Related Party Balances and Transactions |
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| Related Party Balances and Transactions | Note 15 – Related Party Balances and Transactions
The relationship of related parties is summarized as follows:
(i) Effective December 19, 2024, Mr. Zhengyu Wang resigned as Chairman of the Board of Directors and Ms. Yefang Zhang served as Chairwoman. Mr. Zhengyu Wang remains a controlling shareholder of the Group after his resignation.
Due from a related party
The balances due from related party were as follows:
As of December 31, 2024, the Group had advanced funds to Mr. Zhengyu Wang for expanding business, such funds have been collected as of this annual report filing date.
Due to related parties
The balances due to related parties were as follows:
As of December 31, 2023, the Group borrowed $730,658 from Mr. Zhengyu Wang and his affiliates to obtain working capital.
Mr. Wangfeng Yan, and his affiliates, also made advances to the Group. The balance due to Mr. Wangfeng Yan and his affiliates was $11,576 and $142,065 as of December 31, 2024 and 2023, respectively.
All balances due to related parties were unsecured, interest-free and due upon demand. Lease arrangement with related party
On July 13, 2021, Tantech Bamboo signed a lease agreement with Zhejiang Nongmi Food Co., Ltd. (“Nongmi Food”) to lease part of its production facilities of approximately 1,180 square meters to Nongmi Food for ten years with monthly rent of approximately $2,100 (RMB15,338). For the years ended December 31, 2024, 2023 and 2022, the Group recorded rent income of nil, $64,231 and $23,001, respectively from Nongmi Food.
On July 13, 2021, Tantech Bamboo signed a lease agreement with Zhejiang Nongmi Biotechnology Co., Ltd. (“Nongmi Biotechnology”) to lease part of its production facilities of approximately 1,914 square meters to Nongmi Biotechnology for ten years with monthly rent of approximately $5,300 (RMB38,280). For the years ended December 31,2024, 2023 and 2022, the Group recorded rent income of nil, $28,149 and $66,038, respectively from Nongmi Biotechnology.
On March 1, 2023, Tantech Bamboo signed a lease agreement with Zhejiang Nongmi Ecological Technology Co., Ltd (“Nongmi Ecological”) to lease part of its production facilities of approximately 479 square meters to Nongmi Ecological for five years with monthly rent of approximately $1,700 (RMB11,975). For the years ended December 31,2024, 2023 and 2022, the Group recorded rent income of nil, $18,937 and nil, respectively from Nongmi Ecological.
Guaranty provided by related parties
Mr. Zhengyu Wang, Ms. Yefang Zhang, Ms. Aihong Wang, Forasen Group and LJC provided guarantees to the Group’s bank loans (See Note 12). |
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