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RELATED PARTY TRANSACTIONS
 3 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 13 - RELATED PARTY TRANSACTIONS

 

Due from Related Parties

 

The Company has made temporary advances to certain stockholders of the Company and to other entities that are either owned by family members of those stockholders or to other entities that the Company has investments in. Those advances are due on demand and non-interest bearing.

 

As of September 30, 2022 and June 30, 2022, the outstanding amounts due from related parties consisted of the following:

 

  

September 30,

2022

  

June 30,

2022

 
         
Zhao Min  $1,327   $1,410 
Shanghai Gaojing Private Fund Management (a.)   404,902    429,998 
Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. (b.)   1,431,710    1,719,568 
Zhongjian (Qingdao) International Logistics Development Co., Ltd. (c.)   4,436,545    4,644,011 
Total due from related parties  $6,274,484   $6,794,987 

 

a. The Company owns 32% equity interest in this company. (Note 11)
   
b. On September 17, 2021, the Company entered into a loan agreement with Zhongjian Yijia Health Technology (Qingdao) Co., Ltd. to with an amount of US$1,642,355 (RMB 11.0 million) for its working capital for one year, with a maturity date of September 16, 2022. The loans bore a fixed annual interest rate of 6.0% per annum. The Company recorded interest receivable amounted to US$77,213 as of June 30, 2022. Upon maturity date, the Company signed a loan extension agreement with this related party to extend the loan repayment by installments, among which, US$210,887 (RMB 1.5 million) will be paid by September 30, 2022, US$702,955 (RMB 5.0 million) will be paid by December 31, 2022, and the remaining loan and unpaid interest will be paid by June 30, 2023. During the three months ended September 30, 2022, the Company received payment of US$210,887 (RMB 1.5 million) from this related party. The total outstanding balance including the principal and interest was amounted to US$1,431,710 as of September 30, 2022. Interest income were US$24,301 and US$ nil for three months ended September 30, 2022 and 2021, respectively.
   
c. On October 28, 2021, the Company entered into a loan agreement with Zhongjian (Qingdao) International Logistics Development Co., Ltd. to with an amount of US$4,464,219 (RMB 29.9 million) for its working capital for one year, with a maturity date of October 27, 2022. The loans bore a fixed annual interest rate of 6.0% per annum. Upon maturity date, the Company signed a loan extension agreement with this related party to extend the loan for another year with the new maturity date of October 27, 2023. The total outstanding balance including the principal and interest were amounted to US$4,436,545 and US$4,644,011 as of September 30, 2022 and June 30, 2022, respectively. Interest income were US$66,055 and US$ nil for three months ended September 30, 2022 and 2021, respectively.

 

 

Due to Related Parties

 

As of September 30, 2022 and June 30, 2022, the Company had related party payables of US$2,480,548 and US$2,798,800, respectively, mainly due to the principal stockholders or certain relatives of the stockholders of the Company who lend funds for the Company’s operations. The payables are unsecured, non-interest bearing, and due on demand.

 

  

September 30,

2022

  

June 30,

2022

 
         
Wu Yang  $-   $95,630 
Wang Sai   120,081    96,081 
Zhou Guocong   2,027    - 
Lin Baolin   1,968    - 
Zhao Min (a.)   431,238    562,528 
Zhou Shunfang (b.)   1,925,234    2,044,561 
Total due to related parties  $2,480,548   $2,798,800 

 

a. During the year ended June 30, 2022, the Company entered into a series of loan agreements with Zhao Min to borrow an aggregated amount of US$365,797 (RMB 2.45 million) for the Company’s working capital needs for three months, with a maturity date range between July 2022 to September 2022. The loans bore a fixed annual interest rate of 5.0% per annum. Upon maturity date, the Company signed loan extension agreements with Zhao Min to extend the loan period for another nine months, with the same interest rate of 5.0% per annum. During the three months ended September 30, 2022, the Company borrowed additional loan of US$28,118 (RMB 0.2 million), resulted a total outstanding balance including principal and the interest of US$380,331 as of September 30, 2022.
   
b. During the year ended June 30, 2022, the Company entered into a series of loan agreements with Zhou Shunfang to borrow an aggregated amount of US$1,269,092 (RMB 8.5 million) for the Company’s working capital needs for less than one year, with a maturity date range on March 31, 2022. The loans bore a fixed annual interest rate of 20.0% per annum. All loans were fully repaid by the Company upon their maturity.

 

Interest expenses on loans due to related parties were US$4,802 and US$ nil for the three months ended September 30, 2022 and 2021, respectively.