Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 27, 2016 | Dec. 31, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SHINECO, INC. | ||
Entity Central Index Key | 1,300,734 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 50.1 | ||
Entity Common Stock, Shares Outstanding | 21,034,072 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
CURRENT ASSETS: | ||
Cash | $ 22,009,374 | $ 6,056,105 |
Accounts receivable, net - third parties | 4,464,098 | 4,878,378 |
- unconsolidated entity | 1,088,144 | 2,409,664 |
Due from related parties | 1,671,435 | 2,623,169 |
Inventories | 4,608,179 | 8,302,297 |
Advances to suppliers, net | 53,024 | 1,383,934 |
Loans to third parties, net | 560,234 | 1,130,139 |
Other receivables, net | 463,361 | 663,193 |
Short-term deposit | 100,270 | 87,453 |
Prepaid leases - current, net | 478,565 | 521,235 |
Prepaid expenses | 33,117 | 200,304 |
TOTAL CURRENT ASSETS | 35,529,801 | 28,255,871 |
Property and equipment at cost, net of accumulated depreciation and amortization | 11,035,199 | 5,805,965 |
Land use right, net of accumulated amortization | 1,408,765 | 1,568,701 |
Investments | 4,766,847 | 11,417,953 |
Long-term deposit and other noncurrent assets | 120,357 | 135,242 |
Prepaid leases-non current, net | 3,860,327 | 4,719,320 |
Deferred tax assets | 327,492 | 229,072 |
TOTAL ASSETS | 57,048,788 | 52,132,124 |
CURRENT LIABILITIES: | ||
Short-term loans-banks | 2,745,945 | 3,385,006 |
Accounts payable | 259,803 | 171,642 |
Advances from customers | 9,597 | 32,826 |
Due to related parties | 244,915 | 137,508 |
Other payables and accrued expenses | 1,999,622 | 1,119,591 |
Taxes payable | 1,278,142 | 1,076,253 |
TOTAL LIABILITIES | 6,538,024 | 5,922,826 |
Commitments and contingencies | ||
EQUITY: | ||
Common stock; par value $0.001, 100,000,000 shares authorized; 19,320,882 issued and outstanding | 19,321 | 19,321 |
Additional paid-in capital | 17,344,466 | 17,344,466 |
Statutory reserve | 3,242,139 | 2,924,921 |
Retained earnings | 30,837,399 | 23,017,721 |
Accumulated other comprehensive income (loss) | (1,887,929) | 2,054,720 |
Total Stockholders' equity of Shineco, Inc. | 49,555,396 | 45,361,149 |
Non-controlling interest | 955,368 | 848,149 |
TOTAL EQUITY | 50,510,764 | 46,209,298 |
TOTAL LIABILITIES AND EQUITY | $ 57,048,788 | $ 52,132,124 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Common stock; par value (in dollars per shares) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 19,320,882 | 19,320,882 |
Common Stock, Shares, Outstanding | 19,320,882 | 19,320,882 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
REVENUE | $ 35,206,852 | $ 32,630,502 |
COST OF REVENUE | ||
Cost of product and services | 24,037,241 | 22,204,733 |
Business and sales related tax | 85,038 | 78,262 |
GROSS PROFIT | 11,084,573 | 10,347,507 |
OPERATING EXPENSES | ||
General and administrative expenses | 1,988,101 | 2,160,666 |
Selling expenses | 1,755,264 | 1,684,423 |
Total operating expense | 3,743,365 | 3,845,089 |
INCOME FROM OPERATIONS | 7,341,208 | 6,502,418 |
OTHER INCOME | ||
Income from equity method investments | 1,796,527 | 1,788,288 |
Other income | 197,390 | 231,908 |
Interest income, net | 135,404 | 42,502 |
Total other income | 2,129,321 | 2,062,698 |
INCOME BEFORE INCOME TAX PROVISION | 9,470,529 | 8,565,116 |
PROVISIONS FOR INCOME TAXES | 1,177,707 | 1,124,716 |
NET INCOME | 8,292,822 | 7,440,400 |
Less: net income attributable to non-controlling interest | (155,926) | (160,122) |
NET INCOME ATTRIBUTABLE TO SHINECO, INC. | 8,136,896 | 7,280,278 |
COMPREHENSIVE INCOME | ||
Net income | 8,292,822 | 7,440,400 |
Other comprehensive income (loss): foreign currency translation gain (loss) | (3,991,356) | 306,408 |
Total comprehensive income | 4,301,466 | 7,746,808 |
Comprehensive income attributable to non-controlling interest | (107,219) | (153,013) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHINECO, INC. | $ 4,194,247 | $ 7,593,795 |
Weighted average number of shares basic and diluted | 19,320,882 | 19,320,882 |
Basic and diluted earnings per common share | $ 0.42 | $ 0.38 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | COMMON STOCK [Member] | ADDITIONAL PAID-IN CAPITAL [Member] | STATUTORY RESERVE [Member] | RETAINED EARNINGS [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME (Member) | NON-CONTROLLING INTEREST (Member) |
Balance at Jun. 30, 2014 | $ 38,462,490 | $ 19,321 | $ 17,344,466 | $ 2,040,382 | $ 16,621,982 | $ 1,741,203 | $ 695,136 |
Balance (in Shares) at Jun. 30, 2014 | 19,320,882 | ||||||
Net income for the year | 7,440,400 | $ 0 | 0 | 0 | 7,280,278 | 0 | 160,122 |
Appropriation of statutory reserve | 0 | 0 | 0 | 884,539 | (884,539) | 0 | 0 |
Foreign currency translation gain (loss) | 306,408 | 0 | 0 | 0 | 0 | 313,517 | (7,109) |
Balance at Jun. 30, 2015 | 46,209,298 | $ 19,321 | 17,344,466 | 2,924,921 | 23,017,721 | 2,054,720 | 848,149 |
Balance (in Shares) at Jun. 30, 2015 | 19,320,882 | ||||||
Net income for the year | 8,292,822 | $ 0 | 0 | 0 | 8,136,896 | 0 | 155,926 |
Appropriation of statutory reserve | 0 | 0 | 0 | 317,218 | (317,218) | 0 | 0 |
Foreign currency translation gain (loss) | (3,991,356) | 0 | 0 | 0 | 0 | (3,942,649) | (48,707) |
Balance at Jun. 30, 2016 | $ 50,510,764 | $ 19,321 | $ 17,344,466 | $ 3,242,139 | $ 30,837,399 | $ (1,887,929) | $ 955,368 |
Balance (in Shares) at Jun. 30, 2016 | 19,320,882 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 8,292,822 | $ 7,440,400 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 871,099 | 811,135 |
Provision for doubtful accounts | 324,515 | 111,303 |
Change of inventory reserve | 290,515 | 62,447 |
Deferred tax benefit | (120,765) | (64,419) |
Income from equity method investments | (1,796,527) | (1,788,288) |
Impairment of investment | 0 | 244,350 |
Gain on disposal of investment | (233,249) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,395) | (3,481,607) |
Advances to suppliers | 1,249,897 | 1,916,195 |
Inventories | 2,834,739 | (2,809,027) |
Other receivables | 172,176 | (277,087) |
Prepaid expense and other assets | 135,528 | (43,287) |
Due from related parties | (601,940) | 1,056,256 |
Long-term deposit and other noncurrent assets | 0 | 9,298 |
Prepaid leases | 495,122 | (1,139,092) |
Accounts payable | 105,382 | 133,055 |
Advances from customers | (21,266) | 20,281 |
Other payables | 1,008,132 | 92,962 |
Taxes payable | 292,580 | 351,914 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 13,290,365 | 2,646,789 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (498,772) | (101,620) |
Proceeds from withdrawal of investments | 466,497 | 0 |
Proceeds from (repayment of) loans to third parties | 189,275 | (224,816) |
Proceeds from (repayment of) loans to related parties | 1,366,787 | (969,711) |
Distribution received from investments in unconsolidated entities | 2,428,894 | 65,160 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 3,952,681 | (1,230,987) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 3,148,077 | 3,583,800 |
Repayment of short-term bank loans | (3,526,423) | (2,893,104) |
Proceeds from private equity | 0 | 699,818 |
Proceeds from advances from related parties | 122,424 | 136,836 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (255,922) | 1,527,350 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | (1,033,855) | 23,108 |
NET INCREASE IN CASH | 15,953,269 | 2,966,260 |
CASH - Beginning of the Year | 6,056,105 | 3,089,845 |
CASH - End of Year | 22,009,374 | 6,056,105 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for income tax | 991,599 | 913,288 |
Cash paid for interest | 366,844 | 223,933 |
SUPPLEMENTAL NON-CASH INVESTING ACTIVITY: | ||
Long-term investment converted to fixed assets | $ 6,219,960 | $ 0 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS Shineco, Inc. ("Shineco" or the “Company”) was incorporated in the State of Delaware on August 20, 1997. The Company is a holding company whose primary purpose is to develop business opportunities in the People’s Republic of China (“PRC” or “China”). On December 30, 2004, the Company acquired all of the issued and outstanding shares of Beijing Tenet-Jove Technological Development Corp., Ltd. (“Tenet-Jove”), a PRC company, in exchange for restricted shares of the Company’s common stock, and the sole operating business of the Company became that of its subsidiary, Tenet-Jove. Tenet-Jove was incorporated on December 15, 2003 under the laws of China. Consequently, Tenet-Jove became a 100 90 On December 31, 2008, June 11, 2011 and May 24, 2012, respectively, Tenet-Jove entered into a series of contractual agreements with the owners of Ankang Longevity Pharmaceutical (Group) Co., Ltd. (“Ankang Longevity Group”), each of Yantai Zhisheng International Freight Forwarding Co., Ltd (“Zhisheng Freight”), Yantai Zhisheng International Trade Co., Ltd (“Zhisheng Trade”), Yantai Mouping District Zhisheng Agricultural Produce Cooperative (“Zhisheng Agricultural”)and Qingdao Zhihesheng Agricultural Produce Services., Ltd (“Qingdao Zhihesheng”). On February 24, 2014, Tenet-Jove also subsequently entered into the same series of contractual agreements with Shineco Zhisheng (Beijing) Bio-Technology Co., Ltd (“Zhisheng Bio-Tech”), which is a new company incorporated in 2014. Zhisheng Bio-Tech, Zhisheng Freight, Zhisheng Trade, Zhisheng Agricultural, and Qingdao Zhihesheng are collectively referred to herein as “Zhisheng Group”. These agreements include an Executive Business Cooperation Agreement; Timely Reporting Agreements; Equity Interest Pledge Agreement and Executive Option Agreements. Pursuant to the above agreements, Tenet-Jove has the exclusive right to provide to Zhisheng Group and Ankang Longevity Group consulting services related to business operation and management. All the above contractual agreements obligate Tenet-Jove to absorb a majority of the risk of loss from Zhisheng Group and Ankang Longevity Group’s activities and entitle Tenet-Jove to receive a majority of their residual returns. In essence, Tenet-Jove has gained effective control over Zhisheng Group and Ankang Longevity Group. Therefore, the Company believes that Zhisheng Group and Ankang Longevity Group should be considered as Variable Interest Entities (“VIEs”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation”. Accordingly, the accounts of these entities are consolidated with those of Tenet-Jove. Since Shineco is effectively controlled by the majority shareholders of Zhisheng Group and Ankang Longevity Group. Shineco owns 100% equity interest of Tenet-Jove. Accordingly, Shineco, Tenet-Jove, and its VIEs, Zhisheng Group and Ankang Longevity Group are effectively controlled by the same majority shareholders. Therefore, Shineco, Tenet-Jove and its VIEs are considered under common control. The consolidation of Tenet-Jove and its VIEs into Shineco has been accounted for at historical cost and prepared on the basis as if the aforementioned exclusive contractual agreements between Tenet-Jove and its VIES had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. The Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries (collectively the “Group”) operate three main business segments: 1) Tenet-Jove is engaged in planting, manufacturing and selling of Bluish Dogbane and related products, also known in Chinese as “Luobuma”, including therapeutic clothing and textile products made from Luobuma; 2) Zhisheng Group is engaged in the business of planting, processing and distributing of green agricultural produce as well as providing domestic and international logistic services for agricultural products (“Agricultural Products”); 3) Ankang Longevity Group develops and manufactures traditional Chinese herbal medicinal products as well as other retail pharmaceutical products. These different business activities and products can potentially be integrated and benefit from one and other. