RELATED PARTY BALANCES AND TRANSACTIONS

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

RELATED PARTY BALANCES AND TRANSACTIONS

10. RELATED PARTY BALANCES AND TRANSACTIONS

(1) Related parties with transactions and related party relationships

Name of Related Party	Relationship to the Company
Hanwu Yang	Shareholder of the Company
Changbin Xia	Shareholder of the Company
Eternal Horizon International Company Limited	As a shareholder of the Company before December 15,2020
Yanping Guo	Legal representative of Vande
Mishan City Shenmi Dazhong Management Consulting Partnership (“ShenMi DaZhong”)	Shareholder of the Company
Haiyan Qin, Hui Wang and other 11 individuals	Shareholders of ShenMi DaZhong
Shan’xi Nongbei New Agriculture Technology Co.,Ltd and other 8 companies	Associated with shareholders of ShenMi DaZhong

MEIWU TECHNOLOGY COMPANY LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

10. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED)

(2) Due to related parties

	December 31, 2021		December 31, 2020
Eternal Horizon International Company Limited(1)	$	4,999,550	$	4,999,550
Changbin Xia(2)		1,415,492		2,023,420
Peijiang Chen(2)		27,448		-
Yanping Guo		239		420
Hanwu Yang(2)		-		3,974
Total	$	6,442,729	$	7,027,364

⁽¹⁾ During IPO, the underwriters purchased 999,910 ordinary shares from a selling shareholder for $4,999,550. The gross proceeds were wired into the Company’s account and was invested in loan receivable together with net proceeds from IPO.

⁽²⁾ The Company borrowed loans as working capital from two shareholders Hanwu Yang and Changbin Xia as well as the legal representative of Vande, and Peijiang Chen as well as the director of Wunong Shenzhen. The balance due to related parties is interest-free and due on demand.

During the year ended December 31, 2021, 2020 and 2019, the Company purchased $42,692, $33,529 and $35,977 food products from related parties. As of December 31, 2021 and 2020, the account payable to these related parties is $52,025 and $779, respectively. For the years ended December 31, 2021, 2020 and 2019, sales to related parties is $151,477, $118,966 and $125,526, respectively.

The Company’s shareholder, ShenMi DaZhong, and ShenMi Da Zhong’s limited partners have received sales commissions of $27,932, $281,181 and $103,832 during the year ended December 31, 2021, 2020 and 2019.