RELATED PARTIES

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

RELATED PARTIES

22. RELATED PARTIES

The principal related parties of which the Company as of June 30, 2024 presented are as follows:

(a) Relationship:

Name of Entity or Individual	Relationship with the Company
Jilin FAW Baosteel Auto Steel Parts Co., Ltd.	Significantly influenced by the Company
Jilin Jiqi-Longshan Automobile Chassis Co., Ltd	Significantly influenced by the Company
Zhang Jiannong	Shareholder
Wang Qingjun	Shareholder
Euroamer Kaiwan Technology Company Limited	Shareholder
Mu Hongwei	Principal Owner/Director
John Chiang	Shareholder
Simon Pang	Shareholder
Wen Li	Shareholder
Ying Liu	Shareholder/Independent Director
Wang Wenbo	Independent Director
Li Huimin	Independent Director
China FAW Co., Ltd.	Non-controlling interest shareholder
Dezhou Economic and Tech Development Zone Jingtai Investment Co., Ltd.	Non-controlling interest shareholder
Yantai Guofeng Investment Holding Group Co., Ltd.	Affiliate of non-controlling interest shareholder
Nanjing Shengnuo Biotechnology Industry Company Ltd	Affiliate of non-controlling interest shareholder
Qiming Information Technology Co., Ltd.	Affiliate of non-controlling interest shareholder
FAW Bestune Car Co., Ltd.	Affiliate of non-controlling interest shareholder
FAW-Volkswagen Automobile Co., Ltd.	Affiliate of non-controlling interest shareholder
FAW Mould Manufacturing Co., Ltd.	Affiliate of non-controlling interest shareholder
FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd.	Affiliate of non-controlling interest shareholder
FAW Logistics Co., Ltd.	Affiliate of non-controlling interest shareholder
Changchun FAW International Logistics Co., Ltd.	Affiliate of non-controlling interest shareholder
China FAW Technology Center	Affiliate of non-controlling interest shareholder
China FAW Group Co., Ltd.	Affiliate of non-controlling interest shareholder
China FAW Group Import & Export Co., Ltd.	Affiliate of non-controlling interest shareholder
FAW Finance Co., Ltd.	Affiliate of non-controlling interest shareholder
Changchun Wisdom Bus Branch of FAW Jiefang Automobile Co., Ltd.	Affiliate of non-controlling interest shareholder
Shandong Zhanpuce Management Consulting	Significantly influenced by non-controlling interest shareholder
Shandong Jiankangdadi Enterprise Management Consulting Co., Ltd	Significantly influenced by non-controlling interest shareholder
Jinan Haiyun Investment Consulting Co., Ltd	Significantly influenced by non-controlling interest shareholder
Machinery Industry Ninth Design and Research Institute Co., Ltd.	Significantly influenced by non-controlling interest shareholder
FAW Bus (Dalian) Co., Ltd.	Significantly influenced by non-controlling interest shareholder

(b) The following tables indicate the transactions that have been entered into with related parties:

i) Balance Sheets

	As of June 30, 2024 (Unaudited)
	US$’000
	Accounts receivable		Other current assets		Amounts due from related parties		Accounts payable		Contract liabilities		Accruals and other current liabilities to related parties		Loans attributable to related parties
Significantly influenced by the Company
Jilin FAW Baosteel Auto Steel Parts Co., Ltd.		-		191		-		158		-		-		-
Jilin Jiqi-Longshan Automobile Chassis Co., Ltd		-		904		-		351		-		-		-
Non-controlling interest shareholder
China FAW Co., Ltd.		2		-		43,430		142		-		-		-
Dezhou Economic and Tech Development Zone Jingtai Investment Co., Ltd.		-		-		-		-		-		1,325		3,816
Affiliate of non-controlling interest shareholder
Yantai Guofeng Investment Holding Group Co., Ltd.		-		-		-		-		-		33,185		101,827
Nanjing Shengnuo Biotechnology Industry Company Ltd		-		-		-		-		-		113		-
Qiming Information Technology Co., Ltd.		-		-		-		79		-		103		-
FAW Bestune Car Co., Ltd.		86		-		-		73		-		-		-
FAW-Volkswagen Automobile Co., Ltd.		40		-		-		-		-		-		-
FAW Mould Manufacturing Co., Ltd.		-		9		-		39,085		-		-		-
FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd.		-		-		-		2,649		-		89		-
FAW Logistics Co., Ltd.		-		-		-		2,715		-		-		-
Changchun FAW International Logistics Co., Ltd.		-		-		-		366		-		617		-
China FAW Group Co., Ltd.		-		-		-		-		-		24,624		-
China FAW Group Import & Export Co., Ltd.		-		-		-		81		86		25		-
FAW Finance Co., Ltd.		-		-		-		-		-		24,509		158,448
Changchun Wisdom Bus Branch of FAW Jiefang Automobile Co., Ltd.		55		-		-		-		457		-		-
Significantly influenced by non-controlling interest shareholder
Shandong Jiankangdadi Enterprise Management Consulting Co., Ltd		-		-		-		-		-		66		1,789
Jinan Haiyun Investment Consulting Co., Ltd		-		-		-		-		-		105		1,376
Machinery Industry Ninth Design and Research Institute Co., Ltd.		-		34		-		125		-		-		-
FAW Bus (Dalian) Co., Ltd.		-		-		-		-		741		-		-
Other		-		524		5		30		76		30		-
Total		183		1,662		43,435		45,854		1,360		84,791		267,256

