| RELATED PARTY TRANSACTIONS AND BALANCES |
13. RELATED PARTY TRANSACTIONS AND BALANCES 1. Related Party Balances 1) Due from related parties As of June 30, 2026 and March 31, 2026, balances due from related parties from the Company’s continuing operations were comprised of the following: | | | June 30, | | | March 31, | | | | | 2026 | | | 2026 | | | | | (Unaudited) | | | | | | Total due from related parties (i) (ii) | | $ | 2,559,442 | | | $ | 2,532,049 | | | Less: Allowance for credit losses(i) | | | (2,559,442 | ) | | | (2,517,552 | ) | | Due from related parties, net | | $ | — | | | $ | 14,497 | | | Due from a related party, net, current (ii) | | $ | — | | | $ | 14,497 | | | (i) | As of both June 30, 2026 and March 31, 2026, balances due from Jinkailong, the Company’s equity investee company, were $0, 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 three months ended June 30, 2026 and for the year ended March 31, 2026 are as follows: | | | June 30, | | | March 31, | | | | | 2026 | | | 2026 | | | | | (Unaudited) | | | | | | Beginning balance | | $ | 2,517,552 | | | $ | 1,971,045 | | | Addition | | | — | | | | 422,064 | | | Translation adjustment | | | 41,890 | | | | 124,443 | | | Ending balance | | $ | 2,559,442 | | | $ | 2,517,552 | | | | (ii) | As of March 31, 2026, balance of $14,497 represented business cash advances to Jie Gao, a director of the Company, which was repaid to the Company in June 2026. | 2) Due to related parties | | | June 30, | | | March 31, | | | | | 2026 | | | 2026 | | | | | (Unaudited) | | | | | | Other payable due to a related party (i) | | $ | 578,398 | | | $ | 578,398 | | | Other payable due to a related party (ii) | | | — | | | | 168,696 | | | Total due to related parties | | $ | 578,398 | | | $ | 747,094 | | | (i) | As of June 30, 2026 and March 31, 2026, the balances of $578,398 comprises an interest-free loan of $500,000 from World Trade Technology Limited (“World Trade Technology”), a company where the Company’s Chief Financial Officer serves as Financial Controller, 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. There is no movement in the balance during the three months ended June 30, 2026. | | (ii) | As of March 31, 2026, the balance of $168,696 represented funds collected by the Company on behalf of Xiang Hu, a shareholder of the Company, 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 | | | June 30, | | | March 31, | | | | | 2026 | | | 2026 | | | | | (Unaudited) | | | | | | Operating lease right-of-use assets, a related party | | $ | 38,236 | | | $ | 47,520 | | | Operating lease liabilities, current, a related party | | $ | 61,515 | | | $ | 58,023 | | The Company entered into lease agreements with 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, 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 Three Months Ended
June 30, | | | | | 2026 | | | 2025 | | | | | (Unaudited) | | | (Unaudited) | | | Lease expenses to Dingchentai (1) | | $ | 10,648 | | | $ | 10,228 | | | Repayment of advance by Jie Gao (2) | | $ | 14,696 | | | $ | — | | | Remittance of Funds Collected for Xiang Hu (3) | | $ | (168,696 | ) | | $ | — | | | Borrowings from Xi Wen (4) | | $ | — | | | $ | 99,347 | | | (1) | For the three months ended June 30, 2026 and 2025, the Company incurred $10,648 and $10,228 in rental expenses, respectively, for lease agreements entered into with Dingchentai. | | (2) | The amount of $14,696 represented the repayment of advance by Jie Gao in June 2026, which was advanced for operational purposes in February 2026. | | (3) | In May 2026, the Company remitted $168,696 to Xiang Hu’s designated account, and such funds were collected on behalf of Xiang Hu in November 2025. | | (4) | During the three months ended June 30, 2025, the Company obtained total of $99,347 borrowings from Xi Wen, which were unsecured, interest free and repayable on demand |
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