction>), &#8364;<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="eur">60,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="usd">69,000</ix:nonFraction>),
&#8364;<ix:nonFraction contextRef="c132" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="eur">10,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c133" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="0" unitRef="usd">11,500</ix:nonFraction>) and $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DueFromAffiliateNoncurrent" scale="0" unitRef="usd">0</ix:nonFraction> is due in the years ended December 31, 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.
The Company did not make any repayment to Rongfeng Cui during the years ended December 31, 2022, 2021 and 2020, such default may lead
to callable of the loan at any time by Rongfeng Cui. As a result, the corresponding loan was classified as current liability and included
in short-term loans &#8211; related parties as of December 31, 2022 <span style="font-family: Times New Roman, Times, Serif">and</span>
2021. The Company is aware of the possible penalty and/or other consequence due to the default, however, no reasonable estimate can be
made at this time.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_11" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company borrowed unsecured short term loans
from related parties in the amount of $<ix:nonFraction contextRef="c134" decimals="0" format="ixt:num-dot-decimal" name="petz:UnsecuredShortTermLoansFromRelatedParty" scale="0" unitRef="usd">0</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:UnsecuredShortTermLoansFromRelatedParty" scale="0" unitRef="usd">0</ix:nonFraction> and $<ix:nonFraction contextRef="c135" decimals="0" format="ixt:num-dot-decimal" name="petz:UnsecuredShortTermLoansFromRelatedParty" scale="0" unitRef="usd">49,350</ix:nonFraction> during the years ended December 31, 2022, 2021 and 2020, respectively. Interest
rate for the loans outstanding during the year ended December 31, 2021 ranged from <ix:nonFraction contextRef="c136" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateStatedPercentage" scale="-2" unitRef="pure">0</ix:nonFraction>% to <ix:nonFraction contextRef="c137" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateStatedPercentage" scale="-2" unitRef="pure">25</ix:nonFraction>% per annum. The Company made repayment in
the amount of $<ix:nonFraction contextRef="c138" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfOtherShortTermDebt" scale="0" unitRef="usd">0</ix:nonFraction> and $<ix:nonFraction contextRef="c135" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RepaymentsOfOtherShortTermDebt" scale="0" unitRef="usd">0</ix:nonFraction> during the years ended December 31, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_12" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Modification of Loans from related party</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_13" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2018, the Company entered into a loan
agreement with Dandan Liu. In May 2018, the agreement was amended to, among others, reclassify unpaid interest payable to the principal
of the loan, resulting in an increase of principal from RMB<ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="cny">3,000,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="usd">466,000</ix:nonFraction>) to RMB<ix:nonFraction contextRef="c140" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="cny">3,030,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c140" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="usd">471,000</ix:nonFraction>)
and increase the interest rate from <ix:nonFraction contextRef="c139" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeFixedInterestRate" scale="-2" unitRef="pure">3</ix:nonFraction>% to <ix:nonFraction contextRef="c140" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeFixedInterestRate" scale="-2" unitRef="pure">15</ix:nonFraction>%. Interest rate will be <ix:nonFraction contextRef="c141" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeFloorInterestRate" scale="-2" unitRef="pure">24</ix:nonFraction>% for the period past due. In March 2019, the agreement was further
amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal to RMB<ix:nonFraction contextRef="c142" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="cny">3,484,500</ix:nonFraction>
(approximately $<ix:nonFraction contextRef="c142" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="usd">539,000</ix:nonFraction>) and extend the maturity date from <ix:nonNumeric contextRef="c143" name="petz:MaturityDate">January 2019</ix:nonNumeric> to <ix:nonNumeric contextRef="c144" name="petz:MaturityDate">May 2019</ix:nonNumeric>. As of Dec. 31, 2022, the loan had $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestEarningAssetsAverageAmountOutstanding" scale="0" unitRef="usd">69,566</ix:nonFraction> of interest
outstanding.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_14" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In June 2018, the Company entered into a loan
agreement with Yuxiang Qi. Interest rate was <ix:nonFraction contextRef="c145" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeFixedInterestRate" scale="-2" unitRef="pure">15</ix:nonFraction>% during the loan period and <ix:nonFraction contextRef="c145" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeFloorInterestRate" scale="-2" unitRef="pure">24</ix:nonFraction>% for the period past due. In March 2019, the agreement
was amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal
from RMB<ix:nonFraction contextRef="c146" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="cny">3,000,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c146" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="usd">462,000</ix:nonFraction>) to RMB<ix:nonFraction contextRef="c147" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="cny">3,405,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c147" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="usd">522,000</ix:nonFraction>) and extend the maturity date from <ix:nonNumeric contextRef="c146" name="petz:MaturityDate">December 2018</ix:nonNumeric> to
<ix:nonNumeric contextRef="c147" name="petz:MaturityDate">May 2019</ix:nonNumeric>. The Company has been in default of this loan and is subject to <ix:nonFraction contextRef="c148" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeVariableInterestRate" scale="-2" unitRef="pure">24</ix:nonFraction>% annual interest rate.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_15" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company analyzed the amendments under ASC
470-50 and concluded that these amendments did not qualify for debt modification.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_16" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The interest expenses for the loans from related
parties amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseRelatedParty" scale="0" unitRef="usd">0</ix:nonFraction>, $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseRelatedParty" scale="0" unitRef="usd">29,581</ix:nonFraction> and $<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseRelatedParty" scale="0" unitRef="usd">43,835</ix:nonFraction> for the years ended December 31, 2022, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 120; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_17" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Accounts payable to related parties</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_18" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_17"><ix:nonNumeric contextRef="c0" escape="true" name="petz:ScheduleOfAccountsPayableToRelatedPartiesTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">December&#160;31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Richard Ng</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c167" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromRelatedParties" scale="0" unitRef="usd">1,033</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-103">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromRelatedParties" scale="0" unitRef="usd">1,033</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-104">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_19" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Leases from related parties</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company entered into various operating lease
agreements for certain premises with its related parties during 2019 and 2020. The related party lease agreements were terminated in 2021.
See Note 15.</p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 11 &#8211; INCOME TAXES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_2" id="_IncomeTaxDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>British Virgin Islands (&#8220;BVI&#8221;)</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_3" id="_IncomeTaxDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the current laws of BVI, TDH Holdings is
not subject to tax on income or capital gain. In addition, payments of dividends by the Company to their shareholders are not subject
to withholding tax in the BVI.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_4" id="_IncomeTaxDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Hong Kong</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_5" id="_IncomeTaxDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s subsidiary, TDH HK and TDH
Foods were incorporated in Hong Kong and has no operating profit or tax liabilities during the period. TDH HK and TDH Foods were subject
to tax at <ix:nonFraction contextRef="c174" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsForeign" scale="-2" unitRef="pure">16.5</ix:nonFraction>% on the assessable profits arising in or derived from Hong Kong.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_6" id="_IncomeTaxDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>United State</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_7" id="_IncomeTaxDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s subsidiary, TDH Petfood LLC
was incorporated in Nevada as a limited liability company had no active business operations since its incorporation and it has been deregistered
and dissolved in 2021 (see Note 1). The Company&#8217;s subsidiary, TDH Income, is incorporated in the State of Nevada and is subject
to the United States Federal income tax at a statutory rate of <ix:nonFraction contextRef="c175" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">21</ix:nonFraction>%. On October 31, 2021, TDH Income acquired <ix:nonFraction contextRef="c176" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationEquityInEarningsLossesOfUnconsolidatedSubsidiary" scale="-2" unitRef="pure">51</ix:nonFraction>% equity interests of
Far Ling&#8217;s Inc. and <ix:nonFraction contextRef="c177" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationEquityInEarningsLossesOfUnconsolidatedSubsidiary" scale="-2" unitRef="pure">100</ix:nonFraction>% equity interests of Bo Ling&#8217;s Chinese Restaurant, Inc. The Company&#8217;s subsidiary, Ruby21Noland,
is incorporated in the State of Missouri. For the subsidiaries and entities incorporated in the United States listed above, they are
subject to the United States Federal income tax at a statutory rate of <ix:nonFraction contextRef="c178" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">21</ix:nonFraction>%. However, no provision for the U.S. Federal income tax has
been made as TDH Income Corporation,Ruby21Noland LLC, Far Ling&#8217;s Inc. and Bo Ling&#8217;s Chinese Restaurant, Inc. had no taxable
income in this jurisdiction for the reporting periods.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_8" id="_IncomeTaxDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Japan</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_9" id="_IncomeTaxDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s subsidiary, TDH JAPAN, is
incorporated in Japan and has no operating profit or tax liabilities during the reporting period. TDH JAPAN is subject to tax at <ix:nonFraction contextRef="c159" decimals="5" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsForeign" scale="-2" unitRef="pure">21.421</ix:nonFraction>%
on the assessable profits arising in or derived from Japan.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_10" id="_IncomeTaxDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Belgium</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_11" id="_IncomeTaxDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s subsidiary, TDH Group BVBA,
is incorporated in Belgium and has no operating profit or tax liabilities during the reporting period. TDH Group BVBA is subject to tax
at <ix:nonFraction contextRef="c158" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxCreditsForeign" scale="-2" unitRef="pure">29.58</ix:nonFraction>% on the assessable profits arising in or derived from Belgium.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 121; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_12" id="_IncomeTaxDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>PRC</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_13" id="_IncomeTaxDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s subsidiaries incorporated
in the PRC are subject to PRC Enterprise Income Tax (&#8220;EIT&#8221;) on the taxable income in accordance with the relevant PRC income
tax laws. On March 16, 2007, the National People&#8217;s Congress enacted a new enterprise income tax law, which took effect as of January
1, 2008. The law applies a uniform <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:EnterpriseIncomeTaxRatePercentage" scale="-2" unitRef="pure">25</ix:nonFraction>% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According
to the tax law, entities that qualify as high and new technology enterprises (&#8220;HNTE&#8221;) supported by the PRC government are
allowed a <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:PreferentialTaxRatePercentage" scale="-2" unitRef="pure">15</ix:nonFraction>% preferential tax rate instead of the uniform tax rate of <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:UniformTaxRatePercentage" scale="-2" unitRef="pure">25</ix:nonFraction>%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_14" id="_IncomeTaxDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 2, 2016, Tiandihui was granted the
HNTE designation jointly by Qingdao science and Technology Bureau, Qingdao Municipal Finance Bureau, Qingdao Municipal State Taxation
Bureau, Qingdao Local Taxation Bureau, and is qualified for a preferential tax rate of <ix:nonFraction contextRef="c109" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal" scale="-2" unitRef="pure">15</ix:nonFraction>% for the year ended December 31, 2018. Tiandihui
is subject to the <ix:nonFraction contextRef="c179" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxSettlementsStateAndLocal" scale="-2" unitRef="pure">25</ix:nonFraction></ix:nonFraction>% EIT rate for the years ended December 31, 2022 and 2021. On March 16, 2022, the People&#8217;s Court of Huangdao
District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy
liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_15" id="_IncomeTaxDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The reconciliations of the statutory income tax
rate and the Company&#8217;s effective income tax rate are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_16" id="_IncomeTaxDisclosureTextBlock-c0_cont_15"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">United states income tax rate</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" scale="-2" unitRef="pure">21.00</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" scale="-2" unitRef="pure">21.00</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-105">-</div></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">HK statutory income tax rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential" scale="-2" unitRef="pure">16.50</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential" scale="-2" unitRef="pure">16.50</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential" scale="-2" unitRef="pure">16.50</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">PRC statutory income tax rate difference</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">8.50</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">8.50</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">8.50</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Effect of additional deduction on R&amp;D expense and salary for disabled workers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="petz:EffectOfAdditionalDeductionOnRAndDExpenseAndSalaryForDisabledWorkers" scale="-2" unitRef="pure">0.00</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="petz:EffectOfAdditionalDeductionOnRAndDExpenseAndSalaryForDisabledWorkers" scale="-2" unitRef="pure">0.00</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="4" format="ixt:num-dot-decimal" name="petz:EffectOfAdditionalDeductionOnRAndDExpenseAndSalaryForDisabledWorkers" scale="-2" unitRef="pure">0.00</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Effect of expenses not deductible for tax purposes</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-<ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationNondeductibleExpense" scale="-2" sign="-" unitRef="pure">17.41</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-<ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationNondeductibleExpense" scale="-2" sign="-" unitRef="pure">17.38</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-<ix:nonFraction contextRef="c6" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationNondeductibleExpense" scale="-2" sign="-" unitRef="pure">2.43</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Valuation allowance recognized with respect to the loss in subsidiaries</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-<ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="-2" sign="-" unitRef="pure">28.59</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-<ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="-2" sign="-" unitRef="pure">28.52</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-<ix:nonFraction contextRef="c6" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="-2" sign="-" unitRef="pure">22.57</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-<ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationOtherAdjustments" scale="-2" unitRef="pure">0.00</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-<ix:nonFraction contextRef="c5" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationOtherAdjustments" scale="-2" sign="-" unitRef="pure">0.10</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c6" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationOtherAdjustments" scale="-2" unitRef="pure">0.00</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-106">-</div></td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-107">-</div></td><td style="padding-bottom: 4pt; text-align: left">%</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-108">-</div></td><td style="padding-bottom: 4pt; text-align: left">%</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_17" id="_IncomeTaxDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Accounting for Uncertainty in Income Taxes</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_18" id="_IncomeTaxDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The tax authority of the PRC Government conducts
periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax
filings. Therefore, the Company&#8217;s PRC entities&#8217; tax filings results are subject to change. It is therefore uncertain as to
whether the PRC tax authority may take different views about the Company&#8217;s PRC entities&#8217; tax filings, which may lead to additional
tax liabilities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_19" id="_IncomeTaxDisclosureTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC 740 requires recognition and measurement
of uncertain income tax positions using a &#8220;more-likely-than-not&#8221; approach. The management evaluated the Company&#8217;s tax
positions and concluded that no provision for uncertainty in income taxes was necessary as of December 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_20" id="_IncomeTaxDisclosureTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred tax assets and liabilities as of December
31, 2022 and 2021 are composed of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_21" id="_IncomeTaxDisclosureTextBlock-c0_cont_20"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Deferred tax assets, non-current</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Net operating loss carrying forward</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="0" unitRef="usd">6,356,742</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="0" unitRef="usd">6,557,667</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total deferred tax assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Valuation allowance</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">6,356,742</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">6,557,667</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Total deferred tax assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-109">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-110">-</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_22" id="_IncomeTaxDisclosureTextBlock-c0_cont_21"><ix:continuation id="_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>As of December&#160;31,</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2022</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2021</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Deferred tax liabilities, non-current</span></td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 76%; padding-bottom: 1.5pt; padding-left: 18pt"><span style="font-size: 10pt">Property, plant and equipment</span></td>
    <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; border-bottom: black 1.5pt solid; text-align: right">&#160;&#160;&#160;&#160;<span style="-sec-ix-hidden: hidden-fact-111; font-size: 10pt">-
    </span></td>
    <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; border-bottom: black 1.5pt solid"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-112; font-size: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</span></td>
    <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 4pt; padding-left: 9pt"><span style="font-size: 10pt">Total deferred tax liabilities</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-113; font-size: 10pt">- </span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-114; font-size: 10pt">-</span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation id="_IncomeTaxDisclosureTextBlock-c0_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In assessing the realizability of deferred tax
assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible or are utilized.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 122; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 12 &#8211; STOCKHOLDERS&#8217; EQUITY</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_2" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Common shares</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_3" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 2, 2020, the Company entered into
subscription agreements with four accredited investors for the sale of <ix:nonFraction contextRef="c180" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" scale="0" unitRef="shares">455,000</ix:nonFraction> of the Company&#8217;s common shares (as adjusted for the
Company&#8217;s June 14, 2022 1-for-20 reverse stock split) at the price $<ix:nonFraction contextRef="c181" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockPricePerShare" scale="0" unitRef="usdPershares">6.0</ix:nonFraction> per share (as adjusted for the Company&#8217;s June 14,
2022 1-for-20 reverse stock split) for the gross proceeds of approximately $<ix:nonFraction contextRef="c180" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="6" unitRef="usd">2.73</ix:nonFraction> million. In April 2021, a total of <ix:nonFraction contextRef="c182" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" scale="0" unitRef="shares">455,000</ix:nonFraction> common shares
(as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split) were issued to four investors with cash proceeds of $<ix:nonFraction contextRef="c182" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">2,730,000</ix:nonFraction>.
The shares were sold without registration under the Securities Act of 1933 in reliance on the exemptions provided by Section 4(a)(2) of
the Securities Act as transactions not involving a public offering and rules promulgated under the Securities Act as sales to accredited
investors. The Company&#8217;s intention was to use the proceeds of this offering for working capital and general working purposes. There
were no discounts or brokerage fees associated with this offering.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_4" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 30, 2021, the Company and certain
investors entered into a securities purchase agreement in connection with a registered direct offering, pursuant to which the Company
agreed to sell to the investors an aggregate of <ix:nonFraction contextRef="c183" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">500,000</ix:nonFraction> of its common shares (as adjusted for the Company&#8217;s June 14, 2022 1-for-20
reverse stock split) at purchase price of $<ix:nonFraction contextRef="c184" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">17.80</ix:nonFraction> per share (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split).
The registered direct Offering was closed on September 30, 2021 and the Company received approximately $<ix:nonFraction contextRef="c183" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueIssuedForServices" scale="6" unitRef="usd">8.2</ix:nonFraction> million net proceeds from
the issuance of <ix:nonFraction contextRef="c183" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesIssuedForServices" scale="0" unitRef="shares">500,000</ix:nonFraction>) common shares (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split) to investors,
after deducting placement agent fees and estimated offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_5" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 3, 2021, the Company and certain investors
entered into a securities purchase agreement in connection with a registered direct offering, pursuant to which the Company agreed to
sell to the investors an aggregate of <ix:nonFraction contextRef="c185" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">750,000</ix:nonFraction> its common shares (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock
split) at purchase price of $<ix:nonFraction contextRef="c186" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">12.80</ix:nonFraction> per share (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split). The registered
direct offering was closed on November 3, 2021 and the Company received approximately $<ix:nonFraction contextRef="c185" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueIssuedForServices" scale="6" unitRef="usd">8.9</ix:nonFraction> million net proceeds from the issuance of <ix:nonFraction contextRef="c185" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesIssuedForServices" scale="0" unitRef="shares">750,000</ix:nonFraction>
common shares (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split) to investors, after deducting placement
agent fees and estimated offering expenses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_6" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 14, 2022, our Board approved to effect
a&#160;reverse stock split of our common shares at the ratio of one-for-twenty with the market effective date of&#160;June 14, 2022.
The objective of the&#160;reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2)
and maintain its listing on Nasdaq. As a result of the&#160;reverse stock split, each twenty common shares outstanding automatically
combined and converted to one issued and outstanding common share without any action on the part of the shareholder. As a result of this
stock reverse split, all common stocks issued prior to June 14, 2022 has been retrospectively restated and reflected in the consolidated
financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_7" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 26, 2022, we completed a private placement
of securities, and entered into a securities purchase agreement with <ix:nonFraction contextRef="c187" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" scale="0" unitRef="shares">eight</ix:nonFraction> accredited investors pursuant to which we sold to the investors
an aggregate <ix:nonFraction contextRef="c187" decimals="0" format="ixt:num-dot-decimal" name="petz:AggregatePurchasePrice" scale="0" unitRef="shares">4,000,000</ix:nonFraction> of our common shares, at a price of $<ix:nonFraction contextRef="c188" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">1.50</ix:nonFraction> per share and warrants at a price of $<ix:nonFraction contextRef="c189" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.01</ix:nonFraction> per warrant&#160;to purchase
up to an aggregate <ix:nonFraction contextRef="c190" decimals="0" format="ixt:num-dot-decimal" name="petz:AggregateCommonShares" scale="0" unitRef="shares">4,000,000</ix:nonFraction> of our common shares, for gross proceeds of $<ix:nonFraction contextRef="c191" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">6 040 000</ix:nonFraction> and received net proceeds of $<ix:nonFraction contextRef="c191" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueIssuedForServices" scale="0" unitRef="usd">6,017,781</ix:nonFraction> after deducting
fees and expenses related to the transaction. The warrants have an exercise price of $<ix:nonFraction contextRef="c192" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">2.44</ix:nonFraction> per share, and a term of <ix:nonNumeric contextRef="c193" format="ixt-sec:durwordsen" name="petz:WarrantTerm">two years</ix:nonNumeric>.&#160; The
warrants are immediately exercisable upon issuance and have a cashless exercise feature.&#160;The securities were sold without registration
under the Securities Act of 1933 in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving
a public offering and rules promulgated under the Securities Act as sales to accredited investors. The Company&#8217;s intention was to
use the proceeds of this offering for working capital and general working purposes.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_8" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Investor warrants</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_9" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Company&#8217;s registered
direct offering as consummated on September 30, 2021, pursuant to the securities purchase agreement, the Company also agreed to sell to
the investors warrants exercisable for an aggregate of <ix:nonFraction contextRef="c194" decimals="0" format="ixt:num-dot-decimal" name="petz:AggregatePurchasePrice" scale="0" unitRef="shares">1,000,000</ix:nonFraction> of its common shares (as adjusted for the Company&#8217;s June 14, 2022
1-for-20 reverse stock split), with warrant purchase price of $<ix:nonFraction contextRef="c195" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.01</ix:nonFraction> per warrant. The warrants are exercisable immediately as of the date
of issuance at an exercise price of $<ix:nonFraction contextRef="c195" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">41.20</ix:nonFraction> per share (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split)
and expire twenty-four (24) months from the date of issuance. The warrants may also be exercised on a cashless basis.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_10" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, in connection with the Company&#8217;s
registered direct offering as consummated on November 3, 2021, pursuant to the securities purchase agreement, the Company also agreed
to sell to the investors warrants exercisable for an aggregate of <ix:nonFraction contextRef="c196" decimals="0" format="ixt:num-dot-decimal" name="petz:AggregateCommonShares" scale="0" unitRef="shares">1,500,000</ix:nonFraction> of its common shares (as adjusted for the Company&#8217;s
June 14, 2022 1-for-20 reverse stock split), with warrant purchase price of $<ix:nonFraction contextRef="c197" decimals="2" format="ixt:num-dot-decimal" name="petz:WarrantPricePerShare" scale="0" unitRef="usdPershares">0.01</ix:nonFraction> per warrant. The warrants are exercisable immediately
as of the date of issuance at an exercise price of $<ix:nonFraction contextRef="c196" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">29.40</ix:nonFraction> per share (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse
stock split) and expire twenty-four (24) months from the date of issuance. The warrants may also be exercised on a cashless basis.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_11" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, <ix:nonFraction contextRef="c198" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">2,500,000</ix:nonFraction> warrants (as
adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split) were issued and outstanding and <ix:nonFraction contextRef="c199" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">1,528,000</ix:nonFraction> warrants (as adjusted
for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split) have been exercised on the cashless basis in exchange for <ix:nonFraction contextRef="c200" decimals="2" format="ixt:num-dot-decimal" name="petz:EquityMethodInvestmentsOwnershipPercentage" scale="-2" unitRef="pure">1,221,181</ix:nonFraction>
of the Company&#8217;s common shares (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split) and the Company
did not receive any proceeds from the exercise of these warrants. Additional <span style="-sec-ix-hidden: hidden-fact-118">972,00</span> warrants (as adjusted for the Company&#8217;s June
14, 2022 1-for-20 reverse stock split) were exercised at cashless basis in January 2022 in exchange for <ix:nonFraction contextRef="c202" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockCapitalSharesReservedForFutureIssuance" scale="0" unitRef="shares">1,104,587</ix:nonFraction> of the Company&#8217;s
common shares (as adjusted for the Company&#8217;s June 14, 2022 1-for-20 reverse stock split).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><!-- Field: Page; Sequence: 123; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_12" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 26, 2022, in connection with our private
placement of securities as mentioned above, we sold to the investors an aggregate <ix:nonFraction contextRef="c203" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">4,000,000</ix:nonFraction> of our common shares, at a price of $1.50
per share and warrants at a price of $<ix:nonFraction contextRef="c204" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">0.01</ix:nonFraction> per warrant&#160;to purchase up to an aggregate <ix:nonFraction contextRef="c205" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">4,000,000</ix:nonFraction> of our common shares, for gross proceeds
of $<ix:nonFraction contextRef="c205" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">6,040,000</ix:nonFraction>. The warrants have an exercise price of $<ix:nonFraction contextRef="c190" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">2.44</ix:nonFraction> per share, and a term of two years.&#160; The warrants are immediately exercisable
upon issuance and have a cashless exercise feature.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>



</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_13" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The following
table summarizes the investor warrants activities for the years ended December 31, 2022, 2021 and 2020 was as follows:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>&#160;&#160;</span></p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_14" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_13"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfShareBasedCompensationActivityTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: center"><b>&#160;</b></td><td style="padding-bottom: 1.5pt"><b>&#160;</b></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>Number of<br/> warrants</b></td><td style="padding-bottom: 1.5pt"><b>&#160;</b></td><td style="padding-bottom: 1.5pt"><b>&#160;</b></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>Weighted<br/> Average<br/> Exercise Price</b></td><td style="padding-bottom: 1.5pt"><b>&#160;</b></td><td style="padding-bottom: 1.5pt"><b>&#160;</b></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>Weighted<br/> Average<br/> Remaining<br/> Contractual<br/>
    Term (years)</b></td><td style="padding-bottom: 1.5pt"><b>&#160;</b></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Outstanding, December 31, 2020</td><td>&#160;</td>
    <td colspan="2" style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-115">-</div></td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-116">-</div></td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-117">-</div></td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="width: 64%">Granted</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" scale="0" unitRef="shares">50,000,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">34.20</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonNumeric contextRef="c5" format="ixt-sec:duryear" name="petz:WeightedAverageRemainingContractualTermyearsGranted">2.00</ix:nonNumeric></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Exercised</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c5" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" scale="0" unitRef="shares">30,560,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">34.20</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonNumeric contextRef="c5" format="ixt-sec:duryear" name="petz:WeightedAverageRemainingContractualTermyearsExercised">1.87</ix:nonNumeric></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Exercisable, December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" scale="0" unitRef="shares">19,440,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">32.60</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c5" format="ixt-sec:duryear" name="petz:ShareBasedCompensationArrangementsByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerm">1.75</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Granted</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" scale="0" unitRef="shares">4,000,000</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">2.44</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="petz:WeightedAverageRemainingContractualTermyearsGranted">2.00</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">Exercised</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" scale="0" unitRef="shares">19,440,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">32.60</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="petz:WeightedAverageRemainingContractualTermyearsExercised">0.75</ix:nonNumeric></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">Outstanding, December 31, 2022</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" scale="0" unitRef="shares">4,000,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">2.44</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="petz:ShareBasedCompensationArrangementsByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerm">1.68</ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Exercisable, December 31, 2022</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">4,000,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" scale="0" unitRef="usdPershares">2.44</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="petz:WeightedAverageRemainingContractualTermyearsExercisableEndingBalance">1.68</ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_15" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the above mentioned investor warrants, the
Company may compel the exercise of the warrants if the closing price of the Company&#8217;s common shares exceeds $<ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesSubscriptions" scale="0" unitRef="usd">6.00</ix:nonFraction> for ten (10)
consecutive trading days commencing six (6) months after issuance. The exercisability of the warrants may be limited if, upon exercise,
the holder or any of its affiliates would beneficially own more than <ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="petz:CommonSharesExercisability" scale="-2" unitRef="pure">9.99</ix:nonFraction>% of the Company&#8217;s common shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_16" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management determined that these warrants meet
the requirements for equity classification under ASC 815-40 because they are indexed to its own stock.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_17" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Statutory reserve</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_18" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, the Company
had statutory reserve in the amount of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:StatutoryReserveAmount" scale="0" unitRef="usd"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:StatutoryReserveAmount" scale="0" unitRef="usd">160,014</ix:nonFraction></ix:nonFraction>. In accordance with the relevant laws and regulations of the PRC, the Company&#8217;s
PRC subsidiaries are required to set aside at least <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:InterestAccrualRateAssociatedWithAmortizationMethodOfPresentValueOfFutureInsuranceProfits" scale="-2" unitRef="pure">10</ix:nonFraction>% of their respective after-tax net profits each year determined in accordance
with PRC GAAP and if any, to fund the statutory reserve until the balance of the reserve reaches <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:CapitalPercentage" scale="-2" unitRef="pure">50</ix:nonFraction>% of their respective registered capital.
The statutory reserve is not distributable in the form of cash dividends and can be used to make up cumulative prior year losses.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_19" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Restricted net assets</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_20" id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_19"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the PRC laws and regulations,
the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted included additional
paid-in capital and statutory reserves of the Company&#8217;s PRC subsidiaries.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_StockholdersEquityNoteDisclosureTextBlock-c0_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, total restricted
net assets were $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherRestrictedAssets" scale="0" unitRef="usd">14,666,369</ix:nonFraction> and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherRestrictedAssets" scale="0" unitRef="usd">12,666,369</ix:nonFraction>, respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:ConcentrationRiskDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 13 &#8211; CONCENTRATIONS OF CREDIT RISK
AND MAJOR CUSTOMERS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_2" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Customers</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_3" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended December 31, 2022, 2021 and
2020, customers accounting for <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:CustomersAccountingPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="petz:CustomersAccountingPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c6" decimals="2" format="ixt:num-dot-decimal" name="petz:CustomersAccountingPercentage" scale="-2" unitRef="pure">10</ix:nonFraction></ix:nonFraction></ix:nonFraction>% or more of the Company&#8217;s net revenue were as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_4" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" continuedAt="_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock-c0_cont_1" escape="true" name="us-gaap:SchedulesOfConcentrationOfRiskByRiskFactorTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Customer</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Customer A</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-119">*</div></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-120">*</div></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-121">*</div></td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Customer G</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-122">*</div></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-123">*</div></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-124">*</div></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Customer P</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-125">*</div></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-126">*</div></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c220" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">17.33</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_5" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_4"><ix:continuation id="_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt"><b>*</b></span></td><td style="text-align: justify"><ix:footnote id="ix_3_footnote" xml:lang="en-US"><span style="font-size: 10pt">Less than <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:CustomerLessThanPercentage" scale="-2" unitRef="pure">10</ix:nonFraction>%</span></ix:footnote></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_6" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, no single customer accounted
for more than <ix:nonFraction contextRef="c206" decimals="2" format="ixt:num-dot-decimal" name="petz:ConcentrationsRiskPercentage" scale="-2" unitRef="pure">10</ix:nonFraction>% of the Company&#8217;s outstanding accounts receivable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_7" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, Customer Q, Customer
R and Customer S accounted for <ix:nonFraction contextRef="c207" decimals="2" format="ixt:num-dot-decimal" name="petz:ConcentrationsRiskPercentage" scale="-2" unitRef="pure">28</ix:nonFraction>%, <ix:nonFraction contextRef="c208" decimals="2" format="ixt:num-dot-decimal" name="petz:ConcentrationsRiskPercentage" scale="-2" unitRef="pure">35</ix:nonFraction>% and <ix:nonFraction contextRef="c209" decimals="2" format="ixt:num-dot-decimal" name="petz:ConcentrationsRiskPercentage" scale="-2" unitRef="pure">36</ix:nonFraction>% of the Company&#8217;s total current outstanding accounts receivable, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 124; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_8" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Suppliers</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_9" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended December 31, 2022, 2021 and
2020, suppliers accounting for <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:SuppliersAccountingPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="petz:SuppliersAccountingPercentage" scale="-2" unitRef="pure"><ix:nonFraction contextRef="c6" decimals="2" format="ixt:num-dot-decimal" name="petz:SuppliersAccountingPercentage" scale="-2" unitRef="pure">10</ix:nonFraction></ix:nonFraction></ix:nonFraction>% or more of the Company&#8217;s purchase were as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_10" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_9"><ix:nonNumeric contextRef="c221" continuedAt="_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock-c221_cont_1" escape="true" name="us-gaap:SchedulesOfConcentrationOfRiskByRiskFactorTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Supplier</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Supplier D</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-127; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-128; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c224" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">16.45</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Supplier E</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-129; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-130; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c227" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">10.16</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Supplier F</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-131; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-132; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c230" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">17.62</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Supplier G</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-133; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c232" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">35.57</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-134; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Supplier H</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c234" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">28.29</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-135; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-136; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Supplier I</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c237" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">20.37</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-137; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-138; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Supplier J</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c240" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">18.61</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-139; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-140; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Supplier K</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c243" decimals="4" format="ixt:num-dot-decimal" name="petz:ConcentrationRisksPercentage" scale="-2" unitRef="pure">15.69</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-141; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-142; font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="text-align: left">%</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_11" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_10"><ix:continuation id="_SchedulesOfConcentrationOfRiskByRiskFactorTextBlock-c221_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt"><b>*</b></span></td><td style="text-align: justify"><ix:footnote id="ix_4_footnote" xml:lang="en-US"><span style="font-size: 10pt">Less than <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:SupplierLessThanPercentage" scale="-2" unitRef="pure">10</ix:nonFraction>%</span></ix:footnote></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_12" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, Supplier G&#8217;s balance
accounted for <ix:nonFraction contextRef="c210" decimals="4" format="ixt:num-dot-decimal" name="petz:PercentageOfTotalAccountsPayable" scale="-2" unitRef="pure">39.87</ix:nonFraction>% of the Company&#8217;s total accounts payable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_ConcentrationRiskDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, Supplier G&#8217;s balance
accounted for <ix:nonFraction contextRef="c211" decimals="4" format="ixt:num-dot-decimal" name="petz:PercentageOfTotalAccountsPayable" scale="-2" unitRef="pure">35.57</ix:nonFraction>% of the Company&#8217;s total accounts payable.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:SegmentReportingDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 14 &#8211; SEGMENT AND REVENUE ANALYSIS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_2" id="_SegmentReportingDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is engaged in the business of manufacturing
and selling of petfood and restaurant operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_3" id="_SegmentReportingDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An operating segment is a component of the Company
that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal
financial reports that are provided to and regularly reviewed by the Company&#8217;s chief operating decision maker in order to allocate
resources and assess performance of the segment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_4" id="_SegmentReportingDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with ASC 280, Segment Reporting,
operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated
regularly by the chief operating decision maker (&#8220;CODM&#8221;), or decision making group, in deciding how to allocate resources
and in assessing performance. The Company uses the &#8220;management approach&#8221; in determining reportable operating segments. The
management approach considers the internal organization and reporting used by the Company&#8217;s chief operating decision maker for
making operating decisions and assessing performance as the source for determining the Company&#8217;s reportable segments. Management,
including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management&#8217;s
assessment, the Company has determined that it has <ix:nonFraction contextRef="c0" decimals="0" format="ixt-sec:numwordsen" name="us-gaap:NumberOfOperatingSegments" scale="0" unitRef="pure">two</ix:nonFraction> operating segments as defined by ASC 280, including petfood sales and restaurant
business operations.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_5" id="_SegmentReportingDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain entity-wide disclosures relating to revenues
for the years ended December 31, 2022, 2021 and 2020 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_6" id="_SegmentReportingDisclosureTextBlock-c0_cont_5"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Petfood<br/> sales</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Restaurant<br/> business</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Revenue from continuing operations</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">24,726</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c247" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,074,007</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,098,733</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net (loss) income from continuing operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" unitRef="usd">1,089,347</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c247" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" unitRef="usd">104,720</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" unitRef="usd">1,194,067</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss from discontinued operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLossFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">339,054</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-143">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLossFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">339,054</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total Net income</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" unitRef="usd">750,293</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c247" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" unitRef="usd">104,720</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" unitRef="usd">855,013</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c246" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">62,164</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c247" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">54,358</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">116,522</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total assets</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c248" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">34,480,238</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c249" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">1,502,768</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">36,513,397</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_7" id="_SegmentReportingDisclosureTextBlock-c0_cont_6"><ix:continuation continuedAt="_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock-c0_cont_2" id="_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Petfood<br/> sales</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Restaurant<br/> business</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Revenue from continuing operations</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">474,632</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">606,463</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,081,095</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss from continuing operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" sign="-" unitRef="usd">2,854,514</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" sign="-" unitRef="usd">1,215,613</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" sign="-" unitRef="usd">4,070,127</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss from discontinued operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLossFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">2,645,831</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-144">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLossFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">2,645,831</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total Net loss</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">5,500,345</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">1,215,613</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">6,715,958</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c250" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">395,094</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">13,646</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">408,740</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total assets</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c252" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">26,969,867</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">5,078,090</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">32,047,957</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>


</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 125; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_8" id="_SegmentReportingDisclosureTextBlock-c0_cont_7"><ix:continuation id="_ScheduleOfEntityWideInformationRevenueFromExternalCustomersByProductsAndServicesTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the year ended December 31,
    2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Petfood<br/>
 sales</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Restaurant<br/> business</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Revenue from continuing operations</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-145">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net income (loss) from continuing operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" unitRef="usd">1,690,529</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:NetIncomelossFromContinuingOperations" scale="0" unitRef="usd">1,690,529</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss from discontinued operations</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLossFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">2,565,197</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="petz:NetLossFromDiscontinuedOperations" scale="0" sign="-" unitRef="usd">2,565,197</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Net loss</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-146">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">(<ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">874,668</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Depreciation and amortization</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">391,351</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-147">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DepreciationAndAmortization" scale="0" unitRef="usd">391,351</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Capital expenditure</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c254" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireProductiveAssets" scale="0" unitRef="usd">47,086</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-148">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireProductiveAssets" scale="0" unitRef="usd">47,086</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Total assets</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c256" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">18,452,910</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-149">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssets" scale="0" unitRef="usd">18,452,910</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_9" id="_SegmentReportingDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net revenue generated from different marketing
channels consists of the following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_10" id="_SegmentReportingDisclosureTextBlock-c0_cont_9"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Overseas sales</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-150">-</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c259" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">134,896</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c260" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">226,385</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Domestic sales</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c261" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">25,849</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c262" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">308,267</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c263" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">382,497</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Electronic commerce</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-151">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c265" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">34,590</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c266" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">16,708</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Restaurant revenue</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c267" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,074,007</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c268" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">606,463</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-152">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Sale tax and addition</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c270" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">1,123</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c271" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">3,121</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c272" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">2,789</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Total net revenue from continuing operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c270" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,098,733</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c271" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,081,095</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c272" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_11" id="_SegmentReportingDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net revenue generated from different product
lines and services is set forth as following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_12" id="_SegmentReportingDisclosureTextBlock-c0_cont_11"><ix:continuation continuedAt="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_2" id="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Pet chews</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c273" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">8,367</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c274" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">46,112</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c275" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">59,096</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Dried pet snacks</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c276" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">8,005</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c277" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">293,325</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c278" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">317,392</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Wet canned petfood</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c279" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,290</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c280" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">10,760</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c281" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">84,117</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Dental health snacks</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c282" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">550</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c283" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">6,127</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c284" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">19,915</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Baked pet biscuits</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-153">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-154">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c287" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,132</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Restaurant revenue</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c288" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,074,007</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c289" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">606,463</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-155">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c291" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">7,637</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c292" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">121,429</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c293" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">141,938</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Sales tax and addition</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c294" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">1,123</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c295" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">3,121</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c296" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">2,789</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Total net revenue from continuing operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c294" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,098,733</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c295" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,081,095</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c296" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_13" id="_SegmentReportingDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net revenue generated from different countries
is set forth as following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_14" id="_SegmentReportingDisclosureTextBlock-c0_cont_13"><ix:continuation id="_ScheduleOfSegmentReportingInformationBySegmentTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">South Korea</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c297" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">37,320</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c298" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">34,378</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>China</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c299" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">25,849</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c300" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">342,857</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c301" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">382,497</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">United Kingdom</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-156">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-157">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-158">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Germany</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-159">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-160">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-161">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>U.S.</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c308" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,074,007</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c309" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">606,463</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-162">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Other countries</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-163">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c312" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">97,576</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c313" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">208,715</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: Sales tax and addition</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c314" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">1,123</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c315" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">3,121</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c316" decimals="0" format="ixt:num-dot-decimal" name="petz:SalesTaxAndAdditions" scale="0" sign="-" unitRef="usd">2,789</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Total net revenue from continuing operations</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c314" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,098,733</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c315" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">1,081,095</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c316" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">622,801</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_SegmentReportingDisclosureTextBlock-c0_cont_15" id="_SegmentReportingDisclosureTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#8220;Other countries&#8221; are comprised of
all countries whose revenue, individually, was less than <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="petz:PercentageOfTotalRevenue" scale="-2" unitRef="pure">10</ix:nonFraction>% of the Company&#8217;s total revenue.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SegmentReportingDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&#8217;s long-lived assets associated
with petfood business are substantially located in the PRC. The Company&#8217;s long-lived assets associated with restaurant business
operations are located in the United States.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 126; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_1" escape="true" name="us-gaap:LesseeOperatingLeasesTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 15 &#8211; OPERATING LEASES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_2" id="_LesseeOperatingLeasesTextBlock-c0_cont_1"><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The company has signed two lease agreements for office premises and
restaurant premises. On October 6, 2010, Far Ling Restaurant entered into a lease agreement with the landlord to lease the space for
the restaurant for 15 years and six months, which can be renewed for <ix:nonNumeric contextRef="c317" format="ixt-sec:duryear" name="us-gaap:LesseeOperatingLeaseRenewalTerm">10</ix:nonNumeric> years.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_3" id="_LesseeOperatingLeasesTextBlock-c0_cont_2"><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 4, 2022, Far Ling signed supplemental lease agreement with
the landlord to modify the lease agreement, with new lease terms expired by December 31, 2026, and monthly lease payment of $<ix:nonFraction contextRef="c318" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseExpense" scale="0" unitRef="usd">20,000</ix:nonFraction> starting
from Jan 2022.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_4" id="_LesseeOperatingLeasesTextBlock-c0_cont_3"><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a result of this change, the lease agreement has been modified,
which may have significant impact on the reported ROU assets and corresponding lease liability.</p><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_5" id="_LesseeOperatingLeasesTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A lease modification is a change to the terms
and conditions of a contract resulting in a change to either the scope or consideration for a lease. This could be a change that either
adds or terminates the right to use a portion or all of the underlying asset(s) or changes the lease term. If the lease modification
only partially reduces the lessee&#8217;s rights to the underlying asset(s), this is accounted for as a partial termination. In this
scenario, the lease liability is remeasured based on the new payment terms, and the ROU asset is reduced based on either the proportionate
change in the lease liability or the proportionate change in the asset.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_6" id="_LesseeOperatingLeasesTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the above mentioned lease modification,
the remaining lease term of the Company&#8217;s leases ranges from approximately <ix:nonNumeric contextRef="c68" format="ixt-sec:duryear" name="us-gaap:LesseeOperatingLeaseRemainingLeaseTerm">1</ix:nonNumeric> to <ix:nonNumeric contextRef="c69" format="ixt-sec:duryear" name="us-gaap:LesseeOperatingLeaseRemainingLeaseTerm">4</ix:nonNumeric> years. The estimated effect of lease renewal
and termination options, as applicable, was included in the consolidated financial statements in current period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_7" id="_LesseeOperatingLeasesTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other lease related expenses amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProvisionForLoanLeaseAndOtherLosses" scale="0" unitRef="usd">54,145</ix:nonFraction>
for repair and maintenance, $<ix:nonFraction contextRef="c319" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostMaintenance" scale="0" unitRef="usd">4,680</ix:nonFraction> for parking, and $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostMaintenance" scale="0" unitRef="usd">21,713</ix:nonFraction> for water utility for the year ended December 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_8" id="_LesseeOperatingLeasesTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The components of lease expense were as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_9" id="_LesseeOperatingLeasesTextBlock-c0_cont_8"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:LeaseCostTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Operating lease cost</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseCost" scale="0" unitRef="usd">214,959</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseCost" scale="0" unitRef="usd">85,481</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseCost" scale="0" unitRef="usd">50,244</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Short-term lease costs</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-164">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-165">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Total lease cost</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseCost" scale="0" unitRef="usd">214,959</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseCost" scale="0" unitRef="usd">85,481</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LeaseCost" scale="0" unitRef="usd">50,244</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_10" id="_LesseeOperatingLeasesTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Supplemental cash flow information related to
leases was as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_11" id="_LesseeOperatingLeasesTextBlock-c0_cont_10"><ix:nonNumeric contextRef="c0" escape="true" name="petz:ScheduleOfSupplementalCashFlowInformationRelatedToLeasesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Years Ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cash paid for amounts included in the measurement of lease liabilities:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Operating cash flow from operating leases</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasePayments" scale="0" unitRef="usd">42,484</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasePayments" scale="0" unitRef="usd">10,075</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeasePayments" scale="0" unitRef="usd">9,420</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Weighted-average remaining lease term</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c3" format="ixt-sec:duryear" name="us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1">4.0</ix:nonNumeric> years</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c4" format="ixt-sec:duryear" name="us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1">14.2</ix:nonNumeric> years</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt"><ix:nonNumeric contextRef="c28" format="ixt-sec:duryear" name="us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1">5.97</ix:nonNumeric> years</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Weighted-average discount rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent" scale="-2" unitRef="pure">3.50</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent" scale="-2" unitRef="pure">3.75</ix:nonFraction></td><td style="text-align: left">%</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent" scale="-2" unitRef="pure">5.39</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_12" id="_LesseeOperatingLeasesTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Supplemental balance sheet information related
to leases was as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_13" id="_LesseeOperatingLeasesTextBlock-c0_cont_12"><ix:nonNumeric contextRef="c0" escape="true" name="petz:ScheduleOfSupplementalBalanceSheetInformationRelatedToLeasesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Operating lease right-of-use assets</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseRightofuseAssets" scale="0" unitRef="usd">783,658</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseRightofuseAssets" scale="0" unitRef="usd">4,604,365</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Operating lease right-of-use assets, related parties</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-166">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-167">-</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Total lease right-of-use assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:TotalLeaseRightofuseAssets" scale="0" unitRef="usd">783,658</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:TotalLeaseRightofuseAssets" scale="0" unitRef="usd">4,604,365</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating lease liabilities, current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseLiabilitiesCurrent" scale="0" unitRef="usd">212,814</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseLiabilitiesCurrent" scale="0" unitRef="usd">268,403</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Operating lease liabilities-related parties, current</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-168">-</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-169">-</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Operating lease liabilities-related party, non-current</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseLiabilitiesrelatedPartyNoncurrent" scale="0" unitRef="usd">683,113</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:OperatingLeaseLiabilitiesrelatedPartyNoncurrent" scale="0" unitRef="usd">4,846,760</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:TotalOperatingLeaseLiabilities" scale="0" unitRef="usd">895,927</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="petz:TotalOperatingLeaseLiabilities" scale="0" unitRef="usd">5,115,163</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_LesseeOperatingLeasesTextBlock-c0_cont_14" id="_LesseeOperatingLeasesTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes the maturity of
our operating lease liabilities as of December 31, 2022:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_LesseeOperatingLeasesTextBlock-c0_cont_14"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">2023</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinanceLeaseLiabilityPaymentsDueYearTwo" scale="0" unitRef="usd">240,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinanceLeaseLiabilityPaymentsDueYearThree" scale="0" unitRef="usd">240,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2025</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinanceLeaseLiabilityPaymentsDueYearFour" scale="0" unitRef="usd">240,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">2026</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinanceLeaseLiabilityPaymentsDueYearFive" scale="0" unitRef="usd">240,000</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Total</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinanceLeaseLiabilityPaymentsDue" scale="0" unitRef="usd">960,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Less imputed interest</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="petz:LessImputedInterest" scale="0" unitRef="usd">64,073</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="petz:TotalOperatingLeaseLiabilities" scale="0" unitRef="usd">895,927</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 127; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTE 16 &#8211; COMMITMENTS AND CONTINGENCIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">COMMITMENTS</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company provides counter guarantee to Gaochuang
including a cash deposit of RMB<ix:nonFraction contextRef="c320" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashReserveDepositRequiredAndMade" scale="0" unitRef="cny">300,000</ix:nonFraction> (approximately $<ix:nonFraction contextRef="c321" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashReserveDepositRequiredAndMade" scale="0" unitRef="usd">43,075</ix:nonFraction>) and asset pledge of four invention patents and certain property, plant
and equipment with net book value of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentOtherNet" scale="0" unitRef="usd">219,404</ix:nonFraction> and $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentOtherNet" scale="0" unitRef="usd">239,670</ix:nonFraction> as of December 31, 2022 and 2021, respectively, in consideration of the guarantees
provided by Gaochuang for certain notes payables financed by the Company during the years ended December 31, 2019 and 2018 (the &#8220;Counter
Guarantee&#8221;). The Counter Guarantee arrangement further includes an unlimited joint liability guarantee provided by Rongfeng Cui
and Yanjuan Wang, and a third party guarantee provided by Saike.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year ended December 31, 2019, the
Company did not make repayment on certain notes payables as scheduled, and Gaochuang, as one of the guarantors, paid on behalf of the
Company to the holders of such notes payables. As a result, the unpaid notes payables were reclassified to loan payable to Gaochuang
and the amount was included in &#8220;current liabilities held for sale associated with discontinued operation of Tiandihui<span style="font-family: Times New Roman, Times, Serif">&#8221;
</span>on the consolidated balance sheets as of December 31, 2022 and 2021. The loan payable to Gaochuang was pledged and guaranteed
by the aforementioned assets and guarantors, respectively, under the counter guarantee.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Future minimum lease payments for operating lease
commitments as of December 31, 2022 are disclosed in Note 15.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">CONTINGENCIES</span></i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_7" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is involved in a number of claims
pending in various courts, in arbitration, or otherwise unresolved as of December 31, 2022. These claims are substantially related to
non-payment of wage payables, non-payment of vendor payables and non-payment of loans and notes payables. Adverse results in these claims
may include awards of damages and may also result in, or even compel, a change in the Company&#8217;s business practices, which could
impact the Company&#8217;s future financial results. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City,
Shandong Province made a civil ruling and announced the acceptance of creditors&#8217; application of bankruptcy liquidation of Qingdao
Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy
proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected
to be completed by the end of 2023.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_8" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt"><i>I)</i></span></td><td style="text-align: justify"><span style="font-size: 10pt"><i><span style="text-decoration:underline">Labor
                                            arbitration claims by former employees</span></i></span></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_9" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since November 2019, certain former employees
of the Company commenced arbitration proceedings against the Company under applicable labor rules and standards, claiming, among others,
lost wages and/or severance payments. The Company accrued approximately $<ix:nonFraction contextRef="c14" decimals="-5" format="ixt:num-dot-decimal" name="petz:ContingentLiabilities" scale="6" unitRef="usd">0.4</ix:nonFraction> million contingent liabilities in other current liabilities
on the consolidated balance sheet as of December 31, 2019 and recognized contingent losses of approximately $<ix:nonFraction contextRef="c100" decimals="-5" format="ixt:num-dot-decimal" name="petz:RecognizedContingentLosses" scale="6" unitRef="usd">0.4</ix:nonFraction> million for the year
ended December 31, 2019 upon the estimate of the management of the Company together with the trail counsel of these cases. Upon ruling
of these cases, the Company further accrued approximately $<ix:nonFraction contextRef="c6" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToEmployees" scale="6" unitRef="usd">0.1</ix:nonFraction> million wage and/or severance payables in other current liabilities on
the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $<ix:nonFraction contextRef="c6" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:GainsLossesOnRestructuringOfDebt" scale="6" unitRef="usd">0.1</ix:nonFraction> million for the year ended December
31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were actioned
by the court for $<ix:nonFraction contextRef="c322" decimals="0" format="ixt:num-dot-decimal" name="petz:LandAndFactoryBuildings" scale="0" unitRef="usd">5,098,461</ix:nonFraction> (RMB <ix:nonFraction contextRef="c322" decimals="-4" format="ixt:num-dot-decimal" name="petz:LandAndFactoryBuildings" scale="6" unitRef="cny">33.14</ix:nonFraction> million). In 2021, we have paid RMB<ix:nonFraction contextRef="c5" decimals="-4" format="ixt:num-dot-decimal" name="petz:SubstantiallySettleTheLaborArbitrationCases" scale="6" unitRef="cny">3.73</ix:nonFraction> million to substantially settle the labor arbitration
cases with our former employees. We only have RMB<ix:nonFraction contextRef="c5" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:SeveranceCosts1" scale="6" unitRef="cny">0.5</ix:nonFraction> million ($<ix:nonFraction contextRef="c5" decimals="-4" format="ixt:num-dot-decimal" name="us-gaap:SeveranceCosts1" scale="6" unitRef="usd">0.08</ix:nonFraction> million) remaining severance payables to them as of December 31,
2021. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced
the acceptance of creditors&#8217; application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_10" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_9"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt"><i>II)</i></span></td><td style="text-align: justify"><span style="font-size: 10pt"><i><span style="text-decoration:underline">Legal
                                            claims by vendors</span></i></span></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_11" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since November 2019, the Company has been the
subject of multiple lawsuits by its raw material suppliers, printing and packaging suppliers, transportation companies and other vendors
due to its non-payment of various invoices for vendor services rendered. As of the date of this report, substantially all cases have
been concluded. The mediation and judgement involved with claims of liabilities arose before December 31, 2019 and the Company has included
substantially all such claims in Current Liabilities held for sale associated with discontinued operation of Tiandihui on the consolidated
balance sheets as of December 31, 2022 and 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 128; Value: 1 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt 0 0pt 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_12" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt"><i>III)</i></span></td><td style="text-align: justify"><span style="font-size: 10pt"><i><span style="text-decoration:underline">Legal
                                            claims by lenders</span></i></span></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_13" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since November 2019, the Company has defaulted
on multiple loans and notes payable from various lenders. As a consequence, the Company has been subjected to multiple lawsuits by various
Chinese banks and other lenders. The claims raised in these lawsuits pertain to the Company&#8217;s non-payment of principals and interests
as scheduled in the loan agreements and note payable agreements. The claims pertained to liabilities arose before December 31, 2019,
and the Company has included substantially all such claims in Current Liabilities held for sale associated with discontinued operation
of Tiandihui on the consolidated balance sheets as of December 31, 2022 and 2021. The court has ruled on the litigations and among others,
request the Company to pay for litigation related fees; repay the outstanding loans and interests to the lenders within a short period,
normally 10 days, from the date of the rulings and grant the lenders with priority right of the repayment from the auction proceeds of
the pledged real estate in case of non-performance by the Company. As of December 31, 2021, the Company has not fulfilled the court order.
On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the
acceptance of creditors&#8217; application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy
proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date
of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The above legal proceedings led to, among others,
the Company&#8217;s certain bank accounts and property, plant and equipment judicially frozen by the court as of December 31, 2022 and
2021. On March 16, 2022, the People&#8217;s Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced
the acceptance of creditors&#8217; application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023. See
recent development of legal proceedings at Note 19.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="petz_LongtermInvestmentsTextBlock-c0_cont_1" escape="true" name="petz:LongtermInvestmentsTextBlock"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><b>Note 17 &#8211; LONG-TERM INVESTMENTS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="petz_LongtermInvestmentsTextBlock-c0_cont_2" id="petz_LongtermInvestmentsTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2018, the Company acquired <ix:nonFraction contextRef="c323" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">5</ix:nonFraction>% equity
interests in Liujiayi Pet Technology (Beijing) Co., Ltd. (&#8220;Liujiayi&#8221;) for a cash consideration of RMB<ix:nonFraction contextRef="c324" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAcquiredFromAcquisition" scale="0" unitRef="cny">500,000</ix:nonFraction> (approximately
$<ix:nonFraction contextRef="c324" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAcquiredFromAcquisition" scale="0" unitRef="usd">79,400</ix:nonFraction>). The investment was accounted for at cost, less impairment, plus or minus changes resulting from observable price changes in
orderly transaction for identical or similar investments of the same issuer, if any, using the measurement alternative due to lack of
readily determinable fair values, pursuant to ASC 321. In June 2020, the Company transferred its equity interests in Liujiayi to a creditor
as partial repayment of short-term loan owed to the creditor. As a result, the Company is no longer a shareholder of Liujiayi.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="petz_LongtermInvestmentsTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2018, the Company invested RMB<ix:nonFraction contextRef="c325" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermInvestments" scale="0" unitRef="cny">1,000,000</ix:nonFraction>
(approximately $<ix:nonFraction contextRef="c325" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LongTermInvestments" scale="0" unitRef="usd">156,200</ix:nonFraction>) in Shandong Tide Food Co., Ltd. (&#8220;Shandong Tide&#8221;), a petfood production company that was newly
established in 2018, representing <ix:nonFraction contextRef="c326" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">37</ix:nonFraction>% equity interests in Shandong Tide. The investment was accounted for as equity method in accordance
with ASC 323. The Company recognized its proportionate share of Shandong Tide&#8217;s net loss in the amount of $<ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossFromContinuingOperationsAvailableToCommonShareholdersBasic" scale="0" unitRef="usd">0</ix:nonFraction> and $<ix:nonFraction contextRef="c328" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossFromContinuingOperationsAvailableToCommonShareholdersBasic" scale="0" unitRef="usd">4,903</ix:nonFraction>, respectively,
into the consolidation statements of operations and comprehensive loss for the years ended December 31, 2020 and 2019, respectively.
