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Related party transactions
 12 Months Ended
Dec. 31, 2024
Related party transactions

  

30.Related party transactions

 

  a) Parent and ultimate controlling party

 

The Group is controlled by Jing-Bin Chiang and his family who directly and indirectly owns 55.81% equity interest in the Company as of December 31, 2024 and 2023.

 

  b) Names of related parties and relationship

 

Names of related parties   Relationship with the Company   Notes
YMA Composite Materials (DG) Co., Ltd.
(YMA DG)		 The Company is the shareholder of YMA DG 　 i
Forwell Sports Equipment Co., Ltd.
(Forwell)		   The Company is the shareholder of Forwell   i
Jing-Bin Chiang Key management 　 　
Yu-Ning Chiang   Key management    

 

i)On April 1, 2023, the Group entered into an agreement with the Buyers, selling 80.5% of its equity interests in both YMA DG and Forwell to their respective management teams in a management buyout transaction. As a result, YMA DG and Forwell were excluded from the consolidated financial statements.

   

  c) Significant related party transactions

  

  (a) Service revenue: (shown as “deductions of cost of sales”)

Schedule of service revenue

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Service revenue        
YMA DG  $529,665   $280,231 
Forwell   -    45,139 
Total Service revenue  $529,665   $325,370 

  

Service revenues are based on the prices and terms that would be available to third parties.

 

  (b) Purchase of goods

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Purchase of goods        
YMA DG  $11,505,167   $10,438,247 
Forwell   -    3,989,255 
Total Purchase of goods  $11,505,167   $14,427,502 

 

Goods are purchased based on the prices and terms that would be available to third parties.

 

 

(c)Receivables from related parties:

   As of   As of 
   December 31, 2024   December 31, 2023 
Account receivable          
YMA DG  $5,029,583   $- 

  

Acting on behalf of a related party in purchasing raw materials, the goods are purchased based on the prices and terms that would be available to third parties.

 

 (d)

   As of   As of 
   December 31, 2024   December 31, 2023 
Long-term Receivables from related parties          
YMA DG  $6,068,347   $6,755,968 
Forwell   2,232,376    2,272,936 
Long-term Receivables from related parties  $8,300,723   $9,028,904 

  

On May 14, 2024, the Group signed a supplementary agreement to the equity transfer agreement dated April 1, 2023. The agreement stipulates that the Group has renegotiated with YMA DG and Forwell, agreeing that the debts will be fully repaid in three installments on December 31, 2024, December 31, 2025, and December 31, 2026. The repayment amounts for each installment will be adjusted based on subsequent relevant business transactions. An amount of $526,882 is scheduled for repayment on December 31, 2025, and has therefore been reclassified as a current asset under other receivables from related parties, net.

 

As of December 31, 2024, in accordance with the supplementary agreement, the portions of the debts scheduled to be repaid on December 31, 2025 and December 31, 2026 have been classified as non-current items based on the relevant business transactions.

 

  d) Endorsements and guarantees provided by related parties

 

  (a) The provision of credit lines used from loans guaranteed by key management is as follows:

  

   As of   As of 
   December 31, 2024   December 31, 2023 
Guaranteed by key management          
Short-term loans  $8,999,751   $6,964,927 
Long-term loans   1,037,768    980,200 
Guaranteed by key management  $10,037,519   $7,945,127 

  

All short-term and long-term loans were guaranteed by key management.

 

  (b) Endorsement and guarantee fees are as follows:

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Guarantees fee          
Key management  $-   $471,574 

 

As of December 31, 2023, the endorsements and guarantees fee was charged by key management at a rate of 5% of the total amount of endorsements and guarantees provided. The fee for the year 2023 was collected. However, starting from 2024, the Company will no longer pay any such fees to key management in relation to endorsements and guarantees.

 

  

e)Key management compensation

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
compensation        
Salaries and other short-term employee benefits  $594,278   $566,945 
Post-employment benefits   9,343    9,807 
Share-based payments   131,712    131,712 
Compensation  $735,333   $708,464