RELATED PARTIES TRANSACTIONS

12 Months Ended

Dec. 31, 2024

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 December 31, 2024 and 2023:

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

The related party balances and transactions as of and for the years ended December 31, 2024 and 2023 are as follows:

Amounts due from a related party:

	As of December 31,
		2024		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 $1,695,750 (the “Netting Arrangement”). The amount due from Shanxi Xiliu was fully settled after the Netting Arrangement.

Amounts due to related parties:

		As of December 31,
		2024		2023
Yu Yang	(a)	$	441,151	$	278,303
Jiaocheng Xinmu Trade Co., Ltd	(b)		2,346,889		4,109,535
Taiyuan Tuohang Logistics Co., Ltd	(c)		117,324		–
		$	2,905,364	$	4,387,838

(a)	Amounts due to Yu Yang represent payments made to vendors on behalf of the Company for operational purposes. During the years ended December 31, 2024 and 2023, apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at year-end exchange rates, Yu Yang had paid the operation and administration expenses on behalf of the Company in an aggregate amount of $162,970 and $258,311, respectively
(b)	Amounts due to Jiaocheng Xinmu Trade Co., Ltd represent advances made to the Company for operational purposes. From time to time during the year ended December 31, 2023, apart from the exchange differences arising from the translation of RMB balances into U.S. dollar at year-end exchange rates, Jiaocheng Xinmu made advance to the Company amounting to a total of $1,035,090 and the Company had repaid $273,077 to Jiaocheng Xinmu. During the year ended December 31, 2024, there was no advance or repayment made between the Company and Jiaocheng Xinmu. On June 30, 2024, the Company, Shanxi Xiliu and Jiaocheng Xinmu made the Netting Arrangement to offset the related party receivable and payable balances. The amount due to Jiaocheng Xinmu was reduced to $2,346,889 after the Netting Arrangement.
(c)	Amounts due to Taiyuan Tuohang Logistics Co., Ltd represent payments made on behalf of the Company for operational purposes.

Related party transactions:

During the years ended December 31, 2024 and 2023, there were advances, payments and settlements made between the related parties and the Company as described above. In addition, during the year ended December 31, 2024, the Company sold products to All Weather (Hainan) Network Sports Co., Ltd in aggregate amounts of $334,254.