In June 2020, the Company transferred its equity interests of Shandong Tide to a supplier as partial repayment of outstanding account
payable owed to the supplier. As a result, the Company was no longer a shareholder of Shandong Tide.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_MinorityInterestDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:MinorityInterestDisclosureTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 18 &#8211; DISPOSAL OF SUBSIDIARIES</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_MinorityInterestDisclosureTextBlock-c0_cont_2" id="_MinorityInterestDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">TDH Petfood LLC had no active business operations
since its incorporation, and it has been deregistered and dissolved in 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_MinorityInterestDisclosureTextBlock-c0_cont_3" id="_MinorityInterestDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">TDH Japan has been deregistered and dissolved
in February 2021.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_MinorityInterestDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The disposals mentioned above did not constitute
a strategic shift that would have a major effect on the Company&#8217;s operations or financial results and as such, the disposals were
not classified as discontinued operations in the accompanying consolidated financial statements.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SubsequentEventsTextBlock-c0_cont_1" escape="true" name="us-gaap:SubsequentEventsTextBlock"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Note 19 &#8211; SUBSEQUENT EVENTS</b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation id="_SubsequentEventsTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 27, 2023, Qingdao Chihong Information
Consulting Co., Ltd. (&#8220;Qingdao Chihong&#8221;) was incorporated in Qingdao City, PRC.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 129; Options: Last --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>


</div><div style="display: none"><ix:header>
<ix:hidden>
<ix:nonNumeric contextRef="c0" id="hidden-fact-0" name="dei:EntityAddressPostalZipCode">000000</ix:nonNumeric>
<ix:nonNumeric contextRef="c1" id="hidden-fact-1" name="dei:EntityAddressPostalZipCode">000000</ix:nonNumeric>
<ix:nonNumeric contextRef="c1" id="hidden-fact-2" name="dei:CityAreaCode">86-532</ix:nonNumeric>
<ix:nonNumeric contextRef="c1" id="hidden-fact-3" name="dei:LocalPhoneNumber">8615-7918</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" id="hidden-fact-4" name="dei:DocumentAccountingStandard">U.S. GAAP</ix:nonNumeric>
<ix:nonFraction contextRef="c0" id="hidden-fact-5" name="us-gaap:OtherAssetImpairmentCharges" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-6" name="us-gaap:OtherAssetImpairmentCharges" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-7" name="petz:GovernmentSubsidie" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-8" name="petz:GovernmentSubsidie" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-9" name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-10" name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-11" name="us-gaap:ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c9" id="hidden-fact-12" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c15" id="hidden-fact-13" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-14" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c17" id="hidden-fact-15" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c19" id="hidden-fact-16" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c15" id="hidden-fact-17" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-18" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c17" id="hidden-fact-19" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c18" id="hidden-fact-20" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c20" id="hidden-fact-21" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c16" id="hidden-fact-22" name="petz:PurchaseOfNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c17" id="hidden-fact-23" name="petz:PurchaseOfNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c18" id="hidden-fact-24" name="petz:PurchaseOfNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c19" id="hidden-fact-25" name="petz:PurchaseOfNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-26" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c27" id="hidden-fact-27" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c40" id="hidden-fact-28" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c41" id="hidden-fact-29" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c42" id="hidden-fact-30" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c44" id="hidden-fact-31" name="us-gaap:ProfitLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c41" id="hidden-fact-32" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c42" id="hidden-fact-33" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c43" id="hidden-fact-34" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c45" id="hidden-fact-35" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c40" id="hidden-fact-36" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c41" id="hidden-fact-37" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c42" id="hidden-fact-38" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c43" id="hidden-fact-39" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c45" id="hidden-fact-40" name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-41" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-42" name="us-gaap:OtherAssetImpairmentCharges" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-43" name="us-gaap:OtherAssetImpairmentCharges" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-44" name="petz:ImpairmentOfLonglivedAssetsOtherThanGoodwill" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-45" name="us-gaap:DeferredIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-46" name="us-gaap:DeferredIncomeTaxExpenseBenefit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-47" name="us-gaap:GainsLossesOnExtinguishmentOfDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-48" name="us-gaap:IncreaseDecreaseInOtherOperatingAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-49" name="petz:OperatingLeaseLiabilitiesRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-50" name="petz:IncreaseDecreaseInAccountsPayablesRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-51" name="petz:IncreaseDecreaseInNotesPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-52" name="petz:IncreaseDecreaseInNotesPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-53" name="us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-54" name="petz:IncreaseDecreaseInAdvancesFromCustomers" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-55" name="petz:IncreaseDecreaseInAdvancesFromCustomers" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-56" name="petz:IncreaseDecreaseInCustomerAdvancesRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-57" name="petz:DeferredIncomeTaxLiabilityCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-58" name="petz:DeferredIncomeTaxLiabilityCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-59" name="petz:PaymentsToAcquireLandUseRights" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-60" name="petz:PaymentsToAcquireLandUseRights" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-61" name="us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-62" name="us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-63" name="us-gaap:PaymentsToAcquireInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-64" name="us-gaap:PaymentsToAcquireInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-65" name="us-gaap:CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-66" name="us-gaap:CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-67" name="us-gaap:ProceedsFromIssuanceOfCommonStock" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-68" name="us-gaap:ProceedsFromIssuanceOfCommonStock" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-69" name="us-gaap:PaymentsToMinorityShareholders" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-70" name="us-gaap:ProceedsFromStockPlans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-71" name="us-gaap:ProceedsFromStockPlans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-72" name="us-gaap:ProceedsFromShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-73" name="us-gaap:ProceedsFromShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-74" name="us-gaap:RepaymentsOfShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-75" name="petz:ProceedsFromShortTermLoansRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-76" name="petz:ProceedsFromShortTermLoansRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-77" name="petz:RepaymentsOfShortTermLoansRelatedParty" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-78" name="petz:IncreaseDecreaseInOperatingAsset" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-79" name="us-gaap:CashProvidedByUsedInFinancingActivitiesDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-80" name="us-gaap:InterestPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-81" name="us-gaap:InterestPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-82" name="us-gaap:IncomeTaxesPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-83" name="us-gaap:IncomeTaxesPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-84" name="us-gaap:IncomeTaxesPaidNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-85" name="petz:LiabilitiesAssumedInConnectionWithPurchaseOfPropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-86" name="petz:LiabilitiesAssumedInConnectionWithPurchaseOfPropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-87" name="petz:ReceivablesFromCommonStockSubscriptionSettledWithLoanPayablesToRelatedParty" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-88" name="petz:ReceivablesFromCommonStockSubscriptionSettledWithLoanPayablesToRelatedParty" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-89" name="us-gaap:StockIssued1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-90" name="us-gaap:ProceedsFromWarrantExercises" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-91" name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c88" id="hidden-fact-92" name="us-gaap:ShortTermInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c89" id="hidden-fact-93" name="us-gaap:ShortTermInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c91" id="hidden-fact-94" name="us-gaap:ShortTermInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c92" id="hidden-fact-95" name="us-gaap:ShortTermInvestments" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" decimals="0" id="hidden-fact-96" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss" sign="-" unitRef="usd">33102</ix:nonFraction>
<ix:nonFraction contextRef="c4" decimals="0" id="hidden-fact-97" name="us-gaap:DisposalGroupIncludingDiscontinuedOperationCashAndCashEquivalents" unitRef="usd">1485009</ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-98" name="us-gaap:AllowanceForDoubtfulAccountsReceivableWriteOffs" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-99" name="us-gaap:AllowanceForDoubtfulAccountsReceivableWriteOffs" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c129" id="hidden-fact-100" name="us-gaap:PublicUtilitiesPropertyPlantAndEquipmentAmountOfAcquisitionAdjustments1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c130" id="hidden-fact-101" name="us-gaap:PublicUtilitiesPropertyPlantAndEquipmentAmountOfAcquisitionAdjustments1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c171" id="hidden-fact-102" name="us-gaap:DueToOtherRelatedPartiesNoncurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c173" id="hidden-fact-103" name="us-gaap:RevenueFromRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-104" name="us-gaap:RevenueFromRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-105" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-106" name="us-gaap:EffectiveIncomeTaxRateContinuingOperations" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-107" name="us-gaap:EffectiveIncomeTaxRateContinuingOperations" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c6" id="hidden-fact-108" name="us-gaap:EffectiveIncomeTaxRateContinuingOperations" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-109" name="us-gaap:DeferredTaxAssetsNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-110" name="us-gaap:DeferredTaxAssetsNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-111" name="us-gaap:DeferredTaxLiabilitiesPropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-112" name="us-gaap:DeferredTaxLiabilitiesPropertyPlantAndEquipment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-113" name="us-gaap:DeferredTaxLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-114" name="us-gaap:DeferredTaxLiabilities" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-115" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c28" id="hidden-fact-116" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c5" id="hidden-fact-117" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c201" decimals="0" id="hidden-fact-118" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized" unitRef="shares">97200</ix:nonFraction>
<ix:nonFraction contextRef="c212" id="hidden-fact-119" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c213" id="hidden-fact-120" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c214" id="hidden-fact-121" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c215" id="hidden-fact-122" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c216" id="hidden-fact-123" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c217" id="hidden-fact-124" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c218" id="hidden-fact-125" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c219" id="hidden-fact-126" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c222" id="hidden-fact-127" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c223" id="hidden-fact-128" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c225" id="hidden-fact-129" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c226" id="hidden-fact-130" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c228" id="hidden-fact-131" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c229" id="hidden-fact-132" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c231" id="hidden-fact-133" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c233" id="hidden-fact-134" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c235" id="hidden-fact-135" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c236" id="hidden-fact-136" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c238" id="hidden-fact-137" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c239" id="hidden-fact-138" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c241" id="hidden-fact-139" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c242" id="hidden-fact-140" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c244" id="hidden-fact-141" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c245" id="hidden-fact-142" name="petz:ConcentrationRisksPercentage" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c247" id="hidden-fact-143" name="petz:NetLossFromDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c251" id="hidden-fact-144" name="petz:NetLossFromDiscontinuedOperations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c255" id="hidden-fact-145" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c255" id="hidden-fact-146" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c255" id="hidden-fact-147" name="us-gaap:DepreciationAndAmortization" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c255" id="hidden-fact-148" name="us-gaap:PaymentsToAcquireProductiveAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c257" id="hidden-fact-149" name="us-gaap:OtherAssets" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c258" id="hidden-fact-150" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c264" id="hidden-fact-151" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c269" id="hidden-fact-152" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c285" id="hidden-fact-153" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c286" id="hidden-fact-154" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c290" id="hidden-fact-155" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c302" id="hidden-fact-156" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c303" id="hidden-fact-157" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c304" id="hidden-fact-158" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c305" id="hidden-fact-159" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c306" id="hidden-fact-160" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c307" id="hidden-fact-161" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c310" id="hidden-fact-162" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c311" id="hidden-fact-163" name="us-gaap:Revenues" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-164" name="us-gaap:ShortTermLeaseCost" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-165" name="us-gaap:ShortTermLeaseCost" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-166" name="petz:OperatingLeaseRightofuseAssetsRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-167" name="petz:OperatingLeaseRightofuseAssetsRelatedParties" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-168" name="petz:OperatingLeaseLiabilitiesrelatedPartiesCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-169" name="petz:OperatingLeaseLiabilitiesrelatedPartiesCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c0" name="dei:AmendmentFlag">false</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:DocumentFiscalPeriodFocus">FY</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:EntityCentralIndexKey">0001684425</ix:nonNumeric>
</ix:hidden>
<ix:references><link:schemaRef xlink:href="petz-20221231.xsd" xlink:type="simple"></link:schemaRef></ix:references>
<ix:resources><ix:relationship fromRefs="ix_0_fact ix_1_fact ix_2_fact ix_3_fact ix_4_fact ix_5_fact ix_6_fact ix_7_fact ix_8_fact ix_9_fact" toRefs="ix_0_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_10_fact ix_11_fact ix_12_fact ix_13_fact ix_14_fact ix_15_fact" toRefs="ix_1_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_16_fact ix_17_fact ix_18_fact ix_19_fact ix_20_fact ix_21_fact ix_22_fact ix_23_fact" toRefs="ix_2_footnote"></ix:relationship>
<ix:relationship fromRefs="hidden-fact-119 hidden-fact-120 hidden-fact-121 hidden-fact-122 hidden-fact-123 hidden-fact-124 hidden-fact-125 hidden-fact-126" toRefs="ix_3_footnote"></ix:relationship>
<ix:relationship fromRefs="hidden-fact-127 hidden-fact-128 hidden-fact-129 hidden-fact-130 hidden-fact-131 hidden-fact-132 hidden-fact-133 hidden-fact-134 hidden-fact-135 hidden-fact-136 hidden-fact-137 hidden-fact-138 hidden-fact-139 hidden-fact-140 hidden-fact-141 hidden-fact-142" toRefs="ix_4_footnote"></ix:relationship>
<xbrli:context id="c0">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c1">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:EntityAddressesAddressTypeAxis">dei:BusinessContactMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c2">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2023-03-15</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c3">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c4">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c5">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c6">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c7">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c8">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c9">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StockSubscriptionReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c10">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c11">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c12">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c13">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c14">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c15">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c16">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StockSubscriptionReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c17">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c18">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c19">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c20">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c21">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c22">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c23">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StockSubscriptionReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c24">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c25">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c26">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c27">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c28">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c29">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c30">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c31">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c32">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c33">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c34">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c35">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c36">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c37">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c38">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c39">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c40">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c41">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StockSubscriptionReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c42">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c43">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c44">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c45">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c46">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c47">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c48">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c49">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StockSubscriptionReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c50">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">petz:StatutoryReservesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c51">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c52">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c53">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:NoncontrollingInterestMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c54">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2016-09-09</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c55">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhPetfoodLlcMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c56">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhPetfoodLlcMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c57">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhHkLimitedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2016-02-21</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c58">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TiandihuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2016-07-19</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c59">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TiandihuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2016-07-01</xbrli:startDate>
    <xbrli:endDate>2016-07-19</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c60">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TDHFoodsLimitedMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-08-24</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c61">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-06-04</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c62">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhHoldingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c63">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:FarLingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c64">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:BoLingsChineseRestaurantIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c65">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">petz:BusinessCombinationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c66">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">petz:BoLingsChineseRestaurantIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c67">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:OwnershipAxis">petz:FarLingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c68">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c69">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c70">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="petz:ForeignCurrencyTranslationAxis">petz:RMBIntoUSDollarsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c71">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="petz:ForeignCurrencyTranslationAxis">petz:RMBIntoUSDollarsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c72">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="petz:ForeignCurrencyTranslationAxis">petz:EuroIntoUSDollarsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c73">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="petz:ForeignCurrencyTranslationAxis">petz:EuroIntoUSDollarsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c74">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="petz:ForeignCurrencyTranslationAxis">petz:YenIntoUSDollarsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c75">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c76">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c77">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:SoftwareDevelopmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c78">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c79">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c80">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c81">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c82">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:VehiclesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c83">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:VehiclesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c84">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c85">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:BuildingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c86">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:BuildingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c87">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c88">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel2Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c89">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c90">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c91">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel2Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c92">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c93">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:BoLingsChineseRestaurantsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c94">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">petz:FarLingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c95">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:FarLingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c96">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">petz:BoLingsChineseRestaurantsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c97">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:BoLingsChineseRestaurantsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c98">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-11-01</xbrli:startDate>
    <xbrli:endDate>2021-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c99">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c100">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c101">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c102">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c103">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:GaochuangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c104">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:GaochuangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c105">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RongfengCuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c106">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:YanjuanWangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c107">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RongfengCuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c108">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-12-20</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c109">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-01-01</xbrli:startDate>
    <xbrli:endDate>2018-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c110">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c111">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">petz:HuangdaoDistrictMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-12-20</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c112">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:QingdaoTiandihuiFoodstuffsCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-01-01</xbrli:startDate>
    <xbrli:endDate>2018-01-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c113">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:QingdaoTiandihuiFoodstuffsCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-01-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c114">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-01-01</xbrli:startDate>
    <xbrli:endDate>2018-01-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c115">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-01-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c116">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c117">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c118">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c119">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c120">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c121">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c122">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:BuildingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c123">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:BuildingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c124">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:PropertyPlantAndEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c125">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:PropertyPlantAndEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c126">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">petz:LessAccumulatedDepreciationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c127">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">petz:LessAccumulatedDepreciationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c128">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c129">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">petz:TranslationAdjustmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c130">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">petz:TranslationAdjustmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c131">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c132">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementScenarioAxis">srt:ScenarioForecastMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2023-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c133">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2023-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c134">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RelatedPartyTransactionMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c135">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RelatedPartyTransactionMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c136">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RelatedPartyTransactionMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c137">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RelatedPartyTransactionMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c138">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RelatedPartyTransactionMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c139">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-05-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c140">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-05-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c141">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-05-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c142">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c143">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c144">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c145">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c146">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:YuxiangQiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c147">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:YuxiangQiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c148">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:YuxiangQiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c149">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:DandanLiuMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c150">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RongbingCuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c151">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:FengZhangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c152">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:YanFuMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c153">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:YuxiangQiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c154">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TideShanghaiIndustrialCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c155">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:QingdaoLikePetSuppliesCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c156">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:QingdaoSaikeEnvironmentalTechnologyCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c157">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:KangkangFamilyFarmMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c158">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhGroupBvbaMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c159">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhJapanMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c160">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:QingdaoYinheJiutianInformationTechnologyCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c161">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:HuangdaoHanyinheSoftwareDevelopmentCenterCoMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c162">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:ZhenyuTradingQingdaoCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c163">
<!-- [WMV5][XcpuxYn59dz7vgYynUDuwG7r97K2jUTysl7vcz0lJt/tSeJz73kx1cLt0ZFF2SK/vxBCY0vdSrZmyHAeujLFSrsyOUWB5q7sP9hfG4NtdOFEUyn8CdkCsHALp8TF1PKe7I0Im1qeUii6ywPd6QOU+sgm9hDmURz2YLvDwD8JUENqx0bscpL4rtlJnMVaSFNX8ik1iYquu3M3pQR2ACJSuf+nJ+wzDxvR7Wu3QjkNUuoWWWnFDaj68b/MZIQKbLNWkbJ1nK5dFEakkGzOMY3vnQ==] CSR-->
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:BeijingQuanminChongaiInformationTechnologyCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c164">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:LAILINGSLENEXAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c165">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:ProductsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c166">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:BoLingsAtZonaRosaInTheNorthlandMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c167">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RichardNgMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c168">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RongfengCuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c169">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:FengZhangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c170">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:FengZhangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c171">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:ProductsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c172">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:ProductsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c173">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:RichardNgMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c174">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:HK</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c175">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">petz:TDHIncomeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c176">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:FarLingsIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c177">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:BoLingsChineseRestaurantIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-10-01</xbrli:startDate>
    <xbrli:endDate>2021-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c178">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c179">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TiandihuiMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c180">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-12-02</xbrli:startDate>
    <xbrli:endDate>2020-12-02</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c181">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c182">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-04-30</xbrli:startDate>
    <xbrli:endDate>2021-04-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c183">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-30</xbrli:startDate>
    <xbrli:endDate>2021-09-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c184">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-09-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c185">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-11-03</xbrli:startDate>
    <xbrli:endDate>2021-11-03</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c186">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-11-03</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c187">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:JishanSunZouVenturesLLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-07-21</xbrli:startDate>
    <xbrli:endDate>2022-07-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c188">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:JishanSunZouVenturesLLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c189">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c190">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c191">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-07-21</xbrli:startDate>
    <xbrli:endDate>2022-07-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c192">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c193">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-07-01</xbrli:startDate>
    <xbrli:endDate>2022-07-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c194">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">petz:InvestorWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-30</xbrli:startDate>
    <xbrli:endDate>2021-09-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c195">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">petz:InvestorWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-09-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c196">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">petz:InvestorWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-11-03</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c197">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">petz:InvestorWarrantsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-11-03</xbrli:startDate>
    <xbrli:endDate>2021-11-03</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c198">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhGroupBvbaMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-11-01</xbrli:startDate>
    <xbrli:endDate>2018-11-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c199">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhJapanMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-11-01</xbrli:startDate>
    <xbrli:endDate>2018-11-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c200">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TdhGroupBvbaMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-11-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c201">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-06-14</xbrli:startDate>
    <xbrli:endDate>2022-06-14</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c202">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-06-14</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c203">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:JishanSunZouVenturesLLCMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c204">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:ZhonghuaLiuMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-07-21</xbrli:startDate>
    <xbrli:endDate>2022-07-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c205">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:DandanLiuMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-07-21</xbrli:startDate>
    <xbrli:endDate>2022-07-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c206">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:MajorCustomersAxis">petz:CustomerLMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c207">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:MajorCustomersAxis">petz:CustomerQMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c208">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:MajorCustomersAxis">petz:CustomerRMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c209">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:MajorCustomersAxis">petz:CustomerSMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c210">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierBMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c211">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierBMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c212">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c213">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c214">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c215">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerGMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c216">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerGMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c217">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerGMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c218">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerPMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c219">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerPMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c220">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">petz:CustomerPMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c221">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">us-gaap:SupplierConcentrationRiskMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c222">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierDMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c223">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierDMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c224">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierDMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c225">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierEMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c226">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierEMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c227">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierEMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c228">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierFMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c229">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierFMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c230">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierFMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c231">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierGMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c232">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierGMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c233">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierGMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c234">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierHMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c235">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierHMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c236">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierHMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c237">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierIMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c238">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierIMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c239">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierIMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c240">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierJMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c241">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierJMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c242">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierJMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c243">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierKMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c244">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierKMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c245">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionBySupplierAxis">petz:SupplierKMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c246">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:PetFoodSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c247">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:RestaurantBusinessMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c248">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:PetFoodSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c249">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:RestaurantBusinessMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c250">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:PetFoodSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c251">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:RestaurantBusinessMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c252">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:PetFoodSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c253">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:RestaurantBusinessMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c254">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:PetFoodSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c255">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:RestaurantBusinessMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c256">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:PetFoodSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c257">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">petz:RestaurantBusinessMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c258">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:OverseaSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c259">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:OverseaSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c260">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:OverseaSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c261">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:DomesticSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c262">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:DomesticSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c263">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:DomesticSalesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c264">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:ElectronicCommerceMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c265">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:ElectronicCommerceMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c266">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:ElectronicCommerceMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c267">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:RestaurantRevenueMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c268">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:RestaurantRevenueMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c269">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementBusinessSegmentsAxis">petz:RestaurantRevenueMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c270">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c271">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c272">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:MarketingChannelsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c273">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:PetChewsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c274">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:PetChewsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c275">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:PetChewsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c276">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:DriedPetSnacksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c277">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:DriedPetSnacksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c278">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:DriedPetSnacksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c279">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:WetCannedPetFoodMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c280">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:WetCannedPetFoodMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c281">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:WetCannedPetFoodMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c282">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:DentalHealthSnacksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c283">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:DentalHealthSnacksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c284">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:DentalHealthSnacksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c285">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:BakedPetBiscuitsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c286">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:BakedPetBiscuitsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c287">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:BakedPetBiscuitsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c288">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:RestaurantRevenueMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c289">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:RestaurantRevenueMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c290">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:RestaurantRevenueMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c291">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:OthersMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c292">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:OthersMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c293">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsegmentsAxis">petz:OthersMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c294">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c295">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c296">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:SalesRevenueProductLineMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c297">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">currency:KRW</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c298">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">currency:KRW</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c299">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:CN</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c300">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:CN</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c301">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:CN</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c302">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:GB</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c303">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:GB</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c304">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:GB</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c305">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:DE</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c306">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:DE</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c307">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:DE</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c308">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c309">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c310">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c311">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">petz:OtherCountriesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c312">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">petz:OtherCountriesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c313">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">petz:OtherCountriesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c314">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c315">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-01-01</xbrli:startDate>
    <xbrli:endDate>2021-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c316">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">petz:DifferentCountriesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c317">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2010-10-06</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c318">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-01-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c319">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ProductOrServiceAxis">us-gaap:MaintenanceMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-01-01</xbrli:startDate>
    <xbrli:endDate>2022-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c320">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">petz:GaochuangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c321">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">petz:GaochuangMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c322">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:OwnershipAxis">petz:QingdaoTiandihuiFoodstuffsCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-03-13</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c323">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">petz:LiujiayiPetTechnologyCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-02-28</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c324">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:LiujiayiPetTechnologyCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-02-01</xbrli:startDate>
    <xbrli:endDate>2018-02-28</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c325">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TideFoodCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c326">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">petz:TideFoodCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c327">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TideFoodCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c328">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001684425</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">petz:TideFoodCoLtdMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:unit id="shares">
  <xbrli:measure>xbrli:shares</xbrli:measure>
</xbrli:unit><xbrli:unit id="usd">
  <xbrli:measure>iso4217:USD</xbrli:measure>
</xbrli:unit><xbrli:unit id="usdPershares">
  <xbrli:divide>
    <xbrli:unitNumerator>
      <xbrli:measure>iso4217:USD</xbrli:measure>
    </xbrli:unitNumerator>
    <xbrli:unitDenominator>
      <xbrli:measure>xbrli:shares</xbrli:measure>
    </xbrli:unitDenominator>
  </xbrli:divide>
</xbrli:unit><xbrli:unit id="pure">
  <xbrli:measure>xbrli:pure</xbrli:measure>
</xbrli:unit><xbrli:unit id="cny">
  <xbrli:measure>iso4217:CNY</xbrli:measure>
</xbrli:unit><xbrli:unit id="eur">
  <xbrli:measure>iso4217:EUR</xbrli:measure>
</xbrli:unit></ix:resources></ix:header>

</div></div></body>
</html>
[{"type": "20-F", "sequence": "1", "filename": "f20f2022_tdhholdings.htm", "description": "ANNUAL REPORT", "secsgml_size_bytes": 1868337}]
{"company-data": {"conformed-name": "TDH Holdings, Inc.", "cik": "0001684425", "assigned-sic": "2000", "irs-number": "000000000", "state-of-incorporation": "D8", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "001-38206", "film-number": "23845995"}, "business-address": {"street1": "C/O QINGDAO TIANDIHUI PET FOODSTUFF CO.,", "street2": "2521 TIEJUESHAN RD., HUANGDO DISTRICT", "city": "QINGDAO, SHANDONG PROVINCE", "state": "F4", "zip": "0000", "phone": "86-532-85919267"}, "mail-address": {"street1": "C/O QINGDAO TIANDIHUI PET FOODSTUFF CO.,", "street2": "2521 TIEJUESHAN RD., HUANGDO DISTRICT", "city": "QINGDAO, SHANDONG PROVINCE", "state": "F4", "zip": "0000"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
20-F
(Mark one)
☐
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended
December 31
,
2022
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☐
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from ____________ to
____________
Commission file number
001-38206
TDH Holdings, Inc.
(Exact name of the Registrant as specified in its
charter)
British Virgin Islands
(Jurisdiction of incorporation or organization)
c/o Qingdao Tiandihui Pet Foodstuff Co., Ltd
2521
Tiejueshan Road
,
Huangdao District
,
Qingdao
,
Shandong Province
People's Republic of
China
Tel: +86-532-8615-7918
(Address of principal executive offices)
Dandan Liu, Chief Executive Officer
c/o Qingdao Tiandihui Pet Foodstuffs Co. Ltd.,
2521
Tiejueshan Road
,
Huangdao District
,
Qingdao
,
Shandong Province
People's Republic of
China
Tel: +
86-532-8615-7918
(Name, Telephone, E-mail and/or Facsimile Number
and Address of Company Contact Person)
Securities registered or to be registered pursuant
to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
SHARES, PAR VALUE $0.02
PETZ
The
NASDAQ
Stock Market LLC
Securities registered or to be registered pursuant
to Section 12(g) of the Act:
None.
Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act:
None.
As of the close of the period covered by this
annual report the issuer had
10,323,268
shares outstanding.
Indicate by check mark if the registrant is a
well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
☐
No
☒
If this report is an annual or transition report,
indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934.
Yes
☐
No
☒
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes
☒
No
☐
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files).
Yes
☒
No
☐
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large
accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
☐
Large Accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Emerging growth company
If an emerging growth company that prepares its
financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant
has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.
☐
If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statement of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.
☐
Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b).
☐
Indicate by check mark which basis of accounting
the registrant has used to prepare the financial statements included in this filing:
☒
US GAAP
☐
International Financial Reporting Standards as issued by
the International Accounting Standards Board
☐
Other
If "Other" has been checked in response
to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
☐
Item 17
☐
Item 18
If this is an annual report, indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐
No
☒
Table
of Contents
Page
PART I
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
1
ITEM 2.
OFFER STATISTICS AND EXPECTED TIMETABLE
1
ITEM 3.
KEY INFORMATION
1
ITEM 4.
INFORMATION ON THE COMPANY
26
ITEM 4A.
UNRESOLVED STAFF COMMENTS
36
ITEM 5.
OPERATING AND FINANCIAL REVIEW AND PROSPECT
36
ITEM 6.
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
63
ITEM 7.
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
70
ITEM 8.
FINANCIAL INFORMATION
73
ITEM 9.
THE OFFER AND LISTING
76
ITEM 10.
ADDITIONAL INFORMATION
76
ITEM 11.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
83
ITEM 12.
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
83
PART II
ITEM 13.
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
84
ITEM 14.
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
84
ITEM 15.
CONTROLS AND PROCEDURES
84
ITEM 16.
RESERVED
85
ITEM 16A.
AUDIT COMMITTEE FINANCIAL EXPERT.
85
ITEM 16B.
CODE OF ETHICS.
85
ITEM 16C.
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
85
ITEM 16D.
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.
86
ITEM 16E.
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.
86
ITEM 16F.
CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
86
ITEM 16G.
CORPORATE GOVERNANCE
86
ITEM 16H.
MINE SAFETY DISCLOSURE
86
ITEM 16I.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.
86
PART III
ITEM 17.
FINANCIAL STATEMENTS
87
ITEM 18.
FINANCIAL STATEMENTS
87
ITEM 19.
EXHIBITS
87
i
CERTAIN INFORMATION
In this Annual Report on Form
20-F (the "Annual Report"), unless otherwise indicated, numerical figures included in this Annual Report have been subject
to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures
that precede them.
For the sake of clarity, this
Annual Report follows the English naming convention of first name followed by last name, regardless of whether an individual's name
is Chinese or English.
Except where the context otherwise
requires and for purposes of this Annual Report only:
●
Depending on the context, the
terms "we," "us," "our company," and "our" refer to TDH Holdings, Inc., a British Virgin
Islands company;
●
TDH HK Limited, a Hong Kong
company wholly-owned by TDH HOLDINGS, INC.;
●
TDH Foods Limited, a Hong Kong
company wholly-owned by TDH HOLDINGS, INC.;
●
TDH Group BVA, a Belgium company
wholly-owned by TDH Holdings, Inc;
●
TDH Income Corporation, a Nevada
corporation;
●
Ruby21Noland LLC, a Missouri
corporation;
●
Far Ling's Inc., a Missouri
corporation;
●
Bo Ling's Chinese Restaurant,
Inc., a Missouri corporation;
●
Qingdao Tiandihui Foodstuffs
Co., Ltd. ("Tiandihui"), a Chinese limited liability company;
●
Qingdao Tiandihui Pet Foodstuffs
Co., Ltd., a Chinese limited liability company;
●
Qingdao Tiandihui Foodstuffs
Sales Co., Ltd., a Chinese limited liability company;
●
Beijing Chongai Jiujiu Cultural Communication
Co., Ltd., a Chinese limited liability company;
●
Beijing Wenxin Company., Ltd., a Chinese limited liability
company;
●
Qingdao Chihong Information Consulting Co., Ltd., a Chinese limited liability company;
●
"shares" and "common shares" refer to our shares, $0.02 par value per share;
●
"China" and "PRC" refer to the People's Republic of China, excluding, for the purposes of this Annual Report only, Macau, Taiwan and Hong Kong; and
●
all references to "RMB," and "Renminbi" are to the legal currency of China, all references to "USD," and "U.S. Dollars" are to the legal currency of the United States., all references to "Yen" and "¥" is to the legal currency of Japan, and all references to "Euro" and "€" are to the legal currency of Belgium.
ii
FORWARD-LOOKING STATEMENTS
This Report contains "forward-looking
statements" that represent our beliefs, projections and predictions about future events. All statements other than statements of
historical fact are "forward-looking statements" including any projections of earnings, revenue or other financial items,
any statements of the plans, strategies and objectives of management for future operations, any statements concerning proposed new projects
or other developments, any statements regarding future economic conditions or performance, any statements of management's beliefs,
goals, strategies, intentions and objectives, and any statements of assumptions underlying any of the foregoing. Words such as "may",
"will", "should", "could", "would", "predicts", "potential", "continue",
"expects", "anticipates", "future", "intends", "plans", "believes",
"estimates" and similar expressions, as well as statements in the future tense, identify forward-looking statements.
These statements are necessarily
subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance
or achievements, or industry results, to differ materially from any future results, performance or achievements described in or implied
by such statements. Actual results may differ materially from expected results described in our forward-looking statements, including
with respect to correct measurement and identification of factors affecting our business or the extent of their likely impact, the accuracy
and completeness of the publicly available information with respect to the factors upon which our business strategy is based on the success
of our business.
Forward-looking statements
should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the
times by which, our performance or results may be achieved. Forward-looking statements are based on information available at the time
those statements are made and management's belief as of that time with respect to future events and are subject to risks and uncertainties
that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.
Important factors that could cause such differences include, but are not limited to, those factors discussed under the headings "Risk
Factors", "Operating and Financial Review and Prospects," "Information on the Company" and elsewhere in
this Annual Report.
This Annual Report should be
read in conjunction with our audited financial statements and the accompanying notes thereto, which are included in Item 18 of this Annual
Report.
Summary of Risk Factors
Investing in our Common
Shares involves significant risks. You should carefully consider all of the information in this annual report before making an investment
in our Common Shares. Below please find a summary of the principal risks we face, organized under the relevant headings. These risks are
discussed more fully in the section titled "Risk Factors"
Risks related to our business.
See "Risk Factors – Risks Related to Our Business
"
Risk and uncertainties related
to our business include, but are not limited to, the following:
●
Legal claims by vendors could
impair our ability to continue as a going concern.
●
Various pending lawsuits, legal
claims, proceedings and arbitrations could impair our ability to continue as a going concern.
●
Labor arbitration claims by
former employees could impair our ability to continue as a going concern.
●
The report of our independent
registered public accounting firm on our financial statements includes an explanatory paragraph that expresses substantial doubt about
our ability to continue as a going concern.
●
We have historically incurred recurring losses and it is uncertain whether we may continue to incur losses in the future.
●
We
                                            discontinued our petfood manufacturing segment and the turnaround of our business currently
                                            depends, in part, on our ability to successfully generate revenue in the restaurant segment.
●
We depend on our key personnel,
and our business and growth prospects may be severely disrupted if we lose their services.
iii
●
If our products are alleged
to cause injury or illness or fail to comply with PRC or other applicable governmental regulations, we may need to recall our products
and may experience product liability claims.
Risks related to our restaurant
segment business. See "Risk Factors – Risks Related to the Restaurant Segment
"
Risk and uncertainties related
to our restaurant segment business include, but are not limited to, the following:
●
Social distancing measures and
changes in consumer behavior as a result of COVID-19 have affected and may materially and adversely affect us.
●
Our restaurant base is geographically concentrated in Missouri, and we could be negatively affected by conditions specific to this state.
●
Failure to preserve the value
and relevance of our brand could have an adverse impact on our financial results.
●
If we do not anticipate and
address evolving consumer preferences and effectively execute our pricing, promotional and marketing plans, our business could suffer.
●
We face intense competition in our market, which could hurt
our business.
●
Food safety and foodborne illness concerns may have an adverse
effect on our reputation and business.
Risks related to Doing
Business in China. See "Risk Factors – Risks Related to Doing Business in China"
Risk and uncertainties related
to doing business in China include, but are not limited to, the following:
●
Because of our corporate structure,
we as well as the investors are subject to unique risks due to uncertainty of the interpretation and the application of the PRC laws
and regulations.
●
Uncertainties with respect to
the PRC legal system could have a material adverse effect on us.
●
The Chinese government exerts
substantial influence over the manner in which we must conduct our business activities and may intervene or influence our operations
at any time, which could result in a material change in our operations and the value of our Common Shares.
●
Draft rules for China-based
companies seeking for securities offerings in foreign stock markets was released by the CSRC for public consultation. While such rules
have not yet come into effect, the Chinese government may exert more oversight and control over overseas public offerings conducted by
China-based issuers, which could significantly limit or completely hinder our ability to offer or continue to offer our Common Shares
to investors and could cause the value of our Common Shares to significantly decline or become worthless.
●
CSRC and other Chinese government
agencies may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers.
Additional compliance procedures may be required in connection offerings, and, if required, we cannot predict whether we will be able
to obtain such approval. As a result, we face uncertainty about future actions by the PRC government that could significantly affect
our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be
worthless.
●
We may be liable for improper
use or appropriation of personal information provided by our customers.
●
Since our operations and some
of our assets are located in the PRC, shareholders may find it difficult to enforce a U.S. judgment against the assets of our company,
our directors and executive officers.
●
We hold certain of our cash balances in RMB in uninsured
bank accounts in China.
iv
●
We may be subject to PRC regulatory
limitations on merger and acquisition (M&A) activities.
●
Fluctuation of the Renminbi
may indirectly affect our financial condition by affecting the volume of cross-border money flow.
●
We may become a passive foreign
investment company, which could result in adverse U.S. tax consequences to U.S. investors.
●
Introduction of new laws or
changes to existing laws by the PRC government may adversely affect our business.
●
Governmental control of currency
conversion may affect the value of your investment.
●
PRC's labor law restricts
our ability to reduce our workforce in the PRC in the event of an economic downturn and may increase our production costs.
●
Changes in PRC's political
and economic policies could harm our business.
●
If relations between the United
States and China worsen, our share price may decrease and we may have difficulty accessing U.S. capital markets.
●
Because our operations are
located in the PRC, information about our operations is not readily available from independent third-party sources.
Risks related to the Ownership
of our Common Shares. See "Risk Factors – Risks Related to the Ownership of our Common Shares"
Risk and uncertainties related
to ownership of our Commons Shares include, but are not limited to, the following:
●
We are a holding company incorporated
in the British Virgin Islands. As a holding company with no material operations of our own, we conduct a substantial majority of our
operations through our subsidiaries established in the PRC.
●
Recent joint statement by the
SEC and PCAOB, proposed rule changes submitted by Nasdaq, and an act passed by the U.S. Senate all call for additional and more stringent
criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors
who are not inspected by the PCAOB. These developments could add uncertainties to our listing.
●
The Holding Foreign Companies
Accountable Act all call for additional and more stringent criteria to be applied to emerging market companies upon assessing the qualification
of their auditors, especially the non-U.S. auditors who are not inspected by the PCAOB. These developments could add uncertainties to
our continued listing.
●
If our financial condition deteriorates
as a NASDAQ listed company, we may not meet continued listing standards on the NASDAQ Capital Market.
●
We are a "foreign private
issuer," and our disclosure obligations differ from those of U.S. domestic reporting companies. As a result, we may not provide
you the same information as U.S. domestic reporting companies or we may provide information at different times, which may make it more
difficult for you to evaluate our performance and prospects.
●
The market price of shares may
be volatile, which could cause the value of your investment to decline.
●
As the rights of shareholders
under British Virgin Islands law differ from those under U.S. law, you may have fewer protections as a shareholder.
v
PART I
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not required.
ITEM 2.
OFFER STATISTICS AND EXPECTED TIMETABLE
Not required.
ITEM 3.
KEY INFORMATION
A.
[Reserved]
B.
Capitalization and Indebtedness
Not required.
C.
Reasons for the Offer and Use of Proceeds
Not required.
D.
Risk factors
You should carefully consider
the following risk factors, together with all of the other information included in this Annual Report.
Risks Related to Our Business
Legal claims by vendors could impair our ability
to continue as a going concern.
Since November 2019, the Company has been a subject
of 57 lawsuits by its raw material supplies, printing and packaging supplies, transportation companies and other vendors. The claims raised
in these lawsuits pertain to the Company's non-payment of various invoices for supplier and vendor services rendered, with related
interest and costs. As of the date of this report, in 44 cases, the creditors have reached civil conciliation letters with our company,
and in 9 cases, the court has issued civil judgments. With respect to the remaining 4 cases, the plaintiffs withdrew the lawsuit because
of lack of evidence. The mediation and judgment involved total claims of RMB13.86 million (USD$2.12 million). Such liabilities have been
accrued and reflected in the consolidated financial statements for the year ended December 31, 2020. On March 13, 2021, a land use right
and a factory building on the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million). On March 16, 2022,
the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors'
application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now
subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not
been completed and are expected to be completed by the end of 2023.
1
Various pending lawsuits, legal claims, proceedings
and arbitrations could impair our ability to continue as a going concern.
As of December 31, 2022, we had the following
pending lawsuits, legal claims, proceedings and arbitrations:
●
On December 2, 2019, Qingdao Lingang Real Estate Co., Ltd. ("QLRE"), filed a civil lawsuit against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The Company entered into a loan agreement with QLRE in 2018 and borrowed RMB20 million (USD3.18 million) from QLRE in connection with purchase of a factory. The loan was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. The Company failed to make repayment to QLRE. On March 4, 2020, the Court ordered that: (i) the Company repay QLRE the principal amount of RMB20 million plus interest of RMB 550,000 accrued as of October 31, 2019. The court ordered that the payment be made within 10 business days after the effective date of the court ruling, and also ordered that the Company pay interest at the rate of 2% per month for the period from the date of November 1, 2019 to the date of full discharge of the debt, as well as the litigation fee of RMB77,000 (USD$11,933). If the debt is not repaid within the required timeframe, interest shall be doubled from the effective date of court order until the date of full discharge of the debt.  As of December 31, 2021, we have not satisfied the repayment to QLRE. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
●
On January 15, 2020, China Construction Bank ("CCB"), initiated a civil claim against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The plaintiff alleged that it executed a loan agreement with the Company in the amount of RMB19.93 million (USD3.08 million) for the purchase of manufacturing facility and the associated land use right located at Lingang Economic Development Zone, Huangdao District, Qingdao, Shandong Province, People's Republic of China. Rongfeng Cui and his wife, Yanjuan Wang, co-signed for this loan as personal guarantors subject to joint and several liability in connection with the loan. The loan with CCB was guaranteed by Rongfeng Cui and Yanjuan Wang, and secured by a pledge by the aforementioned manufacturing facilities and associated land use right. On April 14, 2020, the Court has ordered among other things that the Company repay RMB19.93 million (USD3.25 million) of principal and accrued interest to CCB, and to sell the mortgaged property. On March 13, 2021, the land and factory buildings on the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million), of which, $3,192,827 (RMB21.14 million) has been used to repay loan principal and accrued interest to CCB. The repayment was completed by April 2021.
●
On
    November 11, 2019, Shanghai Pudong Development Bank Qingdao Branch ("SPDB"), filed a civil lawsuit against Tiandihui,
    Qingdao Saike Environmental Technology Co., Ltd. ("Saike"), Qingdao Gaochuang Technology Finance Guarantee Co., Ltd.
    ("Gaochuang"), Rongfeng Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB to borrow an
    aggregate of RMB4.85 million (USD0.75 million) from SPDB for working capital purpose. The Company failed to repay the debt upon
    maturity. The borrowing from SPDB was guaranteed by Rongfeng Cui and Yanjuan Wang, and secure by a pledge of land use right and real
    property of Saike and certaim real property owned by Rongfeng Cui and Yanjuan Wang. The Company failed to make repayment to SPDB on
    the maturity date. On October 24, 2020, the court has ordered the Company to repay SPDB the principal owed plus interest at the
    annual interest rate of 18.25%. The payment was required to be made within 10 business days after the effective date of the order.
    If the debt was not paid within the required timeframe, interest doubled from the effective date of the court order until the date
    of full discharge of the debt.  The Company is also required to pay litigation fees in the amount of  RMB156,880 (USD
    24,312).  As of December 31, 2021, we have not satisfied the repayment to SPDB.  On March 16, 2022, the People's
    Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors'
    application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are
    now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings
    have not been completed and are expected to be completed by the end of 2023.
2
●
On December 10, 2019, Qingdao Gaochuang Technology Finance Guarantee Co., Ltd. ("Gaochuang"), initiated a civil claim against Tiandihui, Saike, Rongfeng Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB for bank acceptance draft and Gaochuang executed the guarantee of SPDB bank acceptance deposit on behalf of the Company in the amount of RMB1.2 million (USD0.19 million). The Company failed to repay the RMB 1.2 million ($0.19 million) deposit to Gaochuang upon the bank acceptance draft maturity date. The deposit made by Gaochuang was guaranteed by certain of the Company's fixed assets and patents.  On December 29, 2020, the court ordered the Company to repay the RMB 1.2 million ($0.19 million) deposit to Gaochuang and the interest at the annual interest rate of 4.15%. The payment was required to be made within 10 business days after the effective date of the court order. The court order also provides that if the debt was not paid within the required timeframe, interest doubled from the effective date of court order until the date of full discharge of the debt.  The court order also obligate the Company to bear litigation fees of RMB83,127(USD 12,882).  As of December 31, 2021, we had not satisfied the repayment to Gaochuang. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
●
On May 6, 2020, the Postal Savings Bank of China Limited Weihai Road Sub-branch of Qingdao North District (hereinafter referred to as Postal Savings) filed a civil lawsuit against Tiandihui, Rongfeng Cui and Yanjuan Wang. The Company entered into two loan agreements with Postal Savings in 2018 and 2019, respectively, and borrowed RMB9.9 million ($1.53 million) in aggregate. The loans were guaranteed by Rongfeng Cui and Yanjuan Wang, and were secured by a pledge of real property owned by the Company and real property owned by Rongfeng Cui. The Company failed to pay its debt to Postal Savings when it was due. In June 2020, the court ordered the Company to repay to Postal Savings the principal and interest under the loan, and to reimburse Postal Savings for the litigation fees incurred by Postal Savings.  If the court decide to auction the pledged real properties, Postal Savings shall have the priority right of the repayment from the auction proceeds. As of December 31, 2021, we had not satisfied the repayment to Postal Savings.  On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
Labor arbitration claims by former employees
could impair our ability to continue as a going concern.
The Company dismissed certain employees in 2019
and 2020 and only maintained 51 full-time employees during fiscal year 2022 and as of December 31, 2022. As a result of the employee layoffs,
certain of the Company's former employees commenced arbitration proceedings against the Company under applicable labor rules and
standards, claiming, among others, lost wages, severance payments and/or social security obligations totaling RMB3.68 million (USD0.56
million). There were 98 labor arbitrations, of which 6 cases has been settled and the trial court has issued decisions on the remaining
92 cases. The Company accrued approximately $0.4 million contingent liabilities in other current liabilities on the consolidated balance
sheet as of December 31, 2019 and recognized contingent losses of approximately $0.4 million for the year ended December 31, 2019. Upon
the issuance of rulings in these cases, the Company further accrued approximately $0.1 million wage and/or severance payables in other
current liabilities on the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $0.1 million for
the year ended December 31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were actioned by
the court for $5,098,461 (RMB 33.14 million). In 2021, we have paid RMB3.73 million to substantially settle the labor arbitration cases
with our former employees. We only had RMB 0.5 million ($0.08 million) remaining severance payables to them as of December 31, 2021. On
March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance
of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these
legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy
proceedings have not been completed and are expected to be completed by the end of 2023.
3
The report of our independent registered public
accounting firm on our financial statements includes an explanatory paragraph that expresses substantial doubt about our ability to continue
as a going concern, and if our business is unable to continue it is likely investors will lose all of their investment.
As discussed in Note 2 to the consolidated financial
statements to this Annual Report, the Company discontinued its petfood business during the first quarter of 2023 and currently the Company's
revenue is substantially generated from the restaurant business segment. The Company's business turnaround currently depends, in
part, on its ability to successfully introduce manage and acquire new restaurants. If the Company is not able to effectively manage and
acquire new restaurants that successfully generate revenue, it may not be able to grow and maintain its business as anticipated, and its
sales may decline and its future business, financial condition and results of operations may be materially adversely affected.
In addition, as of December 31, 2022, there were
still various pending lawsuits, legal claims, proceedings, arbitrations and bankruptcy proceedings that could impair the Company's
future ability to continue as a going concern
.
Furthermore, the Company's business operations may be further affected by
the ongoing COVID-19 pandemic. There can be no assurances that future revenue or capital infusion will be sufficient to enable the Company
to develop its business to a level where it will be profitable or continuously to generate positive cash flows. Our auditor, YCM CPA Inc,
has indicated in their report on the Company's financial statements for the fiscal year ended December 31, 2022 that there is "substantial
doubt about our ability to continue as a going concern". A "going concern" opinion could impair our ability to finance
our operations through the sale of equity, incurring debt, or other financing alternatives.
Management's plan to alleviate the substantial
doubt about our ability to continue as a going concern include working to improve the Company's liquidity and capital sources mainly
through cash flow from its operations and raise sufficient capital through equity or debt financing, strategic alliances or otherwise.
If we are unable to achieve these goals, our business will be jeopardized and we may not be able to continue. If we ceased operations,
it is likely that all of our investors will lose their investment.
In the absence of an additional liquidity, our
ability to continue to operate will be impaired, and we may not be able to continue as a going concern. Additionally, even if we raise
sufficient capital through equity or debt financing, strategic alliances or otherwise or generate additional revenue there can be no assurances
that future revenue or capital infusion will be sufficient to enable us to develop our business to a level where it will be profitable
or to generate positive cash flows.
We have historically incurred recurring losses
and it is uncertain whether we may continue to incur losses in the future.
Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayment to financial institutions
upon maturity, we temporarily suspended our production and normal business operations and we were involved in certain legal proceedings
beginning in November 2019. The COVID-19 outbreak and spread further disrupted our business activities during the period from the beginning
of 2020 up to May 2020 when we resumed our business operations. Historically, we reported recurring losses of approximately $0.87 million
and $6.72 million for the years ended December 31, 2020 and 2021, respectively. On October 31, 2021, we acquired 51% equity interests
of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.6 million
and $3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively. However, we discontinued our petfood
manufacturing segment in the first quarter of 2023 and currently our revenue is substantially generated from the restaurant business segment.
Our business turnaround currently depends, in part, on our ability to successfully introduce, manage and acquire new restaurants. If we
are not able to effectively manage and acquire new restaurants that successfully generate revenue, we may not be able to grow and maintain
our business as anticipated. Although we reported a net income of approximately $0.86 million in fiscal year 2022, it is uncertain whether
we may be able to continue to achieve profitability in the future. Our future revenue and operating cash flows may be further affected
by various pending lawsuits, legal claims, proceedings, arbitration and bankruptcy proceedings. In order to achieve profitability, among
other factors, management must successfully execute our growth and restaurant operations in the markets on which we are focused. If we
are unable to successfully take necessary steps, we may be unable to sustain or increase our profitability in the future.
4
The Company is party to various legal proceedings
by its vendors and lenders, which proceedings distract our management, are expensive to conduct and could result in significant damage
award against the Company.
During the period from November 2019 to 2020,
the Company has been named as a defendant in 57 lawsuits by its raw material supplies, printing and packaging supplies, transportation
companies and other vendors. The claims raised in these lawsuits pertain to the Company's non-payment of various invoices for supplier
and vendor services rendered, with interest and costs. As of the date of this Annual Report, the creditors of 44 cases have reached civil
conciliation letters with the Company, and the court has issued civil judgments in 9 cases, another 4 claimants withdrew their cases for
various reasons including lack of evidence. The mediation and judgment costs are estimated approximately RMB13.86 million (USD$2.12 million).
In addition, several lending institutions have instituted legal proceedings to recover loans made to the Company. Finally, there are several
labor arbitration claims against the Company brought by its former employees following the layoffs, claiming, among others, lost wages,
severance payments and/or social security obligations totaling RMB3.68 million (USD$0.56 million). On March 13, 2021, the land and factory
buildings above the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB 33.14 million), among which, approximately
$3.2 million has been used to repay the defaulted loan to China Construction Bank. In 2021, we have paid RMB3.73 million to substantially
settle the labor arbitration cases with our former employees and we only have RMB 0.5 million ($0.08 million) remaining in severance payables
to them as of December 31, 2021. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made
a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
We discontinued our petfood manufacturing segment
and the turnaround of our business depends, in part, on our ability to successfully generate revenue in the restaurant segment.
Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended
our production and normal business operations and we were involved in certain legal proceedings beginning in November 2019. The COVID-19
outbreak and spread further disrupted our business activities from the beginning of 2020 up to May 2020 when we resumed our business operations.
These factors led to significant decrease in our petfood sales. On October 31, 2021, we acquired 51% equity interests of Far Ling's
Inc and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.6 million and $3.1 million
in food service revenue for the years ended December 31, 2021 and 2022, respectively. Although we reported a net income of approximately
$0.86 million for the year ended December 31, 2022, our revenues generated may not be sufficient to support our future business operations
given the uncertainty that our business operations may be further affected by various pending lawsuits, legal claims, proceedings, arbitrations
and bankruptcy proceedings.
We discontinued our petfood business during the
first quarter of 2023. Our decision to discontinue our petfood business was driven largely by the following factors: the increase in cost
of raw materials required for production; accepting less orders in an attempt to avoid unprofitable orders and customers; decreased
demand for sales of petfood; its historical performance and expected business forecasts in the absence of further capital investments
and opportunity costs; and lawsuits and the closing of our manufacturing facilities.
Our turnaround depends, in part, on our ability
to successfully introduce manage and acquire new restaurants. This, in turn, depends on our ability to predict and respond to evolving
consumer trends, demands and preferences. The management and acquisition of restaurants involves considerable costs. If we are not able
to effectively manage and acquire new restaurants that successfully generate revenue, we may not be able to grow and maintain our business
as anticipated, and our sales may decline and our business, financial condition and results of operations may be materially adversely
affected.
5
We depend on our key personnel, and our business
and growth prospects may be severely disrupted if we lose their services.
Our future success depends heavily upon the continued
service of our key executives. We rely on their business, industry, financial and capital markets knowledge and experience. If our CEO
or CFO became unable or unwilling to continue in their present positions, we may not be able to replace them easily, our business may
be significantly disrupted and our financial condition and results of operations may be materially adversely affected.
We do not maintain key man life insurance on
any of our senior management or key personnel.
The loss of any one of them would have a material
adverse effect on our business and operations. Competition for senior management and our other key personnel is intense and the pool of
suitable candidates is limited. We may be unable to locate a suitable replacement for any senior management or key personnel that we lose.
In addition, if any member of our senior management or key personnel joins a competitor or forms a competing company, they may compete
with us for customers, business partners and other key professionals and staff members of our Company. In addition, we compete for qualified
personnel with other companies, and we face competition in attracting skilled personnel and retaining the members of our senior management
team. These personnel possess technical and business capabilities which are difficult to replace. There is intense competition for experienced
senior management with technical and industry expertise in our industry, and we may not be able to retain our key personnel. Intense competition
for these personnel could cause our compensation costs to increase, which could have a material adverse effect on our results of operations.
Our future success and ability to grow our business will depend in part on the continued service of these individuals and our ability
to identify, hire and retain additional qualified personnel. If we are unable to attract and retain qualified employees, we may be unable
to meet our business and financial goals.
If our products are alleged to cause injury
or illness or fail to comply with PRC or other applicable governmental regulations, we may need to recall our products and may experience
product liability claims.
Our products may be exposed to product recalls,
including voluntary recalls or withdrawals, if they are alleged to pose a risk of injury or illness, or if they are alleged to have been
mislabeled, misbranded or adulterated or to otherwise be in violation of governmental regulations. We may also voluntarily recall or withdraw
products in order to protect our brand or reputation if we determine that they do not meet our standards, whether for palatability, appearance
or otherwise. If there is any future product recall or withdrawal, it could result in substantial and unexpected expenditures, destruction
of product inventory, damage to our reputation and lost sales due to the unavailability of the product for a period of time, and our business,
financial condition and results of operations may be materially adversely affected. We also may be subject to claims if the consumption
or use of our products is alleged to cause injury or illness. If there is a judgment against us or a settlement agreement related to a
claim, our business, financial condition and results of operations may be materially adversely affected.
Risks Related to the Restaurant Segment
The ongoing COVID-19 pandemic may continue
to adversely affect, our operations, financial condition, liquidity and financial results.
In response to the Covid-19 outbreak, many state
and local authorities had mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor
dining capacities. COVID-19 and the government measures taken to control it have caused a significant disruption to our business of Bo
Lings. As of the filing date of this Annual Report on Form 20-F, we had Bo Lings operating at 100% indoor dining capacity. However, there
can be no assurance that developments with respect to the COVD-19 pandemic and government measures taken to control it will not adversely
affect our operations and financial results.
Our Bo Lings restaurant is located in Missouri.
As a result of our concentration in this market, we may be disproportionately affected by any increased severity of the pandemic and heightened
regulatory measures in Missouri compared to other chain restaurants with a broader national footprint.
