| RELATED PARTY TRANSACTIONS AND BALANCES |
12. RELATED PARTY TRANSACTIONS AND BALANCES 1) Nature of relationships with related parties The table below sets forth the major related parties and their relationships with the Company, with which the Company entered into transactions during the six months ended June 30, 2026 and 2025, or recorded balances as of June 30, 2026 and December 31, 2025. | Name | | Relationship with the Company | | Mr. Zhu Jian | | Chief Executive Officer, Director and principal Shareholder of the Company | | Mr. Wang Jun | | Chief Executive Officer of Weitong and principal Shareholder of the Company | | Mr. Tang Jing | | Chief Financial Officer and principal Shareholder of the Company | | Mr. Wang Jixiang | | An immediate family member of Mr. Wang Jun | | Healthy Great Investing Company Limited (“Healthy Great”) | | Wholly owned by Mr. Zhu Jian | | Smartest Star Investing Company Limited (“Smartest Star”) | | Wholly owned by Mr. Wang Jun | | Scenery Investing Company Limited (“Scenery”) | | Wholly owned by Mr. Tang Jing | | Yanyan Global Company Limited (“Yanyan Global”) | | Company controlled by Mr. Wang Jun | | Skinist Global Cosmetics (Shanghai) Co., Ltd. (“Skinist Shanghai”) | | Company controlled by Mr. Wang Jun | | Shanghai Yingtian Financial Information Service Co., Ltd. (“Ying Tian”) | | Company controlled by Mr. Zhu Jian and Mr. Tang Jing | | Shanghai Jingrong Information Co., Ltd. (“Jingrong”) | | Company controlled by the spouse of Mr. Tang Jing | | Shanghai Youshan Corporate Consulting Co., Ltd. (“Youshan”) | | Company controlled by Ms. Mu Xuemei, the director of the Company | | Shanghai Tengxin Advertising Co., Ltd. (“Teng Xin”) | | Company controlled by Ms. Pan Yue, a supervisor of Weitong, a subsidiary of the Company | | Shanghai Zhiwang Cosmetics Co., Ltd. (“Zhi Wang”) | | Company controlled by Ms. Mu Xuemei, a director of the Company | | Shanghai Zhimeisi Beauty Technology Co., Ltd (“Zhi Mei Si”) | | Company over which Mr. Zhu Jian owns 20% equity interest and exercises significant influence | | Shanghai Libo Medical Beauty Clinic Co., Ltd (“Li Bo”) | | Controlled by Zhi Mei Si | | Shanghai Yaxing Commercial Consulting Co., Ltd. (“Ya Xing”) | | Controlled by Mr. Tang Jing | | Shanghai Jing Yu Enterprise Investment Management Co., Ltd. (“Jing Yu”) | | Company controlled by Mr. Wang Jun | | Shanghai Jing Neng Enterprise Co., Ltd. (“Jing Neng”) | | Company controlled by Mr. Wang Jun | 2) Transactions with related parties | | | For the Six Months Ended
June 30, | | | | | 2026 | | | 2025 | | | Sales of products to a related party | | | | | | | | Mr. Wang Jixiang | | $ | 95,312 | | | $ | — | | | | | $ | 95,312 | | | $ | — | | | | | | | | | | | | | Purchase of products from a related party | | | | | | | | | | Youshan | | $ | — | | | $ | 866,846 | | | | | $ | — | | | $ | 866,846 | | | | | | | | | | | | | Service fees charged by a related party | | | | | | | | | | Jingrong | | $ | — | | | $ | 98,666 | | | | | $ | — | | | $ | 98,666 | | | | | | | | | | | | | Payment of dividends | | | | | | | | | | Healthy Great | | $ | 19,171 | | | $ | — | | | Smartest Star | | | 19,171 | | | | — | | | Scenery | | | 19,171 | | | | — | | | Mr. Zhu Jian | | | — | | | | 19,251 | | | Mr. Wang Jun | | | — | | | | 19,251 | | | Mr. Tang Jing | | | — | | | | 19,251 | | | Payment of dividends | | $ | 57,513 | | | $ | 57,753 | | | | | | | | | | | | | Net settlement (1) | | | | | | | | | | Reduction of dividend payables due to disposal of discontinued operations | | $ | — | | | $ | 9,988,060 | | | Net settlement of dividends payable with due from related parties from continuing operations | | | 688,314 | | | | 4,567,520 | | | Net settlement of due from related parties and due to related parties within continuing operations | | | 1,454,026 | | | | 437,699 | | | Net settlement of due from related parties and due to related parties between continuing operations and discontinued operations | | | — | | | | 961,649 | | | | | $ | 2,142,340 | | | $ | 15,954,928 | | | (1) | During the six months ended June 30, 2025, the Company and certain related parties entered into certain net settlement agreements, pursuant to which all parties agreed that: 1) the Company’s dividend payables of $9,988,060 was reduced due to disposal of discontinued operations; 2) the Company’s dividend payables of $4,567,520 was netted off