v3.26.1
Other Receivables, Net
 12 Months Ended
Dec. 31, 2025
Other Receivables, Net [Abstract]  
OTHER RECEIVABLES, NET
5. OTHER RECEIVABLES, NET

 

Other receivables consist of the following:

 

   December 31,
2025		   December 31,
2024		 
Deposit to non-trade suppliers  $77,175   $71,326 
Loan receivable   18,553    18,553 
Prepayments   427,824    222,022 
Allowance for credit losses   (213,159)   (161,620)
Total other receivables, net  $310,393   $150,281 
           
Movements of allowance for credit losses   are as follows:          
           
Beginning balance  $161,620   $162,894 
Addition   51,178    2,014 
Reverse   -    (3,288)
Foreign exchange translation   361    - 
Ending balance  $

213,159

   $161,620 

 

Prepayments primarily represent advances to suppliers in connection with commodity trading transactions. These balances are generally expected to be settled through delivery of goods.

 

Other receivables include loans to third parties and employees, refundable deposits, and other advances. Certain balances relate to non-operating or financing-type arrangements and are subject to separate recoverability assessment.

 

Credit risk and aging

 

A portion of the Company’s other receivables and prepayments has been outstanding for extended periods. Long-aged balances are subject to increased uncertainty regarding recoverability, particularly where:

 

●no recent settlement activity exists;

 

●contractual terms have expired or are unclear; or

 

●counterparties are experiencing financial difficulty.

 

Management performs specific assessments for such balances and records allowances where appropriate.

 

During the year ended December 31, 2025, the Company recognized impairment losses of approximately US$51.2 million on other receivables.  

 

These impairments primarily relate to:

 

●long-outstanding advances to suppliers;

 

●balances where delivery of goods or services is uncertain or no longer expected; and

 

●receivables where recovery is uncertain due to counterparty-specific factors.

 

Significant judgment and estimation uncertainty

 

The determination of recoverability involves significant judgment, particularly for:

 

●long-aged balances;

 

●advances subject to extended settlement periods or non-standard contractual arrangements;

 

●loan-type arrangements with third parties; and

 

●balances subject to dispute or restructuring.

 

Changes in assumptions or future collection outcomes could result in material adjustments to the carrying amounts.