v3.26.1
Note 11 - Related party balances and transactions
12 Months Ended
Dec. 31, 2025
Notes  
Note 11 - Related party balances and transactions

Note 11 – Related party balances and transactions

 

The table below sets forth the major related parties which has balances or transactions during the years presented and their relationships with the Company:

 

Name of related parties

Relationship with the Company

FDT (Qingdao) Intellectual Technology Co., Ltd

Common control under major shareholder

Tungray (Kunshan) Industrial Automation Co., Ltd

Common control under major shareholder

Tungray (Kunshan) Robot Intelligent Technology Co., Ltd

Common control under major shareholder

Qingdao Tungray Technology Development Co., Ltd.

Common control under major shareholder

Shanghai Tongrui Investment Management Co., Ltd.

Common control under major shareholder

Hefei CAS Dihuge Automation Co. Ltd

9.70% ownership interest investee

Kunshan Tungray Intelligent Technology Co., Ltd.

Common control under major shareholder

Qingdao Tungray Biology Technology Co., Ltd.

Common control under major shareholder

Shanghai Tongrui Industrial Automation Equipment Co., Ltd

Common control under major shareholder

Wanjun Yao

Major shareholder/Chairman, Chief Executive Officer and Director

Jingan Tang

Director/Senior Manager of Tungray Industrial Automation Shenzhen

Liling Du

CFO of Tungray Singapore and Spouse of the major shareholder

 

Related party balances

 

Account Receivable – related parties

  

Name of Related Party

 

As of

December 31,

2025

 

As of

December 31,

2024

FDT (Qingdao) Intellectual Technology Co., Ltd

 

$

- 

 

$

30,092 

Tungray (Kunshan) Industrial Automation Co., Ltd

 

 

- 

 

 

210,811 

Tungray (Kunshan) Robot Intelligent Technology Co., Ltd

 

 

53,697 

 

 

51,444 

Kunshan Tungray Intelligent Technology Co., Ltd.

 

 

28,510 

 

 

35,209 

Qingdao Tungray Technology Development Co., Ltd.

 

 

276 

 

 

 

Total

 

$

82,483 

 

$

327,556 

  

Account payable, related parties

   

Name of Related Party

 

As of

December 31,

2025

 

As of

December 31,

2024

FDT (Qingdao) Intellectual Technology Co., Ltd.

 

$

10,269 

 

$

13,700 

Qingdao Tungray Technology Development Co., Ltd.

 

 

- 

 

 

8,841 

Shanghai Tongrui Industrial Automation Equipment Co., Ltd

 

 

32,890 

 

 

31,510 

Tungray (Kunshan) Industrial Automation Co., Ltd

 

 

167,087 

 

 

- 

Kunshan Tungray Intelligent Technology Co., Ltd.

 

 

- 

 

 

6,346 

Hefei CAS Dihuge Automation Co., Ltd.

 

 

20,448 

 

 

19,591 

Total

 

$

230,694 

 

$

79,988 

  

Other receivables – related parties

 

Other receivables – related parties are those nontrade receivables arising from transactions between the Company and certain related parties, such as advances made by the Company on behalf of related parties, and advance to related parties. These balances are unsecured and non-interest bearing. Current receivables are due on demand.

 

 

As of

December 31,

2025

 

As of

December 31,

2024

Qingdao Tungray Biology Technology Co., Ltd.

 

$

68,223 

 

$

44,377 

Tungray (Kunshan) Industrial Automation Co., Ltd

 

 

418,446 

 

 

- 

Shanghai Tongrui Investment Management Co., Ltd.

 

 

42,899 

 

 

- 

FDT (Qingdao) Intellectual Technology Co., Ltd

 

 

616,472 

 

 

227,242 

Du Liling

 

 

50,311 

 

 

48,828 

Total

 

$

1,196,351 

 

$

320,447 

 

 

Other payable– related parties

 

Other payables – related parties are those nontrade payables arising from transactions between the Company and certain related parties, such as advances made by the related party on behalf of the Company, dividend payables and related accrued interest payable on the advances. These balances are unsecured and non-interest bearing. Current payables are due on demand.

 

Name of Related Party

 

As of 

December 31,  

2025

 

As of 

December 31,  

2024

FDT (Qingdao) Intellectual Technology Co., Ltd

 

$

- 

 

$

39,323 

Qingdao Tungray Technology Development Co., Ltd.

 

 

81,865 

 

 

18,438 

Jingan Tang

 

 

708,050 

 

 

280,692 

Kunshan Tungray Intelligent Technology Co., Ltd.

 

 

1,972 

 

 

- 

Total

 

$

791,887 

 

$

338,453 

 

Prepayment-related parties

 

Name of Related Party

 

As of 

December 31, 

2025

 

As of 

December 31, 

2024

Shanghai Tongrui Investment Management Co., Ltd.

 

$

36,364 

 

$

20,254  

FDT (Qingdao) Intellectual Technology Co., Ltd

 

 

1,546,641 

 

 

776,878  

Tungray (Kunshan) Robot Intelligent Technology Co., Ltd

 

 

14,912 

 

 

14,286  

Qingdao Tungray Technology Development Co., Ltd.

 

 

- 

 

 

53,497  

Tungray (Kunshan) Industrial Automation Co., Ltd.

