| Related parties |
| |
a) |
The
table below sets forth the related party and the relationship with the Company: |
Schedule of related party and relationship
| Name of related party | |
Relationship with the Company |
| Xiaofeng Gao | |
Former chairman of the Board of Directors and Co-Chief Executive Officer, and 15.52% beneficial owner of the Company* |
| Bin Fu | |
Chairman of the Board of Directors and Chief Executive Officer of the Company* |
| Peng Wang | |
Director of the Company |
| Xuejun Ji | |
16.02% beneficial owner of the Company |
| Hunan Medical Star Technology Co., Ltd. ( Medical Star) | |
Joint venture |
| Wuxi Kingway Technology Co., Ltd. (“Wuxi Kingway”)** | |
Entity controlled by Xiaofeng Gao |
| Columbus Digital Technology (Shenzhen) Co., Ltd. | |
Entity controlled by Xuejun Ji |
| * |
On
September 6, 2024, Mr. Xiaofeng Gao resigned as the chairman of the Board of Directors and Co-Chief Executive Officer of the Company
and Mr. Bin Fu has become the sole Chief Executive Officer of the Company. |
| ** |
Wuxi
Kingway was a subsidiary of the Company before March 17, 2025 and deconsolidated from the Group upon the termination of the VIE Agreements
on March 17, 2025. Since Wuxi Kingway is an entity controlled by Xiaofeng Gao, who is a major beneficiary owner of the Company, Wuxi
Kingway becomes a related party to the Group thereafter. |
| |
b) |
The
Company had the following related party balances with the related parties mentioned above: |
Schedule
of related party balance with the related party
| Amounts due to related parties | |
| | |
| |
| | |
As of March 31, | |
| | |
2026 | | |
2025 | |
| Amounts due to related parties | |
| | |
| |
| Amounts due to Xiaofeng Gao (1) | |
$ | 29,254 | | |
$ | 23,007 | |
| Amounts due to Xuejun Ji (1) | |
| — | | |
| 11,145 | |
| Amounts due to Bin Fu (1) | |
| — | | |
| 39,007 | |
| Amounts due to Columbus Digital Technology (Shenzhen) Co., Ltd.(2) | |
| 79,759 | | |
| — | |
| Total | |
| 109,013 | | |
| 73,159 | |
| Amount due to related party | |
| 109,013 | | |
| 73,159 | |
| (1) |
The amounts result from
the arrangements with related parties for temporary advances for operating purpose. These transactions are unsecured, interest free
without fixed maturity date and being due on demand. |
| |
|
| (2) |
The amount due to Columbus
Digital Technology (Shenzhen) Co., Ltd. represents accrued rental payables arising from an operating lease arrangement for office
premises. The lease term covered the period from April 1, 2024 to March 31, 2026. As of March 31, 2026 , the outstanding balance
of $79,759 comprises unpaid rent for the lease period. |
| Promissory note to related parties | |
| | |
| |
| | |
As of March 31, | |
| | |
2026 | | |
2025 | |
| Promissory note to related parties | |
| | |
| |
| Amounts due to Xuejun Ji | |
| 400,000 | | |
| 400,000 | |
| Amounts due to Bin Fu | |
| 200,000 | | |
| 200,000 | |
| Amounts due to Peng Wang | |
| 400,000 | | |
| - | |
| Total | |
| 1,000,000 | | |
| 600,000 | |
| Promissory note to related parties | |
| 1,000,000 | | |
| 600,000 | |
Amounts
owed to Xuejun Ji, Bin Fu and Peng Wang arise from promissory notes issued by the Company, which bear interest at 6% per annum.
| Amounts due from a related party | |
| | | |
| | |
| | |
As of March 31, | |
| | |
2026 | | |
2025 | |
| Amounts due from a related party | |
| | | |
| | |
| Amounts due from Wuxi Kingway(1) | |
$ | — | | |
$ | 660,539 | |
| Amounts due from a related party | |
$ | — | | |
$ | 660,539 | |
| (1) |
As of March 31, 2026, the
Group recorded a provision for expected credit losses on receivables due from Wuxi Kingway, which is collateralized by the pledge
of shares owned by Mr. Gao, amounting to $660,539, of which $93,686 included in current portion and $566,853 included in non-current
portion. Management concluded that such outstanding balances are not recoverable due to the prolonged business downturn and
liquidity constraints experienced by Wuxi Kingway. |
| |
c) |
The
Company had the following related party transaction with the related party mentioned above: |
Schedule
of related party transactions with related party
| | |
2026 | | |
2025 | | |
2024 | |
| | |
For the years ended March 31, | |
| | |
2026 | | |
2025 | | |
2024 | |
| Advance from Xiaofeng Gao | |
| 12,478 | | |
| 20,908 | | |
| — | |
| Bond received from Xuejun Ji | |
| — | | |
| 400,000 | | |
| — | |
| Bond received from Bin Fu | |
| — | | |
| 200,000 | | |
| — | |
| Bond received from Peng Wang | |
| 400,000 | | |
| — | | |
| — | |
| Bond received from related parties | |
| 400,000 | | |
| — | | |
| — | |
| Sales to Medical Star | |
| — | | |
| — | | |
| 17,235 | |
During
the fiscal year ended March 31, 2026, the Company’s recognized interest expenses amounted to $12,167, $22,684 and $14,631, respectively,
pertaining to promissory notes payable to Bin Fu, Xuejun Ji and Peng Wang.
During
the fiscal year ended March 31, 2026, the Company’s recognized interest income amounted to $26,430, pertaining to loan receivable
from Wuxi Kingway Technology Co., Ltd.
During
the fiscal year ended March 31, 2026, the Company recognized rental expenses of $102,079 pertaining to Columbus Digital Technology (Shenzhen)
Co., Ltd.
SKILLFUL
CRAFTSMAN EDUCATION TECHNOLOGY LIMITED.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
|