| RELATED PARTY TRANSACTIONS AND BALANCES |
11.
RELATED PARTY TRANSACTIONS AND BALANCES
The
following is a list of related parties which the Company has transactions with during the six months ended March 31, 2024 and 2025:
| Name | | Relationship | | (a) Shuang Wu | | The Legal Representative of Jiangsu New Energy | | (b) Yan Fang | | Non-controlling shareholder of Cenbird E-Motorcycle | | (c) Jianhui Ye | | Chief Executive Officer and a significant shareholder of the Company | | (d) Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. | | Yan Fang, a non-controlling shareholder of Cenbird E-motorcycle, whose family member serves as director of Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. | | (e) Jiangsu Xinzhongtian Suye Co., Ltd. | | Yuxing Liu, the spouse of Yan Fang, serves as the executive of Jiangsu Xinzhongtian Suye Co., Ltd. | | (f) Shenzhen Star Asset Management Co., Ltd. | | General Partner of Xinyu Star Assets Management No.1 Investing Partnership and Xinyu Star Assets Management No.2 Investing Partnership, which are two significant shareholders of the Company | | (g) Shenzhen Star Cycling Network Technology Co., Ltd. | | Equity investments with 42% shareholding | | (h) Nanjing Mingfeng Technology Co., Ltd. | | Equity investments with 30% shareholding | | (i) Shandong Xingneng’an New Energy Technology Co., Ltd. | | Equity investments with 25% shareholding | | (j) Jiangsu Youdi Technology Co., Ltd. | | Equity investments with 29% shareholding | | (k) Shanghai Mingli New Energy Technology Co., Ltd. | | Equity investments with 40% shareholding |
Amounts
due from related parties
As
of September 30, 2024 and March 31, 2025, amounts due from related parties consisted of the following:
| | |
As of
September 30,
2024 | | |
As of
March 31,
2025 | |
| | |
| | |
(Unaudited) | |
| Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (d) (1) | |
$ | 3,726,245 | | |
$ | 2,505,112 | |
| Shandong Xingneng’an New Energy Technology Co., Ltd. (i) (1)&(2) | |
| 2,738,913 | | |
| 2,119,433 | |
| Shenzhen Star Cycling Network Technology Co., Ltd. (g) (2) | |
| 767,625 | | |
| 754,527 | |
| Jiangsu Youdi Technology Co., Ltd. (j)(2) | |
| 316,832 | | |
| 318,160 | |
| Jianhui Ye (c)(3) | |
| 679 | | |
| 389 | |
| Total amount due from related parties, current | |
| 7,550,294 | | |
| 5,697,621 | |
| Less: amount due from related parties, current, of discontinued operations | |
| (4,578,844 | ) | |
| (3,328,447 | ) |
| Amount due from related parties, current, of continuing operations | |
| 2,971,450 | | |
| 2,369,174 | |
| Shanghai Mingli New Energy Technology Co., Ltd. (k) (4) | |
| 4,132,467 | | |
| 6,565,231 | |
| Amounts due from a related party, non-current | |
$ | 4,132,467 | | |
$ | 6,565,231 | |
| (1) | The
balance mainly is prepayments for purchasing battery cells and e-bicycles. |
| (2) | The
balance mainly is loans with annual interest as stated in contracts to associates. The annual interest rates of the loans to Shandong
Xingneng’an New Energy Technology Co., Ltd., Shenzhen Star Cycling Network Technology Co., Ltd., and Jiangsu Youdi Technology Co.,
Ltd. are 4% 5% and 5%, respectively. |
| (3) | The
balance mainly is advances made to the management for the Company’s daily operational purposes. As of September 30, 2024, Changzhou
Hengmao, a subsidiary of VIE, had an outstanding balance of $13,820 payable to Jianhui Ye for the Company’s daily operational purposes. |
| (4) | The
balance is an interest-free loan with a maturity date of September 29, 2026. |
Amounts
due to related parties
As
of September 30, 2024 and March 31, 2025, amounts due to related parties consisted of the following:
| | |
As of
September 30,
2023 | | |
As of
March 31,
2024 | |
| | |
| | |
(Unaudited) | |
| Jiangsu Xinzhongtian Suye Co., Ltd. (e) (1)&(2) | |
$ | 418,201 | | |
$ | 1,170,455 | |
| Shuang Wu (a) (2)&(3) | |
| 1,127,877 | | |
| 886,638 | |
| Yan Fang (b) (2) | |
| 19,183 | | |
| 24,063 | |
| Shenzhen Star Asset Management Co., Ltd. (f) (2) | |
| 19,926 | | |
| 19,896 | |
| Nanjing Mingfeng Technology Co., Ltd. (h) (4) | |
| 494 | | |
| 478 | |
| Total amount due to related parties | |
| 1,585,681 | | |
| 2,101,530 | |
| Less: amount due to related parties, of discontinued operations | |
| (279,175 | ) | |
| (1,195,892 | ) |
| Amount due to related parties, of continuing operations | |
