Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Oct. 09, 2017 | Dec. 31, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SHINECO, INC. | ||
Entity Central Index Key | 1,300,734 | ||
Current Fiscal Year End Date | --06-30 | ||
Trading Symbol | TYHT | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 71,178,122 | ||
Entity Common Stock, Shares Outstanding | 21,034,072 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
CURRENT ASSETS: | ||
Cash | $ 23,154,551 | $ 22,009,374 |
Accounts receivable, net | 14,480,004 | 6,372,970 |
Due from related parties | 448,833 | 850,707 |
Inventories | 2,346,273 | 4,608,179 |
Advances to suppliers, net | 2,396,123 | 53,024 |
Loans to third parties, net | 830,090 | 560,234 |
Other receivables, net | 535,700 | 463,361 |
Short-term deposit | 158,894 | 100,270 |
Prepaid expenses | 375,459 | 33,117 |
TOTAL CURRENT ASSETS | 44,725,927 | 35,051,236 |
Property and equipment at cost, net of accumulated depreciation and amortization | 10,320,396 | 11,035,199 |
Land use right, net of accumulated amortization | 1,346,631 | 1,408,765 |
Investments | 5,695,080 | 4,766,847 |
Deposit for business acquisition | 2,065,686 | 0 |
Long-term deposit and other noncurrent assets | 112,883 | 120,357 |
Prepaid leases | 3,784,533 | 4,338,892 |
Deferred tax assets | 233,834 | 327,492 |
TOTAL ASSETS | 68,284,970 | 57,048,788 |
CURRENT LIABILITIES: | ||
Short-term loans | 2,663,628 | 2,745,945 |
Accounts payable | 158,068 | 259,803 |
Advances from customers | 5,439 | 9,597 |
Due to related parties | 257,880 | 244,915 |
Other payables and accrued expenses | 337,107 | 1,999,622 |
Taxes payable | 1,608,926 | 1,278,142 |
TOTAL LIABILITIES | 5,031,048 | 6,538,024 |
Commitments and contingencies | ||
EQUITY: | ||
Common stock; par value $0.001, 100,000,000 shares authorized; 21,034,072 and 19,320,882 shares issued and outstanding at June 30, 2017 and 2016 | 21,034 | 19,321 |
Additional paid-in capital | 22,737,302 | 17,344,466 |
Statutory reserve | 3,484,449 | 3,242,139 |
Retained earnings | 39,064,743 | 30,837,399 |
Accumulated other comprehensive loss | (3,140,982) | (1,887,929) |
Total Stockholders' equity of Shineco, Inc. | 62,166,546 | 49,555,396 |
Non-controlling interest | 1,087,376 | 955,368 |
TOTAL EQUITY | 63,253,922 | 50,510,764 |
TOTAL LIABILITIES AND EQUITY | $ 68,284,970 | $ 57,048,788 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
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 | 21,034,072 | 19,320,882 |
Common Stock, Shares, Outstanding | 21,034,072 | 19,320,882 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUE | $ 33,592,337 | $ 35,206,852 |
COST OF REVENUE | ||
Cost of product and services | 22,776,035 | 24,037,241 |
Business and sales related tax | 75,974 | 85,038 |
Total cost of revenue | 22,852,009 | 24,122,279 |
GROSS PROFIT | 10,740,328 | 11,084,573 |
OPERATING EXPENSES | ||
General and administrative expenses | 1,813,402 | 1,988,101 |
Selling expenses | 1,480,855 | 1,755,264 |
Total operating expenses | 3,294,257 | 3,743,365 |
INCOME FROM OPERATIONS | 7,446,071 | 7,341,208 |
OTHER INCOME | ||
Income from equity method investments | 927,697 | 672,269 |
Purchase rebate income | 1,136,162 | 1,124,258 |
Other income | 348,181 | 197,390 |
Interest income, net | 14,171 | 135,404 |
Total other income | 2,426,211 | 2,129,321 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 9,872,282 | 9,470,529 |
PROVISION FOR INCOME TAXES | 1,252,637 | 1,177,707 |
NET INCOME | 8,619,645 | 8,292,822 |
Less: net income attributable to non-controlling interest | 149,991 | 155,926 |
NET INCOME ATTRIBUTABLE TO SHINECO, INC. | 8,469,654 | 8,136,896 |
COMPREHENSIVE INCOME | ||
Net income | 8,619,645 | 8,292,822 |
Other comprehensive loss: foreign currency translation loss | (1,271,036) | (3,991,356) |
Total comprehensive income | 7,348,609 | 4,301,466 |
Less: comprehensive income attributable to non-controlling interest | 132,008 | 107,219 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHINECO, INC. | $ 7,216,601 | $ 4,194,247 |
Weighted average number of shares basic and diluted | 20,616,335 | 19,320,882 |
Basic and diluted earnings per common share | $ 0.41 | $ 0.42 |
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 (LOSS) (Member) | NON-CONTROLLING INTEREST (Member) |
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 | 8,136,896 | 155,926 | ||||
Appropriation of statutory reserve | 0 | 317,218 | (317,218) | ||||
Foreign currency translation loss | (3,991,356) | (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 | ||||||
Stock issuance | 5,394,549 | $ 1,713 | 5,392,836 | ||||
Stock issuance (in Shares) | 1,713,190 | ||||||
Net income for the year | 8,619,645 | 8,469,654 | 149,991 | ||||
Appropriation of statutory reserve | 0 | 242,310 | (242,310) | ||||
Foreign currency translation loss | (1,271,036) | (1,253,053) | (17,983) | ||||
Balance at Jun. 30, 2017 | $ 63,253,922 | $ 21,034 | $ 22,737,302 | $ 3,484,449 | $ 39,064,743 | $ (3,140,982) | $ 1,087,376 |
Balance (in Shares) at Jun. 30, 2017 | 21,034,072 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 8,619,645 | $ 8,292,822 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 575,196 | 871,099 |
Gain from disposal of property and equipment | (8,063) | 0 |
(Recovery of) provision for doubtful accounts | (342,041) | 324,515 |
Increase in inventory reserve | 37,292 | 290,515 |
Deferred tax provision (benefit) | 86,780 | (120,765) |
Income from equity method investments | (927,697) | (672,269) |
Interest income from loans to related parties | (86,355) | 0 |
Gain on disposal of investment | 0 | (233,249) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,136,668) | (1,980,619) |