	As of December 31, 2023
	US$’000
	Accounts receivable		Other current assets		Amounts due from related parties		Accounts payable		Contract liabilities		Accruals and other current liabilities to related parties		Loans attributable to related parties
Significantly influenced by the Company
Jilin FAW Baosteel Auto Steel Parts Co., Ltd.		-		421		-		-		-		3		-
Jilin Jiqi-Longshan Automobile Chassis Co., Ltd		-		1,847		-		-		-		-		-
Independent Directors
John Chiang		-		15		-		-		-		13		-
Simon Pang		-		15		-		-		-		13		-
Wen Li		-		15		-		-		-		13		-
Ying Liu		-		15		-		-		-		13		-
Non-controlling interest shareholder
China FAW Co., Ltd.		3		-		48,699		184		-		-		-
Dezhou Economic and Tech Development Zone Jingtai Investment Co., Ltd.		-		-		-		-		-		1,142		3,906
Affiliate of non-controlling interest shareholder
Yantai Guofeng Investment Holding Group Co., Ltd.		-		-		-		-		-		30,542		104,227
Nanjing Shengnuo Biotechnology Industry Company Ltd		-		-		-		-		-		69		1,127
Qiming Information Technology Co., Ltd.		-		-		-		81		-		111		-
FAW Bestune Car Co., Ltd.		164		-		-		75		-		-		-
FAW-Volkswagen Automobile Co., Ltd.		16		-		-		-		-		-		-
FAW Mould Manufacturing Co., Ltd.		-		-		-		39,996		-		-		-
FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd.		-		-		-		2,712		-		91		-
FAW Logistics Co., Ltd.		-		-		-		2,779		-		-		-
Changchun FAW International Logistics Co., Ltd.		-		-		-		374		-		631		-
China FAW Group Co., Ltd.		-		-		-		-		-		25,204		-
China FAW Group Import & Export Co., Ltd.		25		-		-		83		119		26		-
FAW Finance Co., Ltd.		-		-		-		-		-		20,565		162,181
Changchun Wisdom Bus Branch of FAW Jiefang Automobile Co., Ltd.		-		-		-		-		1,527		-		-
Significantly influenced by non-controlling interest shareholder
Shandong Jiankangdadi Enterprise Management Consulting Co., Ltd		-		-		-		-		-		21		563
Jinan Haiyun Investment Consulting Co., Ltd		-		-		-		-		-		34		1,408
Machinery Industry Ninth Design and Research Institute Co., Ltd.		-		-		-		878		-		-		-
FAW Bus (Dalian) Co., Ltd.		-		-		-		-		758		-		-
Other		-		458		49		30		79		4		-
Total		208		2,786		48,748		47,192		2,483		78,495		273,412

