Related Party Transactions

3 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Note 10 – Related Party Transactions

Related parties with whom the Company had transactions are:

Related Parties	Relationship
HangJin Chen	President/CEO/CFO/Secretary/Director
Youcheng Chen	Father of CEO HangJin Chen
Li Weiwei	President/CEO/CFO/Secretary/Director (Former)
Zhejiang Malai Electronic Commerce Co., Ltd	Company controlled by management or affiliate

On October 25, 2020, the Company signed an agreement with a related party, which is also the Company’s major customer. The Company agreed to loan the customer the $9,311,854 (RMB60,000,000) at an annual interest rate of 7.2%. The actual loan amount shall prevail within the total amount. The loan is guaranteed by a Company’s supplier and due on October 25, 2021. The borrower is required to pay all the principal and the relevant interest in full amount on the due date. The Company has recorded an allowance for uncollectible amount of $2,167,448 as of September 30, 2021. The total loan receivable, net of allowance amounted $6,430,497 and $6,417,350 as of September 30, 2021 and June 30, 2021, respectively.

Sales were $0 and $3,616,204 to Zhejiang Malai Electronic Commerce Co., Ltd for the three months ended September 30, 2021 and 2020, respectively.

Related party loans represent working capital advances to the Company by former President and Director in the amount of $0 and $19,974 as of September 30, 2021 and June 30, 2021, respectively. The loan is unsecured, non-interest bearing and due on demand. The Company has not recorded any imputed interest expense for the three months ended September 30, 2021 and 2020. On July 1, 2021, the former President and Director agreed to forgive the working capital advance of $19,974 given to the Company on March 20, 2020 (Note 9).