RELATED PARTIES TRANSACTIONS

9 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

RELATED PARTIES TRANSACTIONS

6. RELATED PARTIES TRANSACTIONS

The table below sets forth the related parties and their relationships with the Company as of September 30, 2024 and December 31, 2023:

Name of related parties	Relationship with the Company
Yu Yang (“Mr. Yang”)	Controlling shareholder
Jiaocheng Xinmu Trade Co., Ltd (“Jiaocheng Xinmu”)	Controlled by Mr. Yang
Taiyuan Tuohang Logistics Co., Ltd	Controlled by Mr. Yang
Shanxi Xiliu Catering Management Co., Ltd (“Shanxi Xiliu”)	Controlled by Mr. Yang
All Weather (Hainan) Network Sports Co., Ltd	Controlled by Mr. Yang

The related party balances and transactions are as follows:

Amount due from a related party:

		September 30, 2024		December 31, 2023
Shanxi Xiliu Catering Management Co., Ltd	$	–	$	1,695,750

Amounts due from Shanxi Xiliu Catering Management Co., Ltd represents business advances for operational purposes. The balance is unsecured, non-interest bearing and repayable on demand. On June 30, 2024, the Company, Shanxi Xiliu and Jiaocheng Xinmu made an arrangement to legally offset the Company’s receivable from Shanxi Xiliu with the payable to Jiaocheng Xinmu in the amount of $1,656,035 (the “Netting Arrangement”). The amount due from Shanxi Xiliu was fully settled after the Netting Arrangement.

Amounts due to related parties:

		September 30, 2024		December 31, 2023
Yu Yang	(a)	$	419,127	$	278,303
Jiaocheng Xinmu Trade Co., Ltd	(b)		2,440,954		4,109,535
Taiyuan Tuohang Logistics Co., Ltd	(c)		82,787		–
		$	2,942,868	$	4,387,838

(a)	Amounts due to Yu Yang represent payments made to vendors on behalf of the Company for operational purposes. During the three and nine months ended September 30, 2024, apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at different period-end and year-end exchange rates, Yu Yang had paid the operation and administration expenses on behalf of the Company in an aggregate amount of $24,438 and $140,808, respectively
(b)	Amounts due to Jiaocheng Xinmu Trade Co., Ltd represent advances made to the Company for operational purposes. During the three and nine months ended September 30, 2024, apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at different period-end and year-end exchange rates, the Company, Shanxi Xiliu and Jiaocheng Xinmu made the Netting Arrangement to offset the related parties receivable and payable balance. The amount due to Jiaocheng Xinmu was reduced to $2,440,954 after the Netting Arrangement.
(c)	Amounts due to Taiyuan Tuohang Logistics Co., Ltd represent payments made to vendors on behalf of the Company for operational purposes.

Related party transactions:

During the three and nine months ended September 30, 2024, the Company sold products to All Weather (Hainan) Network Sports Co., Ltd in aggregate amounts of $144,700 and $144,700, respectively.