NOTE 9 – RELATED PARTIES TRANSACTIONS

Due from related party

At June 30, 2019 and December 31, 2018, the due from related party amount consisted of the following:

Accounts payable - related parties

At June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, the due to related parties amount consisted of the following:

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 $12,400) and the renewed Office Lease expires on July 31, 2021.

For the three months ended June 30, 2019 and 2018, rent expense related to the Office Lease amounted to $3,081 and $3,292, respectively. For the six months ended June 30, 2019 and 2018, rent expense related to the Office Lease amounted to $6,194 and $6,592, respectively. Future minimum rental payment required under the Office Lease is as follows:

Rental and related administrative service agreement

On July 1, 2013, the Company entered into a service agreement with Hai Yi Shipping Limited that provided the Company to use a portion of the premises located in Hong Kong as office space and provided related administrative services (the "Service Agreement"). Pursuant to the Service Agreement, the monthly payments are HK$298,500 (approximately $38,000) and the Service Agreement expired on December 31, 2017. On January 1, 2018, the Service Agreement was renewed to February 28, 2018 under the same conditions. On March 1, 2018, the Company entered into a lease agreement directly with the landlord under the same conditions that expires on February 28, 2021.

For the three months ended June 30, 2019 and 2018, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $114,192 and $114,176, respectively. For the six months ended June 30, 2019 and 2018, rent expense and corresponding administrative service charge related to the Service Agreement amounted to $228,359 and $228,502, respectively.

As of June 30, 2019, future minimum lease payments on operating leases were as follows

The remaining lease terms (in years) and discount rates consisted of the following:

Purchases from related parties

During the three and six months ended June 30, 2019 and 2018 purchases from related parties were as follows: