| RELATED PARTY TRANSACTIONS |
NOTE 12 — RELATED PARTY TRANSACTIONS
The Company’s relationships with related
parties who had transactions with the Company are summarized as follows:
| Name of Related Party | | Relationship to the Company | | Shanghai Tuwen Office Equipment Co., Ltd. | | An entity partially owned by the non-controlling shareholder who own 45% of Changyun | | Shanghai Yaodun Science and Technology Development Center (Limited Partnership) | | An entity owned by the Company’s chairman and CEO | | Qingdao Lixing Technology Co., Ltd. | | An entity partially owned by the Supervisor of Qingdao | | Kunming Jinbi Office Equipment Co., Ltd. | | The general manager of this entity is the Supervisor of Kunming, the entity ceased to be a related party to the Company since April 1, 2025. | | Qinghai Jiayuan Mingyue Trade Co., Ltd. | | An entity partially owned by the non-controlling shareholder who owns 45% of Qinghai, the entity ceased to be a related party to the Company since April 1, 2025. | | Anhui New Yalian Office Equipment Co., Ltd. | | An entity partially owned by the Company’s minority shareholder, the entity ceased to be a related party to the Company since April 1, 2025. | | Xuancheng Jinshida Modern Office Equipment Co., Ltd. | | An entity partially owned by the Company’s minority shareholder, the entity ceased to be a related party to the Company since April 1, 2025. | | Ningbo Lihong Information System Engineering Co., Ltd. | | An entity partially owned by the Company’s minority shareholder, the entity ceased to be a related party to the Company since April 1, 2025. | | Yue Yan (Shanghai) Digital Technology Co., Ltd. | | An entity owned by the officer of the Company | | Qinghai Chengchuang ideal Trading Co. Ltd. | | An entity partially owned by the director of Qinghai | | Hangzhou Shilian Office Equipment Co., Ltd | | An entity partially owned by the non-controlling shareholder who own 45% of Hangzhou | | Hebei Leading Future Technology Co., Ltd. | | The Supervisor of this entity is the non-controlling shareholders who own 45% of Shijiazhuang | | Hongkong Eshallgo Holding Group Co., Limited | | An entity owned by the Company’s CEO and Director | | Eshallgo Electrical Equipment (Shanghai) Co., Ltd. | | Shareholder of the Company | | Shanghai Yuchou Technology Development Co., Ltd. | | An entity partially owned by the officer of the Company | | Zhidan Mao | | Chairman | | Qiwei Miao | | Chief Executive Officer and Director | | Chun Lyu | | Chief Financial Officer | | Yun Li | | The non-controlling shareholders who own 45% of Qinghai | | Peidong Xia | | The non-controlling shareholders who own 45% of Changyun | | Zhongyang Pan | | Family member of the non-controlling shareholders who own 45% of Suzhou | | Jialiang Wang | | The non-controlling shareholders who own 45% of Zibo | a. Accounts receivable - related parties
Accounts receivable - related parties consisted
of the following:
| | |
March 31, | | |
March 31, | |
| | |
2026 | | |
2025 | |
| Shanghai Tuwen Office Equipment Co., Ltd. | |
$ | 24,084 | | |
$ | 166,236 | |
| Anhui New Yalian Office Equipment Co., Ltd. | |
| - | | |
| 64,812 | |
| Xuancheng Jinshida Modern Office Equipment Co., Ltd. | |
| - | | |
| 12,823 | |
| Hebei Leading Future Technology Co., Ltd. | |
| - | | |
| 1,345 | |
| Others | |
| 40 | | |
| 276 | |
| Accounts receivable - related parties | |
$ | 24,124 | | |
$ | 245,492 | |
For accounts receivable due from related parties,
approximately 0.2%, or $40 of the March 31, 2026 balances have been subsequently collected as of July 31, 2026.
b. Advance to vendors - related parties
Advance to vendors - related parties consisted
of the following:
| | |
March 31, | | |
March 31, | |
| | |
2026 | | |
2025 | |
| Qinghai Chengchuang Ideal Trading Co. Ltd. | |
$ | 121,513 | | |
$ | - | |
| Others | |
| - | | |
| 50 | |
| Advance to vendors - related parties | |
$ | 121,513 | | |
$ | 50 | |
The Company periodically makes purchase advances to
various vendors, including the related party suppliers. For advance to vendors made to related parties, all of the March 31, 2026 balances
have been subsequently utilized as of July 31, 2026.
c. Due from related parties
Due from related parties consisted of the following:
| | |
March 31, | | |
March 31, | |
| | |
2026 | | |
2025 | |
| Qiwei Miao | |
$ | 1,165,673 | | |
$ | 1,105,383 | |
| Zhidan Mao | |
| 777,577 | | |
| 594,363 | |
| Hangzhou Shilian Office Equipment Co., Ltd | |
| 579,389 | | |
| 530,458 | |
| Chun Lyu | |
| 311,055 | | |
| 291,495 | |
| Shanghai Yaodun Science and Technology Development Center (Limited Partnership) | |
| 149,406 | | |
| 142,117 | |
| Eshallgo Electrical Equipment (Shanghai) Co., Ltd. | |
| 144,847 | | |
| 137,781 | |
| Yun Li | |
| 89,106 | | |
| 148,402 | |
| Ningbo Lihong Information System Engineering Co., Ltd. | |
| - | | |
| 158,448 | |
| Qingdao Lixing Technology Co., Ltd. | |
| - | | |
| 68,891 | |
| Others | |
| 5,400 | | |
| 19,679 | |
| Due from related parties | |
$ | 3,222,453 | | |
$ | 3,197,017 | |
The Company historically loaned funds to its related
parties for working capital during the Company’s normal course of business. The balance due from related parties is typically interest-free
and due upon demand. For amount due from related parties, approximately 25.7%, or $828,742 of the March 31, 2026 balances have been subsequently
collected as of July 31, 2026.
d. Accounts payable - related parties
Accounts payable - related parties consisted
of the following:
| | |
March 31, | | |
March 31, | |
| | |
2026 | | |
2025 | |
| Shanghai Yuchou Technology Development Co., Ltd. | |
$ | 54,481 | | |
$ | - | |
| Qingdao Lixing Technology Co., Ltd. | |
| 23,186 | | |
| 90,946 | |
| Yue Yan (Shanghai) Digital Technology Co., Ltd. | |
| - | | |
| 31,679 | |
| Hangzhou Shilian Office Equipment Co., Ltd | |
| - | | |
| 16,020 | |
| Others | |
| 2,271 | | |
| 1,616 | |
| Accounts payable - related parties | |
$ | 79,938 | | |
$ | 140,261 | |
All these accounts payable to related parties
occurred in the ordinary course of business and are payable upon demand without interest. e. Due to related parties
Due to related parties consisted of the following:
| | |
March 31, | | |
March 31, | |
| | |
2026 | | |
2025 | |
| Jialiang Wang | |
$ | 323,405 | | |
$ | - | |
| Peidong Xia | |
| 101,393 | | |
| 114,358 | |
| Hongkong Eshallgo Holding Group Co., Limited | |
| 9,667 | | |
| 10,285 | |
| Others | |
| 5,447 | | |
| 7,977 | |
| Due to related parties | |
$ | 439,912 | | |
$ | 132,620 | |
Amount due to related parties are advances from
various related parties for working capital during the Company’s normal course of business. These advances are unsecured, non-interest
bearing and due on demand.
f. Due to a related party – non-current
| | |
March 31, | | |
March 31, | |
| | |
2026 | | |
2025 | |
| Zhongyang Pan | |
$ | 81,115 | | |
$ | 126,759 | |
| Due to a related party - non-current | |
$ | 81,115 | | |
$ | 126,759 | |
Amount due to a related party – non-current
is loan borrowed from the related party for working capital during the Company’s normal course of business for three years with
maturity date on December 15, 2027. The loan bears a fixed interest rate of 3.0% per annum.
