v3.26.3
Related Party Transactions
 12 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 12 – RELATED PARTY 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. The related parties that had transactions or balances with the Company as of and for the years presented consisted of:

 

Related Party   Relationship with the Company
Xiao Feng Yang   Chairman of the Board
Raymond Ming Hui Lin   CEO of the Company
EMIT   Equity investee of the Company
Beijing Bright Technology Co., Ltd (“Beijing Bright”)   Noncontrolling interest shareholder of JAJI China
UniDev   Equity investee of the Company
Fuson Group   Equity investee of the Company
Qinhui   Equity investee of the Company
MCT   Noncontrolling interest shareholder of MSCT
Qin Er Lin   Immediate family member of the CEO

 

 

(a) Related party balances

 

The balances due from related parties were as follows:

 

    As of June 30,  
    2026     2025  
Due from related parties, current:            
Fuson Group (a)     4,123,151       4,628,295  
Qin Er Lin (c)     11,741       -  
UniDev     9,432       -  
Less: allowance for credit losses     (3,059,319 )     (253,700 )
Total     1,085,005       4,374,595  
                 
Due from related parties, non-current:                
Fuson Group (b)     2,399,559       2,069,730  
Qin Er Lin (c)     52,018       -  
Less: allowance for credit losses     (861,920 )     (123,770 )
Total     1,589,657       1,945,960  

 

(a) The balances represent loans due from Fuson Group which should be repaid within one year. The interest rates for the loans ranged from 3.5% to 4.10% and 4.0% to 4.10% as of June 30, 2026 and 2025, respectively.
   
(b) The balance represents loans due from Fuson Group with 6.50% interest rate, which should be repaid within 30 months.
   
(c) The balance represent the loan due from Qin Er Lin which should be repaid within five years. The interest rates for the loan was 4.0% as of June 30, 2026.Qin Er Lin repaid the loan from related parties on October 8, 2026.

 

Loans due from Fuson Group are carried at the original loan principal balances less allowance for credit losses. The estimated credit losses charged to the allowance is classified as “General and administrative expenses” in the consolidated statements of comprehensive loss.

 

The Company considered the financial conditions of Fuson Group and adjusted for various qualitative factors that reflect current conditions and reasonable and supportable forecasts of future economic conditions in determining the amount of the allowance for credit losses for the year ended June 30, 2025.

 

During the year ended June 30, 2026, certain loans receivable from Fuson Group were not repaid on schedule and were extended. The Company assessed that Fuson Group is experiencing financial difficulty, and the repayment is expected to be provided substantially through sale of the collateral. Consequently, the Company assessed credit losses for loans receivable from Fuson Group using a collateral-dependent approach as of June 30, 2026. Under this method, the estimated credit loss is determined by comparing the loan balance to the fair value of the underlying collateral, less costs to sell. The Company calculates the fair value of the collateral using a market approach, in which most of the inputs are observable.

 

 

The following table presents the aging of past-due gross due from related parties as of June 30, 2026 and 2025:

 

    1 to 3 months past due    

4 to 6 months

past due

    

7 to 12 months

past due

    

Over 1 year

past due

     Total  
June 30, 2025     1,707,242       767,770       418,784       -       2,893,796  
June 30, 2026     -       -       861,920       3,055,224       3,917,144  

 

Movement of allowance for due from related parties for the years ended June 30, 2026, 2025 and 2024 are as follows:

 

    For the year ended  
    2026     2025     2024  
Balance at beginning of the year     377,470       225,788       -  
Provision for credit losses     3,606,271       237,747       225,788  
Recovery of due from related parties     (62,502 )     (86,235 )     -  
Foreign currency translation adjustments     -       170       -  
Balance at end of the year     3,921,239       377,470       225,788  

 

The balances due to related parties were as follows:

 

    As of June 30,  
    2026     2025  
Due to related parties:            
Qinhui     58,732       -  
Fuson Group     14,711       14,917  
MCT     1,951       4,188  
UniDev     -       2,779  
Total     75,394       21,884  

 

As of June 30, 2026, the balance due to related parties primarily consisted of the loan from Qinhui, which is repayable within one year and bears an interest rate of 0%, deposits received from Fuson Group and unpaid administrative fees payable to MCT.

 

As of June 30, 2025, the balance due to related parties mainly represented deposits received from Fuson Group and unpaid administrative fees payable to MCT and UniDev.

 

 

(b) Related party transactions

 

    For the year ended  
    2026     2025     2024  
a) Consulting services provided to related parties                  
Fuson Group     80,775       116,760       87,172  
                         
b)Solution services provided to related parties                        
Fuson Group     238,776       -       -  
                         
c) Services provided by related parties                        
UniDev     7,206       35,396       165,676  
Fuson Group     27,166       13,758       18,894  
Beijing Bright     2,135       4,830       -  
      36,507       53,984       184,570  
                         
d) Loans provided to related parties                        
Fuson Group     959,360       2,984,351       6,043,329  
Qin Er Lin     64,006       -       -  
Beijing Bright     -       -       415,236  
UniDev     -       -       55,365  
      1,023,366       2,984,351       6,513,930  
e) Repayment of loans from related parties                        
Fuson Group     811,272       2,936,754       194,897  
Beijing Bright     -       -       415,236  
UniDev     -       -       193,777  
      811,272       2,936,754       803,910  
f) Interest income received from related parties                        
Fuson Group     128,157       293,103       14,481  
UniDev     -       -       8,549  
Beijing Bright     -       -       2,907  
      128,157       293,103       25,937  
                         
g) Loans provided from related parties                        
Qinhui     56,977       -       -  
                         
h) Rental income from related party                        
Fuson Group     59,071       59,241       59,016  
                         
i) Other revenue from related party                        
Fuson Group     -       134,933       61,244