$ | 1,306,506 | | |
$ | 905,638 | |
| (1) | The
balance mainly was the payable for purchasing e-bicycles. |
| (2) | The
balance mainly was interest-free loans from related parties. |
| (3) | The
balance mainly was the expenses paid by related parties on behalf of the Company for daily operation. |
| (4) | The
balance mainly was payable for payment received on behalf of a related party. |
Related
party transactions
For
the six months ended March 31, 2024 and 2025, the Company had the following material related party transactions:
| Related Parties | |
Nature | |
Six months ended
March 31, | |
| | |
| |
2024 | | |
2025 | |
| | |
| |
(Unaudited) | | |
(Unaudited) | |
| Inventory purchased from related parties | |
| |
| | |
| |
| Jiangsu Xinzhongtian Suye Co., Ltd. (e) | |
Purchase of e-bicycles | |
$ | 267,919 | | |
$ | 1,323,097 | |
| Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. (d) | |
Purchase of e-bicycles | |
| 639,086 | | |
| 966,506 | |
| Total inventory purchased from related parties | |
| |
| 907,005 | | |
| 2,289,603 | |
| Less: inventory purchased from related parties from discontinued operation | |
| |
| (907,005 | ) | |
| (2,289,603 | ) |
| Inventory purchased from continuing operations | |
| |
$ | - | | |
$ | - | |
| | |
| |
| | | |
| | |
| Loans to related parties | |
| |
| | | |
| | |
| Shanghai Mingli New Energy Technology Co., Ltd. (k) | |
Loan to a related party | |
$ | - | | |
$ | 2,904,243 | |
| Shanghai Mingli New Energy Technology Co., Ltd. | |
Imputed interest on related party loan | |
| - | | |
| 84,342 | |
| Shandong Xingneng’an New Energy Technology Co., Ltd. (i) | |
Loan to a related party | |
| 2,775,311 | | |
| 138,297 | |
| Shandong Xingneng’an New Energy Technology Co., Ltd. (i) | |
Interest receivable from a related party | |
| 116,457 | | |
| 35,811 | |
| Shenzhen Star Cycling Network Technology Co., Ltd. (g) | |
Interest receivable from a related party | |
| 12,280 | | |
| 12,238 | |
| Jiangsu Youdi Technology Co., Ltd. (j) | |
Interest receivable from a related party | |
| 10,612 | | |
| 10,607 | |
| Jiangsu Youdi Technology Co., Ltd. (j) | |
Loan to a related party | |
| 3,654 | | |
| 1,203 | |
| Total loans to related parties | |
| |
| 2,918,314 | | |
| 3,186,741 | |
| Less: loans to related parties from discontinued operation | |
| |
| (12,280 | ) | |
| (12,238 | ) |
| Loans to related parties from continuing operations | |
| |
$ | 2,906,034 | | |
$ | 3,174,503 | |
| | |
| |
| | | |
| | |
| Collection of loan to a related party | |
| |
| | | |
| | |
| Shandong Xingneng’an New Energy Technology Co., Ltd. (i) | |
Collection of loan to a related party | |
$ | - | | |
$ | 691,486 | |
| Total collection of loan to a related party | |
| |
$ | - | | |
$ | 691,486 | |
| | |
| |
| | | |
| | |
| Loans from related parties | |
| |
| | | |
| | |
| Jiangsu Xinzhongtian Suye Co., Ltd. (e) | |
Interest-free loan from a related party | |
$ | 538,410 | | |
$ | 584,085 | |
| Shuang Wu (a) | |
Interest-free loan from a related party | |
| 80,000 | | |
| 389,893 | |
| Yan Fang (b) | |
Interest-free loan from a related party | |
| 35,552 | | |
| 5,532 | |
| Total loans from related parties | |
| |
| 653,962 | | |
| 979,510 | |
| Less: loans from related parties from discontinued operation | |
| |
| (573,962 | ) | |
| (589,617 | ) |
| Loans from related parties from continuing operations | |
| |
$ | 80,000 | | |
$ | 389,893 | |
| | |
| |
| | | |
| | |
| Repayment of loans from related parties | |
| |
| | | |
| | |
| Shuang Wu (a) | |
Repayment of interest-free loans from a related party | |
$ | - | | |
$ | 622,338 | |
| Jiangsu Xinzhongtian Suye Co., Ltd. (e) | |
Repayment of interest-free loans from a related party | |
| 378,830 | | |
| 553,189 | |
| Yan Fang (b | |
Repayment of interest-free loans from a related party | |
| 81,872 | | |
| - | |
| Total repayment of loans from related parties | |
| |
| 460,702 | | |
| 1,175,527 | |
| Less: repayment of loans from related parties from discontinued operation | |
| |
| (460,702 | ) | |
| (553,189 | ) |
| Repayment of loans from related parties from continuing operations | |
| |
$ | - | | |
$ | 622,338 | |
| | |
| |
| | | |
| | |
| Others | |
| |
| | | |
| | |
| Shuang Wu (a) | |
Reimbursement for expenses paid for daily operation on behalf of the Company | |
$ | 69 | | |
$ | - | |
| | |
| |
$ | 69 | | |
$ | - | |
|