g. Sales to related parties
Sales to related parties consisted of the following:
| | |
For the Years Ended | |
| | |
March 31, | |
| | |
2026 | | |
2025 | | |
2024 | |
| Hangzhou Shilian Office Equipment Co., Ltd | |
$ | 59,597 | | |
$ | 142,957 | | |
$ | 15,330 | |
| Shanghai Yuchou Technology Development Co., Ltd. | |
| 39,430 | | |
| - | | |
| - | |
| Hebei Leading Future Technology Co., Ltd. | |
| 2,459 | | |
| 49,252 | | |
| 46,295 | |
| Shanghai Tuwen Office Equipment Co., Ltd. | |
| 1,893 | | |
| 232,774 | | |
| 92,214 | |
| Qingdao Lixing Technology Co., Ltd. | |
| 677 | | |
| 1,961 | | |
| 31,930 | |
| Anhui New Yalian Office Equipment Co., Ltd. | |
| - | | |
| 347,621 | | |
| 155,599 | |
| Ningbo Lihong Information System Engineering Co., Ltd. | |
| - | | |
| 95,743 | | |
| 88,365 | |
| Xuancheng Jinshida Modern Office Equipment Co., Ltd. | |
| - | | |
| 16,682 | | |
| 8,807 | |
| Youshi Innovation Business Group Co., Ltd. | |
| - | | |
| - | | |
| 28,683 | |
| Kunming Jinbi Office Equipment Co., Ltd. | |
| - | | |
| - | | |
| 17,147 | |
| Others | |
| 519 | | |
| 3,581 | | |
| 486 | |
| Sales to related parties | |
$ | 104,575 | | |
$ | 890,571 | | |
$ | 484,856 | |
h. Purchases from related parties
Purchases from related parties consisted of the
following:
| | |
For the Years Ended | |
| | |
March 31, | |
| | |
2026 | | |
2025 | | |
2024 | |
| Shanghai Yuchou Technology Development Co., Ltd. | |
$ | 596,325 | | |
$ | - | | |
$ | - | |
| Shanghai Tuwen Office Equipment Co., Ltd. | |
| 150,863 | | |
| 122,789 | | |
| 6,477 | |
| Ningbo Lihong Information System Engineering Co., Ltd. | |
| - | | |
| 6,896 | | |
| 21,466 | |
| Kunming Jinbi Office Equipment Co., Ltd. | |
| - | | |
| - | | |
| 468,385 | |
| Youshi Innovation Business Group Co., Ltd. | |
| - | | |
| - | | |
| 50,325 | |
| Yue Yan (Shanghai) Digital Technology Co., Ltd. | |
| - | | |
| - | | |
| 35,649 | |
| Qingdao Lixing Technology Co., Ltd. | |
| - | | |
| - | | |
| 4,328 | |
| Others | |
| - | | |
| 9,289 | | |
| 3,507 | |
| Purchases from related parties | |
$ | 747,188 | | |
$ | 138,974 | | |
$ | 590,137 | |
i. Loan transactions with related parties
Loan transactions with related parties consisted
of the following:
| | |
| |
For the Years Ended | |
| | |
| |
March 31, | |
| | |
Nature | |
2026 | | |
2025 | | |
2024 | |
| Zhidan Mao | |
Payments made to a related party | |
$ | (163,757 | ) | |
$ | (596,096 | ) | |
$ | - | |
| Qiwei Miao | |
Payments made to a related party | |
| (59,426 | ) | |
| (1,045,660 | ) | |
| (53,507 | ) |
| Zhongyang Pan | |
Proceeds from (repayment made to) a related party | |
| (50,687 | ) | |
| 127,481 | | |
| - | |
| Hangzhou Shilian Office Equipment Co., Ltd | |
Payments made to a related party | |
| (21,120 | ) | |
| (533,479 | ) | |
| - | |
| Chun Lyu | |
Payments made to a related party | |
| (20,201 | ) | |
| (289,677 | ) | |
| - | |
| Peidong Xia | |
Proceeds from (repayment made to) a related party | |
| (18,304 | ) | |
| 115,010 | | |
| - | |
| Jialiang Wang | |
Proceeds from a related party | |
| 314,361 | | |
| - | | |
| - | |
| Ningbo Lihong Information System Engineering Co., Ltd. | |
Collections received from (payments made to) a related party | |
| 161,916 | | |
| (159,351 | ) | |
| - | |
| Qingdao Lixing Technology Co., Ltd. | |
Collections received from (payments made to) a related party | |
| 70,398 | | |
| (69,283 | ) | |
| - | |
| Yun Li | |
Collections received from (payments made to) a related party | |
| 65,036 | | |
| (149,247 | ) | |
| - | |
| Shanghai Yaodun Science and Technology Development Center (Limited Partnership) | |
Payments made to a related party | |
| - | | |
| (142,927 | ) | |
| (135,402 | ) |
| Eshallgo Electrical Equipment (Shanghai) Co., Ltd. | |
Payments made to a related party | |
| - | | |
| (138,566 | ) | |
| - | |
| Qinghai Chengchuang Ideal Trading Co. Ltd. | |
Collections received from (payments made to) a related party | |
| - | | |
| 237,405 | | |
| (239,521 | ) |
| Anhui New Yalian Office Equipment Co., Ltd. | |
Collections received from a related party | |
| - | | |
| 64,028 | | |
| 40,886 | |
| Shanghai Mingzhe Office Equipment Co., Ltd. | |
Collections received from a related party | |
| - | | |
| - | | |
| 209,702 | |
| Others | |
Proceeds/collection from (payment/repayment made to) related parties | |
| 11,401 | | |
| (4,484 | ) | |
| (27,598 | ) |
| Total | |
| |
$ | 289,617 | | |
$ | (2,584,846 | ) | |
$ | (205,440 | ) |
|