17. RELATED PARTY TRANSACTIONS AND BALANCES

1.Related Party Balances

1)Due from related parties

As of December 31, 2019, due from Mashang Chuxing was $81,233, which represented the funds Yicheng provided to support the operations of Mashang Chuxing since August 2019. Other balances due from related parties were $12,260 and represented operation costs of four related parties paid by the Company on their behalf, amounts received by the Company on behalf of a related party for refund of insurance claims, and amounts collected by a related party on behalf of the Company from the automobile purchasers, including certain installment payments and facilitation fees. In addition, another $14,361 represents advances to the non-controlling shareholders of Hunan Ruixi for operational purposes. The balances due from related parties were all non-interest bearing and due on demand.

2)Due to stockholders

This is comprised of amounts payable to two stockholders and are unsecured, interest free and due on demand.


	December 31,		March 31,
	2019		2019
	(Unaudited)
Jun Wang	$	74,640	$	107,233
Xiang Hu		69,816		972,814
Total due to stockholders	$	144,456	$	1,080,047
Total due to stockholders - discontinued operations		(144,456)		(1,080,047)
Total due to stockholders - continuing operations	$	—	$	—

3)Due to related parties and affiliates


	December 31,		March 31,
	2019		2019
	(Unaudited)
Loan payable to related parties (i)	$	260,782	$	95,781
Other payables due to related parties (ii)		—		297,978
Others (iii)		70,014		22,172
Total due to related parties and affiliates		330,796		415,931
Total due to related parties and affiliates – discontinued operations		(118,652)		—
Total due to related parties and affiliates – continuing operations	$	212,144	$	415,931

(i)

As of December 31, 2019 and March 31, 2019, the balances represented borrowings from three related parties, which is unsecured, interest free and due in the fiscal year of 2020. The balance as of March 31, 2019 bore an interest rate of 10% per annum and is due in the fiscal year of 2020.

(ii)

As of March 31, 2019, the balance represented borrowings from two related parties, who obtained borrowings from the online P2P lending platform of Sichuan Senmiao and then loaned the money to Jinkailong. The balance bore an interest rate of 8.22% per annum and was fully repaid in April 2019.

(iii)

As of December 31, 2019 and March 31, 2019, the balances represented $70,014 of payables to three other related parties for operational purposes. These balances are interest free and due on demand.

Interest expense for the three months ended December 31, 2019 and 2018 were $750 and $3,246, respectively. Interest expense for the nine months ended December 31, 2019 and 2018 were $28,772 and $3,246, respectively.

2.Related Party Transactions

In December 2017, the Company entered into loan agreements with two stockholders, who agreed to grant lines of credit of approximating $955,000 and $159,000, respectively, to the Company for five years. The lines of credit are non-interest bearing, effective from January 2017. As of December 31, 2019, the outstanding balances were $69,816 and $74,640, respectively.

The Company entered into two office lease agreements which expire on January 1, 2020. On April 1, 2018, the two office leases were modified with the leasing term from April 1, 2018 to March 31, 2021. For the three months ended December 31, 2019 and 2018, the Company paid $27,415 and $11,278, respectively, to the stockholder in rental expenses. For the nine months ended December 31, 2019 and 2018, the Company paid $82,246 and $69,182 in rent, respectively, to the stockholder.

In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. ("Dingchentai"), a company where one of our independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019. For the three months ended December 31, 2019 and 2018, the Company paid $20,725 and $0 in rent, respectively, to Dingchentai. For the nine months ended December 31, 2019 and 2018, the Company paid $31,180 and $0 in rent, respectively, to Dingchentai.

Before the acquisition of Hunan Ruixi, five related parties of Jinkailong borrowed funds of $747,647 through the online P2P lending platform of Sichuan Senmiao and then loaned the money to Jinkailong. As of March 31, 2019, the outstanding balance was $297,978. During the three months ended June 30, 2019, Jinkailong repaid all of the loans. Those loans bore interest rates ranging from 7.68% to 8.22% per annum and the interest expense for the three and nine months ended December 31, 2019 was $0 and $12,184, respectively.