Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Related Parties Transactions

v3.22.1
Related Parties Transactions
12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTIES TRANSACTIONS

NOTE 10 – RELATED PARTIES TRANSACTIONS

 

Accounts receivable- related party

 

At December 31, 2021 and 2020, the due from related party amount consisted of the following:

 

    December 31,
2021
    December 31,
2020
 
Accounts receivable- related party  
 
       
- Global Deep Ocean   $ 5,660,857     $
-
 

 

Accounts payable - related parties

 

At December 31, 2021 and 2020, accounts payable - related parties consisted of the following:

 

Name of related party   December 31,
2021
    December 31,
2020
 
Hong Long (1)   $
-
    $ 781,225  
Global Deep Ocean     28,209       7,602,944  
Fujian Jingfu Ocean Fishery Development Co., Ltd. (2)    
-
      1,327  
Huna Lin (3)     4,932,091       1,581,212  
    $ 4,960,300     $ 9,966,708  

 

(1) Hong Long was an affiliate company majority owned by an immediate family member of the Company’s CEO and is no longer a related party of the Company since this immediate family member sold his interests in Hong Long to an unrelated party on October 10, 2021.
(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, 2021 and 2020, the due to related parties amount consisted of the following:

 

    December 31,
2021
    December 31,
2020
 
Accrued compensation for LiMing Yung, Chief Financial Officer   $ 15,000     $ 15,000  
Accrued compensation for Xinrong Zhuo, Chief Executive Officer     3,354       3,354  
Advance from Xinrong Zhuo, Chief Executive Officer     7,157,634      
-
 
    $ 7,175,988     $ 18,354  

 

The balance of accrued compensation represents accrued compensation for the CEO and CFO.

 

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, the spouse of the Company’s CEO (the “Office Lease”). Pursuant to the Office Lease, the annual rent is RMB84,000 (approximately US$13,000) and expired on July 31, 2021. This lease was renewed under the same terms and t will expire on December 31, 2023.

 

For the years ended December 31, 2021, 2020 and 2019, rent expense related to the Office Lease amounted $13,141, $12,178 and $12,177, respectively. Future minimum rental payment required under the Office Lease is as follows:

 

Year Ending December 31:   Amount  
2022   $ 13,000  

 

Sales to related parties

 

During the years ended December 31, 2021, 2020 and 2019 selling to related parties were as follows:

 

    Year Ended December 31,  
    2021     Percentage
of revenue
    2020     Percentage
of revenue
    2019     Percentage
of revenue
 
                                                 
Xiamen International Trade Honglong Industrial Co., Ltd.   $ 570,465       0.3 %   $ 733,318       0.8 %   $
             -
     
         -
%

 

Purchases from related parties

 

During the years ended December 31, 2021, 2020 and 2019, purchases from related parties were as follows:

 

    Year Ended December 31,  
    2021     2020     2019  
Purchase of fuel, freight, fishing nets and other on-board consumables                  
Fuzhou Honglong Ocean Fishery Co., Ltd.   $ 17,986,745     $ 2,001,375     $ 5,021,348  
Fujian Jingfu Marine Fishery Development Co., Ltd     2,297,533      
-
     
-
 
Zhiyan Lin    
-
      2,950       4,068  
Huna Lin     16,814,865       11,279,793      
-
 
      37,099,143       13,284,118       5,025,416  
Purchase of vessel maintenance service                        
Huna Lin    
-
     
-
      481,119  
Zhiyan Lin     4,201       7,144      
-
 
      4,201       7,144       481,119  
Purchase of inventory                        
Xiamen International Trade Honglong Industrial Co., Ltd.     3,421,288                  
Global Deep Ocean     14,040,989       17,186,623      
-
 
      17,462,277       17,186,623      
-
 
Purchase of storage and transportation service                        
Fuzhou Honglong Ocean Fishery Co., Ltd.    
-
     
-
      114,230  
Fujian Jingfu Ocean Fishery Development Co., Ltd.    
-
      707,153      
-
 
     
-
      707,153       114,230