Related Party Balance and Transactions

6 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

RELATED PARTY BALANCE AND TRANSACTIONS

Note 20. RELATED PARTY BALANCE AND TRANSACTIONS

Due from related party, net

As of December 31, 2021 and June 30, 2020, the outstanding amounts due from related parties consist of the following:

	December 31,		June 30,
	2021		2021
Tianjin Zhiyuan Investment Group Co., Ltd. (1)	$	-	$	384,331
Zhejiang Jinbang Fuel Energy Co., Ltd (2)		437,922		430,902
Shanghai Baoyin Industrial Co., Ltd (3)		1,334,755		-
Less: allowance for doubtful accounts		-		(384,331	)
Total	$	1,772,677	$	430,902

(1) In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan Investment Group Co., Ltd. (“Zhiyuan Investment Group”) and TEWOO Chemical& Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, “Zhiyuan”). Zhiyuan Investment Group is owned by Mr. Zhong Zhang. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment Group whereby it would provide certain advisory services and help control potential commodities loss during the transportation process. To the Company’s knowledge, Mr. Zhang does not own shares of the Company as of June 30, 2021 and is no longer a related party. Management reassessed the collectability and decided to provide full allowance for doubtful accounts as of June 30, 2021. The Company wrote off the balance for the three and six months ended December 31, 2021.

(2) The Company advanced Zhejiang Jinbang Fuel Energy Co., Ltd (“Zhejiang Jinbang”), which is owned by Mr. Wang Qinggang, CEO and legal representative of Trans Pacific Logistic Shanghai Ltd., $477,278. Zhejiang Jinbang returned $39,356 for the year ended June 30, 2021. The advance is non-interest bearing and due on demand.

(3) The Company advanced Shanghai Baoyin Industrial Co., Ltd. which is 30% owned by Wang Qinggang, CEO and legal representative of Trans Pacific Logistic Shanghai Ltd., $1,470,922 for the six months end December 31, 2021. Shanghai Baoyin Industrial Co., Ltd repaid $136,167. The advance is non-interest bearing and due on demand. The Company expects to collect the advance before March 31, 2022.

Loan receivable- related parties

As of December 31, 2021 and June 30, 2021, the outstanding amounts loan receivable from related parties consist of the following:

	December 31,		June 30,
	2021		2021
Wang, Qinggang (1)	$	629,416	$	619,329
Shanghai Baoyin Industrial Co., Ltd (2)		4,133,219		4,025,640
Total	$	4,762,635	$	4,644,969

(1) On June 10, 2021, the Company entered a loan agreement with Wang Qinggang, CEO and legal representative of Trans Pacific Logistic Shanghai Ltd. The loan is non-interest bearing and amounted to $620,478 (RMB 4 million) and will be repaid in June 2023. There has been no change in the balance other than exchange difference.

(2) On April 10, 2021, the Company entered into a loan agreement with Shanghai Baoyin Industrial Co., Ltd. which is 30% owned by Wang Qinggang. The loan amounted to $4,644,969 (RMB 30,000,000). $619,329 (RMB 4,000,000) has been repaid as of June 30, 2021.  For the three months ended December 31, 2021, Shanghai Baoyin Industrial Co., Ltd borrowed $42,013(RMB 267,000) and the rest of the loan $4,133,219 (RMB 26,267,000) is to be repaid in April 2023. The loan is unsecured and non-interest bearing.

Other payable related party

As of December 31, 2021, the Company had payable to CFO of $2, 000 which were included in other payable. As of June 30, 2021, the Company had payable to former CEO of $11,303 and to the then acting CFO of $2,516 which were included in other current liabilities. These payments were made on behalf of the Company for the daily business operational activities.

Revenue - related parties

For the three and six months ended December 31, 2021 and 2020, revenue from related party Zhejiang Jinbang amounted to $233,705 and nil, respectively.