NOTE 10 – RELATED PARTIES TRANSACTIONS

Accounts payable - related parties

At September 30, 2021 and December 31, 2020, accounts payable - related parties consisted of the following:

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

Due to related parties

At September 30, 2021 and December 31, 2020, the due to related parties amount consisted of the following:

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.

The majority of due to Hong Long represents the prepayment made to shipbuilding company for the modification and rebuilding of the 20 vessels in 2021 by Hong Long on behalf of the Company, with an annual interest rate of 4.35%. 

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 RMB 84,000 (approximately US$13,000) and expired on July 31, 2021. This lease was renewed under the same terms upon expiry, and the Office Lease will expire on December 31, 2023.

For the three months ended September 30, 2021 and 2020, rent expense related to the Office Lease amounted to $3,245 and $3,038, respectively. For the nine months ended September 30, 2021 and 2020, rent expense related to the Office Lease amounted to $9,735 and $9,011, respectively. The future minimum rental payments required under the Office Lease are as follows:

Purchases from related parties

During the three and nine months ended September 30, 2021 and 2020, purchases from related parties were as follows: