16. RELATED
PARTY TRANSACTIONS AND BALANCES
Related parties are entities with common direct
or indirect shareholders and/or directors. Parties are considered to be related if one party has the ability to control the other party
or exercise significant influence over the other party in making financial and operating decisions.
Some of the Company’s transactions and arrangements
are with related parties and the effect of these on the basis determined between parties is reflected in these consolidated financial
statements. The balances are unsecured, interest-free and repayable on demand unless otherwise stated.
The following transactions took place
between the Company and its related parties during the years on the consolidated statements of operations and comprehensive
income/(loss):
| Schedule of related party transactions |
| |
| | |
| | |
| |
| |
| |
December 31, | |
| |
Notes | |
2023 | | |
2024 | | |
2025 | |
| |
| |
US$’000 | | |
US$’000 | | |
US$’000 | |
| Interest income receivable from a related party |
(i) | |
| 88 | | |
| 384 | | |
| 384 | |
| Directors’ remuneration |
(ii) | |
| 150 | | |
| 155 | | |
| 156 | |
| Director’s fee of the subsidiary |
(iii) | |
| 125 | | |
| 117 | | |
| 125 | |
| Directors’ fees of the Company |
(iv) | |
| 9 | | |
| 54 | | |
| 54 | |
| Related party remuneration |
(v) | |
| 138 | | |
| 139 | | |
| 131 | |
| Rental expense paid to a related party |
(vi) | |
| 40 | | |
| 40 | | |
| 41 | |
| Overseas office expense payable to a related party |
(vii) | |
| 312 | | |
| 315 | | |
| 307 | |
| Interest payable to a related party |
(viii) | |
| 75 | | |
| 110 | | |
| 110 | |
Notes:
| (i) | Mr. Tan Choo Kiat, spouse of the Company’s director, Ms. Li Peng Leck, is the director and shareholder
of Carfax Commodities (Asia) Pte. Ltd. The interest income is included in “Other income”. |
| (ii) | Remuneration for Ms. Leck Li Peng and Ms. Abbie Jillia Lee, the directors of the Company is included in
“General and administrative expenses”. |
| (iii) | Directors’ fee paid to Mr. Siua Chern Yong, a director of a subsidiary is included in “General
and administrative expenses”. |
| (iv) | Directors’ fees paid to Mr. Khor Khie Liam Alex, Mr. Long Jia Kwang and Mr. Rui Wang Alan, the independent
directors of the Company are included in “General and administrative expenses”. |
| (v) | Remuneration paid to Mr. Tan Choo Kiat is included in “General and administrative expenses”. |
| (vi) | Rental expense paid to Mr. Tan Choo Kiat is included in “General and administrative expenses”. |
| (vii) | Mr. Tan Choo Kiat is the director and shareholder of Davis Commodities (Thailand) Co. Ltd. The oversea
office expense to the related party is included in “General and administrative expenses”. |
| (viii) | Interest expense to Mr. Tan Choo Kiat is included in “interest expense”. |
| (ix) | Mr. Tan Choo Kiat is the director and shareholder of Mai Wei Xiamen Trading Co. Ltd. The sales to the
related party is included in “Revenue”. |
The following table presents the related parties balances recorded on the
Company’s consolidated balance sheets as of December 31, 2024 and 2025.
| | |
| |
| | |
| |
| | |
| |
December 31, | |
| | |
Notes | |
2024 | | |
2025 | |
| | |
| |
US$’000 | | |
US$’000 | |
| Mr. Tan Choo Kiat | |
(i) | |
| (1,096 | ) | |
| (1,096 | ) |
| Maxautoway Credit Pte Ltd | |
(ii) | |
| (453 | ) | |
| (349 | ) |
| Lek Yak Heen | |
(iii) | |
| – | | |
| (1,000 | ) |
| Davis Commodities (Thailand) Co Ltd | |
(iv) | |
| (92 | ) | |
| (51 | ) |
| Carfax Commodities (Asia) Pte Ltd | |
(v) | |
| 6,291 | | |
| 6,675 | |
| Mai Wei (Xiamen) Trading Co Ltd | |
(vi) | |
| 409 | | |
| 1,808 | |
| Maxwill International Sdn Bhd | |
(vii) | |
| 30 | | |
| 30 | |
| (i) | The balance represents a loan from Mr. Tan Choo Kiat, is unsecured, with an interest rate of 10% per annum and no fixed term of repayment
and presented as “Amount due to a related party’. |
| (ii) | Mr. Tan Choo Kiat is the director and shareholder of Maxautoway Credit Pte Ltd. The balance represents advance from the related party
which is unsecured and non-interest bearing. The balance as of December 31, 2024 and 2025 are repayable on demand and repayable no later
than December 31, 2026, respectively, and included in “Amount due to related parties”. |
| (iii) | Lek Yak Heen is considered as a family member of the Company’s director, Ms. Leck Li Peng. The
balance represents advance from him which is unsecured, non-interest bearing, repayable no later than December 31, 2026 and included
in “Amount due to related parties”. |
| (iv) | Mr. Tan Choo Kiat is the director and shareholder of Davis Commodities (Thailand) Co. Ltd. The balance represents advance from the
related party for operations and included in “Amount due to related parties”. |
| (v) | The balance due by Carfax Commodities (Asia) Pte Ltd represents convertible loan with compounded interest to accrue at the rate prescribed
by the Inland Revenue Authority of Singapore (See Note 7). |
| (vi) | Mr. Tan Choo Kiat is the director and shareholder of Mai Wei Xiamen Trading Co. Ltd. The balance due from the related party is included
in “Accounts receivable, net”. |
| (vii) | Mr. Tan Choo Kiat is the director and shareholder of Maxwill International Sdn Bhd. The balance represents refundable deposit paid
to the related party and included in “Amount due from related parties”. |
For the years ended December 31, 2023, 2024 and 2025, Mr. Tan Choo Kiat
also provided personal guarantees for all the Company’s secured fixed rate bank loans (See Note 9).
|