Related party balances and transactions |
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| Related party balances and transactions | Note 10 – Related party balances and transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. The table below sets forth the major related parties and their relationships with the Company as of June 30, 2026 and December 31, 2025:
Due from related parties
As of June 30, 2026 and December 31, 2025, the balance due from related parties were both nil. As of December 31, 2024, the balance of $247,328 were borrowed to Runmei for working capital use which were non-interest bearing and payable upon demand, fully received on March 28, 2025.
Due from discontinued operations, net
Due from discontinued operations, net consist of the following:
Movement of allowance for credit losses consist of the following:
The Company disposed the discontinued operation entities in 2023, those entities continued in the decline of the scale of operation and in the increase of operating losses, which made the collectability of the receivables in doubt. Therefore, the Company totally impaired the balance due from discontinued operations by amount of $17,632,181 in 2023. Based on an analysis of the discontinued operation entities’ current situation, the Company determined that the due from discontinued operations were uncollectible. Consequently, the amount of $17,632,181 was written off in 2025.
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