6
A prolonged occurrence of COVID-19 may result
in restaurant re-closures, prohibition on indoor dining, and further restrictions, including possible travel restrictions and additional
restrictions on the restaurant industry. Our efforts to mitigate the effect of COVID-19 on our business or the economic downturn may be
unsuccessful, and we may not be able to commence operations in a timeframe that is sufficient or otherwise take actions in response to
developments with regard to the pandemic. The future sales levels of Bo Lings and our ability to implement our growth strategy remain
highly uncertain, as the full impact and duration of the COVID-19 pandemic continues to evolve.
Social distancing measures and changes in consumer
behavior as a result of COVID-19 have affected and may materially and adversely affect Bo Lings.
Social distancing measures due to the COVID-19
pandemic impacted our operation of Bo Lings, as customers choose to avoid public gathering places, and additional social distancing actions
could result in a loss of sales and profit. Additionally, consumer behavior has changed and may fundamentally change as a result of COVID-19
in both the near and long term and such change may pose significant challenges to our operation of Bo Lings. Traffic in restaurants, including
Bo Lings, has been affected and may be materially and adversely affected with more consumers relying on off-premises orders. Consumer
spending has also been and may continue to be negatively impacted by general macroeconomic conditions and consumer confidence, including
the impacts of economic downturns, resulting from the COVID-19 pandemic. All of this could materially and adversely impact sales at Bo
Lings and our growth prospects. We have made adjustments to our operation of Bo Lings due to the COVID-19 pandemic and may have to re-design
our service and business models to accommodate consumers' changed behavior patterns. Any such attempted effort could result in capital
expenditures, business disruption and lower margin sales, and may not be successful in growing our profitability.
Our restaurant base is geographically concentrated
in Missouri, and we could be negatively affected by conditions specific to this state.
Bo Lings is located in Missouri. Adverse changes
in demographic, unemployment, economic, regulatory or weather conditions in Missouri have had, and may continue to have, material adverse
effects on our business, financial condition or results of operations. As a result of our concentration in this market, we have been,
and in the future may be, disproportionately affected by adverse conditions in this market compared to other chain restaurants with a
broader national footprint.
Failure to preserve the value and relevance
of our brand could have an adverse impact on our financial results.
To be successful in the future, we believe we
must preserve, enhance and leverage the value of our brand, including corporate purpose, mission and values. Brand value is based in part
on consumer perceptions, which are affected by a variety of factors, including the nutritional content and preparation of our food, the
ingredients we use, the manner in which we source commodities and our general business practices, including the people practices at Bo
Lings. Consumer acceptance of our offerings is subject to change for a variety of reasons, and some changes can occur rapidly. For example,
nutritional, health, environmental and other scientific studies and conclusions, which constantly evolve and may have contradictory implications,
drive popular opinion, litigation and regulation (including initiatives intended to drive consumer behavior) in ways that affect the "informal
eating out" ("IEO") segment or perceptions of our brand, generally or relative to available alternatives. Our business
could also be impacted by business incidents or practices, whether actual or perceived, particularly if they receive considerable publicity
or result in litigation, as well as by our position or perceived lack of position on environmental, social responsibility, public policy,
geopolitical and similar matters. Consumer perceptions may also be affected by adverse commentary from third parties, including through
social media or conventional media outlets, regarding the IEO segment or our brand, culture, operations, suppliers or franchisees. If
we are unsuccessful in addressing adverse commentary or perceptions, whether or not accurate, our brand and financial results may suffer.
7
If we do not anticipate and address evolving
consumer preferences and effectively execute our pricing, promotional and marketing plans, our business could suffer.
Our continued success depends on our ability to
build upon our historic strengths and competitive advantages. In order to do so, we need to anticipate and respond effectively to continuously
shifting consumer demographics and trends in food sourcing, food preparation, food offerings, and consumer behavior and preferences, including
with respect to environmental and social responsibility matters, in the IEO segment. If we are not able to predict, or quickly and effectively
respond to, these changes, or if our competitors predict or respond more effectively, our financial results could be adversely impacted.
Our ability to build upon our strengths and advantages
also depends on the impact of our pricing, promotional and marketing plans, and the ability to adjust these plans to respond quickly and
effectively to evolving customer behavior and preferences, as well as shifting economic and competitive conditions. Existing or future
pricing strategies and marketing plans, as well as the value proposition they represent, are expected to continue to be important components
of our business strategy. However, they may not be successful, or may not be as successful as the efforts of our competitors, which could
negatively impact sales, guest counts and market share.
We face intense competition in our market,
which could hurt our business.
We compete primarily in the IEO segment, which
is highly competitive. We also face sustained, intense competition from traditional, fast casual and other competitors, which may include
many non-traditional market participants such as convenience stores, grocery stores, coffee shops and online retailers. We expect our
environment to continue to be highly competitive, and our results in any particular reporting period may be impacted by a contracting
IEO segment or by new or continuing actions, product offerings or consolidation of our competitors and third-party partners, which may
have a short- or long-term impact on our results.
We compete on the basis of product choice, quality,
affordability, service and location. In particular, we believe our ability to compete successfully in the current market environment depends
on our ability to improve existing products, successfully develop and introduce new products, price our products appropriately, deliver
a relevant customer experience, manage the complexity of our restaurant operations, manage our investments in technology and modernization,
and respond effectively to our competitors' actions or offerings or to unforeseen disruptive actions. There can be no assurance
these strategies will be effective, and some strategies may be effective at improving some metrics while adversely affecting other metrics,
which could have the overall effect of harming our business.
Food safety
and foodborne illness concerns may have an adverse effect on our reputation and business.
Foodborne illnesses, such as E. coli, hepatitis
A and salmonella, may occur within our system from time to time. In addition, food safety issues such as food tampering, contamination
and adulteration occur or may occur within our system from time to time. Any report or publicity linking us, our competitors, our restaurant,
to instances of foodborne illness or food safety issues could adversely affect our brand and reputation as well as our revenues and profits
and possibly lead to product liability claims, litigation and damages. If a customer of our restaurant becomes ill from foodborne illnesses
or as a result of food safety issues, it may be temporarily closed, which would decrease our revenues.
8
Risks Related to Doing Business in China
Because of our corporate structure, we as well
as the investors are subject to unique risks due to uncertainty of the interpretation and the application of the PRC laws and regulations,
including but not limited to limitation regulatory review of overseas listing of PRC companies through a special purpose vehicle. We are
also subject to the risks of uncertainty about any future actions of the PRC government in this regard. We may also be subject to sanctions
imposed by PRC regulatory agencies including Chinese Securities Regulatory Commission ("CSRC") if we fail to comply with their
rules and regulations. Adverse changes in political, economic and other policies of the Chinese government could have a material adverse
effect on the overall economic growth of China, which could materially and adversely affect the growth of our business and our competitive
position.
Our PRC subsidiaries are located in China. Accordingly,
our business, financial condition, results of operations and prospects are affected significantly by economic, political and legal developments
in China. China's economy differs from the economies of most developed countries in many respects, including with respect to the
amount of government involvement, level of development, growth rate, control of foreign exchange, and allocation of resources. The PRC
government exercises significant control over China's economic growth through strategical allocation of resources, controlling the
payment of foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries
or companies. While the Chinese economy has experienced significant growth in the past decades, growth has been uneven, both geographically
and among various sectors of the economy. The growth of the Chinese economy may not continue at a rate experienced in the past, and the
impact of COVID-19 on the Chinese economy may continue. Any prolonged slowdown in the Chinese economy may reduce the demand for our services
and materially and adversely affect our business and results of operations. Furthermore, any adverse change in the economic conditions
in China, in policies of the PRC government or in laws and regulations in China could have a material adverse effect on the overall economic
growth of China and market demand for our products and services. Such developments could adversely affect our businesses, lead to reduction
in demand for our products and services and adversely affect our competitive position.
Uncertainties with respect to the PRC legal
system could have a material adverse effect on us.
The PRC legal system is based on written statutes.
Prior court decisions may be cited for reference but have limited precedential value. We conduct some of our business through our PRC
Subsidiaries, and therefore these subsidiaries are generally subject to laws and regulations applicable to foreign investment in China.
However, since these laws and regulations are relatively new and the PRC legal system continues to rapidly evolve, the interpretations
of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involves uncertainties,
which may limit legal protections available to us. Recently, the General Office of the Central Committee of the Communist Party of China
and the General Office of the State Council jointly issued the "Opinions on Severely Cracking Down on Illegal Securities Activities
According to Law," or the Opinions, which was made available to the public on July 6, 2021. The Opinions emphasized the need to
strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas listings by
Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems will be taken to deal with the
risks and incidents of China-concept overseas listed companies, and cybersecurity and data privacy protection requirements, etc. The Opinions
and any related implementing rules to be enacted may subject us to compliance requirement in the future. In addition, some regulatory
requirements issued by certain PRC government authorities may not be consistently applied by other government authorities (including local
government authorities), thus making strict compliance with all regulatory requirements impractical, or in some circumstances impossible.
For example, we may have to resort to administrative and court proceedings to enforce the legal protection that we enjoy either by law
or contract. However, since PRC administrative and court authorities have discretion in interpreting and implementing statutory and contractual
terms, it may be more difficult to predict the outcome of administrative and court proceedings and the level of legal protection we enjoy
than in more developed legal systems. These uncertainties may impede our ability to enforce the contracts we have entered into with our
business partners, customers and suppliers. In addition, such uncertainties, including any inability to enforce our contracts, together
with any development or interpretation of PRC law that is adverse to us, could materially and adversely affect our business and operations.
Furthermore, intellectual property rights and confidentiality protections in China may not be as effective as in the United States or
other more developed countries. We cannot predict the effect of future developments in the PRC legal system, including the promulgation
of new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national
laws. These uncertainties could limit the legal protections available to us and other foreign investors, including you. In addition, any
litigation in China may be protracted and result in substantial costs and diversion of our resources and management attention.
9
The Chinese government exerts substantial influence
over the manner in which we must conduct our business activities and may intervene or influence our operations at any time, which could
result in a material change in our operations and the value of our Common Shares.
The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to securities regulation, data protection,
cybersecurity and mergers and acquisitions and other matters. The central or local governments of these jurisdictions may impose new,
stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to
ensure our compliance with such regulations or interpretations.
Government actions in the future could significantly
affect economic conditions in China or particular regions thereof and could require us to materially change our operating activities or
divest ourselves of any interests we hold in Chinese assets. Our business may be subject to various government and regulatory interference
in the provinces in which we operate. We may incur increased costs necessary to comply with existing and newly adopted laws and regulations
or penalties for any failure to comply. Our operations could be adversely affected, directly or indirectly, by existing or future laws
and regulations relating to our business or industry.
Given recent statements by the Chinese government
indicating an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based
issuers, any such action could significantly limit or completely hinder our ability to offer or continue to offer securities to investors
and cause the value of such securities to significantly decline or become worthless.
Recently, the General Office of the Central Committee
of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severely Cracking Down on Illegal
Securities Activities According to Law, or the Opinions, which was made available to the public on July 6, 2021. The Opinions emphasized
the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas
listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems, will be taken to
deal with the risks and incidents of China-concept overseas listed companies. As of the date of this annual report, we have not received
any inquiry, notice, warning, or sanctions from PRC government authorities in connection with the Opinions.
On June 10, 2021, the Standing Committee of the
National People's Congress of China, or the SCNPC, promulgated the PRC Data Security Law, which took effect in September 2021. The
PRC Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data activities, and introduces
a data classification and hierarchical protection system based on the importance of data in economic and social development, and the degree
of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when
such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC Data Security Law also provides for a national security
review procedure for data activities that may affect national security and imposes export restrictions on certain data an information.
10
In early July 2021, regulatory authorities in
China launched cybersecurity investigations with regard to several China-based companies that are listed in the United States. The Chinese
cybersecurity regulator announced on July 2 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered
that the company's app be removed from smartphone app stores. On July 5, 2021, the Chinese cybersecurity regulator launched the
same investigation on two other Internet platforms, China's Full Truck Alliance of Full Truck Alliance Co. Ltd. (NYSE: YMM) and
Boss of KANZHUN LIMITED (Nasdaq: BZ). On July 24, 2021, the General Office of the Communist Party of China Central Committee and the General
Office of the State Council jointly released the Guidelines for Further Easing the Burden of Excessive Homework and Off-campus Tutoring
for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions, franchise
development, and variable interest entities are banned from this sector.
On November 14, 2021, the Cyberspace Administration
of China ("CAC") released the Regulations on the Network Data Security Management (Draft for Comments), or the Data Security
Management Regulations Draft, to solicit public opinion and comments. Pursuant to the Data Security Management Regulations Draft, data
processor holding more than one million users/users' individual information shall be subject to cybersecurity review before listing
abroad. Data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision, disclosure,
or deletion of data. According to the latest amended Cybersecurity Review Measures, which was promulgated on December 28, 2021, and became
effective on February 15, 2022 and replace the Cybersecurity Review Measures promulgated on April 13, 2020, an online platform operator
holding more than one million users/users' individual information shall be subject to cybersecurity review before listing abroad.
Since the Cybersecurity Review Measures is new, the implementation and interpretation thereof is not yet clear. As of the date of this
annual report, we have not been informed by any PRC governmental authority of any requirement that we file for approval
.
On August 17, 2021, the State Council promulgated
the Regulations on the Protection of the Security of Critical Information Infrastructure, or the Regulations, which took effect on September
1, 2021. The Regulations supplement and specify the provisions on the security of critical information infrastructure as stated in the
Cybersecurity Review Measures. The Regulations provide, among others, that protection department of certain industry or sector shall notify
the operator of the critical information infrastructure in time after the identification of certain critical information infrastructure.
On August 20, 2021, the SCNPC promulgated the
Personal Information Protection Law of the PRC, or the Personal Information Protection Law, which took effect in November 2021. As the
first systematic and comprehensive law specifically for the protection of personal information in the PRC, the Personal Information Protection
Law provides, among others, that (i) an individual's consent shall be obtained to use sensitive personal information, such as biometric
characteristics and individual location tracking, (ii) personal information operators using sensitive personal information shall notify
individuals of the necessity of such use and impact on the individual's rights, and (iii) where personal information operators reject
an individual's request to exercise his or her rights, the individual may file a lawsuit with a People's Court. Given that
the above mentioned newly promulgated laws, regulations and policies were recently promulgated or issued, and have not yet taken effect
(as applicable), their interpretation, application and enforcement are subject to substantial uncertainties.
Draft rules for China-based companies seeking
for securities offerings in foreign stock markets was released by the CSRC for public consultation. While such rules have not yet come
into effect, the Chinese government may exert more oversight and control over overseas public offerings conducted by China-based issuers,
which could significantly limit or completely hinder our ability to offer or continue to offer our Common Shares to investors and could
cause the value of our Common Shares to significantly decline or become worthless.
On December 24, 2021, the CSRC and relevant departments
of the State Council published the Draft Rules Regarding Overseas Listings, which aim to regulate overseas securities offerings and listings
by China-based companies, are available for public consultation. The Draft Rules Regarding Overseas Listing aim to lay out the filing
regulation arrangement for both direct and indirect overseas listing and clarify the determination criteria for indirect overseas listing
in overseas markers.
11
The Draft Rules Regarding Overseas Listing, among
other things, stipulate that, after making initial applications with overseas stock markets for initial public offerings or listings,
all China-based companies shall file with the CSRC within three working days. The required filing materials with the CSRC include (without
limitation): (i) record-filing reports and related undertakings, (ii) compliance certificates, filing or approval documents from the primary
regulator of the applicants' businesses (if applicable), (iii) security assessment opinions issued by related departments (if applicable),
(iv) PRC legal opinions, and (v) prospectus. In addition, overseas offerings and listings may be prohibited for such China-based companies
when any of the following applies: (1) if the intended securities offerings and listings are specifically prohibited by the laws, regulations
or provision of the PRC; (2) if the intended securities offerings and listings may constitute a threat to, or endanger national security
as reviewed and determined by competent authorities under the State Council in accordance with laws; (3) if there are material ownership
disputes over applicants' equity interests, major assets, core technologies, etc.; (4) if, in the past three years, applicants'
domestic enterprises, controlling shareholders or de facto controllers have committed corruption, bribery, embezzlement, misappropriation
of property, or other criminal offenses disruptive to the order of the socialist market economy, or are currently under judicial investigation
for suspicion of criminal offenses, or are under investigation for suspicion of major violations; (5) if, in the past three years, any
directors, supervisors, or senior executives of applicants have been subject to administrative punishments for severe violations, or are
currently under judicial investigation for suspicion of criminal offenses, or are under investigation for suspicion of major violations;
(6) other circumstances as prescribed by the State Council. The Draft Administrative Provisions further stipulate that a fine between
RMB 1 million and RMB 10 million may be imposed if an applicant fails to fulfill the filing requirements with the CSRC or conducts an
overseas offering or listing in violation of the Draft Rules Regarding Overseas Listings, and in cases of severe violations, a parallel
order to suspend relevant businesses or halt operations for rectification may be issued, and relevant business permits or operational
license revoked.
The Draft Rules Regarding Overseas Listings, if
enacted, may subject us to additional compliance requirements in the future, and though we believe that none of the situations that would
clearly prohibit overseas listing and offering applies to us, we cannot assure you that we will be able to receive clearance of such filing
requirements in a timely manner, or at all. There is also the possibility that we may not be able to obtain or maintain such approval
or that we inadvertently concluded that such approval was not required. If prior CSRC approval was required while we inadvertently concluded
that such approval was not required or if applicable laws and regulations or the interpretation of such were modified to require us to
obtain the CSRC approval in the future, we may face regulatory actions or other sanctions from the CSRC or other Chinese regulatory authorities.
These authorities may impose fines and penalties upon our operations in China, limit our operating privileges in China, delay or restrict
the repatriation of the proceeds from offerings into China, or take other actions that could have a material adverse effect upon our business,
financial condition, results of operations, reputation and prospects, as well as the trading price of our Common Shares. Any failure of
us to fully comply with new regulatory requirements may significantly limit or completely hinder our ability to offer or continue to offer
the Common Shares, cause significant disruption to our business operations, severely damage our reputation, materially and adversely affect
our financial condition and results of operations, and cause the Common Shares to significantly decline in value or become worthless.
CSRC and other Chinese government agencies
may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, especially
those in the technology field. Additional compliance procedures may be required in connection offerings, and, if required, we cannot predict
whether we will be able to obtain such approval. If we are required to obtain PRC governmental permissions to commence the sale of securities,
we will not commence offerings until we obtain such permissions. As a result, we face uncertainty about future actions by the PRC government
that could significantly affect our ability to offer or continue to offer securities to investors and cause the value of our securities
to significantly decline or be worthless.
On July 6, 2021, the General Office of the Communist
Party of China Central Committee and the General Office of the State Council jointly issued a document to crack down on illegal activities
in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant
governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over
China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws.
Since this document is relatively new, uncertainties still exist in relation to how soon legislative or administrative regulation making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated,
if any, and the potential impact such modified or new laws and regulations will have on our future business, results of operations, and
the value of our securities.
12
Further, Chinese government continues to exert
more oversight and control over Chinese technology firms. On July 2, 2021, Chinese cybersecurity regulator announced, that it had begun
an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company's application be removed from smartphone
application stores. On July 5, 2021, the Chinese cybersecurity regulator launched the same investigation on two other Internet platforms,
China's Full Truck Alliance of Full Truck Alliance Co. Ltd. (NYSE: YMM) and Boss of KANZHUN LIMITED (Nasdaq: BZ).
Therefore, CSRC and other Chinese government agencies
may exert more oversight and control over offerings that are conducted overseas and foreign investment in China-based issuers, especially
those in the technology field. As of the date of this annual report, we have not received any requirement to obtain approval of CSRC to
list on U.S. exchanges. Further, however, given the current regulatory environment in the PRC, we and our PRC subsidiaries are still subject
to the uncertainty of interpretation and enforcement of the rules and regulations in the PRC, which can change quickly with little advance
notice, and any future actions of the PRC authorities, additional compliance procedures may be required in connection with this offering
and our business operations. As a result, we face uncertainty about future actions by the PRC government that could significantly affect
our ability to offer or continue to offer securities to investors and cause the value of our Common Shares to significantly decline or
be worthless.
We or our PRC subsidiaries may be subject to PRC
laws relating to the use, sharing, retention, security and transfer of confidential and private information, such as personal information
and other data. These laws continue to develop, and the PRC government may adopt other rules and restrictions in the future. Non-compliance
could result in penalties or other significant legal liabilities.
The Cybersecurity Law, which was adopted by the
National People's Congress on November 7, 2016 and came into force on June 1, 2017, and the Cybersecurity Review Measures, or the
"Review Measures," which were promulgated on April 13, 2020, amended on December 28, 2021 and became effective on February
15, 2022, provide that personal information and important data collected and generated by a critical information infrastructure operator
in the course of its operations in China must be stored in China, and if a critical information infrastructure operator purchases internet
products and services that affect or may affect national security, it should be subject to cybersecurity review by the CAC. In addition,
a cybersecurity review is required where critical information infrastructure operators, or the "CIIOs," purchase network-related
products and services, which products and services affect or may affect national security. Due to the lack of further interpretations,
the exact scope of what constitute a "CIIO" remains unclear. Further, the PRC government authorities may have wide discretion
in the interpretation and enforcement of these laws. In addition, Review Measures stipulates that an online platform operator holding
more than one million users/users' individual information shall be subject to cybersecurity review before listing abroad. Cybersecurity
Review Measures does not provide a definition of "online platform operator", therefore, we cannot assure you that we will
not be deemed as an "online platform operator". As of the date of this annual report, we or our PRC subsidiaries have not
received any notice from any authorities identifying us as a CIIO or requiring us to undertake a cybersecurity review by the CAC. Further,
as of the date of this annual report, we or our PRC subsidiaries have not been subject to any penalties, fines, suspensions, investigations
from any competent authorities for violation of the regulations or policies that have been issued by the CAC. On June 10, 2021, the Standing
Committee of the National People's Congress promulgated the Data Security Law which took effect on September 1, 2021. The Data Security
Law requires that data shall not be collected by theft or other illegal means, and it also provides that a data classification and hierarchical
protection system shall be established. The data classification and hierarchical protection system protects data according to its importance
in economic and social development, and the damages it may cause to national security, public interests, or the legitimate rights and
interests of individuals and organizations if the data is falsified, damaged, disclosed, illegally obtained or illegally used, which protection
system is expected to be built by the state for data security in the near future. On November 14, 2021, CAC published the Regulations
on the Network Data Security Management (Draft for Comments), or the Data Security Management Regulations Draft to solicit public opinion
and comments. Under the Data Security Management Regulations Draft, which provides that an overseas initial public offering to be conducted
by a data processor processing the personal information of more than one million individuals shall apply for a cybersecurity review. Data
processor means an individual or organization that independently makes decisions on the purpose and manner of processing in data processing
activities, and data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision,
disclosure, or deletion of data. We may be deemed as a data processor under the Data Security Management Regulations Draft. However, the
Data Security Management Regulations Draft has not been formally adopted. It is uncertain when the final regulation will be issued and
take effect, how it will be enacted, interpreted or implemented, and whether it will affect us. There remains uncertainty as to how the
Review Measures and the Data Security Management Regulations Draft will be interpreted or implemented and whether the PRC regulatory agencies,
including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Review Measures
and the Data Security Regulations Draft. If any such new laws, regulations, rules, or implementation and interpretation come into effect,
we and our PRC subsidiaries expect to take all reasonable measures and actions to comply. We cannot assure you that PRC regulatory agencies,
including the CAC, would take the same view as we do, and there is no assurance that we and our PRC subsidiaries can fully or timely comply
with such laws should they be deemed applicable to our operations. Any cybersecurity review could also result in negative publicity with
respect to our company and diversion of our managerial and financial resources. There is no certainty as to how such review or prescribed
actions would impact our operations and we cannot guarantee that any clearance can be obtained or any actions that may be required for
our continued listing on the Nasdaq capital market and the offering as well can be taken in a timely manner, or at all.
13
In addition, according to the Personal Information
Protection Law, where the purpose of the activity is to provide a product or service to that natural person located within China, such
activity shall comply with the Personal Information Protection Law. Further, the Data Security Law provides that where any data handling
activity carried out outside of the territory of China harms the national security, public interests, or the legitimate rights and interests
of citizens or organizations of China, legal liability shall be investigated in accordance with such law. However, the Personal Information
Protection Law and the Data Security Law are relatively new, there remains uncertainty as to how the laws will be interpreted or implemented
and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation
related to the two laws.
The regulatory requirements with respect to cybersecurity
and data privacy are constantly evolving and can be subject to varying interpretations, and significant changes, resulting in uncertainties
about the scope of our responsibilities in that regard. Failure to comply with the cybersecurity and data privacy requirements in a timely
manner, or at all, may subject us to government enforcement actions and investigations, fines, penalties, suspension, or disruption of
our PRC subsidiaries' operations, among other things.
We may be liable for improper use or appropriation
of personal information provided by our customers.
Our business can potentially involve collecting
and retaining certain internal and customer data. We also maintain information about various aspects of our operations as well as regarding
our employees. The integrity and protection of our customer, employee and company data is critical to our business. Our customers and
employees expect that we will adequately protect their personal information. We are required by applicable laws to keep strictly confidential
the personal information that we collect, and to take adequate security measures to safeguard such information.
The PRC Criminal Law, as amended by its Amendment
7 (effective on February 28, 2009) and Amendment 9 (effective on November 1, 2015), prohibits institutions, companies, and their employees
from selling or otherwise illegally disclosing a citizen's personal information obtained in performing duties or providing services
or obtaining such information through theft or other illegal ways. On November 7, 2016, the SCNPC issued the Cyber Security Law of the
PRC, or Cyber Security Law, which became effective on June 1, 2017. Pursuant to the Cyber Security Law, network operators must not, without
users' consent, collect their personal information, and may only collect users' personal information necessary to provide
their services. Providers are also obliged to provide security maintenance for their products and services and shall comply with provisions
regarding the protection of personal information as stipulated under the relevant laws and regulations.
The Civil Code of the PRC (issued by the PRC National
People's Congress on May 28, 2020 and effective from January 1, 2021) provides legal basis for privacy and personal information
infringement claims under the Chinese civil laws. PRC regulators, including the CAC, the Ministry of Industry and Information Technology,
or MIIT, and the Ministry of Public Security, have been increasingly focused on regulation in data security and data protection.
The PRC regulatory requirements regarding cybersecurity
are evolving. For instance, various regulatory bodies in China, including the CAC, the Ministry of Public Security and the State Administration
for Market Regulation, or the SAMR (formerly known as State Administration for Industry and Commerce, or the SAIC), have enforced data
privacy and protection laws and regulations with varying and evolving standards and interpretations. In April 2020, the Chinese government
promulgated Cybersecurity Review Measures, which came into effect on June 1, 2020, was amended on December 28, 2021, and became effective
on February 15, 2022. According to the Cybersecurity Review Measures, (i) operators of critical information infrastructure must pass a
cybersecurity review when purchasing network products and services which do or may affect national security; (ii) online platform operators
who are engaged in data processing are also subject to the regulatory scope; (iii) the CSRC is included as one of the regulatory authorities
for purposes of jointly establishing the state cybersecurity review working mechanism; (iv) online platform operators holding more than
one million users/users' individual information and seeking a listing outside China shall file for cybersecurity review; and (v)
the risks of core data, material data or large amounts of personal information being stolen, leaked, destroyed, damaged, illegally used
or illegally transmitted to overseas parties and the risks of critical information infrastructure, core data, material data or large amounts
of personal information being influenced, controlled or used maliciously shall be collectively taken into consideration during the cybersecurity
review process.
Certain internet platforms in China have been
reportedly subject to heightened regulatory scrutiny in relation to cybersecurity matters. As of the date of this prospectus supplement,
we and our PRC subsidiaries have not been informed by any PRC governmental authority of any requirement that we file for a cybersecurity
review. However, if any of us is deemed to be a critical information infrastructure operator or a company that is engaged in data processing
and holds personal information of more than one million users, we could be subject to PRC cybersecurity review.
14
As of the date hereof, we are of the view that
we and our PRC subsidiaries are in compliance with the applicable PRC laws and regulations governing the data privacy and personal information
in all material respects, including the data privacy and personal information requirements of the CAC, and we and our PRC subsidiaries
have not received any complaints from any third party, or been investigated or punished by any PRC competent authority in relation to
data privacy and personal information protection. However, as there remains significant uncertainty in the interpretation and enforcement
of relevant PRC cybersecurity laws and regulations, we or our PRC subsidiaries could be subject to cybersecurity review, and if so, we
may not be able to pass such review. In addition, we or our PRC subsidiaries could become subject to enhanced cybersecurity review or
investigations launched by PRC regulators in the future. Any failure or delay in the completion of the cybersecurity review procedures
or any other non-compliance with the related laws and regulations may result in fines or other penalties, including suspension of business,
website closure, removal of our app from the relevant app stores, and revocation of prerequisite licenses, as well as reputational damage
or legal proceedings or actions against us, which may have material adverse effect on our business, financial condition or results of
operations.
On June 10, 2021, the SCNPC promulgated the PRC
Data Security Law, which took effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities
and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance
of data in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate
rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The
PRC Data Security Law also provides for a national security review procedure for data activities that may affect national security and
imposes export restrictions on certain data an information.
As uncertainties remain regarding the interpretation
and implementation of these laws and regulations, we cannot assure you that we and our PRC subsidiaries will comply with such regulations
in all respects and we or our PRC subsidiaries may be ordered to rectify or terminate any actions that are deemed illegal by regulatory
authorities. We or our PRC subsidiaries may also become subject to fines and/or other sanctions which may have material adverse effect
on our business, operations and financial condition.
While we and our PRC subsidiaries take various
measures to comply with all applicable data privacy and protection laws and regulations, the current security measures and those of our
third-party service providers may not always be adequate for the protection of our customer, employee or company data. We or our PRC subsidiaries
may be a target for computer hackers, foreign governments or cyber terrorists in the future.
Unauthorized access to our proprietary internal
and customer data may be obtained through break-ins, sabotage, breach of our secure network by an unauthorized party, computer viruses,
computer denial-of-service attacks, employee theft or misuse, breach of the security of the networks of our third-party service providers,
or other misconduct. Because the techniques used by computer programmers who may attempt to penetrate and sabotage our proprietary internal
and customer data change frequently and may not be recognized until launched against a target, we may be unable to anticipate these techniques.
Unauthorized access to our proprietary internal
and customer data may also be obtained through inadequate use of security controls. Any of such incidents may harm our reputation and
adversely affect our business and results of operations. In addition, we may be subject to negative publicity about our security and privacy
policies, systems, or measurements. Any failure to prevent or mitigate security breaches, cyber-attacks or other unauthorized access to
our systems or disclosure of our customers' data, including their personal information, could result in loss or misuse of such data,
interruptions to our service system, diminished customer experience, loss of customer confidence and trust, impairment of our technology
infrastructure, and harm our reputation and business, resulting in significant legal and financial exposure and potential lawsuits
.
Since our operations and some of our assets
are located in the PRC, shareholders may find it difficult to enforce a U.S. judgment against the assets of our company, our directors
and executive officers.
Our operations and some assets are located in
the PRC. In addition, most of our executive officers and directors are non-residents of the U.S., and substantially all the assets of
such persons are located outside the U.S. As a result, it could be difficult for investors to effect service of process in the U.S., or
to enforce a judgment obtained in the U.S. against us or any of these persons.
15
We may be subject to PRC regulatory limitations
on merger and acquisition (M&A) activities.
Foreign enterprises that engage in M&A activities
inside and outside China are subject to different regulatory limitations under Chinese laws and regulations. The key regulations governing
such activities within PRC are Wholly Foreign-Owned Enterprise Law, the Interim Provisions on the Domestic Investment of Foreign-Funded
Enterprise, the Catalogue for the Guidance of Foreign Investment Industries (amended in 2017) and other relevant Chinese laws and regulations.
Under these laws and regulations, conducting M&A in China requires that Tiandihui and Qingdao Tiandihui Pet Foodstuffs Co., Ltd are
wholly foreign-owned enterprises "WFOE" be profitable, and a timely application with and approval by of local regulatory agencies
of any proposed M&A transaction. The M&A activities outside the PRC are governed by several rules and regulations, including PRC
Administrative Measures on Offshore Investment, the Regulation on Foreign Exchange Administration of the PRC, the Notice of the State
Administration of Foreign Exchange on Issuing the Provisions on the Foreign Exchange Administration of the Overseas Direct Investment
of Domestic Institutions, the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Resident's Financing and
Round-trip Investment Through Offshore Special Purpose Vehicles. Under these laws and regulations, our WFOE must get approval from the
PRC Ministry of Commerce or its branch offices for any proposed offshore M&A transaction, and complete its foreign exchange registration.
We cannot offer any assurance that in the event we seek such approvals or registrations we will be able to secure them in a timely fashion
or will be able to receive them at all; negative feedback from the regulatory agencies or our failure to register such proposed transactions
may have material adverse impact on our business expansion and could materially affect our business operation and finance condition. In
addition, since approval and/or registration procedures required time to complete, these processes may cause additional delays to our
onshore or offshore M&A projects, which, in turn, may have adverse impact on our business and operations.
Fluctuation of the Renminbi may indirectly
affect our financial condition by affecting the volume of cross-border money flow.
The value of the RMB fluctuates and is subject
to changes in the PRC's political and economic conditions. We do not currently engage in hedging activities to protect against foreign
currency risks. Even if we choose to engage in such hedging activities, we may not be able to do so effectively. Future movements in the
exchange rate of the RMB could adversely affect our financial condition as we may suffer financial losses when transferring money raised
outside of China into the country or paying vendors for services performed outside of China. The value of the Renminbi against the U.S.
dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions. On July
21, 2005, the PRC government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar. Under the new policy,
the Renminbi is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. This change in
policy has resulted in an appreciation of the Renminbi against the U.S. dollar. While the international reaction to the Renminbi revaluation
has generally been positive, there remains international pressure on the PRC government to adopt an even more flexible currency policy,
which could result in a further and more rapid appreciation of the Renminbi against the U.S. dollar. Any material revaluation of Renminbi
may materially and adversely affect our cash flows, revenues, earnings and financial position, and the value of, and any dividends payable
on, our common shares in U.S. dollars. For example, an appreciation of Renminbi against the U.S. dollar would make any new Renminbi denominated
investments or expenditures more costly to us, to the extent that we need to convert U.S. dollars into Renminbi for such purposes.
If any dividend is declared in the future and
paid in a foreign currency, you may be taxed on a larger amount in U.S. dollars than the U.S. dollar amount that you will actually ultimately
receive.
If you are a United States holder, you will be
taxed on the U.S. dollar value of your dividends, if any, at the time you receive them, even if you actually receive a smaller amount
of U.S. dollars when the payment is in fact converted into U.S. dollars. Specifically, if a dividend is declared and paid in a foreign
currency, the amount of the dividend distribution that you must include in your income as a U.S. holder will be the U.S. dollar value
of the payments made in the foreign currency, determined at the spot rate of the foreign currency to the U.S. dollar on the date the dividend
distribution is includible in your income, regardless of whether the payment is in fact converted into U.S. dollars. Thus, if the value
of the foreign currency decreases before you actually convert the currency into U.S. dollars, you will be taxed on a larger amount in
U.S. dollars than the U.S. dollar amount that you will actually ultimately receive.
16
We may become a passive foreign investment
company, which could result in adverse U.S. tax consequences to U.S. investors.
Based on the nature of our business activities,
we may be classified as a passive foreign investment company ("PFIC"), by the U.S. Internal Revenue Service ("IRS"),
for U.S. federal income tax purposes. Such characterization could result in adverse U.S. tax consequences to you if you are a U.S. investor.
For example, if we are a PFIC, a U.S. investor will become subject to burdensome reporting requirements. The determination of whether
or not we are a PFIC is made on an annual basis and will depend on the composition of our income and assets from time to time. Specifically,
we will be classified as a PFIC for U.S. tax purposes if either:
●
75% or more of our gross income in a taxable year is passive income; or
●
the average percentage of our assets by value in a taxable year that produce or are held for the production of passive income (which includes cash) is at least 50%.
The calculation of the value of our assets is
based, in part, on the then market value of our common shares, which is subject to change. We cannot assure that we will not be a PFIC
for any taxable year.
Introduction of new laws or changes to existing
laws by the PRC government may adversely affect our business.
The PRC legal system is a codified legal system
made up of written laws, regulations, circulars, administrative directives and internal guidelines. Unlike common law jurisdictions such
as the U.S., decided cases (which may be taken as reference) do not form part of the legal structure of the PRC and thus have no binding
effect. Furthermore, in line with its transformation from a centrally planned economy to a more market-oriented economy, the PRC government
is still in the process of developing a comprehensive set of laws and regulations. As the legal system in the PRC is still evolving, laws
and regulations or their interpretation may be subject to further changes. Such uncertainty and prospective changes to the PRC legal system
could adversely affect our results of operations and financial condition.
Governmental control of currency conversion
may affect the value of your investment.
The PRC government imposes controls on the convertibility
of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of the PRC, which may take as long as six
months in the ordinary course. We receive the majority of our revenues in Renminbi. Under our current corporate structure, our income
is derived from payments from WFOE. The October 8, 2016 Provisional Measures for Filling Administration of Establishment and Changes of
Foreign-Investment Enterprise (the "Establishment and Changes Provision") promulgated by the PRC Ministry of Commerce and
was amended on July 30, 2017, regulates the recordation procedures with respect to the establishment and changes of a foreign-invested
enterprise which do not fall within the scope of special administration measures for foreign investment admission as stipulated by the
state; for those entities that do fall within the regulatory reach of special administration measures must go through approval procedures
according to relevant laws and regulations governing foreign investment. We do not believe that such measures will have any impact on
our income derived from payment from our WFOE because:
●
We do not fall within the scope of special access administrative measures for foreign investment admission as stipulated by the state, and therefore are not required to go through approval procedures.
17
●
The Establishment and Changes Provision regulates the recordation procedures relating to the establishment and changes of a foreign-invested enterprise, which including but not limited to: (i) the changes of company name, registered address, duration of operation, business scope, registered capital, total investment, shareholders, merger, division and termination of the enterprise; and (ii) the corporate name change, domicile or place of incorporation, subscribed capital, investment period. Based on the foregoing and our current corporate structure, our income is derived from payment from our WFOE, but the Establishment and Changes Provisions do not regulate our origin of income or dividend policy, and therefore will not have any impact on our dividend distribution.
Shortages in the availability of foreign currency
may restrict the ability of WFOE to remit sufficient foreign currency to pay dividends or other payments to us, or otherwise satisfy their
foreign currency denominated obligations. Under existing PRC foreign exchange regulations, payments of current account items, including
profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior
approval from the PRC SAFE by complying with certain procedural requirements. However, approval from appropriate PRC government authorities
is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment
of bank loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign
currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currency
to satisfy our currency demands, we may not be able to pay dividends in foreign currencies to our shareholders.
PRC's labor law restricts our ability
to reduce our workforce in the PRC in the event of an economic downturn and may increase our production costs.
In June 2007, the National People's Congress
of the PRC enacted new labor law legislation called the Labor Contract Law, which became effective on January 1, 2008 and was amended
on December 28, 2012, to clarify certain details in connection with the implementation of the Labor Contract Law, the PRC State Council
promulgated the Implementing Rules for the Labor Contract Law on September 18, 2008, which came into effect immediately (collectively
as "new laws"). The legislation formalized workers' rights concerning overtime hours, pensions, layoffs, employment
contracts and the role of trade unions. Considered one of the strictest labor laws in the world, among other things, these new laws provide
for specific standards and procedures for the termination of an employment contract and places the burden of proof on the employer. In
addition, the new laws require the payment of a statutory severance pay upon the termination of an employment contract in most cases,
including the case of the expiration of a fixed-term employment contract. Further, the new laws require an employer to conclude an "employment
contract without a fixed-term" with any employee who either has worked for the same employer for 10 consecutive years or more or
has had two consecutive fixed-term contracts with the same employer. An "employment contract without a fixed term" can no
longer be terminated on the ground of the expiration of the contract, although it can still be terminated pursuant to the standards and
procedures set forth under the new laws. Because of the lack of precedent for the enforcement of such a law, the standards and procedures
set forth under the new laws in relation to the termination of an employment contract have raised concerns among foreign investment enterprises
in the PRC that such an "employment contract without a fixed term" might in fact become a "lifetime, permanent employment
contract." Finally, under the new laws, downsizing of either more than 20 people or more than 10% of the workforce may occur only
under specified circumstances, such as a restructuring undertaken pursuant to the PRC's Enterprise Bankruptcy Law, or where a company
suffers serious difficulties in production and/or business operations, or where there has been a material change in the objective economic
circumstances relied upon by the parties at the time of the conclusion of the employment contract, thereby making the performance of such
employment contract not possible. To date, there has been very little guidance or precedent as to how such specified circumstances for
downsizing will be interpreted and enforced by the relevant PRC authorities. All of our employees working for us exclusively within the
PRC are covered by the new laws and thus, our ability to adjust the size of our operations when necessary in periods of recession or less
severe economic downturns may be curtailed. Accordingly, if we face future periods of decline in business activity generally or adverse
economic periods specific to our business, these new laws can be expected to exacerbate the adverse effect of the economic environment
on our results of operations and financial condition.
18
Changes in PRC's political and economic
policies could harm our business.
Our results of operations, financial condition
and prospects are subject to economic, political and legal developments in the PRC. China's economy differs from the economies of
most developed countries in many respects, including with respect to the amount of government involvement, level of development, growth
rate, and control of foreign exchange and allocation of resources. The PRC economy has historically been a planned economy subject to
governmental plans and quotas and has, in certain aspects, been transitioning to a more market-oriented economy. Although we believe that
the economic reform and the macroeconomic measures adopted by the PRC government have had a positive effect on the economic development
of PRC, we cannot predict the future direction of these economic reforms or the effects these measures may have on our business, financial
position or results of operations. In addition, the PRC economy differs from the economies of most countries belonging to the Organization
for Economic Cooperation and Development ("OECD"). These differences include, without limitation:
●
economic structure;
●
level of government involvement in the economy;
●
level of development;
●
level of capital reinvestment;
●
control of foreign exchange;
●
methods of allocating resources; and
●
balance of payments position.
As a result of these differences, our business
may not develop in the same way or at the same rate as might be expected if the PRC economy were similar to those of the OECD member countries.
Since 1979, the Chinese government has promulgated many new laws and regulations covering general economic matters. Despite these efforts
to develop a legal system, the PRC's system of laws is not yet complete. Even where adequate law exists in the PRC, enforcement
of existing laws or contracts based on existing law may be uncertain or sporadic, and it may be difficult to obtain swift and equitable
enforcement or to obtain enforcement of a judgment by a court of another jurisdiction. The relative inexperience of the PRC's judiciary,
in many cases, creates additional uncertainty as to the outcome of any lawsuit. In addition, interpretation of statutes and regulations
may be subject to government policies reflecting domestic political changes. Our activities in the PRC will also be subject to administration
review and approval by various national and local agencies of the PRC's government. Because of the changes occurring in the PRC's
legal and regulatory structure, we may not be able to secure the requisite governmental approval for our activities. Although we have
obtained all required governmental approvals to operate our business as currently conducted, to the extent we are unable to obtain or
maintain required governmental approvals, the PRC government may, in its sole discretion, prohibit us from conducting our business.
If relations between the United States and
China worsen, our share price may decrease and we may have difficulty accessing U.S. capital markets.
At various times during recent years, the United
States and China have had disagreements over political and economic issues. Controversies may arise in the future between these two countries.
Any political or trade controversy between the United States and China could adversely affect the market price of our common shares and
our ability to access U.S. capital markets.
The Chinese government could change its policies
toward private enterprise or even nationalize or expropriate private enterprises, which could result in the total loss of our investment
in that country.
Our business is subject to political and economic
uncertainties and may be adversely affected by political, economic and social developments in the PRC. Over the past several years, the
PRC government has pursued economic reform policies including the encouragement of private economic activity and greater economic decentralization.
The PRC government may not continue to pursue these policies or may alter them to our detriment from time to time with little, if any,
prior notice. Changes in policies, laws and regulations or in their interpretation or the imposition of confiscatory taxation, restrictions
on currency conversion, restrictions or prohibitions on dividend payments to shareholders, devaluations of currency or the nationalization
or other expropriation of private enterprises could have a material adverse effect on our business. Nationalization or expropriation could
even result in the total loss of our investment in the PRC and in the total loss of any investment in us.
Because our operations are located in the PRC,
information about our operations is not readily available from independent third-party sources.
Our shareholders may have greater difficulty in
obtaining information about them on a timely basis than would shareholders of a U.S.-based company. Their operations will continue to
be conducted in the PRC and shareholders may have difficulty in obtaining information about them from sources other than the companies
themselves. Information available from newspapers, trade journals, or local, regional or national regulatory agencies such as issuance
of construction permits and contract awards for development projects will not be readily available to shareholders and, where available,
will likely be available only in Chinese. Shareholders will be dependent upon management for reports of their progress, development, activities
and expenditure of proceeds.
19
Risks Related to the Ownership of Our Common
Shares
We are a holding company incorporated in the
British Virgin Islands. As a holding company with no material operations of our own, we conduct a substantial majority of our operations
through our subsidiaries.
Investors in our common shares should be aware
that they may never directly hold equity interests in our subsidiaries, but rather purchasing equity solely in TDH Holdings, Inc. our
British Virgin Islands holding company, which does not directly own substantially all of our business in China and the United States and
conducted by our subsidiaries. Our Common shares are shares in TDH Holdings, Inc., a BVI holding company instead of shares of our subsidiaries
in China and the United States. This structure is subject to certain legal and operational risks, including risks associated with our
subsidiaries' operations in China, including changes in the legal, political and economic policies of the Chinese government, the
relations between China and the United States, Chinese or United States regulations, all of which may materially and adversely affect
our business, financial condition and results of operations and/or the value of our Common Shares or could significantly decline or become
worthless.
Recent joint statement by the SEC and PCAOB,
proposed rule changes submitted by Nasdaq, and an act passed by the U.S. Senate all call for additional and more stringent criteria to
be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S. auditors who are not
inspected by the PCAOB. These developments could add uncertainties to our listing.
In May 2013, the PCAOB announced that it had entered
into a Memorandum of Understanding on Enforcement Cooperation with the CSRC, and the PRC Ministry of Finance, which establishes a cooperative
framework between the parties for the production and exchange of audit documents relevant to investigations undertaken by the PCAOB, the
CSRC or the PRC Ministry of Finance in the United States and the PRC, respectively. The PCAOB continues to be in discussions with the
CSRC, and the PRC Ministry of Finance to permit joint inspections in the PRC of audit firms that are registered with PCAOB and audit Chinese
companies that trade on U.S. exchanges.
On December 7, 2018, the SEC and the PCAOB issued
a joint statement highlighting continued challenges faced by the U.S. regulators in their oversight of financial statement audits of U.S.-listed
companies with significant operations in China. The joint statement reflects a heightened interest in an issue that has vexed U.S. regulators
in recent years.
On April 21, 2020, SEC Chairman Jay Clayton and
PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated
with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized
the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in
emerging markets.
On June 4, 2020, the U.S. President issued a memorandum
ordering the President's Working Group on Financial Markets, or the PWG, to submit a report to the President within 60 days of the
memorandum that includes recommendations for actions that can be taken by the executive branch and by the SEC or PCAOB on Chinese companies
listed on U.S. stock exchanges and their audit firms, in an effort to protect investors in the U.S.
On August 6, 2020, the PWG released a report recommending
that the SEC take steps to implement the five recommendations outlined in the report. In particular, to address companies from jurisdictions
that do not provide the PCAOB with sufficient access to fulfill its statutory mandate, or NCJs, the PWG recommends enhanced listing standards
on U.S. stock exchanges. This would require, as a condition to initial and continued exchange listing, PCAOB access to work papers of
the principal audit firm for the audit of the listed company. Companies unable to satisfy this standard as a result of governmental restrictions
on access to audit work papers and practices in NCJs may satisfy this standard by providing a co-audit from an audit firm with comparable
resources and experience where the PCAOB determines it has sufficient access to audit work papers and practices to conduct an appropriate
inspection of the co-audit firm. There is currently no legal process under which such a co-audit may be performed in China. The report
permits the new listing standards to provide for a transition period until January 1, 2022 for listed companies, but would apply immediately
to new listings once the necessary rulemakings and/or standard-setting are effective. The measures in the PWG Report are presumably subject
to the standard SEC rulemaking process before becoming effective. On August 10, 2020, the SEC announced that SEC Chairman had directed
the SEC staff to prepare proposals in response to the PWG Report, and that the SEC was soliciting public comments and information with
respect to these proposals.
20
On March 24, 2021, the SEC announced that it had
adopted interim final amendments to implement congressionally mandated submission and disclosure requirements of the Act. The interim
final amendments will apply to registrants that the SEC identifies as having filed an annual report on Forms 10-K, 20-F, 40-F or N-CSR
with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB has determined
it is unable to inspect or investigate completely because of a position taken by an authority in that jurisdiction. The SEC will implement
a process for identifying such a registrant and any such identified registrant will be required to submit documentation to the SEC establishing
that it is not owned or controlled by a governmental entity in that foreign jurisdiction, and will also require disclosure in the registrant's
annual report regarding the audit arrangements of, and governmental influence on, such a registrant.
Furthermore, the Holding Foreign Companies Accountable
Act ("HFCA Act"), which requires that the PCAOB be permitted to inspect the issuer's public accounting firm within three
years, may result in the delisting of our Company in the future if the PCAOB is unable to inspect our accounting firm at such future time.
In addition, on June 22, 2021, the U.S. Senate
passed the Accelerating Holding Foreign Companies Accountable Act ("AHFCAA"), which, if signed into law, would amend the HFCA
Act and require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject
to PCAOB inspections for two consecutive years instead of three consecutive years.
On November 5, 2021, the SEC approved the PCAOB's
Rule 6100, Board Determinations Under the Holding Foreign Companies Accountable Act. Rule 6100 provides a framework for the PCAOB to use
when determining, as contemplated under the HFCA Act, whether it is unable to inspect or investigate completely registered public accounting
firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. On December 16, 2021,
the PCAOB issued a Determination Report which found that the PCAOB is unable to inspect or investigate completely registered public accounting
firms headquartered in: (1) mainland China, and (2) Hong Kong. The lack of access to the PCAOB inspection in China prevents the PCAOB
from fully evaluating audits and quality control procedures of the auditors based in China. As a result, the investors may be deprived
of the benefits of such PCAOB inspections. The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult
to evaluate the effectiveness of these accounting firms' audit procedures or quality control procedures as compared to auditors
outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors in our stock to lose confidence
in our audit procedures and reported financial information and the quality of our financial statements. Our auditor is headquartered in
California and is not subject to this determination announced by the PCAOB.
On August 26, 2022, the PCAOB signed a
SOP with the CSRC and the MOF of the PRC regarding cooperation in the oversight of PCAOB-registered public accounting firms in the PRC
and Hong Kong which establishes a method for the PCAOB to conduct inspections of PCAOB-registered public accounting firms in the PRC
and Hong Kong, as contemplated by the Sarbanes-Oxley Act. Under the agreement, (a) the PCAOB has sole discretion to select the firms,
audit engagements and potential violations it inspects and investigates without consultation with, or input from, PRC authorities; (b)
procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for
the PCAOB to retain information as needed; (c) the PCAOB has direct access to interview and take testimony from all personnel associated
with the audits the PCAOB inspects or investigates; and (d) the PCAOB shall have the unfettered ability to transfer information to the
SEC in accordance with the Sarbanes-Oxley Act, and the SEC can use the information for all regulatory purposes, including administrative
or civil enforcement actions. The PCAOB was required to reassess its determinations as to whether it is able to carry out inspections
and investigations completely and without obstruction by the end of 2022. On December 15, 2022, the PCAOB determined that the PCAOB was
able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong
Kong and vacated its previous determinations. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's
access in the future, the PCAOB will consider the need to issue a new determination.
Congress passed fiscal year 2023 Omnibus spending
legislation in December 2022, which contained provisions to accelerate the HFCAA timeline for implementation of trading prohibitions from
three years to two years. As a result, the SEC is required to prohibit an issuer's securities from trading on any U.S. stock exchanges
if its auditor is not subject to PCAOB inspections or complete investigations for two consecutive years.
Our auditor, the independent registered public
accounting firm that issues the audit report for the year ended December 31, 2022 included elsewhere in this annual report, as an auditor
of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States
pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor
is headquartered in California and was last inspected by the PCAOB in March 2023. According to our auditor, the PCAOB will conduct regular
inspections. In the event that, in the future, either there is any regulatory change or step taken by PRC regulators that does not permit
YCM CPA Inc. to provide audit documentations located in China or Hong Kong to the PCAOB for inspection or investigation, or the PCAOB
expands the scope of the determinations so that we will be subject to the HFCA Act, as the same may be amended, you may be deprived of
the benefits of such inspection which could result in limitation or restriction to our access to the U.S. capital markets and trading
of our securities, including "over-the-counter" trading, may be prohibited, under the HFCA Act. The recent developments would
add uncertainties to our listing and we cannot assure you whether Nasdaq Capital Market or regulatory authorities would apply additional
and more stringent criteria to us after considering the effectiveness of our auditor's audit procedures and quality control procedures,
adequacy of personnel and training, or sufficiency of resources, geographic reach, or experience as it relates to our audit.
21
The HFCA Act all call for additional and more
stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially the non-U.S.
auditors who are not inspected by the PCAOB. These developments could add uncertainties to our continued listing.
On May 20, 2020, the U.S. Senate passed the HFCA
Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified
reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the company's
auditors for three consecutive years, the issuer's securities are prohibited to trade on a national exchange. On December 2, 2020,
the U.S. House of Representatives approved the HFCA Act. On December 18, 2020, the HFCA Act was signed into law. On March 24, 2021, the
SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the HFCA Act. A
company will be required to comply with these rules if the SEC identifies it as having a "non-inspection" year under a process
to be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the HFCA Act, including the listing
and trading prohibition requirements described above. Furthermore, on June 22, 2021, the U.S. Senate passed the AHFCAA, which, if signed
into law, would amend the HFCA Act and require the SEC to prohibit an issuer's securities from trading on any U.S. stock exchanges
if its auditor is not subject to PCAOB inspections for two consecutive years instead of three consecutive years. On September 22, 2021,
the PCAOB adopted a final rule implementing the HFCAA, which provides a framework for the PCAOB to use when determining, as contemplated
under the HFCA Act, whether the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign
jurisdiction because of a position taken by one or more authorities in that jurisdiction. Furthermore, on June 22, 2021, the U.S. Senate
passed the AHFCAA, which, if signed into law, would amend the HFCA Act and require the SEC to prohibit an issuer's securities from
trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three consecutive
years. On December 16, 2021, the PCAOB issued a Determination Report which found that the PCAOB is unable to inspect or investigate completely
registered public accounting firms headquartered in: (1) mainland China and (2) Hong Kong. Our auditor is headquartered in California
and is not subject to this determination announced by the PCAOB.
Our auditor, the independent registered public
accounting firm that issues the audit report for the year ended December 31, 2022 included elsewhere in this annual report, as an auditor
of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States
pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Our auditor
is headquartered in California and was last inspected by the PCAOB in March 2023. According to our auditor, the PCAOB will conduct regular
inspections.
The recent developments would add uncertainties
to our listing and we cannot assure you whether the Nasdaq Capital Market or regulatory authorities would apply additional and more stringent
criteria to us after considering the effectiveness of our auditor's audit procedures and quality control procedures, adequacy of
personnel and training, or sufficiency of resources, geographic reach, or experience as it relates to our audit. Furthermore, the HFCA
Act, which requires that the PCAOB be permitted to inspect the issuer's public accounting firm within three years, may result in
the delisting of our Company in the future if the PCAOB is unable to inspect our accounting firm at such future time.
Our management team has limited experience in
managing a U.S. public company and complying with laws applicable to such company, the failure of which may adversely affect our business,
financial conditions and results of operations
.
Our current management team has limited experience
in managing a U.S. publicly traded company, interacting with public company investors and complying with the increasingly complex laws
pertaining to U.S. public companies. Prior to the completion of our initial public offering, we mainly operated our businesses as a private
company in the PRC. As a result of our IPO, our company became subject to significant regulatory oversight and reporting obligations under
the federal securities laws and the scrutiny of securities analysts and investors, and our management currently has no experience in complying
with such laws, regulations and obligations. Our management team may not successfully or efficiently manage our transition to becoming
a U.S. public company. These new obligations and constituents will require significant attention from our senior management and could
divert their attention away from the day-to-day management of our business, which could adversely affect our business, financial conditions
and results of operations.
22
If our financial condition deteriorates as
a NASDAQ listed company, we may not meet continued listing standards on the NASDAQ Capital Market.
