v3.25.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 20  — RELATED PARTY TRANSACTIONS

 

(a) Names and relationship of related parties:

 

    Existing relationship with the Company
Rich Fame International Limited   One of the directors is Mr. Yee Kit Chan. 100% fully owned by Ms. Jingyu Hao, the spouse of one of the directors, Mr. Yee Kit Chan.
Top Star E-Commerce Logistics Limited   Director and shareholder is Ms. Sau Fong Leung, the spouse of one of the shareholders, Mr. Kin Yin Alfred Kwong.
Business Great Global Supply Chain Limited   Sole director and sole shareholder is one of the shareholders, Mr. Kin Yin Alfred Kwong. It became a wholly owned subsidiary of the Company via share exchange arrangement on March 16, 2022.
Profit Sail International Express (SZX) Company Limited   One of the shareholders and sole director is Ms. Jingyu Hao, the spouse of one of the directors, Mr. Yee Kit Chan.
Granful Solutions Limited   One of the directors is Ms. Sau Fong Leung, the spouse of one of the shareholders, Mr. Kin Yin Alfred Kwong.

 

(b) Summary of balances with related parties:

 

       As of December 31, 
Amounts due to related parties:  Notes   2023   2024 
Profit Sail International Express (SZX) Company Limited   (1)   $153,317   $3,056 
Rich Fame International Limited   (1)    111,090    104,231 
Top Star E-Commerce Logistics Limited   (1)    205,127    
—
 
Total       $469,534   $107,287 

 

       As of December 31, 
Amount due from a related party, net:  Notes   2023   2024 
Profit Sail International Express (SZX) Company Limited   (2)   $117,327   $
—
 
Total       $117,327   $
—
 

Notes:

 

(1)Advances from related parties to the Company and general and administrative expenses paid by the related parties on behalf of the Company. Amounts due to related parties are non-trade, unsecured, non-interest bearing and repayable on demand.
(2)General and administrative expenses paid by the Company on behalf of the related parties. Amount due from a related party is non-trade, unsecured, non-interest bearing and repayable on demand.
  
 Amount due from a related party is presented net of allowance for expected credit losses:

 

   As of December 31, 
   2023   2024 
Amount due from a related party  $118,275   $
—
 
Less: allowance for expected credit losses   (948)   
—
 
Total  $117,327   $
—
 

 

The movement of allowance for expected credit losses is as follows:

 

   As of December 31, 
   2023   2024 
Balance at beginning of the year  $
—
   $(948)
(Provision) Reversal   (948)   948 
Total  $(948)  $
—
 

(c) Summary of related party transactions:

 

A summary of trade transactions with related parties for years ended December 31, 2022, 2023 and 2024 are listed below:

 

   For the years ended December 31, 
Services fee income from related parties:  2022   2023   2024 
Granful Solutions Limited  $558,427   $—   $— 
Profit Sail International Express (SZX) Company Limited   525,372    346,705    260,046 
Top Star E-Commerce Logistics Limited   5,615    
—
    
—
 
Total  $1,089,414   $346,705   $260,046 

 

The amounts for the years ended December 31, 2022, 2023 and 2024 represented services fee income from provision of logistics and freight handling services based on a mutually agreed price for each transaction.

 

   For the years ended December 31, 
Freight charges and other handling charges charged by related parties:  2022   2023   2024 
Profit Sail International Express (SZX) Company Limited  $3,267,048   $706,432   $1,699,760 
Granful Solutions Limited   694    
—
    
—
 
Top Star E-Commerce Logistics Limited   2,169,132    4,316,065    492,052 
Total  $5,436,874   $5,022,497   $2,191,830 

 

The amounts for the years ended December 31, 2022, 2023 and 2024 represented charges paid for freight and other handling services based on a mutually agreed price for each transaction.

 

       For the years ended December 31, 
Other income – management fee income from related parties:  Notes   2022   2023   2024 
Profit Sail International Express (SZX) Company Limited   (1)  $25,962   $25,961   $17,103 
Business Great Global Supply Chain Limited   (2)   7,269    
—
    
—
 
Total       $33,231   $25,961   $17,103 

Notes:

 

(1)

The amounts for the years ended December 31, 2022, 2023 and 2024 represented services fee income from provision of management services based on the contractual terms of the related agreements. On April 15, 2019, the Company entered into several management fee agreements with Profit Sail International Express (SZX) Company Limited for the provision of management services including administrative, handling and office services, effective from May 1, 2019. The agreements shall remain valid until further notice by both parties. The annual management fee was based on the Company’s workload devoted to the related party.

(2)

The amount for the years ended December 31, 2022 represented services fee income from provision of management services based on the contractual terms of the related agreement. On January 1, 2018, the Company entered into a management fee agreement with Business Great Global Supply Chain Limited for the provision of management services including administrative, handling and office services, effective from January 1, 2018. The agreement shall remain valid until further notice by both parties. The annual management fee was based on the Company’s workload devoted to Business Great Global Supply Chain Limited. Business Great Global Supply Chain Limited became a wholly owned subsidiary via a share exchange arrangement on March 16, 2022. The balance was eliminated after acquisition in audited consolidated balance sheets on December 31, 2023 and 2024.

   For the years ended
December 31,		 
IT maintenance fee charged by a related party:  2022   2023   2024 
Rich Fame International Limited  $340,128   $359,090   $109,231 
Total  $340,128   $359,090   $109,231 

 

The amounts for the years ended December 31, 2022, 2023 and 2024 represented charges paid for information technology services based on the contractual terms of the related agreement.

 

On January 1, 2020, the Company entered into an agreement with Rich Fame International Limited for the provision of information technology services including maintenance, consultancy and hosting services. The agreement was effective for a 12-month term from January 1, 2020 to December 31, 2020 and continuing thereafter on an annual or a half-year basis. The annual information technology services fee was equivalent to approximately $340,128, $359,090 and $109,231 for the years ended December 31, 2022, 2023 and 2024, respectively.