| RELATED PARTY TRANSACTIONS AND BALANCES |
14. RELATED PARTY TRANSACTIONS AND BALANCES The following is a list of related parties which the Company has transactions with for the years end March 2026 and 2025: | (a) | Mr. Xi Wen, the former CEO and director of the Company. |
| (b) | Ms. Jie Gao, a director of the Company. |
| (c) | Mr. Trent Davis, a former director of the Company. |
| (d) | Ms. Sichun Wang, a former director of the Company. |
| (e) | Ms. Xiang Hu, a shareholder of the Company. |
| (f) | World Trade Technology Limited (“World Trade Technology”), a company where the Company’s Chief Financial Officer serves as Financial Controller. |
| (g) | Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors Ms. Xiaojuan Lin serves as the legal representative and general manager. |
1. Related Party Balances 1) Due from related parties As of March 31, 2026 and 2025, balances due from related parties from the Company’s operations were comprised of the following: | | | March 31, | | | March 31, | | | | | 2026 | | | 2025 | | | Total due from related parties (i)(ii) | | $ | 2,532,049 | | | $ | 2,474,207 | | | Less: Allowance for credit losses(i) | | | (2,517,552 | ) | | | (1,971,045 | ) | | Due from related parties, net | | $ | 14,497 | | | $ | 503,162 | | | Due from a related party, net, current (ii)(iii) | | $ | 14,497 | | | $ | 81,098 | | | Due from a related party, net, non-current(i) | | $ | — | | | $ | 422,064 | | | (i) | As of March 31, 2026 and 2025, balances due from Jinkailong, the Company’s equity investee company, was $0 and $422,064, respectively, net of allowance for credit losses. The balances were a result of Jinkailong’s deconsolidation on March 31, 2022. | Movement of allowance for credit losses due from Jinkailong for the years ended March 31, 2026 and 2025 are as follows: | | | March 31, | | | March 31, | | | | | 2026 | | | 2025 | | | Beginning balance | | $ | 1,971,045 | | | $ | 1,284,203 | | | Addition | | | 422,064 | | | | 697,165 | | | Translation adjustment | | | 124,443 | | | | (10,323 | ) | | Ending balance | | $ | 2,517,552 | | | $ | 1,971,045 | | | (ii) | On January 3, 2024, Xiang Hu, entered into a loan agreement wherein the Company agreed to provide an interest-free special reserve loan of $150,000 for a period of 12 months, which was extended for 12 months since January 3, 2025. As of March 31, 2026 and 2025, the balance was $0 and $81,098, respectively. | | (iii) | As of March 31, 2026, balance of $14,497 represented business cash advances to Jie Gao, which was repaid to the Company in June 2026. | 2) Due to related parties | | | March 31, | | | March 31, | | | | | 2026 | | | 2025 | | | Loan payable to a related party (i) | | $ | — | | | $ | 414 | | | Other payable due to a related party (ii) | | | 578,398 | | | | — | | | Other payable due to a related party (iii) | | | 168,696 | | | | — | | | Total due to related parties | | $ | 747,094 | | | $ | 414 | | | (i) | As of March 31, 2025, the balances of $414 represented borrowings from Xi Wen, which is unsecured, interest free and due on demand. | | (ii) | As of March 31,2026, the balances of $578,398 comprises an interest-free loan of $500,000 from World Trade Technology, which is expected to be repaid on or before September 10, 2026, together with expenses of $78,398 settled on the Company’s behalf by World Trade Technology, which is unsecured, interest-free and repayable on demand. | | (iii) | As of March 31,2026, the balance of $168,696 represented funds collected by the Company on behalf of Xiang Hu, which had been fully paid off in May 2026. | 3) Operating lease right-of-use assets, a related party and Operating lease liabilities, a related party
| | | March 31, | | | March 31, | | | | | 2026 | | | 2025 | | | Operating lease right-of-use assets, a related party | | $ | 47,520 | | | $ | 6,910 | | | Operating lease liabilities, a related party | | $ | 58,023 | | | $ | 10,365 | | The Company entered into lease agreements with Dingchengtai and recorded operating lease right-of-use assets and lease liabilities accordingly. The current lease agreement will expire in May 2027. 2. Related Party Transactions | | | For the Years Ended
March 31, | | | | | 2026 | | | 2025 | | | Lease expenses to Dingchentai (1) | | $ | 41,067 | | | $ | 41,691 | | | Voluntary Waiver of Compensation by Xi Wen (2) | | $ | 70,000 | | | $ | — | | | Voluntary Waiver of Compensation by Trent Davis (2) | | $ | 65,000 | | | $ | — | | | Voluntary Waiver of Compensation by Sichun Wang (2) | | $ | 35,000 | | | $ | — | | | Advances to Jie Gao (3) | | $ | (14,081 | ) | | $ | — | | | Repayments from Xiang Hu (3) | | $ | 75,000 | | | $ | 69,288 | | | Payment by World Trade Technology on behalf of the Company (4) | | $ | 78,398 | | | $ | — | | | Funds collected by the Company on behalf of Xiang Hu (4) | | $ | 168,696 | | | $ | — | | | Borrowing from World Trade Technology (5) | | $ | 500,000 | | | $ | — | | | Borrowings from Xiang Hu (6) | | $ | 140,807 | | | $ | — | | | Repayments to Xiang Hu (6) | | $ | (140,807 | ) | | $ | — | | | Borrowings from Xi Wen (7) | | $ | 137,500 | | | $ | — | | | Repayments to Xi Wen (7) | | $ | (128,558 | ) | | $ | (11,940 | ) | | Loans to Xi Wen (7) | | $ | (229,469 | ) | | $ | — | | | Offset of loans due from Xi Wen against accrued salary payable to Xi Wen (7) | | $ | 221,389 | | | $ | — | | | (1) | For the years ended March 31, 2026 and 2025, the Company incurred $41,067 and $41,691 in rental expenses, respectively, for lease agreements entered into with Dingchentai. | | (2) | For the year ended March 31, 2026, the three former directors voluntarily waived all accrued but unpaid director compensation upon their resignation from the Company’s board of directors. | | (3) | The amount of $14,081 represented the advance to Jie Gao for operational purposes in February 2026, which was fully repaid in June 2026. | For the years ended March 31, 2026 and 2025, Xiang Hu repaid $75,000 and $69,288, respectively, against an interest-free special reserve loan of $150,000 granted to him on January 3, 2024 for operational purposes. | (4) | In February and March 2026, World Trade Technology paid a total of $78,398 in operating expenses on behalf of the Company, which is unsecured, interest-free and repayable on demand. | In November 2025, the Company collected $168,696 on behalf of Xiang Hu and remitted the full amount to his designated account in May 2026. | (5) | In February 2026, the Company obtained an unsecured and interest-free loan of $500,000 from World Trade Technology which shall be due and repayable on September 10, 2026. | | (6) | In December 2025, the Company obtained a loan amounted to $140,807 (RMB1,000,000) from Xiang Hu, which was unsecured, interest free and repayable on demand. The loan was fully repaid in March 2026. | | (7) | During the year ended March 31, 2026, the Company obtained total of $137,500 borrowings from Xi Wen, repaid $128,558 to him, and loaned total of $229,469 to Xi Wen. All of these loans between the Company and Xi Wen were unsecured, interest free and repayable on demand. The loan balances due from Xi wen amounted to $221,389 were offset against the accrued salary payable to Xi Wen as of December 31, 2025. | For the year ended March 31, 2025, the Company repaid borrowings of $11,940 to Xi Wen, which was borrowed before March 31, 2024. The loan was unsecured, interest free and due on demand.
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