On October 29, 2019, the Company received Nasdaq
confirmation of the Company's regaining technical compliance with the minimum stockholders' equity rule and with other applicable
requirements as set forth in the Panel's decision following an oral hearing in August 2019. In connection with this confirmation,
the Nasdaq Panel imposes a Panel Monitor under Listing Rule 5815(d)(4)(A) until October 30, 2020 for the purposes of monitoring the Company's
continued compliance with the stockholders' equity requirement. The decision provided that if and to the extent the Company's
stockholders' equity fell below $2.5 million and the Company did not qualify for listing under an alternative to the stockholders'
equity rule, the Panel (or a newly convened Panel if the initial Panel is unavailable) would promptly conduct a hearing with respect to
this deficiency, and the Company's securities could be delisted from Nasdaq. During the monitoring period, the Company was obligated
to notify the Panel, in writing, in the event its stockholders' equity fell below $2.5 million for any reason, or if the Company
otherwise fell out of compliance with any other applicable listing requirement. In the event that the Company failed to comply with any
other requirement for continued listing during the monitoring period, the Company would have been provided written notice of the deficiency
and an opportunity to present a definitive plan to regain compliance to the Panel. The Panel would thereafter render a determination with
respect to the Company's continued listing on Nasdaq. On November 12, 2020, the Company, was informed that, following a 12-month
compliance monitoring period under a Panel Monitor pursuant to a Compliance with Monitor letter dated October 29, 2019, the Company was
currently in compliance with applicable Nasdaq Listing Rules, and the Panel has determined to continue the listing of the Company's
securities on The Nasdaq Stock Market. On February 23, 2022, the Company received a notification letter from Nasdaq Listing Qualifications
advising the Company that based upon the closing bid price for the Company's common shares for the past 30 consecutive business
days, the Company no longer met the minimum $1.00 per share Nasdaq continued listing requirement set forth in Nasdaq Listing
Rule 5550(a)(2). The notification also stated that the Company would be provided 180 calendar days, or until August 22, 2022, to
regain compliance with the foregoing listing requirement. To do so, the bid price of the Company's common stock must close at or
above $1.00 per share for a minimum of 10 consecutive business days prior to that date.
On June 14, 2022, our Board approved to effect
a reverse stock split of our common shares at the ratio of one-for-twenty with the market effective date of June 14, 2022. The
objective of the reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain
its listing on Nasdaq. As a result of the reverse stock split, each twenty common shares outstanding automatically combined and converted
to one issued and outstanding common share without any action on the part of the shareholder. Subsequent to the reverse stock split, Nasdaq
determined that for 10 consecutive business days, the closing bid price of the Company's common shares was at $1.00 per share or
greater. On June 29, 2022, Nasdaq notified the Company that it has regained compliance with Listing Rule 5550(a)(2) and closed the matter.
However, if our shares are listed on the NASDAQ
Capital Market but are delisted from the NASDAQ Capital Market at some later date, our shareholders could find it difficult to sell our
shares. In addition, if our common shares are delisted from the NASDAQ Capital Market at some later date, we may apply to have our common
shares quoted on the Bulletin Board or in the "pink sheets" maintained by the National Quotation Bureau, Inc. The Bulletin
Board and the "pink sheets" are generally considered to be less efficient markets than the NASDAQ Capital Market. In addition,
if our common shares are not so listed or are delisted at some later date, our common shares may be subject to the "penny stock"
regulations. These rules impose additional sales practice requirements on broker-dealers that sell low-priced securities to persons other
than established customers and institutional accredited investors and require the delivery of a disclosure schedule explaining the nature
and risks of the penny stock market. As a result, the ability or willingness of broker-dealers to sell or make a market in our common
shares might decline. If our common shares are delisted from the NASDAQ Capital Market at some later date or become subject to the penny
stock regulations, it is likely that the price of our shares would decline and that our shareholders would find it difficult to sell their
shares.
23
We are a "foreign private issuer,"
and our disclosure obligations differ from those of U.S. domestic reporting companies. As a result, we may not provide you the same information
as U.S. domestic reporting companies or we may provide information at different times, which may make it more difficult for you to evaluate
our performance and prospects.
We are a foreign private issuer and, as a result,
we are not subject to the same requirements as U.S. domestic issuers. Under the Exchange Act, we will be subject to reporting obligations
that, to some extent, are more lenient and less frequent than those of U.S. domestic reporting companies. For example, we will not be
required to issue quarterly reports or proxy statements. We will not be required to disclose detailed individual executive compensation
information. Furthermore, our directors and executive officers will not be required to report equity holdings under Section 16 of the
Exchange Act and will not be subject to the insider short-swing profit disclosure and recovery regime. As a foreign private issuer, we
will also be exempt from the requirements of Regulation FD (Fair Disclosure) which, generally, are meant to ensure that select groups
of investors are not privy to specific information about an issuer before other investors. However, we will still be subject to the anti-fraud
and anti-manipulation rules of the SEC, such as Rule 10b-5 under the Exchange Act. Since many of the disclosure obligations imposed on
us as a foreign private issuer differ from those imposed on U.S. domestic reporting companies, you should not expect to receive the same
information about us and at the same time as the information provided by U.S. domestic reporting companies.
As a relatively new public company, we incur
increased costs and are subject to additional regulations and requirements, and our management is required to devote substantial time
to new compliance matters, which could lower our profits or make it more difficult to run our business.
As a relatively new public company, we incur significant
legal, accounting and other expenses that we have not incurred as a private company, including costs associated with public company reporting
requirements and costs of recruiting and retaining non-executive directors. We also have incurred and will incur costs associated with
the Sarbanes-Oxley Act and related rules implemented by the Securities and Exchange Commission, or the SEC, and NASDAQ. The expenses incurred
by public companies generally for reporting and corporate governance purposes have been increasing. We expect these rules and regulations
to increase our legal and financial compliance costs and to make some activities more time-consuming and costlier, although we are currently
unable to estimate these costs with any degree of certainty. Our management will need to devote a substantial amount of time to ensure
that we comply with all of these requirements. These laws and regulations also could make it more difficult or costly for us to obtain
certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and
coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more
difficult for us to attract and retain qualified persons to serve on our Board of Directors, our board committees or as our executive
officers. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our common
shares, fines, sanctions and other regulatory action and potentially civil litigation.
The market price of shares may be volatile,
which could cause the value of your investment to decline.
Worldwide market volatility, as well as general
economic, market or political conditions, could reduce the market price of shares of our stock in spite of our operating performance.
In addition, our results of operations could be below the expectations of public market analysts and investors due to a number of potential
factors, including variations in our quarterly results of operations, additions or departures of key management personnel, failure to
meet analysts' earnings estimates, publication of research reports about our industry, litigation and government investigations,
changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof affecting our business, adverse
market reaction to any indebtedness we may incur or securities we may issue in the future, changes in market valuations of similar companies
or speculation in the press or investment community, announcements by our competitors of significant contracts, acquisitions, dispositions,
strategic partnerships, joint ventures or capital commitments, adverse publicity about our industry in or individual scandals, and in
response the market price of our common shares could decrease significantly. In the past few years, stock markets have experienced extreme
price and volume fluctuations. In the past, following periods of volatility in the overall market and the market price of a company's
securities, securities class action litigation has often been instituted against these companies. This litigation, if instituted against
us, could result in substantial costs and a diversion of our management's attention and resources, or at all.
24
If we are unable to implement and maintain
effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of
our financial reports and the market price of our Common Shares may decline.
As a public company, we are required to
maintain internal control over financial reporting and to report any material weaknesses in such internal control. In addition, we
are required to furnish a report by management on the effectiveness of our internal control over financial reporting pursuant to
Section 404 of the Sarbanes-Oxley Act. Currently we have not established and maintained effective disclosure controls and
procedures. In addition, there are material weaknesses in our internal control over financial reporting. Specifically, the material
weakness identified by our management include (i) a lack of sufficient accounting staff and resources with appropriate
knowledge of generally accepted accounting principles in the United States ("U.S. GAAP") and SEC reporting and
compliance requirements; and (ii) a lack of an effective review process which may lead to material audit adjustments to the
financial statements. In order to address the foregoing material weakness, we have put in place additional controls, including,
among others, hiring and replacing certain management team members. Our CEO has established a new management team to deal with
operation management challenges of the Company, and our CFO has been working on improving the Company's financial and
reporting functions. We also plan to hire more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience
and qualifications to strengthen the financial reporting function and implement regular and continuous U.S. GAAP accounting and
financial reporting training programs for our accounting and financial reporting personnel. Overall, the Company is working through
and standardizing its business processes, instituting business procedures and adding controls and additional supervision,
particularly, in the areas of control duties and data sharing and supervision so as to provide effective means of linking various
functions and departments within the Company. If we are unable to resolve material weaknesses in our internal control over financial
reporting, if we are unable to comply with the requirements of Section 404 in a timely manner or assert that our internal control
over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to
the effectiveness of our internal control over financial reporting when required, investors may lose confidence in the accuracy and
completeness of our financial reports and the market price of our Common Shares could be negatively affected, and we could become
subject to investigations by the stock exchange on which our securities are listed, the SEC, or other regulatory authorities, which
could require additional financial and management resources.
As the rights of shareholders under British
Virgin Islands law differ from those under U.S. law, you may have fewer protections as a shareholder.
Our corporate affairs will be governed by our
memorandum and articles of association, the BVI Business Companies Act, 2004 (as amended), referred to below as the "BVI Act",
and the common law of the British Virgin Islands. The rights of shareholders to take legal action against our directors, actions by minority
shareholders and the fiduciary responsibilities of our directors under British Virgin Islands law are governed by the BVI Act and the
common law of the British Virgin Islands. The common law of the British Virgin Islands is derived in part from comparatively limited judicial
precedent in the British Virgin Islands as well as from the common law of England and the wider Commonwealth, which has persuasive, but
not binding, authority on a court in the British Virgin Islands. The rights of our shareholders and the fiduciary responsibilities of
our directors under British Virgin Islands law are largely codified in the BVI Act, but are potentially not as clearly established as
they would be under statutes or judicial precedents in some jurisdictions in the United States. In particular, the British Virgin Islands
has a less developed body of securities laws as compared to the United States, and some states (such as Delaware) have more fully developed
and judicially interpreted bodies of corporate law. As a result of all of the above, holders of our shares may have more difficulty in
protecting their interests through actions against our management, directors or major shareholders than they would as shareholders of
a U.S. company.
British Virgin Islands companies may not be
able to initiate shareholder derivative actions, thereby depriving shareholders of the ability to protect their interests.
Shareholders of British Virgin Islands companies
may not have standing to initiate a shareholder derivative action in a federal court of the United States Shareholders of a British Virgin
Islands company could, however, bring a derivative action in the British Virgin Islands courts, and there is a clear statutory right to
commence such derivative claims under Section 184C of the BVI Act. The circumstances in which any such action may be brought, and the
procedures and defenses that may be available in respect to any such action, may result in the rights of shareholders of a British Virgin
Islands company being more limited than those of shareholders of a company organized in the United States. Accordingly, shareholders may
have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The British Virgin Islands courts are
also unlikely to recognize or enforce against us judgments of courts in the United States based on certain liability provisions of U.S.
securities law; and to impose liabilities against us, in original actions brought in the British Virgin Islands, based on certain liability
provisions of U.S. securities laws that are penal in nature. There is no statutory recognition in the British Virgin Islands of judgments
obtained in the United States, although the courts of the British Virgin Islands will generally recognize and enforce the non-penal judgment
of a foreign court of competent jurisdiction without retrial on the merits. This means that even if shareholders were to sue us successfully,
they may not be able to recover anything to make up for the losses suffered.
The laws of the British Virgin Islands may
provide less protection for minority shareholders than those under U.S. law, so minority shareholders may have less recourse than they
would under U.S. law if the shareholders are dissatisfied with the conduct of our affairs.
Under the laws of the British Virgin Islands,
the rights of minority shareholders are protected by provisions of the BVI Act dealing with shareholder remedies and other remedies available
under common law (in tort or contractual remedies). The principal protection under statutory law is that shareholders may bring an action
to enforce the constitutional documents of the company (i.e. the memorandum and articles of association) as shareholders are entitled
to have the affairs of the company conducted in accordance with the BVI Act and the memorandum and articles of association of the company.
A shareholder may also bring an action under statute if he feels that the affairs of the company have been or will be carried out in a
manner that is unfairly prejudicial or discriminating or oppressive to him. The BVI Act also provides for certain other protections for
minority shareholders, including in respect of investigation of the company and inspection of the company books and records. There are
also common law rights for the protection of shareholders that may be invoked, largely dependent on English common law, since the common
law of the British Virgin Islands for business companies is limited.
25
We may not be able to pay any dividends on
our shares in the future due to British Virgin Islands law.
Under British Virgin Islands law, we may only
pay dividends to our shareholders if the value of our assets exceeds our liabilities and we are able to pay our debts as they become due.
We cannot give any assurance that we will declare dividends of any amounts, at any rate or at all in the future. Future dividends, if
any, will be at the discretion of our board of directors, and will depend upon our results of operations, cash flows, financial condition,
payment to us of cash dividends by our subsidiaries, capital needs, future prospects and other factors that our directors may deem appropriate.
ITEM 4.
INFORMATION ON THE COMPANY
A.
History and Development of the Company
We started our company in 2002 in Qingdao, Shandong
Province, PRC as a petfood company.
The following chart reflects our organizational
structure as of the filling date:
On September 20, 2018, the Board has approved
acquisitions by the Company of TDH Group BVBA, a company established under the laws of Belgium and TDH JAPAN, a company established under
the laws of Japan. In connection with the foregoing transactions the Company executed Share Sale and Purchase Agreements (together, the
"Agreements") pursuant to which the Company agreed to pay approximately USD$ 936,782 and USD $156,130 (RMB 6 million and RMB
1 million), respectively, to acquire all of outstanding securities of TDH Group BVBA and TDH JAPAN, respectively, from the sole shareholder
of each entity, Rongfeng Cui, the Company's former CEO. The purchase consideration under the Agreements was paid by issuance of
936,782 and 156,130 restricted common shares of the Company, respectively. Rongfeng Cui incorporated TDH Group BVBA in 2012 and TDH JAPAN
in 2017 to develop and maintain all the clients in Europe and Japan, and to distribute and expand product sales in European and Japanese
markets. Effective August 2, 2019, Rongfeng Cui ceased to be Company's CEO and Dandan Liu was appointed as the CEO in his stead.
TDH Japan has been deregistered and dissolved in February 2021. As of the date of this filing, TDH Group BVBA is currently under bankruptcy
proceeding.
26
On April 22, 2002 Tiandihui was incorporated in
Qingdao City, PRC. As of the date of this filing, Qingdao Tiandihui Foodstuffs Co., Ltd is currently under bankruptcy proceeding.
On January 22, 2020, Qingdao Tiandihui Pet Foodstuffs
Co., Ltd. ("Tiandihui Pet Foodstuffs") was incorporated in Qingdao City, PRC.
On January 21, 2020, Qingdao Tiandihui Foodstuffs
Sales Co., Ltd. ("Tiandihui Foodstuffs Sales") was incorporated in Qingdao City, PRC. Tiandihui Foodstuffs Sales is a wholly
owned subsidiary of Tiandihui Pet Foodstuffs.
On February 27, 2020, TDH Foods Limited was incorporated
in Hong Kong, with the purpose of being a holding company for equity interests in Tiandihui Pet Foodstuffs. TDH Foods Limited does conduct
any operations or own any material assets or liabilities.
On August 24, 2020, TDH Holdings, Inc. acquired
100% equity interests of TDH Foods Limited.
In December 2020, TDH Holdings Inc. acquired remaining
1% equity interest of TDH Petfood LLC. As a result, TDH Petfood LLC became a wholly-owned subsidiary of TDH Holdings, Inc. TDH Petfood
LLC had no active business operations since its incorporation, and it has been deregistered and dissolved in 2021.
On June 4, 2021, TDH Income Corporation ("TDH
Income") was incorporated in Nevada. TDH Holdings, Inc. owns a 99.99% interest in TDH Income, and in December 2021, TDH Holdings,
Inc. acquired the remaining 0.01% interest in TDH Income. As a result, TDH Income became a wholly-owned subsidiary of TDH Holdings, Inc.
On June 9, 2021, Ruby21Noland LLC ("Ruby21Noland")
was incorporated in Missouri. Ruby21Noland is a wholly owned subsidiary of TDH Income.
On October 31, 2021, TDH Income Corporation acquired
51% equity interests of Far Ling's Inc.
On October 31, 2021, TDH Income Corporation acquired
100% equity interests of Bo Ling's Chinese Restaurant, Inc.
On January 22, 2022, Beijing Wenxin Co., Ltd.
("Beijing Wenxin") was incorporated in Beijing City, PRC.
On March 27, 2023, Qingdao Chihong Information
Consulting Co., Ltd. ("Qingdao Chihong") was incorporated in Qingdao City, PRC.
27
Recent Developments
Discontinued operations
We discontinued our petfood
manufacturing segment during the first quarter of 2023. Our decision to discontinue our petfood business was driven largely by the following
factors: the increase in cost of raw materials required for production; accepting less orders in an attempt to avoid unprofitable
orders and customers; decreased demand for sales of petfood; its historical performance and expected business forecasts in the absence
of further capital investments and opportunity costs; lawsuits and the closing of our manufacturing facilities and them being subject
to bankruptcy proceedings. We believe the discontinuation of our petfood manufacturing business will provide us with the opportunity to
redirect our focus and resources towards expanding and improving our restaurant segment.
Nasdaq Compliance Matters
On February 23, 2022, the Company
received a notification letter from Nasdaq Listing Qualifications advising the Company that based upon the closing bid price for the Company's
common shares for the past 30 consecutive business days, the Company no longer met the minimum $1.00 per share Nasdaq continued
listing requirement set forth in Nasdaq Listing Rule 5550(a)(2). The notification also stated that the Company would be provided 180 calendar
days, or until August 22, 2022, to regain compliance with the foregoing listing requirement. To do so, the bid price of the Company's
common stock must close at or above $1.00 per share for a minimum of 10 consecutive business days prior to that date.
On June 14, 2022, our Board approved to effect a reverse
stock split of our common shares at the ratio of one-for-twenty with the market effective date of June 14, 2022. The objective of
the reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain its listing
on Nasdaq. As a result of the reverse stock split, each twenty common shares outstanding automatically combined and converted to
one issued and outstanding common share without any action on the part of the shareholder. Subsequent to the reverse stock split, Nasdaq
determined that for 10 consecutive business days, the closing bid price of the Company's common shares was at $1.00 per share or
greater. On June 29, 2022, Nasdaq notified the Company that it has regained compliance with Listing Rule 5550(a)(2) and closed the matter.
Recent Private Placement
On July 26, 2022, we completed
a private placement of securities, and entered into a securities purchase agreement with eight accredited investors pursuant to which
we sold to the investors an aggregate 4,000,000 of our common shares, at a price of $1.50 per share and warrants at a price of $0.01 per
warrant to purchase up to an aggregate 4,000,000 of our common shares, for gross proceeds of $6,040,000. The warrants have an exercise
price of $2.44 per share, and a term of two years.  The warrants are immediately exercisable upon issuance and have a cashless exercise
feature. The securities were sold without registration under the Securities Act of 1933 in reliance on the exemptions provided by
Section 4(a)(2) of the Securities Act as transactions not involving a public offering and rules promulgated under the Securities Act as
sales to accredited investors. The Company's intention was to use the proceeds of this offering for working capital and general
working purposes. There were no discounts or brokerage fees associated with this offering.
28
B.
Business Overview
Special Considerations
We are not a Chinese operating company but a British
Virgin Islands holding company with operations conducted by our subsidiaries established in Missouri, Nevada, PRC, Belgium, and Hong Kong.
PRC laws and regulations governing business operations
are sometimes vague and uncertain, and therefore, these risks may result in a material change in the operations of our PRC subsidiaries
and Hong Kong subsidiaries, significant depreciation of the value of our Common Shares, or a complete hindrance of our ability to offer
or continue to offer our securities to investors and cause the value of such securities to significantly decline or be worthless. The
Chinese government may intervene or influence the operations of our PRC operating entities at any time and may exert more control over
offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in the operations
of our PRC operating entities and/or the value of our Common Shares. Further, any actions by the Chinese government to exert more oversight
and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly limit or completely
hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline
or be worthless. Recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations
in China with little advance notice, including cracking down on illegal activities in the securities market, adopting new measures to
extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement.
Trading in our Common Shares may be prohibited
on national exchanges or "over-the-counter" markets under the HFCA Act if the PCAOB is unable to inspect our auditors for
three consecutive years beginning in 2021, and as a result, an exchange may determine to delist our securities. Furthermore, on June 22,
2021, the U.S. Senate passed the AHFCAA, which, if signed into law, would amend the HFCA Act and require the SEC to prohibit an issuer's
securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead
of three consecutive years. Pursuant to the HFCA Act, the PCAOB issued a Determination Report on December 16, 2021 which found that the
PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in: (1) mainland China of the PRC,
and (2) Hong Kong. In addition, the PCAOB's report identified the specific registered public accounting firms which are subject
to these determinations.
Our auditor is currently subject to PCAOB inspections
and the PCAOB is thus able to inspect our auditor. Our auditor is headquartered in California and was last inspected by the PCAOB in March
2023. According to our auditor, the PCAOB will conduct regular inspections. Our auditor is not headquartered in mainland China or Hong
Kong and was not identified in this report as a firm subject to the PCAOB's determination. Notwithstanding the foregoing, in the
future, if there is any regulatory change or step taken by PRC regulators that does not permit YCM CPA Inc., to provide audit documentations
located in China or Hong Kong to the PCAOB for inspection or investigation, or the PACOB expands the scope of its determination so that
we are subject to the HFCA, as the same may be amended, you may be deprived of the benefits of such inspection which could result in limitation
or restriction to our access to the U.S. capital markets and trading of our securities, including trading on the national exchange and
trading on "over-the-counter" markets, may be prohibited under the HFCA Act.
Overview
Petfood Manufacturing
We started our company in 2002 in Qingdao, Shandong
Province, PRC with a single mission of becoming a producer of high-quality petfood for pet owners in China and worldwide. Historically,
we anticipated our growth would be driven by two key factors: a significant increase in the number of pet owners and in the size of the
petfood market in China which would translate into expansion opportunities for us, and a fundamental change in Chinese society towards
pets, pet ownership and care, such that the trends of pet humanization and consumer concerns for pet health and wellness would in turn
would create a growing industry for petfood and products. We priced our products to be accessible to the average consumer.
29
Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended
our production and normal business operations and we were involved in certain legal proceedings beginning in November 2019. Although we
resumed our operations in May 2020 factors including the Covid-19 pandemic, the increase in cost of raw materials required for production; accepting
less orders in an attempt to avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a continuous
decrease in our petfood revenue from $0.47 million in 2021 to only $0.02 million in 2022. Additionally, our remaining petfood production
facility became subject to a bankruptcy proceeding and was frozen by the court in 2022. Accordingly, we sought strategic alternatives
to the petfood industry and entered the restaurant segment on October 31, 2021, when we acquired 51% equity interests of Far Ling's
Inc and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.6 million and $3.1 million
in restaurant food service revenue for the years ended December 31, 2021 and 2022, respectively. In addition, we decided to discontinue
our petfood manufacturing business segment in the first quarter of 2023 due to the above operational challenges and to focus on our restaurant
segment.
Restaurant Segment
On October 31, 2021, the Company completed the acquisition of 51% equity
interests of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. The acquisition brought a new
revenue source for the Company.
Bo Lings Chinese Restaurant, which was founded
by Richard (Bo) and Far Ling (Ling) Ng, husband and wife, in 1981. Today there are 5 Bo Lings Chinese Restaurants in the Kansas City area,
as well as a warehouse for distribution of supplies. All Bo Lings restaurants are full service that include a dining area, bar, carry
out menu and offer catering services. The location we purchased is in Kansas City and offers a full Cantonese Dim Sum menu and space for
banquets. Most of the menu items are prepared onsite in the kitchen and cooked to order. Business is managed by Richard and Far Ling with
a team of employees in each restaurant, including bookkeepers, a marketing manager and a purchasing director. Over the years, we believe
Bo Lings has built a reputation as one of the best Chinese restaurants in the Kansas City area.  Currently, no other Chinese Restaurant
has 2 or more restaurants in our area.
Business Strategy
Our Growth agenda is based on four key drivers:
●
Culture and Talent: Leverage our culture and people capability
to fuel brand performance and franchise success;
●
Operating Capability: Recruit and equip high-quality restaurant
operators to deliver great customer experiences;
●
Strategically optimize
                                            our restaurant portfolio and pursue high quality assets and acquisitions: We aim to prudently
                                            pursue investments in high-quality assets. Our investment strategy primarily focuses on,
                                            restaurant brands with excellent growth potential and synergy, and related business such
                                            as catering and events. We continue to identify and evaluate investment opportunities in
                                            high-quality brands to capture growth opportunities. We will prudently assess investment
                                            targets based on each candidate's strategic value, brand equity, business scale and
                                            financial performance, among other factors; and
●
Menu Innovations: Offering appealing, tasty and convenient food at great prices is our value
                                                                                      proposition. We focus on the development and innovation of new recipes and improvement of existing products.
30
Operating Strategy
Our operating strategy is built on the following
key components:
●
Offering high quality,
                                            freshly prepared food: We place a great deal of emphasis on providing our guests with high
                                            quality, freshly prepared food. As part of our process, we have developed proprietary recipes
                                            to provide consistency in quality and taste. We expect our employees to inspect every entrée
                                            before it leaves the kitchen to confirm it matches the guest's order and meets our
                                            standards for quality, portion size, appearance and presentation;
●
Creating a comfortable atmosphere with a focus on high quality service: We believe the service quality and atmosphere we establish is a key component for fostering repeat business. We focus on keeping our table-to-server ratios low to allow our servers to truly focus on their guests and serve their needs in a personal, individualized manner. In addition, Bo Lings features a modern design; and
●
Offering attractive price points: When we evaluate menu pricing, we focus on remaining disciplined as we balance short-term pressures with long-term growth while always keeping our guest top of mind. Prices are reviewed and are offered at moderate price points that we believe are as low as or lower than those offered by our competitors without sacrificing food quality. Within each menu category, we offer a choice of several price points with the goal of fulfilling each guest's budget and value expectations. Based on the results of our pricing evaluations, we will continue to take pricing actions as we feel are needed.
Marketing
Our marketing strategy aims to promote our brands
while retaining a localized focus. We strive to increase restaurant sales by increasing the frequency of visits by our current guests
and attracting new guests at Bo Lings and also by communicating and promoting our food quality, the guest experience and value. We accomplish
these objectives through three major initiatives.
Local Restaurant Marketing.
Given our strategy
to be a neighborhood destination, local restaurant marketing is integral in developing brand awareness in each market.
In-restaurant Marketing.
A significant
portion of our marketing is spent communicating with our guests inside our restaurants through point of purchase materials.
Advertising.
We do not rely on national
television or print advertising to promote our brands. Earned local media is a critical part of our strategy that features our products
and people. We use mailing lists, social media and digital marketing, to promote the brand and engage with our guests. Additionally, we
continue to look for ways through various strategic initiatives to drive awareness and guest engagement with our brands.
Supply and Distribution
Bo Lings purchases a number of food and paper
products, equipment and other restaurant supplies. The principal items purchased include chicken, cheese, beef and pork products, paper
and packaging materials. Prices paid for these supplies fluctuate.  When prices increase, Bo Lings may attempt to pass on such
increases to its customers, although there is no assurance that this can be done in practice. Bo Lings does not typically experience significant
continuous shortages of supplies, and alternative sources for most of these supplies are generally available.
31
Seasonal Operations
Bo Lings does not consider its operations to be
seasonal to any material degree.
Competition
Competition in the restaurant industry is intense.
We compete with well-established food service companies on the basis of taste, quality and price of the food offered, service, atmosphere,
location, take-out and delivery options as well as the overall dining experience. Our competitors include a large and diverse group of
restaurant chains and individual restaurants that range from independent local operators that have opened restaurants in various markets
to well-capitalized national restaurant chains. We also face competition from meal kit delivery services as well as the supermarket industry.
In addition, improving product offerings of fast casual and quick-service restaurants and better execution of to-go sales, together with
negative economic conditions could cause consumers to choose less expensive alternatives. Although we believe that we compete favorably
with respect to each of the above channels, other restaurants and retail establishments compete for the same casual dining guests, quality
site locations and restaurant-level employees as we do. We expect intense competition to continue across all aspects of the restaurant
industry.
Environmental Matters
The Company is not aware of any federal, state
or local environmental laws or regulations that will materially affect our earnings or competitive position or result in material capital
expenditures.  However, the Company cannot predict the effect on our operations due to possible future environmental legislation
or regulations.  During 2022, there were no material capital expenditures for environmental control facilities and no such material
expenditures are anticipated
.
Human Capital Management
Due to the discontinuation of out petfood manufacturing
segment we have reduced our number of employees in response to those challenges. As of the date of this filing, we employ around 51 full-time
employees. With the exception of Bo Lings' employees, all of our employees are located in Beijing and Shandong Province, PRC.
Our History and Corporate Structure
We are a holding company incorporated in the British
Virgin Islands (incorporated on September 30, 2015) that owns all of the outstanding capital stock of TDH HK Limited, our wholly-owned
Hong Kong subsidiary (TDH HK). We also own all of the outstanding capital stock of TDH Foods Limited, another wholly-owned Hong Kong subsidiary,
and holds a 100% interest in TDH Income Corporation, a Nevada limited liability company. TDH HK, in turn, owns all of the outstanding
capital stock of Tiandihui, our operating subsidiary based in Qingdao City, Shandong Province, China, incorporated in April 2002 as a
PRC limited liability company Tiandihui. TDH Foods Limited owns 100% of the outstanding capital stock of Qingdao Pet Foodstuffs, with
its wholly-owned subsidiary of Tiandihui Foodstuffs Sales. TDH HK Limited owns 100% of the outstanding capital stock of Tiandihui Pet
Foodstuffs, with its wholly-owned subsidiary of Beijing Chongai Jiujiu Cultural Communication Co., Ltd. TDH Income Corporation owns 100%
of the outstanding capital stock of Ruby21Noland LLC. Ruby21Noland LLC was incorporated in the State of Missouri on June 9, 2021. On October
31, 2021, TDH Income Corporation acquired 51% equity interests of Far Ling's Inc. On October 31, 2021, TDH Income Corporation acquired
100% equity interests of Bo Ling's Chinese Restaurant, Inc. On January 22, 2022, Beijing Wenxin was incorporated in Beijing City,
PRC. On March 27, 2023, Qingdao Chihong was incorporated in Qingdao City, PRC.
On September 20, 2018, the Board approved acquisitions
by the Company of TDH Group BVBA, a company established under the laws of Belgium and TDH JAPAN, a company established under the laws
of Japan. In connection with the foregoing transactions the Company executed Share Sale and Purchase Agreements (together, the "Agreements")
pursuant to which the Company agreed to pay approximately USD$ 936,782 and USD $156,130 (RMB 6 million and RMB 1 million), respectively,
to acquire all of outstanding securities of TDH Group BVBA and TDH JAPAN, respectively, from the sole shareholder of each entity, Rongfeng
Cui, the Company's former CEO. The purchase consideration under the Agreements was paid by issuance of 936,782 and 156,130 restricted
common shares of the Company, respectively. Rongfeng Cui incorporated TDH Group BVBA in 2012 and TDH JAPAN in 2017 to develop and maintain
all the clients in Europe and Japan, and to distribute and expand product sales in European and Japanese markets. TDH Japan has been deregistered
and dissolved in February 2021. As of the date of this filing, TDH Group BVBA is currently under bankruptcy proceeding.
32
Intellectual Property
The PRC has domestic laws for the protection of
rights in copyrights, patents, trademarks and trade secrets. The PRC is also a signatory to all of the world's major intellectual
property conventions, including:
●
Convention establishing the World Intellectual Property Organization (June 3, 1980);
●
Paris Convention for the Protection of Industrial Property (March 19, 1985);
●
Patent Cooperation Treaty (January 1, 1994); and
●
Agreement on Trade-Related Aspects of Intellectual Property Rights (November 11, 2001).
The PRC Trademark Law, adopted in 1982 and revised
in 2013, with its implementation rules adopted in 2014, protects registered trademarks. The Trademark Office of the State Administration
of Industry and Commerce of the PRC, handles trademark registrations and grants trademark registrations for a term of ten years.
Our primary trademark portfolio consists of 15
registered trademarks relating to petfood and manufacturing, we do not currently have any patents related to our restaurant business.
Properties
Under Chinese law, all of the land in China is
either state-owned or collectively-owned, depending on its location and the specific laws governing such land. Collectively-owned land
is owned by rural collectives and generally cannot be used for non-agricultural purposes unless approved by the Chinese government. Collectively-owned
land cannot be transferred, leased or mortgaged to non-collectives without first being converted into state-owned land. Individuals and
entities may acquire rights to use state-owned land, or land-use-rights, for commercial, industrial or residential purposes by means of
mutual agreement, tender, auction or listing for sale from local land authorities or an existing holder of a land-use-right. Land-use-rights
granted for commercial, industrial and residential purposes may be granted for a period of up to 40, 50 or 70 years, respectively. This
period may be renewed at the expiration of the initial and any subsequent terms, subject to compliance with relevant laws and regulations.
Land-use-rights are transferable and may be used as security for borrowings and other obligations.
Our principal executive office is located at Qingdao
Tiandihui Pet Foodstuff Co., Ltd., 2521 Tiejueshan Road, Huangdao District, Qingdao, Shandong Province, PRC. Our telephone number is +86
532-8615-7918. Our website address is www.tiandihui.com. The information on our website is not part of this Annual Report.
In addition, in 2022 our remaining petfood manufacturing
facility was frozen by court order and became subject to Tiandihui's bankruptcy proceeding. Our Bo Lings restaurant is located at
4701 Jefferson St, Kansas City, Missouri 64112.
Government Regulation
In the U.S., the Food and Drug Administration
regulates both content and labeling of all animal food, China does not have a significant body of petfood laws, rules or regulations.
Various regulatory agencies (e.g., the Ministry of Agriculture, the General Administration for Quality Supervision, Inspection and Quarantine)
administer a set of standards, but there appears to be no single regulatory or administrative agency that is fulfills the comprehensive
regulatory function. We are also subject to PRC labor and employment laws, laws governing advertising and other laws. We monitor changes
in these laws and believe that our operations are in compliance in all material aspects with all PRC rules and regulations applicable
to petfood production. However, many such rules and regulations are subject to extensive interpretive power of governmental agencies
and commissions, and there is substantial uncertainty regarding the future interpretation and application of these laws or regulations.
33
U.S. Restaurant Operation.
The Company and its U.S. operations, are subject to various federal,
state and local laws affecting our business, including laws and regulations concerning information security, privacy, labor and employment,
health, marketing, food labeling, competition, public accommodation, sanitation and safety.  Bo Lings and any additional restaurant
we open in the U.S. must comply with licensing requirements and regulations promulgated by a number of governmental authorities, which
include health, sanitation, safety, fire and zoning agencies in the state and/or municipality in which the restaurant is located. 
To date, the Company has not been materially adversely affected by such licensing requirements and regulations or by any difficulty, delay
or failure to obtain required licenses or approvals.
Regulation of Foreign Currency
Exchange and Dividend Distribution
Foreign Currency Exchange.
The principal
regulations governing foreign currency exchange in China are the Foreign Exchange Administration Regulations (1996), as amended on August
5, 2008, the Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996) and the Interim Measures on Administration
on Foreign Debts (2003). Under these regulations, Renminbi are freely convertible for current account items, including the distribution
of dividends, interest payments, trade and service-related foreign exchange transactions, but not for most capital account items, such
as direct investment, loans, repatriation of investment and investment in securities outside China, unless the prior approval of State
Administration of Foreign Exchange (SAFE) or its local counterparts is obtained. In addition, any loans to an operating subsidiary in
China that is a foreign-invested enterprise, cannot, in the aggregate, exceed the difference between its respective approved total investment
amount and its respective approved registered capital amount. Furthermore, any foreign loan must be registered with SAFE or its local
counterparts for the loan to be effective. Any increase in the amount of the total investment and registered capital must be approved
by the PRC Ministry of Commerce or its local counterpart. We may not be able to obtain these government approvals or registrations on
a timely basis, if at all, which could result in a delay in the process of making these loans. The dividends paid by the subsidiary to
its shareholder are deemed shareholder income and are taxable in China. Pursuant to the Administration Rules of the Settlement, Sale and
Payment of Foreign Exchange (1996), foreign-invested enterprises in China may purchase or remit foreign exchange, subject to a cap approved
by SAFE, for settlement of current account transactions without the approval of SAFE. Foreign exchange transactions under the capital
account are still subject to limitations and require approvals from, or registration with, SAFE and other relevant PRC governmental authorities.
Dividend Distribution.
The principal regulations
governing the distribution of dividends by foreign holding companies include the Company Law of the PRC (1993), as amended in 2013, the
Foreign Investment Enterprise Law (1986), as amended in 2000 and 2016 respectively, and the Administrative Rules under the Foreign Investment
Enterprise Law (1990), as amended in 2001 and 2014 respectively. Under these regulations, wholly foreign-owned investment enterprises
in China may pay dividends only out of their retained profits, if any, determined in accordance with PRC accounting standards and regulations.
In addition, wholly foreign-owned investment enterprises in China are required to allocate at least 10% of their respective retained profits
each year, if any, to fund certain reserve funds unless these reserves have reached 50% of the registered capital of the enterprises.
These reserves are not distributable as cash dividends, and a wholly foreign-owned enterprise is not permitted to distribute any profits
until losses from prior fiscal years have been offset.
Circular 37.
On July 4, 2014, SAFE issued
Circular 37, which became effective as of July 4, 2014. According to Circular 37, PRC residents shall apply to SAFE and its branches for
going through the procedures for foreign exchange registration of overseas investments before contributing the domestic assets or interests
to a SPV. An amendment to registration or filing with the local SAFE branch by such PRC resident is also required if the registered overseas
SPV's basic information such as domestic individual resident shareholder, name, operating period, or major events such as domestic
individual resident capital increase, capital reduction, share transfer or exchange, merger or division has changed. Although the change
of overseas funds raised by overseas SPV, overseas investment exercised by overseas SPV and non-cross-border capital flow are not included
in Circular 37, we may be required to make foreign exchange registration if required by SAFE and its branches. Moreover, Circular 37 applies
retroactively. As a result, PRC residents who have contributed domestic assets or interests to a SPV, but failed to complete foreign exchange
registration of overseas investments as required prior to implementation of Circular 37, are required to send a letter to SAFE and its
branches for explanation. Under the relevant rules, failure to comply with the registration procedures set forth in Circular 37 may result
in receiving a warning from SAFE and its branches, and may result in a fine of up to RMB 300,000 for an organization or up to RMB 50,000
for an individual. PRC residents who control our company are required to register with SAFE in connection with their investments in us.
If we use our equity interest to purchase the assets or equity interest of a PRC company owned by PRC residents in the future, such PRC
residents will be subject to the registration procedures described in Circular 37.
34
New M&A Regulations and Overseas
Listings
On August 8, 2006, six PRC regulatory agencies,
including the Ministry of Commerce, the State Assets Supervision and Administration Commission, the State Administration for Taxation,
the State Administration for Industry and Commerce, China Security Regulation Commission (CSRC) and SAFE, jointly issued the Regulations
on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the New M&A Rule, which became effective on September
8, 2006 and was amended on June 22, 2009. This New M&A Rule, among other things, includes provisions that purport to require that
an offshore special purpose vehicle formed for purposes of overseas listing of equity interests in PRC companies and controlled directly
or indirectly by PRC companies or individuals obtain the approval of CSRC prior to the listing and trading of such special purpose vehicle's
securities on an overseas stock exchange. On September 21, 2006, CSRC published on its official website procedures regarding its approval
of overseas listings by special purpose vehicles. The CSRC approval procedures require the filing of a number of documents with the CSRC
and it would take several months to complete the approval process. The application of this new PRC regulation remains unclear with no
consensus currently existing among leading PRC law firms regarding the scope of the applicability of the CSRC approval requirement. Our
PRC counsel has advised us that, based on their understanding of the current PRC laws and regulations:
●
We currently control the Operating Companies by virtue of TDH HK Holding acquiring 100% of the equity interests of Tiandihui, which are regulated by the New M&A Rule. According to the New M&A Rule, when a domestic company or a domestic natural person, through an overseas company established or controlled by it, to acquire a domestic company's equity interest which is related to or connected with it, approval from Ministry of Commerce is required. At the time of our equity interest acquisition, as the acquiree, Tiandihui was not related to or connected with the foreign investor, or the acquirer, TDH HK Holding. Accordingly, we did not need the approval from Ministry of Commerce. In addition, we have received all relevant approvals and certificates required for the acquisition.
●
We currently control the Operating Companies by virtue of TDH Foods Limited acquiring 100% of the equity interests of Tiandihui Pet Foodstuffs, which are regulated by the New M&A Rule. According to the New M&A Rule, when a domestic company or a domestic natural person, through an overseas company established or controlled by it, to acquire a domestic company's equity interest which is related to or connected with it, approval from Ministry of Commerce is required. At the time of our equity interest acquisition, as the acquiree, Tiandihui Pet Foodstuffs was not related to or connected with the foreign investor, or the acquirer, TDH Foods Limited. Accordingly, we did not need the approval from Ministry of Commerce. In addition, we have received all relevant approvals and certificates required for the acquisition.
●
The CSRC approval under the New M&A Rule only applies to overseas listings of SPVs that have used their existing or newly issued equity interest to acquire existing or newly issued equity interest in Chinese domestic companies, or a SPV-domestic company share swap. TDH Holdings, Inc. does not constitute a SPV that is required to obtain approval from the CSRC for overseas listing under the New M&A Rule because there has not been any SPV-domestic company share swap in our corporate history; and
Notwithstanding the above analysis, the CSRC has
not issued any definitive rule or interpretation regarding whether offerings like the one contemplated by this Annual Report are subject
to the New M&A Rule.
Regulations on Offshore
Parent Holding Companies' Direct Investment in and Loans to Their PRC Subsidiaries
An offshore company may invest equity in a PRC
company, which will become the PRC subsidiary of the offshore holding company after investment. Such equity investment is subject to a
series of laws and regulations generally applicable to any foreign-invested enterprise in China, which include the Wholly Foreign-owned
Enterprise Law, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Contractual Joint Venture Enterprise Law, all as
amended from time to time, and their respective implementing rules; the Administrative Provisions on Foreign Exchange in Domestic Direct
Investment by Foreign Investors; and the Notice of the State Administration on Foreign Exchange on Further Improving and Adjusting Foreign
Exchange Administration Policies for Direct Investment.
35
Under the aforesaid laws and regulations, the
increase of the registered capital of a foreign-invested enterprise is subject to the prior approval by the original approval authority
of its establishment. In addition, the increase of registered capital and total investment amount shall both be registered with SAIC,
MOFCOM and SAFE. Shareholder loans made by offshore parent holding companies to their PRC subsidiaries are regarded as foreign debts in
China for regulatory purpose, which is subject to a number of PRC laws and regulations, including the PRC Foreign Exchange Administration
Regulations, the Interim Measures on Administration on Foreign Debts, the Tentative Provisions on the Statistics Monitoring of Foreign
Debts and its implementation rules, and the Administration Rules on the Settlement, Sale and Payment of Foreign Exchange. Under these
regulations, the shareholder loans made by offshore parent holding companies to their PRC subsidiaries shall be registered with SAFE.
Furthermore, the total amount of foreign debts that can be borrowed by such PRC subsidiaries, including any shareholder loans, shall not
exceed the difference between the total investment amount and the registered capital amount of the PRC subsidiaries, both of which are
subject to the governmental approval.
ITEM 4A.
UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 5.
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
Overview
We started our company in
2002 in Qingdao, Shandong Province, PRC with a single mission of becoming a producer of high-quality petfood for pet owners in China and
worldwide. Due to the sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and
our inability to make bank loan repayments upon maturity, we suspended our production and normal business operations, and we were involved
in certain legal proceedings beginning in November 2019. Although we resumed our operations in May 2020 factors including the Covid-19
pandemic, the increase in costs of raw materials required for production; accepting less orders in an attempt to avoid unprofitable
orders and customers; decreased demand for sales of petfood, led to a dramatic decrease in our petfood sales revenue. Additionally,
our remaining production facility was frozen by court order and became subject to Tiandihui's bankruptcy proceeding in 2022. Accordingly,
we sought strategic alternatives to the petfood industry and entered the restaurant segment on October 31, 2021, when we acquired 51%
equity interests of Far Ling's Inc and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. In addition, we decided
to discontinue our petfood manufacturing business segment in the first quarter of 2023 due to the above operational challenges and focus
on our restaurant segment.
We are a holding company incorporated in the British
Virgin Islands (incorporated on September 30, 2015) that owns all of the outstanding capital stock of TDH HK Limited, our wholly-owned
Hong Kong subsidiary (TDH HK). We also own all of the outstanding capital stock of TDH Foods Limited, another wholly-owned Hong Kong subsidiary,
and holds a 100% interest in TDH Income Corporation, a Nevada limited liability company. TDH HK, in turn, owns all of the outstanding
capital stock of Tiandihui, our operating subsidiary based in Qingdao City, Shandong Province, China, incorporated in April 2002 as a
PRC limited liability company. TDH Foods Limited owns 100% of the outstanding capital stock of Tiandihui Pet Foodstuffs, with its wholly-owned
subsidiary of Qingdao Foodstuff Sales Co., Ltd. We conduct some of our business through Tiandihui Pet Foodstuff and Tiandihui Foodstuff
Sales which has one wholly-owned subsidiary: Beijing Chongai Jiujiu Cultural Communication Co., Ltd. (incorporated on March 3, 2011).
TDH Income Corporation owns 100% of the outstanding capital stock of Ruby21Noland LLC. Ruby21Noland LLC was incorporated in the State
of Missouri on June 9, 2021. On October 31, 2021, TDH Income Corporation acquired 51% equity interests of Far Ling's Inc. On October
31, 2021, TDH Income Corporation acquired 100% equity interests of Bo Ling's Chinese Restaurant, Inc. In addition, TDH Group BVBA,
a Belgium company is wholly-owned by TDH Holdings, Inc.; TDH JAPAN, a Japanese company is wholly-owned by TDH Holdings, Inc. TDH Japan
has been deregistered and dissolved in February 2021. On January 22, 2022, Beijing Wenxin was incorporated in Beijing City, PRC. On March
27, 2023, Qingdao Chihong was incorporated in Qingdao City, PRC.
Our principal executive office is located at Qingdao
Tiandihui Pet Foodstuff Co., Ltd., 2521 Tiejueshan Road, Huangdao District, Qingdao, Shandong Province, PRC. Our telephone number is +86
532-8615-7918. Our website address is www.tiandihui.com. The information on our website is not part of this Annual Report.
36
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and
analysis of our financial condition and results of operations in conjunction with our audited consolidated financial statements and the
related notes included elsewhere in this annual filing. This discussion contains forward-looking statements that involve risks and uncertainties.
Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements
as a result of various factors, including those set forth under "Risk Factors" and elsewhere in this annual filing.
Recent Developments
Discontinued operations
We discontinued our petfood manufacturing segment
during the first quarter of 2023. Our decision to discontinue our petfood business was driven largely by the following factors: the increase
in cost of raw materials required for production; accepting less orders in an attempt to avoid unprofitable orders and customers; decreased
demand for sales of petfood; its historical performance and expected business forecasts in the absence of further capital investments
and opportunity costs; lawsuits and the closing of our manufacturing facilities and them being subject to bankruptcy proceedings. We believe
the discontinuation of our petfood manufacturing business will provide us with the opportunity to redirect our focus and resources towards
expanding and improving our restaurant segment.
We Are Currently Facing Challenges to Recover
Our Normal Business Operations and Resolve Existing Legal Proceedings
Due to the sharp rise in market price of raw materials,
the lack of operational efficiency of our production facilities and our inability to make bank loan repayments to financial institutions
upon maturity, we temporarily suspended our production and normal business operations and we were involved in certain legal proceedings
beginning in November 2019. The COVID-19 outbreak and spread further disrupted our business activities during the period from the beginning
of 2020 up to May 2020 when we resumed our business operations. In order to diversify our revenue streams, on October 31, 2021, we acquired
51% equity interests of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an
increase of $0.6 million and $3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively. However,
our petfood revenue continued to decrease from approximately $0.8 million in 2020, to $0.47 million in 2021 and to $0.02 million in 2022.
We decided to discontinue our petfood manufacturing business segment in the first quarter of 2023 due to the operational challenges and
we plan to focus on our restaurant segment. Our business turnaround currently depends, in part, on our ability to successfully introduce
manage and acquire new restaurants. If we are not able to effectively manage and acquire new restaurants that successfully generate revenue,
we may not be able to grow and maintain our business as anticipated. Although we reported a net income of approximately $0.86 million
in fiscal year 2022 as compared to a net loss of $6.7 million in 2021 and a net loss of $0.87 million in 2020, it is uncertain whether
we may be able to continue to achieve profitability in the future. Our future revenue and operating cash flows may be further affected
by various pending lawsuits, legal claims, proceedings, arbitrations, and bankruptcy proceedings.
Although we are currently trying to implement
our business strategies in order to manage the future growth of our business, we cannot assure our current efforts may achieve the anticipated
results and we may continue to incur operating losses in the near term. We cannot guarantee that going forward we will operate profitably.
In order to achieve profitability, among other factors, management must successfully execute our growth and operations in the markets
on which we are focused. If we are unable to successfully take necessary steps, we may be unable to sustain or increase our profitability
in the future.
We terminated the lease of the Jiaozhou plant
in 2021, and as of December 31, 2022, we no longer have any petfood production facilities because the remaining facility owned by us was
frozen by the court as a result of Tiandihui's bankruptcy proceeding. In addition, we discontinued our petfood manufacturing business
segment in the first quarter 2023 in order to focus on our restaurant segment.
37
We face substantial challenges in our effort to
resume normal business activities. Our future growth will place a significant strain on our sales and marketing capacities, administrative
and operating infrastructure, and other resources. We need to evaluate and identify suitable strategic or acquisition opportunities, complete
such transactions on commercially favorable terms, or successfully integrate business operations, infrastructure and management philosophies
of acquired restaurant businesses and companies, resolve the substantial litigation and judgements to which we are subject and raise substantial
capital. There may be particular complexities, regulatory or otherwise, associated with our expansion into new markets, and our strategies
may not succeed beyond our current markets. If we are unable to effectively address these challenges, our ability to execute acquisitions
as a component of our long-term strategy will be impaired, which could have an adverse effect on our growth or our ability to function
as a going concern. We also need to expand our customer base, refine our operational, financial and management controls and reporting
systems and procedures. If we fail to efficiently manage this expansion of our business, our costs and expenses may increase more than
anticipated and we may not successfully attract a sufficient number of customers in a cost-effective manner, respond to competitive challenges,
or otherwise execute our business plans. In addition, we may, as part of carrying out our growth strategies, adopt new initiatives to
implement new pricing models and strategies. We cannot assure you that these initiatives may achieve the anticipated results.
Our ability to effectively implement our strategies
and sustain and manage future growth of our business will depend on a number of factors, including our ability to: (i) effectively market
our restaurants to potential customers; (ii) develop and acquire new restaurants and related businesses; (iii) effectively recruit, train
and motivate a large number of new employees; (iv) improve our operational, financial and management controls and efficiencies; (v) raise
substantial amounts of capital; and (vi) make sound business decisions. These activities require significant capital expenditures and
investment of valuable management and financial resources, and our growth will continue to place significant demands on our management.
There are no guarantees that we will be able to effectively manage any future growth in an efficient, cost-effective and timely manner,
or at all. If we do not effectively manage the growth of our business and operations, our reputation, results of operations and overall
business and prospects, and our ability to continue as a going concern could be negatively impacted.
As of December 31, 2022, we had the following
pending lawsuits, legal claims, proceedings and arbitrations:
●
Legal claims by vendors and lenders. Since November 2019, the Company
    has been a subject of 57 lawsuits by its raw material supplies, printing and packaging supplies, transportation companies and other
    vendors. The claims raised in these lawsuits pertain to the Company's non-payment of various invoices for supplier and vendor
    services rendered, with related interest and costs. As of the date of this report, in 44 cases, the creditors have reached civil
    conciliation letters with our company, and in 9 cases, the court has issued civil judgments. With respect to the remaining 4 cases,
    the plaintiffs withdrew the lawsuit because of lack of evidence. The mediation and judgment involved total claims of RMB13.86 million
    (USD$2.12 million). Such liabilities have been accrued and reflected in the consolidated financial statements for the year ended
    December 31, 2020. On March 13, 2021, a land use right and a factory building on the land owned by Tiandihui were auctioned by the
    court for $5,098,461 (RMB33.14 million). On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong
    Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui,
    and it entered into bankruptcy proceedings.  Accordingly, these legal claims are now subject to the bankruptcy proceedings.
    As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to
    be completed by the end of 2023.
●
On December 2, 2019, QLRE, filed a civil lawsuit
against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The Company entered into a loan agreement with QLRE in 2018 and borrowed RMB20 million
(USD3.18 million) from QLRE in connection with purchase of a factory. The loan was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang.
The Company failed to make repayment to QLRE. On March 4, 2020, the Court ordered that: (i) the Company repay QLRE the principal amount
of RMB20 million plus interest of RMB 550,000 accrued as of October 31, 2019. The court ordered that the payment be made within 10 business
days after the effective date of the court ruling, and also ordered that the Company pay interest at the rate of 2% per month for the
period from the date of November 1, 2019 to the date of full discharge of the debt, as well as the litigation fee of RMB77,000 (USD$11,933).
If the debt was not repaid within the required timeframe, interest doubled from the effective date of court order until the date of full
discharge of the debt.  As of December 31, 2021, we have satisfied the repayment to QLRE. On March 16, 2022, the People's
Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application
of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to
the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed
and are expected to be completed by the end of 2023
38
●
On
                                            January 15, 2020, CCB, initiated a civil claim against Tiandihui, Rongfeng Cui, and Yanjuan
                                            Wang. The plaintiff alleged that it executed a loan agreement with the Company in the amount
                                            of RMB19.93 million (USD3.08 million) for the purchase of manufacturing facility and the
                                            associated land use right located at Lingang Economic Development Zone, Huangdao District,
                                            Qingdao, Shandong Province, People's Republic of China. Rongfeng Cui and his wife,
                                            Yanjuan Wang, co-signed for this loan as personal guarantors subject to joint and several
                                            liability in connection with the loan. The loan with CCB was guaranteed by Rongfeng Cui and
                                            Yanjuan Wang,and secured by a pledge by the aforementioned manufacturing facilities and associated
                                            land use right. On April 14, 2020, the Court has ordered among other things that the Company
                                            repay RMB19.93 million (USD3.25 million) of principal and accrued interest to CCB, and to
                                            sell the mortgaged property. On March 13, 2021, the land and factory buildings on the land
                                            owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million), of which,
                                            $3,192,827 (RMB21.14 million) has been used to repay loan principal and accrued interest
                                            to CCB. The repayment was completed by April 2021.
●
On
                                            November 11, 2019, SPDB filed a civil lawsuit against Tiandihui, Saike, Gaochuang, Rongfeng
                                            Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB to borrow an
                                            aggregate of RMB4.85 million (USD0.75 million) from SPDB for working capital purpose. The
                                            Company failed to repay the debt upon maturity. The borrowing from SPDB was guaranteed by
                                            Rongfeng Cui and Yanjuan Wang, and secure by a pledge of land use right and real property
                                            of Saike and certaim real property owned by Rongfeng Cui and Yanjuan Wang. The Company failed
                                            to make repayment to SPDB on the maturity date. On October 24, 2020, the court has ordered
                                            the Company to repay SPDB the principal owed plus interest at the annual interest rate of
                                            18.25%. The payment was required to be made within 10 business days after the effective date
                                            of the order. If the debt was not paid within the required timeframe, interest doubled from
                                            the effective date of the court order until the date of full discharge of the debt.  The
                                            Company was also required to pay litigation fees in the amount of  RMB156,880 (USD 24,312).
                                             As of December 31, 2021, we had not satisfied the repayment to SPDB. On March 16, 2022,
                                            the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil
                                            ruling and announced the acceptance of creditors' application of bankruptcy liquidation
                                            of Tiandihui and it entered into bankruptcy proceedings. Accordingly, these legal claims
                                            are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date
                                            of this filing, the bankruptcy proceedings have not been completed and are expected to be
                                            completed by the end of 2023.
●
On
                                            December 10, 2019, Gaochuang initiated a civil claim against Tiandihui, Saike, Rongfeng Cui,
                                            and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB for bank acceptance
                                            draft and Gaochuang executed the guarantee of SPDB bank acceptance deposit on behalf of the
                                            Company in the amount of RMB 1.2 million (USD 0.19 million). The Company failed to repay
                                            the RMB 1.2 million ($0.19 million) deposit to Gaochuang upon the bank acceptance draft maturity
                                            date. The deposit made by Gaochuang was guaranteed by certain of the Company's fixed
                                            assets and patents.  On December 29, 2020, the court ordered the Company to repay the
                                            RMB 1.2 million ($0.19 million) deposit to Gaochuang and the interest at the annual interest
                                            rate of 4.15%. The payment was required to be made within 10 business days after the effective
                                            date of the court order. The court order also provided that if the debt was not paid within
                                            the required timeframe, interest doubled from the effective date of court order until the
                                            date of full discharge of the debt.  The court order also obligated the Company
                                            to bear litigation fees of RMB83,127(USD 12,882). As of December 31, 2021, we had not satisfied
                                            the repayment to Gaochuang. On March 16, 2022, the People's Court of Huangdao District,
                                            Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors'
                                            application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings.