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries. The non-controlling interest represents the minority shareholders’ interest in the Company’s majority owned subsidiaries. All intercompany transactions have been eliminated . In accordance with accounting standards regarding consolidation of variable interest entities (“VIEs”), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. June 30, 2016 June 30, 2015 Current assets $ 30,560,208 $ 21,054,168 Plant and equipment, net 9,595,357 4,187,397 Other noncurrent assets 10,136,632 17,559,402 Total assets 50,292,197 42,800,967 Total liabilities (4,398,424) (4,804,296) Net assets $ 45,893,773 $ 37,996,671 US GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the net income (loss) of those subsidiaries are reported separately in the consolidated statements of income and comprehensive income. The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other factors, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, this may not be indicative of future results. Members of the current management team own controlling interests in the Company and are also the owners of the VIEs in the PRC. The Company only controls the VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting period. Significant estimates required to be made by management include, but are not limited to, useful lives of property, plant, and equipment, intangible assets, the recoverability of long-lived assets and the valuation of accounts receivable, deferred tax assets, accrued expenses, taxes payable and inventories. Actual results could differ from those estimates. The Company recognizes revenue from sales of bluish dogbane products, Chinese medicinal herbal products and agricultural products, as well as providing logistic service and other processing service to external customers. The Company recognizes revenue when all of the following have occurred: (i) there is persuasive evidence of an arrangement with a customer (ii) delivery has occurred or services have been rendered (iii) the sales price is fixed or determinable and (iv) the Company’s collection of such fees is reasonable assured. These criteria, as related to the Company’s revenue, are considered to have been met as follows: Sales of products : The Company recognizes revenue on sale of products when the goods are delivered and title to the goods passes to the customer provided that there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectability is deemed probable. Revenue from the rendering of services: Revenue from international freight forwarding, domestic air and overland freight forwarding services are recognized upon performance of services as stipulated in the underlying contract or when commodities are being released from the customer’s warehouse; the service price is fixed or determinable; and collectability is deemed probable. Cash and cash equivalents consist of cash on hand, cash on deposits and other highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. The Company maintains cash and cash equivalents with various financial institutions mainly in the PRC. Balances in banks in the PRC are uninsured. Accounts receivable are recorded at net realizable value consisting of carrying amount less an allowance for uncollectible accounts, as necessary. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customers’ historical payment history, their current credit-worthiness and current economic trends. As of June 30, 2016 and 2015, the allowances for doubtful accounts were $ 103,968 81,374 Accounts are written off against the allowance after efforts at collection prove unsuccessful. Accounts receivable-unconsolidated entity represents the amount due from Shanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd. (“Shaanxi Pharmaceutical Group”), with whom the Company entered into a supplemental agreement in September 2013. According to the supplemental agreement, the joint-venture company established by Shaanxi Pharmaceutical and the Company are required to exclusively purchase certain raw materials and drug products from Shaanxi Pharmaceutical Group. In return, Shaanxi Pharmaceutical Group has agreed to compensate Ankang Longevity Group with a preferred distribution that equals to 7% of the total purchases made from Shaanxi Pharmaceutical Group. The accounts receivable mainly represents the preferred distribution due from Shaanxi Pharmaceutical Group. As of June 30, 2016 and 2015, the balance of accounts receivable unconsolidated entity was $ 1,088,144 2,409,664 Inventories, which are stated at the lower of cost or current market value, consisting of raw materials, work-in-progress, finished goods related to the Company’s products. Cost is determined using the first in first out (FIFO) method. Market is the lower of replacement cost or net realizable value. Agricultural products that the Company farms are recorded at cost, which includes direct costs such as seed selection, fertilizer, labor cost and contract fee that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayment of farmland lease fee and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to harvested crops costs when they are sold. The Company periodically evaluates its inventory and records inventory reserve for certain inventories that may not be saleable. As of June 30, 2016 and 2015, the Company recorded inventory reserves of $ 819,285 585,283 Advances to suppliers consist of balance paid to suppliers for materials that have not been received. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired. As of June 30, 2016 and 2015, the Company had an allowance for uncollectible advances to suppliers in the amount of $ 10,118 561 Loans to third parties consist of various cash advances to unrelated companies and individuals, with whom the Company has business relationships. The loans are due within one year with no interest rate. Loans to third parties are reviewed periodically as to whether their carrying values remain realizable. Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for additions, major renewal and betterments are capitalized, and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value, over an asset’s estimated useful life, Farmland leasehold improvements are amortized over the shorter of lease term or remaining lease period of the underlying assets. Estimated useful lives Buildings 20-50 years Machinery equipment 5-10 years Motor vehicles 5-10 years Office equipment 5-10 years Farmland leasehold improvements 12-18 years Land Use Right Under PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights are stated at cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method. Estimated useful life is 50 The Company accounts for long-lived assets under FASB Codification Topic 360 (ASC Topic 360) “Accounting for Goodwill and Other Intangible Assets” and “Accounting for Impairment or Disposal of Long-Lived Assets.” Finite-lived assets and intangibles are also reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property, plant and equipment, land use rights, investments and long-term prepaid lease. For the years ended June 30, 2016 and 2015, the Company did not recognize any impairment of its long-lived assets. The Company adopted the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying value of accounts receivable, other current assets, short term loans, other payables and accrued expenses approximate their fair values because of the short-term nature of these instruments. The Company accounts for income taxes under FASB Codification Topic 740 (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not have any uncertain tax positions at June 30, 2016 and 2015. The statute of limitations for the Company’s U.S. federal income tax returns and certain state income tax returns remains open for tax years 2013 and after. As of June 30, 2016, the tax years ended June 30, 2007 through June 30, 2016 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. Sales revenue represents the invoiced value of goods, net of a Value-Added Tax (“VAT”). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17 The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive income (loss). The balance sheet amounts, with the exception of equity, at June 30, 2016 and 2015 were translated at 1 RMB to $ 0.1505 0.1637 0.1555 0.1629 Comprehensive income consists of two components, net income and other comprehensive income. The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. An investment in which the Company has the ability to exercise significant influence, but does not have a controlling interest, is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20 50 The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the years ended June 30, 2016 and 2015. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income or cash flow as previously prepared. New Accounting Pronouncements In November 2015, the FASB has issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company early adopted this update as permitted and, accordingly, has presented deferred tax assets as long-term on the Company's consolidated balance sheets. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients". The amendments, among other things: (1) clarify the objective of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy US GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The effective date of these amendments is at the same date that Topic 606 is effective. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 3- INVENTORIES June 30, 2016 June 30, 2015 Raw materials $ 825,028 $ 920,973 Work-in-process 3,230,729 6,674,890 Finished goods 1,354,176 1,268,681 Packing materials 17,531 23,036 Less: inventory reserve (819,285) (585,283) $ 4,608,179 $ 8,302,297 Work-in-process includes direct costs such as seed selection, fertilizer, labor cost and subcontractor fee that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayment of farmland lease fee and farmland development cost. All the costs are accumulated until the time of harvest and then allocated to harvested crops costs when they are sold. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4- PROPERTY AND EQUIPMENT, NET June 30, 2016 June 30, 2015 Buildings $ 10,726,872 * $ 5,113,662 Building improvement 52,834 57,467 Machinery equipment 443,846 476,044 Motor vehicles 231,434 251,726 Construction in progress 451,512 - Office equipment 208,022 206,134 Farmland leasehold improvement 3,164,943 3,442,441 15,279,463 9,547,474 Less: accumulated depreciation and amortization (4,244,264) (3,741,509) Property, plant and equipment, net $ 11,035,199 $ 5,805,965 *: $ 6,219,960 Depreciation and amortization expense charged to operations were $ 831,057 766,705 June 30, 2016 June 30, 2015 Blueberry farmland leasehold reconstruction $ 2,431,450 $ 2,644,636 Yew tree planting base reconstruction 272,412 296,297 Greenhouse renovation 461,081 501,508 Total farmland leasehold improvement $ 3,164,943 $ 3,442,441 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 5- LAND USE RIGHTS, NET The Company states land use right at cost less accumulated amortization. All land in the People’s Republic of China is government owned and cannot be sold to any individual or company. However, the government grants the user a “land use right” (the “Right”) to use the land. 50 June 30, 2016 June 30, 2015 Land use rights $ 1,674,053 $ 1,820,832 Less: accumulated amortization (265,288) (252,131) Land use rights, net $ 1,408,765 $ 1,568,701 For the years ended June 30, 2016 and 2015, the Company incurred amortization expense of $ 34,592 36,239 The estimated future amortization expenses are as follows: Twelve months ending June 30: 2017 $ 33,481 2018 33,481 2019 33,481 2020 33,481 2021 33,481 Thereafter 1,241,360 Total $ 1,408,765 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 6- INVESTMENTS A) Investments in unconsolidated entities On September 27, 2012, Ankang Longevity Group entered into two equity investment agreements with a third party, Shaanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd., a Chinese state-owned pharmaceutical enterprise to invest a total of RMB 6.8 1.0 49 532,320 599,118 In September 2013, Ankang Longevity Group entered into a supplemental agreement with Shaanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd. (“Shaanxi Pharmaceutical Group”). According to the supplemental agreement, the new joint-venture companies established by Shaanxi Pharmaceutical and Ankang Longevity Group are required to exclusively purchase certain raw materials and drug products from Shaanxi Pharmaceutical Group. In return, Shaanxi Pharmaceutical Group has agreed to compensate Ankang Longevity Group with a preferred distribution equal to 7 1,124,258 1,124,010 49 On each of April 6, 2013 and June 2, 2013, Tenet-Jove entity invested RMB 1.5 0.23 30 40 244,350 100,000 16,370 3.0 0.45 233,000 On October 21, 2013, the Company, through its controlled subsidiaries, Zhisheng Freight and Zhisheng Agricultural, entered into an agreement with an unrelated third party, Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. (“Zhen’Ai Network”), and invested RMB 14.5 2.2 29 30 10 30 139,949 June 30, 2016 June 30, 2015 Shaanxi Pharmacy Holding Group Longevity Pharmacy Co., Ltd ( Ankang Longevity Pharmacy ) $ 2,091,531 $ 1,797,814 Shaanxi Pharmacy Sunsimiao Drugstores Ankang Chain Co., Ltd 493,008 452,939 Nanjing Kang Tian Yi Dressing & Adornment Co., Ltd - 245,550 Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. 2,182,308 2,373,650 Total $ 4,766,847 $ 4,869,953 June 30, 2016 June 30, 2015 Current assets $ 28,450,106 $ 26,768,724 Noncurrent assets 386,764 547,736 Current liabilities 23,577,799 22,739,953 Noncurrent liabilities - - For the years ended June 30, 2016 2015 Net sales $ 25,456,718 $ 35,891,304 Gross profit 3,382,468 3,233,879 Income from operations 1,071,742 1,857,819 Net income 1,086,377 1,856,794 B) Investments in real estate project On January 28, 2014, the Company, through one of its VIEs, Ankang Longevity Group, entered into an agreement (“Agreement”) with an unrelated third party, Shaanxi Xunyang Hongye Real Estate Co., Ltd. (“Xunyang Hongye”), to jointly invest a total of RMB 60.0 9.0 40.0 6.0 60 1,720 820 40.0 6.0 June 30, 2016 June 30, 2015 Shanxi XunyangHongye Real Estate Co., Ltd $ - $ 6,548,000 Total investments (A+B) $ 4,766,847 $ 11,417,953 |
PREPAID LEASES
PREPAID LEASES | 12 Months Ended |
Jun. 30, 2016 | |
PREPAID LEASES [Abstract] | |
Prepaid Leases [Text Block] | NOTE 7 - PREPAID LEASES One of the Company’s controlled subsidiaries, Zhisheng Group entered into several farmland lease contracts with farmer cooperatives to lease farmland in order to plant and grow organic vegetable, fruit and Chinese yew trees. The lease term varies from 5 24 36.8 5.54 These leases are accounted for as operating leases and will be amortized each year on a straight-line basis over the lease terms. The amortization expense is initially recorded as work in process under inventory account during the growing period and then transferred to harvested crops costs at the time of harvest and then allocated to cost of sales when they are sold. The prepaid leases consist of the following: June 30, 2016 June 30, 2015 Current $ 478,565 $ 521,235 Non-current 3,860,327 4,719,320 Total $ 4,338,892 $ 5,240,555 Further amortization expense is as follows: Twelve months ending June 30: 2017 $ 478,565 2018 475,304 2019 475,304 2020 475,304 2021 475,304 Thereafter 1,959,111 Total $ 4,338,892 |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 8 - SHORT-TERM LOANS Lender June 30, 2016 Maturity Int. Chongqing Alibaba Micro-Credit Company-a $ 36,873 2016-9-9 * 15.21 % Agricultural Bank of China-b 301,008 2016-9-24 * 5.52 % Agricultural Bank of China-d 451,512 2016-8-9 * 5.82 % Agricultural Bank of China-c 451,512 2016-10-27 5.27 % Agricultural Bank of China-c 1,204,032 2016-11-18 5.22 % Agricultural Bank of China-c 301,008 2017-4-7 5.22 % Total $ 2,745,945 Lender June 30, 2015 Maturity Int. Beijing Rural Commercial Bank Donghua Branch $ 111,006 Due on demand * 7.97 % Agricultural Bank of China-b 327,400 2015-8-25 * 7.20 % Agricultural Bank of China-c 491,100 2015-7-29 * 7.20 % Agricultural Bank of China-c 327,400 2015-10-14 * 7.80 % Agricultural Bank of China-c 491,100 2015-10-16 * 7.20 % Agricultural Bank of China-c 1,309,600 2015-10-30 * 7.20 % Agricultural Bank of China-c 327,400 2016-2-16 * 6.42 % Total $ 3,385,006 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Not collateralized or guaranteed. b. Collateralized by the building owned by Xiaoyan Chen and Jing Chen, who are both the related parties of the company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Pharmaceutical (Group) Co., Ltd. Jing Chen is the sister of the Xiaoyan Chen but not a shareholder of Ankang Longevity Group. c. Guaranteed by commercial credit guaranty companies unrelated to the Company. d. Guaranteed by a commercial credit guaranty company, unrelated to the Company and also the loan guaranteed by Jiping Chen, a shareholder of the Company. * The Company repaid the loans in full on maturity date. The Company recorded interest expense of $ 171,827 238,265 5.96 7.24 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 9 - RELATED PARTY TRANSACTIONS DUE FROM RELATED PARTIES The Company had previously made temporary advances to certain shareholders of the Company as well as several other entities that are either owned by directors or family members of those directors. Those advances are due on demand, non-interest bearing, except for advance to Xinyang Yifangyuan Garden Technology Co., Ltd., which bears fixed monthly interest rate of 4.17 5.1 June 30, 2016 June 30, 2015 Shanxi Pharmacy Holding Group Longetive Pharmacy Co., Ltd $ - $ 1,158,764 Xinyang Yifangyuan Garden Technology Co., Ltd 500,784 593,413 Shaanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd 820,728 144,830 Yang Bin 150,504 163,700 Zhang Xin 93,312 101,494 Chang Song 85,035 64,662 Wang Qi Wei 8,279 9,005 Tian Shuangpeng 11,288 - Zhang Yuying - 3,624 Qi Qiuchi 1,505 171,885 KuerLe Tenet Jove Business & Trading Co., Ltd - 163,700 Huiyin Ansheng - 48,092 $ 1,671,435 $ 2,623,169 For the year ended June 30, 2016, interest income of $ 261,015 260,874 DUE TO RELATED PARTIES As of June 30, 2016 and 2015, the Company has related party payables of $ 244,915 137,508 June 30, 2016 June 30, 2015 Wang Sai 120,854 - Wu Yang 96,398 137,508 Zhang Yuying 26,769 - Huiyin Ansheng 894 - $ 244,915 $ 137,508 SALES TO AND PURCHASES FROM RELATED PARTIES For the year ended June 30, 2016 and 2015, the Company recorded sales to Shaanxi Pharmaceutical Group Pai’ang Medicine Co., Ltd, a related party, of $ 3,014,198 3,176,386 |
TAXES
TAXES | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 10 - TAXES (a) Corporate Income Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the location in which each entity is domiciled. Shineco is incorporated in the United States and has no operating activities. Tenet-Jove and its VIEs entities are governed by the Income Tax Laws of the PRC, and are currently subject to tax at a statutory rate of 25 i) The components of the income tax (benefit) expense are as follows: For the years ended 2016 2015 Current income tax provision $ 1,298,472 $ 1,189,135 Deferred income tax benefit (120,765) (64,419) Total $ 1,177,707 $ 1,124,716 ii) The following table summarizes deferred tax assets resulting from differences between the financial reporting basis and tax basis of assets and liabilities: June 30, 2016 June 30, 2015 Allowance for doubtful accounts $ 123,818 $ 22,612 Inventory reserve 203,674 145,073 Impairment of investment - 61,387 Net operating loss carry-forwards 114,122 108,932 Total 441,614 338,004 Valuation allowance (114,122) (108,932) Deferred tax assets, net $ 327,492 $ 229,072 As of June 30, 2016 and 2015, net operating loss carry-forwards allowed by PRC tax authorities was $456,477 and $435,728, respectively. These carryforwards will expire, if not utilized by June 2021 and June 2020, respectively. June 30, 2016 June 30, 2015 Beginning balance $ 108,932 $ 313,342 Current year addition 13,971 - Current year reversal - (206,724) Exchange difference (8,781) 2,314 Ending balance $ 114,122 $ 108,932 iii) The following table reconciles the PRC statutory rates to the Company's effective tax rate for the years ended June 30, 2016 and 2015: For the years ended 2016 2015 PRC statutory tax rate 25.00 % 25.00 % Exemption rendered by local tax authorities (12.56) % (11.87) % Effective tax rate 12.44 % 13.13 % (b) Value Added Tax The Company is subject to a value added tax (“VAT”) for selling merchandise. The applicable VAT rate is 17 In the event that the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of the taxes which are determined to be late or deficient, and will be expensed in the period if and when a determination is made by the tax authorities. (c) Taxes Payable June 30, 2016 June 30, 2015 Income tax payable $ 1,201,641 $ 982,532 Value added tax payable 69,955 93,292 Business tax and other taxes payable 6,546 429 $ 1,278,142 $ 1,076,253 |
STATUTORY RESERVE
STATUTORY RESERVE | 12 Months Ended |
Jun. 30, 2016 | |
Statutory Reserve Disclosure [Abstract] | |
Statutory Reserve Disclosure [Text Block] | NOTE 11 - STATUTORY RESERVE The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve is required to be at least 10 50 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 12- EARNINGS PER SHARE For the years ended June 30, 2016 2015 Net income $ 8,292,822 $ 7,440,400 Net income attributable to common stock holders 8,136,896 7,280,278 Weighted average shares used in basic computation 19,320,882 19,320,882 Diluted effect of contingently redeemable convertible preferred stock - - Weighted average shares used in diluted computation 19,320,882 19,320,882 Earnings per share Basic and diluted: Net income 0.43 0.39 Less: Net income attributable to non-controlling interest (0.01) (0.01) Net income attributable to controlling interest 0.42 0.38 |
CONCENTRATION AND RISKS
CONCENTRATION AND RISKS | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 13 - CONCENTRATION AND RISKS The Company maintains certain bank accounts in the PRC which are not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. The cash balance held in the PRC bank accounts was $ 21,986,817 4,683,945 During the years ended June 30, 2016 and 2015, almost 100 100 For the year ended June 30, 2016, one customer accounted for approximately 40 For the year ended June 30, 2015, two customers accounted for approximately 33 10 For the year ended June 30, 2016, three vendors accounted for approximately 25 13 11 For the year ended June 30, 2015, one vendor accounted for approximately 42 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 14 - COMMITMENTS AND CONTINGENCIES The Company leases eight main office spaces under non-cancelable operating lease agreements through February 28, 2019. The Company also leases farmland under non-cancelable operating lease agreement through April 26, 2041. Most of those operating lease payments are scheduled on a quarterly basis. Twelve months ending June 30: 2017 $ 563,084 2018 467,832 2019 240,501 2020 223,920 2021 223,920 Thereafter 4,441,080 Total $ 6,160,337 Rent expense totaled $434,475 and $388,544 for the years ended June 30, 2016 and 2015, respectively. In addition, due to the shift of business focus, the Company sublets the above-mentioned farmland to a third party under non-cancelable operating lease agreement through May 31, 2020. The future minimum sublease rental income to be received are as follows: Twelve months ending June 30: 2017 $ 233,920 2018 233,920 2019 233,920 2020 205,260 Total $ 907,020 Sublease rent income totaled $233,920 and $234,576 for the years ended June 30, 2016 and 2015, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 15 - SEGMENT REPORTING ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Group's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Group's business segments. The Company's chief operating decision maker has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. Based on management's assessment, the Company has determined that it has three operating segments according to the major products and locations as follows: Ø Developing, manufacturing and distributing of specialized fabrics, textile products and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as “Bluish Dogbane” or known in Chinese as “Luobuma” (referred to herein as Luobuma): The operating companies of this segment, namely Tenet-Jove and Tenet Huatai, specialize in Luobuma developing and manufacturing of relevant products. With rich experience and broad channels in domestic market, the Group is leading in Luobuma textile production and other by-products. This segment’s operations are focused in the north region of Mainland China, mostly carried out in Beijing and Tianjin City. Ø Planting, processing and distributing of traditional Chinese medicinal herbal products as well as other pharmaceutical products (“Herbal products”): The operating companies of this segment, namely AnKang Longevity Group and its subsidiaries, plant and process more than 600 kinds of Chinese medicinal herbal products with an established domestic sales and distribution network. Ankang Longevity Group is also engaged in retail pharmacy business and the operating revenue is also included in this segment due to immaterial amount. Ankang Longevity Group also started a joint-venture pharmacy retail and wholesale distribution business in the second quarter of 2013 with a large Chinese pharmaceutical company, Shaanxi Pharmaceutical Holdings Group, aiming to expand its pharmacy retail and wholesale business. The operations of this segment are mainly located in the Mid-western region of Mainland China. Ø Planting, processing and distributing of green and organic agricultural produce as well as growing and cultivating of Chinese Yew trees (“Agricultural products”): The operating companies of this segment, the Zhisheng Group, engage in the business of growing and distributing green and organic vegetables and fruits as well as providing logistics services for distributing agricultural products. This segment has been focusing its efforts on the growing and cultivating of Chinese yew tree (formally known as “taxus media”), a small evergreen tree whose branches can be used for the production of anti-cancer medication and tree itself can be used for ornamental indoor bonsai tree, which are known to have the effect of purifying air quality. The operations of this segment are located in the East and North regions of Mainland China, mostly carried out in Shandong Province and in Beijing where the Zhisheng Group has newly developed over 100 acres of modern greenhouses for cultivating yew trees and other plants. For the year ended June 30, 2016 Bluish Herbal Agricultural dogbane products products Total Segment revenue $ 4,387,060 $ 14,031,955 $ 16,787,837 $ 35,206,852 Cost of goods 1,974,182 10,990,162 11,072,897 24,037,241 Business and sales related tax 20,711 64,327 - 85,038 Gross profit 2,392,167 2,977,466 5,714,940 11,084,573 Gross profit contribution % 21.6 % 26.9 % 51.5 % 100.0 % The following table presents summarized information by segment for year ended June 30, 2015: For the year ended June 30, 2015 Bluish Herbal Agricultural dogbane products products Total Segment revenue $ 3,530,807 $ 13,858,949 $ 15,240,746 $ 32,630,502 Cost of goods 1,349,520 10,982,826 9,872,387 22,204,733 Business and sales related tax 12,624 65,624 14 78,262 Gross profit 2,168,663 2,810,499 5,368,345 10,347,507 Gross profit contribution % 21.0 % 27.2 % 51.8 % 100.0 % Total Assets as of June 30, 2016 June 30, 2015 Bluish Dogbane or “Luobuma” $ 6,963,093 $ 6,308,727 Herbal products 28,088,515 25,001,487 Agricultural products 21,997,180 20,821,910 $ 57,048,788 $ 52,132,124 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16 - SUBSEQUENT EVENTS On September 23, 2016, the Board of Directors of the Company approved a stock incentive plan (“Plan”). Pursuant to the Plan, the Company plans to file a registration statement on Form S-8 as soon as practicable after the closing of its initial public offering to register up to 2,103,407 of the Company’s shares of common stock. As of the date of this report, the Company has not issued any options to purchase the Company's shares of common stock. On September 27, 2016, the Company completed an initial public offering of 1,713,190 4.50 |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation [Policy Text Block] | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements of the Company reflect the principal activities of the Company, its subsidiaries, its VIEs and its VIEs’ subsidiaries. The non-controlling interest represents the minority shareholders’ interest in the Company’s majority owned subsidiaries. All intercompany transactions have been eliminated . |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Consolidation of Variable Interest Entities In accordance with accounting standards regarding consolidation of variable interest entities (“VIEs”), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. June 30, 2016 June 30, 2015 Current assets $ 30,560,208 $ 21,054,168 Plant and equipment, net 9,595,357 4,187,397 Other noncurrent assets 10,136,632 17,559,402 Total assets 50,292,197 42,800,967 Total liabilities (4,398,424) (4,804,296) Net assets $ 45,893,773 $ 37,996,671 |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Non-controlling Interests US GAAP requires that non-controlling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the net income (loss) of those subsidiaries are reported separately in the consolidated statements of income and comprehensive income. |
Risks and Uncertainties [Policy Text Block] | Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, as well as by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other factors, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in the PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations, this may not be indicative of future results. Members of the current management team own controlling interests in the Company and are also the owners of the VIEs in the PRC. The Company only controls the VIEs through contractual arrangements which obligate it to absorb the risk of loss and to receive the residual expected returns. As such, the controlling shareholders of the Company and the VIEs could cancel these agreements or permit them to expire at the end of the agreement terms, as a result of which the Company would not retain control of the VIEs. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting period. Significant estimates required to be made by management include, but are not limited to, useful lives of property, plant, and equipment, intangible assets, the recoverability of long-lived assets and the valuation of accounts receivable, deferred tax assets, accrued expenses, taxes payable and inventories. Actual results could differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | The Company recognizes revenue from sales of bluish dogbane products, Chinese medicinal herbal products and agricultural products, as well as providing logistic service and other processing service to external customers. The Company recognizes revenue when all of the following have occurred: (i) there is persuasive evidence of an arrangement with a customer (ii) delivery has occurred or services have been rendered (iii) the sales price is fixed or determinable and (iv) the Company’s collection of such fees is reasonable assured. These criteria, as related to the Company’s revenue, are considered to have been met as follows: Sales of products : The Company recognizes revenue on sale of products when the goods are delivered and title to the goods passes to the customer provided that there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectability is deemed probable. Revenue from the rendering of services: Revenue from international freight forwarding, domestic air and overland freight forwarding services are recognized upon performance of services as stipulated in the underlying contract or when commodities are being released from the customer’s warehouse; the service price is fixed or determinable; and collectability is deemed probable. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposits and other highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. The Company maintains cash and cash equivalents with various financial institutions mainly in the PRC. Balances in banks in the PRC are uninsured. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are recorded at net realizable value consisting of carrying amount less an allowance for uncollectible accounts, as necessary. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowance when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customers’ historical payment history, their current credit-worthiness and current economic trends. As of June 30, 2016 and 2015, the allowances for doubtful accounts were $ 103,968 81,374 Accounts are written off against the allowance after efforts at collection prove unsuccessful. Accounts receivable-unconsolidated entity represents the amount due from Shanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd. (“Shaanxi Pharmaceutical Group”), with whom the Company entered into a supplemental agreement in September 2013. According to the supplemental agreement, the joint-venture company established by Shaanxi Pharmaceutical and the Company are required to exclusively purchase certain raw materials and drug products from Shaanxi Pharmaceutical Group. In return, Shaanxi Pharmaceutical Group has agreed to compensate Ankang Longevity Group with a preferred distribution that equals to 7% of the total purchases made from Shaanxi Pharmaceutical Group. The accounts receivable mainly represents the preferred distribution due from Shaanxi Pharmaceutical Group. As of June 30, 2016 and 2015, the balance of accounts receivable unconsolidated entity was $ 1,088,144 2,409,664 |
Inventory, Policy [Policy Text Block] | Inventories Inventories, which are stated at the lower of cost or current market value, consisting of raw materials, work-in-progress, finished goods related to the Company’s products. Cost is determined using the first in first out (FIFO) method. Market is the lower of replacement cost or net realizable value. Agricultural products that the Company farms are recorded at cost, which includes direct costs such as seed selection, fertilizer, labor cost and contract fee that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayment of farmland lease fee and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to harvested crops costs when they are sold. The Company periodically evaluates its inventory and records inventory reserve for certain inventories that may not be saleable. As of June 30, 2016 and 2015, the Company recorded inventory reserves of $ 819,285 585,283 |
Advances to Suppliers [Policy Text Block] | Advances to Suppliers Advances to suppliers consist of balance paid to suppliers for materials that have not been received. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired. As of June 30, 2016 and 2015, the Company had an allowance for uncollectible advances to suppliers in the amount of $ 10,118 561 |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans to third parties consist of various cash advances to unrelated companies and individuals, with whom the Company has business relationships. The loans are due within one year with no interest rate. Loans to third parties are reviewed periodically as to whether their carrying values remain realizable. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Expenditures for additions, major renewal and betterments are capitalized, and expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less estimated residual value, over an asset’s estimated useful life, Farmland leasehold improvements are amortized over the shorter of lease term or remaining lease period of the underlying assets. Estimated useful lives Buildings 20-50 years Machinery equipment 5-10 years Motor vehicles 5-10 years Office equipment 5-10 years Farmland leasehold improvements 12-18 years |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Land Use Right Under PRC law, all land in the PRC is owned by the government and cannot be sold to an individual or company. The government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights are stated at cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method. Estimated useful life is 50 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | The Company accounts for long-lived assets under FASB Codification Topic 360 (ASC Topic 360) “Accounting for Goodwill and Other Intangible Assets” and “Accounting for Impairment or Disposal of Long-Lived Assets.” Finite-lived assets and intangibles are also reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. The long-lived assets of the Company that are subject to evaluation consist primarily of property, plant and equipment, land use rights, investments and long-term prepaid lease. For the years ended June 30, 2016 and 2015, the Company did not recognize any impairment of its long-lived assets. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company adopted the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying value of accounts receivable, other current assets, short term loans, other payables and accrued expenses approximate their fair values because of the short-term nature of these instruments. |
Income Tax, Policy [Policy Text Block] | Income Tax The Company accounts for income taxes under FASB Codification Topic 740 (ASC 740). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related disclosures. The Company does not have any uncertain tax positions at June 30, 2016 and 2015. The statute of limitations for the Company’s U.S. federal income tax returns and certain state income tax returns remains open for tax years 2013 and after. As of June 30, 2016, the tax years ended June 30, 2007 through June 30, 2016 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. |
Value Added Tax [Policy Text Block] | Sales revenue represents the invoiced value of goods, net of a Value-Added Tax (“VAT”). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes. The Company’s subsidiaries and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes, the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive income (loss). The balance sheet amounts, with the exception of equity, at June 30, 2016 and 2015 were translated at 1 RMB to $ 0.1505 0.1637 0.1555 0.1629 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income. The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to US$ is reported in other comprehensive income (loss) in the consolidated statements of income and comprehensive income. |
Equity Method Investments, Policy [Policy Text Block] | Equity Investment An investment in which the Company has the ability to exercise significant influence, but does not have a controlling interest, is accounted for using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock between 20 50 |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive effect for the years ended June 30, 2016 and 2015. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income or cash flow as previously prepared. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In November 2015, the FASB has issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company early adopted this update as permitted and, accordingly, has presented deferred tax assets as long-term on the Company's consolidated balance sheets. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients". The amendments, among other things: (1) clarify the objective of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy US GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The effective date of these amendments is at the same date that Topic 606 is effective. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The carrying amount of the VIEs and their subsidiaries’ consolidated assets and liabilities are as following: June 30, 2016 June 30, 2015 Current assets $ 30,560,208 $ 21,054,168 Plant and equipment, net 9,595,357 4,187,397 Other noncurrent assets 10,136,632 17,559,402 Total assets 50,292,197 42,800,967 Total liabilities (4,398,424) (4,804,296) Net assets $ 45,893,773 $ 37,996,671 |
