critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . we continually evaluate our estimates , including those related to bad debts , allowance for obsolete inventory , and the classification of short and long-term inventory , the useful life of property and equipment and land use rights and yew forest assets , recovery of long-lived assets , write-down in value of inventory , and the valuation of equity transactions . we base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues , expenses , assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect our significant judgments and estimates used in the preparation of the financial statements . variable interest entities pursuant to asc 810 and related subtopics related to the consolidation of variable interest entities , we are required to include in our consolidated financial statements the financial statements of vies . the accounting standards require a vie to be consolidated by a company if that company is subject to the risk of loss for the vie or is entitled to receive the vie 's residual returns . vies are those entities in which we , through contractual arrangements , bear the risk of , and enjoy the rewards normally associated with ownership of the entity , and therefore we are the primary beneficiary of the entity . hds is considered a vie , and we are the primary beneficiary . we entered into agreements with hds pursuant to which we shall receive 100 % of hds 's net income . in accordance with these agreements , hds shall pay consulting fees equal to 100 % of its net income to our wholly-owned subsidiary , jsj . jsj shall supply the technology and administrative services needed to service the hds . the accounts of hds are consolidated in the accompanying financial statements . as a vie , hds ' sales are included in our total sales , its income from operations is consolidated with ours , and our net income includes all of hds ' net income , and their assets and liabilities are included in our consolidated balance sheets . the vies do not have any non-controlling interest and , accordingly , we did not subtract any net income in calculating the net income attributable to us . because of the contractual arrangements , we have pecuniary interest in hds that requires consolidation of hds ' financial statements with our financial statements . as required by asc 810-10 , we perform a qualitative assessment to determine whether we are the primary beneficiary of hds which is identified as a vie of us . a quality assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity 's activities including terms of the contracts entered into by the entity , ownership interests issued by the entity and the parties involved in the design of the entity . the significant terms of the agreements between us and hds are discussed above in the “ corporate structure and recapitalization - second restructure ” section . our assessment on the involvement with hds reveals that we have the absolute power to direct the most significant activities that impact the economic performance of hds . jsj , our wholly own subsidiary , is obligated to absorb the risk of loss from hds activities and is entitled to receive hds 's expected residual returns . in addition , hds ' shareholders have pledged their equity interest in hds to jsj , irrevocably granted jsj an exclusive option to purchase , to the extent permitted under prc law , all or part of the equity interests in hds and agreed to entrust all the rights to exercise their voting power to the person ( s ) appointed by jsj . under the accounting guidance , we are deemed to be the primary beneficiary of hds and the results of hds ' operation are consolidated in our consolidated financial statements for financial reporting purposes . 28 accordingly , as a vie , hds ' sales are included in our total sales , its income from operations is consolidated with our income from operations and our net income includes all of hds ' net income . all the equity ( net assets ) and profits ( losses ) of hds are attributed to us . therefore , no non-controlling interest in hds is presented in our consolidated financial statements . as we do not have any non-controlling interest and , accordingly , did not subtract any net income in calculating the net income attributable to us . because of the contractual arrangements , ybp has a pecuniary interest in hds that requires consolidation of hds ' financial statements with those of ours . additionally , pursuant to asc 805 , as ybp and hds are under the common control of the hds shareholders , the second restructure was accounted for in a manner similar to a pooling of interests . story_separator_special_tag the standard may be adopted as of any date from the beginning of an interim period that includes or is subsequent to march 12 , 2020 through december 31 , 2022. the company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures . currency exchange rates our reporting currency is the u.s. dollar , and the functional currency of our operating subsidiaries and vie is the rmb . all of our sales are denominated in rmb . as a result , changes in the relative values of u.s. dollars and rmb affect our reported levels of revenues and profitability as the results of our operations are translated into u.s. dollars for reporting purposes . in particular , fluctuations in currency exchange rates could have a significant impact on our financial stability due to a mismatch among various foreign currency-denominated sales and costs . fluctuations in exchange rates between the u.s. dollar and rmb affect our gross and net profit margins and could result in foreign exchange and operating losses . 