| RELATED PARTY TRANSACTIONS |
5.
RELATED PARTY TRANSACTIONS
SCHEDULE
OF RELATED PARTIES RELATIONSHIP WITH COMPANY
| Name
of Related Parties |
|
Relationship
with the Company |
| Hong Zhida |
|
President, CEO, and a director of the Company |
| Hongye Financial Consulting (Shenzhen) Co., Ltd. |
|
A
company controlled by CEO, Mr. Hong Zhida |
| Bihua Yang |
|
A legal representative
of Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”) |
| Jinlong Huang |
|
Management of Dongguan
Heng Sheng Wei Garments Co., Ltd (“HSW”) |
| Wu
Rui and Riches Affiliated Parties (1) |
|
Mr. Wu Rui is the Chief
Operating Officer of the Company. The Riches Affiliated Parties are affiliated with Mr. Wu Rui and were involved in the Company’s
related-party share exchange transaction. |
| KMFG’s related parties |
|
KMFG’s shareholders,
directors and related parties |
| Or
Shan Shan |
|
Director
of Time Is Loan Limited (“TIL”) |
| |
(1) |
For purposes of this section,
“Riches Affiliated Parties” refers to Riches FO Holdings Limited, Riches Family Office Limited and Riches Elite Technology
(Shenzhen) Co., Ltd. Riches FO Holdings Limited is controlled by Mr. Wu Rui, the Company’s Chief Operating Officer, and was
the seller in the Company’s related-party share exchange transaction involving Riches Family Office Limited. Riches Elite Technology
(Shenzhen) Co., Ltd. is the operating subsidiary of Riches Family Office Limited. |
The
Company leases XKJ’s office rent-free from Bihua Yang.
Hongye
Financial Consulting (Shenzhen) Co., Ltd. provided a guarantee to the consideration receivable for the transfer of a debt security to
a third party.
On
May 15, 2026, the Company entered into a Share Exchange Agreement with Yingxi Industrial Chain Investment Co., Ltd., Riches Family Office
Limited, Riches FO Holdings Limited and Mr. Wu Rui, the Company’s Chief Operating Officer and sole shareholder of Riches FO Holdings
Limited.
Pursuant
to the agreement, Yingxi HK agreed to acquire 41.67% of the issued and outstanding equity interests of Riches Family Office Limited from
Riches FO Holdings Limited in exchange for the issuance by the Company of 33,500 shares of Common Stock to Mr. Wu Rui. The transaction
constitutes a related-party transaction and was approved by the Audit Committee and the Board of Directors on May 15, 2026.
The
Company had the following related party balances as of June 30, 2026 and March 31, 2026:
SCHEDULE
OF RELATED PARTY BALANCES
| Amount due from related party | |
June 30, 2026 | | |
March 31, 2026 | |
| Hong Zhida (1) | |
$ | 3,429,932 | | |
$ | 3,626,417 | |
| Bihua Yang (2) | |
| 1,416,034 | | |
| 1,369,355 | |
| Director of Time Is Loan Limited | |
| 6,646 | | |
| - | |
| Riches affiliated companies | |
| 335,603 | | |
| 623,100 | |
| Amount due from related
party | |
$ | 5,188,215 | | |
$ | 5,618,872 | |
| Related party borrowings | |
June 30, 2026 | | |
March 31, 2026 | |
| Hongye Financial Consulting (Shenzhen) Co., Ltd. | |
| 169,863 | | |
| 101,322 | |
| Jinlong Huang | |
| 121,538 | | |
| 118,734 | |
| Riches’ affiliated companies | |
| 19,749 | | |
| 306,946 | |
| KMFG’s related parties | |
| 554,023 | | |
| 554,478 | |
| Related party borrowings | |
$ | 865,173 | | |
$ | 1,081,480 | |
| |
(1) |
The decrease of related
party from Hong Zhida was mainly due to the repayment from Hong Zhida. |
| |
|
|
| |
(2) |
The increase of related
party debt from Bihua Yang was mainly due to the cash paid in advance to Bihua Yang. During the quarter ended June 30, 2026, the
Company provided a short term loan of approximately $0.25 million to Bihua Yang and received repayment of approximately $0.21 million
from him. |
The
borrowing balances with related parties are unsecured, non-interest bearing and repayable on demand.
|