                                            Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December
                                            31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed
                                            and are expected to be completed by the end of 2023.
39
●
On May 6, 2020, the Postal Savings Bank of China
Limited Weihai Road Sub-branch of Qingdao North District (hereinafter referred to as Postal Savings) filed a civil lawsuit against Tiandihui,
Rongfeng Cui and Yanjuan Wang. The Company entered into two loan agreements with Postal Savings in 2018 and 2019, respectively, and borrowed
RMB9.9 million ($1.53 million) in aggregate. The loans were guaranteed by Rongfeng Cui and Yanjuan Wang, and were secured by a pledge
of real property owned by the Company and real property owned by Rongfeng Cui. The Company failed to pay its debt to Postal Savings when
it was due. In June 2020, the court ordered the Company to repay to Postal Savings the principal and interest under the loan, and to reimburse
Postal Savings for the litigation fees incurred by Postal Savings.  If the court decide to auction the pledged real properties,
Postal Savings shall have the priority right of the repayment from the auction proceeds. As of December 31, 2021, we had not made the
repayment to Postal Savings. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a
civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed are expected to be completed by the end of 2023.
●
Labor arbitration claims by former employees
. Due to decreased business scale and the impact of COVID-19, the Company dismissed certain employees in 2019 and 2020 and only maintained 51 full-time employees, during fiscal year 2022 and as of December 31, 2022. As a result of the employee layoffs, certain of the Company's former employees commenced arbitration proceedings against the Company under applicable labor rules and standards, claiming, among others, lost wages, severance payments and/or social security obligations totaling RMB3.68 million (USD0.56 million). There were 98 labor arbitrations, of which 6 cases has been settled and the trial court has issued decisions on the remaining 92 cases. The Company accrued approximately $0.4 million contingent liabilities in other current liabilities on the consolidated balance sheet as of December 31, 2019 and recognized contingent losses of approximately $0.4 million for the year ended December 31, 2019. Upon the issuance of rulings in these cases, the Company further accrued approximately $0.1 million wage and/or severance payables in other current liabilities on the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $0.1 million for the year ended December 31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were actioned by the court for $5,098,461 (RMB 33.14 million). In 2021, we have paid RMB3.73 million to substantially settle the labor arbitration cases with our former employees. We only have RMB0.5 million ($0.08 million) remaining severance payables to them as of December 31, 2021. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
Nasdaq Compliance Confirmation and a Panel
Monitor
On February 23, 2022, the Company received
a notification letter from Nasdaq Listing Qualifications advising the Company that based upon the closing bid price for the Company's
common shares for the past 30 consecutive business days, the Company no longer met the minimum $1.00 per share Nasdaq continued
listing requirement set forth in Nasdaq Listing Rule 5550(a)(2). The notification also stated that the Company would be provided 180 calendar
days, or until August 22, 2022, to regain compliance with the foregoing listing requirement. To do so, the bid price of the Company's
common stock must close at or above $1.00 per share for a minimum of 10 consecutive business days prior to that date.
On June 14, 2022, our Board approved to effect
a reverse stock split of our common shares at the ratio of one-for-twenty with the market effective date of June 14, 2022. The
objective of the reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2) and maintain
its listing on Nasdaq. As a result of the reverse stock split, each twenty common shares outstanding automatically combined and converted
to one issued and outstanding common share without any action on the part of the shareholder. Subsequent to the reverse stock split, Nasdaq
determined that for 10 consecutive business days, the closing bid price of the Company's common shares was at $1.00 per share or
greater. On June 29, 2022, Nasdaq notified the Company that it has regained compliance with Listing Rule 5550(a)(2) and closed the matter.
However, if our shares are listed on the NASDAQ
Capital Market but are delisted from the NASDAQ Capital Market at some later date, our shareholders could find it difficult to sell our
shares. In addition, if our common shares are delisted from the NASDAQ Capital Market at some later date, we may apply to have our common
shares quoted on the Bulletin Board or in the "pink sheets" maintained by the National Quotation Bureau, Inc. The Bulletin
Board and the "pink sheets" are generally considered to be less efficient markets than the NASDAQ Capital Market. In addition,
if our common shares are not so listed or are delisted at some later date, our common shares may be subject to the "penny stock"
regulations. These rules impose additional sales practice requirements on broker-dealers that sell low-priced securities to persons other
than established customers and institutional accredited investors and require the delivery of a disclosure schedule explaining the nature
and risks of the penny stock market. As a result, the ability or willingness of broker-dealers to sell or make a market in our common
shares might decline. If our common shares are delisted from the NASDAQ Capital Market at some later date or become subject to the penny
stock regulations, it is likely that the price of our shares would decline and that our shareholders would find it difficult to sell their
shares.
40
Recent Private Placement
On July 26, 2022, we completed a private placement
of securities, and entered into a securities purchase agreement with eight accredited investors pursuant to which we sold to the investors
an aggregate 4,000,000 of our common shares, at a price of $1.50 per share and warrants at a price of $0.01 per warrant to purchase
up to an aggregate 4,000,000 of our common shares, for gross proceeds of $6 040 000 and received net proceeds of $6,017,781 after deducting
fees and expenses related to the transaction. The warrants have an exercise price of $2.44 per share, and a term of two years.  The
warrants are immediately exercisable upon issuance and have a cashless exercise feature. The securities were sold without registration
under the Securities Act of 1933 in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving
a public offering and rules promulgated under the Securities Act as sales to accredited investors. The Company's intention was to
use the proceeds of this offering for working capital and general working purposes. There were no discounts or brokerage fees associated
with this offering.
Overview
We started our company in 2002 in Qingdao, Shandong
Province, PRC with a single mission of becoming a a producer of high-quality petfood for pet owners in China and worldwide. Due to the
sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and our inability to make
bank loan repayments upon maturity, we suspended our production and normal business operations and we were involved in certain legal proceedings
beginning in November 2019. Although we resumed our operations in May 2020 factors including the Covid-19 pandemic, the increase in cost
of raw materials required for production; accepting less orders in an attempt to avoid unprofitable orders and customers; and decreased
demand for sales of petfood, led to a decrease in our petfood revenue from $0.8 million in 2020, to $0.47 million in 2021 and to only
$0.02 million in 2022. Additionally, our remaining petfood manufacturing facility was frozen by the court and became subject to Tiandihui's
bankruptcy proceeding in 2022. Accordingly, we sought strategic alternatives to the petfood industry and entered the restaurant segment
on October 31, 2021, when we acquired 51% equity interests of Far Ling's Inc and 100% equity interests of Bo Ling's Chinese
Restaurant, Inc. This resulted in an increase of $0.6 million and $3.1 million in food service revenue for the years ended December 31,
2021 and 2022, respectively. In addition, we decided to discontinue our petfood manufacturing business segment in the first quarter 2023
due to the above operational challenges and focus on our restaurant segment.
Revenues from continuing operations
Historically before 2019, our revenue primarily
was generated from sales of our petfood products to customers mainly through our overseas and domestic distribution agents, and online
sales through various electronic commerce platforms. Revenue consists of the invoiced value for the sales, net of value-added tax ("VAT"),
business tax, applicable local government levies and returns. Due to the sharp rise in market price of raw materials, the lack of operational
efficiency of our production facilities and our inability to make bank loan repayment upon maturity, we suspended our production and normal
business operations, and we were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations
in May 2020 factors including the COVID-19 pandemic, the increase in cost of raw materials required for production; accepting less
orders in an attempt to avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a decrease in
our petfood revenue from $0.8 million in 2020, to $0.47 million in 2021 and to only $0.02 million in 2022. Additionally, our remaining
petfood manufacturing facility was frozen by the court and became subject to Tiandihui's bankruptcy proceeding in 2022. We decided
to discontinue our petfood manufacturing business segment in the first quarter 2023 due to the above operational challenges and focus
on our restaurant segment.
On October 31, 2021 we acquired 51% equity interests
of Far Ling's Inc and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. and started our restaurant business. This
resulted in an increase of $0.6 million and $3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively.
41
The following factors affected the revenues we
derived from our operations from 2020 to 2022.
COVID-19 Impact
: In December 2019, a novel
strain of coronavirus was reported in Wuhan, China. On March 11, 2020, the World Health Organization categorized it as a pandemic. In
response to the COVID-19 outbreak, governments around the global have implemented measures such as lockdowns, travel restrictions, and
closures of businesses and schools. As a result of the COVID-19 outbreak, we have experienced suspension of operations, interruption of
supply chain and decline in sales orders by our customers. Our businesses, results of operations, financial position and cash flows were
adversely affected in fiscal years 2020 to 2022, including but not limited to material negative impact to our total revenues, slower collection
of account receivables and significant disruptions of our supply chains. On October 31, 2021, we acquired 51% equity interests of Far
Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $0.6 million and
$3.1 million in food service revenue for the years ended December 31, 2021 and 2022, respectively. However, our revenue growth may be
further affected by the ongoing COVID-19 pandemic. We are currently trying to implement our business strategies in order to manage the
future growth of our business, we cannot assure our current efforts may achieve the anticipated results and we may continue to incur operating
losses in the near term. We conduct our restaurant business in the United States. In response to the Covid-19 outbreak, many state and
local authorities had mandated the temporary closure of non-essential businesses and dine-in restaurant activity or limited indoor dining
capacities. COVID-19 and the government measures taken to control caused a significant disruption to our business of Bo Lings. As of the
filing date of this Annual Report on Form 20-F, we had Bo Lings operating at 100% indoor dining capacity. However, there can be no assurance
that developments with respect to the COVID-19 pandemic and government measures taken to control it will not adversely affect our operations
and financial results. We cannot guarantee that going forward we will operate profitably. In order to achieve profitability, among other
factors, management must successfully execute our growth and operations in the markets on which we are focused. If we are unable to successfully
take necessary steps, we may be unable to sustain or increase our profitability in the future.
Our ability to resolve our debt burden and
limited production capacity to support our future revenue growth.
We are currently facing challenges to settle lawsuits related to
defaulted loan payments to various financial institutions mentioned above. Our petfood manufacturing capacity also decreased from 8.0
tons per day in 2019 to 4.6 tons per day in 2021 and to no tons as of the date of this filing because our remaining petfood manufacturing
facility was frozen by court order and currently subject to a bankruptcy proceeding. We decided to discontinue our petfood manufacturing
business segment in the first quarter 2023 due to the above operational challenges and focus on our restaurant segment. Our future market
expansion, business recovery and revenue growth may need significant amount of capital expenditure. If we cannot resolve current working
capital shortage, debt burden and limited production capacity, we may not be able to support our future revenue growth.
Our ability to maintain our competitive advantages.
Historically, we provided more than 200 different variety of pet snack products to our targeted customers to satisfy their needs. Due
to the sharp rise in market price of raw materials, the lack of operational efficiency of our production facilities and our inability
to make bank loan repayments upon maturity, we suspended our production and normal business operations and we were involved in certain
legal proceedings beginning in November 2019. Although we resumed our operations in May 2020 factors including the COVID-19 pandemic,
the increase in cost of raw materials required for production; accepting less orders in an attempt to avoid unprofitable orders and
customers; and decreased demand for sales of petfood, led to a decrease in our petfood revenue from $0.8 million in 2020, to $0.49
million in 2021 and to only $0.03 million in 2022. Additionally, our remaining production facility was frozen by the court and became
subject to a bankruptcy proceeding in 2022. We decided to discontinue our petfood manufacturing business segment in the first quarter
2023 due to the above operational challenges and focus on our restaurant segment. However, the market conditions and consumer preferences
change rapidly. If we fail to maintain our reputation and competitive advantages, customers demand for our dining products and services
could decline.
In addition, competition in the restaurant
industry is intense.
We face sustained, intense competition from traditional, fast casual and other competitors, which may include
many non-traditional market participants such as convenience stores, grocery stores, coffee shops and online retailers. We expect our
environment to continue to be highly competitive, and our results in any particular reporting period may be impacted by a contracting
IEO segment or by new or continuing actions, product offerings or consolidation of our competitors and third-party partners, which may
have a short-term or long-term impact on our results. We compete on the basis of product choice, quality, affordability, service and location.
In particular, we believe our ability to compete successfully in the current market environment depends on our ability to improve existing
products, successfully develop and introduce new products, price our products appropriately, deliver a relevant customer experience, manage
the complexity of our restaurant operations, manage our investments in technology and modernization, and respond effectively to our competitors'
actions or offerings or to unforeseen disruptive actions. There can be no assurance these strategies will be effective, and some strategies
may be effective at improving some metrics while adversely affecting other metrics, which could have the overall effect of harming our
business.
42
Loss of key personnel.
Our revenue
was derived from our competitive advantages in our products. We rely heavily on the expertise and leadership of our senior management
to maintain our core competence. The loss of the service of any of our key personnel could adversely affect our business.
Macro-economic conditions.
Our business,
financial condition and results of operations may be materially adversely affected by a challenging economic climate, including adverse
changes in interest rates, volatile commodity markets and inflation, contraction in the availability of credit in the market and reductions
in consumer spending. A macroeconomic downturn, which decreases the disposable personal income, may contribute to decreased sales of our
petfood products and our restaurant business.
Costs and Expenses from continuing operations
Our costs and expenses primarily include the following:
Costs of revenues
. Cost of revenues of
our petfood business consists primarily of direct raw materials, direct payroll of workshop staff, utility and supply costs consumed in
the manufacturing process, manufacturing labor, depreciation expense and overhead expenses necessary to manufacture finished goods as
well as distribution costs such as inbound freight charges. Cost of revenues of our restaurant business consist primarily of food and
packaging costs, payroll and employee benefit costs, store lease and occupancy costs and depreciation and amortization costs.
Selling, general and administrative expenses
.
Selling, general and administrative expenses consist primarily of compensation expense for our corporate staff in supporting departments,
communication costs, gasoline, shipping and handling cost, welfare expenses, education expenses, professional fees (including consulting,
audit and legal fees), travel and business hospitality expenses.
Income tax expense.
We account for
income taxes under the provisions of Section 740-10-30 of the FASB Accounting Standards Codification, which is an asset and liability
approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that
have been recognized in the financial statements or tax returns.
The following factors affect our cost of revenues
and expense.
Price fluctuation of raw materials.
For
our petfood business
,
the raw materials purchase costs significantly impact our cost of goods sold. Any significant fluctuation
of the market price of raw materials may negatively affect our operating results. Even if our current materials supply is relatively stable,
we could be impacted by material price fluctuation in coming years. For our restaurant business, food and beverage purchase costs and
labor costs also significantly impact our costs of goods sold.
Our ability to resolve our current poor credit
resulting from our legal proceedings with our vendors and suppliers
. Our cost of revenues is impacted by whether we can negotiate
favorable purchase price and credit terms with our suppliers and vendors, including but not limit to raw material supplies, printing and
packaging supplies, transportation companies and other vendors. Since November 2019, we have been a subject of 57 lawsuits by our suppliers
and vendors. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and
announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui. Accordingly, these legal claims are now
subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not
been completed and are expected to be completed by the end of 2023.
43
Prevailing salary levels
. Our cost of revenues
is impacted by prevailing salary levels. Although we have not been subject to significant wage inflation, a significant increase in the
market rate for wages could harm our operating results and our operating margin. Our ability to attract, retain, and expand our senior
management and our professional and technical staff is an important factor in determining our future success. From time to time, it may
be difficult to attract and retain qualified individuals with the required expertise at a fair wage.
Depreciation
. Our depreciation expenses
are mainly driven by the net value of machinery equipment, motor vehicles, buildings, lease restaurant store and other items. Depreciation
of property, plant and equipment is calculated based on cost, less their estimated residual value, if any, using the straight-line method
over estimated useful life from 5 years to 50 years. Any change of the depreciation accounting policy or impairment of our property may
affect our operating results.
Shipping and handling expense.
Our
shipping and handling expense includes domestic freight, overseas freight, domestic express shipping fee. In order to reduce shipping
and handling cost, we are trying to negotiate with and establish closer cooperation with several shipping companies providing express
shipping services in order to lock favorable fee rates and reduce the domestic express fees.
Research and Development expense.
We did not have research and development spending
in 2021 and 2022, we may not incur additional R&D expenses in the coming years due to our last petfood production facility being frozen
by the court and becoming subject to a bankruptcy proceeding in 2022, and we decided to discontinue our petfood manufacturing business
segment in the first quarter 2023.
Results of Operations
For the years ended December 31, 2022, 2021
and 2020
December 31
2022 vs
2021 vs
2022
2021
2020
2021
2020
$
$
$
Net revenues from continuing operations
3,098,733
1,081,095
622,801
186.63
%
73.59
%
Cost of revenues from continuing operations
2,046,200
769,967
449,694
165.75
%
71.22
%
Gross profit
1,052,533
311,128
173,107
238.30
%
79.73
%
Gross margin
33.97
%
28.78
%
27.79
%
N/A
N/A
Selling expense
91,370
74,278
85,744
23.01
%
-13.37
%
General and administrative expenses
4,002,346
3,541,872
583,594
13.00
%
506.91
%
Impairment of goodwill
-
355,570
-
-100.00
%
100
%
Loss from operations
(3,048,016
)
(3,660,592
)
(496,231
)
16.73
%
-637.68
%
Revenues from continuing operations
.
Our revenue from continuing operations were $3,098,733,
$1,081,095 and $622,801 for the years ended December 31, 2022, 2021 and 2020, respectively. Our total revenue from continuing operations
increased by $2,017,638 or 186.63% when comparing 2022 to 2021 and increased by $458,294 or 73.59% when comparing 2021 to 2020.
44
The following table displays our revenue from
our continuing operations by different marketing channels.
December 31
2022 vs
2021 vs
2022
2021
2020
2021
2020
$
$
$
Oversea sales
-
134,896
226,385
-100
%
-40
%
Domestic sales
25,849
308,267
382,497
-92
%
-19
%
Electronic commerce sales
-
34,590
16,708
-100
%
107
%
Restaurant revenue
3,074,007
606,463
-
407
%
100
%
Less: Sale tax and addition
(1,123
)
(3,121
)
(2,789
)
-64
%
12
%
Total revenues from continuing operations
3,098,733
1,081,095
622,801
187
%
74
%
Year Ended December 31, 2022 Compared to Year
Ended December 31, 2021
For the year ended December 31, 2022, for revenue
generated from petfood sales of our continuing operations, our domestic sales decreased by $282,418 or 92%, and there was no e-commerce
sales and overseas sales of petfood products. However, revenue from our restaurant business segment in the United States increased by
$2,467,544 or 407%. As a result, our total revenue increased by $2,017,638 or 187% when comparing 2022 to 2021.
The decrease of petfood sales revenue of our continuing
operations in 2022 was mainly due to the following factors: Due to the sharp rise in market price of raw materials, the lack of operational
efficiency of our production facilities and our inability to make bank loan repayments upon maturity, we suspended our production and
normal business operations and we were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations
in May 2020 factors including the COVID-19 pandemic, the increase in cost of raw materials required for production; accepting less
orders in an attempt to avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a decrease in
our petfood revenue from $0.47 million in 2021 and to only $0.02 million in 2022. Additionally, our remaining petfood production facility
was frozen by the court and became subject to a bankruptcy proceeding in 2022. We decided to discontinue our petfood manufacturing business
segment in the first quarter 2023 due to the above operational challenges
On the other hand, revenue from our restaurant
business segment increased by $2,467,544 or 407% when comparing 2022 to 2021. On October 31, 2021, we acquired 51% equity interests of
Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. Revenue from our restaurant business primarily
includes food and beverage sales of $606,463 for the last two months in 2021 after we acquired the business on October 31, 2021 and include
12 months of sales in 2022.
As a result of the above, our total revenues from
continuing operations for the fiscal year 2022 increased as compared with the fiscal year 2021.
Year Ended December 31, 2021 Compared to Year
Ended December 31, 2020
For the year ended December 31, 2021, for revenue
generated from petfood sales of our continuing operations, our overseas and domestic sales decreased by $91,489 and $74,230, respectively,
and our e-commerce sales increased by $17,882 from the year ended December 31, 2020. However, our revenue from restaurant business in
the United States increased by $606,463 or 100%. As a result, our total revenue increased by $458,294 or 74% when comparing 2021 to 2020.
The decrease of petfood revenue of our continuing
operations in 2020 was mainly due to the following facts: (1) Due to the continuous development of the COVID-19, we had to close the factory
and stop production for a period of time, which caused the delay of orders and affected customers' trust in us. Therefore, some
customers canceled their orders to the company, and the company's sales revenue decreased greatly; (2) The purchasing cost of raw
materials required for production has risen to a certain extent; (3) stop taking unprofitable orders.
On the other hand, our revenue from restaurant
business increased by $606,463 or 100% when comparing 2021 to 2020. On October 31, 2021, we acquired 51% equity interests of Far Ling's
Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. Revenue from our restaurant business primarily include food
and beverage sales of $606,463 for the last two months in 2021 after we acquired the business on October 31, 2021.
As a result of the above, our total revenues from
continuing operations for the fiscal year 2021 increased as compared with the fiscal year 2020.
45
The revenue generated from different product lines
from our continuing operations are set forth as following:
December 31
2022 vs
2021 vs
2022
2021
2020
2021
2020
$
$
$
Pet chews
8,367
46,112
59,096
-82
%
-22
%
Dried pet snacks
8,005
293,325
317,392
-97
%
-8
%
Wet canned petfood
1,290
10,760
84,117
-88
%
-87
%
Dental health snacks
550
6,127
19,915
-91
%
-69
%
Baked pet biscuits
-
-
3,132
N/A
-100
%
Restaurant revenue
3,074,007
606,463
-
407
%
100
%
Others
7,637
121,429
141,938
-94
%
-14
%
Less: Sale tax and addition
(1,123
)
(3,121
)
(2,789
)
-64
%
12
%
Total revenues from continuing operations
3,098,733
1,081,095
622,801
187
%
74
%
Year Ended December 31, 2022 Compared to Year
Ended December 31, 2021
Our total revenue from continuing operations increased
by $2,017,638 or 187% when comparing 2022 to 2021, among which, revenue generated from pet chews decreased by $37,745 or 82%, revenue
from dried pet snacks decreased by $285,320 or 97%, revenue generated from wet canned petfoods decreased by $9,470 or 88%, revenue generated
from dental health snacks decreased by $5,577 or 91%, from the year ended December 31, 2021 to the year ended December 31, 2022, respectively.
In addition, revenue generated from dental health snacks decreased by $6,127 or 100%, from the year ended December 31, 2021 to the year
ended December 31, 2022. The decrease in petfood sales was primarily due to our inability to fulfill customer orders on a timely basis
due to disruption of supply chain and logistics caused by the COVID-19, as well as decrease of sales order, and our unfavorable selling
price which led to our products became less attractive to customers. In addition, our petfood manufacturing activities were suspended
in 2022 because our remaining petfood production facility was frozen by the court and became subject to a bankruptcy proceeding. On the
other hand, on October 31, 2021, we acquired 51% equity interests of Far Ling's Inc and 100% equity interests of Bo Ling's
Chinese Restaurant, Inc. This resulted in an increase of $2,467,544 in restaurant revenue in 2022 from food and beverage sales to customers
as compared to 2021.
Year Ended December 31, 2021 Compared to Year
Ended December 31, 2020
Our total revenue from continuing operations increased
by $458,294 or 74% when comparing 2021 to 2020, among which, revenue generated from pet chews decreased by $12,984 or 22%, revenue from
dried pet snacks decreased by $24,067 or 8%, revenue generated from wet canned petfoods decreased by $73,357 or 87%, from the year ended
December 31, 2020 to the year ended December 31, 2021, respectively. In addition, revenue generated from dental health snacks decreased
by $13,788 or 69%, from the year ended December 31, 2020 to the year ended December 31, 2021. The decrease in petfood sales was primarily
due to our inability to fulfill customer orders on a timely basis due to disruption of supply chain and logistics caused by the COVID-19,
as well as decrease of sales order, and our unfavorable selling price which led to our products became less attractive to customers. On
the other hand, on October 31, 2021, we acquired 51% equity interests of Far Ling's Inc and 100% equity interests of Bo Ling's
Chinese Restaurant, Inc. This resulted in an increase of $606,463 in restaurant revenue when we sold food and beverage to customers.
The revenue generated from different countries
from our continuing operations are set forth as following:
December 31
2022 vs
2021 vs
2022
2021
2020
2021
2020
$
$
$
South Korea
-
37,320
34,378
-100
%
9
%
China
25,849
342,857
382,497
-92
%
-10
%
United Kingdom
-
-
-
N/A
N/A
%
Germany
-
-
-
N/A
N/A
%
U.S.
3,074,007
606,463
-
407
%
100
Other countries
-
97,576
208,715
-100
%
53
%
Less: Sale tax and addition
(1,123
)
(3,121
)
(2,789
)
-64
%
12
%
Total revenues from continuing operations
3,098,733
1,081,095
622,801
187
%
74
%
"Other countries" is comprised of
all countries whose revenues, individually, were less than 10% of the Company's revenues.
46
Year Ended December 31, 2022 Compared
to Year Ended December 31, 2021
Overall, in terms of revenue from our continuing
operations, our petfood sales to the China domestic market and overseas market both significantly decreased in 2022 as compared to 2021,
mainly due to decreased sales volume of our products as affected by the negative impact of COVID-19 as discussed above, as well as decrease
in sales orders, and our unfavorable selling price. On the other hand, revenue from United States increased by $2,467,544 in 2022 as compared
to 2021 attributable to the restaurant business we acquired in October 2021 and we had 12 months operations in 2022 as compared to only
2 months operations in 2021.
Year Ended December 31, 2021 Compared to Year
Ended December 31, 2020
Overall, in terms of revenue from our continuing
operations, our petfood sales to China domestic market and overseas market both significantly decreased in 2021 as compared to 2020,
mainly due to decreased sales volume of our products as affected by the negative impact of COVID-19 (coronavirus) as discussed above,
as well as decrease in sales orders, and our unfavorable selling price. On the other hand, revenue from United States increased by $606,463
in 2021 as compared to 2020 attributable to the restaurant business we acquired in October 2021.
Cost of revenues from continuing operations
Our cost of revenues from our continuing operations
is primarily comprised of the cost of our raw materials, labor and overhead costs. Our cost of revenues from continuing operations, increased
by $1,276,233 or 165.75% for the year ended December 31, 2022 as compared to the year ended December 31, 2021, primarily due to increased
food and beverage costs, labor costs and overhead costs associated with our restaurant business. Cost of revenues associated with our
petfood sales was immaterial in 2022. Our cost of revenues as a percentage of revenue was 66.03% and 71.21% for the years ended December
31, 2022, and 2021, respectively.
Our cost of revenues is primarily comprised of
the cost of our raw materials, labor and factory overhead. Our cost of revenues from continuing operations, increased by $320,273 or 71.22%
for the year ended December 31, 2021 as compared to the year ended December 31, 2020. On October 31, 2021, we acquired 51% equity interests
of Far Ling's Inc. and 100% equity interests of Bo Ling's Chinese Restaurant, Inc. This resulted in an increase of $606,463
in food service revenue and related costs. Our cost of revenues as a percentage of revenue was 71.22% and 72.21% for the years ended December
31, 2021, and 2020, respectively.
Gross margin from continuing operations
Our gross margin from continuing operations was
33.97% for the year ended December 31, 2022, compared with gross margin of 28.78% for the year ended December 31, 2021. The improvement
in gross margin was mainly due to increased gross margin of our restaurant business and changes in related sales mix of food and beverage
products in 2022 as compared to 2021.
Our gross margin was 28.78% for the year ended
December 31, 2021, compared with gross margin of27.79% for the year ended December 31, 2020. The improvement in gross margin was
mainly due to change in sales mix and more high margin petfood products being sold in 2021 as compared to 2020, and also affected by
increased gross margin from our restaurant business.
Operating expenses from continuing operations
Operating expenses from our continuing operations
were $4,100,549, and $3,971,720 for the years ended December 31, 2022 and 2021, respectively, an increase of $128,829, or 3.24%.
The ratio of operating expenses as a percentage of revenue decreased from 367.38% for the year ended December 31, 2021 to 132.33% for
the year ended December 31, 2022.
Selling expense from our continuing operations
was $91,370 and $74,278 for the years ended December 31, 2022, and 2021, respectively, an increase of $17,092 or 23.01%. The increase
in our selling expense was in line with our increased restaurant business segment revenue in 2022. As our revenue increased, our marketing
campaign related costs and sales commission paid to our sales teams increased in 2022 as compared to 2021.
General and administrative expenses from our continuing
operations was $4,002,346, and $3,541,872 for the years ended December 31, 2022 and 2021 respectively, representing an increase of $460,474,
or 13.00%. The main reason for the increase was mainly due to increased depreciation and amortization expenses related to our restaurant
business.
47
Operating expenses from continuing operations
were $3,971,720, and $669,338 for the years ended December 31, 2021 and 2020, respectively, an increase of $3,302,382, or 493.38%.
The ratio of operating expenses as a percentage of revenue increased from 107.47% for the year ended December 31, 2020 to 367.38% for
the year ended December 31, 2021.
Selling expense from continuing operations was
$74,278 and $85,744 for the years ended December 31, 2021, and 2020, respectively, a decrease of $11,466 or 13.37%. The decrease in our
selling expense was in line with our decreased petfood revenue in 2021. As our revenue declined, our distribution costs, sales promotion
and marketing campaign related costs and sales commission paid to our sales teams decreased in 2021 as compared to 2020.
General and administrative expenses from continuing
operations was $3,541,872, and $583,594 for the years ended December 31, 2021 and 2020 respectively, representing an increase of $2,958,278,
or 506.91%. The main reason for the increase was mainly due to the company's payment of certain legal costs, an increase in consulting
service fees and increased depreciation and amortization expenses related to our restaurant business.
Impairment of goodwill was $0, $355,570 and $0
for the years ended December 31, 2022, 2021 and 2020, respectively. There was no such goodwill impairment in 2022 and 2020. In connection
with our acquisition of restaurant business, we recognized a goodwill of $355,570 as of the acquisition date. However, due to our significant
net loss in fiscal year 2021, goodwill of $355,570 has been fully impaired for the year ended December 31, 2021.
Loss from operations from continuing operations
.
Our loss from operations associated with our continuing
operations was $3,048,016 for the year ended December 31, 2022, while our loss from operations was $3,660,592 for the year ended December
31, 2021. Our operating loss as a percentage of total revenues was negative 98.36%, and negative 338.60% for the years ended December
31, 2022 and 2021, respectively. The continuous loss from operation was mainly due to increased operating expenses in 2022.
Our loss from operations associated with our continuing
operations was $3,734,079 for the year ended December 31, 2021, while our loss from operations was $496,231 for the year ended December
31, 2020. Our operating loss as a percentage of total revenues was negative 370.59%, and negative 79.68% for the years ended December
31, 2021 and 2020, respectively. The continuous loss from operation was mainly due to increased operating expenses in 2021.
Income taxes expense from continuing operations
.
Due to our continuous operating loss for the years
ended December 31, 2022, 2021 and 2020, we reported minimal income tax benefit for those years.
Net loss from discontinued operations
On March 16, 2022, the People's Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of
bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, Tiandihui is now subject to the bankruptcy
proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected
to be completed by the end of 2023. As a result, the operation results of Tiandihui was presented as discontinued operations as of December
31, 2022
.
In the consolidated statements of operations and comprehensive
income (loss), result from discontinued operations is reported separately from the income and expenses from continuing operations and
prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued
operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are
considered to continue after the disposal of the discontinued operations. Our net loss from discontinued operations amounted to $339,054,
$2,645,831 and $2,565,197 for the years ended December 31, 2022, 2021 and 2020, respectively.
Net loss
.
As a result of the above, our total net income
was $855,013 for the year ended December 31, 2022, compared to the net loss of $6,715,958 for the year ended December 31, 2021. The increase
in our net income was due to increased revenue from our restaurant business segment and increased investment income for the year ended
December 31, 2022.
48
Our total net loss was $6,715,958 or the year
ended December 31, 2021, compared to the net loss of $874,668 for the year ended December 31, 2020. The increase in our net loss was due
to increased operating expenses as discussed above.
Going Concern and Capital Resources
Our consolidated financial statements have been
prepared assuming we will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in
the normal course of business. We discontinued our petfood business during the first quarter of 2023 and currently our revenue is substantially
generated from the restaurant business segment. Our business turnaround depends, in part, on our ability to successfully introduce manage
and acquire new restaurants. If we are not able to effectively manage and acquire new restaurants that successfully generate revenue,
we may not be able to grow and maintain our business as anticipated, and our sales may decline and our future business, financial condition
and results of operations may be materially adversely affected. In addition, as of December 31, 2022, there were still various pending
lawsuits, legal claims, proceedings, arbitrations and bankruptcy proceedings that could impair our future ability to continue as a going
concern
.
Furthermore, our business operations may be further affected by the ongoing COVID-19 pandemic. There can be no assurances
that future revenue or capital infusion will be sufficient to enable us to develop our business to a level where we will be profitable
or continuously to generate positive cash flows.
For the year ended December 31, 2021, we have
incurred a net loss of approximately $6.72 million and our cash used in operating activities amounted to approximately $3.45 million.
For the year ended December 31, 2022, our revenue from the restaurant business segment increased by approximately $2.5 million as compared
to 2021 and we reported a net income of approximately $0.86 million and cash flows from operating activities of approximately $0.85 million
in 2022. However, due to the sharp rise in market prices of raw materials, the lack of operational efficiency of our production facilities
and our inability to make bank loan repayment upon maturity, we suspended our petfood production and normal business operations and we
were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations in May 2020 factors including
the Covid pandemic, the increase in cost of raw materials required for petfood production; accepting less orders in an attempt to
avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a decrease in our petfood revenue from $0.47
million in 2021 and to only $0.02 million in 2022. Additionally, our remaining petfood production facility was frozen by the court and
became subject to a bankruptcy proceeding. We decided to discontinue our petfood manufacturing business segment in the first quarter 2023
due to the above operational challenges. As a result, it is uncertain our future revenue and cash flows will be sufficient to support
our growth. In addition, although we received approximately $6 million net proceeds from the issuance of common shares to certain investors
during fiscal year 2022, there can be no assurances that future revenue or capital infusion will be sufficient to enable us to develop
our business to a level where it will be profitable or to generate positive cash flows. These factors raise substantial doubt about the
Company's ability to continue as a going concern for the next twelve months from the date that our consolidated financial statements
are issued.
In assessing our liquidity, management monitors
and analyzes our cash and cash equivalent, our ability to generate sufficient revenue sources in the future, and our operating and capital
expenditure commitments. As of December 31, 2022, we had cash and cash equivalent and restricted cash of approximately $23.1 million.
We also had short-term investment of approximately $9.92 million, which are highly liquid and can be covered into cash and used in our
operations if needed. We also had an aggregate approximately $5.99 million loans (including approximately $4.98 million short-term loans
and approximately $0.51 million short-term loans from related parties). For the legal proceedings since December 31, 2019 regarding our
delayed repayment of certain bank loans upon maturity as described above, in March and April 2020, we received court rulings to require
us to make an aggregate RMB 54.54 million (approximately $8.35 million) to the financial institutions. On March 13, 2021, the land and
factory buildings above the land owned by Tiandihui were auctioned by the court for $5,098,461 (RMB33.14 million), among which, $3,192,827
(RMB21.14 million) has been used to repay loan principal and accrued interest to CCB based on the court order. The repayment has been
completed as of the date of this filing. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province
made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered
in bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings which has not been completed
as of the date of this filing and are expected to be completed by the end of 2023.
49
Based on our current financial conditions, our
cash balance and revenues generated from our business operations may not be currently sufficient and cannot be projected to cover our
future operating expenses and meet our obligations as they become due for the next twelve months after the date that our financial statements
are issued.
Management's plan to alleviate the substantial
doubt about our ability to continue as a going concern include attempting to improve our business profitability, generating sufficient
cash flow from our operations to meet our operating needs on a timely basis, and obtaining additional working capital funds through debt
and equity financings in order to meet our anticipated cash requirements. We also plan to evaluate and identify suitable strategic or
acquisition opportunities, complete such transactions on commercially favorable terms, or successfully integrate business operations,
infrastructure and management philosophies of acquired businesses and companies. Due to the effects discussed above, to the extent that
we experience an adverse operating environment, incur unanticipated capital expenditures, or if we decide to accelerate our growth, then
substantial additional financing may be required. Currently, we are working to improve our liquidity and capital sources primarily through
financial support from our principal shareholder and the exploration of additional debt or equity financing possibilities. In order to
fully implement our business plan and sustain continued growth, we may also need to raise capital from outside investors. On July 26,
2022, we completed a private placement of securities, and entered into a securities purchase agreement with eight accredited investors
pursuant to which we sold to the investors an aggregate 4,000,000 of our common shares, at a price of $1.50 per share and warrants at
a price of $0.01 per warrant to purchase up to an aggregate 4,000,000 of our common shares, for gross proceeds of $6,040,000. Our
expectation, therefore, is that we will seek to access the capital markets in both the U.S. and China to obtain additional funds as needed.
At the present time, however, we do not have commitments of funds from any third party. No assurance can be given that additional financing,
if required, would be available on favorable terms or at all. If we do not secure capital needed for our operations, we may have to temporarily
suspend or to terminate our operations.
Based on above reasons, there is a substantial
doubt about the Company's ability to continue as a going concern for the next 12 months from the date of this filing.
During the year ended December 31, 2022, our cash
used in operating activities was $2,072,715, cash used in investing activities was $1,332,827, cash provided by financing activities was
$6,055,480, and had the positive effect of prevailing exchange rates on our cash of $985,263. During the year ended December 31, 2021,
our cash used in operating activities was $3,299,563, cash used in investing activities was $1,642,776, cash provided by financing activities
was $17,952,057, and had the negative effect of prevailing exchange rates on our cash of $247,807. During the year ended December 31,
2020, our cash used in operating activities was $2,156,774, cash provided by investing activities was $3,355,189, cash used in financing
activities was $1,060,839, and had the positive effect of prevailing exchange rates on our cash of $106,910.
Net cash used in operating activities for the
year ended December 31, 2022 totaled $2,072,715 (including cash flows of $ 1,977,789 used in operating activities from our continuing
operations and cash flows of $94,926 used in operating activities from discontinued operations). The activities were mainly comprised
of a net income of $803,700, depreciation and amortization of $17,114, fair value change of short-term investments $4,161,093, inventory
write-down of $11,532, a increase in prepayment and other current net assets of $1,017,261, an increase in other current liabilities of
$1,054,749, and a decrease in accounts payable of $305,382.
Net cash used in operating activities for the
year ended December 31, 2021 totaled $3,299,563 (including cash flows of $8,154,363 used in operating activities from our continuing
operations and cash flows of $4,854,800 provided by operating activities from discontinued operations). The activities were mainly
comprised of a net loss of $6,120,308, depreciation and amortization of $466,720, fair value change of short-term investments $495,265,
bad debt provision $2,168 a decrease in net accounts receivable of $127,057, a decrease in Operating lease liabilities of $4,830,456,
an increase in prepayment and other current net asset $793,726, an increase in other current liabilities of $793,726, and an increase
in account payable of $64,427.
50
Net cash used in operating activities for the
year ended December 31, 2020 totaled $2,156,774 (including cash flows of $755,118 used in operating activities from our continuing
operations and cash flows of $1,401,656 used in operating activities from discontinued operations). The activities were mainly comprised
of a net loss of $874,668, depreciation and amortization of $72,344, fair value change of short-term investments $2,120,241, an increase
in interest payable $60,733, an increase in net accounts receivable of $654,246, a decrease in net inventory of $304,953, an increase
in prepayment and other current net asset $57,561, a decrease in other current liabilities of $1,017,864, and a decrease in account
payable of $68,095.
Net cash used in investing activities for
the year ended December 31, 2022 totaled $1,332,827 from our continuing operations, primarily include purchase of short-term investments of
$45,418,240 and proceeds from sale of short-term investments of $41,150,967. There was no cash used in our discontinued operations
during the year ended December 31, 2022.
Net cash used in investing activities for
the year ended December 31, 2021 totaled $1,642,776 from our continuing operations, primarily include cash obtained from business
acquisition of $171,827, payment for a business acquisition of $1,020,000, purchases of short-term investments of $4,372,809 and
proceeds from sale of short-term investments of $3,578,206. There was no cash used in our discontinued operations during the year
ended December 31, 2022.
Net cash provided by investing activities
for the year ended December 31, 2020 totaled $3,355,189 (including cash flows of $3,172,293 provided by operating activities from
continuing operations and cash flows of $182,896 from discontinued operations), primarily include purchase of short-term investments of
$38,743,908, proceeds from sale of short-term investments of $42,146,183, and payments to acquire property, plant and equipment of $47,086.
For the year ended December 31, 2022, net
cash provided by financing activities from continuing operations was $6,055,480, which is from the proceeds from issuance of common shares
of $6,017,781.
For the year ended December 31, 2021, net
cash provided by financing activities was $17,952,057 (including cash flows of $21,556,174 provided by financing activities from continuing
operations and cash flows of $3,604,117 used in discontinued operations), primarily include Proceeds from issuance of common shares of
$20,222,188, Repayments of short term loans of $1,458,040, and Repayments of short term loans - related parties of $22,302.
For the year ended December 31, 2020, net
cash used in financing activities was $1,060,839 (including cash flows of $1,365,936 used in financing activities from continuing operations
and cash flows of $305,097 provided by discontinued operations), primarily include proceeds from borrowing of short-term loans of $107,829,
borrowing of short-term loan-related parties of $49,350, and repayment of short term loan of $999,448.
Loan facilities
Before the discontinued operations of Tiandihui,
from 2018, 2019 and 2020, we secured the following revolving lines of credit:
On August 10, 2016, we obtained a line of credit
of approximately $705,676 (RMB 4,900,000) from Industrial & Commercial Bank of China - Qingdao Shinan Second Branch. The borrowing
under the line of credit was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. Under the term of the loan documentation, the loan
term commenced on the date the borrowed capital was transferred to the borrower and continued until the all principal and accrued interest
thereon were repaid in full. On June 6, 2017, we drew down the full amount of this loan; the term of this loan is 15-day, with this loan
bearing interest at approximately 120% of the prevailing PRC prime rate. On July 6, 2017, this loan was repaid in full. On July 12, 2017,
we obtained a new line of credit of approximately $412,371 (RMB2,800,000) with the same lender. On July 14, 2017, we drew down the full
amount of this loan. The loan maturity date is July 10, 2018 with annual interest rate of 5.22%. On July 9, 2018, this loan was repaid
in full and the line of credit was recovered. On August 2, 2018, we drew down the full amount of this loan. The loan maturity date is
July 16, 2019 with annual interest rate of 5.22%. In July 2019 this loan was repaid in full.
51
On March 25, 2017, we obtained a line of credit
of approximately $290,361 (RMB 2,000,000) from China Postal Savings Bank – Qingdao Weihai Road Sub Branch. The borrowing under the
line of credit was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. Under the term of the loan documentation, the loan term commenced
on the date the borrowed capital was transferred to the borrower and continued until the all principal and accrued interest thereon are
repaid in full. On March 29, 2017, we drew down the full amount of this loan. The loan maturity date is March 28, 2018, bearing interest
at approximately 140% of the prevailing PRC prime rate. On March 16, 2018, this loan was repaid in full and the line of credit is recovered.
On March 21, 2018, we drew down the full amount of this loan. The loan maturity date is March 19, 2019 with annual interest rate of 6.96%.
We made partial repayment of this loan during the year ended December 31, 2018 and the outstanding balance on this loan was approximately
$147,000 (RMB 1,008,675) as of December 31, 2018. In 2019 we repaid the rest of the loan in full.
On November 23, 2017, we obtained a line of credit
of approximately $614,779 (RMB 4,000,000) from China Postal Savings Bank – Qingdao Weihai Road Sub Branch ("CPSB").
The borrowing under the line of credit was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. Under the term of the loan documentation,
the loan term commenced on the date the borrowed capital was transferred to the borrower and continued until the all principal and accrued
interest thereon are repaid in full. On December 13, 2017, we drew down the full amount of this loan. The loan maturity date is December
12, 2018 with annual interest rate of 5.655%. On November 14, 2018, this loan was repaid in full and the line of credit is recovered.
On November 19, 2018, we drew down the full amount of this loan. The loan maturity date is November 18, 2019 with annual interest rate
of 5.22%. In 2019 we didn't repay the loan when it came due, and the outstanding balance on this loan was approximately $608,893
(RMB 3,972,965) as of December 31, 2020.
On April 29, 2019, we entered a line of credit
of approximately $845,732 (RMB 5,900,000) from China Postal Savings Bank - Qingdao Branch. The borrowing under the line of credit was
guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. The term of this loan is one-year; the loan maturity date is 17, 2020, with this
loan bearing interest rate of 5.0025% at approximately 150% of the prevailing PRC prime rate. In 2020 we didn't repay the loan when
it became due. The outstanding balance of this loan was approximately $903,975 (RMB 5,898,347) as of December 31, 2020
On March 16, 2022, the People's Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of
bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims and our defaulted loans
payable are now subject to the bankruptcy proceedings.
Compared to $5,440,350 short-term loans outstanding
as of December 31, 2021, we had $4,980,334 short-term loans outstanding as of December 31, 2022. In connection with the discontinued
operations of Tiandihui, which is now under bankruptcy proceedings, the short-term loans have been reclassified and included in "liabilities
held for sales" as reflected in the consolidated balance sheets.
Our long-term future capital requirements will
depend on many factors, including our level of revenue, the timing and extent of our spending to support the maintenance and growth of
our operations, the expansion of our sales and the continued market acceptance of our products and projects.
We expect to incur additional costs associated
with being a reporting company in the United States, primarily due to increased expenses that we incur to comply with the requirements
of the Sarbanes-Oxley Act of 2002, as well as costs related to accounting and tax services, legal expenses and investor and stockholder-related
expenses. These additional long-term expenses may require us to seek other sources of financing, such as additional borrowings or public
or private equity or debt capital. The availability of these other sources of financing will depend upon our financial condition and results
of operations as well as prevailing market conditions, and may not be available on terms reasonably acceptable to us or at all.
52
Regulatory Restrictions on Capital Injections
We used proceeds from our initial public offering
and subsequent offerings to fund our business. Accordingly, the following regulations have to be followed, regarding capital injections
to foreign-invested enterprises.
Chinese regulations relating to investments
in offshore companies by Chinese residents
. SAFE promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on
Domestic Residents' Financing and Round-trip Investment through Offshore Special Purpose Vehicles, or SAFE Circular 37, on July
4, 2014. SAFE Circular 37 requires Chinese residents to register and update certain investments in companies incorporated outside of China
with their local SAFE branch. SAFE also subsequently issued various guidance and rules regarding the implementation of SAFE Circular 37,
which imposed obligations on Chinese subsidiaries of offshore companies to coordinate with and supervise any Chinese-resident beneficial
owners of offshore entities in relation to the SAFE registration process.
We may not be aware of the identities of all of
our beneficial owners who are Chinese residents. We do not have control over our beneficial owners and cannot assure you that all of our
Chinese -resident beneficial owners will comply with SAFE Circular 37 and subsequent implementation rules. The failure of our beneficial
owners who are Chinese residents to register or amend their SAFE registrations in a timely manner pursuant to SAFE Circular 37 and subsequent
implementation rules, or the failure of future beneficial owners of our Company who are Chinese residents to comply with the registration
procedures set forth in SAFE Circular 37 and subsequent implementation rules, may subject such beneficial owners or our Chinese subsidiaries
to fines and legal sanctions, which may be substantial. Failure to register may also limit our ability to contribute additional capital
to our Chinese subsidiaries and limit our Chinese subsidiaries' ability to distribute dividends to our Company. These risks may
have a material adverse effect on our business, financial condition and results of operations.
China regulates loans to and direct investment
in Chinese entities by offshore holding companies and there is governmental control of currency conversion. We are an offshore holding
company conducting our operations in China through our wholly owned subsidiary Tiandihui. As an offshore holding company, we may make
loans and additional contributions to Tiandihui subject to approval from government authorities.
Any loan to Tiandihui, which is treated as a foreign-invested
enterprise under Chinese law, is subject to Chinese regulations and foreign exchange loan registrations. In January 2003, the China State
Development and Reform Commission, SAFE and Ministry of Finance jointly promulgated the Circular on the Interim Provisions on the Management
of Foreign Debts, or the Circular 28, limiting the total amount of foreign debt a foreign-invested enterprise may incur to the difference
between the amount of total investment approved by the Ministry of Commerce or its local counterpart for such enterprise and the amount
of registered capital of such enterprise, and requiring registration of any such loans with SAFE. As of December 31, 2016, the amount
of approved total investment of Tiandihui was $2,707,490 (RMB 18,800,000) and TDH HK have invested the same amount of $2,707,490 (RMB
18,800,000) into Tiandihui, which means Tiandihui needs to obtain additional approval for total investment amount from the local counterpart
of Ministry of Commerce. During 2017, we have successfully obtained the investment approval from Ministry of Commerce for our proceeds
of IPO.
In March 2015, SAFE issued the Circular Concerning
the Reform of the Administration of the Settlement of Foreign Currency Capital of Foreign-Invested Enterprises, or SAFE Circular 19, which
became effective in June 2015. SAFE Circular 19 regulates the conversion by a foreign-invested enterprise of foreign currency registered
capital into RMB by restricting how the converted RMB may be used. Furthermore, SAFE promulgated a circular in June 2016, SAFE Circular
16, which further revises some clauses in the SAFE Circular 19. SAFE Circular 19 and 16 provide that the capital-account foreign exchange
incomes of a domestic enterprise shall not be directly or indirectly used for expenditures that are forbidden by relevant laws and regulations,
for purposes that are not included in the business scope approved by the applicable government authority, shall not be directly or indirectly
used for investments in securities or for any other kind of wealth-managing investments than banks' principal-secured products unless
otherwise prescribed by other laws and regulations, shall not be directly or indirectly used for issuing RMB entrusted loans (unless expressly
permitted in the business scope approved by the competent governmental authorities) or repaying inter-enterprise loans (including advances
by the third party) or repaying bank loans in RMB which have been sub-lent to third parties, shall not be used for granting loans to non-affiliated
enterprises unless expressly permitted in the business scope and shall not be used for the construction or purchase of real estate not
for self-use (except for real estate enterprises). In addition, SAFE supervises the flow and use of the RMB capital converted from foreign
currency registered capital of a foreign-invested company by further focusing on ex post facto supervision and violations. These two circulars
may limit our ability to use the net proceeds from this offering to invest in or acquire any other Chinese companies in China, which may
adversely affect our liquidity and our ability to fund and expand our business in China.
53
Capital Resources
As of December 31, 2022 and 2021
The following table provides certain selected
balance sheets comparisons between years ended December 31, 2022 and 2021:
December 31,
2022
2021
Fluctuation
%
ASSETS
Cash and cash equivalents
$
21,857,125
$
18,025,966
3,831,159
21
Short-term investments
9,922,366
4,428,446
5,493,920
124
Accounts receivable, net
29,318
36,835
(7,517
)
-20
Advanced to suppliers, net
2,789
10,986
(8,197
)
-75
Inventories, net
987
51,423
(50,436
)
-98
Prepayment and other current assets, net
127,834
1,158,867
(1,031,033
)
-89
Current Assets held for sale associated with discontinued operation of Tiandihui
1,844,335
7,355,317
(5,513,982
)
-75
Total current assets
33,781,754
31,067,840
2,713,914
9
Property, plant and equipment, net
698,044
781,670
(83,626
)
-11
Land use rights, net
481,840
535,632
(53,792
)
-10
Operating lease right-of-use assets
783,658
4,604,365
(3,820,707
)
-83
Non current assets held for sale associated with discontinued operation of Tiandihui
768,101
879,253
(111,152
)
-13
Total non-current assets
2,731,643
6,800,920
(4,069,277
)
-60
Total assets
$
36,513,397
$
37,868,760
(1,355,363
)
-4
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$
491,850
$
506,881
(15,031
)
-3
Account payable - related parties
1,033
-
1,033
100
Advances from customers
11,024
16,959
(5,935
)
-35
Bank overdrafts
74,425
79,851
(5,426
)
-7
Short term loans - related parties
266,451
285,878
(19,427
)
-7
Taxes payable
11,923
24,077
(12,154
)
-50
Due to related parties
55,747
36,410
19,337
53
Operating lease liabilities, current
212,814
268,403
(55,589
)
-21
Other current liabilities
1,212,420
533,668
678,752
127
Current Liabilities held for sale associated with discontinued operation of Tiandihui
12,337,657
17,898,674
(5,561,017
)
-31
Total current liabilities
14,675,344
19,650,801
(4,975,457
)
-25
Operating lease liabilities - related party, non-current
683,113
4,846,760
(4,163,647
)
-86
non-current Liabilities held for sale associated with discontinued operation of Tiandihui
1,037
1,132
(95
)
-8
Total liabilities
15,359,494
24,498,693
(9,139,199
)
-37
54
We maintain cash and cash equivalents in mainland
China, Hong Kong, New Zealand and U.S. on December 31, 2022 and 2021.
December 31,
Country
2022
2021
China (Mainland)
$
1,777,357
$
26,367
China (Hong Kong)
80,021
14,099,208
Hong Kong (through a broker account)
189,056
157,974
New Zealand (through a broker account)
16,246,621
1,232,822
U.S.
3,564,070
2,509,595
Total
$
21,857,125
$
18,025,966
The majority of our cash balances at December
31, 2022 and 2021 are in form of USD and held in a broker accounts in New Zealand and Hong Kong and bank accounts at financial institutions
located in China. Cash held in banks in China is not insured. In 1996, the Chinese government introduced regulations relaxing restrictions
on the conversion of the RMB; however restrictions still remain, including restrictions on foreign-invested entities. Foreign-invested
entities may only buy, sell or remit foreign currencies after providing valid commercial documents at only those banks authorized to conduct
foreign exchanges. Furthermore, the conversion of RMB for capital account items, including direct investments and loans, is subject to
China government approval. Chinese entities are required to establish and maintain separate foreign exchange accounts for capital account
items. We cannot be certain Chinese regulatory authorities will not impose more stringent restrictions on the convertibility of the RMB,
especially with respect to foreign exchange transactions. Accordingly, cash on deposit in banks in China is not readily deployable by
us for use outside of China.
Cash and cash equivalents and restricted
cash
As of December 31, 2022, cash and cash equivalents
were $21,857,125, compared to $18,025,966 at December 31, 2021. The components of this increase of $3,831,159 reflected below.
2022
2021
Net cash used in operating activities
$
(2,072,715
)
$
(3,299,563
)
Net cash provided by investing activities
(1,332,827
)
(1,642,776
)
Net cash provided by (used in) financing activities
6,055,480
17,952,057
Exchange rate effect on cash and restricted cash
985,263
(247,807
)
Net cash inflow
$
3,635,201
$
12,766,911
We had current restricted cash of $1,289,051 and
$1,485,009 as of December 31, 2022 and 2021, respectively, among which, $1,289,051 and $1,485,009 has been frozen by the court as a result
of our current pending legal proceedings as disclosed above, respectively. Due to the pending legal proceedings, certain of our bank deposit
under Tiandihui has been temporarily frozen by the court. In connection with the discontinued operations of Tiandihui, such restricted
cash was reclassified and included in "current assets held for sales associated with discontinued operation of Tiandihui"
on the consolidated balance sheets.
Short-term investments
During the years ended December 31, 2022 and 2021,
the Company acquired equity securities of certain publicly listed companies through various open market transactions. The Company's
investments in marketable securities are accounted for pursuant to ASC 321 and reported at their readily determinable fair value as quoted
by market exchanges in the consolidated balance sheets with changes in fair value recognized in earnings. Changes in fair value, including
realized gain of approximately $4.19 million and unrealized gain of approximately $0.03 million for the year ended December 31, 2022.
Changes in fair value, including realized gain of approximately $0.07 million and unrealized gain of approximately $0.5 million for the
year ended December 31, 2021, which were included in "investment income" in the accompanying consolidated statements of operations
and comprehensive loss.
55
Accounts receivable
Accounts receivable, net as of December 31, 2022
was $29,318, an decrease of $7,517 compared to $36,835 as of December 31, 2021. $29,421 and $19,221 allowance for credit losses was
recorded for the years ended December 31, 2022 and 2021, respectively.
Inventories
As of December 31, 2022, our inventory balance
was $987, a decrease of $50,436, or 98% compared to $51,423 as of December 31, 2021. The decrease was due to our petfood manufacturing
activities were suspended in 2022 because our remaining petfood production facility was frozen by the court and became subject to a bankruptcy
proceeding.
Due to related parties
As of December 31, 2022, the balances of due to
related parties were $55,747, an increase of $19,337 compared to $36,410 on December 31, 2021. The balance of due to related parties represented
expenses incurred by related parties in the ordinary course of business, expense paid by related parties on behalf of the Company as well
as the loans the Company obtained from related parties for working capital purpose. The loans owed to the related parties are interest
free, unsecured and repayable on demand.
