RELATED PARTY BALANCES AND TRANSACTIONS |
25. | | RELATED PARTY BALANCES AND TRANSACTIONS |
In
addition to the transactions detailed elsewhere in the consolidated financial statements, the Group had the following transactions and
balances with related companies:
(a) |
|
Commercial transactions with related companies |
(i) |
|
The Company's subsidiary, Shanghai Onway, entered into a series of contracts to provide a loan amounting to CNY80,000 at an interest rate of 9% per annum to Feishang Enterprise from March 2, 2018 to June 30, 2021. |
(ii) |
|
The Company signed a contract with Anka to lease 184 square meters of office premises for two years from July 2018 to June 30, 2020, and extended it to June 30, 2024. The agreement also provides that the Company shares certain costs and expenses in connection with its use of the office, in addition to some of the accounting and secretarial services and day-to-day office administration services provided by Anka. |
(iii) |
|
On January 1, 2018, Feishang Management signed an office-sharing agreement with Feishang Enterprise. Pursuant to the agreement, Feishang Management shares 40 square meters of office premises for 33 months. Feishang Management signed a new contract with Feishang Enterprise in October 2023, which will expire on September 30, 2024. |
(iv) |
|
Shenzhen
New PST signed a contract with Feishang Enterprise to lease 96 meters of office premises for 12-month period from March 14, 2022 to
March 13, 2023 and renewed the contract with same terms for another 12-month period from March 14, 2023 to March 13, 2024.
Due to the disposal of PSTT, the transaction amount in 2023 contains 7 months rentals. |
(a) |
|
Feishang Enterprise is
controlled by Mr. Li Feilie, who is the controlling shareholder of the Company. |
(b) |
|
Anka is jointly owned by
Mr. Wong Wah On Edward and Mr. Tam Cheuk Ho, who are officers of the Company. |
(b) | | Other transactions
with related parties |
On
February 27, 2023, the Company entered into a sale and purchase agreement (the “SPA”) with Feishang Group and Top Pacific
(China) Limited (together, the “Sellers”), and the respective beneficial owner of the sellers, Mr. Li Feilie and Mr. Yao
Yuguang, to acquire 100% equity interests of Greatfame Investments Limited, which owns 100% equity interest in Williams Minerals (Pvt)
Ltd (“Williams Minerals”) (the “Acquisition”). Williams Minerals owns the mining permit for the Zimbabwean lithium
mine. The consideration to be paid by the Company for the Acquisition will be calculated by multiplying the qualified measured, indicated
and inferred resources quantity of lithium oxide proven to be in the mine by independent technical reports by a unit price of US$500
per ton, less certain due diligence costs and expenses incurred by the Company for the issuance of the independent technical reports.
According
to the SPA, the Company issued a US$24,500 promissory note (Promissory Note No. 1)
and a US$10,500 promissory note to Feishang Group and Top Pacific (China) Limited respectively on April 14, 2023 to proceed with the
acquisition. The Company recognized a liability due to shareholders amounted to US$24,500 and other payable amounted to US$10,500
respectively for the present obligations of these two promissory notes with corresponding non-current assets amounted to
US$35,000.
On
August 3, 2023, the Company entered into a set-off letter with Feishang Group, pursuant to the letter, the consideration of CNY95,761
liable to be paid by Feishang Group pursuant to the SPA for the disposal of the water treatment segment (Note 3) shall be set off against
Promissory Note No. 1 using the exchange rate CNY1.00 = US$0.1400 such that a sum of US$13,407 shall be deducted from the Principal Amount
as defined in Promissory Note No. 1. According to the letter, the Company derecognized the receivables from Feishang Group amounted to
CNY95,761 and a liability due to shareholders amounted to CNY95,761.
(c) |
|
Balances with related companies |
The
Group’s balances with related companies are unsecured and non-interest bearing. Feishang Enterprise and the Shareholder have provided
letters stating their continuous financial support to the Group and that they will not recall any amounts due to them until the Group
has sufficient liquidity to finance its operations. The balances are summarized as follows:
(i) |
|
The payable to Feishang Enterprise by Feishang Management represents the net amount of advances from Feishang Enterprise. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group. |
(ii) |
|
The payable to Feishang Group represents the net amount of advances from Feishang Group. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group. |
(iii) |
|
The payable to Anka Capital represents the net amount of advances from Anka Capital. The balance is unsecured and interest-free. The balance is repayable when the Group is in a position to settle the amounts due without having a detrimental impact on the financial resources of the Group. |
(a) |
|
Feishang
Enterprise and Feishang Group are controlled by Mr. Li Feilie, who is the controlling shareholder of the Company. |
(b) |
|
Anka
Capital and Anka are each jointly owned by Mr. Wong Wah On Edward and Mr. Tam Cheuk Ho, who are officers of the Company. |
(d) |
|
Compensation of key management personnel of the Group |
Schedule of compensation of key management personnel of the group | |
| | | |
| | | |
| | |
| |
| |
| |
Year Ended December 31, | |
| |
2022 | | |
2023 | | |
2023 | |
| |
CNY | | |
CNY | | |
US$ | |
Wages, salaries and allowances | |
| 1,171 | | |
| 1,014 | | |
| 143 | |
Housing funds | |
| 16 | | |
| 16 | | |
| 2 | |
Contribution to pension plans | |
| 65 | | |
| 64 | | |
| 9 | |
| |
| | | |
| | | |
| | |
| |
| 1,252 | | |
| 1,094 | | |
| 154 | |
The
amounts disclosed in the table are the amounts recognized as expenses during the respective period related to key management personnel.
|