31 our exposure to foreign exchange risk primarily relates to currency gains or losses resulting from timing differences between signing of sales contracts and settling of these contracts . furthermore , we translate monetary assets and liabilities denominated in other currencies into rmb , the functional currency of our operating subsidiaries . our results of operations and cash flow are translated at average exchange rates during the period , and assets and liabilities are translated at the unified exchange rate at the end of the period . translation adjustments resulting from this process are included in accumulated other comprehensive income in our statement of shareholders ' equity . we have not used any forward contracts , currency options or borrowings to hedge our exposure to foreign currency exchange risk . we can not predict the impact of future exchange rate fluctuations on our results of operations and may incur net foreign currency losses in the future . our financial statements are expressed in u.s. dollars , which is the functional currency of our parent company . the functional currency of our operating subsidiaries and affiliates is rmb . to the extent we hold assets denominated in u.s. dollars , any appreciation of the rmb against the u.s. dollar could result in a charge in our statement of operations and a reduction in the value of our u.s. dollar denominated assets . on the other hand , a decline in the value of rmb against the u.s. dollar could reduce the u.s. dollar equivalent amounts of our financial results . results of operations the following tables set forth key components of our results of operations for the periods indicated , in dollars . the discussion following the table is based on these results : replace_table_token_1_th 32 year ended december 31 , 2020 compared to year ended december 31 , 2019 revenues for the year ended december 31 , 2020 , we had total revenues of $ 27,307,687 , as compared to $ 27,883,649 for the year ended december 31 , 2019 , a decrease of $ 575,962 or 2.07 % . the decrease in total revenue was attributable to the decrease in revenues from extracts , partially offset by increase in revenues from sales of tcm raw materials . total revenue is summarized as follows : replace_table_token_2_th for the year ended december 31 , 2020 compared to december 31 , 2019 , the increase in revenue of tcm raw material was mainly attributable to the increase in demand from our related party , yew pharmaceutical . the decrease in revenue of extracts was mainly attributable to the increase in demand of pine needle extract , complex taxus cuspidate extract , and composite northeast yew extract . cost of revenues for the year ended december 31 , 2020 , cost of revenues amounted to $ 23,780,672 as compared to $ 27,109,518 for the year ended december 31 , 2019 , a decrease of $ 3,328,846 or 12.28 % . for the year ended december 31 , 2020 , cost of revenues accounted for 87.08 % of total revenues compared to 97.22 % of total revenues for the year ended december 31 , 2019. cost of revenues by product categories is as follows : replace_table_token_3_th the decrease in our cost of revenues for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 was primarily a result of the decrease in costs of revenue in extracts , partially offset by increases in tcm raw materials . 33 gross profit for the year ended december 31 , 2020 , gross profit was $ 3,527,015 as compared to $ 774,131 for the year ended december 31 , 2019 , representing gross profit margins of 12.92 % and 2.78 % , respectively . gross profit margins by categories are as follows : replace_table_token_4_th the increase in our overall gross profit margin for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 was primarily attributable to the higher gross margin yields of tcm raw materials and extracts . the increase in our gross margin percentage related to the sale of tcm raw materials for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 , was primarily attributable to the fact that conversion rate from yew tree into yew foliage for the year ended december 31 , 2020 was higher than it for the year ended december 31 , 2019. operating expenses for the year ended december 31 , 2020 , operating expenses amounted to $ 958,316 , as compared to $ ( 237,388 ) for the year ended december 31 , 2019 , an increase of $ 1,195,704 or 503.69 % . the increase was mainly due to the fact that the company had $ 30,658 bad debt recovery as of december 31 , 2020 compared with

liquidity and capital resources liquidity is the ability of a company to generate funds to support its current and future operations , satisfy its obligations and otherwise operate on an ongoing basis . at december 31 , 2020 and 2019 , we had cash balances of $ 563,792 and $ 742,294 , respectively . these funds were primarily located in various financial institutions located in china . our primary uses of cash have been for the purchase of yew trees , land use rights and yew forest assets . additionally , we use cash for employee compensation and working capital . our working capital decreased by $ 1,725,779 to $ ( 535,726 ) at december 31 , 2020 , from working capital of $ 1,190,053 at december 31 , 2019 . 35 for the year ended december 31 , 2020 , net cash flow provided by operating activities was $ 17,340,086 , as compared to $ 11,953,657 for the year ended december 31 , 2019 , an increase of $ 5,386,429. because the exchange rate conversion is different for the balance sheet and the statements of cash flows , the changes in assets and liabilities reflected on the statements of cash flows are not necessarily identical with the comparable changes reflected on the balance sheets .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources liquidity is the ability of a company to generate funds to support its current and future operations , satisfy its obligations and otherwise operate on an ongoing basis . at december 31 , 2020 and 2019 , we had cash balances of $ 563,792 and $ 742,294 , respectively . these funds were primarily located in various financial institutions located in china . our primary uses of cash have been for the purchase of yew trees , land use rights and yew forest assets . additionally , we use cash for employee compensation and working capital . our working capital decreased by $ 1,725,779 to $ ( 535,726 ) at december 31 , 2020 , from working capital of $ 1,190,053 at december 31 , 2019 . 35 for the year ended december 31 , 2020 , net cash flow provided by operating activities was $ 17,340,086 , as compared to $ 11,953,657 for the year ended december 31 , 2019 , an increase of $ 5,386,429. because the exchange rate conversion is different for the balance sheet and the statements of cash flows , the changes in assets and liabilities reflected on the statements of cash flows are not necessarily identical with the comparable changes reflected on the balance sheets .
