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Related Party Transactions
12 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 14 — RELATED PARTY TRANSACTIONS

 

a. Due to related parties

 

Due to related parties consists of the following:

 

Name   Related party relationship   June 30,
2025
    June 30,
2024
 
Mrs. Duanrong Liu   Shareholder, Director and Chief Operating Officer   $ 184,859     $ 455,454  
Mr. Lei Xia   Shareholder, Chairman and Chief Executive Officer     -       4,316  
Other shareholders   Shareholders of the Company     20,626       14,774  
Total due to related parties       $ 205,485     $ 474,544  

 

As of June 30, 2025 and 2024, the balance due to related parties was loan advance from the Company’s shareholders and was used as working capital during the Company’s normal course of business. Such advance was non-interest bearing and due on demand.

 

b. Loan guarantee provided by related parties

 

In connection with the Company’s short-term borrowings from the PRC banks, the Company’s controlling shareholder and several other shareholders jointly signed guarantee agreements by pledging their personal properties with the banks to secure the bank loans. The Company also incurred loan origination fees of $50,846, $36,291 and $292,998 for the years ended June 30, 2025, 2024 and 2023 respectively, to be paid to these related parties for providing such loan guarantees (see Note 11).