Summary of Estimated useful lives of Property and Equipment [Table Text Block] | Following are the estimated useful lives of the Company’s property and equipment: Estimated useful lives Buildings 20-50 years Machinery equipment 5-10 years Motor vehicles 5-10 years Office equipment 5-10 years Farmland leasehold improvements 12-18 years |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The inventories consist of the following: June 30, 2016 June 30, 2015 Raw materials $ 825,028 $ 920,973 Work-in-process 3,230,729 6,674,890 Finished goods 1,354,176 1,268,681 Packing materials 17,531 23,036 Less: inventory reserve (819,285) (585,283) $ 4,608,179 $ 8,302,297 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | June 30, 2016 June 30, 2015 Buildings $ 10,726,872 * $ 5,113,662 Building improvement 52,834 57,467 Machinery equipment 443,846 476,044 Motor vehicles 231,434 251,726 Construction in progress 451,512 - Office equipment 208,022 206,134 Farmland leasehold improvement 3,164,943 3,442,441 15,279,463 9,547,474 Less: accumulated depreciation and amortization (4,244,264) (3,741,509) Property, plant and equipment, net $ 11,035,199 $ 5,805,965 *: $ 6,219,960 |
Schedule of Leasehold Improvements [Table Text Block] | Farmland leasehold improvements consist of following: June 30, 2016 June 30, 2015 Blueberry farmland leasehold reconstruction $ 2,431,450 $ 2,644,636 Yew tree planting base reconstruction 272,412 296,297 Greenhouse renovation 461,081 501,508 Total farmland leasehold improvement $ 3,164,943 $ 3,442,441 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The Company has the Right to use the land for 50 June 30, 2016 June 30, 2015 Land use rights $ 1,674,053 $ 1,820,832 Less: accumulated amortization (265,288) (252,131) Land use rights, net $ 1,408,765 $ 1,568,701 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Twelve months ending June 30: 2017 $ 33,481 2018 33,481 2019 33,481 2020 33,481 2021 33,481 Thereafter 1,241,360 Total $ 1,408,765 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | The Company’s investments in unconsolidated entities consist of the following: June 30, 2016 June 30, 2015 Shaanxi Pharmacy Holding Group Longevity Pharmacy Co., Ltd ( Ankang Longevity Pharmacy ) $ 2,091,531 $ 1,797,814 Shaanxi Pharmacy Sunsimiao Drugstores Ankang Chain Co., Ltd 493,008 452,939 Nanjing Kang Tian Yi Dressing & Adornment Co., Ltd - 245,550 Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. 2,182,308 2,373,650 Total $ 4,766,847 $ 4,869,953 The Company’s investments in real estate project consist of the following: June 30, 2016 June 30, 2015 Shanxi XunyangHongye Real Estate Co., Ltd $ - $ 6,548,000 Total investments (A+B) $ 4,766,847 $ 11,417,953 |
Equity Method Investments Summarized Financial Information [Table Text Block] | Summarized financial information of unconsolidated entities is as follows: June 30, 2016 June 30, 2015 Current assets $ 28,450,106 $ 26,768,724 Noncurrent assets 386,764 547,736 Current liabilities 23,577,799 22,739,953 Noncurrent liabilities - - For the years ended June 30, 2016 2015 Net sales $ 25,456,718 $ 35,891,304 Gross profit 3,382,468 3,233,879 Income from operations 1,071,742 1,857,819 Net income 1,086,377 1,856,794 |
PREPAID LEASES (Tables)
PREPAID LEASES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
PREPAID LEASES [Abstract] | |
Schedule of Long Term Prepaid Expenses [Table Text Block] | The prepaid leases consist of the following: June 30, 2016 June 30, 2015 Current $ 478,565 $ 521,235 Non-current 3,860,327 4,719,320 Total $ 4,338,892 $ 5,240,555 |
Schedule of Operating Lease Further Amortization Expense [Table Text Block] | Further amortization expense is as follows: Twelve months ending June 30: 2017 $ 478,565 2018 475,304 2019 475,304 2020 475,304 2021 475,304 Thereafter 1,959,111 Total $ 4,338,892 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term loans consist of the following: Lender June 30, 2016 Maturity Int. Chongqing Alibaba Micro-Credit Company-a $ 36,873 2016-9-9 * 15.21 % Agricultural Bank of China-b 301,008 2016-9-24 * 5.52 % Agricultural Bank of China-d 451,512 2016-8-9 * 5.82 % Agricultural Bank of China-c 451,512 2016-10-27 5.27 % Agricultural Bank of China-c 1,204,032 2016-11-18 5.22 % Agricultural Bank of China-c 301,008 2017-4-7 5.22 % Total $ 2,745,945 Lender June 30, 2015 Maturity Int. Beijing Rural Commercial Bank Donghua Branch $ 111,006 Due on demand * 7.97 % Agricultural Bank of China-b 327,400 2015-8-25 * 7.20 % Agricultural Bank of China-c 491,100 2015-7-29 * 7.20 % Agricultural Bank of China-c 327,400 2015-10-14 * 7.80 % Agricultural Bank of China-c 491,100 2015-10-16 * 7.20 % Agricultural Bank of China-c 1,309,600 2015-10-30 * 7.20 % Agricultural Bank of China-c 327,400 2016-2-16 * 6.42 % Total $ 3,385,006 The loans outstanding were guaranteed by the following properties, entities or individuals: a. Not collateralized or guaranteed. b. Collateralized by the building owned by Xiaoyan Chen and Jing Chen, who are both the related parties of the company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Pharmaceutical (Group) Co., Ltd. Jing Chen is the sister of the Xiaoyan Chen but not a shareholder of Ankang Longevity Group. c. Guaranteed by commercial credit guaranty companies unrelated to the Company. d. Guaranteed by a commercial credit guaranty company, unrelated to the Company and also the loan guaranteed by Jiping Chen, a shareholder of the Company. * The Company repaid the loans in full on maturity date. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule Of Amounts Due From Related Parties [Table Text Block] | As of June 30, 2016 and 2015, the outstanding amounts due from related parties consist of the following: June 30, 2016 June 30, 2015 Shanxi Pharmacy Holding Group Longetive Pharmacy Co., Ltd $ - $ 1,158,764 Xinyang Yifangyuan Garden Technology Co., Ltd 500,784 593,413 Shaanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd 820,728 144,830 Yang Bin 150,504 163,700 Zhang Xin 93,312 101,494 Chang Song 85,035 64,662 Wang Qi Wei 8,279 9,005 Tian Shuangpeng 11,288 - Zhang Yuying - 3,624 Qi Qiuchi 1,505 171,885 KuerLe Tenet Jove Business & Trading Co., Ltd - 163,700 Huiyin Ansheng - 48,092 $ 1,671,435 $ 2,623,169 |
Schedule Of Amounts Due To Related Parties [Table Text Block] | The payables are unsecured, non-interest bearing and due on demand. June 30, 2016 June 30, 2015 Wang Sai 120,854 - Wu Yang 96,398 137,508 Zhang Yuying 26,769 - Huiyin Ansheng 894 - $ 244,915 $ 137,508 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the years ended 2016 2015 Current income tax provision $ 1,298,472 $ 1,189,135 Deferred income tax benefit (120,765) (64,419) Total $ 1,177,707 $ 1,124,716 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, 2016 June 30, 2015 Allowance for doubtful accounts $ 123,818 $ 22,612 Inventory reserve 203,674 145,073 Impairment of investment - 61,387 Net operating loss carry-forwards 114,122 108,932 Total 441,614 338,004 Valuation allowance (114,122) (108,932) Deferred tax assets, net $ 327,492 $ 229,072 |
Summary of Valuation Allowance [Table Text Block] | Movement of valuation allowance: June 30, 2016 June 30, 2015 Beginning balance $ 108,932 $ 313,342 Current year addition 13,971 - Current year reversal - (206,724) Exchange difference (8,781) 2,314 Ending balance $ 114,122 $ 108,932 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the years ended 2016 2015 PRC statutory tax rate 25.00 % 25.00 % Exemption rendered by local tax authorities (12.56) % (11.87) % Effective tax rate 12.44 % 13.13 % |
Schedule of Taxes Payable [Table Text Block] | Taxes payable consists of the following: June 30, 2016 June 30, 2015 Income tax payable $ 1,201,641 $ 982,532 Value added tax payable 69,955 93,292 Business tax and other taxes payable 6,546 429 $ 1,278,142 $ 1,076,253 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents a reconciliation of basic and diluted net income per share: For the years ended June 30, 2016 2015 Net income $ 8,292,822 $ 7,440,400 Net income attributable to common stock holders 8,136,896 7,280,278 Weighted average shares used in basic computation 19,320,882 19,320,882 Diluted effect of contingently redeemable convertible preferred stock - - Weighted average shares used in diluted computation 19,320,882 19,320,882 Earnings per share Basic and diluted: Net income 0.43 0.39 Less: Net income attributable to non-controlling interest (0.01) (0.01) Net income attributable to controlling interest 0.42 0.38 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents summarized information by segment for the year ended June 30, 2016: For the year ended June 30, 2016 Bluish Herbal Agricultural dogbane products products Total Segment revenue $ 4,387,060 $ 14,031,955 $ 16,787,837 $ 35,206,852 Cost of goods 1,974,182 10,990,162 11,072,897 24,037,241 Business and sales related tax 20,711 64,327 - 85,038 Gross profit 2,392,167 2,977,466 5,714,940 11,084,573 Gross profit contribution % 21.6 % 26.9 % 51.5 % 100.0 % The following table presents summarized information by segment for year ended June 30, 2015: For the year ended June 30, 2015 Bluish Herbal Agricultural dogbane products products Total Segment revenue $ 3,530,807 $ 13,858,949 $ 15,240,746 $ 32,630,502 Cost of goods 1,349,520 10,982,826 9,872,387 22,204,733 Business and sales related tax 12,624 65,624 14 78,262 Gross profit 2,168,663 2,810,499 5,368,345 10,347,507 Gross profit contribution % 21.0 % 27.2 % 51.8 % 100.0 % Total Assets as of June 30, 2016 June 30, 2015 Bluish Dogbane or “Luobuma” $ 6,963,093 $ 6,308,727 Herbal products 28,088,515 25,001,487 Agricultural products 21,997,180 20,821,910 $ 57,048,788 $ 52,132,124 |
ORGANIZATION AND NATURE OF OP35
ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) | Jun. 30, 2016 |
Tenet-Jove Technological Development Corp., Ltd [Member] | |
Organization And Nature Of Operations [Line Items] | |
Minority Interest Ownership Percentage By Parent | 100.00% |
Tenet Huatai Technological Development Co., Ltd [Member] | |
Organization And Nature Of Operations [Line Items] | |
Equity Method Investment, Ownership Percentage | 90.00% |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 50,292,197 | $ 42,800,967 |
Total liabilities | (4,398,424) | (4,804,296) |
Net assets | 45,893,773 | 37,996,671 |
Property, Plant and Equipment [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 9,595,357 | 4,187,397 |
Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 30,560,208 | 21,054,168 |
