| RELATED PARTY TRANSACTIONS AND BALANCES |
14. RELATED PARTY TRANSACTIONS AND BALANCES
The following is a list of related parties which
the Group has transactions with during the six months ended March 31, 2025 and 2026:
| Name | | Relationship | | (a) | Shuang Wu | | Non-controlling shareholder of Changzhou EZGO and legal representative of Jiangsu New Energy | | (b) | Jianhui Ye | | Chief Executive Officer, Director and a principal shareholder of the Group | | (c) | Jiangsu Youdi Technology Co., Ltd.** | | Equity investments with 29% shareholding before the disposal of Changzhou Youdi | | (d) | Shanghai Mingli New Energy Technology Co., Ltd. | | Equity investments with 40% shareholding | | (e) | Jiangsu EZGO Electronic Technologies Co., Ltd. (“Jiangsu EZGO”) | | Entity controlled by Mr. Jianhui Ye | | (f) | Yan Fang* | | A related party before the disposal of VIE. Non-controlling shareholder of Cenbird E-Motorcycle | | (g) | Shandong Xingneng’an New Energy Technology Co., Ltd. * | | Equity investments with 25% shareholding before the disposal of VIE | | (h) | Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. * | | A related party before the disposal of VIE. Yan Fang, a non-controlling shareholder of Cenbird E-motorcycle, whose family member serves as director of Changzhou Cenbird Electric Bicycle Manufacturing Co., Ltd. | | (i) | Jiangsu Xinzhongtian Suye Co., Ltd. * | | A related party before the disposal of VIE. Yuxing Liu, the spouse of Yan Fang, serves as the executive of Jiangsu Xinzhongtian Suye Co., Ltd. | | (j) | Shenzhen Star Asset Management Co., Ltd. * | | A related party before the disposal of VIE. General Partner of Xinyu Star Assets Management No.1 Investing Partnership and Xinyu Star Assets Management No.2 Investing Partnership, which are two significant shareholders of the Group. | | (k) | Shenzhen Star Cycling Network Technology Co., Ltd. * | | Equity investments with 42% shareholding before the disposal of VIE | | (l) | WORK Medical Technology Group LTD | | A company Shuang Wu serves as Chief Executive Officer and Chairman of the Board of Directors |
| * | Related parties prior to the disposal of VIE and its subsidiaries. |
| ** | Related parties prior to the disposal of Changzhou Youdi. | Amounts due from related parties
As of September 30, 2025 and March 31, 2026, amounts
due from related parties consisted of the following:
| | |
As of
September 30,
2025 | | |
As of
March 31,
2026 | |
| | |
| | |
(Unaudited) | |
| Shanghai Mingli New Energy Technology Co., Ltd. (1) | |
$ | 7,888,996 | | |
$ | 8,273,918 | |
| Jiangsu Youdi Technology Co., Ltd. (2) | |
| 273,255 | | |
| - | |
| Jianhui Ye (3) | |
| 388 | | |
| - | |
| Total amount due from related parties, current | |
$ | 8,162,639 | | |
$ | 8,273,918 | |
| (1) | The balance is an interest-free loan with a maturity date of September 29, 2026. |
| (2) | The balance is a loan provided to Jiangsu Youdi Technology Co., Ltd. with an interest rate of 4%. |
| (3) | The balance is mainly advances made to the management for the Group’s daily operational purposes. |
Amounts due to related parties
As of September 30, 2025 and March 31, 2026, amounts
due to related parties consisted of the following:
| | |
As of
September 30,
2025 | | |
As of
March 31,
2026 | |
| | |
| | |
(Unaudited) | |
| Jianhui Ye (1) | |
$ | - | | |
$ | 99,616 | |
| Shuang Wu (1) | |
| 2,672,172 | | |
| 235,342 | |
| Shenzhen Star Asset Management Co., Ltd. (1) | |
| 19,000 | | |
| - | |
| WORK Medical Technology Group Ltd. (2) | |
| - | | |
| 3,022,500 | |
| Jiangsu EZGO (3) | |
| 2,499,508 | | |
| 2,222,681 | |
| Total amount due to related parties | |
| 5,190,680 | | |
| 5,580,139 | |
| (1) | The balance mainly was interest-free loans from related parties, which were due on demand. |
| (2) | The balance mainly represents a loan provided by WORK Medical Technology Group LTD with an interest rate of 3% and will be matured on December, 2026. |
| (3) | The balance was a loan of RMB 55.6 million ($8.1 million) provided by Jiangsu EZGO, with an annual interest rate of 4% and partially offset by a loan of RMB 40.0 million ($5.8 million) provided to EZGO, with annual interest rate of 5%, and will be matured on August 2026. | Related party transactions
For the six months ended March 31, 2025 and 2026,