 

 

1,406,858 

 

 

3,003,903  

Provision of doubtful accounts

 

 

- 

 

 

(53,497) 

Total

 

$

3,004,775 

 

$

3,815,321  

 

Movements of provision of doubtful accounts of prepayments-related parties are as follows:

 

 

 

For the Years

Ended December 31

 

For the Years

Ended December 31

 

For the Years

Ended December 31

 

 

2025

 

2024

 

2023

Beginning balance

 

$

53,497  

 

$

 

 

$

- 

Addition

 

 

- 

 

 

54,267  

 

 

- 

Write off

 

 

(55,839) 

 

 

 

 

 

- 

Exchange rate effect

 

 

2,342  

 

 

(770) 

 

 

- 

Ending balance

 

$

 

 

$

53,497  

 

$

- 

 

 

Operating lease liabilities- related parties

 

The Company entered into three lease agreements as a lessee under which it leased three operation buildings for 5-7 years from two related parties. The Company accounts for the leases in accordance with ASC 842. The Company’s underlying building properties were classified as operating leases, and the related lease liabilities were recorded under operating lease liabilities – related parties (see Note 15).

 

Name of Related Party

As of

December 31,

2025

 

As of

December 31,

2024

 

 

 

 

Tungray (Qingdao) Technology Development Co., Ltd

$

76,159  

 

$

201,296  

Jingan Tang

 

80,845  

 

 

158,007  

Total

 

157,004  

 

 

359,303  

Current portion of operating lease liabilities - related parties

 

(118,107) 

 

 

(168,551) 

Noncurrent portion of operating lease liabilities - related parties

$

38,897  

 

$

190,752  

 

Related party transactions

 

Revenue from related parties

 

 

 

 

For the Years Ended December 31,

Name of Related Party

Nature

 

2025

 

2024

 

2023

 

 

 

 

 

 

 

 

Tungray (Kunshan) Industrial Automation Co., Ltd.

Sales of products

 

$

207 

 

$

8,581 

 

$

231,209

Tungray (Kunshan) Robot Intelligent Technology Co., Ltd.

Sales of products

 

 

 

 

 

- 

 

 

26,245

FDT (Qingdao) Intellectual Technology Co., Ltd.

Sales of products

 

 

4,642 

 

 

30,761 

 

 

4,602

Kunshan Tungray Intelligent Technology Co., Ltd.

Sales of products

 

 

 

 

 

- 

 

 

57,490

Total

 

 

$

4,849 

 

$

39,342 

 

$

319,546

  

Purchase from related parties

 

 

 

 

For the Years Ended December 31,

Name of Related Party

Nature

 

2025

 

2024

 

2023

FDT (Qingdao) Intellectual Technology Co., Ltd.

Products and services purchase

 

$

21,450 

 

$

12,298 

 

$

961,525

Tungray (Kunshan) Industrial Automation Co., Ltd.

Products and services purchase

 

 

240 

 

 

12,993 

 

 

-

Kunshan Tungray Intelligent Technology Co., Ltd.

 

 

 

16,255 

 

 

- 

 

 

-

Total

 

 

$

37,945 

 

$

25,291 

 

$

961,525

  

 

Non-operating income - related parties

  

 

 

 

 

For the Years Ended December 31,

Name of Related Party

 

Nature

 

2025

 

2024

 

2023

Qingdao Tungray Biology Technology Co., Ltd

 

Lease income

 

$

17,224 

 

$

19,762 

 

$

19,126 

  

Rental expenses- related parties

  

 

 

 

 

For the Years Ended December 31,

Name of Related Party

 

Nature

 

2025

 

2024

 

2023

Qingdao Tungray Technology Development Co., Ltd

 

Lease expense

 

$

56,129 

 

$

59,963 

 

$

66,476 

Jingan Tang

 

Lease expense

 

 

71,532 

 

 

71,255 

 

 

72,411 

Total

 

 

 

$

127,661 

 

$

131,218 

 

$

138,887 

 

Advances to related parties

 

 

 

 

 

For the Years Ended December 31,

Name of Related Party

 

Nature

 

2025

 

2024

 

2023

Qingdao Tungray Biology Technology Co., Ltd.

 

Cash advance

 

$

- 

 

$

21,516 

 

$

23,880 

Shanghai Tongrui Investment Management Co., Ltd.

 

Cash advance

 

 

42,899 

 

 

- 

 

 

78,049 

FDT (Qingdao) Intellectual Technology Co., Ltd.

 

Cash advance

 

 

2,062,629 

 

 

230,513 

 

 

575,836 

Liling Du

 

Cash advance

 

 

- 

 

 

49,920 

 

 

- 

Tungray (Kunshan) Industrial Automation Co., Ltd.

 

Cash advance

 

 

568,187 

 

 

- 

 

 

- 

Total

 

 

 

$

2,673,715 

 

$

301,949 

 

$

677,765 

 

Borrowings from related parties

 

 

 

 

 

For the Years Ended December 31,

Name of Related Party

 

Nature

 

2025

 

2024

 

2023

FDT (Qingdao) Intellectual Technology Co., Ltd.

 

Borrowings

 

$

142,998 

 

$

39,889

 

$

 

Kunshan Tungray Intelligent Technology Co., Ltd.

 

Borrowings

 

 

- 

 

 

 

 

 

1,551,409

Demin Han

 

Borrowings

 

 

- 

 

 

 

 

 

1,708

Lei Yao

 

Borrowings

 

 

- 

 

 

 

 

 

2,843

Jingan Tang

 

Borrowings

 

 

622,042 

 

 

138,971

 

 

31,055

Total

 

 

 

$

765,040 

 

$

178,860

 

$

1,587,015