Other Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 10,136,632 | $ 17,559,402 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Jun. 30, 2016 | |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Minimum [Member] | Machinery equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Farmland leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 50 years |
Maximum [Member] | Machinery equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum [Member] | Farmland leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 18 years |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Significant Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 103,968 | $ 81,374 |
Accounts Receivable, Related Parties, Current | 1,088,144 | 2,409,664 |
Inventory Valuation Reserves | 819,285 | 585,283 |
Advances To Suppliers | $ 10,118 | $ 561 |
Finite-Lived Intangible Asset, Useful Life | 50 years | |
Foreign Currency Exchange Rate, Translation | 0.1505 | 0.1637 |
Foreign Currency Transactions Weighted Average Exchange Rate | 0.1555 | 0.1629 |
Value added Tax Rate | 17.00% | |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | |
Land Use Rights [Member] | ||
Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 50 years |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 825,028 | $ 920,973 |
Work-in-process | 3,230,729 | 6,674,890 |
Finished goods | 1,354,176 | 1,268,681 |
Packing materials | 17,531 | 23,036 |
Less: inventory reserve | (819,285) | (585,283) |
Inventory, Net, Total | $ 4,608,179 | $ 8,302,297 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 15,279,463 | $ 9,547,474 | |
Less: accumulated depreciation and amortization | (4,244,264) | (3,741,509) | |
Property, plant and equipment, net | 11,035,199 | 5,805,965 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 10,726,872 | [1] | 5,113,662 |
Building improvement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 52,834 | 57,467 | |
Machinery equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 443,846 | 476,044 | |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 231,434 | 251,726 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 451,512 | 0 | |
Office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 208,022 | 206,134 | |
Farmland leasehold improvement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 3,164,943 | $ 3,442,441 | |
[1] | $6,219,960 was converted from long-term investment to building, details see Note 6. |
PROPERTY AND EQUIPMENT, NET (41
PROPERTY AND EQUIPMENT, NET (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | $ 3,164,943 | $ 3,442,441 |
Blueberry farmland leasehold reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | 2,431,450 | 2,644,636 |
Yew tree planting base reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | 272,412 | 296,297 |
Greenhouse renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | $ 461,081 | $ 501,508 |
PROPERTY AND EQUIPMENT, NET (42
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation, Depletion and Amortization, Nonproduction, Total | $ 831,057 | $ 766,705 |
Long Term Investment Converted To Fixed Assets | $ 6,219,960 | $ 0 |
LAND USE RIGHTS, NET (Details)
LAND USE RIGHTS, NET (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Goodwill [Line Items] | ||
Land use rights | $ 1,674,053 | $ 1,820,832 |
Less: accumulated amortization | (265,288) | (252,131) |
Land use rights, net | $ 1,408,765 | $ 1,568,701 |
LAND USE RIGHTS, NET (Details 1
LAND USE RIGHTS, NET (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Twelve months ending June 30: | ||
2,017 | $ 33,481 | |
2,018 | 33,481 | |
2,019 | 33,481 | |
2,020 | 33,481 | |
2,021 | 33,481 | |
Thereafter | 1,241,360 | |
Total | $ 1,408,765 | $ 1,568,701 |
LAND USE RIGHTS, NET (Details T
LAND USE RIGHTS, NET (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 50 years | |
Amortization | $ 34,592 | $ 36,239 |
INVESTMENTS (Details)
INVESTMENTS (Details) ¥ in Millions | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Apr. 06, 2013CNY (¥) |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 4,766,847 | $ 4,869,953 | |
Shaanxi Pharmacy Holding Group Longevity Pharmacy Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 2,091,531 | 1,797,814 | |
Shaanxi Pharmacy Sunsimiao Drugstores Ankang Chain Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 493,008 | 452,939 | |
Nanjing Kang Tian Yi Dressing & Adornment Co., Ltd [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 0 | 245,550 | ¥ 1.5 |
Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 2,182,308 | $ 2,373,650 |
INVESTMENTS (Details 1)
INVESTMENTS (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 28,450,106 | $ 26,768,724 |
Noncurrent assets | 386,764 | 547,736 |
Current liabilities | 23,577,799 | 22,739,953 |
Noncurrent liabilities | $ 0 | $ 0 |
INVESTMENTS (Details 2)
INVESTMENTS (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Net sales | $ 25,456,718 | $ 35,891,304 |
Gross profit | 3,382,468 | 3,233,879 |
Income from operations | 1,071,742 | 1,857,819 |
Net income | $ 1,086,377 | $ 1,856,794 |
INVESTMENTS (Details 3)
INVESTMENTS (Details 3) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Shanxi XunyangHongye Real Estate Co., Ltd | $ 0 | $ 6,548,000 |
Total investments (A+B) | $ 4,766,847 | $ 11,417,953 |
INVESTMENTS (Details Textual)
INVESTMENTS (Details Textual) | 1 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | Oct. 21, 2013USD ($) | Jun. 30, 2016USD ($)ft² | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2016CNY (¥)ft² | Jan. 28, 2014USD ($) | Jan. 28, 2014CNY (¥) | Oct. 21, 2013CNY (¥) | Jun. 02, 2013USD ($) | Apr. 06, 2013CNY (¥) | Sep. 27, 2012USD ($) | Sep. 27, 2012CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investments | $ 4,766,847 | $ 4,869,953 | ||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 2,428,894 | 65,160 | ||||||||||||
Real Estate Investments, Joint Ventures | 0 | 6,548,000 | ||||||||||||
Other Asset Impairment Charges | 244,350 | |||||||||||||
Gain (Loss) on Sale of Investments | 233,249 | 0 | ||||||||||||
Proceeds from Sale, Maturity and Collection of Investments | 466,497 | 0 | ||||||||||||
Nanjing Kangtianyi [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investments | 0 | 245,550 | ¥ 1,500,000 | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 30.00% | |||||||||||||
Tianjin Ou'Feng [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investments | $ 230,000 | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 40.00% | |||||||||||||
Tiancang Systematic Warehousing Project [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investments | $ 2,200,000 | ¥ 14,500,000 | ||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 139,949 | |||||||||||||
Equity Method Investments Percentage of Share on Net Income Loss | 29.00% | |||||||||||||
Equity Method Investments Percentage of Statutory Reserve Deductible | 30.00% | |||||||||||||
Equity Method Investments, Percentage of Employee Welfare Fund Contributions Deductible | 10.00% | |||||||||||||
Equity Method Investments Percentage of Statutory Reserve Threshold | 30.00% | |||||||||||||
Ankang Longevity Group [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investments | $ 1,000,000 | ¥ 6,800,000 | ||||||||||||
Income (Loss) from Equity Method Investments | 532,320 | 599,118 | ||||||||||||
Real Estate Investments, Joint Ventures | $ 6,000,000 | ¥ 40,000,000 | $ 6,000,000 | ¥ 40,000,000 | ||||||||||
Ankang Longevity Group [Member] | Floor One And Two [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Area of Real Estate Property | ft² | 1,720 | 1,720 | ||||||||||||
Ankang Longevity Group [Member] | Floor Three [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Area of Real Estate Property | ft² | 820 | 820 | ||||||||||||
Ankang Longevity Group [Member] | Sunsimiao Drugstores [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||||||
Ankang Longevity Group [Member] | Shaanxi Pharmaceutical Group [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||||||
Percentage of Preferred Distribution | 7.00% | 7.00% | ||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 1,124,258 | $ 1,124,010 | ||||||||||||
Ankang Longevity Group [Member] | Shaanxi Xunyang Hongye Real Estate Co., Ltd [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | 60.00% | ||||||||||||
Real Estate Investments, Joint Ventures | $ 9,000,000 | ¥ 60,000,000 | ||||||||||||
Nanjing Kang Tian Yi Dressing Adornment Co Ltd [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 16,370 | ¥ 100,000 | ||||||||||||
Nanjing Kang Tian Yi Dressing Adornment Co Ltd And Tianjin Ou Feng Biotechnology Co Ltd [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Proceeds from Sale, Maturity and Collection of Investments | $ 450,000 | ¥ 3,000,000 |
PREPAID LEASES (Details)
PREPAID LEASES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current | $ 478,565 | $ 521,235 |
Non-current | 3,860,327 | 4,719,320 |
Total | $ 4,338,892 | $ 5,240,555 |
PREPAID LEASES (Details 1)
PREPAID LEASES (Details 1) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Twelve months ending June 30: | |
2,017 | $ 478,565 |
2,018 | 475,304 |
2,019 | 475,304 |
2,020 | 475,304 |
2,021 | 475,304 |
Thereafter | 1,959,111 |
Total | $ 4,338,892 |
PREPAID LEASES (Details Textual
PREPAID LEASES (Details Textual) $ in Thousands, ¥ in Millions | 12 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | |
Operating Leases, Rent Expense | $ 5,540 | ¥ 36.8 |
Maximum [Member] | ||
Operating Lease, Lease Term | 24 years | 24 years |
Minimum [Member] | ||
Operating Lease, Lease Term | 5 years | 5 years |
SHORT-TERM LOANS (Details)
SHORT-TERM LOANS (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | ||||
Short-term Debt | $ 2,745,945 | $ 3,385,006 | |||
Short-term Debt, Weighted Average Interest Rate | 5.96% | 7.24% | |||
Chongqing Alibaba Micro-Credit Company-a [Member] | |||||
Short-term Debt | [1] | $ 36,873 | |||
Debt Instrument, Maturity Date | [1],[2] | Sep. 9, 2016 | |||
Short-term Debt, Weighted Average Interest Rate | [1] | 15.21% | |||
Beijing Rural Commercial Bank Donghua Branch [Member] | |||||
Short-term Debt | $ 111,006 | ||||
Debt Instrument, Maturity Date, Description | [2] | Due on demand | |||
Short-term Debt, Weighted Average Interest Rate | 7.97% | ||||
Agricultural Bank of China-b [Member] | |||||
Short-term Debt | [3] | $ 301,008 | $ 327,400 | ||
Debt Instrument, Maturity Date | [2],[3] | Sep. 24, 2016 | Aug. 25, 2015 | ||
Short-term Debt, Weighted Average Interest Rate | [3] | 5.52% | 7.20% | ||
Agricultural Bank of China-c One [Member] | |||||
