| RELATED PARTY BALANCE AND TRANSACTIONS |
Note 19. RELATED PARTY BALANCE AND TRANSACTIONS
Due from related party, net
As of December 31, 2024 and June 30, 2024, the
outstanding amounts due from related parties consist of the following:
| |
|
December 31, |
|
|
June 30, |
|
| |
|
2024 |
|
|
2024 |
|
| Zhejiang Jinbang Fuel Energy Co., Ltd (1) |
|
$ |
381,266 |
|
|
$ |
382,949 |
|
| Shanghai Baoyin Industrial Co., Ltd (2) |
|
|
1,064,606 |
|
|
|
1,066,003 |
|
| LSM Trading Ltd (3) |
|
|
570,000 |
|
|
|
570,000 |
|
| Rich Trading Co. Ltd (4) |
|
|
103,424 |
|
|
|
103,424 |
|
| Less: allowance for credit losses |
|
|
(2,116,008 |
) |
|
|
(2,122,376 |
) |
| Total |
|
$ |
3,288 |
|
|
$ |
- |
|
Movement of allowance for credit losses are as
follows:
| | |
December 31, | | |
June 30, | |
| | |
2024 | | |
2024 | |
| Beginning balance | |
$ | 2,122,376 | | |
$ | 2,138,276 | |
| Exchange rate effect | |
| (6,368 | ) | |
| (15,900 | ) |
| Ending balance | |
$ | 2,116,008 | | |
$ | 2,122,376 | |
| (1) | As
of December 31, 2024 and June 30, 2024, the Company advanced $381,266 and $382,949 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 $381,266 and $382,949 for the balance of the
receivable as of December 31, 2024 and June 30, 2024, and the allowance changes as a result of changes in exchange rates. |
| (2) | As
of December 31, 2024 and June 30, 2024, the Company advanced approximately $1,064,606 and $1,066,003 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 allowance of $1,061,318 and $1,066,003 for the balance of the receivable as of December
31, 2024 and June 30, 2024, and the allowance changes as a result of changes in exchange rates. |
| (3) | As
of December 31, 2024 and June 30, 2024, 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 December 31, 2024 and June 30, 2024. |
Accounts payable- related parties
As of June 30, 2024, the Company had accounts
payable to Rich Trading Co. Ltd of $63,434. And there was no change as of December 31, 2024.
Other payable - related party
As of December 31, 2024 and June 30, 2024, the
Company had accounts payable to Qinggang Wang, CEO and legal representative of Trans Pacific Shanghai, of $25,883 and $25,997. These
payments were made on behalf of the Company for the daily business operational activities.
As of December 31, 2024 and June 30, 2024,
the Company had accounts payable to $321,457 and $199,034 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.
|