| RELATED PARTY BALANCES AND TRANSACTIONS |
Note 16. RELATED PARTY BALANCES AND
TRANSACTIONS
Set forth below are transactions with related
persons for the years ended June 30, 2026 and 2025.
Due from
Related Party
As of June 30, 2026 and 2025, the outstanding
amounts due from related parties consist of the following:
| |
|
As of |
|
|
As of |
|
| |
|
June 30, |
|
|
June 30, |
|
| |
|
2026 |
|
|
2025 |
|
| Shanghai Baoyin Industrial Co., Ltd (1) |
|
$ |
1,145,307 |
|
|
$ |
1,084,793 |
|
| Zhejiang Jinbang Fuel Energy Co., Ltd (2) |
|
|
410,168 |
|
|
|
388,496 |
|
| Less: impairment for credit losses |
|
|
(1,555,475 |
) |
|
|
(1,473,289 |
) |
| Total |
|
|
- |
|
|
|
- |
|
Movements of allowance for credit losses were
as follows:
| |
|
June 30, |
|
|
June 30, |
|
| |
|
2026 |
|
|
2025 |
|
| Beginning balance |
|
$ |
1,473,289 |
|
|
$ |
2,122,376 |
|
| Less: Write-off |
|
|
- |
|
|
|
(675,063 |
) |
| Exchange rate effect |
|
|
82,186 |
|
|
|
25,976 |
|
| Ending balance |
|
$ |
1,555,475 |
|
|
$ |
1,473,289 |
|
| (1) |
As of June 30, 2026, and 2025, the Company advanced $1,145,307
and $1,084,793
to Shanghai Baoyin Industrial Co., Ltd. (“Shanghai Baoyin”) which is 30%
owned by Qinggang Wang, CEO and legal representative of Trans Pacific Logistic Shanghai Ltd. The advance is non-interest bearing and due
on demand. The Company provided full credit losses for the balance of the receivable. The amount due from Shanghai Baoyin changed was
as a result of changes in exchange rates. |
| (2) |
As of June 30, 2026, and 2025, the Company advanced $410,168
and $388,496 to
Zhejiang Jinbang Fuel Energy Co., Ltd (“Zhejiang Jinbang”) which is 30%
owned by Mr. Wang Qinggang, CEO and legal representative of Trans Pacific Shanghai. The advance is non-interest bearing. The Company provided
full credit losses for the balance of the receivable. The amount due from Zhejiang Jinbang changed was as a result of changes in exchange
rates. |
Due to related
parties
As of
June 30, 2026 and 2025, the Company owed $27,845
and $26,373
to Qinggang Wang, CEO and legal representative of Trans Pacific Shanghai, respectively. These payments were made on behalf of the Company
for the daily business operational activities.
As of
June 30, 2026 and 2025, the Company owed $1,146,026
and $497,858
Zhejiang Jinbang Fuel Energy Co., Ltd (“Zhejiang Jinbang”) which is 30%
owned by Mr. Wang Qinggang, CEO and legal representative of Trans Pacific Shanghai. These payments were made on behalf of the Company
for the daily business operational activities.
The balance of due to related parties was interest-free,
unsecured, and due upon demand.
|