ii) Operations

	For the six months ended June 30, 2024 (Unaudited)						For the six months ended June 30, 2023 (Unaudited)
	US$’000						US$’000
	Sales of goods		Purchase of goods		Interest Expense		Sales of goods		Purchase of goods		Interest Expense
Significantly influenced by the Company
Jilin FAW Baosteel Auto Steel Parts Co., Ltd.		-		4,322		-		-		173		-
Jilin Jiqi-Longshan Automobile Chassis Co., Ltd		164		-		-		164		843		-
Non-controlling interest shareholder
China FAW Co., Ltd.		39		-		-		-		-		-
Dezhou Economic and Tech Development Zone Jingtai Investment Co., Ltd.		-		-		94		-		-		112
Affiliate of non-controlling interest shareholder
Yantai Guofeng Investment Holding Group Co., Ltd.		-		-		3,370		-		-		3,490
Nanjing Shengnuo Biotechnology Industry Company Ltd		-		-		46		-		-		10
Qiming Information Technology Co., Ltd.		-		46		-		-		4		-
FAW Bestune Car Co., Ltd.		-		-		-		-		1		-
FAW-Volkswagen Automobile Co., Ltd.		42		-		-		96		-		-
China FAW Technology Center		-		-		-		248		-		-
FAW Finance Co., Ltd.		-		-		4,449		-		-		3,871
Changchun Wisdom Bus Branch of FAW Jiefang Automobile Co., Ltd.		-		-		-		51		-		-
Significantly influenced by non-controlling interest shareholder
Shandong Zhanpuce Management Consulting		-		-		-		-		-		8
Shandong Jiankangdadi Enterprise Management Consulting Co., Ltd		-		-		46		-		-		-
Jinan Haiyun Investment Consulting Co., Ltd		-		-		72		-		-		-
Other		-		80		-		-		80		-
Total		245		4,448		8,077		559		1,101		7,491

(c) The following table indicates the financings that have been entered into with related parties:

	June 30, 2024		December 31, 2023
	US$’000		US$’000
	(Unaudited)
Affiliate of non-controlling interest shareholder
Yantai Guofeng Investment Holding Group Co., Ltd.(i)		101,827		104,227
Nanjing Shengnuo Biotechnology Industry Company Ltd. (ii)		-		1,127
FAW Finance Co., Ltd. (iii)		158,448		162,181
Non-controlling interest shareholder
Dezhou Economic and Tech Development Zone Jingtai Investment Co., Ltd. (iv)		3,816		3,906
Significantly influenced by non-controlling interest shareholder
Shandong Jiankangdadi Enterprise Management Consulting Co., Ltd (v)		1,789		563
Jinan Haiyun Investment Consulting Co., Ltd (vi)		1,376		1,408
Total		267,256		273,412

(i) In December 2019, Shandong Baoya entered loans with Yantai Guofeng Investment Holding Group Co., Ltd. The loans are bearing an interest rate of 6.5%. Pursuant to the loan agreements, if Shandong Baoya meets certain development conditions, part of the loans could be transferred to a government subsidy, and the relevant interest would be waived. None of the conditions were met. For the six months ended June 30, 2024 and 2023, the principal amount converted to government subsidies were both nil.

(ii) In May 2023, Shandong Baoya entered loans with Nanjing Shengnuo Biotechnology Industry Company Ltd. The loans bear an interest rate of 10%. The loans were to mature in three months, but the due dates were further extended twice in July 2023 and January 2024. On May 16 and June 4, 2024, Shandong Baoya repaid the principal of US$344 thousand and US$757 thousand, respectively. As of June 30, 2024, there was no outstanding principal due.

(iii) During May 2020, FAW Jilin entered pledged loans with FAW Finance Co., Ltd. The loans bear interest of 3.915% and mature gradually from 2022 to 2025. Pursuant to the agreements, FAW Jilin will make four installment payments of US$39,612 thousand (each for the remaining principal balance. On November 1, 2022, FAW Jilin defaulted on this pledged loan. As a result, pursuant to the agreement, there will be penalties for unpaid interest, and the annual interest rate for the default principal increased to 5.0895% from 3.915%. The remaining unpaid principal was not due immediately, The following table illustrates the carrying amount of the loan and the buildings, machine and equipment, and land use right, pledged by the Company to secure the borrowings as of June 30, 2024 and December 31, 2023.

	June 30, 2024		December 31, 2023
	US$’000		US$’000
	(Unaudited)
Collateralized by the FAW Jilin factory and land use right with the carrying value of US$61,326 thousand and US$64,942 thousand, as of June 30, 2024 and December 31, 2023.		48,162		49,297
Collateralized by the machinery and equipment, molds and tooling, other logistic equipment of FAW Jilin with carrying value of US$ 21,813 thousand and US$ 25,702 thousand as of June 30, 2024 and December 31, 2023.		95,617		97,870
Credit loan, no collateralized items.		14,669		15,014
Total		158,448		162,181

Maturity date	The loans mature gradually from November 1, 2022 to November 1, 2025.
Interest Rate and default rate	The loans bear an annual interest rate of 3.915% and the interest rate for the default principal is 5.0895%
Interest expense	The interest expenses were US$4,449 thousand and US$3,871 thousand for the six months ended June 30, 2024 and 2023 respectively.

