Annual report pursuant to Section 13 and 15(d)

Related Parties Transactions

v3.21.2
Related Parties Transactions
12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
RELATED PARTIES TRANSACTIONS

NOTE 10 – RELATED PARTIES TRANSACTIONS

 

Due from related party

 

At December 31, 2020 and 2019, the due from related party amount consisted of the following:

 

    December 31,
2020
    December 31,
2019
 
Due from related party-Honglong   $
           -
    $ 12,477,777  

 

Due from related party-Honglong was repaid within one year, with an annual interest rate of 4.35%. Interest earned was $2.9 million, $0.7 million and nil for the years ended December 31, 2020, 2019 and 2018, respectively.

 

Accounts payable - related parties

 

At December 31, 2020 and 2019, accounts payable - related parties consisted of the following:

 

Name of related party   December 31,
2020
    December 31,
2019
 
Global Deep Ocean   $ 7,602,944     $ -  
Hong Long (1)     781,225       270,230  
Fujian Jingfu Ocean Fishery Development Co., Ltd. (2)     1,327      
-
 
Huna Lin(3)     1,581,212       1,436,987  
    $ 9,966,708     $ 1,707,217  

 

(1) Hong Long is an affiliate company majority owned by an immediate family member of the Company’s CEO.

 

(2) Fujian Jingfu Ocean Fishery Development Co., Ltd. is a subsidiary of Hong Long.

 

(3) Huna Lin is an immediate family of Zhiyan Lin, and Zhiyan Lin is shareholder of Pingtan Fishing,

 

These accounts payable - related parties’ amounts are short-term in nature, non-interest bearing, unsecured and payable on demand.

 

Due to related parties

 

At December 31, 2020 and 2019, the due to related parties amount consisted of the following:

 

    December 31,
2020
    December 31,
2019
 
Accrued compensation for LiMing Yung, Chief Financial Officer   $ 15,000     $ 15,000  
Accrued compensation for Xinrong Zhuo, Chief Executive Officer     3,354       3,328  
Advance from Xinrong Zhuo    
-
      150,000  
    $ 18,354     $ 168,328  

 

The advance from Xinrong Zhuo, the Company’s Chief Executive Officer, is for working capital purposes and short-term in nature, non-interest bearing, unsecured and payable on demand.

 

Operating lease

 

On July 31, 2012, the Company entered into a lease for office space with Ping Lin, spouse of the Company’s CEO (the “Office Lease”). Pursuant to the Office Lease, the annual rent is RMB 84,000 (approximately US$12,200) and the renewed Office Lease expires on July 31, 2021.

 

For the years ended December 31, 2020, 2019 and 2018, rent expense related to the Office Lease amounted $12,178, $12,177 and $12,694, respectively. Future minimum rental payment required under the Office Lease is as follows:

 

Year Ending December 31:   Amount  
2021   $ 7,104  

 

Sales to related parties

 

During the years ended December 31, 2020, 2019 and 2018 selling to related parties were as follows:

 

    Year Ended December 31,  
    2020     Percentage
of revenue
    2019     Percentage
of revenue
    2018     Percentage
of revenue
 
                                                 
Xiamen International Trade Honglong Industrial Co., Ltd.   $ 733,318       0.8 %   $
-
     
        -
%   $
             -
     
         -
%

 

Purchases from related parties

 

During the years ended December 31, 2020, 2019 and 2018, purchases from related parties were as follows:

 

    Year Ended December 31,  
    2020     2019     2018  
Purchase of fuel, freight, fishing nets and other on-board consumables                  
Fuzhou Honglong Ocean Fishery Co., Ltd.   $ 2,001,375     $ 5,021,348     $ 2,046,821  
Zhiyan Lin     2,950       4,068       -  
Huna Lin     11,279,793       -       -  
      13,284,118       5,025,416       2,046,821  
Purchase of vessel maintenance service                        
Huna Lin     -       481,119       48,388  
Zhiyan Lin     7,144       -       -  
Fuzhou Honglong Ocean Fishery Co., Ltd.     -       -       71,084  
      7,144       481,119       119,472  
Purchase of frozen shimp                        
Global Deep Ocean     17,186,623       -       -  
      17,186,623       -       -  
Purchase of storage and transportation service                        
Fuzhou Honglong Ocean Fishery Co., Ltd.     -       114,230       465,863  
Fujian Jingfu Ocean Fishery Development Co., Ltd.     707,153       -       -  
      707,153       114,230       465,863