Property, plant and equipment, net
Property, plant and equipment, net as of December 31,
2022 were $698,044, an decrease of $83,626 compared to $781,670, as of December 31, 2021. The decrease in balance of property, plant
and equipment was because certain amount associated with the bankruptcy proceedings of Tiandihui, has been reclassified and included in
"non-current assets held for sale associated with discontinued operations of Tiandihui" as reflected in the consolidated balance
sheets. Depreciation expense for the years ended December 31, 2022 and 2021 was $62,547 and $31,095, respectively.
Land use rights, net
Land use rights, net as of December 31, 2022
were $481,840, an decrease of $53,792 compared to $535,632 as of December 31, 2021. During the years ended December 31, 2022 and
2021, amortization expense amounted to $53,975 and $433, respectively.
Accounts payable
Accounts payable represents our commercial credit
offered to the suppliers and notes payable was the bank acceptance notes to suppliers.
Accounts payable decreased by $15,031, to $491,850
as of December 31, 2022, from $506,881 as of December 31, 2021 due to our severe shortage of sales orders in 2022, we have reduced material
purchases and inventory.
56
Taxes payable
Taxes payable represents the accrued enterprise
income tax at the year end.
Balance of taxes payable as of December 31, 2022
was $11,923 representing an decrease of $12,154, or 50%, compared with balance of $24,077 as of December 31, 2021.
Tabular Disclosure of Contractual Obligations
We have certain potential commitments that include
future estimated payments. Changes in our business needs, cancellation provisions, changing interest rates, and other factors may result
in actual payments differing from the estimates. We cannot provide certainty regarding the timing and amounts of payments.
As of December 31, 2022, we had the following
contractual obligations:
Payments Due by Period
Contractual Obligations
Total
Less than
1 year
1-3 years
3-5 years
More than
5 years
(1) Debt Obligations
$
4,980,334
$
4,980,334
$
-
$
-
$
-
(2) Lease Obligations
$
895,927
240,000
480,000
175,927
-
Total
$
5,876,261
$
5,220,334
$
480,000
$
175,927
$
-
(1)
As of December 31, 2020, The Company was
in default on substantially all of the outstanding loans. On March 13, 2021, the land and factory buildings on the land owned by Tiandihui
were auctioned by the court for $5,098,461 (RMB33.14 million), of which, $3,192,827 (RMB21.14 million) has been used to repay loan principal
and accrued interest to CCB, which was repaid by April 2021. As of December 31, 2022, the Company had defaulted short-term loans payable
of $4,980,334. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling
and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings.
Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing,
the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
(2)
The Company has signed two lease agreements for office premises and restaurant premises. The remaining lease term of the Company's leases ranges from approximately 1 to 4 years.
Off-Balance Sheet Arrangements
Under SEC regulations, we are required to disclose
off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, such
as changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that
are material to investors. An off-balance sheet arrangement means a transaction, agreement or contractual arrangement to which any entity
that is not consolidated with us is a party, under which we have:
●
Any obligation under certain guarantee contracts,
●
Any retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to that entity for such assets,
●
Any obligation under a contract that would be accounted for as a derivative instrument, except that it is both indexed to our stock and classified in shareholder equity in our statement of financial position, and
●
Any obligation arising out of a material variable interest held by us in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us, or engages in leasing, hedging or research and development services with us.
57
We do not have any off-balance sheet arrangements
that we are required to disclose pursuant to these regulations. In the ordinary course of business, we enter into operating lease commitments,
and other contractual obligations. These transactions are recognized in our financial statements in accordance with generally accepted
accounting principles in the United States.
Trend Information
Other than as disclosed elsewhere in this annual
report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse
effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information
to be not necessarily indicative of future operating results or financial conditions.
Critical Accounting Policies
The discussion and analysis of our financial condition
and results of operations are based upon our audited consolidated financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States. The preparation of these audited consolidated financial statements requires us to
make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We evaluate our estimates
on an ongoing basis, including those related to revenue recognition and income taxes. We base our estimates on our historical experience
and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making
the judgments we make about the carrying values of our assets and liabilities that are not readily apparent from other sources. Because
these estimates can vary depending on the situation, actual results may differ from the estimates.
The critical accounting policies summarized in
this section are discussed in further detail in the notes to the audited consolidated financial statements appearing elsewhere in this
Annual Report. Management believes that the application of these policies on a consistent basis enables us to provide useful and reliable
financial information about our operating results and financial condition.
Use of Estimates
The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information
that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived
with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information
is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful
lives and impairment of long-lived assets, allowance for credit losses, write-down in value of inventories and income taxes including
the valuation allowance for deferred tax assets. Estimates and assumptions are periodically reviewed and the effects of revisions are
reflected in the financial statements in the period they are determined to be necessary.
Inventories
Inventories, consisting of raw materials, work
in progress, and finished goods, are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis.
The valuation of inventory requires us to estimate excess and slow-moving inventory. We evaluate the recoverability of our inventory based
on assumption about expected demand, market conditions, forecasts prepared by its customers, sales contracts and orders in hand.
58
Impairment of Long-Lived Assets and Goodwill
The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least
annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying
amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and its book
value. The Company recorded impairment loss on long-lived assets other than goodwill of $6,833, $217,257 and $0 and for the years ended
December 31, 2022, 2021 and 2020, respectively.
The Company's goodwill is tested for impairment
on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable.
In testing for goodwill impairment, the Company compares the fair value of its reporting unit to its carrying value including the goodwill
of that unit. If the carrying value, including goodwill, exceeds the reporting unit's fair value, the Company will recognize an
impairment loss for the amount by which the carrying amount exceeds the reporting unit's fair value. The loss recognized cannot
exceed the total amount of goodwill allocated to that reporting unit. The Company recorded impairment of goodwill of $0, $355,570, and
$0 for the years ended December 31, 2022, 2021 and 2020, respectively.
Lease Commitments
On January 1, 2019, the Company adopted Accounting
Standards Update ("ASU") No. 2016-02, Leases (together with all amendments subsequently issued thereto, "ASC Topic 842"),
using the modified retrospective method. The Company elected the transition method which allows entities to initially apply the requirements
by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing
this transition method, previously reported financial information has not been restated to reflect the application of the new standard
to the comparative periods presented. The Company elected the package of practical expedients permitted under the transition guidance
within ASC Topic 842, which among others, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840
regarding lease identification, classification, and the accounting treatment of initial direct costs. The Company elected not to record
assets and liabilities on its consolidated balance sheet for new or existing lease arrangements with terms of 12 months or less. The Company
recognizes lease expenses for such leases on a straight-line basis over the lease term. In addition, the Company elected the land easement
transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it
has not historically been accounted for as a lease.
The initial lease liability is equal to the future
fixed minimum lease payments discounted using the Company's incremental borrowing rate, on a secured basis. The lease term includes
option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The initial
measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs and prepayments, less any
lease incentives.
Payments made under operating leases are charged
to the consolidated statements of operations and comprehensive loss on a straight-line basis over the lease period. The Company does
not have finance lease arrangements as of December 31, 2022 and 2021.
Loss Contingencies
The Company records accruals for certain of its
outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably
estimated. When a loss contingency is not both probable and estimable, the Company does not record an accrued liability but discloses
the nature and the amount of possible loss, if material, in the notes to the consolidated financial statements.
The Company reviews the developments in contingencies
that could affect the amount of the provisions that has been previously recorded, and the matters and related possible losses disclosed.
The Company makes adjustments to provisions and changes to its disclosures accordingly to reflect the impact of negotiations, settlements,
rulings, advice of legal counsel, and updated information. The assessment of whether a loss is probable or reasonably possible, and whether
the loss or a range of loss is estimable, often involves complex judgments about future events. Management is often unable to estimate
the loss or a range of loss, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages,
or (iii) there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions.
In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including eventual loss,
fine, penalty or business impact, if any.
59
Revenue Recognition
Revenue is measured according to ASC Topic 606,
Revenue from Contracts with Customers. The Company currently generated revenue from two sources: sales of petfood products and revenue
from restaurant business operation.
Revenue for sale of products is derived from contracts
with customers, which primarily include the sale of petfood products. The Company recognizes revenue upon transfer of control of promised
goods in a contract with a customer in an amount that reflects the consideration the Company expects to receive in exchange for those
products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery
and risk of loss has transferred to the customer.
The Company started to generate revenue from restaurant
business operation when the Company acquired Far Ling's Inc. and Bo Ling's Chinese Restaurant, Inc. in late 2021. Revenue
from providing dining services and sales of meals is recognized at point when services are rendered. The Company recognizes revenues in
the form of restaurant sales at the time of the sale when payment is made by the customer, as the Company has completed its performance
obligation, namely the provision of food and beverage, and the accompanying customer service, during the customer's visit to the
restaurant.
Revenue is recognized net of any taxes collected
from customers that are subsequently remitted to governmental authorities, including value-added tax ("VAT"), business tax,
applicable local government levies. At the time revenue is recognized, allowances are recorded, with the related reduction to revenue,
for estimated sales returns based upon historical experience and related terms of customer arrangements.
The Company elected to account for shipping and
handling fees that occur after the customer has obtained control of goods, for instance, free onboard shipping point arrangements, as
a fulfillment cost and accrues for such costs.
Management has concluded that the disaggregation
level is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is
measured on the same basis as under the revenue standard.
Contract liabilities are recorded when consideration
is received from a customer prior to transferring the control of goods to the customer or other conditions under the terms of a sales
contract. As of December 31, 2022 and 2021, the Company recorded contract liabilities of $11,024 and $16,959, respectively, which were
presented as advances from customers on the accompanying consolidated balance sheets. During the years ended December 31, 2022, 2021
and 2020, the Company recognized $6,970, $163,074 and $56,983 of contract liabilities as revenue, respectively.
Foreign Currency Translation
The accompanying consolidated financial statements
are presented in United States dollar ("$"), which is the reporting currency of the Company. The functional currency of TDH
Holdings, TDH HK, TDH Foods, TDH Income Corporation, Ruby21Noland LLC, Far Ling's Inc, Bo Ling's Chinese Restaurant, Inc and
TDH Petfood LLC is United States dollar. The functional currency of Tiandihui, Tiandihui Pet Foodstuffs, Tiandihui Foodstuffs Sales and
Chongai Jiujiu, is Renminbi ("RMB"). The functional currency of TDH Group BVBA is Euro ("€"). The functional
currency of TDH JAPAN is Yen ("¥"). For the subsidiaries whose functional currencies are RMB, Euro and Yen, results of
operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified
exchange rate at the end of the period, and equity is translated at historical exchange rates. The resulting translation adjustments are
included in determining other comprehensive income or loss. Transaction gains and losses are reflected in the consolidated statements
of operations.
60
The exchange rates used to translate amounts in
RMB into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=RMB):
Period Covered
Balance
Sheet
Date Rates
Average
Rates
Year ended December 31, 2022
6.9646
6.7261
Year ended December 31, 2021
6.3757
6.4515
The exchange rates used to translate amounts in
Euro into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=€):
Period Covered
Balance
Sheet
Date Rate
Average
Rate
Year ended December 31, 2022
0.9383
0.9485
Year ended December 31, 2021
0.8831
0.8448
The exchange rates used to translate amounts in
Yen into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=¥):
Period Covered
Balance
Sheet
Date Rate
Average
Rate
Year ended December 31, 2021
115.0536
109.7430
Fair Value of Financial Instruments
Accounting guidance defines fair value as the
price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at
fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that
market participants would use when pricing the asset or liability.
The Company measures certain financial assets,
including the investment under the measurement alternative method and equity method on other-than-temporary basis, intangible assets and
fixed assets at fair value when an impairment charge is recognized.
61
Accounting guidance establishes a fair value hierarchy
that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant
to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value:
Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 — Include other inputs that are directly or indirectly observable in the marketplace.
Level 3 — Unobservable inputs which are supported by little or no market activity.
Accounting guidance also describes three main
approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The
market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets
or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement
is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that
would currently be required to replace an asset.
For certain of the Company's financial instruments,
including cash and cash equivalents, restricted cash, short-term investment, accounts receivable, advances to suppliers, inventories,
prepayments and other current assets, accounts payable, notes payables, advances from customers, taxes payable, bank overdrafts, short
term loans and other current liabilities, the carrying amounts approximate their fair values due to the short maturities.
Recently Issued Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04,
Reference
Rate Reform, (Topic 848)
. The amendments in Topic 848 provide optional expedients and exceptions for applying GAAP to contracts, hedging
relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied by all entities
as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect to apply the amendments
prospectively through December 31, 2022. The Company did not utilize the optional expedients and exceptions provided by this standard
during the year ended December 31, 2021. The Company is evaluating the impact of this standard on its consolidated financial statements
and disclosures.
Impact of Inflation
We do not believe the impact of inflation on our
Company is material. Our operations are in China and China's inflation rates have been relatively stable in the last three years:
3.7% in 2022, 1.1% in 2021, and 2.6% in 2020.
Impact of Foreign Currency Fluctuations
We do not believe the impact of foreign currency
fluctuations on our Company is material. Regarding purchase of raw materials, we are subject to commodity price risks arising from price
fluctuations in the market prices of the raw materials. We have generally been able to pass on cost increases through price adjustments.
However, the ability to pass on these increases depends on market conditions influenced by the overall economic conditions in China.
Most of our oversea sales are denominated in US
dollars, for which our oversea sales are exempted from the risk of foreign currency fluctuation.
We have not had any foreign currency investments hedged by currency
borrowings or other hedging instruments. We manage our price risks through productivity improvements and cost-containment measures
62
ITEM 6.
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A.
Directors and senior management
The following table sets forth our executive officers
and directors, their ages and the positions held by them as of April 20, 2023:
Name
Age
Position
Dandan Liu
35
Chief Executive Officer, Class A Director
Feng Zhang
40
Chief Financial Officer, Class A Director
Caifen Zou
(1) (2) (3)
58
Class B Director, independent
Qiu Li
(1) (2) (3)
62
Class B Director, independent
Owens Meng
(1) (2) (3)
45
Class C Director, independent
(1)
Member of the Audit Committee.
(2)
Member of the Compensation Committee.
(3)
Member of the Nominating and Corporate Governance Committee.
Dandan Liu
was appointed as the Company's
Chief Executive Officer effective as of August 2, 2019 and Chair on September 15, 2021. Dandan Liu has served as a Class A director of
the Company since February 2019. Ms. Liu founded Beijing Houxin Investments Co., Ltd. in June 2012 and served as its Chief Executive Officer
and Chairman from June 2012 to July 2020. Ms. Liu's valuable entrepreneurial, management, and investment experience together with
her in-depth knowledge of the Company provide her with the qualifications and skills to serve as a director of our Company.
Feng Zhang
was appointed as the Company's
Chief Financial Officer on February 19, 2020. From August 2018 to September 2019, Feng Zhang worked as Senior Accounting Manager for Beijing
Longguang Energy Technology Co., Ltd. From July 2017 to July 2018, Mr. Zhang worked as Accounting Manager for Hebei Yinlong Renewable
Energy Co., Ltd. From March 2015 to June 2017, Mr. Zhang worked as Audit Manager for Beijing Xinghua Certified Public Accountants Firm
(Partnership). From June 2006 to February 2015, Mr. Zhang worked as Accounting Manager for Boda Instrument Group Co., Ltd. Mr. Zhang is
a Certified Public Accountant and received his bachelor degree in Assets Appraisal from Hebei Agricultural University.
Qiu Li
is an independent director of the
company. Ms. Li has been Senior Consultant of Hangzhou Guohan Financial Holding Co., Ltd. since November 2015. Between March 2010 and
October 2015, Ms. Li was director of audit of Hengfeng Bank Hangzhou Branch. Between November 1987 and March 2010, Ms. Li held several
managerial positions at Hengfeng Bank headquarter. Ms. Li is a China Certified Public Accountants (CPA). Ms. Li holds a Bachelor's
degree in Management from Shandong Cadres Correspondence University. The Board of Directors determined that Ms. Li should serve as our
director based on her experience in business and accounting matters.
Caifen Zou
has served as Senior Advisor
of Shandong Renhe Guarantee Company since August 2019. From December 1993 to July 2019, Ms. Zou has served in a number of senior executive
roles within CITIC Bank Weihai Branch, including senior manager of Personal Credit Department, general manager of Retail Banking Department,
and deputy section chief of Accounting Department, etc. Ms. Zou received her Associate's degree in Administration Management from
Shandong Normal University, and held Intermediate Accountant Qualification Certificate and Intermediate Economist Qualification Certificate
in China. The Board of Directors determined that Ms. Zou should serve as our director based on her experience and expertise in accounting,
management and internal controls.
63
Owens Meng
is an independent director.
Since September 2013, Owens Meng has been the managing director of Beijing Songlin Xinya Financial Consultants, Ltd. From November 2007
to September 2013, he served as chief representative of Sherb Consulting LLC Beijing Representative Office, and managing director of Sherb
& Co, LLP, a mid-sized accounting firm which has audited more than 25 China-based, US publicly traded companies. From July 2003 to
October 2007, Mr. Meng worked as an audit manager for Grant Thornton Beijing. Mr. Meng received his CPA permit from the state of Delaware,
and is a member of China Institute of Certified Public Accountants (CICPA), and a Certified Internal Auditor of the Institute of Internal
Auditors. Mr. Meng holds a Bachelor's degree in accounting and economics from Beijing Technology and Business University. Mr. Meng
has served as an independent director of China Customer Relations Centers, Inc. (Nasdaq: CCRC) since September 2014. Mr. Meng was nominated
as a director because of his experience in auditing, US GAAP and compliance issues.
Under British Virgin Islands law, our directors
have a duty to act honestly, in good faith and with a view to our best interests. Our directors also have a duty to exercise the care,
diligence and skills that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to
us, our directors must ensure compliance with our memorandum and articles of association. We have the right to seek damages if a duty
owed by our directors is breached. The functions and powers of our board of directors include, among others:
●
appointing officers and determining the term of office of the officers;
●
authorizing the payment of donations to religious, charitable, public or other bodies, clubs, funds or associations as deemed advisable;
●
exercising the borrowing powers of the company and mortgaging the property of the company;
●
executing checks, promissory notes and other negotiable instruments on behalf of the company; and maintaining or registering a register of mortgages, charges or other encumbrances of the company.
A director may vote, attend a board meeting or
sign a document on our behalf with respect to any contract or transaction in which he or she is interested. A director must promptly disclose
the interest to all other directors after becoming aware of the fact that he or she is interested in a transaction we have entered into
or are to enter into. A general notice or disclosure to the board or otherwise contained in the minutes of a meeting or a written resolution
of the board or any committee of the board that a director is a shareholder, director, officer or trustee of any specified firm or company
and is to be regarded as interested in any transaction with such firm or company will be sufficient disclosure, and, after such general
notice, it will not be necessary to give special notice relating to any particular transaction.
The directors may receive such remuneration as
our board of directors may determine from time to time. Each director is entitled to be repaid or prepaid for all traveling, hotel and
incidental expenses reasonably incurred or expected to be incurred in attending meetings of our board of directors or committees of our
board of directors or shareholder meetings or otherwise in connection with the discharge of his or her duties as a director. The compensation
committee will assist the directors in reviewing and approving the compensation structure for the directors. Our board of directors may
exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to
issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation
of the company or of any third party.
A director is not required to hold shares as a
qualification to office.
64
B.
Compensation
The following table shows the annual compensation
paid by us for the years ended December 31, 2022 and 2021 to our principal executive officers.
Name and principal position
Year
Salary
($)
Bonus
($)
Total Paid
($)
Dandan Liu
2022
85,000
35,000
120,000
CEO and director
2021
60,000
-
60,000
Feng Zhang
2022
45,000
-
45,000
CFO
2021
45,000
-
45,000
Compensation Committee Interlocks and Insider
Participation
None of our officers currently serves, or has
served during the last completed fiscal year, on the compensation committee or board of directors of any other entity that has one or
more officers serving as a member of our board of directors.
Director Compensation
Directors are entitled to receive compensation
for their actual travel expenses for each Board meeting attended. We paid $10,000 compensation to each of our directors during each of
the years ended December 31, 2022 and 2021.
Limitation of Director and Officer Liability
Under British Virgin Islands law, each of our
directors and officers, in performing his or her functions, is required to act honestly and in good faith with a view to our best interests
and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Our memorandum
and articles of association provide that, to the fullest extent permitted by British Virgin Islands law or any other applicable laws,
our directors will not be personally liable to us or our shareholders for any acts or omissions in the performance of their duties. Such
limitation of liability does not affect the availability of equitable remedies such as injunctive relief or rescission. These provisions
will not limit the liability of directors under United States federal securities laws.
We may indemnify any of our directors or anyone
serving at our request as a director of another entity against all expenses, including legal fees, and against all judgments, fines and
amounts paid in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings. We may only
indemnify a director if he or she acted honestly and in good faith with the view to our best interests and, in the case of criminal proceedings,
the director had no reasonable cause to believe that his or her conduct was unlawful. The decision of our board of directors as to whether
the director acted honestly and in good faith with a view to our best interests and as to whether the director had no reasonable cause
to believe that his or her conduct was unlawful, is in the absence of fraud sufficient for the purposes of indemnification, unless a question
of law is involved. The termination of any proceedings by any judgment, order, settlement, conviction or the entry of no plea does not,
by itself, create a presumption that a director did not act honestly and in good faith and with a view to our best interests or that the
director had reasonable cause to believe that his or her conduct was unlawful. If a director to be indemnified has been successful in
defense of any proceedings referred to above, the director is entitled to be indemnified against all expenses, including legal fees, and
against all judgments, fines and amounts paid in settlement and reasonably incurred by the director or officer in connection with the
proceedings.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted for our directors or officers under the foregoing provisions, we have been informed that in
the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable
as a matter of United States law.
65
Retirement Benefits
As of December 31, 2022, we have contributed to
the government-mandated employee welfare and retirement benefit plan and provided pension, retirement or similar benefits to its employees.
The PRC regulations require us to pay the local labor administration bureau a monthly contribution at a stated contribution rate based
on the monthly basic compensation of qualified employees. The local labor administration bureau, which manages various investment funds,
will take care of employee retirement, medical and other fringe benefits. We have no further commitments beyond our monthly contribution.
Employment Agreements
Employment agreement with
Dandan Liu, CEO
On August 1, 2022, TDH Holdings, Inc. renewed
employment agreement with Dandan Liu to serve in the role of Chief Executive Officer for the initial period of 3 years (commencing as
of August 1, 2022 and terminating on July 31, 2025), which term may be automatically renewed for another 3 years unless either party to
the agreement terminates the agreement at least 60 days prior to the expiration of the term. Under the terms of this agreement, Ms. Liu's
annual salary is USD 120,000 payable in 12 equal monthly installments until July 31, 2025. Ms. Liu may be eligible to receive an annual
bonus in the amount of 10% of the growth in book value as of the last fiscal year end, subject to review of corporate performance goals
set forth by the Compensation Committee. The Compensation Committee will have the sole discretion whether Ms. Liu is entitled to the bonus
and the amount of the payment, if any. The employment agreement may be terminated by either party upon 60 days advance notice to the other
party. The Company will reimburse Ms. Liu for all reasonable out of pocket expenses in connection with travel, entertainment and other
expenses incurred in the performance of her duties. The agreement also contains certain confidentiality, non-disclosure and other provisions
that are customary to the agreements of this nature.
Employment agreement with
Feng Zhang, CFO
On January 4, 2021, TDH Holdings, Inc. entered
into an employment agreement with Feng Zhang to serve in the role of Chief Financial Officer for the initial period of three years, (commencing
as of January 4, 2021 and terminating on January 3, 2024). Under the terms of this agreement, Mr. Zhang's annual salary is USD 48,000
payable in 12 equal monthly installments. The employment agreement may be terminated by either party upon 15-day advance notice to the
other party. The Company will reimburse Mr. Zhang for all reasonable out of pocket expenses in connection with travel, entertainment and
other expenses incurred in the performance of his duties. The agreement also contains certain confidentiality, non-disclosure and other
provisions that are customary to the agreements of this nature.
C.
Board Practices
Composition of Board; Risk
Oversight
Our Board of Directors presently consists of five
directors. The Board membership is divided into three classes, Class A, B and C, respectively, as nearly equal in number as the total
number of directors permits. Class A directors will face re-election at our next annual meeting of shareholders and every three years
thereafter. Class B directors will face re-election at our second annual meeting of shareholders and every three years thereafter. Class
C directors will face re-election at our third annual meeting of shareholders and every three years thereafter.
Except as noted above, there are no family relationships
between any of our executive officers and directors. Officers are elected by, and serve at the discretion of, the board of directors.
Our board of directors shall hold meetings on at least a quarterly basis. As a smaller reporting company under the NASDAQ rules we are
only required to maintain a board of directors comprised of at least 50% independent directors, and an audit committee of at least two
members, comprised solely of independent directors who also meet the requirements of Rule 10A-3 under the Securities Exchange Act of 1934.
There are no membership qualifications for directors. Further, there are no share ownership qualifications for directors unless so fixed
by us in a general meeting. There are no other arrangements or understandings pursuant to which our directors are selected or nominated.
Our board plays a significant role in our risk oversight. The board makes all relevant Company decisions. As such, it is important for
us to have our Chief Executive Officer serve on the board as he plays key roles in the risk oversight or the Company. As a smaller reporting
company with a small board of directors, we believe it is appropriate to have the involvement and input of all of our directors in risk
oversight matters.
66
Director Independence
Our board has reviewed the independence of our
directors, applying the NASDAQ independence standards. Based on this review, the board determined that each of Caifen Zou, Qiu Li, and
Owens Meng are "independent" within the meaning of the NASDAQ rules. In making this determination, our board considered the
relationships that each of these non-employee directors has with us and all other facts and circumstances our board deemed relevant in
determining their independence. As required under applicable NASDAQ rules, we anticipate that our independent directors will meet on a
regular basis as often as necessary to fulfill their responsibilities, including at least annually in executive session without the presence
of non-independent directors and management.
Board Committees
Currently, three committees have been established
under the board: the Audit Committee, the Compensation Committee and the Nominating Committee.
The Audit Committee is responsible for overseeing
the accounting and financial reporting processes of our company and audits of the financial statements of our company, including the appointment,
compensation and oversight of the work of our independent auditors. The Compensation Committee of the board of directors reviews and makes
recommendations to the board regarding our compensation policies for our officers and all forms of compensation, and also administers
our incentive compensation plans and equity-based plans (but our board retains the authority to interpret those plans). The Nominating
Committee of the board is responsible for the assessment of the performance of the board, considering and making recommendations to the
board with respect to the nominations or elections of directors and other governance issues. The nominating committee considers diversity
of opinion and experience when nominating directors.
Audit Committee
The Audit Committee will be responsible for, among
other matters:
●
appointing, compensating, retaining, evaluating, terminating, and overseeing our independent registered public accounting firm;
●
discussing with our independent registered public accounting firm the independence of its members from its management;
●
reviewing with our independent registered public accounting firm the scope and results of their audit;
●
approving all audit and permissible non-audit services to be performed by our independent registered public accounting firm;
●
overseeing the financial reporting process and discussing with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC;
●
reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls, and compliance with legal and regulatory requirements;
●
coordinating the oversight by our board of directors of our code of business conduct and our disclosure controls and procedures;
●
establishing procedures for the confidential and/or anonymous submission of concerns regarding accounting, internal controls or auditing matters; and
●
reviewing and approving related-party transactions.
Our Audit Committee consists of Caifen Zou, Qiu
Li, and Owens Meng, with Owens Meng serving as chair of the Audit Committee. Our board has affirmatively determined that each of the members
of the Audit Committee meets the definition of "independent director" for purposes of serving on an Audit Committee under
Rule 10A-3 of the Exchange Act and NASDAQ rules. In addition, our board has determined that Lei Wang qualifies as an "audit committee
financial expert" as such term is currently defined in Item 407(d)(5) of Regulation S-K and meets the financial sophistication requirements
of the NASDAQ rules.
67
Compensation Committee
The Compensation Committee will be responsible
for, among other matters:
●
reviewing and approving, or recommending to the board of directors to approve the compensation of our CEO and other executive officers and directors;
●
reviewing key employee compensation goals, policies, plans and programs;
●
administering incentive and equity-based compensation;
●
reviewing and approving employment agreements and other similar arrangements between us and our executive officers; and
●
appointing and overseeing any compensation consultants or advisors.
Our Compensation Committee consists of Caifen
Zou, Qiu Li, and Owens Meng, with Qiu Li serving as chair of the Compensation Committee. Our board has affirmatively determined that each
of the members of the Compensation Committee meets the definition of "independent director" for purposes of serving on Compensation
Committee under NASDAQ rules.
Nominating Committee
The Nominating Committee will be responsible for,
among other matters:
●
selecting or recommending for selection candidates for directorships;
●
evaluating the independence of directors and director nominees;
●
reviewing and making recommendations regarding the structure and composition of our board and the board committees;
●
developing and recommending to the board corporate governance principles and practices;
●
reviewing and monitoring the Company's Code of Business Conduct and Ethics; and
●
overseeing the evaluation of the Company's management
Our Nominating Committee consists of consists
of Caifen Zou, Qiu Li, and Owens Meng, with Caifen Zou serving as chair of the Nominating Committee. Our board has affirmatively determined
that each of the members of the Nominating Committee meets the definition of "independent director" for purposes of serving
on a Nominating Committee under NASDAQ rules.
Duties of Directors
Under British Virgin Islands law, our directors
have a duty to act honestly, in good faith and with a view to our best interests. Our directors also have a duty to exercise the care,
diligence and skills that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to
us, our directors must ensure compliance with our memorandum and articles of association. We have the right to seek damages if a duty
owed by our directors is breached. The functions and powers of our board of directors include, among others:
●
appointing officers and determining the term of office of the officers;
●
authorizing the payment of donations to religious, charitable, public or other bodies, clubs, funds or associations as deemed advisable;
68
●
exercising the borrowing powers of the company and mortgaging the property of the company;
●
executing checks, promissory notes and other negotiable instruments on behalf of the company; and maintaining or registering a register of mortgages, charges or other encumbrances of the company.
A director may vote, attend a board meeting or
sign a document on our behalf with respect to any contract or transaction in which he or she is interested. A director must promptly disclose
the interest to all other directors after becoming aware of the fact that he or she is interested in a transaction we have entered into
or are to enter into. A general notice or disclosure to the board or otherwise contained in the minutes of a meeting or a written resolution
of the board or any committee of the board that a director is a shareholder, director, officer or trustee of any specified firm or company
and is to be regarded as interested in any transaction with such firm or company will be sufficient disclosure, and, after such general
notice, it will not be necessary to give special notice relating to any particular transaction.
The directors may receive such remuneration as
our board of directors may determine from time to time. Each director is entitled to be repaid or prepaid for all traveling, hotel and
incidental expenses reasonably incurred or expected to be incurred in attending meetings of our board of directors or committees of our
board of directors or shareholder meetings or otherwise in connection with the discharge of his or her duties as a director. The compensation
committee will assist the directors in reviewing and approving the compensation structure for the directors. Our board of directors may
exercise all the powers of the company to borrow money and to mortgage or charge our undertakings and property or any part thereof, to
issue debentures, debenture stock and other securities whenever money is borrowed or as security for any debt, liability or obligation
of the company or of any third party.
Limitation on Liability
and Other Indemnification Matters
British Virgin Islands law does not limit the
extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except
to the extent any such provision may be held by the British Virgin Islands courts to be contrary to public policy, such as to provide
indemnification against civil fraud or the consequences of committing a crime. Under our memorandum and articles of association, we may
indemnify our directors, officers and liquidators against all expenses, including legal fees, and against all judgments, fines and amounts
paid in settlement and reasonably incurred in connection with civil, criminal, administrative or investigative proceedings to which they
are party or are threatened to be made a party by reason of their acting as our director, officer or liquidator. To be entitled to indemnification,
these persons must have acted honestly and in good faith with a view to the best interest of the company and, in the case of criminal
proceedings, they must have had no reasonable cause to believe their conduct was unlawful. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted for our directors or officers under the foregoing provisions, we have been informed
that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable
as a matter of United States law.
D.
Employees
The table below provides information as to the
total number of employees at the end of the last three fiscal years. We have no contracts or collective bargaining agreements with labor
unions and have never experienced work stoppages due to labor dispute. We consider our relations with our employees to be good.
2020
2021
2022
Number of Employees
54
42
51
E.
Share Ownership
See Item 7 below.
69
ITEM 7.
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A.
Major shareholders
The following table sets forth, as of April 18,
2023 certain information regarding beneficial ownership of our shares by each person who is known by us to beneficially own more than
5% of our shares. The table also identifies the share ownership of each of our directors, each of our named executive officers, and all
directors and officers as a group. Except as otherwise indicated, the shareholders listed in the table have sole voting and investment
powers with respect to the shares indicated. Our major shareholders do not have different voting rights than any other holder of our shares.
Shares which an individual or group has a right to acquire within 60 days pursuant to the exercise or conversion of options, warrants
or other similar convertible or derivative securities are deemed to be outstanding for the purpose of computing the percentage ownership
of such individual or group, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person
shown in the table. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally
includes voting and investment power. Except as otherwise indicated below, each beneficial owner holds voting and investment power directly.
The percentage of ownership is based on 10,323,268 shares issued and outstanding as of the record date. Unless otherwise indicated, the
address of each beneficial owner listed in the table below is c/o Qingdao Tiandihui Foodstuffs Co. Ltd., 2521 Tiejueshan Road, Huangdao
District, Qingdao, Shandong Province, PRC.
Name of Beneficial Owner
Shares Owned
Percentage
Dandan Liu
1,354,697
13.1
%
Feng Zhang
—
—
Caifen Zou
(1)
—
—
Qiu Li
(1)
—
—
Owens Meng
(1)
—
—
Directors & executive officers as a group (5 persons)
1,354,697
13.1
%
Xiumei Lan
620,000
6.0
%
Liping Gao
640,000
6.2
%
Yanli Xu
580,000
5.6
%
5% or Greater Shareholders as a group (2 persons)
1,840,000
17.8
%
(1)
Independent director.
B.
Related Party Transactions
The related parties had transactions for the years
ended December 31, 2022, 2021 and 2020 consist of the following:
Name of Related Party
Nature of Relationship at December 31, 2021
Dandan Liu
Chairman of the Board, Shareholder, Chief Executive Officer ("CEO")
Rongfeng Cui
Former Chairman of the Board and Former CEO. Rongfeng Cui ceased to be the CEO of the Company effective August 2, 2019.
Rongbing Cui
Former Chief Financial Officer ("CFO"), Rongfeng Cui's brother
Feng Zhang
Chief Financial Officer ("CFO")
Yanjuan Wang
Rongfeng Cui's wife
Yan Fu
Former Sales Vice President
Yuxiang Qi
Dandan Liu's mother
Tide (Shanghai) Industrial Co. Ltd. ("Tide")
Owned by Rongfeng Cui and Yanjuan Wang
70
Name of Related Party
Nature of Relationship at December 31, 2021
Qingdao Like Pet Supplies Co., Ltd. ("Like")
Rongfeng Cui served as CEO, and Shuhua Cui, sister of Rongfeng Cui, served as the legal person. On May 26, 2016, both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like.
Qingdao Saike Environmental Technology Co., Ltd. ("Saike")
Owned by Rongfeng Cui and Yanjuan Wang
Huangdao Ding Ge Zhuang Kangkang Family Farm ("Kangkang Family Farm")
Controlled by Rongfeng Cui's father
TDH Group BVBA
A Belgium company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018
TDH JAPAN
A Japanese company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018. Dissolved in February 2021.
Qingdao Yinhe Jiutian Information Technology Co., Ltd. ("Yinhe Jiutian")
Solely owned by Rongbing Cui
Huangdao Hanyinhe Software Development Center Co., Ltd. ("Hanyinhe")
Solely owned by Xiaomei Wang
Zhenyu Trading (Qingdao) Co., Ltd. ("Zhenyu")
Noncontrolling shareholder of Yichong prior to September 27, 2019; Sole shareholder of Yichong after September 27, 2019
Beijing Quanmin Chongai Information Technology Co., Ltd. ("Quanmin Chongai")
Rongbing Cui serves as supervisor of Quanmin Chongai
LAI LINGS LENEXA
Raymond Ng is the son of Richard Ng
Products Inc.
Owned by Richard Ng
Bo Lings at Zona Rosa in the Northland
Owned by Richard Ng
Richard Ng
Richard owns 49% control of Far Ling's Inc.
Due to related parties from continuing operations
Due to related parties consisted of the following:
December 31,
December 31,
2022
2021
Rongfeng Cui
33,624
32,401
Feng Zhang
22,123
1,568
Products Inc.
-
2,441
Total
$
55,747
$
36,410
71
The balance of due to related parties represents
expenses paid by related parties on behalf of the Company as well as advances the Company obtained from related parties for working capital
purposes. The amounts owed to the related parties are unsecured, non-interest bearing and payable on demand.
Short term loans from related parties
December 31,
December 31,
2022
2021
Rongfeng Cui
$
266,451
$
285,878
Total
$
266,451
$
285,878
In March 2018, TDH Group BVBA borrowed non-interest
bearing, unsecured long term loans from Rongfeng Cui in the aggregate amount of €250,000 (approximately $288,000), of which €60,000
(approximately $69,000), €60,000 (approximately $69,000), €60,000 (approximately $69,000), €60,000 (approximately $69,000),
€10,000 (approximately $11,500) and $0 is due in the years ended December 31, 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.
The Company did not make any repayment to Rongfeng Cui during the years ended December 31, 2019 and 2020 nor subsequently, such default
may lead to callable of the loan at any time by Rongfeng Cui. As a result, the corresponding loan was classified as current liability
and included in short term loans – related parties as of December 31, 2021 and 2020. The Company is aware of the possible penalty
and/or other consequence due to the default, however, no reasonable estimate can be made at this time.
Modification of Loans from related party
In January 2018, the Company entered into a loan agreement with Dandan
Liu. In May 2018, the agreement was amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting
in an increase of principal from RMB3,000,000 (approximately $466,000) to RMB3,030,000 (approximately $471,000) and increase the interest
rate from 3% to 15%. Interest rate will be 24% for the period past due. In March 2019, the agreement was further amended to, among others,
reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal to RMB3,484,500 (approximately
$539,000) and extend the maturity date from January 2019 to May 2019. As of December 31, 2022, the loan had $69,566 of interest outstanding.
In June 2018, the Company entered into a loan
agreement with Yuxiang Qi. Interest rate was 15% during the loan period and 24% for the period past due. In March 2019, the agreement
was amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal from
RMB3,000,000 (approximately $462,000) to RMB3,405,000 (approximately $522,000) and extend the maturity date from December 2018 to May
2019. Beginning in 2019 the Company was in default of this loan, and was subject to 24% annual interest rate.
The Company analyzed the amendments under ASC
470-50 and concluded that these amendments did not qualify for debt modification.
The interest expenses for loans from related parties
amounted to $0, $29,581 and $43,835 for the years ended December 31, 2022, 2021 and 2020, respectively.
Accounts payable to related parties
December 31,
December 31,
2022
2021
Richard Ng
$
1,033
$
-
Total
$
1,033
$
-
C.
Interests of Experts and Counsel
Not required.
72
ITEM 8.
FINANCIAL INFORMATION
A.
Consolidated Statements and Other Financial Information.
See Item 18 for our audited
consolidated financial statements.
Legal Proceedings
Except as set forth below, we are not involved
in any legal proceedings; nor are we aware of any claims that could have a material adverse effect on our business, financial condition,
results of operations or cash flows.
●
Legal claims by vendors and lenders
. During
    the months of November 2019 to April 2021, the Company has been a subject of 57 lawsuits by its raw material supplies, printing and packaging
    supplies, transportation companies and other vendors. The claims raised in these lawsuits pertain to the Company's non-payment of
    various invoices for supplier and vendor services rendered, with interest and costs. As of the date of this Annual Report, the creditors
    of 44 cases have reached civil conciliation letters with our company, and the court has issued civil judgments in 9 cases, another four
    withdrew their cases for reasons including lack of evidence. The mediation and judgment is estimated approximately RMB13.86 million (USD2.12
    million). On March 13, 2021, the land and factory buildings above the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were auctioned
    by the court for $5,098,461 (RMB33.14 million). On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong
    Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and
    it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings.
As of December 31, 2022 and as of the date
of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
●
On December 2, 2019, QLRE filed a civil lawsuit against Tiandihui,
Rongfeng Cui, and Yanjuan Wang. The Company entered into a loan agreement with QLRE in 2018 and borrowed RMB20 million (USD3.18 million)
from QLRE in connection with the purchase of a factory. The loan was guaranteed by Rongfeng Cui and his wife, Yanjuan Wang. The Company
failed to make repayment to QLRE on time. On March 4, 2020, the Court has ruled that: (i) the Company repay QLRE with loan principal
of RMB 20 million plus interest of RMB 550,000 accrued as of October 31, 2019; The payment was to be made within 10 business days after
the court ruling takes effect (ii) assume and pay the interest at the rate of 2% per month for the period from the date of November 1,
2019 to the date of full discharge of the debt. If the debt was not paid within the required timeframe, interest doubled from the date
the court order takes effect until the date of full discharge of the debt; (iii) Rongfeng Cui and Yanjuan Wang, as guarantors, bore joint
and several responsibilities for clearing the debts and (iv) The Company and Rongfeng Cui jointly bore the litigation fee of RMB77,000
(USD$11,933). As of December 31, 2021, we had not satisfied the repayment to QLRE. On March 16, 2022, the People's Court of Huangdao
District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy
liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy
proceedings. As of December 31, 2022 and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected
to be completed by the end of 2023.
●
On January 15, 2020
CCB
instituted a civil claim against Tiandihui, Rongfeng Cui, and Yanjuan Wang. The plaintiff alleged that it executed a loan agreement with
the Company in the amount of RMB19.93 million (USD3.08 million) for the purchase of manufacturing facility and the associated land use
right located at Lingang Economic Development Zone, Huangdao District, Qingdao, Shandong Province, People's Republic of China.
Rongfeng Cui and his wife, Yanjuan Wang, co-signed for this loan as personal guarantors subject to joint and several liability in connection
with the loan. The loan with CCB was guaranteed by Rongfeng Cui and Yanjuan Wang, pledged by the aforementioned manufacturing facilities
and associated land use right. On April 14, 2020, the Court ruled that i) the Company repay RMB19.93 million (USD3.25 million) of principal
and accrued interest to CCB, ii) to execute the sale of the mortgaged property and iii) Rongfeng Cui and Yanjuan Wang bear joint and
several security liability for the payment. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were
auctioned by the court for $5,098,461 (RMB33.14 million), among which, $3,192,827 (RMB21.14 million) was used to repay loan principal
and accrued interest to CCB based on the court order. The repayment was completed as of the date of this filing.
73
On November 11, 2019 SPDB filed a civil
lawsuit against Tiandihui, Saike, Gaochuang, Rongfeng Cui, and Yanjuan Wang. In 2018, the Company entered into agreements with SPDB to
borrow an aggregate of RMB 4.85 million (USD 0.75 million) from SPDB for working capital purpose. The borrowing from SPDB was guaranteed
by Rongfeng Cui and Yanjuan Wang, pledged by land use right and real property of Saike and a real property of Rongfeng Cui and Yanjuan
Wang. The Company failed to make repayment to SPDB on time. On October 24, 2020, the court ruled that, (i) the Company repay SPDB with
bank acceptance draft principals and interest at the annual interest rate of 18.25%. The payment be made within 10 business days after
the court ruling takes effect. If the debt was not paid within the required timeframe, interest doubled from the date the court order
took effect until the date of full discharge of the debt (ii) the Company bear the litigation fees of RMB156,880 (USD 24,312), (iii) Rongfeng
Cui and Yanjuan Wang, as guarantors, bear joint and several responsibilities for clearing the debts and (iv) if the court decides to auction
the pledged land use right and real properties, SPDB shall have the priority right of the repayment from the auction proceeds. As of December
31, 2021, we had not satisfied the repayment to SPDB. On March 16, 2022, the People's Court of Huangdao District, Qingdao City,
Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui,
and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December
31, 2022 and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the
end of 2023.
●
On
                                            December 10, 2019, Gaochuang, initiated a civil claim against, Saike, Rongfeng Cui, and Yanjuan
                                            Wang. In 2018, the Company entered into agreements with SPDB for bank acceptance draft and
                                            Gaochuang executed the guarantee of SPDB bank acceptance deposit on behalf of the Company
                                            in the amount of RMB1.2 million (USD0.19 million). The Company failed to repay the RMB 1.2
                                            million ($0.19 million) deposit to Gaochuang upon the bank acceptance draft maturity date.
                                            The deposit made by Gaochuang was guaranteed by certain of the Company's fixed assets
                                            and patents. Saike, Rongfeng Cui and Yanjuan Wang are also subject to joint and several responsibilities.
                                            On December 29, 2020, the court ruled that, (i) the Company repay the RMB 1.2 million ($0.19
                                            million) deposit to Gaochuang and the interest at the annual interest rate of 4.15%. The
                                            payment was to be made within 10 business days after the court ruling takes effect. If the
                                            debt was not paid within the required timeframe, interest doubled from the date the court
                                            order takes effect until the date of full discharge of the debt (ii) the Company bear the
                                            litigation fees of RMB 83,127(USD 12,882) and (iii) if the court decides to auction the pledged
                                            fixed assets and patent, Gaochuang shall have the priority right of the repayment from the
                                            auction proceeds. As of December 31, 2021, we had not satisfied the repayment to Gaochuang.
                                            On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong
                                            Province made a civil ruling and announced the acceptance of creditors' application
                                            of bankruptcy liquidation of Tiandihui and it entered into bankruptcy proceedings. Accordingly,
                                            these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022
                                            and as of the date of this filing, the bankruptcy proceedings have not been completed and
                                            are expected to be completed by the end of 2023.
●
On
                                            May 6, 2020, the Postal Savings Bank of China Limited Weihai Road Sub-branch of Qingdao North
                                            District (hereinafter referred to as Postal Savings) filed a civil lawsuit against Tiandihui,
                                            Rongfeng Cui and Yanjuan Wang. The Company entered into two loan agreements with Postal Savings
                                            in 2018 and 2019, respectively, and borrowed RMB 9.9 million ($1.53 million) in aggregate.
                                            The loans were guaranteed by Rongfeng Cui and Yanjuan Wang, pledged by a real property of
                                            the Company and a real property of Rongfeng Cui. The Company failed to make repayment to
                                            Postal Savings on time. In June 2020, the court ruled that, i) the Company to repay Postal
                                            Savings with principals and interest of the loan, ii) the Company bear the litigation fees
                                            incurred by Postal Savings, iii) if the court decides to auction the pledged real properties,
                                            Postal Savings shall have the priority right of the repayment from the auction proceeds and
                                            iv) Rongfeng Cui and Yanjuan Wang, as guarantors, bear joint and several responsibilities
                                            for clearing the debts. As of December 31, 2021, we had satisfied the repayment to Postal
                                            Savings. On March 16, 2022, the People's Court of Huangdao District, Qingdao City,
                                            Shandong Province made a civil ruling and announced the acceptance of creditors' application
                                            of bankruptcy liquidation of Tiandihui and it entered into bankruptcy proceedings. Accordingly,
                                            these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022
                                            and as of the date of this filing, the bankruptcy proceedings have not been completed and
                                            are expected to be completed by the end of 2023.
74
●
Labor arbitration claims by former employees
. The Company estimates that its headcount will reduce to around 51 full-time employees through the end of this adjustment period. As a result of the layoffs, certain of the Company's former employees commenced arbitration proceedings against the Company under applicable labor rules and standards, claiming, among others, lost wages, severance payments and/or social security obligations totaling RMB3.68 million (USD0.56 million). As of the reporting date, there were 98 labor arbitrations, of which 6 reached a settlement at the first instance stage, and 92 decisions of the second instance have taken effect. The Company accrued approximately $0.4 million contingent liabilities in other current liabilities on the consolidated balance sheet as of December 31, 2019 and recognized contingent losses of approximately $0.4 million for the year ended December 31, 2019. Upon ruling of these cases, the Company further accrued approximately $0.1 million wage and/or severance payables in other current liabilities on the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $0.1 million for the year ended December 31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Tiandihui were actioned by the court for $5,098,461 (RMB 33.14 million). In 2021, we have paid RMB 3.73 million to substantially settle the labor arbitration cases with our former employees and we only have RMB 0.5 million ($0.08 million) remaining severance payables to them as of December 31, 2021. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Tiandihui, and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022 and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
Dividend Policy
The holders of shares of our common shares are
entitled to dividends out of funds legally available when and as declared by our board of directors. Our board of directors has never
declared a dividend and does not anticipate declaring a dividend in the foreseeable future. Should we decide in the future to pay dividends,
as a holding company, our ability to do so and meet other obligations depends upon the receipt of dividends or other payments from our
operating subsidiary and other holdings and investments. In addition, the operating companies may, from time to time, be subject to restrictions
on their ability to make distributions to us, including as a result of restrictive covenants in loan agreements, restrictions on the conversion
of local currency into U.S. dollars or other hard currency and other regulatory restrictions. In the event of our liquidation, dissolution
or winding up, holders of our common shares are entitled to receive, ratably, the net assets available to shareholders after payment of
all creditors.
To date, none of the PRC subsidiaries has made
any dividends or distributions to TDH Holdings, Inc. We anticipate that we will retain any earnings to support operations and to finance
the growth and development of our business. Therefore, we do not expect to pay cash dividends in the foreseeable future. Under British
Virgin Islands law, we may only pay dividends from surplus (the excess, if any, at the time of the determination of the total assets of
our company over the sum of our liabilities, as shown in our books of account, plus our capital), and we must be solvent before and after
the dividend payment in the sense that we will be able to satisfy our liabilities as they become due in the ordinary course of business;
and the realizable value of assets of our company will not be less than the sum of our total liabilities, other than deferred taxes as
shown on our books of account, and our capital. If we determine to pay dividends on any of our Common Shares in the future, as a holding
company, we will be dependent on receipt of funds from our Hong Kong subsidiaries, TDH HK Limited and TDH Food Limited. Current PRC regulations
permit the PRC Subsidiaries to pay dividends to TDH HK Limited and TDH Food Limited only out of their accumulated profits, if any, determined
in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside
at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered
capital. Each of such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare
fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves
can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective
companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.
B.
Significant Changes
Except as disclosed elsewhere in this Annual Report,
we have not experienced any significant changes since the date of our audited consolidated financial statements included in this Annual
Report.
75
ITEM 9.
THE OFFER AND LISTING
A.
Offer and Listing Details
We completed our initial public offering on September
21, 2017. Our Common Shares trade under the trading symbol "PETZ" on the NASDAQ Capital Market. As of April 24, 2023, there
were approximately 14 holders of record of our Common Shares. This excludes our Common Shares owned by shareholders holding Common Shares
under nominee security position listings. On April 24, 2023 the last sales price of our Common Shares as reported on the NASDAQ Capital
Market was $1.04 per common share.
B.
Plan of Distribution
Not Applicable.
C.
Markets
Our shares have been listed on the NASDAQ Stock
Market under the symbols PETZ, since September 21, 2017, following the completion of our initial public offering.
D.
Selling Shareholders
Not Applicable.
E.
Dilution
Not Applicable.
F.
Expenses of the Issue
Not Applicable.
ITEM 10.
ADDITIONAL INFORMATION
A.
Share Capital
Not Applicable.
B.
Memorandum and Articles of Association
The information required by Item 10.B of Form
20-F is included in the section titled "Description of Share Capital" in our Registration Statement on Form F-1 initially
filed with the SEC on August 11, 2017 (File No.: 333-219896), which section is incorporated herein by reference.
C.
Material Contracts
None
D.
Exchange controls
Under British Virgin Islands law, there are currently
no restrictions on the export or import of capital, including foreign exchange controls or restrictions that affect the remittance of
dividends, interest or other payments to nonresident holders of our shares.
E.
Taxation
76
PRC Enterprise Income Tax
According to the Enterprise Income Tax Law of
PRC (the "EIT Law"), which was promulgated on March 16, 2007, last amended in February 2017 and became effective as of January
1, 2008, the income tax for both domestic and foreign-invested enterprises is at a uniform rate of 25%. The Regulation on the Implementation
of Enterprise Income Tax Law of the PRC (the "EIT Rules") was promulgated on December 6, 2007 and became effective on January
1, 2008. On April 14, 2008, the Chinese Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation enacted
the Administrative Measures for Certifying High and New Technology Enterprises (the "Certifying Measures"), which retroactively
became effective on January 1, 2008 and was amended on January 29, 2016. Under the EIT Law and the Certifying Measures, certain qualified
high-tech companies may benefit from a preferential tax rate of 15% if they own their core intellectual properties and are classified
into certain industries strongly supported by the Chinese government and set forth by certain departments of the Chinese State Council.
Tiandihui was granted the high and new technology enterprise ("HNTE") qualification valid until the year end of December 2018.
The Company was subject to 25% income tax rate in 2021 and 2022. On March 16, 2022, the People's Court of Huangdao District, Qingdao
City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of
Tiandihui, and it entered into bankruptcy proceedings. Under the EIT Law, an enterprise established outside of China with a "de
facto management body" within China is considered a "resident enterprise", which means that it is treated in a manner
similar to a Chinese enterprise for enterprise income tax purposes. Although the implementation rules of the EIT Law define "de
facto management body" as a managing body that exercises substantive and overall management and control over the production and
business, personnel, accounting books and assets of an enterprise, the only official guidance for this definition currently available
is set forth in Circular 82 issued by the State Administration of Taxation, at April 22, 2009 which provides that a foreign enterprise
controlled by a PRC company or a PRC company group will be classified as a "resident enterprise" with its "de facto
management bodies" located within China if the following criteria are satisfied:
●
the place where the senior management and core management departments that are in charge of its daily operations perform their duties is mainly located in the PRC;
●
its financial and human resources decisions are made by or are subject to approval by persons or bodies in the PRC;
●
its major assets, accounting books, company seals, and minutes and files of its board and shareholders' meetings are located or kept in the PRC; and
●
more than half of the enterprise's directors or senior management with voting rights frequently reside in the PRC.
We do not believe that we meet the conditions
outlined in the preceding paragraph since Tiandihui does not have a PRC enterprise or enterprise group as our primary controlling shareholder.
In addition, we are not aware of any offshore holding companies with a corporate structure similar to the Company that has been deemed
a PRC "resident enterprise" by the PRC tax authorities.
If we are deemed a China resident enterprise,
we may be subject to the EIT at the rate of 25% on our global income, except that the dividends we receive from our Chinese subsidiaries
may be exempt from the EIT to the extent such dividends are deemed dividends among qualified resident enterprises. If we are considered
a resident enterprise and earn income other than dividends from our Chinese subsidiaries, a 25% EIT on our global income could significantly
increase our tax burden and materially and adversely affect our cash flow and profitability.
PRC VAT
According to the Provisional Regulations of the
People's Republic of China on Value-added Tax (2017), which were revised and came into effect on November 20, 2017, the sales of
goods, processing, repair and replacement services, sales of services, intangible assets, immovable property and imported goods within
the territory of the People's Republic of China must pay VAT. The amount of VAT payable is calculated as "output VAT"
minus "input VAT", and the rates of VAT are 13% or 9% for sales of our goods as determined by State Administration of Taxation.
77
People's Republic of China Taxation
Under the EIT law and EIT Rules, both of which
became effective on January 1, 2008, the income tax for both domestic and foreign-invested enterprises is at a uniform rate of 25%, unless
they qualify for certain exceptions. On April 14, 2008, the Chinese Ministry of Science and Technology, Ministry of Finance and State
Administration of Taxation enacted the Certifying Measures, which retroactively became effective on January 1, 2008 and was amended on
January 29, 2016 provide that certain qualified high-tech companies may benefit from a preferential tax rate of 15% if they own their
core intellectual properties and are classified into certain industries strongly supported by the Chinese government and set forth by
certain departments of the Chinese State Council. Tiandihui was granted the HNTE qualification valid for three years commencing on December
2, 2016. Tiandihui's status as a "high-tech enterprise" was automatically revoked by the relevant government departments
when it expired on December 2, 2019. We are a holding company incorporated in the British Virgin Islands and we gain substantial income
by way of dividends from our PRC subsidiaries. The EIT Law and Rules provide that China-sourced income of foreign enterprises, such as
dividends paid by a PRC Subsidiary to its equity holders that are non-resident enterprises, will normally be subject to PRC withholding
tax at a rate of 10%, unless any such foreign investor's jurisdiction of incorporation has tax treaty with China that provides for
a different withholding arrangement.
British Virgin Islands Taxation
Under the BVI Act as currently in effect, a holder
of common shares who is not a resident of the British Virgin Islands is exempt from British Virgin Islands income tax on dividends paid
with respect to the common shares and all holders of common shares are not liable to the British Virgin Islands for income tax on gains
realized during that year on sale or disposal of such shares. The British Virgin Islands does not impose a withholding tax on dividends
paid by a company incorporated or re-registered under the BVI Act. There are no capital gains, gift or inheritance taxes levied by the
British Virgin Islands on companies incorporated or re-registered under the BVI Act. In addition, shares of companies incorporated or
re-registered under the BVI Act are not subject to transfer taxes, stamp duties or similar charges. There is no income tax treaty or convention
currently in effect between the United States and the British Virgin Islands or between China and the British Virgin Islands.
