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Related Party Transactions
 6 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

12. RELATED PARTY TRANSACTIONS

 

a) The table below sets forth the major related parties and their relationships with the Company:

 

Name of related parties and Relationship with the Company
-Tuanfang Liu is the Co-Chief Executive Officer and Chairman of the Company.
-Jiangyan Zhu is the wife of Tuanfang Liu and a director of the Company.
-Eigate (Hong Kong) Technology Co., Limited (“Eigate”) is a wholly-owned subsidiary of Aspire Global.
-Aspire Global is a company controlled by the Chairman of the Company.
-Shenzhen Yi Jia, a Chinese company that is 95% owned by the Company’s Chairman and 5% by the Chairman’s cousin.

 

b)Tuanfang Liu is also Aspire Global’s chief executive officer and a director of both the Company and Aspire Global, and his wife, Jiangyan Zhu, is also a director of both companies. As of December 31, 2023, Mr. Liu and Ms. Zhu beneficially own 66.5% and 5.0%, respectively, of the outstanding shares of Aspire Global. As of December 31, 2023, Mr. Liu and Ms. Zhu beneficially own 61.3% and 4.6%, respectively, of the outstanding shares of the Company.

 

c)The balances in due to related parties at June 30, 2023 and December 31, 2023 represent amounts due to Shenzhen Yi Jia of $710,910 and $0, respectively. The balances are all non-interest bearing, unsecured, have no due date and are repayable on demand.

 

d)

For both three and six month periods ended December 31, 2022 and 2023, the majority of the Company’s tobacco and cannabis vaping products were purchased from Shenzhen Yi Jia. As of June 30, 2023 and December 31, 2023, the accounts payable - related party was $51,698,588 and $48,999,001, respectively, which was payable to Shenzhen Yi Jia. There is no fixed payment terms regarding these balances and they are classified as current liabilities. For the three months ended December 31, 2022 and 2023, the purchases from Shenzhen Yi Jia were $27,055,791, and $25,464,800, respectively. For the six months ended December 31, 2022 and 2023, the purchases from Shenzhen Yi Jia were $49,360,346 and $48,983,213, respectively.