NOTE 8 - RELATED PARTY TRANSACTIONS

3 Months Ended

Jul. 31, 2020

Notes

NOTE 8 - RELATED PARTY TRANSACTIONS

NOTE 8 - RELATED PARTY TRANSACTIONS

Accounts receivable - related party and revenue - related party

As of July 31, 2020 and April 30, 2020, $1,833,476 and $3,034,365 in accounts receivable - related party, respectively, were related to sales of products to Qufu Shengwang Import and Export Co., Ltd. ("Qufu Shengwang Import and Export"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. For the three months ended July 31, 2020 and 2019, we recorded revenue - related party and cost of revenue – related party of $1,751,823 and $1,783,893, and $1,609,508 and $1,648,239, respectively, from Qufu Shengwang Import and Export.

Due to (from) related parties

From time to time, we receive advances from related parties and advance funds to related parties for working capital purposes. In the three months ended July 31, 2020 and 2019, we received advances from related parties for working capital that totaled $3,055,118 and $663,686, respectively, and we repaid to related parties a total of $5,268,237 and $947,046, respectively.

In the three months ended July 31, 2020 and 2019, interest expense related to due to related parties amounted to $16,807 and $35,741, respectively, which were included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive loss, and in connection with the advances of RMB5,000,000 (approximately $717,000) and RMB8,000,000 (approximately $1,147,000) from Shangdong Shengwang Pharmaceutical Co., Ltd. ("Pharmaceutical Corporation"), a Chinese entity owned by our Chairman, Mr. Laiwang Zhang. These advances bear interest at the rate of 7.0% and 6.3% per annum, respectively. On December 12, 2019 and August 9, 2020, we repaid in full amount of the above advance of RMB8,000,000 and RMB5,000,000 with accrued interests, respectively.

On September 23, 2018, the Company borrowed a one-year loan of RMB1,110,000 (approximately $159,000) from Weidong Cai, a management member of Qufu Shengren, bearing an annual interest rate of 10%. On September 23, 2019, the parties extended the loan for another year, under the same terms and conditions, reclassified unpaid interest payable to the principal of this loan, resulting in an increase of principal from RMB1,110,000 (approximately $159,000)  to RMB1,221,000 (approximately $175,000).

As of July 31, 2020, the balance we owed Pharmaceutical Corporation, and Mr. Weidong Chai amounted to $3,275,854, and $190,023, respectively. Qufu Shengwang Import and Export owed the Company $587,604 as of July 31, 2020. On April 30, 2020, the balance we owed to Pharmaceutical Corporation, Qufu Shengwang Import and Export and Mr. Weidong Chai amounted to $3,981,915, $906,879, and $183,657, respectively.

As of July 31, 2020 and April 30, 2020, balance due to (from) related party activities consisted of the following: 

	Shandong Shengwang Pharmaceutical Co., Ltd.	Qufu Shengwang Import and Export Co., Ltd.	Mr. Wedong Chai	Total
Balance due to related parties, April 30, 2020	$3,981,915	$906,879	$183,657	$5,072,451
Working capital advances from related parties	0	3,050,762	4,355	3,055,117
Repayments	(738,867)	(4,529,370)	0	(5,268,237)
Effect of foreign currency exchange	32,806	(15,875)	2,011	18,942
Balance due to related parties, July 31, 2020	$3,275,854	$(587,604)	$190,023	$2,878,273