| RELATED PARTY TRANSACTIONS |
18. RELATED
PARTY TRANSACTIONS
(a) The table below sets forth the related
parties and their relationships with the Group, with which the Group has transactions:
| No. | | Name of Related Parties | | Relationship | | 1 | | Mr. Alan Nan Wu | | Shareholder and Executive Chairman of the Company | | 2 | | Mr. Benjamin Zhai | | Chief Executive Officer and Executive Director of the Company | | 3 | | Mr. Chenxuan Zhao | | Director of certain subsidiaries of the Group | | 4 | | Yunmi New Energy Technology Ltd. (“Yunmi) | | A company wholly owned by Mr. Chenxuan Zhao |
(b) The Group had the following significant
related party transactions for the six months ended June 30, 2026 and 2025:
| |
|
For the six months ended
June 30, |
|
| Nature |
|
2026 |
|
|
2025 |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
| Loan proceeds from related parties |
|
|
|
|
|
|
| – Mr. Benjamin Zhai (i) |
|
$ |
- |
|
|
$ |
94 |
|
| – Mr. Alan Nan Wu (ii) |
|
|
163 |
|
|
|
622 |
|
| Repayments to related parties |
|
|
|
|
|
|
|
|
| – Mr. Benjamin Zhai (i) |
|
|
190 |
|
|
|
- |
|
| – Mr. Alan Nan Wu (ii) |
|
|
259 |
|
|
|
27 |
|
| Loan to a related party |
|
|
|
|
|
|
|
|
| – Mr. Chenxuan Zhao (iii) |
|
|
255 |
|
|
|
- |
|
| A compensation |
|
|
|
|
|
|
|
|
| – Yunmi (see Note 15 share-based compensation for details) |
|
$ |
4,338 |
|
|
$ |
- |
|
(c) The Group had the following related
party balances with the related parties mentioned above:
| | |
As of
June 30, | | |
As of
December 31, | |
| | |
2026 | | |
2025 | |
| | |
(Unaudited) | | |
| |
| Amounts due from a related party: | |
| | |
| |
| – Mr. Chenxuan Zhao (iii) | |
$ | 259 | | |
$ | - | |
| Amount due from a related party, net | |
$ | 259 | | |
$ | - | |
| | |
| | | |
| | |
| Amounts due to related parties: | |
| | | |
| | |
| – Mr. Alan Nan Wu (ii) | |
$ | 618 | | |
$ | 714 | |
| – Mr. Benjamin Zhai (i) | |
| 260 | | |
| 450 | |
| Total | |
$ | 878 | | |
$ | 1,164 | |
| (i) | On
April 16, 2025, the Group entered into a loan agreement with Mr. Benjamin Zhai, pursuant to provide a loan in the principal amount of
US$0.3 million. The loan has a term of 12 months from the date the funds are received by the Group. Under the terms of the agreement,
the Company is required to repay a total amount of US$0.5 million upon maturity, representing principal of US$0.3 million and total interest
of US$0.2 million. The effective annual interest rate is approximately 50%. Of the total loan proceeds, approximately US$0.1 million
was remitted directly to the Group, and the remaining US$0.2 million was paid by Mr. Benjamin Zhai on behalf of the Group to settle audit
service fees. For the six months ended June 30, 2026, the Group repaid US$0.2 million to Mr. Benjamin Zhai. As of June 30, 2026, the
outstanding balance payable to Mr. Benjamin Zhai was US$0.3 million. |
| (ii) | In 2022, My Car (Shenzhen) Technology Co, Ltd. (“My
Car”, a prior related party of the Group before June 26, 2023) paid loan and expenses on behalf of the Group totaled US$5.5 million,
which were interest-free and repayable on demand, and the Group repaid US$5.8 million. The Group provided loan to My Car of US$1.5 million
which was transferred to Mr. Nan Wu from My Car. Subsequently, Mr. Nan Wu paid loan and expenses on behalf of the Group totaled US$3.8
million, net off the expenses the Group paid for Mr. Nan Wu. Mr. Nan Wu also provided interest-free loans of US$2.9 million to the Group
for ordinary operations in 2022, which was repayable on demand. In 2024, the Group made repayments to Mr. Nan Wu of US$0.5 million. In
2025, the Group received interest-free loans of US$1.0 million from Mr. Nan Wu and made repayments of US$0.2 million. Following the disposal
of ICONIQ, the Group still had an outstanding balance of US$0.6 million due to Mr. Alan Nan Wu as of June 30, 2026. During the six months
ended June 30, 2026, the Group borrowed US$0.2 million from Mr. Alan Nan Wu and made repayments of US$0.3 million to him. |
| (iii) | The Group provided loans to Mr. Chenxuan Zhao for use as
working funds to support the Group’s daily operations, which were interest-free and repayable on demand. |
For the six months ended June 30, 2026 and 2025,
the Group did not recognize any allowance for credit losses on amounts due from related parties from continuing operations.
|