RELATED PARTIES TRANSACTIONS

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTIES TRANSACTIONS

7. RELATED PARTIES TRANSACTIONS

The table below sets forth the related parties and their relationships with the Company as of June 30, 2023 and December 31, 2022: 

Name of related parties	Relationship with the Company
Yu Yang (“Mr. Yang”)	Controlling shareholder
Jiaocheng Xinmu Trade Co., Ltd	Controlled by Mr. Yang
Shanxi Qiansui Automobile Trading Co., Ltd	Controlled by Mr. Yang
Taiyuan Tuohang Logistics Co., Ltd	Controlled by Mr. Yang
Shanxi Xiliu Catering Management Co., Ltd	Controlled by Mr. Yang
Xiao Yang	Legal representative of Jiaocheng Xinmu Trade Co., Ltd

The related party balances as of June 30, 2023 and December 31, 2022 and transactions for the three and six months ended June 30, 2023 and 2022 are as follows:

Amounts due from related parties:

		June 30, 2023		December 31, 2022
Shanxi Qiansui Automobile Trading Co., Ltd	(a)	$	–	$	279,342
Shanxi Xiliu Catering Management Co., Ltd	(b)		1,659,189		1,418,110
		$	1,659,189	$	1,697,452

(a) Amounts due from Shanxi Qiansui Automobile Trading Co., Ltd (“Shanxi Qiansui Automobile”) represent borrowings to a related party. From November to December, 2022, Qiansui Media entered into four agreements with Shanxi Qiansui Automobile whereby Qiansui Media loaned an aggregate sum of $279,342 (RMB1,930,000) to Shanxi Qiansui Automobile for business purpose. These are one-year term loans, unsecured and non-interest bearing with maturity dates on November 7, 2023, November 8, 2023, November 12, 2023 and December 4, 2023, respectively. During the six months ended June 30, 2023, Shanxi Qiansui Automobile had fully repaid these loans.

(b) Amounts due from Shanxi Xiliu Catering Management Co., Ltd (“Shanxi Xiliu Catering”) represents business advances for operational purposes. The balance is unsecured, non-interest bearing and repayable on demand. During the year ended December 31, 2022, the Company repaid $769,776 to fully settle the balance of amount due to Shanxi Xiliu Catering, and the Company paid an additional $1,418,110 in connection with the business advance made to and expenses paid on behalf for Shanxi Xiliu Catering. During the six months ended June 30, 2023, the Company paid $241,079 in connection with the business advance made to and expenses paid on behalf for Shanxi Xiliu Catering.

Amounts due to related parties:

		June 30, 2023		December 31, 2022
Yu Yang	(a)	$	205,311	$	4,487
Jiaocheng Xinmu Trade Co., Ltd	(b)		4,020,842		3,347,522
Taiyuan Tuohang Logistics Co., Ltd	(a)		6,401		5,780
Xiao Yang	(a)		–		–
		$	4,232,554	$	3,357,789

(a) Amounts due to Yu Yang, Taiyuan Tuohang Logistics Co., Ltd (“Taiyuan Tuohang Logistics “) and Xiao Yang represent advances made to the Company for operational purposes. During the six months ended June 30, 2023, Xiao Yang advanced $844 to the Company, which the Company had fully repaid the amount due to Xiao Yang in the same period. No repayment was made to Yu Yang and Taiyuan Tuohang Logistics during the six months ended June 30, 2023.

(b) As of June 30, 2023, amounts due to Jiaocheng Xinmu Trade Co., Ltd (“Jiaocheng Xinmu”) represent advances made to the Company for operational purposes. From time to time during the six months ended June 30, 2023, Jiaocheng Xinmu made advance to and paid expenses on behalf of the Company amounting to a total of $955,400. During the six months ended June 30, 2023, the Company had repaid $282,080 to Jiaocheng Xinmu.   As of December 31, 2022, amounts due to Jiaocheng Xinmu Trade Co., Ltd (“Jiaocheng Xinmu”) comprised of accounts receivables $472,230 represent the products sold to Jiaocheng Xinmu and $3,819,752 advances made to the Company for operational purposes. During the year ended December 31, 2022, the Company sold products to Jiaocheng Xinmu amounting to $488,199, representing 84.2% of the Company’s revenue. In addition, from time to time during the year ended December 31, 2022, Jiaocheng Xinmu made advance to and paid expenses on behalf of the Company amounting to a total of $3,516,273.

Related party transactions:

	For the three months ended June 30,
	2023		2022
Jiaocheng Xinmu Trade Co., Ltd	$	–	$	134,087

	For the six months ended June 30,
	2023		2022
Jiaocheng Xinmu Trade Co., Ltd	$	–	$	134,087

Nature of transactions:

During the three and six months ended June 30, 2022, the Company sold products to Jiaocheng Xinmu amounting to $134,087, representing 68% and 56% of the Company’s revenue.