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Note 12 - Related party balances and transactions

12 Months Ended

Dec. 31, 2024

Note 12 – Related party balances and transactions

The table below sets forth the major related parties which has balances or transactions during the years presented and their relationships with the Company:

Name of related parties	Relationship with the Company
FDT (Qingdao) Intellectual Technology Co., Ltd	Common control under major shareholder
Tungray (Kunshan) Industrial Automation Co., Ltd	Common control under major shareholder
Tungray (Kunshan) Robot Intelligent Technology Co., Ltd	Common control under major shareholder
Qingdao Tungray Technology Development Co., Ltd.	Common control under major shareholder
Shanghai Tongrui Investment Management Co., Ltd.	Common control under major shareholder
Hefei CAS Dihuge Automation Co. Ltd	10.27% ownership interest investee
Kunshan Tungray Intelligent Technology Co., Ltd.	Common control under major shareholder
Qingdao Tungray Biology Technology Co., Ltd.	Common control under major shareholder
Shanghai Tongrui Industrial Automation Equipment Co., Ltd	Common control under major shareholder
Wanjun Yao	Major shareholder/Chairman, Chief Executive Officer and Director
Jingan Tang	Director/Senior Manager of Tungray Industrial Automation Shenzhen
Liling Du	CFO of Tungray Singapore
Gang Wang	Shareholder of Tungray Singapore and Tung Resource
Demin Han	General Manager
Lei Yao	Chief Technology Officer
Mingxing Gao	General Manager

Related party balances

Account Receivable – related parties

Name of Related Party	As of December 31, 2024		As of December 31, 2023

FDT (Qingdao) Intellectual Technology Co., Ltd	$	30,092	$	19,372
Tungray (Kunshan) Industrial Automation Co., Ltd		210,811		202,679
Tungray (Kunshan) Robot Intelligent Technology Co., Ltd		51,444		52,889
Kunshan Tungray Intelligent Technology Co., Ltd.		35,209		44,649
Total	$	327,556	$	319,589

Account payable, related parties

Name of Related Party	As of December 31, 2024		As of December 31, 2023

FDT (Qingdao) Intellectual Technology Co., Ltd.	$	`13,700`	$	`365,665`
Qingdao Tungray Technology Development Co., Ltd.		`8,841`		`26,061`
Shanghai Tongrui Industrial Automation Equipment Co., Ltd		`31,510`		`32,395`
Shanghai Tongrui Investment Management Co., Ltd.		`-`		`54,661`
Kunshan Tungray Intelligent Technology Co., Ltd.		`6,346`		`-`
Hefei CAS Dihuge Automation Co., Ltd.		`19,591`		`20,141`
Total	$	`79,988`	$	`498,923`

Other receivables – related parties

Other receivables – related parties are those nontrade receivables arising from transactions between the Company and certain related parties, such as advances made by the Company on behalf of related parties, and advance to related parties. These balances are unsecured and non-interest bearing. Current receivables are due on demand.

Name of Related Party	As of December 31, 2024		As of December 31, 2023
Qingdao Tungray Biology Technology Co., Ltd.	$	`44,377`	$	`23,816`
FDT (Qingdao) Intellectual Technology Co., Ltd		`227,242`		`-`
Du Liling		`48,828`		`-`
Total	$	`320,447`	$	`23,816`

Other payable– related parties

Other payables – related parties are those nontrade payables arising from transactions between the Company and certain related parties, such as advances made by the related party on behalf of the Company, dividend payables and related accrued interest payable on the advances. These balances are unsecured and non-interest bearing. Current payables are due on demand.

Name of Related Party	As of December 31, 2024		As of December 31, 2023
FDT (Qingdao) Intellectual Technology Co., Ltd	$	`39,323`	$	`-`
Tungray (Kunshan) Industrial Automation Co., Ltd.		`-`		`41,853`
Qingdao Tungray Technology Development Co., Ltd.		`18,438`		`-`
Jingan Tang		`280,692`		`277,607`
Liling Du		`-`		`38,216`
Gang Wang		`-`		`54,005`
Demin Han		`-`		`156,455`
Lei Yao		`-`		`2,893`
Mingxing Gao		`-`		`99,837`
Total	$	`338,453`	$	`670,866`

Prepayment-related parties

Name of Related Party	As of December 31, 2024		As of December 31, 2023

Shanghai Tongrui Investment Management Co., Ltd.	$	20,254	$	-
FDT (Qingdao) Intellectual Technology Co., Ltd		776,878		-
Tungray (Kunshan) Robot Intelligent Technology Co., Ltd		14,286		-
Qingdao Tungray Technology Development Co., Ltd.		53,497		55,000
Tungray (Kunshan) Industrial Automation Co., Ltd.		3,003,903		993,745
Provision of doubtful accounts		(53,497)		-
Total	$	3,815,321	$	1,048,745

Movements of provision of doubtful accounts of prepayments-related parties are as follows:

	For the Years Ended December 31,
	2024		2023		2022

Beginning balance	$	-	$	-	$	-
Addition (recovery)		54,267		-		-
Exchange rate effect		(770)		-		-
Ending balance	$	53,497	$	-	$	-

Operating lease liabilities- related parties

The Company entered into three lease agreements as a lessee under which it leased three operation buildings for 5-7 years from two related parties. The Company accounts for the leases in accordance with ASC 842. The Company’s underlying building properties were classified as operating leases, and the related lease liabilities were recorded under operating lease liabilities – related parties (see Note 15).

Name of Related Party	As of December 31, 2024		As of December 31, 2023

Tungray (Qingdao) Technology Development Co., Ltd	$	201,296	$	244,112
Jingan Tang		158,007		218,432
Total		359,303		462,544
Current portion of operating lease liabilities - related parties		(168,551)		(123,094)
Noncurrent portion of operating lease liabilities - related parties	$	190,752	$	339,450

Related party transactions

Revenue from related parties

		For the Years Ended December 31,
Name of Related Party	Nature	2024		2023		2022

Tungray (Kunshan) Industrial Automation Co., Ltd.	Sales of products	$	8,581	$	231,209	$	-
Tungray (Kunshan) Robot Intelligent Technology Co., Ltd.	Sales of products		-		26,245		-
FDT (Qingdao) Intellectual Technology Co., Ltd.	Sales of products		30,761		4,602		66,096
Kunshan Tungray Intelligent Technology Co., Ltd.	Sales of products		-		57,490		-
Kunshan Tongri Intelligent Manufacturing Technology Research Institute Co., Ltd	Sales of products		-		-		1,093
Total		$	39,342	$	319,546	$	67,189

Purchase from related parties

		For the Years Ended December 31,
Name of Related Party	Nature	2024		2023		2022
FDT (Qingdao) Intellectual Technology Co., Ltd.	Products and services purchase	$	12,298	$	961,525	$	41,566
Tungray (Kunshan) Industrial Automation Co., Ltd.	Products and services purchase		12,993		-		-
Total		$	25,291	$	961,525	$	41,566

Non-operating income- related parties

		For the Years Ended December 31,
Name of Related Party	Nature	2024		2023		2022
Qingdao Tungray Biology Technology Co., Ltd	Lease income	$	19,762	$	19,126	$	25,129

Rental expenses- related parties

		For the Years Ended December 31,
Name of Related Party	Nature	2024		2023		2022
Qingdao Tungray Technology Development Co., Ltd	Lease expense	$	59,963	$	66,476	$	51,219
Jingan Tang	Lease expense		71,255		72,411		63,841
Total		$	131,218	$	138,887	$	115,060