v3.25.2
Related Party Transactions
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
RELTED PARTY TRANSACTIONS

17. RELTED PARTY TRANSACTIONS

 

(a)Related parties

 

The principal related parties with which the Group had transactions during the years presented are as follows:

 

Names of related parties   Relationship with The Group
Zengqiang Lin   The principal stockholder and director of the Company
Xinhongbo   An entity controlled by the principal stockholder of the Company
Fuqing Changhong Agricultural Products Supply Chain Co. Ltd. (“Changhong”)   An entity controlled by the principal stockholder of the Company
Zhenzhu Lin   The principal stockholder of the Company

Xindefu

   Non-controlling shareholder of Hongfu Food
Xiuhua Zhou   Owner of Xindefu
Fujian Xiangbing Logistics Co., Ltd. (“Xiangbing”)   Common controller with Xindefu
Huaqiang Lin   Father of Zengqiang Lin
(b)Other than disclosed elsewhere, the Group had the following significant related party transactions for the three months ended March 31, 2025 and the fiscal years ended December 31, 2024 and 2023:

  

   For the 
   three months ended
March 31,		   Fiscal year ended
December 31,		 
   2025   2024   2023 
   US$   US$   US$ 
Loans from related parties:            
-Zhenzhu Lin   41,821    1,683,718    
-
 
-Zengqiang Lin   4,115,573    5,685,707    2,900,289 
-Xiuhua Zhou   
-
    1,557,007    
-
 
    4,115,573    8,926,432    2,900,289 
                
Repayment of loan from a related party:               
-Zengqiang Lin   
-
    
-
    (3,199,390)
                
Repayments to related parties:               
-Zhenzhu Lin   (38,506)   (1,644,203)   
-
 
-Zengqiang Lin   (7,481,645)   (2,405,036)   
-
 
-Xiuhua Zhou   
-
    (1,557,007)   
-
 
    (7,520,151)   (5,606,246)   
-
 
                
Capital contribution to Hongchang Food:               
-Zengqiang Lin   
-
    
-
    41,241,108 
                
Refunds from a related party               
-Xinhongbo   
-
    58,368    
-
 
-Changhong   
-
    139    
-
 
-Xindefu   38,506    
-
    
-
 
    38,506    58,507    
-
 
                
Sales of goods:               
-Xindefu   
-
    1,576    
-
 
                
Procurement of goods:               
-Xindefu   
-
    229,453    
-
 
                
Procurement of service:               
-Xindefu   
-
    272,647    
-
 
-Fujian Xiangbing Logistics Co., Ltd.   
-
    112,236    
-
 
    
-
    384,883    
-
 
(c)The Group had the following related party balances as of March 31, 2025 and December 31, 2024 and 2023:

 

   As of 
   March 31,   December 31, 
   2025   2024   2023 
   US$   US$   US$ 
Advance to suppliers-related party            
-Xinhongbo   
-
    
-
    59,324 
Amount due from a related party               
-Xindefu   
-
    38,360    
-
 
-Changhong   
-
    
-
    141 
                
Amounts due to related parties:               
-Zhenzhu Lin - current portion   42,500    38,953    
-
 
-Zengqiang Lin   3,513,737    3,493,486    6,682,959 
-Zengqiang Lin - current portion   2,907,575    6,250,487    
-
 
    6,463,812    9,782,926    6,682,959 

 

All balances with the related parties as of March 31, 2025 and December 31, 2024 and 2023 were unsecured and interest-free and had no fixed terms of repayments.

 

On April 1, 2023, Hongchang Food entered into an interest-free loan agreement with Zengqiang Lin to obtain aggregate maximum loans of up to US$8.5 million) for the period from April 1, 2023 to March 31, 2026.

 

On March 1, 2024, Hongchang Food entered into a loan agreement with Zengqiang Lin, bearing an annual interest rate of 3%, to obtain aggregate maximum loans of up to RMB 50.0 million (US$6.9 million) for the period from March 1, 2024, to March 1, 2027.

 

On May 16, 2024, Hongfu Food entered into an interest-free loan agreement with Zhenzhu Lin to obtain aggregate maximum loans of up to US$4.3 million for the period from May 16, 2024 to May 15, 2027.

 

On September 19, 2024, Hongchang Food entered into an interest-free loan agreement with Zengqiang Lin to obtain aggregate maximum loans of up to US$8.5 million for the period from September 20, 2024 to September 20, 2027. On March 21, 2025, they entered into a supplementary agreement, pursuant to which Zengqiang Lin promised that he would not ask Hongchang Food to pay back an amount of US$3,493,486 of the loan until March 31, 2026. 

 

On December 15, 2024, Hongchang Supply Chain entered into an interest-free loan agreement with Zengqiang Lin to obtain aggregate maximum loans of up to RMB5.0 million (US$0.7 million) for the period from December 15, 2024 to December 15, 2027.

 

On January 25, 2025, Hongchang Supply Chain entered into an interest-free loan agreement with Huaqiang Lin to obtain aggregate maximum loans of up to US$0.7 million for the period from January 25, 2025 to January 25, 2028. As of March 31, 2025, the loan was repaid.

On January 26, 2025, Hongchang Food entered into a mortgage contract with Fujian Fuqing Huitong Rural Commercial Bank Co., Ltd., pledging the buildings and land use right as collateral to secure the loans obtained by Xinhongbo. The carrying value of the buildings was US$27,106,219, and the carrying value of the land use right was US$1,763,099.