Short-term Debt | [4] | $ 491,100 | |||
Debt Instrument, Maturity Date | [2] | Aug. 9, 2016 | [5] | Jul. 29, 2015 | [4] |
Short-term Debt, Weighted Average Interest Rate | [4] | 7.20% | |||
Agricultural Bank of China-d [Member] | |||||
Short-term Debt | [5] | $ 451,512 | |||
Short-term Debt, Weighted Average Interest Rate | [5] | 5.82% | |||
Agricultural Bank of China-c Two [Member] | |||||
Short-term Debt | [4] | $ 451,512 | $ 327,400 | ||
Debt Instrument, Maturity Date | [4] | Oct. 27, 2016 | Oct. 14, 2015 | [2] | |
Short-term Debt, Weighted Average Interest Rate | [4] | 5.27% | 7.80% | ||
Agricultural Bank of China-c Three [Member] | |||||
Short-term Debt | [4] | $ 1,204,032 | $ 491,100 | ||
Debt Instrument, Maturity Date | [4] | Nov. 18, 2016 | Oct. 16, 2015 | [2] | |
Short-term Debt, Weighted Average Interest Rate | [4] | 5.22% | 7.20% | ||
Agricultural Bank of China-c Four [Member] | |||||
Short-term Debt | [4] | $ 301,008 | $ 1,309,600 | ||
Debt Instrument, Maturity Date | [4] | Apr. 7, 2017 | Oct. 30, 2015 | [2] | |
Short-term Debt, Weighted Average Interest Rate | [4] | 5.22% | 7.20% | ||
Agricultural Bank of China-c Five [Member] | |||||
Short-term Debt | [4] | $ 327,400 | |||
Debt Instrument, Maturity Date | [2],[4] | Feb. 16, 2016 | |||
Short-term Debt, Weighted Average Interest Rate | [4] | 6.42% | |||
[1] | Not collateralized or guaranteed. | ||||
[2] | The Company repaid the loans in full on maturity date. | ||||
[3] | Collateralized by the building owned by Xiaoyan Chen and Jing Chen, who are both the related parties of the company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Pharmaceutical (Group) Co., Ltd. Jing Chen is the sister of the Xiaoyan Chen but not a shareholder of Ankang Longevity Group. | ||||
[4] | Guaranteed by commercial credit guaranty companies unrelated to the Company. | ||||
[5] | Guaranteed by a commercial credit guaranty company, unrelated to the Company and also the loan guaranteed by Jiping Chen, a shareholder of the Company. |
SHORT-TERM LOANS (Details Textu
SHORT-TERM LOANS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Expense, Debt | $ 171,827 | $ 238,265 |
Short-term Debt, Weighted Average Interest Rate | 5.96% | 7.24% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | $ 1,671,435 | $ 2,623,169 |
Shanxi Pharmacy Holding Group Longetive Pharmacy Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 0 | 1,158,764 |
Xinyang Yifangyuan Garden Technology Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 500,784 | 593,413 |
Shaanxi Pharmaceutical Group Pai'ang Medicine Co. Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 820,728 | 144,830 |
Yang Bin [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 150,504 | 163,700 |
Zhang Xin [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 93,312 | 101,494 |
Chang Song [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 85,035 | 64,662 |
Wang Qi Wei [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 8,279 | 9,005 |
Tian Shuangpeng [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 11,288 | 0 |
Zhang Yuying [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 0 | 3,624 |
Qi Qiuchi [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 1,505 | 171,885 |
KuerLe Tenet Jove Business & Trading Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 0 | 163,700 |
Huiyin Ansheng [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | $ 0 | $ 48,092 |
RELATED PARTY TRANSACTIONS (D57
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 244,915 | $ 137,508 |
Wang Sai [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 120,854 | 0 |
Wu Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 96,398 | 137,508 |
Zhang Yuying [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 26,769 | 0 |
Huiyin Ansheng [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 894 | $ 0 |
RELATED PARTY TRANSACTIONS (D58
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Interest Income, Related Party | $ 261,015 | $ 260,874 | |
Due to Related Parties, Current | 244,915 | 137,508 | |
Revenue from Related Parties | $ 3,014,198 | $ 3,176,386 | |
Xinyang Yifangyuan Garden Technology Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Loans Receivable With Monthly Fixed Rates Of Interest | 4.17% | ||
Shaanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Loans Receivable With Annual Fixed Rates Of Interest | 5.10% |
TAXES (Details)
TAXES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax [Line Items] | ||
Current income tax provision | $ 1,298,472 | $ 1,189,135 |
Deferred income tax benefit | (120,765) | (64,419) |
Total | $ 1,177,707 | $ 1,124,716 |
TAXES (Details 1)
TAXES (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Income Tax [Line Items] | |||
Allowance for doubtful accounts | $ 123,818 | $ 22,612 | |
Inventory reserve | 203,674 | 145,073 | |
Impairment of investment | 0 | 61,387 | |
Net operating loss carry-forwards | 114,122 | 108,932 | |
Total | 441,614 | 338,004 | |
Valuation allowance | (114,122) | (108,932) | $ (313,342) |
Deferred tax assets, net | $ 327,492 | $ 229,072 |
TAXES (Details 2)
TAXES (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax [Line Items] | ||
Beginning balance | $ 108,932 | $ 313,342 |
Current year addition | 13,971 | 0 |
Current year reversal | 0 | (206,724) |
Exchange difference | (8,781) | 2,314 |
Ending balance | $ 114,122 | $ 108,932 |
TAXES (Details 3)
TAXES (Details 3) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax [Line Items] | ||
PRC statutory tax rate | 25.00% | 25.00% |
Exemption rendered by local tax authorities | (12.56%) | (11.87%) |
Effective tax rate | 12.44% | 13.13% |
TAXES (Details 4)
TAXES (Details 4) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Income Tax [Line Items] | ||
Income tax payable | $ 1,201,641 | $ 982,532 |
Value added tax payable | 69,955 | 93,292 |
Business tax and other taxes payable | 6,546 | 429 |
Taxes Payable, Current, Total | $ 1,278,142 | $ 1,076,253 |
TAXES (Details Textual)
TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax [Line Items] | ||
Value Added Tax Rate Percentage | 17.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | 25.00% |
Operating Loss Carryforwards | $ 456,477 | $ 435,728 |
Operating Loss Carryforwards, Expiration Date | Jun. 30, 2021 | Jun. 30, 2020 |
STATUTORY RESERVE (Details Text
STATUTORY RESERVE (Details Textual) | 12 Months Ended |
Jun. 30, 2016 | |
Statutory Reserve Disclosure [Line Items] | |
Statutory Surplus Reserve Percentage | 10.00% |
Statutory Reserve Percentage On Registered Capital | 50.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 8,292,822 | $ 7,440,400 |
Net income attributable to common stock holders | $ 8,136,896 | $ 7,280,278 |
Weighted average shares used in basic computation | 19,320,882 | 19,320,882 |
Diluted effect of contingently redeemable convertible preferred stock | 0 | 0 |
Weighted average shares used in diluted computation | 19,320,882 | 19,320,882 |
Earnings per share - Basic and diluted: | ||
Net income | $ 0.43 | $ 0.39 |
Less: Net income attributable to non-controlling interest | (0.01) | (0.01) |
Net income attributable to controlling interest | $ 0.42 | $ 0.38 |
CONCENTRATION AND RISKS (Detail
CONCENTRATION AND RISKS (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Concentration Risk [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | $ 22,009,374 | $ 6,056,105 | $ 3,089,845 |
Sales Revenue, Net [Member] | Customer One Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 40.00% | 33.00% | |
Sales Revenue, Net [Member] | Customer Two Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Purchases [Member] | Supplier One Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.00% | 42.00% | |
Purchases [Member] | Supplier Two Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | ||
Purchases [Member] | Supplier Three Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | ||
CHINA | |||
Concentration Risk [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | $ 21,986,817 | $ 4,683,945 | |
CHINA | Assets, Total [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 100.00% | 100.00% | |
CHINA | Sales Revenue, Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 100.00% | 100.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2016USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2,017 | $ 563,084 |
2,018 | 467,832 |
2,019 | 240,501 |
2,020 | 223,920 |
2,021 | 223,920 |
Thereafter | 4,441,080 |
Total | $ 6,160,337 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES (Details 1) | Jun. 30, 2016USD ($) |
Future Minimum Payments Receivable for Operating Leases [Line Items] | |
2,017 | $ 233,920 |
2,018 | 233,920 |
2,019 | 233,920 |
2,020 | 205,260 |
Total | $ 907,020 |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments And Contingencies [Line Items] | ||
Operating Leases, Rent Expense, Net | $ 434,475 | $ 388,544 |
Lease Expiration Date | May 31, 2020 | |
Operating Leases, Income Statement, Sublease Revenue | $ 233,920 | $ 234,576 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 35,206,852 | $ 32,630,502 |
Cost of goods | 24,037,241 | 22,204,733 |
Business and sales related tax | 85,038 | 78,262 |
Gross profit | $ 11,084,573 | $ 10,347,507 |
Gross profit contribution % | 100.00% | 100.00% |
Assets | $ 57,048,788 | $ 52,132,124 |
Bluish Dogbane [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 4,387,060 | 3,530,807 |
Cost of goods | 1,974,182 | 1,349,520 |
Business and sales related tax | 20,711 | 12,624 |
Gross profit | $ 2,392,167 | $ 2,168,663 |
Gross profit contribution % | 21.60% | 21.00% |
Assets | $ 6,963,093 | $ 6,308,727 |
Herbal Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 14,031,955 | 13,858,949 |
Cost of goods | 10,990,162 | 10,982,826 |
Business and sales related tax | 64,327 | 65,624 |
Gross profit | $ 2,977,466 | $ 2,810,499 |
Gross profit contribution % | 26.90% | 27.20% |
Assets | $ 28,088,515 | $ 25,001,487 |
Agricultural Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 16,787,837 | 15,240,746 |
Cost of goods | 11,072,897 | 9,872,387 |
Business and sales related tax | 0 | 14 |
Gross profit | $ 5,714,940 | $ 5,368,345 |
Gross profit contribution % | 51.50% | 51.80% |
Assets | $ 21,997,180 | $ 20,821,910 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] - $ / shares | 1 Months Ended | |
Sep. 28, 2016 | Sep. 23, 2016 | |
Subsequent Event [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 1,713,190 | |
Shares Issued, Price Per Share | $ 4.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,103,407 |