{"url_path":"/sec/sxtc/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 MAJOR SHAREHOLDERS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-07-01","source_url":"https://www.sec.gov/Archives/edgar/data/1723980/0001213900-26-074310-index.html","accession_number":"0001213900-26-074310","cik":"0001723980","ticker":"SXTC","issuer_name":"China SXT Pharmaceuticals, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1723980/0001213900-26-074310-index.html","primary_entity_key":"0001723980","primary_entity_name":"China SXT Pharmaceuticals, Inc."},"word_count":721,"has_tables":true,"body_markdown":"ITEM 7. MAJOR SHAREHOLDERS\nAND RELATED PARTY TRANSACTIONS\n\n \n\n7.A. Major Shareholders\n\n \n\nSee Item 6.E., “Share\nOwnership,” for a description of our major shareholders.\n\n \n\n7.B. Related Party Transactions \n\n \n\nNature of relationships with related parties\n\n \n\nName\nof related parties\n \nRelationship\nwith the Company\n\nFeng Zhou\n \nMajor shareholder of the Company, Chief Executive Officer\n\nJun Zheng\n \nDirector of the Company\n\nXiaodong Ji\n \nIndependent Director of the Company\n\nJiangsu Health Pharmaceutical\nInvestment Co., Ltd.\n \nAn entity controlled by\nJianping Zhou\n\nTaizhou Su Xuan Tang Chinese\nMedicine Clinic\n \nAn entity controlled by\nJianping Zhou\n\nTaizhou Su Xuan Tang Chinese\nhospital Co., Ltd.\n \nAn entity controlled by\nJianping Zhou\n\nJiangsu Sutaitang Online\nCommercial Co., Ltd.\n \nAn entity controlled by\nXiaodong Ji\n\n \n\n73\n\n \n\n \n\nRelated party balances \n\n \n\nThe amounts due from related\nparties as of March 31, 2026 and 2025 were as follows: \n\n \n\n  \nAs of March 31, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nJiangsu Sutaitang Online Commercial Co., Ltd. \n$-  \n$370,862 \n\nTaizhou Su Xuan Tang Chinese hospital Co., Ltd. \n -  \n 41,561 \n\nTaizhou Su Xuan Tang Chinese Medicine Clinic \n -  \n 5,140 \n\nJiangsu Health Pharmaceutical Investment Co., Ltd. \n$2,073,369  \n$- \n\nTotal due from related parties \n 2,073,369  \n 417,563 \n\n \n\nAs of March 31, 2026, the\nCompany had amounts due from related parties of $15,845,588 and amounts due to related parties of $13,772,219. Pursuant to an offsetting\nagreement with the related parties, these balances are presented on a net basis, resulting in a net amount due from related parties of\n$2,073,369. These balances are unsecured, interest-free, and repayable on demand.\n\n \n\nMaterial Transactions with Related Parties\n\n \n\n*1) Revenues generated from related parties*\n\n \n\nThe company sells several\nTCMP products to related companies based on terms and conditions mutually agreed between the relevant parties. These related party transactions\nwere conducted in the ordinary course of business of the Company.\n\n \n\n  \nFor the years ended\n\nMarch 31, \n\n  \n2026  \n2025  \n2024 \n\n  \n   \n   \n  \n\nTaizhou Su Xuan Tang Chinese Hospital Co. Ltd. \n -  \n 1,621  \n 25,528 \n\nTaizhou Su Xuan Tang Chinese Medicine Clinic \n -  \n 1,091  \n 2,232 \n\nTaizhou Jiutian Pharmaceutical Co. Ltd. \n 41  \n 1,589  \n - \n\nTotal revenue generated from related parties \n$41  \n$4,301  \n$27,760 \n\n \n\n*2) Other related party transactions*\n\n \n\nOn January 1, 2018, the Company\nentered into a lease agreement with Jiangsu Health Pharmaceutical Investment Co., Ltd. to obtain the right of use for office and warehouse\nof 3,627 square meters for 10 years for free. The Company recorded right-of-use assets and lease expenses based on the fair value for\nthe lease. For the years ended March 31, 2026, 2025 and 2024, the Company record operating lease expenses were $69,551, $69,343, and\n$69,819, respectively.\n\n \n\n74\n\n \n\n \n\nGuarantee\n\n \n\nOn April 12, 2021, Taizhou\nSuxuantang signed a financial guarantee agreement with Jiangsu Changjiang Commercial Bank for Taizhou Jiutian Pharmaceutical Co. Ltd.\nin borrowing of $387,796 (equivalent of RMB 2,800,000) for three-year period, which expires on April 11, 2024. On April 23, 2024, Taizhou\nSuxuantang signed a financial guarantee agreement with Jiangsu Changjiang Commercial Bank for Taizhou Jiutian Pharmaceutical Co. Ltd.\nin borrowing of $303,168 (equivalent of RMB 2,200,000) for three-year period, which expires on April 22, 2027. Taizhou Suxuantang is\nobliged to pay on behalf of the related party the principal, interest, penalty and other expenses if Taizhou Jiutian Pharmaceutical Co.\nLtd. defaults in payment. The Company did not charge financial guarantee fees over Taizhou Jiutian Pharmaceutical Co. Ltd.\n\n \n\nOn October 28, 2013, Taizhou\nSuxuantang signed a financial guarantee agreement with Fenlan Xu for JJianping Zhou in borrowing of $799,261 (equivalent of RMB 5,800,000)\nfor an unlimited period. Taizhou Suxuantang is obliged to pay the amount if Jianping Zhou in default of the payment of principal and\ninterests. Since Jianping Zhou deceased after yearend, Taizhou Suxuantang should bear all the risk for the repayment. However, subsequent\nto yearend, Taizhou Jiutian Pharmaceutical Co. Ltd. signed an agreement with Taizhou Suxuantang to take all the responsibility and obligation\nfor repay the amount borrowed from Fenlan Xu on behalf of Jianping Zhou. This additional agreement releases Taizhou Suxuantang from future\nobligation in regard to the guarantee agreement. The Company did not charge financial guarantee fees over Jianping Zhou. Taizhou Jiutian\nPharmaceutical Co. Ltd. is fully obliged to pay the principal, interests from January 1, 2021 to the actual date of repayment, including\npenalty and other expenses. As such, the Company expects no liabilities from the financial guarantee.\n\n \n\nEmployment Agreements\n\n \n\nSee Item 6.B “Agreements\nwith Named Executive Officers.”\n\n \n\n7.C. Interests of Experts and Counsel\n\n \n\nNot applicable."}