the Group had the following material related party transactions:
| Related
Parties | |
Nature | |
Six
months ended
March 31, | |
| | |
| |
2025 | | |
2026 | |
| | |
| |
(Unaudited) | | |
(Unaudited) | |
| Inventory purchased from related
parties | |
| |
| | |
| |
| Jiangsu
Xinzhongtian Suye Co., Ltd. | |
Purchase of e-bicycles | |
$ | 1,323,097 | | |
$ | - | |
| Changzhou
Cenbird Electric Bicycle Manufacturing Co., Ltd. | |
Purchase of e-bicycles | |
| 966,506 | | |
| - | |
| Total
inventory purchased from related parties | |
| |
| 2,289,603 | | |
| - | |
| Less:
inventory purchased from related parties from discontinued operation | |
| |
| (2,289,603 | ) | |
| - | |
| Inventory
purchased from continuing operations | |
| |
$ | - | | |
$ | - | |
| | |
| |
| | | |
| | |
| Loans
to related parties | |
| |
| | | |
| | |
| Shanghai Mingli
New Energy Technology Co., Ltd. | |
Loan to a related party | |
$ | 2,904,243 | | |
$ | - | |
| Shanghai Mingli
New Energy Technology Co., Ltd. | |
Imputed interest on related party loan | |
| 84,342 | | |
| 130,132 | |
| Shandong Xingneng’an
New Energy Technology Co., Ltd. | |
Loan to a related party | |
| 138,297 | | |
| - | |
| Shandong Xingneng’an
New Energy Technology Co., Ltd. | |
Interest receivable from a related party | |
| 35,811 | | |
| - | |
| Shenzhen Star
Cycling Network Technology Co., Ltd. | |
Interest receivable from a related party | |
| 12,238 | | |
| - | |
| Jiangsu Youdi
Technology Co., Ltd. | |
Interest receivable from a related party | |
| 10,607 | | |
| - | |
| Jiangsu
Youdi Technology Co., Ltd. | |
Loan to a related party | |
| 1,203 | | |
| - | |
| Total
loans to related parties | |
| |
| 3,186,741 | | |
| 130,132 | |
| Less:
loans to related parties from discontinued operation | |
| |
| (12,238 | ) | |
| - | |
| Loans
to related parties from continuing operations | |
| |
$ | 3,174,503 | | |
$ | 130,132 | |
| | |
| |
| | | |
| | |
| Collection
of loan to a related party | |
| |
| | | |
| | |
| Shandong Xingneng’an
New Energy Technology Co., Ltd. | |
Collection of loan to a related party | |
$ | 691,486 | | |
$ | - | |
| Jiangsu
EZGO | |
Collection of loan to a related
party | |
| - | | |
| 3,571,253 | |
| Total
collection of loan to a related party | |
| |
$ | 691,486 | | |
$ | 3,571,253 | |
| | |
| |
| | | |
| | |
| Loans
from related parties | |
| |
| | | |
| | |
| Jiangsu Xinzhongtian
Suye Co., Ltd. | |
Interest-free loan from a related party | |
$ | 584,085 | | |
$ | - | |
| Shuang Wu | |
Interest-free loan from a related party | |
| 389,893 | | |
| 486,596 | |
| Yan Fang | |
Interest-free loan from a related party | |
| 5,532 | | |
| - | |
| Jiangsu EZGO | |
Interest-free loan from a related party | |
| - | | |
| 19,055 | |
| Jianhui Ye | |
Interest-free loan from a related party | |
| - | | |
| 100,000 | |
| WORK
Medical Technology Group Ltd. | |
Interest-bearing loan from
a related party | |
| - | | |
| 3,000,000 | |
| Total
loans from related parties | |
| |
| 979,510 | | |
| 3,605,651 | |
| Less:
loans from related parties from discontinued operation | |
| |
| (589,617 | ) | |
| - | |
| Loans
from related parties from continuing operations | |
| |
$ | 389,893 | | |
$ | 3,605,651 | |
| | |
| |
| | | |
| | |
| Repayment
of loans from related parties | |
| |
| | | |
| | |
| Shuang Wu | |
Repayment of interest-free loans from a related
party | |
$ | 622,338 | | |
$ | 3,181,131 | |
| Jiangsu Xinzhongtian
Suye Co., Ltd. | |
Repayment of interest-free loans from a related
party | |
| 553,189 | | |
| - | |
| Jiangsu
EZGO | |
Repayment of interest-bearing
loans from a related party | |
| - | | |
| 3,941,708 | |
| Total
repayment of loans from related parties | |
| |
| 1,175,527 | | |
| 7,122,839 | |
| Less:
repayment of loans from related parties from discontinued operation | |
| |
| (553,189 | ) | |
| - | |
| Repayment
of loans from related parties from continuing operations | |
| |
$ | 622,338 | | |
$ | 7,122,839 | |
| | |
| |
| | | |
| | |
| Others | |
| |
| | | |
| | |
| Shuang Wu | |
Reimbursement for expenses paid for daily operation
on behalf of the Group | |
$ | - | | |
$ | 272,900 | |
| WORK
Medical Technology Group Ltd. | |
Interest payable to a related
party | |
| - | | |
| 22,500 | |
| Total
others | |
| |
$ | - | | |
$ | 295,400 | |
|