NOTE 6 - RELATED PARTY TRANSACTIONS

The following is a list of related parties to which the Company has transactions with:

(a)

Xiangbin Meng (“Meng”), the Company’s Chairman and a shareholder of Beijing Jiucheng;

(b)

Jiuyuan Investment Co., Ltd. (“Jiuyuan”), a shareholder of Beijing Jiucheng;

(c)

Beijing JiuCheng Huijin Information Consulting Co., Ltd (“Jiucheng Huijin”), an affiliated Company;

(d)

Yasheng International Investment Ltd. (“Yasheng”), a former shareholder of Beijing Jiucheng;

(e)

Beijing Jiuyuan Investment Share Holding Co., Ltd (“Beijing Jiuyuan”), an affiliated Company;

	(f)	Beijing Jiuxiang Financing Lease Co., Ltd. (“Jiuxiang”), an affiliated Company.

	(g)	Beijing Hengjiu Investment Management Co.,Ltd (“Beijing Hengjiu”), an affiliated Company

	(h)	Yangming Development Limited (“Yangming”), a shareholder of the Company

Amount due from related parties:

Amount due from related parties consisted of the following as of:

	March 31, 2018		December 31, 2017
Xiangbin Meng – Fees Receivable	$	97,997	$	3,444
Jiuyuan		20,873		20,204
Beijing Hengjiu		53,286		51,653
Total	$	172,156	$	75,301

Prior to July 2017, Meng collected the service fees from the loan borrowers on behalf of the Company, Zhongcheng Zhengxin, and Hengjiu. Meng then distributed to each party in accordance to the predetermined service fees percentage. As of March 31, 2018 and December 31, 2017, amount due from Meng for service revenue collected by Meng on the Company’s behalf and not yet distribute to the Company was $97,997 and $3,444, respectively.

Beijing Jiucheng is 70% owned by Jiuyuan. From time to time, the Company and Jiuyuan paid general and administrative expenses for each other. During the three months ended March 31, 2018 and 2017, Jiuyuan paid on behalf of the Company for working capital totaled $31 and $3,660, respectively. The Company made advances to Jiuyuan for working capital totaled $0 and $9,165,199, respectively and received repayments totaled $-0- and $5,415,895, respectively. The Company received advances from Jiuyuan for working capital totaled $0 and $3,576,355, respectively. As of March 31, 2018 and December 31, 2017, the Company has an amount due from Jiuyuan of $20,873 and $20,204, respectively.

Beijing Hengjiu is 75% owned by Jiuyuan and 25% owned by Meng. During the three months ended March 31, 2018 and 2017, Beijing Hengjiu paid on behalf of the Company for working capital totaled $157 and $-0-, respectively. As of March 31, 2018 and December 31, 2017, the Company has an amount due from Beijing Hengjiu of $53,286 and $51,653, respectively.

Amount due to related parties

Amount due to related parties consisted of the following as of:

	March 31, 2018		December 31, 2017
Jiucheng Huijin		2,601		10,199
Beijing Jiuyuan		2,545		2,460
Jiuxiang		6,298		6,087
Yangming		5,107		4,936
Total	$	16,551	$	23,682

Jiucheng Huijin is 30% owned by Meng. From time to time, Jiucheng Huijin paid general and administrative expenses on behalf of the Company. As of March 31, 2018 and December 31, 2017, the Company recorded $2,601 and $10,199 due to Jiucheng Huijin, respectively.

On June 30, 2016, Jiucheng Huijin entered a contract to lease two vehicles from the Company. The contract started on June 30, 2016 and expired on January 31, 2018. Pursuant to the terms of the contract, Jiucheng Huijin has agreed to pay a monthly rental fee of RMB 25,000 (approximately $3,600) per vehicle. The Company recorded a rental income of $7,848 and $21,763 for the three months ended March 31, 2018 and 2017, respectively as part of other income in the accompanying condensed consolidated statements operations and comprehensive income.

Beijing Jiuyuan is 51% owned by Meng. On October 21, 2015, Beijing Jiuyuan entered into a six-year lease (“Chaoyang Lease”) and the lease was subsequently transferred to Jiuxiang on August 12, 2016. The Company shares the office space with Beijing Jiuyuan and three other affiliated companies under the Chaoyang Lease. The rent expense allocated to the Company each month is in accordance to the number of employees occupied in the office space. As of March 31, 2018 and December 31, 2017, amounts due to Beijing Jiuyuan related to rent expense were $2,545 and $2,460, respectively.

Jiuxiang is 75% owned by Jiuyuan. As mentioned above, Jiuxiang took over the lease since August 12, 2016. As of March 31, 2018 and December 31, 2017, the Company recorded $6,298 and $6,087 due to Jiuxiang, respectively, for the rent expense.

Yangming owns 26.3% of the Company. Yangming paid general and administrative expenses on behalf of the Company, As of March 31, 2018 and December 31, 2017, the Company recorded $5,107 and $4,936 due to Yangming, respectively.

For the three months ended March 31, 2018 and 2017, due to (from) related party activities consisted of the following:

	Jiuyuan			Meng		Meng - Receivable			Yasheng		Jiucheng Huijin			Beijing Jiuyuan		Jiuxiang		Beijing Hengjiu			Yangming		Total
Balance due (from) to related parties, December 31, 2017	$	(20,204	)	$	-	$	(3,444	)	$	-	$	10,199		$	2,460	$	6,087	$	(51,653	)	$	4,936	$	(51,619	)
Operating activities - Due from related parties		31			-		(93,199	)		-		-			-		-		157			-		(93,011	)
Financing activities - Repayments to related parties		-			-		-			-		(7,848	)		-		-		-			-		(7,848	)
Effect of foreign currency exchange		(700	)		-		(1,354	)		-		250			85		211		(1,790	)		171		(3,127	)
Balance due (from) to related parties, March 31, 2018	$	(20,873	)	$	-	$	(97,997	)	$	-	$	2,601		$	2,545	$	6,298	$	(53,286	)	$	5,107	$	(155,605	)

		Jiuyuan			Meng			Meng - Receivable			Yasheng		Jiucheng Huijin			Beijing Jiuyuan			Jiuxiang			Beijing Hengjiu		Yangming		Total
Balance due (from) to related parties, December 31, 2016	$	378,950		$	(11,311,447	)	$	(1,877,130	)	$	8,917	$	5,867		$	2,304		$	1,263		$	-	$	-	$	(12,791,276	)
Operating activities - Due from related parties		-			-			(315,707	)		-		(20,950	)		(2,322	)		(277	)		-		-		(339,256	)
Operating activities - Due to related parties		3,660			-			-			-		-			-			-			-		-		3,660
Investing activities - Working capital advances to related parties		(9,165,199	)		-			-			-		-			-			-			-		-		(9,165,199	)
Investing activities - Repayments from related parties		5,415,895			991,112			-			-		-			-			-			-		-		6,407,007
Financing activities - Advances from related parties		3,576,355			(29,506	)		-			-		-			-			-			-		-		3,546,849
Non-cash Capital reduction		8,124,744			3,482,033			-			-		-			-			-			-		-		11,606,777
Internal transfers		(8,174,148	)		6,953,828			1,220,320			-		-			-			-			-		-		-
Effect of foreign currency exchange		2,697			(115,497	)		(13,186	)		59		59			18			8			-		-		(125,842	)
Balance due (from) to related parties, March 31, 2017	$	162,954		$	(29,477	)	$	(985,703	)	$	8,976	$	(15,024	)	$	-		$	994		$	-	$	-	$	(857,280	)