against the Company’s receivables of $4,567,520 as recorded in continuing operations; and 3) the Company’s payables of $1,399,348 was netted off against the Company’s receivables of $1,399,348 due from respective related parties. Among the Company’s payables of $1,399,348 due to related parties, $437,699 and $961,649 were related to payables of continuing operations and discontinued operations, respectively. During the six months ended June 30, 2026, the Company and certain related parties entered into certain net settlement agreements, pursuant to which all parties agreed that: 1) the Company’s dividend payables of $688,314 was netted off against the Company’s receivables of $688,314 as recorded in continuing operations; and 2) the Company’s payables of $1,454,026 was netted off against the Company’s receivables of $1,454,026 due from respective related parties. | (Advances to) Collection of advances from related parties During the six months ended June 30, 2026 and 2025, the Company made advances of $2,261,306 and $nil to certain related parties, respectively. The advances were interest free and repayable on demand. During the six months ended June 30, 2026 and 2025, the Company collected advances of $51,003 and $nil from these related parties, respectively. | | | For the Six Months Ended June 30, | | | | | 2026 | | | 2025 | | | | | Advances | | | Collection
of advances | | | Advances | | | Collection
of advances | | | Ying Tian | | $ | (1,085,423 | ) | | $ | — | | | $ | — | | | $ | — | | | Skinist Shanghai | | | (971,016 | ) | | | 51,003 | | | | — | | | | — | | | Yanyan Global | | | (204,867 | ) | | | — | | | | — | | | | — | | | | | $ | (2,261,306 | ) | | $ | 51,003 | | | $ | — | | | $ | — | | Borrowings from (Repayment of Borrowings to) related parties | | | For the Six Months Ended June 30, | | | | | 2026 | | | 2025 | | | | | Borrowings | | | Repayment
of borrowings | | | Borrowings | | | Repayment
of borrowings | | | Zhi Wang | | | 2,517,543 | | | | (2,376,768 | ) | | | | | | | — | | | Mr. Zhu Jian | | $ | 1,028,538 | | | $ | (174,959 | ) | | $ | — | | | $ | (144,279 | ) | | Mr. Tang Jing | | | 291,443 | | | | (2,500 | ) | | | 1,296,087 | | | | — | | | Youshan | | | — | | | | — | | | | 500,510 | | | | (740,424 | ) | | Li Bo | | | — | | | | — | | | | 896,230 | | | | (326,366 | ) | | Yanyan Global | | | — | | | | — | | | | 57,628 | | | | (141,241 | ) | | Skinist Shanghai | | | — | | | | — | | | | — | | | | — | | | Ying Tian | | | — | | | | — | | | | — | | | | (4,009,597 | ) | | Teng Xin | | | — | | | | — | | | | — | | | | (196,868 | ) | | Zhi Mei Si | | | — | | | | — | | | | — | | | | (3,861 | ) | | Jing Yu | | | — | | | | — | | | | — | | | | (275,763 | ) | | Jing Neng | | | — | | | | — | | | | — | | | | (137,882 | ) | | Scenery | | | — | | | | — | | | | — | | | | (2,000 | ) | | Ya Xing | | | — | | | | (87,433 | ) | | | — | | | | | | | Mr. Wang Jixiang | | | — | | | | (2,015 | ) | | | 275,763 | | | | (468,796 | ) | | Others | | | 9,583 | | | | — | | | | — | | | | — | | | | | $ | 3,847,107 | | | $ | (2,643,675 | ) | | $ | 3,026,218 | | | $ | (6,447,077 | ) | | (1) | During the six months ended June 30, 2026 and 2025, the Company borrowed $3,847,107 and $3,026,218 from these related parties, respectively. The borrowings were interest free, and outstanding loans are repayable within twelve months from borrowings. | 3) Balances with related parties As of June 30, 2026 and December 31, 2025, the balances with related parties were as follows: — Due to related parties, non-current | | | June 30,
2026 | | | December 31,
2025 | | | Dividends payable(1) | | | | | | | | Healthy Great | | $ | 2,268,472 | | | $ | 3,081,844 | | | Smartest Star | | | 1,088,340 | | | | 1,115,820 | | | Scenery | | | 409,013 | | | | 431,370 | | | | | $ | 3,765,825 | | | $ | 4,629,034 | | | Other payable(2) | | | | | | | | | | Ya Xing | | $ | — | | | $ | 85,796 | | | | | | — | | | | 85,796 | | | Total | | $ | 3,765,825 | | | $ | 4,714,830 | | | (1) | As of June 30, 2026, the dividend payable due to shareholders were due on July 2027. The Company recorded the dividends payable as non-current liabilities. For the six months ended June 30, 2026 and 2025, the Company net settled dividends payable of $688,314 and $14,555,580 through net-settlement agreements with respective related parties. |
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