RELATED PARTY BALANCES AND TRANSACTIONS

9 Months Ended

Sep. 30, 2016

11. RELATED PARTY BALANCES AND TRANSACTIONS

The following is a list of director and related parties to which the Group has transactions with:

(a) Di Xiao, the director of the Company;

(b) Jianping Mao (“Mao”), the wife of the Vice General Manager of Hong Kong Takung.

Amount due from director

Amount due from director consisted of the following for the periods indicated:

	September 30, 2016		December 31, 2015
	(Unaudited)
Di Xiao (a)	$	-	$	520
Total		-		520

Amount due to related party

Amount due to related party consisted of the following as of the periods indicated:

	September 30, 2016		December 31, 2015
	(Unaudited)
Jianpian Mao (b)	$	2,340,895	$	-
Total		2,340,895		-

Related party transactions

Unsecured borrowings from related parties consisted of the following for the periods indicated:

	Three months end September 30, 2016		Three months ended September 30, 2015		Nine months end September 30, 2016		Nine months ended September 30, 2015
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Jianpian Mao (b)	$	2,320,934	$	-	$	2,320,934	$	-
Total		2,320,934		-		2,320,934		-

Interest expenses from related parties consisted of the following for the periods indicated:

	Three months end September 30, 2016		Three months ended September 30, 2015		Nine months end September 30, 2016		Nine months ended September 30, 2015
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Jianpian Mao (b)	$	19,941	$	-	$	19,941	$	-
Total		19,941		-		19,941		-

On August 25, 2016, Hong Kong Takung entered into a loan agreement with Mao for the loan of HK$18,000,000 (US$2,320,934) to Hong Kong Takung. Interest shall accrue at a rate of 8% per annum pro-rated to the actual loan period, which shall be from the date the loan amount is made through December 31, 2016. The loan is to provide Hong Kong Takung with sufficient Hong Kong Dollar-denominated currency to meet its working capital requirements.