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Related Party Transactions and Balances

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions and Balances

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Note 12 — Related party transactions and balances

Purchases from a related party – consisted of the following:

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Nature of

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Name of Related Party

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Relationship

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transactions

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2024

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2023

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2024

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2023

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USD

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USD

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USD

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USD

Focal Capital Holding Limited

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An entity under common control

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Purchase

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$

1,177,582

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$

2,121,969

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$

2,754,804

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$

4,969,730

Foremost Worldwide Co., Ltd

An entity under common control

Purchase

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2,401,118

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427,516

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3,954,057

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1,080,745

Rizhao Foremost Woodwork Manufacturing Co., Ltd.

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An entity under common control

Purchase

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7,045

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—

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24,069

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—

Foremost Home Inc.

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An entity under common control

Purchase

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—

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206,143

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—

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206,143

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$

3,585,745

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$

2,755,628

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$

6,732,930

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$

6,256,618

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The ending balance of such transactions as of June 30, 2024 and December 31, 2023, are listed of the following:

Prepayments — related parties

​	​	​	​	​	​	​
​	​	As of		​	As of
​		June 30,			December 31,
Name of Related Party	​	2024		​	2023
​	​	USD		​	USD
​	​	​		​	​
Focal Capital Holding Limited	​	$	11,658,181	​	$	6,658,498
Rizhao Foremost Woodwork Manufacturing Co., Ltd.	​	​	15,917	​	​	9,181
​	​	$	11,674,098	​	$	6,667,679

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Accounts Payables — related parties

​	​	​	​	​	​	​
​	​	As of		​	As of
​		June 30,			December 31,
Name of Related Party	​	2024		​	2023
​	​	USD		​	USD
​	​	​		​	​
Foremost Worldwide Co., Ltd	​	$	1,016,263	​	$	735,308
​	​	$	1,016,263	​	$	735,308

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Shared Service and Miscellaneous expenses – related party

FGI Industries, Inc. is party to the FHI Shared Services Agreement with FHI. Total amounts provided to FHI under the FHI Share Services Agreement were $187,050 and $232,367 for the three months ended June 30, 2024 and 2023, respectively, and $362,962 and $476,981 for the six months ended June 30, 2024 and 2023, respectively, which were booked under selling and distribution expenses and administration expenses. 

FGI is party to the Worldwide Shared Services Agreement with Foremost Worldwide. Total amounts provided from Foremost Worldwide under the Worldwide Shared Services Agreement were $60,682 and $75,898 for the three months ended June 30, 2024 and 2023, respectively, and $134,596 and $145,242 for the six months ended June 30, 2024 and 2023, respectively.

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Other Payables (Receivables) — related parties

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​	​	​	​	​	​	As of		​	As of
​		​		Nature of		June 30,			December 31,
Name of Related Party	​	Relationship	​	transactions	​	2024		​	2023
​	​	​	​	​	​	USD		​	USD
​	​	​	​	​	​	​		​	​
Foremost Home Inc. (“FHI”)	​	An entity under common control	​	Shared services and Miscellaneous expenses	​	​	1,853,015	​	​	1,183,612
Foremost Worldwide Co., Ltd	​	An entity under common control	​	Shared services and Miscellaneous expenses	​	​	266,176	​	​	(251,008)
Focal Capital Holding Limited	​	An entity under common control	​	Shared services and Miscellaneous expenses	​	​	12,756	​	​	—
F.P.Z. Furniture (Cambodia) Co., Ltd	​	An entity under common control	​	Shared services and Miscellaneous expenses	​	​	(124,938)	​	​	—
​	​	​	​	​	​	$	2,007,009	​	$	932,604

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Loan guarantee by a related party

Liang Chou Chen holds approximately 49.89% of the voting control of Foremost, the Company’s majority shareholder and is a guarantor of the loans under the Credit Agreement and under the CTBC Credit Line. See Note 8 for details.

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- References

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- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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