United States Federal Income Taxation
The following does not address the tax consequences
to any particular investor or to persons in special tax situations such as:
●
banks;
●
financial institutions;
●
insurance companies;
●
regulated investment companies;
●
real estate investment trusts;
●
broker-dealers;
●
traders that elect to mark to market;
●
U.S. expatriates;
●
tax-exempt entities;
●
persons liable for alternative minimum tax;
●
persons holding our common shares as part of a straddle, hedging, conversion or integrated transaction;
●
persons that actually or constructively own 10% or more of our voting shares;
●
persons who acquired our common shares pursuant to the exercise of any employee share option or otherwise as consideration; or
●
persons holding our common shares through partnerships or other pass-through entities.
78
Prospective purchasers are urged to consult their
tax advisors about the application of the U.S. Federal tax rules to their particular circumstances as well as the state, local, foreign
and other tax consequences to them of the purchase, ownership and disposition of our common shares.
Taxation of Dividends and Other Distributions
on our Shares
Subject to the passive foreign investment company
rules discussed below, the gross amount of distributions made by us to you with respect to the common shares (including the amount of
any taxes withheld therefrom) will generally be includable in your gross income as dividend income on the date of receipt by you, but
only to the extent that the distribution is paid out of our current or accumulated earnings and profits (as determined under U.S. federal
income tax principles). With respect to corporate U.S. Holders, to the extent that the amount of the distribution exceeds our current
and accumulated earnings and profits (as determined under U.S. federal income tax principles), it will be treated first as a tax-free
return of your tax basis in your common shares, and to the extent the amount of the distribution exceeds your tax basis, the excess will
be taxed as capital gain. We do not intend to calculate our earnings and profits under U.S. federal income tax principles. Therefore,
a U.S. Holder should expect that a distribution will be treated as a dividend even if that distribution would otherwise be treated as
a non-taxable return of capital or as capital gain under the rules described above. The dividends will not be eligible for the dividends-received
deduction allowed in respect of dividends received from other U.S. corporations.
With respect to non-corporate U.S. Holders, including
individual U.S. Holders, dividends will be taxed at the lower capital gains rate applicable to qualified dividend income, provided that
(1) the common shares are readily tradable on an established securities market in the United States, or we are eligible for the benefits
of an approved qualifying income tax treaty with the United States that includes an exchange of information program, (2) we are not a
passive foreign investment company (as discussed below) for either our taxable year in which the dividend is paid or the preceding taxable
year, and (3) certain holding period requirements are met. Under U.S. Internal Revenue Service authority, our common shares will be considered
for purpose of clause (1) above to be readily tradable on an established securities market in the United States when they are listed on
the NASDAQ Capital Market. You are urged to consult your tax advisors regarding the availability of the lower rate for dividends paid
with respect to our common shares, including the effects of any change in law after the date of this Annual Report.
Dividends on our common shares will constitute
foreign source income for foreign tax credit limitation purposes. If the dividends are taxed as qualified dividend income (as discussed
above), the amount of the dividend taken into account for purposes of calculating the foreign tax credit limitation will be limited to
the gross amount of the dividend, multiplied by the reduced rate divided by the highest rate of tax normally applicable to dividends.
The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose,
dividends distributed by us with respect to our common shares will constitute "passive category income" but could, in the
case of certain U.S. Holders, constitute "general category income."
Taxation of Dispositions of Shares
Subject to the passive foreign investment company
rules discussed below, you will recognize taxable gain or loss on any sale, exchange or other taxable disposition of shares equal to the
difference between the amount realized (in U.S. dollars) for the share and your tax basis (in U.S. dollars) in the shares. The gain or
loss will be capital gain or loss. If you are a non-corporate U.S. Holder, including an individual U.S. Holder, who has held the common
shares for more than one year, you will be eligible for the capital gains tax rate of 20% (or lower for individuals in lower tax brackets).
The deductibility of capital losses is subject to limitations. Any such gain or loss that you recognize will generally be treated as United
States source income or loss for foreign tax credit limitation purposes.
79
Passive Foreign Investment Company
Based on our current and anticipated operations
and the composition of our assets, we do not expect to be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes
for our current taxable year ending December 31, 2022. Our actual PFIC status for the current taxable years ending December 31, 2022 will
not be determinable until after the close of such year and, accordingly, there is no guarantee that we will not be a PFIC for the current
year. PFIC status is a factual determination for each taxable year which cannot be made until the close of the taxable year. A non-U.S.
corporation is considered a PFIC for any taxable year if either:
●
at least 75% of its gross income is passive income; or
●
at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income (the "asset test").
We will be treated as owning our proportionate
share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly,
at least 25% (by value) of the stock. We must make a separate determination each year as to whether we are a PFIC. As a result, our PFIC
status may change. In particular, because the value of our assets for purposes of the asset test will generally be determined based on
the market price of our common shares, our PFIC status will depend in large part on the market price of our common shares. Accordingly,
fluctuations in the market price of the common shares may cause us to become a PFIC. If we are a PFIC for any year during which you hold
common shares, we will continue to be treated as a PFIC for all succeeding years during which you hold common shares. However, if we cease
to be a PFIC, you may avoid some of the adverse effects of the PFIC regime by making a "deemed sale" election with respect
to the common shares.
If we are a PFIC for any taxable year during which
you hold common shares, you will be subject to special tax rules with respect to any "excess distribution" that you receive
and any gain you realize from a sale or other disposition (including a pledge) of the common shares, unless you make a "mark-to-market"
election as discussed below. Distributions you receive in a taxable year that are greater than 125% of the average annual distributions
you received during the shorter of the three preceding taxable years or your holding period for the common shares will be treated as an
excess distribution. Under these special tax rules:
●
the excess distribution or gain will be allocated ratably over your holding period for the common shares;
●
the amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which we were a PFIC, will be treated as ordinary income, and
●
the amount allocated to each other year will be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. The tax liability for amounts allocated to such years cannot be offset by any net operating losses for such years, and gains realized on the sale of the common shares cannot be treated as capital, even if you hold the common shares as capital assets.
A U.S. Holder of "marketable stock"
(as defined below) in a PFIC may make a mark-to-market election for such stock to elect out of the tax treatment discussed above. If you
make a mark-to-market election for the common shares, you will include in income each year an amount equal to the excess, if any, of the
fair market value of the common shares as of the close of your taxable year over your adjusted basis in such common shares. You are allowed
a deduction for the excess, if any, of the adjusted basis of the common shares over their fair market value as of the close of the taxable
year. However, deductions are allowable only to the extent of any net mark-to-market gains on the common shares included in your income
for prior taxable years. Amounts included in your income under a mark-to-market election, as well as gain on the actual sale or other
disposition of the common shares, are treated as ordinary income. Ordinary loss treatment also applies to the deductible portion of any
mark-to-market loss on the common shares, as well as to any loss realized on the actual sale or disposition of the common shares, to the
extent that the amount of such loss does not exceed the net mark-to-market gains previously included for such common shares. Your basis
in the common shares will be adjusted to reflect any such income or loss amounts. If you make a valid mark-to-market election, the tax
rules that apply to distributions by corporations that are not PFICs would apply to distributions by us, except that the lower applicable
capital gains rate for qualified dividend income discussed above under "Taxation of Dividends and Other Distributions on our Shares"
generally would not apply.
80
The mark-to-market election is available only
for "marketable stock", which is stock that is traded in other than de minimis quantities on at least 15 days during each
calendar quarter ("regularly traded") on a qualified exchange or other market (as defined in applicable U.S. Treasury regulations),
including the NASDAQ Capital Market. If the common shares are regularly traded on the NASDAQ Capital Market and if you are a holder of
common shares, the mark-to-market election would be available to you were we to be or become a PFIC.
Alternatively, a U.S. Holder of stock in a PFIC
may make a "qualified electing fund" election with respect to such PFIC to elect out of the tax treatment discussed above.
A U.S. Holder who makes a valid qualified electing fund election with respect to a PFIC will generally include in gross income for a taxable
year such holder's pro rata share of the corporation's earnings and profits for the taxable year. However, the qualified electing
fund election is available only if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as
required under applicable U.S. Treasury regulations. We do not currently intend to prepare or provide the information that would enable
you to make a qualified electing fund election. If you hold common shares in any year in which we are a PFIC, you will be required to
file U.S. Internal Revenue Service Form 8621 regarding distributions received on the common shares and any gain realized on the disposition
of the common shares.
You are urged to consult your tax advisors regarding
the application of the PFIC rules to your investment in our common shares and the elections discussed above.
Information Reporting and Backup Withholding
Dividend payments with respect to our common shares
and proceeds from the sale, exchange or redemption of our common shares may be subject to information reporting to the U.S. Internal Revenue
Service and possible U.S. backup withholding at a current rate of 28%. Backup withholding will not apply, however, to a U.S. Holder who
furnishes a correct taxpayer identification number and makes any other required certification on U.S. Internal Revenue Service Form W-9
or who is otherwise exempt from backup withholding. U.S. Holders who are required to establish their exempt status generally must provide
such certification on U.S. Internal Revenue Service Form W-9. U.S. Holders are urged to consult their tax advisors regarding the application
of the U.S. information reporting and backup withholding rules. Backup withholding is not an additional tax. Amounts withheld as backup
withholding may be credited against your U.S. federal income tax liability, and you may obtain a refund of any excess amounts withheld
under the backup withholding rules by filing the appropriate claim for refund with the U.S. Internal Revenue Service and furnishing any
required information.
United States Federal Income Taxation
The following sets forth the material British
Virgin Islands, Chinese and U.S. federal income tax matters related to an investment in our common shares. It is directed to U.S. Holders
(as defined below) of our common shares and is based on laws and relevant interpretations thereof in effect as of the date of this Annual
Report, all of which are subject to change. This description does not deal with all possible tax consequences relating to an investment
in our common shares, such as the tax consequences under state, local and other tax laws. The following brief description applies only
to U.S. Holders (defined below) that hold common shares as capital assets and that have the U.S. dollar as their functional currency.
This brief description is based on the tax laws of the United States in effect as of the date of this Annual Report and on U.S. Treasury
regulations in effect or, in some cases, proposed, as of the date of this Annual Report, as well as judicial and administrative interpretations
thereof available on or before such date. All of the foregoing authorities are subject to change, which change could apply retroactively
and could affect the tax consequences described below. The brief description below of the U.S. federal income tax consequences to "U.S.
Holders" will apply to you if you are a beneficial owner of shares and you are, for U.S. federal income tax purposes:
●
an individual who is a citizen or resident of the United States;
●
a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the United States, any state thereof or the District of Columbia;
81
●
an estate whose income is subject to U.S. federal income taxation regardless of its source; or
●
a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.
Belgium taxation
The current enterprise income tax rate is approximately
34%, which includes 3% additional tax, for Belgium companies. Small and medium-sized enterprises may enjoy preferential tax rate if they
meet the requirements.
Japan taxation
The enterprise income tax includes national income
tax and local special tax for companies operated in Japan. The current national enterprise income tax rate is 30%. And the actual income
tax burden will be around 35% - 40% given the local special tax was considered.
F.
Dividends and paying agents
Not required.
G.
Statement by experts
Not required.
H.
Documents on display
We file annual reports and other information with
the Securities and Exchange Commission. We file annual reports on Form 20-F and submit other information under cover of Form 6-K. As a
foreign private issuer, we are exempt from the proxy requirements of Section 14 of the Exchange Act and our officers, directors and principal
shareholders are exempt from the insider short-swing disclosure and profit recovery rules of Section 16 of the Exchange Act. Annual reports
and other information we file with the Commission may be inspected at the public reference facilities maintained by the Commission at
Room 1024, 100 F. Street, N.E., Washington, D.C. 20549, and copies of all or any part thereof may be obtained from such offices upon payment
of the prescribed fees. You may call the Commission at 1-800-SEC-0330 for further information on the operation of the public reference
rooms and you can request copies of the documents upon payment of a duplicating fee, by writing to the Commission. In addition, the Commission
maintains a web site that contains reports and other information regarding registrants (including us) that file electronically with the
Commission which can be assessed at http://www.sec.gov.
I.
Subsidiary Information
Not required.
82
ITEM 11.
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Interest Rate Risk
Our main interest rate exposure relates to bank
borrowings. We manage our interest rate exposure with a focus on reducing our overall cost of debt and exposure to changes in interest
rates. In 2022, we had $211.45 million weighted average outstanding bank loans, with weighted average effective interest rate of 9.42%.
In 2021, we had $2.69 million weighted average outstanding bank loans, with weighted average effective interest rate of 9.41%. In 2020,
we had $5.11 million weighted average outstanding bank loans, with weighted average effective interest rate of 9.03%.
As of December 31, 2022, if interest rates
increased/decreased by 1%, with all other variables having remained constant, and assuming the amount of bank borrowings outstanding
at the end of the year was outstanding for the entire year, profit attributable to equity owners of our company would have been
$
21,145, lower/higher,
respectively, mainly as a result of higher/lower interest income from our cash and cash equivalents and loan receivables
As of December 31, 2021, if interest rates increased/decreased
by 1%, with all other variables having remained constant, and assuming the amount of bank borrowings outstanding at the end of the year
was outstanding for the entire year, profit attributable to equity owners of our company would have been $1,783, lower/higher, respectively,
mainly as a result of higher/lower interest income from our cash and cash equivalents and loan receivables.
Foreign Currency Risk
Our functional currency is the RMB, Euro and Yen,
and our financial statements are presented in U.S. dollar. We mainly use RMB in domestic transaction, and the transaction settled with
Euro and Yen are immaterial. The RMB depreciated against the U.S. dollar by 9.23% in 2022 and appreciated against the U.S. dollar by 2.7%
in 2021. The change in the value of RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms
without giving effect to any underlying change in our business or results of operation.
Currently, our assets, liabilities, revenues and
costs are denominated in RMB and in U.S. dollars, our exposure to foreign exchange risk will primarily relate to those financial assets
denominated in U.S. dollars. Any significant revaluation of RMB against U.S. dollar may materially affect our earnings and financial position,
and the value of, and any dividends payable on, our common shares in U.S. dollars in the future.
ITEM 12.
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not required.
83
PART II
ITEM 13.
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
As of December 31, 2022, there has been approximately
USD15.71 million default of indebtedness and there is no any arrearage in the payment of dividends.
ITEM 14.
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
ITEM 15.
CONTROLS AND PROCEDURES
Disclosure Controls and
Procedures
As of December 31, 2022 (the "Evaluation
Date"), the Company carried out an evaluation, under the supervision of and with the participation of management, including the
Company's Chief Executive Officer and Chief Financial Officer (the "Certifying Officers"), of the effectiveness of the
design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934). Based on the foregoing, the Certifying Officers concluded that as of the Evaluation Date the Company's
disclosure controls and procedures were not effective as of December 31, 2022.
The material weakness identified by our management
include (i) a lack of sufficient accounting staff and resources with appropriate knowledge of generally accepted accounting principles
in the United States ("U.S. GAAP") and SEC reporting and compliance requirements; and (ii) a lack of an effective review process
which may lead to material audit adjustments to the financial statements.
In order to address the foregoing material weakness,
we have put in place additional controls, including, among others, hiring and replacing certain management team members. Our CEO has established
a new management team to deal with operation management challenges of the Company, and our CFO has been working on improving the Company's
financial and reporting functions. We also plan to hire more qualified accounting personnel with relevant U.S. GAAP and SEC reporting
experience and qualifications to strengthen the financial reporting function and implement regular and continuous U.S. GAAP accounting
and financial reporting training programs for our accounting and financial reporting personnel. Overall, the Company is working through
and standardizing its business processes, instituting business procedures and adding controls and additional supervision, particularly,
in the areas of control duties and data sharing and supervision so as to provide effective means of linking various functions and departments
within the Company.
We intend to complete the remediation effort on
or before the end of the 2023 fiscal year and will conduct periodic assessments of the state of the Company's financial reporting
measures and systems, as a whole.
Management's annual
report on internal control over financial reporting
Our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed
under the supervision of our chief executive officer and chief financial officer to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of our consolidated financial statements for external reporting purpose in accordance with
U.S. generally accepted accounting principles.
84
Management assessed the effectiveness of our internal
control over financial reporting as of December 31, 2022. In making this assessment, management used the framework set forth in the report
Internal Control – Integrated framework issued in 2013 by the Committee of Sponsoring Organization of the Treadway Commission, or
COSO. The COSO framework summarizes each of the components of a company's internal control system, including (1) the control environment,
(2) risk assessment, (3) control activities, (4) information and communication and (5) monitoring.
Based on these evaluations, our management concluded
that, due to the material weakness described above, our internal control over financial reporting was not effective as of December 31,
2022.
Attestation report of the registered public
accounting firm.
Not applicable.
Changes in Internal Controls over Financial
Reporting
Other than the changes described above, there were no changes
in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) during
the period covered by this Annual Report that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
ITEM 16.
RESERVED
ITEM 16A.
AUDIT COMMITTEE FINANCIAL EXPERT.
Our Board of Directors has determined that Owens
Meng is an audit committee financial expert as that term is defined in Item 16A(b) of Form 20-F, and "independent" as that
term is defined in the NASDAQ listing standards.
ITEM 16B.
CODE OF ETHICS.
We have adopted a Code of Business Conduct and
Ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer,
and principal accounting officer. A copy of the Code of Business Conduct and Ethics is available on our website, www.tdhpet.com. The information
on our corporate website is not a part of this Annual Report.
ITEM 16C.
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following table represents the approximate
aggregate fees for services rendered by YCM CPA INC. for the periods indicated:
December 31,
2022
December 31,
2021
Audit Fees
$
160,000
$
120,000
Audit Related Fees
-
-
Tax Fees
-
-
All Other Fees
-
-
Total Fees
$
160,000
$
120,000
85
The following table represents the approximate
aggregate fees for services rendered by MaloneBailey, LLP for the periods indicated:
December 31,
2022
December 31,
2021
Audit Fees
$
-
$
149,000
Audit Related Fees
-
-
Tax Fees
-
-
All Other Fees
-
-
Total Fees
$
-
$
149,000
Pre-Approval of Services
Our audit committee evaluated and approved in
advance the scope and cost of the engagement of an auditor before the auditor rendered its audit and non-audit services.
ITEM 16D.
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES.
None.
ITEM 16E.
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.
No purchases of our securities
were made by us or our affiliates in 2022.
ITEM 16F.
CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
The information contained in
our Form 6-K filed on January 4, 2022 is incorporated herein by reference pursuant to instruction 2 of Item 16F.
ITEM 16G.
CORPORATE GOVERNANCE
We are incorporated in the
BVI and our corporate governance practices are governed by applicable BVI law, our memorandum and articles of association. In addition,
because our common shares are listed on the NASDAQ Capital Market, we are subject to NASDAQ's corporate governance requirements.
NASDAQ Listing Rule 5615(a)(3)
permits a foreign private issuer like us to follow home country practices in lieu of certain requirements of Listing Rule 5600, provided
that such foreign private issuer discloses in its annual report filed with the SEC each requirement of Rule 5600 that it does not follow
and describes the home country practice followed in lieu of such requirement. Our BVI counsel, Ogier, has provided a letter to NASDAQ
certifying that under BVI law, we are not required to follow Nasdaq rules 5635(b) and 5635(d) to seek shareholders' approval of
any issuance of securities in connection with a transaction other than a public offering where such transaction involves the issuance
of securities representing more than 20% of our total outstanding ordinary shares or results in a change of control of a company.
ITEM 16H.
MINE SAFETY DISCLOSURE
Not applicable.
ITEM 16I.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.
Not applicable.
86
PART III
ITEM 17.
FINANCIAL STATEMENTS
We have elected to provide
financial statements pursuant to Item 18.
ITEM 18.
FINANCIAL STATEMENTS
The financial statements are
filed as part of this Annual Report beginning on page F-1.
ITEM 19.
EXHIBITS
Exhibit No.
Description
2.1
Description of Registrant's Securities.
3.1
Memorandum and Articles of Association. (1)
4.2
Form of Warrant from July 26, 2022 Private Placement. (2)
10.1
Employment Agreement between the Registrant and its CEO.
10.2
Employment Agreement between the Registrant and its CFO. (3)
12.1
Certification of the Chief Executive Officer (Principal Executive Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act, as amended.
12.2
Certification of the Chief Financial Officer (Principal Financial Officer) pursuant to Rule 13a-14(a) of the Securities Exchange Act, as amended.
13.1
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
14.1
Code of Conduct and Ethics. (3)
21.1
List of Subsidiaries of the Registrant.
99.1
Charter of the Audit Committee. (3)
99.2
Charter of the Compensation Committee. (3)
99.3
Charter of the Nominating Committee. (3)
99.4
Press Release dated April 20, 2023.
101.INS
Inline XBRL Instance Document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
(1)
Filed as an exhibit to the Registrant's Current Report on Form 6-K, filed on June 14, 2022 and hereby incorporated by reference.
(2)
Filed as an exhibit to the Registrant's Current Report on Form 6-K, filed on July 26, 2022 and hereby incorporated by reference.
(3)
Filed as an exhibit to the Registrant's Annual Report
on Form 20-F, fled on April 29, 2022 and hereby incorporated by reference.
87
SIGNATURES
The Registrant hereby certifies
that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this
annual report on its behalf.
TDH Holdings, Inc.
April 25, 2023
By:
/s/
Dandan Liu
Name:
Dandan Liu
Title:
Chief Executive Officer
(Principal Executive Officer)
TDH Holdings, Inc.
April 25, 2023
By:
/s/
Feng Zhang
Name:
Feng Zhang
Title:
Chief Financial Officer
(Principal Financial and Accounting Officer)
88
TDH HOLDINGS, INC. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm (PCAOB ID
6781
)
F-2
Consolidated Balance Sheets as of December 31, 2022 and 2021
F-4
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2022, 2021 and 2020
F-5
Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Years Ended December 31, 2022, 2021 and 2020
F-6
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020
F-7
Notes to the Consolidated Financial Statements
F-8 – F-34
F-
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and
Shareh
olders
of TDH Holdings, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of TDH Holdings, Inc. and Subsidiaries (collectively, the "Company") as of December 31, 2022 and 2021, the
related consolidated statements of operations and comprehensive income (loss), changes in shareholders' equity (deficit), and cash
flows for each of the two years in the period ended December 31, 2022, and the related notes (collectively referred to as the "financial
statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years
in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.
Going Concern Matter
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company currently
has income but has not completed its efforts to establish a stabilized source of revenue sufficient to cover its operating costs, and
the Company has a negative cash flows from operations and historically relied on cash proceeds from issuance of loans and equity securities.
These factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters
are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
F-
2
Critical
Audit Matters
The critical
audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or
required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Property
and Equipment, Net and Intangible Assets, Net - Impairment of Long-Lived Assets — Refer to Notes 2, and 7 to the financial statements
Critical
Audit Matter Description
The Company
performs an analysis of the carrying value of all long-lived assets, primarily property and equipment and intangible assets, for impairment
whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company's
impairment analysis determines whether projected undiscounted future cash flows from operations are sufficient to recover the carrying
value of these long-lived assets. Impairment may result when the carrying value of the long-lived assets exceeds the estimated undiscounted
future cash flows over the estimated remaining reasonably certain lease term. Events that result in an impairment review typically include
a significant decrease in the operating performance of the long-lived asset. Impairment charges recorded related to assets for the fiscal
year ended December 31, 2022 were $6,833.
We identified
long-lived asset impairment as a critical audit matter because the determination of the estimated future cash flows to assess the recoverability
of long-lived assets requires significant management judgment, specifically forecasting future sales, gross profits and general expenses.
Changes in these estimates could have a significant impact on whether long-lived assets should be further evaluated for impairment and
could have a significant impact on the measurement of the resulting impairment charge. This required a high degree of auditor judgment
and an increased extent of effort when performing audit procedures to evaluate the reasonableness of the Company's judgments used
in these estimates.
How the
Critical Audit Matter Was Addressed in the Audit
Our audit
procedures related to management's judgments regarding the estimated future cash flows, specifically projection of future sales,
gross margin and general expense growth assumptions included the following, among others:
(1)
We evaluated management's ability to accurately estimate future
cash flows by comparing actual results to management's historical forecasts and internal communications regarding the Company's
business plan and strategy.
(2)
We evaluated the reasonableness of management's estimated
future cash flows by comparing the projections to historical operating results, performed independent analysis, and exercised professional
judgment during our evaluation process.
/s/
YCM CPA, Inc.
We have served as the Company's
auditor since 2022.
PCAOB ID 6781
Irvine, California
April 25, 2023
F-
3
TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
December 31,
2022
2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
21,857,125
$
18,025,966
Short-term investments
9,922,366
4,428,446
Accounts receivable, net
29,318
36,835
Advances to suppliers, net
2,789
10,986
Inventories, net
987
51,423
Prepayments and other current assets, net
127,834
1,158,867
Current assets held for sale associated with discontinued operation of Tiandihui
1,841,335
7,355,317
Total current assets
33,781,754
31,067,840
NON-CURRENT ASSETS
Property, plant and equipment, net
698,044
781,670
Intangible assets, net
481,840
535,632
Operating lease right-of-use assets
783,658
4,604,365
Non-current assets held for sale associated with discontinued operation of Tiandihui
768,101
879,253
Total non-current assets
2,731,643
6,800,920
Total assets
$
36,513,397
$
37,868,760
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
491,850
$
506,881
Accounts payable - related parties
1,033
-
Advances from customers
11,024
16,959
Bank overdrafts
74,425
79,851
Short-term loans - related parties
266,451
285,878
Taxes payable
11,923
24,077
Due to related parties
55,747
36,410
Operating lease liabilities, current
212,814
268,403
Other current liabilities
1,212,420
533,668
Current liabilities held for sale associated with discontinued operation of Tiandihui
12,337,657
17,898,674
Total current liabilities
14,675,344
19,650,801
NON-CURRENT LIABILITIES:
Operating lease liabilities, non-current
683,113
4,846,760
Non-current liabilities held for sale associated with discontinued operation of Tiandihui
1,037
1,132
Total liabilities
15,359,494
24,498,693
SHAREHOLDERS' EQUITY :
Common shares ($
0.02
par value;
50,000,000
shares authorized;
10,323,268
and
5,218,681
shares issued and outstanding at December 31, 2022, and 2021, respectively)*
206,465
104,374
Additional paid-in capital
48,089,439
42,151,658
Statutory reserves
160,014
160,014
Accumulated deficit
(
28,165,927
)
(
28,969,627
)
Accumulated other comprehensive income (loss)
428,249
(
460,702
)
Total TDH Holdings, Inc. shareholders' equity
20,718,240
12,985,717
Non-controlling interest
435,663
384,350
Total shareholders' equity
21,153,903
13,370,067
Total liabilities and shareholders' equity
$
36,513,397
$
37,868,760
*
Retrospectively restated to reflect the one-for-twenty
reverse split dated on June 14, 2022
The accompanying notes are an integral part
of these consolidated financial statements
F-
4
TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
For The Years Ended December 31,
2022
2021
2020
Net revenue
$
3,098,733
$
1,081,095
$
622,801
Total revenue
3,098,733
1,081,095
622,801
Cost of revenue
2,046,200
769,967
449,694
Total cost of revenue
2,046,200
769,967
449,694
Gross profit
1,052,533
311,128
173,107
Operating expenses:
Selling expense
91,370
74,278
85,744
General and administrative expense
4,002,346
3,541,872
583,594
Impairment of long-lived assets other than goodwill
6,833
-
-
Impairment of goodwill
-
355,570
-
Total operating expenses
4,100,549
3,971,720
669,338
Loss from operations
(
3,048,016
)
(
3,660,592
)
(
496,231
)
Interest expense
43,081
(
14,518
)
32,448
Government subsidies
-
-
8,651
Other income
64,029
(
28,667
)
(
14,381
)
Other expense
(
26,120
)
(
642,216
)
(
38,901
)
Investment income, net
4,161,093
275,866
2,120,241
Total other income (expenses)
4,242,083
(
409,535
)
2,185,860
Income (loss) before income tax provision
1,194,067
(
4,070,127
)
1,689,629
Income tax provision
-
-
900
Net income (loss)  from continuing operations
1,194,067
(
4,070,127
)
1,690,529
Net loss from discontinued operations of Tiandihui
(
339,054
)
(
2,645,831
)
(
2,565,197
)
Net income (loss)
855,013
(
6,715,958
)
(
874,668
)
Less: Net income (loss) attributable to non-controlling interest
51,313
(
595,650
)
-
Net income (loss) attributable to TDH Holdings, Inc.
$
803,700
$
(
6,120,308
)
$
(
874,668
)
Comprehensive income (loss)
Net income (loss)
$
803,700
$
(
6,120,308
)
$
(
874,668
)
Other comprehensive income (loss)
Foreign currency translation adjustment
888,951
(
247,807
)
(
355,411
)
Total comprehensive income (loss)
1,692,651
(
6,368,115
)
(
1,230,079
)
Less: Comprehensive income (loss) attributable to noncontrolling interest
-
-
-
Comprehensive income ( loss) attributable to TDH Holdings, Inc.
$
1,692,651
$
(
6,368,115
)
$
(
1,230,079
)
Earnings (loss) per common share attributable to TDH Holdings, Inc.
Basic
$
0.10
$
(
1.17
)
$
(
0.38
)
Diluted
$
0.10
$
(
1.17
)
$
(
0.38
)
Weighted average common shares outstanding*
Basic
8,019,208
5,218,681
2,292,500
Diluted
8,019,208
5,218,681
2,292,500
*
Retrospectively restated to reflect the one-for-twenty
reverse split dated on June 14, 2022
The accompanying notes are an integral part
of these consolidated financial statements
F-
5
TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
EQUITY (DEFICIT)
Number of
Shares*
Common
Shares
Additional
Paid-in
Capital
Stock
Subscription
Receivable
Statutory
Reserves
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interest
Total
Stockholders'
Equity (Deficit)
Balance, December 31, 2019
2,292,500
$
45,850
$
21,963,678
$
-
$
160,014
$
(
21,974,651
)
$
142,516
$
(
8
)
$
337,399
Net loss
-
-
-
-
-
(
874,668
)
-
-
(
874,668
)
Foreign currency translation adjustment
-
-
-
-
-
-
(
355,411
)
-
(
355,411
)
Purchase of noncontrolling interest
-
-
(
108
)
-
-
-
-
8
(
100
)
Balance, December 31, 2020
2,292,500
$
45,850
$
21,963,570
$
-
$
160,014
$
(
22,849,319
)
$
(
212,895
)
$
-
$
(
892,780
)
Net Loss
-
-
-
-
-
(
6,120,308
)
-
(
595,650
)
(
6,715,958
)
Issuance of common stock
1,705,000
34,100
20,188,088
-
-
-
-
-
20,222,188
Warrants exercised for cashless
1,221,181
24,424
-
-
-
-
-
-
24,424
Foreign currency translation adjustment
-
-
-
-
-
-
(
247,807
)
-
(
247,807
)
Acquisition of non-controlling interest
-
-
-
-
-
-
-
980,000
980,000
Balance, December 31, 2021
5,218,681
$
104,374
$
42,151,658
$
$
160,014
$
(
28,969,627
)
$
(
460,702
)
$
384,350
$
13,370,067
Net income
-
-
-
-
-
803,700
-
51,313
855,013
Issuance of common stock and warrants in private placements
4,000,000
80,000
5,937,781
-
-
-
-
-
6,017,781
Warrants exercised for cashless
1,104,587
22,091
-
-
-
-
-
-
22,091
Foreign currency translation adjustment
-
-
-
-
-
-
888,951
-
888,951
Balance, December 31, 2022
10,323,268
$
206,465
$
48,089,439
$
-
$
160,014
$
(
28,165,927
)
$
428,249
$
435,663
$
21,153,903
*
Retrospectively restated to reflect the one-for-twenty
reverse split dated on June 14, 2022
The accompanying notes are an integral part
of these consolidated financial statements
F-
6
TDH HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Years Ended December 31,
2022
2021
2020
Cash flows from operating activities
Net income (loss)
$
803,700
$
(
6,120,308
)
$
(
874,668
)
Less: net loss from discontinued operations
(
339,054
)
(
2,645,831
)
(
2,565,197
)
Net income (loss)  from continuing operations
1,142,754
(
3,474,477
)
1,690,529
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expense
17,114
466,720
72,344
Fair value change of short-term investments
(
4,161,093
)
(
495,265
)
(
2,120,241
)
Impairment of goodwill
-
355,570
-
Impairment of long-lived assets other than goodwill
6,833
217,257
-
Inventory write-down
11,532
368,441
234,861
Allowance for doubtful accounts
7,210
2,168
593,142
Deferred income taxes
-
-
(
1,106
)
Loss (gain) on disposal of property, plant and equipment
153,983
(
5,905,889
)
(
77,287
)
Amortization of operating lease right-of-use assets
(
408,198
)
438,063
(
18,118
)
Non-cash lease expense
(
205,295
)
(
4,786,099
)
(
116
)
Gain on forgiveness of short-term loan
$
-
$
-
$
(
6,265
)
Changes in operating assets and liabilities:
-
(
277,310
)
(
32,132
)
Accounts receivable, net
2,733
127,057
(
654,246
)
Inventories, net
38,904
(
368,246
)
(
304,953
)
Operating lease liabilities
(
195,626
)
4,830,456
(
9,382
)
Operating lease liabilities – related parties
-
278,472
(
887
)
Advances to suppliers, net
8,197
(
3,653
)
(
21,701
)
Prepayments and other current assets, net
1,017,261
(
1,029,552
)
(
57,561
)
Accounts payable
(
305,382
)
64,427
68,095
Accounts payable - related parties
(
132,081
)
132,192
-
Interest payable
(
411,112
)
(
12,787
)
(
60,773
)
Interest payable - related parties
-
88,778
(
2,501
)
Notes payable
-
-
969,254
Taxes payable
(
17,103
)
15,331
-
Advances from customers
-
-
1,790
Advances from customer - related party
(
13,799
)
19,125
-
Deferred income tax liability
-
1,132
-
Other current liabilities
1,054,749
793,726
(
1,017,864
)
Net cash  provided by (used in) operating activities from continuing operations
(
1,977,789
)
(
8,154,363
)
(
755,118
)
Net cash provided by (used in) operating activities from discontinued operations
(
94,926
)
4,854,800
(
1,401,656
)
Net cash provided by (used in) operating activities
$
(
2,072,715
)
$
(
3,299,563
)
$
(
2,156,774
)
Cash flows from investing activities
-
-
-
Payments to acquire property, plant and equipment
-
-
(
47,086
)
Cash obtained from business acquisition
-
171,827
-
Payment for business acquisition
-
(
1,020,000
)
-
Purchase of short-term investments
(
42,483,794
)
(
4,372,809
)
(
38,743,908
)
Proceeds from sale of short-term investments
41,150,967
3,578,206
42,146,183
Investment in equity
-
-
(
182,896
)
Net cash used in (provided by) investing activities from continuing operations
(
1,332,827
)
(
1,642,776
)
3,172,293
Net cash provided by investing activities from discontinued operations
-
-
182,896
Net cash (used in) provided by  investing activities
(
1,332,827
)
(
1,642,776
)
3,355,189
Cash flows from financing activities
Proceeds from issuance of common shares
-
20,222,188
-
Purchase of noncontrolling interest
-
(
100
)
(
100
)
Collection of stock subscription receivable
6,017,781
-
-
Proceeds from related parties
22,410
4,085,071
(
471,481
)
Proceeds from short-term loans
-
-
107,829
Repayments of short-term loans
-
1,458,040
(
999,448
)
Proceeds from short-term loans - related parties
-
-
49,350
Repayments of short-term loans - related parties
-
22,302
(
52,086
)
Payment to related party
15,829
(
4,231,327
)
-
Net cash provided by (used in) financing activities from continuing operations
6,055,480
21,556,174
(
1,365,936
)
Net cash (used in) provided by financing activities from discontinued operations
-
(
3,604,117
)
305,097
Net cash provided by (used in) financing activities
$
6,055,480
$
17,952,057
$
(
1,060,839
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
985,263
(
247,807
)
106,910
Net change in cash, cash equivalents and restricted cash
3,635,201
12,761,911
244,486
Cash, cash equivalents and restricted cash, beginning of the year
19,510,975
6,749,064
6,504,578
Cash, cash equivalents and restricted cash, end of the year
$
23,146,176
$
19,510,975
$
6,749,064
Less: cash and restricted cash of discontinued operations at the end of the period
1,289,051
1,485,009
186,964
Cash and restricted cash of continued operations at the end of the period
$
21,857,125
$
18,025,966
$
6,562,100
Supplemental cash flow information
Interest paid
$
-
$
-
$
38,362
Income taxes paid
$
-
$
-
$
-
Non-cash investing and financing activities
Liabilities assumed in connection with purchase of property, plant and equipment
$
-
$
-
$
14,592
Notes payable reclassified to short-term loans
$
$
$
908,850
Short-term loans settled by transferring an equity investment to the creditor
$
-
$
-
$
70,708
Cashless exercise of warrants
$
22,091
$
24,424
$
Right of use assets obtained in exchange for operating lease obligations
$
-
$
5,158,944
$
-
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents
$
21,857,125
$
18,025,966
$
6,562,100
Restricted cash
$
1,289,051
$
1,485,009
$
186,964
Total cash,
    cash equivalents, and restricted cash
$
23,146,176
$
19,510,975
$
6,749,064
The accompanying footnotes are an integral
part of these financial statements
F-
7
TDH HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – ORGANIZATION
TDH Holdings, Inc. ("TDH Holdings")
was incorporated on September 30, 2015 under the laws of the British Virgin Islands. On November 4, 2015, TDH Holdings incorporated a
wholly owned subsidiary, TDH HK Limited ("TDH HK") in Hong Kong for the purpose of being a holding company for the equity
interest in Qingdao Tiandihui Foodstuffs Co., Ltd. ("Tiandihui"). On September 9, 2016, TDH Holdings incorporated TDH Petfood
LLC, a Nevada limited liability company, in which TDH Holdings holds
99
% equity interest. In December, 2020, TDH Holdings acquired the
remaining
1
% equity interest of TDH Petfood LLC with a consideration of $
100
. TDH Petfood LLC does not own any material assets or liabilities.
TDH Petfood LLC had no active business operations since its incorporation, and it has been deregistered and dissolved in 2021. Other
than cash and equity interest in TDH HK and TDH Petfood LLC, TDH Holdings has not conducted any active business operations or own any
material assets or liabilities prior to March 1, 2020 and started to invest in marketable securities since March 2020. TDH HK does not
conduct any operations or own any material assets or liabilities except for cash and the
100
% of the equity interest of Tiandihui which
it acquired on February 21, 2016.
Tiandihui was founded in Qingdao City, Shandong
Province, People's Republic of China ("PRC") on April 22, 2002 as a limited liability company. As of December 31, 2022,
Tiandihui had one wholly owned subsidiary: Beijing Chongai Jiujiu Cultural Communication Co., Ltd. ("Chongai Jiujiu"), which
was incorporated on March 3, 2011, in Beijing City, PRC. Tiandihui and its wholly owned subsidiary are engaged in the business of development,
manufacturing and sales of high quality petfood products under our own formula patents. Our products are produced at Tiandihui facility
and sold to the pet owners in PRC and to the retailers and wholesalers throughout worldwide. On March 16, 2022, the People's Court
of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application
of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, T
ian
dihui
is now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings
have not been completed and are expected to be completed by the end of 2023. As a result, the operation results of Tiandihui was presented
as discontinued operations as of December 31, 2022 (see Note 4).
On February 21, 2016, TDH HK entered into an
equity transfer agreement with Rongfeng Cui and his wife Yanjuan Wang, the shareholders of Tiandihui at the time, to acquire
100
% of
the equity interests in Tiandihui ("reorganization").
On July 19, 2016, Tiandihui acquired
100
% shares
of Chongai Jiujiu from Rongfeng Cui and Yanjuan Wang with a consideration of $
87,849
(RMB
610,000
). The acquisition of Chongai Jiujiu
is a transaction between entities under common control.
Immediately before and after the reorganization,
the same shareholders of Tiandihui controlled Tiandihui and TDH Holdings. Therefore, for accounting purposes, the reorganization is accounted
for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared
as if the current corporate structure had been in existence throughout the periods presented.
In November 2018, the Company completed business
acquisitions of TDH Group BVBA, a Belgium entity and TDH JAPAN, a Japanese entity. TDH Group BVBA and TDH JAPAN had limited operation
activities for the year ended December 31, 2020. TDH JAPAN was dissolved in February 2021.
F-
8
On January 22, 2020, Qingdao Tiandihui Pet Foodstuffs
Co., Ltd. ("Tiandihui Pet Foodstuffs") was incorporated in Qingdao City, PRC.
On January 21, 2020, Qingdao Tiandihui Foodstuffs
Sales Co., Ltd. ("Tiandihui Foodstuffs Sales") was incorporated in Qingdao City, PRC. Tiandihui Foodstuffs Sales is a wholly
owned subsidiary of Tiandihui Pet Foodstuffs.
On February 27, 2020, TDH Foods Limited was incorporated
in Hong Kong, with the purpose of being a holding company for equity interests in Tiandihui Pet Foodstuffs. TDH Foods Limited does not
conduct any operations or own any material assets or liabilities.
On August 24, 2020, TDH Holdings, Inc. acquired
100
% equity interests of TDH Foods Limited. The acquisition of TDH Foods Limited and its subsidiaries is a transaction between entities
under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate
structure had been in existence throughout the fiscal year presented.
On June 4, 2021, TDH Income Corporation ("TDH
Income") was incorporated in Nevada. TDH Holdings, Inc. owns a
99.99
% interest in TDH Income, and in December 2021, TDH Holdings,
Inc. acquired the remaining
0.01
% interest in TDH Income. As a result, TDH Income became a wholly-owned subsidiary of TDH Holdings, Inc.
On June 9, 2021, Ruby21Noland LLC ("Ruby21Noland")
was incorporated in Missouri. Ruby21Noland is a wholly owned subsidiary of TDH Income.
On October 31, 2021, TDH Income acquired
51
%
equity interests of Far Ling's Inc. and
100
% equity interests of Bo Ling's Chinese Restaurant, Inc. (see Note 3)
On January 22, 2022, Beijing Wenxin Co., Ltd.
("Beijing Wenxin") was incorporated in Beijing City, PRC.
On March 27, 2023, Qingdao Chihong Information
Consulting Co., Ltd. ("Qingdao Chihong") was incorporated in Qingdao City, PRC.
TDH Holdings and its consolidated subsidiaries
are collectively referred to herein as the "Company", "we" and "us", unless specific reference is
made to an entity.
In
connection with the Company's stock reverse split on June 14, 2022, the number of common stock associated with the warrants exercised
prior to June 14, 2022 has been retrospectively restated at the ratio of one-for-twenty and reflected in the consolidated financial statements.
Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of Presentation and Principles of
Consolidation
The accompanying audited financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
This basis of accounting differs in certain material
respects from that used for the preparation of the books of account of the Company, which are prepared in accordance with the accounting
principles and the relevant financial regulations applicable to enterprises with limited liabilities established in the PRC ("PRC
GAAP"), the accounting standards used in the places of their domicile. The accompanying consolidated financial statements reflect
necessary adjustments not recorded in the books of account of the Company to present them in conformity with U.S. GAAP.
The consolidated financial statements include
the accounts of the Company, its wholly-owned and majority-owned subsidiaries.
All significant intercompany accounts and transactions
have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of during the respective periods are included
in the consolidated statements of operations and comprehensive loss from the effective date of acquisition or up to the effective date
of disposal, as appropriate. The portion of the income or loss applicable to noncontrolling interest in subsidiaries is reflected in
the consolidated statements of operations and comprehensive loss.
F-
9
Discontinued operations
On March 16, 2022, the People's Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of
bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, these legal
claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings
have not been completed and are expected to be completed by the end of 2023. As a result, the operation results of Tiandihui was presented
as discontinued operations as of December 31, 2022
.
A component of a reporting entity or a group
of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management
having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations
if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results.
Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished,
operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed
of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity's financial results and operations.
In the consolidated statements of operations and comprehensive loss, result from discontinued operations is reported separately from
the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial
effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated
except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations (see Note 4)
Reclassifications
In connection with the discontinued operations
of a business, certain prior-year amounts have been reclassified for consistency with the current-year presentation. These reclassifications
had no effect on the reported results of operations. The assets and liabilities related to the discontinued operations are classified
as assets/liabilities held for sale as of December 31, 2022 and 2021, while results of operations related to the discontinued operations,
including comparatives, were reported as losses from discontinued operations. Certain prior-year balance sheet accounts have been reclassified
to conform to the current-year presentation.
Going Concern
Our consolidated financial statements have been
prepared assuming we will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in
the normal course of business. For the year ended December 31, 2022, our revenue from the restaurant business segment increased by approximately
$
2.5
million as compared to 2021 and we reported a net income of approximately $
0.86
million and cash flows from operating activities
of approximately $
0.85
million in 2022. However, due to the sharp rise in market prices of raw materials, the lack of operational efficiency
of our production facilities and our inability to make bank loan repayment upon maturity, we suspended our petfood production and normal
business operations and we were involved in certain legal proceedings beginning in November 2019. Although we resumed our operations in
May 2020 factors including the Covid pandemic, the increase in cost of raw materials required for petfood production; accepting less orders
in an attempt to avoid unprofitable orders and customers; and decreased demand for sales of petfood, led to a decrease in our petfood
revenue from $
0.47
million in 2021 and to only $
0.02
million in 2022. Additionally, our remaining petfood production facility was frozen
by the court and became subject to a bankruptcy proceeding. We decided to discontinue our petfood manufacturing business segment in the
first quarter 2023 due to the above operational challenges. As a result, it is uncertain our future revenue and cash flows will be sufficient
to support our growth. In addition, although we received approximately $
6
million net proceeds from the issuance of common shares to certain
investors during fiscal year 2022, there can be no assurances that future revenue or capital infusion will be sufficient to enable us
to develop our business to a level where it will be profitable or to generate positive cash flows. These factors raise substantial doubt
about the Company's ability to continue as a going concern for the next twelve months from the date that our consolidated financial
statements are issued.
Management's plan to alleviate the substantial
doubt about the Company's ability to continue as a going concern include attempting to improve its business profitability, its
ability to generate sufficient cash flow from its operations to meet its operating needs on a timely basis, obtain additional working
capital funds through debt and equity financings to eliminate inefficiencies in order to meet its anticipated cash requirements. However,
there can be no assurance that these plans and arrangements will be sufficient to fund the Company's ongoing capital expenditures,
working capital, and other requirements.
F-
10
The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course
of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.
Foreign Currency Translation
The accompanying consolidated financial statements
are presented in United States dollar ("$"), which is the reporting currency of the Company. The functional currency of TDH
Holdings, TDH HK, TDH Petfood LLC TDH Income Corporation, Ruby21Noland LLC, Far Ling's Inc, Bo Ling's Chinese Restaurant,
Inc and TDH Foods Limited is United States dollar. The functional currency of Beijing Wenxin, Qingdao Chihong, Tiandihui, Tiandihui Pet
Foodstuffs, Tiandihui Foodstuffs Sales and Chongai Jiujiu is Renminbi ("RMB"). The functional currency of TDH Group BVBA
is Euro ("€"). The functional currency of TDH JAPAN is Yen ("¥"). For the subsidiaries whose functional
currencies are RMB, Euro and Yen, results of operations and cash flows are translated at average exchange rates during the period, assets
and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange
rates. The resulting translation adjustments are included in determining other comprehensive income or loss. Transaction gains and losses
are reflected in the consolidated statements of operations.
The exchange rates used to translate amounts
in RMB into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=RMB):
Period Covered
Balance
Sheet Date
Rates
Average
Rates
Year ended December 31, 2022
6.9646
6.7261
Year ended December 31, 2021
6.3757
6.4515
The exchange rates used to translate amounts
in Euro into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=€):
Period Covered
Balance
Sheet Date
Rate
Average
Rate
Year ended December 31, 2022
0.9383
0.9485
Year ended December 31, 2021
0.8831
0.8448
The exchange rates used to translate amounts
in Yen into U.S. Dollars for the purpose of preparing the consolidated financial statements were as follows (USD$1=¥):
Period Covered
Balance
Sheet Date
Rate
Average
Rate
Year ended December 31, 2021
115.0536
109.7430
Use of Estimates
The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The Company bases its estimates and judgments on historical experience and on various other assumptions and information
that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived
with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information
is obtained and as our operating environment changes. Significant estimates and assumptions by management include, among others, useful
lives and impairment of long-lived assets, allowance for credit losses, write-down in value of inventories and income taxes including
the valuation allowance for deferred tax assets. Estimates and assumptions are periodically reviewed and the effects of revisions are
reflected in the financial statements in the period they are determined to be necessary.
F-
11
COVID-19 Pandemic
The COVID-19 pandemic has created significant
public health concerns as well as economic disruption, uncertainty, and volatility which may negatively affect our business operations.
As a result, as the pandemic persists and/or if it worsens, our accounting estimates and assumptions could be impacted in subsequent
periods, and it is reasonably possible such changes could be significant (although the potential effects cannot be estimated at this
time).
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand,
cash in time deposits and highly liquid investments purchased with original maturities of three months or less.
Restricted Cash
Restricted cash mainly represents bank deposits judicially frozen by
the court as a result of legal proceedings as of December 31, 2022 and 2021. Restricted cash amounted to $
1,289,051
and $
1,485,009
as
of December 31, 2022 and 2021, respectively and was included in "current assets held for sales associated with discontinued operation
of Tiandihui" (see Note 4).
Short-term Investments
Starting March 2020 and throughout the years ended
December 31, 2020, 2021 and 2022, TDH Holdings invested in equity securities of certain publicly listed companies through various open
market transactions. The investments in marketable securities are managed and operated by an asset management company. Pursuant to the
asset management agreement, for the period from March 1, 2020 to December 31, 2022, the asset management company is entitled to
25
% of
total realized gain if certain condition is met. In addition, if the total accumulated realized gain as of December 31, 2022, 2021 and
2020 is in excess of
20
% ("exceeding portion"), the asset management company is entitled to additional monetary reward in
the amount of
70
% of the exceeding portion of the total realized gain.
TDH Holdings' investments in marketable
securities are accounted for pursuant to ASC 321 and reported at their readily determinable fair value as quoted by market exchanges in
the consolidated balance sheets with change in fair value recognized in earnings. Changes in fair value, including realized gain of approximately
$
4.19
million and unrealized loss of approximately $
0.03
million for the year ended December 31, 2022. Changes in fair value, including
realized gain of approximately $
0.07
million and unrealized gain of approximately $
0.5
million for the year ended December 31, 2021, which
were included in "investment income" in the accompanying consolidated statements of operations and comprehensive loss.
Business Combination
In October 2021, the Company acquired
51
% equity
interests of Far Ling's Inc. and
100
% equity interests of Bo Ling's Chinese Restaurant, Inc. (see Note 3). Business combination
is accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired
are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair
value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included
in the statement of operations from the date of acquisition.
Non-controlling interest
As of December 31, 2022
and
2021, non-controlling interest represents
49
% of the equity interest in Far Ling's Inc. owned by minority shareholder, which
is not under the Company's control.
Current Expected Credit Losses
On January 1, 2020, the Company adopted FASB
Accounting Standards Update (ASU) 2016-13 "
Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial
Instruments
," (ASC Topic 326) and its amendments using the modified retrospective approach. Results for reporting periods beginning
after January 1, 2020 are presented under ASC Topic 326, while prior amounts are not adjusted. The Company's accounts receivables,
advances to suppliers, prepayments and other current assets are within the scope of ASC Topic 326. This ASU replaces the incurred loss
impairment model with an expected credit loss impairment model for financial instruments. The amendments require entities to consider
forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current
or not yet due, which were not considered under the previous accounting guidance. The adoption of this standard did not have a material
impact to the Company's consolidated financial statements.
Our expected loss allowance methodology is developed
using an aging method and analyses of historical credit losses experience, current economic conditions, future market forecasts and any
recoveries in assessing the lifetime expected credit losses. Additionally, external data and macroeconomic factors are also considered.
F-
12
Inventories
Inventories, consisting of raw materials, work
in progress, and finished goods, are stated at the lower of cost or net realizable value, with cost computed on a weighted-average basis.
The valuation of inventory requires us to estimate excess and slow-moving inventory. We evaluate the recoverability of our inventory
based on assumption about expected demand, market conditions, forecasts prepared by its customers, sales contracts and orders in hand.
Property, Plant and Equipment
Property, plant and equipment, are stated at
cost less depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing
use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical
properties are capitalized.
Depreciation of property, plant and equipment
is calculated based on cost, less their estimated residual value, if any, using the straight-line method over their estimated useful
lives. Estimated useful lives are as follows:
Machinery equipment
5
-
20
years
Computer software
10
years
Electronic equipment
5
-
10
years
Office equipment
5
-
10
years
Motor vehicles
5
-
10
years
Leasehold improvement
Shorter of the lease term or estimated useful life
Buildings
20
-
50
years
Land Use Rights
According to the law of PRC, the government owns
all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by
the Chinese government for a specified period of time. Land use rights are being amortized using the straight-line method over the periods
the rights are granted.
Goodwill
Goodwill represents the excess of the consideration
paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill
is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred.
Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair
value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are
not reversed.
Impairment of Long-Lived Assets and Goodwill
The Company reviews long-lived assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least
annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying
amount of the asset. The amount of impairment is measured as the difference between the asset's estimated fair value and its book
value. The Company recorded impairment loss on long-lived assets other than goodwill of $
6,833
, $
217,257
and $
0
for the years ended December
31, 2022, 2021 and 2020, respectively.
The Company's goodwill is tested for impairment
on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable.
In testing for goodwill impairment, the Company compares the fair value of its reporting unit to its carrying value including the goodwill
of that unit. If the carrying value, including goodwill, exceeds the reporting unit's fair value, the Company will recognize an
impairment loss for the amount by which the carrying amount exceeds the reporting unit's fair value. The loss recognized cannot
exceed the total amount of goodwill allocated to that reporting unit. Given the Company's net loss position, the Company recorded
impairment of goodwill of $
0
, $
335,570
and $
0
for the years ended December 31, 2022, 2021 and 2020, respectively.
F-
13
In accordance with ASC 323,
Investments-Equity
Method and Joint Ventures
, the Company applies the equity method of accounting to equity investments, over which it has significant
influence but does not own a majority equity interests or otherwise control. Significant influence is generally considered to exist when
the Company has an ownership interest in the voting stock of the investee between
20
% and
50
%. Under the equity method, the Company initially
records its investment at cost and subsequently adjusts the carrying amount of the investment to recognize the Company's proportionate
share of each equity investee's net income or loss into earnings after the date of investment.
The Company continually reviews its investment
under equity method to determine whether a decline in fair value to below the carrying value is other-than-temporary. The primary factors
in its determination are the duration and severity of the decline in fair value, the financial condition, operating performance and the
prospects of the equity investee, and other company specific information such as recent financing rounds. If the decline in fair value
is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value.
For equity securities without readily determinable
fair value and do not qualify for the existing practical expedient in ASC 820, Fair Value Measurements and Disclosures to estimate fair
value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative
to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions
for identical or similar investments of the same issuer, if any. The Company makes assessment of whether an investment is impaired at
each reporting date and recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated
statements of operations and comprehensive loss if there is any. The Company makes a qualitative assessment of whether the investments
are impaired at each reporting date.
Fair Value of Financial Instruments
Accounting guidance defines fair value as the
price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded
at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions
that market participants would use when pricing the asset or liability.
The Company measures certain financial assets,
including the investment under the measurement alternative method and equity method on other-than-temporary basis, intangible assets
and fixed assets at fair value when an impairment charge is recognized.
Accounting guidance establishes a fair value
hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring
fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that
is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair
value:
Level 1 — Observable inputs that reflect
quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 — Include other inputs that are
directly or indirectly observable in the marketplace.
Level 3 — Unobservable inputs which are
supported by little or no market activity.
Accounting guidance also describes three main
approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The
market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets
or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement
is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that
would currently be required to replace an asset.
F-
14
For certain of the Company's financial
instruments, including cash and cash equivalents, restricted cash, accounts receivable, advances to suppliers, inventories, prepayments
and other current assets, accounts payable, advances from customers, taxes payable, bank overdrafts, short-term loans and other current
liabilities, the carrying amounts approximate their fair values due to the short maturities. The fair value of the Company's investments
in the equity securities of publicly listed companies are measured using quoted market prices.
The following table presents information about
the Company's assets that are measured at fair value on a recurring basis as of December 31, 2022 and 2021 and indicates the fair
value hierarchy of the valuation.
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level
                                            1)
Significant
Other
Observation
Inputs
(Level
                                            2)
Significant
Unobservable
Inputs
(Level
                                            3)
Total
Balance
Publicly listed equity securities
As of December 31, 2022
$
9,922,366
-
-
9,922,366
As of December 31, 2021
$
4,428,446
-
-
4,428,446
Lease Commitments
On January 1, 2019, the Company adopted ASU 2016-02,
Leases
(together with all amendments subsequently issued thereto, "ASC Topic 842"), using the modified retrospective
method. The Company elected the transition method which allows entities to initially apply the requirements by recognizing a cumulative-effect
adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, previously
reported financial information has not been restated to reflect the application of the new standard to the comparative periods presented.
