v3.23.3
Related Party Balance and Transactions (Tables)
3 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Schedule of Outstanding Amounts due from Related Parties As of September 30, 2023 and June 30, 2023, the outstanding amounts due from related parties consist of the following:
   September 30,   June 30, 
   2023   2023 
Zhejiang Jinbang Fuel Energy Co., Ltd (1)  $408,634   $458,607 
Shanghai Baoyin Industrial Co., Ltd (2)   1,064,805    1,068,014 
LSM Trading Ltd (3)   570,000    570,000 
Rich Trading Co. Ltd (4)   103,424    103,424 
Lei Cao (5)   11,752    13,166 
Less: allowance for doubtful accounts   (2,132,500)   (2,138,276)
Total  $26,115   $74,935 
(1) As of September 30, 2023 and June 30, 2023, the Company advanced $408,634 and  $458,607 to Zhejiang Jinbang Fuel Energy Co., Ltd (“Zhejiang Jinbang”) which is 30% owned by Mr. Wang Qinggang, CEO and legal representative of Trans Pacific Shanghai. The advance is non-interest bearing and due on demand. The Company provided allowance of $382,519 and $383,672 for the balance of the receivable as of September 30, 2023 and June 30, 2023, and the allowance changes as a result of changes in exchange rates.

 

(2) As of September 30, 2023 and June 30, 2023, the Company advanced approximately $1.1 million and $1.3 million to Shanghai Baoyin Industrial Co., Ltd. which is 30% owned by Qinggang Wang, CEO and legal representative of Trans Pacific Logistic Shanghai Ltd. The advance is non-interest bearing and due on demand. The Company provided full credit losses for the balance of the receivable.
(3) As of September 30, 2023 and June 30, 2023, the Company advanced $570,000 to LSM Trading Ltd, which is 40% owned by the Company. The advance is non-interest bearing and due on demand. The Company provided full credit losses for the balance of the receivable.
(4) On November 16, 2021, the Company entered into a project cooperation agreement with Rich Trading Co. Ltd USA (“Rich Trading”) for the trading of computer equipment. Rich Trading’s bank account was controlled by now-terminated members of the Company’s management and was, at the time, an undisclosed related party. According to the agreement, the Company was to invest $4.5 million in the trading business operated by Rich Trading and the Company would be entitled to 90% of profits generated by the trading business. The Company advanced $3,303,424 for this project, of which $3,200,000 has been returned to the Company. The Company provided allowance of $103,424 for the balance of the receivable as of September 30, 2023 and June 30, 2023.
(5) The amount represents business advance to Mr. Lei Cao, the former Chairman of the Board. During the three months ended September 30, 2023. Mr. Lei Cao paid back in $10,000, the receivables balance due from Lei Cao decreased accordingly. The impairment of $10,000 recognized in the prior year was reversed in this reporting period.