v3.26.1
Related Party Transactions and Balances
 9 Months Ended
Dec. 31, 2025
Related Party Transactions and Balances [Abstract]  
RELATED PARTY TRANSACTIONS AND BALANCES

14. RELATED PARTY TRANSACTIONS AND BALANCES

 

1. Related Party Balances

 

1) Due from related parties

 

As of December 31, 2025 and March 31, 2025, balances due from related parties from the Company’s continuing operations were comprised of the following:

 

    December 31,     March 31,  
    2025     2025  
    (Unaudited)     (Unaudited)  
Total due from related parties   $ 2,483,315     $ 2,474,207  
Less: Allowance for credit losses     (2,483,315 )     (1,971,045 )
Due from related parties, net   $ —     $ 503,162  
Due from a related party, net, current   $ —     $ 81,098  
Due from a related party, net, non-current   $ —     $ 422,064  

 

As of December 31, 2025 and March 31, 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 nine months ended December 31, 2025 and for the year ended March 31, 2025 are as follows:

 

    December 31,     March 31,  
    2025     2025  
    (Unaudited)     (Unaudited)  
Beginning balance   $ 1,971,045     $ 1,284,203  
Addition     427,764       697,165  
Translation adjustment     84,506       (10,323 )
Ending balance   $ 2,483,315     $ 1,971,045  

 

On January 3, 2024, Xiang Hu, a shareholder of the Company, 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 December 31, 2025 and March 31, 2025, the outstanding balance was $0 and $81,098, respectively.

 

2) Due to related parties

 

    December 31,     March 31,  
    2025     2025  
    (Unaudited)     (Unaudited)  
Loan payable to a related party (i)   $ —     $ 414  
Other payable due to a related party (ii)     142,998       —  
Total due to related parties   $ 142,998     $ 414  

 

(i) As of March 31, 2025, the balances of $414 represented borrowings from Xi Wen, the CEO of the Company, which is unsecured, interest free and due on demand, respectively.

 

(ii) As of December 31, 2025, the balances of $142,998 represented borrowings from Xiang Hu, a shareholder of the Company, which is unsecured, interest free and expected to be repaid before March 31, 2026.

 

3) Operating lease right-of-use assets - a related party and Operating lease liabilities - a related party

 

    December 31,     March 31,  
    2025     2025  
    (Unaudited)     (Unaudited)  
Operating lease right-of-use assets – a related party   $ 55,824     $ 6,910  
Operating lease liabilities, current – a related party   $ 46,295     $ 10,365  
Operating lease liabilities, non-current – a related party   $ 10,211     $ —  

 

In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as the legal representative and general manager. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed in June 2022 which extended the original lease to May 2025, another renewal lease contract was signed on June 2025 which extended the original lease to May 2027, with an annual rent of approximately $41,000, payable on a quarter basis.

 

2. Related Party Transactions

 

For the three and nine months ended December 31, 2025, the Company incurred $8,546 and $29,454 in rental expenses, respectively, compared to $10,169 and $43,639 for the same periods in 2024, to Dingchentai, a company where one of the Company’s independent directors serves as the legal representative and general manager.