The Company elected the package of practical expedients permitted under the transition guidance within ASC Topic 842, which among others,
allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification,
and the accounting treatment of initial direct costs. The Company elected not to record assets and liabilities on its consolidated balance
sheet for new or existing lease arrangements with terms of 12 months or less. The Company recognizes lease expenses for such leases on
a straight-line basis over the lease term. In addition, the Company elected the land easement transition practical expedient and did
not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for
as a lease.
The initial lease liability is equal to the future
fixed minimum lease payments discounted using the Company's incremental borrowing rate, on a secured basis. The lease term includes
option renewal periods and early termination payments when it is reasonably certain that the Company will exercise those rights. The
initial measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs and prepayments,
less any lease incentives.
Payments made under operating leases are charged
to the consolidated statements of operations and comprehensive loss on a straight-line basis over the lease period. The Company does
not have finance lease arrangements as of December 31, 2022 and 2021. See Note 15 for further discussion.
F-
15
E
a
rnings
(Loss) per Share
Basic earnings (loss) per common share is computed
by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding during
the period. Diluted earnings (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the sum
of the weighted average number of common shares outstanding and dilutive potential common shares during the period. Potentially dilutive
common shares consist of common shares warrants using the treasury stock method. Common equivalent shares are not included in the denominator
of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. There were no diluted shares for
the years ended December 31, 2022, 2021 and 2020.
Revenue Recognition
Revenue is measured according to ASC Topic 606,
Revenue from Contracts with Customers
. The Company currently generated revenue from
two
sources: sales of petfood products and
revenue from restaurant business operation.
Revenue for sale of products is derived from contracts
with customers, which primarily include the sale of petfood products. The Company recognizes revenue upon transfer of control of promised
goods in a contract with a customer in an amount that reflects the consideration the Company expects to receive in exchange for those
products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery
and risk of loss has transferred to the customer.
In connection with the business acquisition as
disclosed in Note 3, the Company started to generate revenue from restaurant business operation since late 2021. Revenue from providing
dining services and sales of meals is recognized at point when services are rendered. The Company recognizes revenues in the form of
restaurant sales at the time of the sale when payment is made by the customer, as the Company has completed its performance obligation,
namely the provision of food and beverage, and the accompanying customer service, during the customer's visit to the restaurant.
Revenue is recognized net of any taxes collected
from customers that are subsequently remitted to governmental authorities, including value-added tax ("VAT"), business tax,
applicable local government levies. At the time revenue is recognized, allowances are recorded, with the related reduction to revenue,
for estimated sales returns based upon historical experience and related terms of customer arrangements.
The allowance for sales returns recorded by the
Company was $
0
, $
0
million and $
0
million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company does not provide
rebate, pricing protection or any other concessions to its customers.
The Company elected to account for shipping and
handling fees that occur after the customer has obtained control of goods, for instance, free onboard shipping point arrangements, as
a fulfillment cost and accrues for such costs.
Management has concluded that the disaggregation
level is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is
measured on the same basis as under the revenue standard. See Note 14 for information regarding revenue disaggregation by product lines,
marketing channels and countries.
Contract liabilities are recorded when consideration is received from
a customer prior to transferring the control of goods to the customer or other conditions under the terms of a sales contract. As of December
31, 2022 and 2021, the Company recorded contract liabilities of $
11,024
and $
16,959
, respectively, which were presented as advances from
customers on the accompanying consolidated balance sheets. During the years ended December 31, 2022, 2021 and 2020, the Company recognized
$
6,970
, $
163,074
and $
56,983
of contract liabilities as revenue, respectively.
Government Grants
Government grants include cash subsidies as well
as other subsidies received from the PRC government by the subsidiaries of the Company. Such subsidies are generally provided as incentives
from the local government to encourage the expansion of local business. The government grant is recognized in the consolidated statements
of operations and comprehensive loss when cash is received and the relevant performance criteria specified in the grant are met.
F-
16
Selling Expenses
Selling expenses consist primarily of advertising,
salaries and shipping and handling costs incurred during the selling activities. Advertising and transportation expenses are charged
to expense as incurred.
Shipping and handling expenses amounted to $
1,828
,
$
4,864
and $
620
for the years ended December 31, 2022, 2021 and 2020, respectively.
Advertising costs amounted to $
93,197
, $
22,019
and $
144
for the years ended December 31, 2022, 2021 and 2020, respectively.
Income Taxes
The Company accounts for income taxes under the
provision of FASB ASC 740-10, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized
for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting
amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected
to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected
to be realized.
Comprehensive Income (Loss)
ASC 220 "
Comprehensive Income
"
established standards for reporting and display of comprehensive income (loss), its components and accumulated balances. Components of
comprehensive income ( loss) include net income (loss) and foreign currency translation adjustment. As of December 31, 2022, 2021 and
2020, the only component of accumulated other comprehensive income (loss) was foreign currency translation adjustment.
Loss Contingencies
The Company records accruals for certain of its
outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably
estimated. When a loss contingency is not both probable and estimable, the Company does not record an accrued liability but discloses
the nature and the amount of possible loss, if material, in the notes to the consolidated financial statements.
The Company reviews the developments in contingencies
that could affect the amount of the provisions that has been previously recorded, and the matters and related possible losses disclosed.
The Company makes adjustments to provisions and changes to its disclosures accordingly to reflect the impact of negotiations, settlements,
rulings, advice of legal counsel, and updated information. The assessment of whether a loss is probable or reasonably possible, and whether
the loss or a range of loss is estimable, often involves complex judgments about future events. Management is often unable to estimate
the loss or a range of loss, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages,
or (iii) there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions.
In such cases, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, including eventual loss,
fine, penalty or business impact, if any.
Concentration of Credit Risk
Financial instruments that potentially subject
the Company to concentrations of credit risk are cash and cash equivalents, restricted cash, and accounts receivable arising from its
normal business activities. The Company places its cash and cash equivalents in financial institutions in the U.S., the PRC, Hong Kong
and New Zealand, which the management believes to be credit-worthy. The Company establishes an allowance for credit losses primarily
based upon the age of receivables and factors surrounding the credit risk of specific customers.
Related Parties Transactions
A related party is generally defined as (i) any
person that holds 10% or more of the Company's securities and their 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. Related parties may be individuals or corporate entities.
F-
17
Transactions involving related parties cannot
be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not
exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated
on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. It is
not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature.
Segment Reporting
The Company uses the "management approach"
in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's
chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's
reportable segments. The Company's chief operating decision maker has been identified as the chief executive officer of the Company
who reviews financial information based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel.
This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined
that it has only
two
operating segments as of December 31, 2022 (see Note 14).
Recently Issued Accounting Pronouncements
Not Yet Adopted
In March 2020, the FASB issued ASU 2020-04,
Reference
Rate Reform, (Topic 848)
. The amendments in Topic 848 provide optional expedients and exceptions for applying GAAP to contracts,
hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied
by all entities as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect
to apply the amendments prospectively through December 31, 2022. The Company did not utilize the optional expedients and exceptions provided
by this standard during the year ended December 31, 2021. The Company is evaluating the impact of this standard on its consolidated financial
statements and disclosures.
Note 3- BUSINESS COMBINATION
On October 31, 2021, the Company completed the
acquisition of
51
% equity interests of Far Ling's Inc. and
100
% equity interests of Bo Ling's Chinese Restaurant, Inc.
Pursuant to the Stock Purchase Agreements executed
on October 31, 2021, the Company acquired
51
% equity interest of Far Ling's Inc. for a total cash consideration of $
850,000
and
acquired
100
% equity interest in Bo Ling's Chinese Restaurant, Inc. for a total cash consideration of $
170,000
. The Company believes
that the acquisition brings new revenue source for the Company going forward.
The transaction was accounted for as a business
combination using the purchase method of accounting. The purchase price allocation of the transaction was determined by the Company with
the assistance of an independent appraisal firm based on the estimated fair value of the assets acquired and liabilities assumed
as of the acquisition date.
The following table presents the purchase price
allocation to assets acquired and liabilities assumed as of the acquisition date. The non-controlling interest represents the fair value
of the
49
% equity interest not held by the Company:
As of
October 31,
2021
Cash acquired
$
171,827
Accounts receivable, net
68,551
Inventories, net
30,306
Prepaid expenses
198,939
Other current assets
1,199
Property and equipment, net
1,179,190
Intangible assets
532,895
Goodwill
355,570
Customer deposit
(
3,209
)
Accrued rent
(
357,619
)
Accrued salary and other current liabilities
(
177,650
)
Noncontrolling interest
(
980,000
)
Total consideration
$
1,020,000
F-
18
The intangible assets mainly include Bo Ling's
Chinese Restaurant, Inc.'s brand name of $
532,895
to attract customers and bring in increased revenue to benefit the Company in
the future. The goodwill is mainly attributable to the excess of the consideration paid over the fair value of the net assets acquired
that cannot be recognized separately as identifiable assets under U.S. GAAP. Goodwill is not amortized and is not deductible for
tax purposes.
The fair value of the non-controlling interest
in Far Ling's Inc. was determined based on the purchase price allocation report prepared by an independent third-party appraiser
by using discount cash flow model.
There was no impairment of Bo Ling's intangible
assets as of December 31, 2022, because there was no impairment indicator as the Company's restaurant business was profitable during
the year ended December 31, 2022. There was no impairment of Bo Ling's intangible assets as of December 31, 2022, because there
was no impairment indicator as the Company's restaurant business was profitable during the year ended December 31, 2022.
The amounts of revenue and net income (loss)
of Far Ling's Inc. and Bo Ling's Chinese Restaurant, Inc. as included in the Company's consolidated statement of operations
for the years ended December 31, 2022 and 2021 are as follows:
For the year
ended
December 31,
2022
From
acquisition
date to
December 31,
2021
Net Revenue
$
3,074,007
$
606,463
Net income (loss)
$
104,720
$
(
1,215,613
)
Note 4 – DISCONTINUED OPERATION
The Company's subsidiary, Qingdao Tiandihui Foodstuffs
Co., Ltd. ("Tiandihui"), is mainly engaged in the development, manufacture and sale of petfood in China and other regions.
On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the
acceptance of creditors' application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy
proceedings. As a result, the operation results of Tiandihui was reported as discontinued operations as of December 31, 2022.
The discontinued operation represents a strategic
shift that has a major effect on the Company's operations and financial results, which trigger discontinued operations accounting
in accordance with ASC 205-20-45. The assets and liabilities related to the discontinued operations are classified as assets/liabilities
held for sale as of December 31, 2022 and 2021, while results of operations related to the discontinued operations for the years ended
December 31, 2022, 2021 and 2020, were reported as income (loss) from discontinued operations.
The results of discontinued operations for years
ended December 31, 2022, 2021 and 2020 are as follows:
For the Years Ended December 31,
2022
2021
2020
Revenue
$
159
$
10,794
$
192,424
Cost of revenues
(
5,260
)
(
342,496
)
(
407,366
)
Gross profit
(
5,101
)
(331,02
)
(
214,942
)
Operating expenses
(
140,073
)
(
621,760
)
(
1,491,473
)
(Loss) income from discontinued operations
(
145,174
)
(
953,462
)
(
1,706,415
)
Other income (expense), net
(
193,880
)
(
1,692,369
)
(
858,782
)
(Loss) income before tax
(
339,054
)
(
2,645,831
)
(
2,565,197
)
Net (loss) income from discontinued operations
$
(
339,054
)
$
(
2,645,831
)
$
(
2,565,197
)
F-
19
Assets and liabilities of the discontinued operations
as of December 31, 2022 and 2021 consisted of the following:
December 31,
December 31,
2022
2021
CURRENT ASSETS:
Restriced cash
$
1,289,051
$
14,85,009
Accounts receivable, net
2,513
235
Prepayments and other current assets, net
549,771
5,870,073
Total current assets held for sales
1,841,335
7,355,317
NON-CURRENT ASSETS
Property, plant and equipment, net
665,492
761,761
Land use rights, net
102,609
117,492
Total non-current assets held for sales
768,101
879,253
Total assets held for sales
$
2,609,436
$
8,234,570
CURRENT LIABILITIES:
Accounts payable
$
2,714,811
$
2,967,905
Advances from customers
85,136
93,000
Short term loans
4,980,335
5,440,350
Short-term loans - related parties
246,454
269,235
Taxes payable
13,897
58,541
Due to related parties
712,516
778,377
Other current liabilities
3,584,508
8,291,266
Total current liabilities held for sales
12,337,657
17,898,674
Non-current Liabilities held for sale
1,037
1,132
Total liabilities held for sales
$
12,338,694
$
17,899,806
Before the discontinued operations of Tiandihui,
the Company had short-term bank loans of $
4,986,206
, $
5,440,350
, and $
8,391,323
as of December 31, 2022, 2021 and 2020, respectively.
For the years ended December 31, 2020 and 2019,
the Company entered into various loans agreements with various Chinese banks, other entities and individuals for an aggregated amount
of $
107,829
and $
1,046,275
, respectively, to facilitate its business operations. Interest rate for the loans outstanding during the years
ended December 31, 2020 and 2019 ranged from
4.15
% to
24
% and from
2.46
% to
25
% per annum, respectively. Except using the proceeds received
from the auction of the land and factory buildings on the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd. to make the repayment of
approximately $
3.2
million to CCB as disclosed below, the Company did not enter into new loan agreements with financial institutions during
the year ended December 31, 2022. As a result, the total outstanding short-term loan included in the current liabilities from discontinued
operations at December 31, 2022 was approximately $
4.99
million.
During the years ended December 31, 2019, the Company issued notes payable to Shanghai Pudong Development Bank ("SPDB") to
pay the holders according to the terms of the agreement. At the maturity, the Company did not make repayment to SPDB. In November 2019,
SPDB filed litigation against the Company. In October 2020, the court has ruled that, among others, the Company should repay SPDB principal
and interests in full within 10 days from the date of ruling. As of the date of this filing, the Company has not fulfilled the court order.
During the year ended December 31, 2020, SPDB used the Company's restricted cash deposited in this bank to settle against partial
of outstanding balance of the notes. The Company did not make additional repayment to SPDB during the year ended December 31, 2022 and
2021. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced
the acceptance of creditors' application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd. Accordingly, the outstanding
notes payable to SPDB is now subject to the bankruptcy proceedings (see Note 15). Therefore, the unpaid notes payable to SPDB were included
in current liabilities from discontinued operations on the consolidated balance sheets as of December 31, 2022 and 2021.
As of December 31, 2022 and 2021, corporate or personal guarantees
provided for those loans were as follows:
$
572,976
Pledged by cash deposit of RMB
300,000
(approximately $
43,000
) from Gaochuang, real property of Rongfeng Cui and Yanjuan Wang, former CEO of the Company and his wife, and land use right and real property of Qingdao Saike Environmental Technology Co., Ltd; Guaranteed by Rongfeng Cui, Yanjuan Wang and Gaochuang.
$
1,541,857
Pledged by real property of the Company and real property of Rongfeng Cui; Guaranteed by Rongfeng Cui and Yanjuan Wang
$
3,136,910
Guaranteed by Rongfeng Cui and Yanjuan Wang
$
188,607
Pledged by restricted cash of RMB
300,000
(approximately $
47,054
), four patents and certain equipment of the Company; Guaranteed by Rongfeng Cui, Yanjuan Wang and Qingdao Saike Environmental Technology Co., Ltd.
F-
20
On December 20, 2018, the Company entered into
a loan agreement with China Construction Bank ("CCB") to borrow RMB
21,450,000
(approximately $
3,119,000
). The loan bears an
annual interest rate of
5.39
% and is due in 84 months. Pursuant to the loan agreement, the proceeds of the loan can only be used in the
purchase of manufacturing facility and the associated land use right located at Lingang Economic Development Zone, Huangdao District,
Qingdao, Shandong Province, PRC.
The loan agreement between the Company and CCB
contains a number of covenants and restrictions. Such covenants and restrictions include, but are not limited to, financial ratios. Unless
a breach is remediated or a waiver is obtained, a breach of such covenants and restrictions generally permits lender to demand accelerated
repayment of principal and interest.
As of December 31, 2018, the Company did not meet
the financial ratios set forth in the debt covenants. Starting December 2019, the Company has been in default on the loan. In January
2020, CCB filed litigation against the Company. In April 2020, the court has ruled that, among others, the Company should repay CCB the
principal and interests in full within 10 days from the date of ruling. On March 13, 2021, the land and factory buildings on the land
owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were auctioned by the court for $
5,098,461
(RMB
33.14
million), of which, $
3,192,827
(RMB
21.14
million) has been used to repay loan principal and accrued interest to CCB. The repayment has been completed by April 2021.
The Company's repayments of substantially
all its outstanding short-term loans were delinquent on or around November 2019, and the Company is involved in a number of lawsuits filed
by various lenders. See further discussions in Note 15 and Note 18.
On March 16, 2022, the People's Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of
bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, the short-term
bank loans borrowed by Tiandihui are now under bankruptcy proceedings, and have been reclassified and included in "liabilities held
for sales" as reflected in the consolidated balance sheets.
On December 20, 2018, the Company entered into
a loan agreement with China Construction Bank ("CCB") to borrow RMB
21,450,000
(approximately $
3,119,000
). The loan bears an
annual interest rate of
5.39
% and is due in 84 months. Pursuant to the loan agreement, the proceeds of the loan can only be used in the
purchase of manufacturing facility and the associated land use right located at Lingang Economic Development Zone, Huangdao District,
Qingdao, Shandong Province, PRC.
The loan agreement between the Company and CCB
contains a number of covenants and restrictions. Such covenants and restrictions include, but are not limited to, financial ratios. Unless
a breach is remediated or a waiver is obtained, a breach of such covenants and restrictions generally permits lender to demand accelerated
repayment of principal and interest.
As of December 31, 2018, the Company did not meet
the financial ratios set forth in the debt covenants. Starting December 2019, the Company has been in default on the loan. In January
2020, CCB filed litigation against the Company. In April 2020, the court has ruled that, among others, the Company should repay CCB the
principal and interests in full within 10 days from the date of ruling. On March 13, 2021, the land and factory buildings on the land
owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were auctioned by the court for $
5,098,461
(RMB
33.14
million), of which, $
3,192,827
(RMB
21.14
million) has been used to repay loan principal and accrued interest to CCB. The repayment has been completed by April 2021.
The Company's repayments of substantially
all its outstanding short-term loans were delinquent on or around November 2019, and the Company is involved in a number of lawsuits filed
by various lenders. See further discussions in Note 16.
On March 16, 2022, the People's Court of
Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of
bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, the short-term
bank loans borrowed by Tiandihui are now under bankruptcy proceedings, and have been reclassified and included in "liabilities held
for sales" as reflected in the consolidated balance sheets.
F-
21
Note 5 – ACCOUNTS RECEIVABLE, NET AND
ACCOUNTS RECEIVABLE-RELATED PARTIES, NET
Accounts receivable, net consisted of the following:
December 31,
2022
December 31,
2021
Accounts receivable
$
58,739
$
56,056
Less: Allowance for credit losses
(
29,421
)
(
19,221
)
Accounts receivable, net
$
29,318
$
36,835
The changes in allowance for credit losses consisted
of the following:
For the Years Ended December 31,
2022
2021
2020
Balance, beginning of the year
$
19,221
$
16,656
$
612,249
Provision for credit losses
11,642
2,168
15,757
Write-off uncollectable accounts receivable
-
-
(
612,249
)
Translation adjustment
(
1,442
)
397
899
Balance, end of the year
$
29,421
$
19,221
$
16,656
Note 6 – INVENTORIES
As of December 31, 2022 and 2021, inventories
consisted of the following:
December 31,
2022
December 31,
2021
Raw materials
$
27,069
$
39,884
Work in process
8,665
Finished goods
43,707
83,173
Total
70,776
131,722
Inventory write-down
(
69,789
)
(
80,299
)
Translation adjustments
Inventories, net
$
987
$
51,423
The Company recorded write-down of potentially
obsolete or slow-moving inventories of $
226
, $
216,325
and $
42,241
for the years ended December 31, 2022, 2021 and 2020, respectively.
F-
22
Note 7 – PROPERTY, PLANT AND EQUIPMENT,
NET
As of December 31, 2022 and 2021, property, plant
and equipment consisted of the following:
December 31,
December 31,
2022
2021
Machinery equipment
$
7,524
$
57,094
Electronic equipment
17,784
19,724
Office equipment
6,088
151
Buildings
735,795
735,795
Total property, plant and equipment
767,190
812,765
Less: accumulated depreciation
(
62,547
)
(
31,095
)
Less: impairment loss
(
6,599
)
-
Translation adjustments
-
-
Property, plant and equipment, net
$
698,044
$
781,670
Depreciation expense for the years ended December
31, 2022, 2021 and 2020 was $
62,547
, $
31,095
and $
363,098
, respectively.
As of December 31, 2021 and 2020, certain property,
plant and equipment with net book value of $
55.25
and $
6,174,867
were pledged as collateral under certain loan arrangements, respectively
(also see Note 4). In connection with the discontinued operations of Tiandihui (see Note 4), such pledged assets were reclassified and
included in the "non-current assets held for sales" as reflected in the consolidated balance sheets.
As of December 31, 2021 and 2020, certain buildings
with net book value of $
552,529
and $
5,890,975
were judicially seized by the court. In connection with the discontinued operations of
Tiandihui (see Note 4), such pledged assets were reclassified and included in the "non-current assets held for sales" as
reflected in the consolidated balance sheets.
Note 8 – INTANGIBLE ASSETS
December 31,
2021
December 31,
2020
Intangible assets- brand name
$
535,815
$
536,065
Accumulated amortization
(
53,975
)
(
433
)
Intangible assets, net
$
481,840
$
535,632
The intangible assets mainly include Bo Ling's
Chinese Restaurant, Inc.'s brand name to attract customers and bring in increased revenue to benefit the Company.
During the years ended December 31, 2022, 2021
and 2020, amortization expense amounted to $
34,507
, $
28,253
and $
28,217
, respectively.
Estimated future amortization expense for land
use rights is as follows:
Years ended December 31,
Amortization
expense
2023
$
53,561
2024
53,561
2025
53,561
2026
53,561
2027
53,561
Thereafter
214,035
$
481,840
Note 9 – OTHER CURRENT LIABILITIES
Other current liabilities mainly consist of accrued
liabilities, interest payable owed to third party and related party creditors, Wages payable and other payables. Accrued liabilities
mainly include accrued employee welfares and benefits and rent expenses. Other payables primarily represent accrued fee of Borrowing
from individuals and transportation costs as of December 31, 2022 and primarily represented accrued management fee paid to an asset management
company in connection with the management of the Company's short-term investments in marketable securities as of December 31, 2022.
As of December 31,
2022
2021
Other Payables
$
1,212,420
$
533,668
Total
$
1,212,420
$
533,668
F-
23
Note 10 – RELATED PARTY TRANSACTIONS
The related parties had transactions for the
years ended December 31, 2022, 2021 and 2020 consist of the following:
Name
    of Related Party
Nature
    of Relationship at December 31, 2022
Dandan Liu
Chairman of the Board, Shareholder, Chief Executive Officer ("CEO")
Rongfeng Cui
Former Chairman of the Board and Former CEO. Rongfeng Cui ceased to be the CEO of the Company effective August 2, 2019.
Rongbing Cui
Former Chief Financial Officer ("CFO"), Rongfeng Cui's brother
Feng Zhang
Chief Financial Officer ("CFO")
Yanjuan Wang
Rongfeng Cui's wife
Yan Fu
Former Sales Vice President
Yuxiang Qi
Dandan Liu's mother
Tide (Shanghai) Industrial Co. Ltd. ("Tide")
Owned by Rongfeng Cui and Yanjuan Wang
Qingdao Like Pet Supplies Co., Ltd. ("Like")
Rongfeng Cui served as CEO, and Shuhua Cui, sister of Rongfeng Cui, served as the legal person. On May 26, 2016, both Rongfeng Cui and Shuhua Cui resigned from their positions, but still have significant influence on Like.
Qingdao Saike Environmental Technology Co.,
    Ltd. ("Saike")
Owned by Rongfeng Cui and Yanjuan Wang
Huangdao Ding Ge Zhuang Kangkang Family Farm
    ("Kangkang Family Farm")
Controlled by Rongfeng Cui's father
TDH Group BVBA
A Belgium company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018
TDH JAPAN
A Japanese company solely owned by Rongfeng Cui prior to November 30, 2018; a wholly owned subsidiary of the Company since November 30, 2018. Dissolved in February 2021.
Qingdao Yinhe Jiutian Information Technology
    Co., Ltd. ("Yinhe Jiutian")
Solely owned by Rongbing Cui
Huangdao Hanyinhe Software Development Center
    Co., Ltd. ("Hanyinhe")
Solely owned by Xiaomei Wang
Zhenyu Trading (Qingdao) Co., Ltd. ("Zhenyu")
Noncontrolling shareholder of Yichong prior to September 27, 2019; Sole shareholder of Yichong after September 27, 2019
Beijing Quanmin Chongai Information Technology
    Co., Ltd. ("Quanmin Chongai")
Rongbing Cui serves as supervisor of Quanmin Chongai
LAI LINGS LENEXA
Raymond Ng is the son of Richard Ng
Products Inc.
Owned by Richard Ng
Bo Lings at Zona Rosa
    in the Northland
Owned by Richard Ng
Richard Ng
Richard owns 49% control of Far Ling's Inc.
F-
24
Due to related parties from continuing operations
Due to related parties consisted of the following:
December 31,
December 31,
2022
2021
Rongfeng Cui
33,624
32,401
Feng Zhang
22,123
1,568
Products Inc.
-
2,441
Total
$
55,747
$
36,410
The balance of due to related parties represents
expenses paid by related parties on behalf of the Company as well as advances the Company obtained from related parties for working capital
purposes. The amounts owed to the related parties are unsecured, non-interest bearing and payable on demand.
Short-term loans from related parties
December 31,
December 31,
2022
2021
Rongfeng Cui
$
266,451
$
285,878
Total
$
266,451
$
285,878
In March 2018, TDH Group BVBA borrowed non-interest
bearing, unsecured long-term loans from Rongfeng Cui in the aggregate amount of €
250,000
(approximately $
288,000
), of which €
60,000
(approximately $
69,000
), €
60,000
(approximately $
69,000
), €
60,000
(approximately $
69,000
), €
60,000
(approximately $
69,000
),
€
10,000
(approximately $
11,500
) and $
0
is due in the years ended December 31, 2019, 2020, 2021, 2022, 2023 and thereafter, respectively.
The Company did not make any repayment to Rongfeng Cui during the years ended December 31, 2022, 2021 and 2020, such default may lead
to callable of the loan at any time by Rongfeng Cui. As a result, the corresponding loan was classified as current liability and included
in short-term loans – related parties as of December 31, 2022
and
2021. The Company is aware of the possible penalty and/or other consequence due to the default, however, no reasonable estimate can be
made at this time.
The Company borrowed unsecured short term loans
from related parties in the amount of $
0
, $
0
and $
49,350
during the years ended December 31, 2022, 2021 and 2020, respectively. Interest
rate for the loans outstanding during the year ended December 31, 2021 ranged from
0
% to
25
% per annum. The Company made repayment in
the amount of $
0
and $
0
during the years ended December 31, 2021 and 2020, respectively.
Modification of Loans from related party
In January 2018, the Company entered into a loan
agreement with Dandan Liu. In May 2018, the agreement was amended to, among others, reclassify unpaid interest payable to the principal
of the loan, resulting in an increase of principal from RMB
3,000,000
(approximately $
466,000
) to RMB
3,030,000
(approximately $
471,000
)
and increase the interest rate from
3
% to
15
%. Interest rate will be
24
% for the period past due. In March 2019, the agreement was further
amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal to RMB
3,484,500
(approximately $
539,000
) and extend the maturity date from
January 2019
to
May 2019
. As of Dec. 31, 2022, the loan had $
69,566
of interest
outstanding.
In June 2018, the Company entered into a loan
agreement with Yuxiang Qi. Interest rate was
15
% during the loan period and
24
% for the period past due. In March 2019, the agreement
was amended to, among others, reclassify unpaid interest payable to the principal of the loan, resulting in an increase of principal
from RMB
3,000,000
(approximately $
462,000
) to RMB
3,405,000
(approximately $
522,000
) and extend the maturity date from
December 2018
to
May 2019
. The Company has been in default of this loan and is subject to
24
% annual interest rate.
The Company analyzed the amendments under ASC
470-50 and concluded that these amendments did not qualify for debt modification.
The interest expenses for the loans from related
parties amounted to $
0
, $
29,581
and $
43,835
for the years ended December 31, 2022, 2021 and 2020, respectively.
F-
25
Accounts payable to related parties
December 31,
December 31,
2022
2021
Richard Ng
1,033
-
Total
$
1,033
$
-
Leases from related parties
The Company entered into various operating lease
agreements for certain premises with its related parties during 2019 and 2020. The related party lease agreements were terminated in 2021.
See Note 15.
Note 11 – INCOME TAXES
British Virgin Islands ("BVI")
Under the current laws of BVI, TDH Holdings is
not subject to tax on income or capital gain. In addition, payments of dividends by the Company to their shareholders are not subject
to withholding tax in the BVI.
Hong Kong
The Company's subsidiary, TDH HK and TDH
Foods were incorporated in Hong Kong and has no operating profit or tax liabilities during the period. TDH HK and TDH Foods were subject
to tax at
16.5
% on the assessable profits arising in or derived from Hong Kong.
United State
The Company's subsidiary, TDH Petfood LLC
was incorporated in Nevada as a limited liability company had no active business operations since its incorporation and it has been deregistered
and dissolved in 2021 (see Note 1). The Company's subsidiary, TDH Income, is incorporated in the State of Nevada and is subject
to the United States Federal income tax at a statutory rate of
21
%. On October 31, 2021, TDH Income acquired
51
% equity interests of
Far Ling's Inc. and
100
% equity interests of Bo Ling's Chinese Restaurant, Inc. The Company's subsidiary, Ruby21Noland,
is incorporated in the State of Missouri. For the subsidiaries and entities incorporated in the United States listed above, they are
subject to the United States Federal income tax at a statutory rate of
21
%. However, no provision for the U.S. Federal income tax has
been made as TDH Income Corporation,Ruby21Noland LLC, Far Ling's Inc. and Bo Ling's Chinese Restaurant, Inc. had no taxable
income in this jurisdiction for the reporting periods.
Japan
The Company's subsidiary, TDH JAPAN, is
incorporated in Japan and has no operating profit or tax liabilities during the reporting period. TDH JAPAN is subject to tax at
21.421
%
on the assessable profits arising in or derived from Japan.
Belgium
The Company's subsidiary, TDH Group BVBA,
is incorporated in Belgium and has no operating profit or tax liabilities during the reporting period. TDH Group BVBA is subject to tax
at
29.58
% on the assessable profits arising in or derived from Belgium.
F-
26
PRC
The Company's subsidiaries incorporated
in the PRC are subject to PRC Enterprise Income Tax ("EIT") on the taxable income in accordance with the relevant PRC income
tax laws. On March 16, 2007, the National People's Congress enacted a new enterprise income tax law, which took effect as of January
1, 2008. The law applies a uniform
25
% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. According
to the tax law, entities that qualify as high and new technology enterprises ("HNTE") supported by the PRC government are
allowed a
15
% preferential tax rate instead of the uniform tax rate of
25
%.
On December 2, 2016, Tiandihui was granted the
HNTE designation jointly by Qingdao science and Technology Bureau, Qingdao Municipal Finance Bureau, Qingdao Municipal State Taxation
Bureau, Qingdao Local Taxation Bureau, and is qualified for a preferential tax rate of
15
% for the year ended December 31, 2018. Tiandihui
is subject to the
25
% EIT rate for the years ended December 31, 2022 and 2021. On March 16, 2022, the People's Court of Huangdao
District, Qingdao City, Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy
liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings.
The reconciliations of the statutory income tax
rate and the Company's effective income tax rate are as follows:
For the Years Ended December 31,
2022
2021
2020
United states income tax rate
21.00
%
21.00
%
-
HK statutory income tax rate
16.50
%
16.50
%
16.50
%
PRC statutory income tax rate difference
8.50
%
8.50
%
8.50
%
Effect of additional deduction on R&D expense and salary for disabled workers
0.00
%
0.00
%
0.00
%
Effect of expenses not deductible for tax purposes
-
17.41
%
-
17.38
%
-
2.43
%
Valuation allowance recognized with respect to the loss in subsidiaries
-
28.59
%
-
28.52
%
-
22.57
%
Other
-
0.00
%
-
0.10
%
0.00
%
Total
-
%
-
%
-
%
Accounting for Uncertainty in Income Taxes
The tax authority of the PRC Government conducts
periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax
filings. Therefore, the Company's PRC entities' tax filings results are subject to change. It is therefore uncertain as to
whether the PRC tax authority may take different views about the Company's PRC entities' tax filings, which may lead to additional
tax liabilities.
ASC 740 requires recognition and measurement
of uncertain income tax positions using a "more-likely-than-not" approach. The management evaluated the Company's tax
positions and concluded that no provision for uncertainty in income taxes was necessary as of December 31, 2022 and 2021.
Deferred tax assets and liabilities as of December
31, 2022 and 2021 are composed of the following:
As of December 31,
2022
2021
Deferred tax assets, non-current
Net operating loss carrying forward
$
6,356,742
$
6,557,667
Total deferred tax assets
Valuation allowance
(
6,356,742
)
(
6,557,667
)
Total deferred tax assets
$
-
$
-
As of December 31,
2022
2021
Deferred tax liabilities, non-current
Property, plant and equipment
$
-
$
-
Total deferred tax liabilities
$
-
$
-
In assessing the realizability of deferred tax
assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible or are utilized.
F-
27
Note 12 – STOCKHOLDERS' EQUITY
Common shares
On December 2, 2020, the Company entered into
subscription agreements with four accredited investors for the sale of
455,000
of the Company's common shares (as adjusted for the
Company's June 14, 2022 1-for-20 reverse stock split) at the price $
6.0
per share (as adjusted for the Company's June 14,
2022 1-for-20 reverse stock split) for the gross proceeds of approximately $
2.73
million. In April 2021, a total of
455,000
common shares
(as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split) were issued to four investors with cash proceeds of $
2,730,000
.
The shares were sold without registration under the Securities Act of 1933 in reliance on the exemptions provided by Section 4(a)(2) of
the Securities Act as transactions not involving a public offering and rules promulgated under the Securities Act as sales to accredited
investors. The Company's intention was to use the proceeds of this offering for working capital and general working purposes. There
were no discounts or brokerage fees associated with this offering.
On September 30, 2021, the Company and certain
investors entered into a securities purchase agreement in connection with a registered direct offering, pursuant to which the Company
agreed to sell to the investors an aggregate of
500,000
of its common shares (as adjusted for the Company's June 14, 2022 1-for-20
reverse stock split) at purchase price of $
17.80
per share (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split).
The registered direct Offering was closed on September 30, 2021 and the Company received approximately $
8.2
million net proceeds from
the issuance of
500,000
) common shares (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split) to investors,
after deducting placement agent fees and estimated offering expenses.
On November 3, 2021, the Company and certain investors
entered into a securities purchase agreement in connection with a registered direct offering, pursuant to which the Company agreed to
sell to the investors an aggregate of
750,000
its common shares (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock
split) at purchase price of $
12.80
per share (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split). The registered
direct offering was closed on November 3, 2021 and the Company received approximately $
8.9
million net proceeds from the issuance of
750,000
common shares (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split) to investors, after deducting placement
agent fees and estimated offering expenses.
On June 14, 2022, our Board approved to effect
a reverse stock split of our common shares at the ratio of one-for-twenty with the market effective date of June 14, 2022.
The objective of the reverse stock split was to enable our Company to regain compliance with NASDAQ Marketplace Rule 5550(a)(2)
and maintain its listing on Nasdaq. As a result of the reverse stock split, each twenty common shares outstanding automatically
combined and converted to one issued and outstanding common share without any action on the part of the shareholder. As a result of this
stock reverse split, all common stocks issued prior to June 14, 2022 has been retrospectively restated and reflected in the consolidated
financial statements.
On July 26, 2022, we completed a private placement
of securities, and entered into a securities purchase agreement with
eight
accredited investors pursuant to which we sold to the investors
an aggregate
4,000,000
of our common shares, at a price of $
1.50
per share and warrants at a price of $
0.01
per warrant to purchase
up to an aggregate
4,000,000
of our common shares, for gross proceeds of $
6 040 000
and received net proceeds of $
6,017,781
after deducting
fees and expenses related to the transaction. The warrants have an exercise price of $
2.44
per share, and a term of
two years
.  The
warrants are immediately exercisable upon issuance and have a cashless exercise feature. The securities were sold without registration
under the Securities Act of 1933 in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act as transactions not involving
a public offering and rules promulgated under the Securities Act as sales to accredited investors. The Company's intention was to
use the proceeds of this offering for working capital and general working purposes.
Investor warrants
In connection with the Company's registered
direct offering as consummated on September 30, 2021, pursuant to the securities purchase agreement, the Company also agreed to sell to
the investors warrants exercisable for an aggregate of
1,000,000
of its common shares (as adjusted for the Company's June 14, 2022
1-for-20 reverse stock split), with warrant purchase price of $
0.01
per warrant. The warrants are exercisable immediately as of the date
of issuance at an exercise price of $
41.20
per share (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split)
and expire twenty-four (24) months from the date of issuance. The warrants may also be exercised on a cashless basis.
In addition, in connection with the Company's
registered direct offering as consummated on November 3, 2021, pursuant to the securities purchase agreement, the Company also agreed
to sell to the investors warrants exercisable for an aggregate of
1,500,000
of its common shares (as adjusted for the Company's
June 14, 2022 1-for-20 reverse stock split), with warrant purchase price of $
0.01
per warrant. The warrants are exercisable immediately
as of the date of issuance at an exercise price of $
29.40
per share (as adjusted for the Company's June 14, 2022 1-for-20 reverse
stock split) and expire twenty-four (24) months from the date of issuance. The warrants may also be exercised on a cashless basis.
As of December 31, 2021,
2,500,000
warrants (as
adjusted for the Company's June 14, 2022 1-for-20 reverse stock split) were issued and outstanding and
1,528,000
warrants (as adjusted
for the Company's June 14, 2022 1-for-20 reverse stock split) have been exercised on the cashless basis in exchange for
1,221,181
of the Company's common shares (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split) and the Company
did not receive any proceeds from the exercise of these warrants. Additional
972,00
warrants (as adjusted for the Company's June
14, 2022 1-for-20 reverse stock split) were exercised at cashless basis in January 2022 in exchange for
1,104,587
of the Company's
common shares (as adjusted for the Company's June 14, 2022 1-for-20 reverse stock split).
F-
28
On July 26, 2022, in connection with our private
placement of securities as mentioned above, we sold to the investors an aggregate
4,000,000
of our common shares, at a price of $1.50
per share and warrants at a price of $
0.01
per warrant to purchase up to an aggregate
4,000,000
of our common shares, for gross proceeds
of $
6,040,000
. The warrants have an exercise price of $
2.44
per share, and a term of two years.  The warrants are immediately exercisable
upon issuance and have a cashless exercise feature.
The following
table summarizes the investor warrants activities for the years ended December 31, 2022, 2021 and 2020 was as follows:
Number of
warrants
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Term (years)
Outstanding, December 31, 2020
-
-
-
Granted
50,000,000
$
34.20
2.00
Exercised
(
30,560,000
)
34.20
1.87
Exercisable, December 31, 2021
19,440,000
$
32.60
1.75
Granted
4,000,000
2.44
2.00
Exercised
(
19,440,000
)
32.60
0.75
Outstanding, December 31, 2022
4,000,000
$
2.44
1.68
Exercisable, December 31, 2022
4,000,000
$
2.44
1.68
For the above mentioned investor warrants, the
Company may compel the exercise of the warrants if the closing price of the Company's common shares exceeds $
6.00
for ten (10)
consecutive trading days commencing six (6) months after issuance. The exercisability of the warrants may be limited if, upon exercise,
the holder or any of its affiliates would beneficially own more than
9.99
% of the Company's common shares.
Management determined that these warrants meet
the requirements for equity classification under ASC 815-40 because they are indexed to its own stock.
Statutory reserve
As of December 31, 2022 and 2021, the Company
had statutory reserve in the amount of $
160,014
. In accordance with the relevant laws and regulations of the PRC, the Company's
PRC subsidiaries are required to set aside at least
10
% of their respective after-tax net profits each year determined in accordance
with PRC GAAP and if any, to fund the statutory reserve until the balance of the reserve reaches
50
% of their respective registered capital.
The statutory reserve is not distributable in the form of cash dividends and can be used to make up cumulative prior year losses.
Restricted net assets
As a result of the PRC laws and regulations,
the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted included additional
paid-in capital and statutory reserves of the Company's PRC subsidiaries.
As of December 31, 2022 and 2021, total restricted
net assets were $
14,666,369
and $
12,666,369
, respectively.
Note 13 – CONCENTRATIONS OF CREDIT RISK
AND MAJOR CUSTOMERS
Customers
For the years ended December 31, 2022, 2021 and
2020, customers accounting for
10
% or more of the Company's net revenue were as follows:
For the Years Ended December 31,
Customer
2022
2021
2020
Customer A
*
%
*
%
*
%
Customer G
*
%
*
%
*
%
Customer P
*
%
*
%
17.33
%
*
Less than
10
%
As of December 31, 2021, no single customer accounted
for more than
10
% of the Company's outstanding accounts receivable.
As of December 31, 2021, Customer Q, Customer
R and Customer S accounted for
28
%,
35
% and
36
% of the Company's total current outstanding accounts receivable, respectively.
F-
29
Suppliers
For the years ended December 31, 2022, 2021 and
2020, suppliers accounting for
10
% or more of the Company's purchase were as follows:
For the Years Ended December 31,
Supplier
2022
2021
2020
Supplier D
*
%
*
%
16.45
%
Supplier E
*
%
*
%
10.16
%
Supplier F
*
%
*
%
17.62
%
Supplier G
*
%
35.57
%
*
%
Supplier H
28.29
%
*
%
*
%
Supplier I
20.37
%
*
%
*
%
Supplier J
18.61
%
*
%
*
%
Supplier K
15.69
%
*
%
*
%
*
Less than
10
%
As of December 31, 2022, Supplier G's balance
accounted for
39.87
% of the Company's total accounts payable.
As of December 31, 2021, Supplier G's balance
accounted for
35.57
% of the Company's total accounts payable.
Note 14 – SEGMENT AND REVENUE ANALYSIS
The Company is engaged in the business of manufacturing
and selling of petfood and restaurant operations.
An operating segment is a component of the Company
that engages in business activities from which it may earn revenues and incur expenses, and is identified on the basis of the internal
financial reports that are provided to and regularly reviewed by the Company's chief operating decision maker in order to allocate
resources and assess performance of the segment.
In accordance with ASC 280, Segment Reporting,
operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated
regularly by the chief operating decision maker ("CODM"), or decision making group, in deciding how to allocate resources
and in assessing performance. The Company uses the "management approach" in determining reportable operating segments. The
management approach considers the internal organization and reporting used by the Company's chief operating decision maker for
making operating decisions and assessing performance as the source for determining the Company's reportable segments. Management,
including the chief operating decision maker, reviews operation results by the revenue of different services. Based on management's
assessment, the Company has determined that it has
two
operating segments as defined by ASC 280, including petfood sales and restaurant
business operations.
Certain entity-wide disclosures relating to revenues
for the years ended December 31, 2022, 2021 and 2020 are as follows:
For the year ended December 31, 2022
Petfood
sales
Restaurant
business
Total
Revenue from continuing operations
$
24,726
$
3,074,007
$
3,098,733
Net (loss) income from continuing operations
$
1,089,347
104,720
$
1,194,067
Net loss from discontinued operations
$
(
339,054
)
-
$
(
339,054
)
Total Net income
$
750,293
$
104,720
$
855,013
Depreciation and amortization
$
62,164
$
54,358
$
116,522
Total assets
$
34,480,238
$
1,502,768
$
36,513,397
For the year ended December 31, 2021
Petfood
sales
Restaurant
business
Total
Revenue from continuing operations
$
474,632
$
606,463
$
1,081,095
Net loss from continuing operations
$
(
2,854,514
)
$
(
1,215,613
)
$
(
4,070,127
)
Net loss from discontinued operations
$
(
2,645,831
)
$
-
$
(
2,645,831
)
Total Net loss
$
(
5,500,345
)
$
(
1,215,613
)
$
(
6,715,958
)
Depreciation and amortization
$
395,094
$
13,646
$
408,740
Total assets
$
26,969,867
$
5,078,090
$
32,047,957
F-
30
For the year ended December 31,
    2020
Petfood
sales
Restaurant
business
Total
Revenue from continuing operations
$
622,801
$
-
$
622,801
Net income (loss) from continuing operations
$
1,690,529
$
$
1,690,529
Net loss from discontinued operations
$
(
2,565,197
)
$
$
(
2,565,197
)
Net loss
$
(
874,668
)
$
-
$
(
874,668
)
Depreciation and amortization
$
391,351
$
-
$
391,351
Capital expenditure
$
47,086
$
-
$
47,086
Total assets
$
18,452,910
$
-
$
18,452,910
The net revenue generated from different marketing
channels consists of the following:
For the Years Ended December 31,
2022
2021
2020
Overseas sales
$
-
134,896
226,385
Domestic sales
25,849
308,267
382,497
Electronic commerce
-
34,590
16,708
Restaurant revenue
3,074,007
606,463
-
Less: Sale tax and addition
(
1,123
)
(
3,121
)
(
2,789
)
Total net revenue from continuing operations
$
3,098,733
1,081,095
622,801
The net revenue generated from different product
lines and services is set forth as following:
For the Years Ended December 31,
2022
2021
2020
Pet chews
$
8,367
46,112
59,096
Dried pet snacks
8,005
293,325
317,392
Wet canned petfood
1,290
10,760
84,117
Dental health snacks
550
6,127
19,915
Baked pet biscuits
-
-
3,132
Restaurant revenue
3,074,007
606,463
-
Others
7,637
121,429
141,938
Less: Sales tax and addition
(
1,123
)
(
3,121
)
(
2,789
)
Total net revenue from continuing operations
$
3,098,733
1,081,095
622,801
The net revenue generated from different countries
is set forth as following:
For the Years Ended December 31,
2022
2021
2020
South Korea
$
-
37,320
34,378
China
25,849
342,857
382,497
United Kingdom
-
-
-
Germany
-
-
-
U.S.
3,074,007
606,463
-
Other countries
-
97,576
208,715
Less: Sales tax and addition
(
1,123
)
(
3,121
)
(
2,789
)
Total net revenue from continuing operations
$
3,098,733
1,081,095
622,801
"Other countries" are comprised of
all countries whose revenue, individually, was less than
10
% of the Company's total revenue.
The Company's long-lived assets associated
with petfood business are substantially located in the PRC. The Company's long-lived assets associated with restaurant business
operations are located in the United States.
F-
31
Note 15 – OPERATING LEASES
The company has signed two lease agreements for office premises and
restaurant premises. On October 6, 2010, Far Ling Restaurant entered into a lease agreement with the landlord to lease the space for
the restaurant for 15 years and six months, which can be renewed for
10
years.
On April 4, 2022, Far Ling signed supplemental lease agreement with
the landlord to modify the lease agreement, with new lease terms expired by December 31, 2026, and monthly lease payment of $
20,000
starting
from Jan 2022.
As a result of this change, the lease agreement has been modified,
which may have significant impact on the reported ROU assets and corresponding lease liability.
A lease modification is a change to the terms
and conditions of a contract resulting in a change to either the scope or consideration for a lease. This could be a change that either
adds or terminates the right to use a portion or all of the underlying asset(s) or changes the lease term. If the lease modification
only partially reduces the lessee's rights to the underlying asset(s), this is accounted for as a partial termination. In this
scenario, the lease liability is remeasured based on the new payment terms, and the ROU asset is reduced based on either the proportionate
change in the lease liability or the proportionate change in the asset.
As a result of the above mentioned lease modification,
the remaining lease term of the Company's leases ranges from approximately
1
to
4
years. The estimated effect of lease renewal
and termination options, as applicable, was included in the consolidated financial statements in current period.
Other lease related expenses amounted to $
54,145
for repair and maintenance, $
4,680
for parking, and $
21,713
for water utility for the year ended December 31, 2022.
The components of lease expense were as follows:
For the Years Ended December 31,
2022
2021
2020
Operating lease cost
$
214,959
$
85,481
$
50,244
Short-term lease costs
-
-
-
Total lease cost
$
214,959
$
85,481
$
50,244
Supplemental cash flow information related to
leases was as follows:
For the Years Ended December 31,
2022
2021
2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases
$
42,484
$
10,075
$
9,420
Weighted-average remaining lease term
4.0
years
14.2
years
5.97
years
Weighted-average discount rate
3.50
%
3.75
%
5.39
%
Supplemental balance sheet information related
to leases was as follows:
As of December 31,
2022
2021
Operating lease right-of-use assets
$
783,658
$
4,604,365
Operating lease right-of-use assets, related parties
-
-
Total lease right-of-use assets
783,658
4,604,365
Operating lease liabilities, current
212,814
268,403
Operating lease liabilities-related parties, current
-
-
Operating lease liabilities-related party, non-current
683,113
4,846,760
Total operating lease liabilities
$
895,927
$
5,115,163
The following table summarizes the maturity of
our operating lease liabilities as of December 31, 2022:
2023
240,000
2024
240,000
2025
240,000
2026
240,000
Total
960,000
Less imputed interest
(
64,073
)
Total operating lease liabilities
$
895,927
F-
32
NOTE 16 – COMMITMENTS AND CONTINGENCIES
COMMITMENTS
The Company provides counter guarantee to Gaochuang
including a cash deposit of RMB
300,000
(approximately $
43,075
) and asset pledge of four invention patents and certain property, plant
and equipment with net book value of $
219,404
and $
239,670
as of December 31, 2022 and 2021, respectively, in consideration of the guarantees
provided by Gaochuang for certain notes payables financed by the Company during the years ended December 31, 2019 and 2018 (the "Counter
Guarantee"). The Counter Guarantee arrangement further includes an unlimited joint liability guarantee provided by Rongfeng Cui
and Yanjuan Wang, and a third party guarantee provided by Saike.
During the year ended December 31, 2019, the
Company did not make repayment on certain notes payables as scheduled, and Gaochuang, as one of the guarantors, paid on behalf of the
Company to the holders of such notes payables. As a result, the unpaid notes payables were reclassified to loan payable to Gaochuang
and the amount was included in "current liabilities held for sale associated with discontinued operation of Tiandihui
"
on the consolidated balance sheets as of December 31, 2022 and 2021. The loan payable to Gaochuang was pledged and guaranteed
by the aforementioned assets and guarantors, respectively, under the counter guarantee.
Future minimum lease payments for operating lease
commitments as of December 31, 2022 are disclosed in Note 15.
CONTINGENCIES
The Company is involved in a number of claims
pending in various courts, in arbitration, or otherwise unresolved as of December 31, 2022. These claims are substantially related to
non-payment of wage payables, non-payment of vendor payables and non-payment of loans and notes payables. Adverse results in these claims
may include awards of damages and may also result in, or even compel, a change in the Company's business practices, which could
impact the Company's future financial results. On March 16, 2022, the People's Court of Huangdao District, Qingdao City,
Shandong Province made a civil ruling and announced the acceptance of creditors' application of bankruptcy liquidation of Qingdao
Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy
proceedings. As of December 31, 2022, and as of the date of this filing, the bankruptcy proceedings have not been completed and are expected
to be completed by the end of 2023.
I)
Labor
                                            arbitration claims by former employees
Since November 2019, certain former employees
of the Company commenced arbitration proceedings against the Company under applicable labor rules and standards, claiming, among others,
lost wages and/or severance payments. The Company accrued approximately $
0.4
million contingent liabilities in other current liabilities
on the consolidated balance sheet as of December 31, 2019 and recognized contingent losses of approximately $
0.4
million for the year
ended December 31, 2019 upon the estimate of the management of the Company together with the trail counsel of these cases. Upon ruling
of these cases, the Company further accrued approximately $
0.1
million wage and/or severance payables in other current liabilities on
the consolidated balance sheet as of December 31, 2020 and recognized losses of approximately $
0.1
million for the year ended December
31, 2020. On March 13, 2021, the land and factory buildings above the land owned by Qingdao Tiandihui Foodstuffs Co., Ltd. were actioned
by the court for $
5,098,461
(RMB
33.14
million). In 2021, we have paid RMB
3.73
million to substantially settle the labor arbitration
cases with our former employees. We only have RMB
0.5
million ($
0.08
million) remaining severance payables to them as of December 31,
2021. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced
the acceptance of creditors' application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
II)
Legal
                                            claims by vendors
Since November 2019, the Company has been the
subject of multiple lawsuits by its raw material suppliers, printing and packaging suppliers, transportation companies and other vendors
due to its non-payment of various invoices for vendor services rendered. As of the date of this report, substantially all cases have
been concluded. The mediation and judgement involved with claims of liabilities arose before December 31, 2019 and the Company has included
substantially all such claims in Current Liabilities held for sale associated with discontinued operation of Tiandihui on the consolidated
balance sheets as of December 31, 2022 and 2021.
F-
33
III)
Legal
                                            claims by lenders
Since November 2019, the Company has defaulted
on multiple loans and notes payable from various lenders. As a consequence, the Company has been subjected to multiple lawsuits by various
Chinese banks and other lenders. The claims raised in these lawsuits pertain to the Company's non-payment of principals and interests
as scheduled in the loan agreements and note payable agreements. The claims pertained to liabilities arose before December 31, 2019,
and the Company has included substantially all such claims in Current Liabilities held for sale associated with discontinued operation
of Tiandihui on the consolidated balance sheets as of December 31, 2022 and 2021. The court has ruled on the litigations and among others,
request the Company to pay for litigation related fees; repay the outstanding loans and interests to the lenders within a short period,
normally 10 days, from the date of the rulings and grant the lenders with priority right of the repayment from the auction proceeds of
the pledged real estate in case of non-performance by the Company. As of December 31, 2021, the Company has not fulfilled the court order.
On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced the
acceptance of creditors' application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into bankruptcy
proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as of the date
of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023.
The above legal proceedings led to, among others,
the Company's certain bank accounts and property, plant and equipment judicially frozen by the court as of December 31, 2022 and
2021. On March 16, 2022, the People's Court of Huangdao District, Qingdao City, Shandong Province made a civil ruling and announced
the acceptance of creditors' application of bankruptcy liquidation of Qingdao Tiandihui Foodstuffs Co., Ltd., and it entered into
bankruptcy proceedings. Accordingly, these legal claims are now subject to the bankruptcy proceedings. As of December 31, 2022, and as
of the date of this filing, the bankruptcy proceedings have not been completed and are expected to be completed by the end of 2023. See
recent development of legal proceedings at Note 19.
Note 17 – LONG-TERM INVESTMENTS
In February 2018, the Company acquired
5
% equity
interests in Liujiayi Pet Technology (Beijing) Co., Ltd. ("Liujiayi") for a cash consideration of RMB
500,000
(approximately
$
79,400
). The investment was accounted for at cost, less impairment, plus or minus changes resulting from observable price changes in
orderly transaction for identical or similar investments of the same issuer, if any, using the measurement alternative due to lack of
readily determinable fair values, pursuant to ASC 321. In June 2020, the Company transferred its equity interests in Liujiayi to a creditor
as partial repayment of short-term loan owed to the creditor. As a result, the Company is no longer a shareholder of Liujiayi.
In March 2018, the Company invested RMB
1,000,000
(approximately $
156,200
) in Shandong Tide Food Co., Ltd. ("Shandong Tide"), a petfood production company that was newly
established in 2018, representing
37
% equity interests in Shandong Tide. The investment was accounted for as equity method in accordance
with ASC 323. The Company recognized its proportionate share of Shandong Tide's net loss in the amount of $
0
and $
4,903
, respectively,
into the consolidation statements of operations and comprehensive loss for the years ended December 31, 2020 and 2019, respectively.
In June 2020, the Company transferred its equity interests of Shandong Tide to a supplier as partial repayment of outstanding account
payable owed to the supplier. As a result, the Company was no longer a shareholder of Shandong Tide.
Note 18 – DISPOSAL OF SUBSIDIARIES
TDH Petfood LLC had no active business operations
since its incorporation, and it has been deregistered and dissolved in 2021.
TDH Japan has been deregistered and dissolved
in February 2021.
The disposals mentioned above did not constitute
a strategic shift that would have a major effect on the Company's operations or financial results and as such, the disposals were
not classified as discontinued operations in the accompanying consolidated financial statements.
Note 19 – SUBSEQUENT EVENTS
On March 27, 2023, Qingdao Chihong Information
Consulting Co., Ltd. ("Qingdao Chihong") was incorporated in Qingdao City, PRC.
F-
34