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RELATED PARTY BALANCES AND TRANSACTIONS
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Related Party Transactions [Abstract]    
RELATED PARTY BALANCES AND TRANSACTIONS

13. RELATED PARTY BALANCES AND TRANSACTIONS

 

(1) Related parties with transactions and related party relationships

 

Name of Related Party   Relationship to the Company
Hanwu Yang   Shareholder of the Company
Changbin Xia   Shareholder of the Company
Eternal Horizon International Company Limited   As a shareholder of the Company before December 15, 2020
Yanping Guo   Legal representative of Vande
Mishan City Shenmi Dazhong Management Consulting Partnership (“ShenMi DaZhong”)   Shareholder of the Company
Haiyan Qin, Hui Wang and other 11 individuals   Shareholders of ShenMi DaZhong
Shan’xi Nongbei New Agriculture Technology Co., Ltd and other 8 companies   Associated with shareholders of ShenMi DaZhong

 

 

MEIWU TECHNOLOGY COMPANY LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

13. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)

 

(2) Due to related parties

 

  

June 30,

2024

  

December 31,

2023

 
         
Eternal Horizon International Company Limited(1)  $2,200,194   $2,257,397 
Changbin Xia(2)  $1,378,147    1,410,621 
Other   236,841    244,588 
Total  $3,815,182   $3,912,606 

 

(1) During IPO, the underwriters purchased 999,910 ordinary shares from a selling shareholder for $4,999,550. The gross proceeds were wired into the Company’s account and was invested in loan receivable together with net proceeds from IPO. The Company paid $2.6 million to the underwriters for the year ended December 31, 2022.

 

(2) The Company borrowed loans as working capital from one shareholder Changbin Xia as well as the legal representative of Vande. The balance due to related parties is interest-free and due on demand.

 

 

MEIWU TECHNOLOGY COMPANY LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

13. RELATED PARTY BALANCES AND TRANSACTIONS

 

(1) Related parties with transactions and related party relationships

 

Name of Related Party   Relationship to the Company
Hanwu Yang   Shareholder of the Company
Changbin Xia   Shareholder of the Company
Eternal Horizon International Company Limited   As a shareholder of the Company before December 15, 2020
Yanping Guo   Legal representative of Vande
Mishan City Shenmi Dazhong Management Consulting Partnership (“ShenMi DaZhong”)   Shareholder of the Company
Haiyan Qin, Hui Wang and other 11 individuals   Shareholders of ShenMi DaZhong
Shan’xi Nongbei New Agriculture Technology Co., Ltd and other 8 companies   Associated with shareholders of ShenMi DaZhong

 

 

MEIWU TECHNOLOGY COMPANY LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

13. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)

 

(2) Due to related parties

 

  

December 31,

2023

  

December 31,

2022

 
         
Eternal Horizon International Company Limited(1)  $2,257,397   $2,323,475 
Changbin Xia(2)  $1,410,621    1,337,164 
Other   244,588    19,078 
Total  $3,912,606   $3,679,717 

 

(1) During IPO, the underwriters purchased 999,910 ordinary shares from a selling shareholder for $4,999,550. The gross proceeds were wired into the Company’s account and was invested in loan receivable together with net proceeds from IPO. The Company paid $2.6 million to the underwriters for the year ended December 31, 2022.

 

(2) The Company borrowed loans as working capital from one shareholder Changbin Xia as well as the legal representative of Vande. The balance due to related parties is interest-free and due on demand.

 

During the years ended December 31, 2023, 2022 and 2021, the Company purchased $18,310, $29,190 and $42,692 food products from related parties. As of December 31, 2023 and 2022, the account payable to these related parties is $15,627 and $14,647, respectively. For the years ended December 31, 2023, 2022 and 2021, sales to related parties is $21,215, $56,625 and $151,477, respectively.

 

The Company’s shareholder, ShenMi DaZhong, and ShenMi DaZhong’s limited partners have received sales commissions of nil, $36,793 and $27,932 during the years ended December 31, 2023, 2022 and 2021.