v3.26.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 21 – RELATED PARTY TRANSACTIONS

 

(a) Names and Relationship of Related Parties:

 

  Existing Relationship with the Company
Cenntro Holding Limited Under common control of Peter Zuguang Wang
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) Under common control of Peter Zuguang Wang
Peter Zuguang Wang Chairman of the Board of Directors of the Company
Xinchang County Jiuxin Investment Management Partnership (LP) Under control of Mr. Mengxing He, the General Manager and one of the directors of Zhejiang Zhongchai/Non-controlling interest of Zhejiang Zhongchai
Raymond Z. Wang Chief Executive Officer and President
Cenntro Inc. Under common control of Peter Zuguang Wang
Cenntro Enterprise Limited Under common control of Peter Zuguang Wang

 

(b) Summary of Balances with Related Parties:

 

   As of 
   March 31,
2026		   December 31,
2025		 
Due to related parties:        
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership)1  $
-
   $94,442 
Cenntro Holding Limited2   1,341,627    1,341,627 
Peter Zuguang Wang3   2,392,961    2,392,961 
Xinchang County Jiuxin Investment Management Partnership (LP)4   
-
    1,429,981 
Raymond Z. Wang5   16,000    16,000 
Total  $3,750,588   $5,275,011 

 

All balances of due to related parties as of March 31, 2026 and December 31, 2025 were unsecured, interest-free and had no fixed terms of repayments.

 

The balance of due to related parties as of March 31, 2026 and December 31, 2025 consisted of:

 

  1 Temporary borrowings from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership);

 

  2 Total dividend payment of $7.6 million declared by Zhongchai Holding to Cenntro Holding Limited. As of December 31, 2019, the balance was $1.34 million, and no further payments had been made since then;

 

  3 Payable to Peter Zuguang Wang for capital reduction due to the dissolution of Shanghai Hengyu Business Management Consulting Co., Ltd. on July 10, 2023;

  

  4 Total dividend payment of $1.43 million declared by Zhejiang Zhongchai to Xinchang County Jiuxin Investment Management Partnership (LP). As of March 31, 2026, the balance was nil; and

 

  5 Temporary borrowings from Raymond Z. Wang.
   As of 
   March 31,   December 31, 
   2026   2025 
Due from related parties-current:        
Cenntro Inc.   490,000    840,000 
Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership)   
-
    245,017 
Cenntro Enterprise Limited   21,400    21,400 
Total  $511,400   $1,106,417 

 

The balance of due from related parties as of March 31, 2026 and December 31, 2025 consisted of:

 

Due from Cenntro Inc. was $0.49 million and $0.84 million as of March 31, 2026 and December 31, 2025, respectively. The amount of due from this related party represents a loan with an annual interest rate of 7.5% and matured on April 14, 2026. Pursuant to a supplementary agreement between the parties, the period before April 15, 2025 was an interest-free period for the advanced funds. On April 14, 2026, the Company (through its subsidiary, Zhongchai Holding (Hong Kong) Limited) and Cenntro Inc. entered into an Extension Agreement (the “Extension Agreement”), pursuant to which the maturity date of the loan was extended from April 14, 2026 to October 14, 2026. As of the date of the Extension Agreement, the outstanding principal balance was approximately $0.55 million. During the extension period, interest accrues at 10% per annum (increased from the original 7.5%), payable no later than the extended maturity date.

 

Due from Zhuhai Hengzhong Industrial Investment Fund (Limited Partnership) was nil and $0.25 million as of March 31, 2026 and December 31, 2025, respectively. The amount of due from this related party represents a loan with annual interest rate of 4.785%.

 

Due from Cenntro Enterprise limited was $0.02 million and $0.02 million as of March 31, 2026 and December 31, 2025, respectively. The amount of due from this related party represents expenses paid on behalf of the related party.

 

(b) Summary of Related Party dividend payment:

 

A summary of dividend payment declared by Zhejiang Zhongchai to related parties for the three months ended March 31, 2026 and 2025 are listed below:

 

   For the three months
ended March 31,		 
   2026   2025 
Dividend payment to related parties:        
Xinchang County Jiuxin Investment Management Partnership (LP)   1,444,711    188,222