(iv) In 2016, Dezhou Yarui entered into a related party pledged loan with Dezhou Economic and Tech Development Zone Jingtai Investment Co., Ltd. (“Dezhou Jingtai”). The loan was originally due on October 31, 2026. In March 2022, pursuant to the loan agreement, Dezhou Jingtai filed in court to request the Company to repay the loan in advance. As a result, in April 2022, the Company reached a settlement agreement with Dezhou Jingtai. Pursuant to the settlement agreement, the outstanding balance of US$4,641 thousand will bear an annual interest rate of 4.9% and will be repaid in four installments, with each payment amount of US$1,160 thousand on and before August 1, 2024. As of the March 24, 2023, the Company partially paid the first installment, which was due on February 1, 2023. In August 2023, Dezhou Yarui entered into an agreement with Dezhou Jingtai to settle the remaining amount due. The following table illustrates the carrying amount of the loan and the machine and equipment pledged by the Company to secure the borrowings as of June 30, 2024 and December 31, 2023.

	June 30, 2024		December 31, 2023
	US$’000		US$’000
	(Unaudited)
Collateralized by buildings, machinery and equipment, land use right of Dezhou Yarui. The carrying amounts of machinery and equipment pledged to secure the borrowings as of June 30, 2024 and December 31, 2023 were US$709 thousand and US$586 thousand, respectively. The carrying amount of buildings and land use rights pledged to secure the borrowings as of June 30, 2024 and December 31, 2023 were US$1,677 thousand and US$1,780 thousand, respectively.		3,816		3,906

Maturity date	The outstanding balance was due on August 1, 2024.
Interest Rate	The loans bear an annual interest rate of 4.9%
Interest expense (One loan thus no weighted average rate)	The interest expenses were US$94 thousand (RMB678 thousand) and US$112 thousand (RMB779 thousand) for the six months ended June 30, 2024 and 2023 respectively.
Others	For the six months ended June 30, 2024, the Company has paid nil.

(v) In August and October 2023, Shandong Baoya entered two loans totaling US$550 thousand with Shandong Jiankangdadi Enterprise Management Consulting Co., Ltd.(“Jiankangdadi”). The loans bear interest of 10%. Of such loans, the due date of the US$413 thousand loan was December 31, 2023. The Company signed the agreements in January and June 2024 to extend the due date to December 31, 2024 and the interest rate decreased from 10% to 6%. The due date of the remaining US$137 thousand loan was extended from April 24, 2024 to October 23, 2024. On January 16, 2024, February 20, 2024, and March 25, 2024, Shandong Baoya entered three loans with Jiankangdadi. The loans bear interest of 6%. The total of the three loans was US$1,238 thousand. The due dates are January 15, 2025, January 28, 2025 and March 24, 2025.

(vi) In August and September 2023, Shandong Baoya entered two loans amounting to US$1,376 thousand with Jinan Haiyun Investment Consulting Co., Ltd. The loans bear interest of 10%. The Company has signed an agreement to extend the due dates to August 22, 2024 and September 24, 2024, and the interest rate was decreased to 8%. In August 2024, the Company signed an agreement to extend the due date to February 22, 2025 and March 24, 2025 and the interest rate was decreased to 6%.

(d) Compensation to independent directors

The following table consists of the number of shares and the total amount of compensation to independent directors:

	June 30, 2024 (Unaudited)
	Issued shares		Cash
			US$’000
John Chiang		167	$	50.00
Simon Pang		167	$	50.00
Wen Li		167	$	50.00
Ying Liu		167	$	50.00
Total		668	$	200.00

The Company appointed four independent directors and offered each of the directors compensation amounting to US$100 thousand for one year. US$50 thousand of the compensation payable in cash and US$50 thousand payable by the issuance of the Company’s ordinary shares. On March 31, 2023, the offer letter took effect. The compensation is payable in arrears on a semi-annual basis, with the payment of US$25 thousand in cash and ordinary shares of the Company valued at US$25 thousand. On June 1, 2023, the Company issued to each independent director 167 ordinary shares of Chijet under the award plan. With the mutual understanding between the Company and the four independent directors, the share price of the 167 awarded ordinary shares was US$300 per share. As of June 30, 2024, the Company had paid US$200 thousand compensation costs.