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 Suspicious Activity Report : critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . we continually evaluate our estimates , including those related to bad debts , allowance for obsolete inventory , and the classification of short and long-term inventory , the useful life of property and equipment and land use rights and yew forest assets , recovery of long-lived assets , write-down in value of inventory , and the valuation of equity transactions . we base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues , expenses , assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect our significant judgments and estimates used in the preparation of the financial statements . variable interest entities pursuant to asc 810 and related subtopics related to the consolidation of variable interest entities , we are required to include in our consolidated financial statements the financial statements of vies . the accounting standards require a vie to be consolidated by a company if that company is subject to the risk of loss for the vie or is entitled to receive the vie 's residual returns . vies are those entities in which we , through contractual arrangements , bear the risk of , and enjoy the rewards normally associated with ownership of the entity , and therefore we are the primary beneficiary of the entity . hds is considered a vie , and we are the primary beneficiary . we entered into agreements with hds pursuant to which we shall receive 100 % of hds 's net income . in accordance with these agreements , hds shall pay consulting fees equal to 100 % of its net income to our wholly-owned subsidiary , jsj . jsj shall supply the technology and administrative services needed to service the hds . the accounts of hds are consolidated in the accompanying financial statements . as a vie , hds ' sales are included in our total sales , its income from operations is consolidated with ours , and our net income includes all of hds ' net income , and their assets and liabilities are included in our consolidated balance sheets . the vies do not have any non-controlling interest and , accordingly , we did not subtract any net income in calculating the net income attributable to us . because of the contractual arrangements , we have pecuniary interest in hds that requires consolidation of hds ' financial statements with our financial statements . as required by asc 810-10 , we perform a qualitative assessment to determine whether we are the primary beneficiary of hds which is identified as a vie of us . a quality assessment begins with an understanding of the nature of the risks in the entity as well as the nature of the entity 's activities including terms of the contracts entered into by the entity , ownership interests issued by the entity and the parties involved in the design of the entity . the significant terms of the agreements between us and hds are discussed above in the “ corporate structure and recapitalization - second restructure ” section . our assessment on the involvement with hds reveals that we have the absolute power to direct the most significant activities that impact the economic performance of hds . jsj , our wholly own subsidiary , is obligated to absorb the risk of loss from hds activities and is entitled to receive hds 's expected residual returns . in addition , hds ' shareholders have pledged their equity interest in hds to jsj , irrevocably granted jsj an exclusive option to purchase , to the extent permitted under prc law , all or part of the equity interests in hds and agreed to entrust all the rights to exercise their voting power to the person ( s ) appointed by jsj . under the accounting guidance , we are deemed to be the primary beneficiary of hds and the results of hds ' operation are consolidated in our consolidated financial statements for financial reporting purposes . 28 accordingly , as a vie , hds ' sales are included in our total sales , its income from operations is consolidated with our income from operations and our net income includes all of hds ' net income . all the equity ( net assets ) and profits ( losses ) of hds are attributed to us . therefore , no non-controlling interest in hds is presented in our consolidated financial statements . as we do not have any non-controlling interest and , accordingly , did not subtract any net income in calculating the net income attributable to us . because of the contractual arrangements , ybp has a pecuniary interest in hds that requires consolidation of hds ' financial statements with those of ours . additionally , pursuant to asc 805 , as ybp and hds are under the common control of the hds shareholders , the second restructure was accounted for in a manner similar to a pooling of interests . story_separator_special_tag the standard may be adopted as of any date from the beginning of an interim period that includes or is subsequent to march 12 , 2020 through december 31 , 2022. the company is currently evaluating the effects of the standard on our consolidated financial statements and related disclosures . currency exchange rates our reporting currency is the u.s. dollar , and the functional currency of our operating subsidiaries and vie is the rmb . all of our sales are denominated in rmb . as a result , changes in the relative values of u.s. dollars and rmb affect our reported levels of revenues and profitability as the results of our operations are translated into u.s. dollars for reporting purposes . in particular , fluctuations in currency exchange rates could have a significant impact on our financial stability due to a mismatch among various foreign currency-denominated sales and costs . fluctuations in exchange rates between the u.s. dollar and rmb affect our gross and net profit margins and could result in foreign exchange and operating losses . 31 our exposure to foreign exchange risk primarily relates to currency gains or losses resulting from timing differences between signing of sales contracts and settling of these contracts . furthermore , we translate monetary assets and liabilities denominated in other currencies into rmb , the functional currency of our operating subsidiaries . our results of operations and cash flow are translated at average exchange rates during the period , and assets and liabilities are translated at the unified exchange rate at the end of the period . translation adjustments resulting from this process are included in accumulated other comprehensive income in our statement of shareholders ' equity . we have not used any forward contracts , currency options or borrowings to hedge our exposure to foreign currency exchange risk . we can not predict the impact of future exchange rate fluctuations on our results of operations and may incur net foreign currency losses in the future . our financial statements are expressed in u.s. dollars , which is the functional currency of our parent company . the functional currency of our operating subsidiaries and affiliates is rmb . to the extent we hold assets denominated in u.s. dollars , any appreciation of the rmb against the u.s. dollar could result in a charge in our statement of operations and a reduction in the value of our u.s. dollar denominated assets . on the other hand , a decline in the value of rmb against the u.s. dollar could reduce the u.s. dollar equivalent amounts of our financial results . results of operations the following tables set forth key components of our results of operations for the periods indicated , in dollars . the discussion following the table is based on these results : replace_table_token_1_th 32 year ended december 31 , 2020 compared to year ended december 31 , 2019 revenues for the year ended december 31 , 2020 , we had total revenues of $ 27,307,687 , as compared to $ 27,883,649 for the year ended december 31 , 2019 , a decrease of $ 575,962 or 2.07 % . the decrease in total revenue was attributable to the decrease in revenues from extracts , partially offset by increase in revenues from sales of tcm raw materials . total revenue is summarized as follows : replace_table_token_2_th for the year ended december 31 , 2020 compared to december 31 , 2019 , the increase in revenue of tcm raw material was mainly attributable to the increase in demand from our related party , yew pharmaceutical . the decrease in revenue of extracts was mainly attributable to the increase in demand of pine needle extract , complex taxus cuspidate extract , and composite northeast yew extract . cost of revenues for the year ended december 31 , 2020 , cost of revenues amounted to $ 23,780,672 as compared to $ 27,109,518 for the year ended december 31 , 2019 , a decrease of $ 3,328,846 or 12.28 % . for the year ended december 31 , 2020 , cost of revenues accounted for 87.08 % of total revenues compared to 97.22 % of total revenues for the year ended december 31 , 2019. cost of revenues by product categories is as follows : replace_table_token_3_th the decrease in our cost of revenues for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 was primarily a result of the decrease in costs of revenue in extracts , partially offset by increases in tcm raw materials . 33 gross profit for the year ended december 31 , 2020 , gross profit was $ 3,527,015 as compared to $ 774,131 for the year ended december 31 , 2019 , representing gross profit margins of 12.92 % and 2.78 % , respectively . gross profit margins by categories are as follows : replace_table_token_4_th the increase in our overall gross profit margin for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 was primarily attributable to the higher gross margin yields of tcm raw materials and extracts . the increase in our gross margin percentage related to the sale of tcm raw materials for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 , was primarily attributable to the fact that conversion rate from yew tree into yew foliage for the year ended december 31 , 2020 was higher than it for the year ended december 31 , 2019. operating expenses for the year ended december 31 , 2020 , operating expenses amounted to $ 958,316 , as compared to $ ( 237,388 ) for the year ended december 31 , 2019 , an increase of $ 1,195,704 or 503.69 % . the increase was mainly due to the fact that the company had $ 30,658 bad debt recovery as of december 31 , 2020 compared with