Advances to suppliers | (2,339,757) | 1,249,897 |
Inventories | 2,122,982 | 2,834,739 |
Other receivables | (72,891) | 172,176 |
Prepaid expense and other assets | (401,755) | 135,528 |
Due from related parties | (976,937) | 246,026 |
Prepaid leases | 466,759 | 495,122 |
Accounts payable | (96,137) | 105,382 |
Advances from customers | (3,950) | (21,266) |
Other payables | (1,614,992) | 1,008,132 |
Taxes payable | 354,453 | 292,580 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (2,744,136) | 13,290,365 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions of property and equipment | (49,863) | (498,772) |
Proceeds from disposal of property and equipment | 17,688 | 0 |
Proceeds from withdrawal of investments | 0 | 466,497 |
Repayments of loans from third parties | 4,839 | 189,275 |
Repayments of loans from related parties | 565,739 | 1,366,787 |
Income received from investments in unconsolidated entities | 990,839 | 2,428,894 |
Deposit for business acquisition | (2,055,074) | 0 |
Deposit for potential investment | (200,000) | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (725,832) | 3,952,681 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 2,673,064 | 3,148,077 |
Repayment of short-term loans | (2,701,321) | (3,526,423) |
Proceeds from initial public offering, net of offering costs | 5,394,549 | 0 |
Proceeds from advances from related parties | 17,683 | 122,424 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 5,383,975 | (255,922) |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | (768,830) | (1,033,855) |
NET INCREASE IN CASH | 1,145,177 | 15,953,269 |
CASH - Beginning of the Year | 22,009,374 | 6,056,105 |
CASH - End of the Year | 23,154,551 | 22,009,374 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Cash paid for income tax | 845,792 | 991,599 |
Cash paid for interest | 150,175 | 366,844 |
SUPPLEMENTAL NON-CASH INVESTING ACTIVITY: | ||
Long-term investment converted to fixed assets | $ 0 | $ 6,219,960 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2017 | |
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, Tenet-Jove entered into a series of contractual agreements with Ankang Longevity Pharmaceutical (Group) Co., Ltd. (“Ankang Longevity Group”), 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 entered into the same series of contractual agreements with Shineco Zhisheng (Beijing) Bio-Technology Co., Ltd. (“Zhisheng Bio-Tech”), which was incorporated in 2014. Zhisheng Bio-Tech, Zhisheng Freight, Zhisheng Trade, Zhisheng Agricultural, and Qingdao Zhihesheng are collectively referred to herein as “Zhisheng Group”. The contractual agreements include an Executive Business Cooperation Agreement, Timely Reporting Agreement, Equity Interest Pledge Agreement and Executive Option Agreement. On April 19, 2017, Tenet-Jove established Xinjiang Tiankunrunze Biological Engineering Co., Ltd. (“Tiankunrunze”) and owned 65 10.0 1,450,233 10.0 1,452,294 10.0 1,451,615 On June 9, 2017, the Company and its subsidiary Tiankunrunze have entered into a Strategic Cooperation Agreement with Beijing Zhongke Biorefinery Engineering Technology Co., Ltd. (“Biorefinery”), a leading high-tech biomass refining company financially backed by the Chinese Academy of Sciences Institute of Process Engineering, to establish the Institute of Chinese Apocynum Industrial Technology Research (“ICAITR”). Pursuant to the Strategic Cooperation Agreement entered into on May 2, 2017 among the three parties, Tiankunrunze, Shineco and Biorefinery agreed to establish the ICAITR and each will own 45 35 20 5.0 737,745 Pursuant to the above agreements, Tenet-Jove has the exclusive right to provide to Zhisheng Group and Ankang Longevity Group consulting services related to their business operations and management. All the above contractual agreements obligate Tenet-Jove to absorb a majority of the risk of loss from the 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 the Zhisheng Group and Ankang Longevity Group. Therefore, the Zhisheng Group and Ankang Longevity Group are treated as Variable Interest Entities (“VIEs”) under the 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 the Zhisheng Group and Ankang Longevity Group, Shineco owns 100% of Tenet-Jove. Accordingly, Shineco, Tenet-Jove, and its VIEs, the 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”); and, 3) Ankang Longevity Group manufactures traditional Chinese medicinal herbal 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, 2017 | |
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 and VIE’s subsidiaries. All intercompany transactions have been eliminated . 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 and their subsidiaries 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, 2017 June 30, 2016 Current assets $ 40,584,817 $ 30,081,643 Plant and equipment, net 8,958,282 9,595,357 Other noncurrent assets 10,707,344 10,615,197 Total assets 60,250,443 50,292,197 Total liabilities (4,662,387) (4,398,424) Net assets $ 55,588,056 $ 45,893,773 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 these entities 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 environment 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 the consolidated 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, and intangible assets, the recoverability of long-lived assets and the valuation of accounts receivable, accrued expenses, taxes payable and inventory reserves. Actual results could differ from those estimates. The Company recognizes revenue from sales of Luobuma products, Chinese medicinal herbal products and agricultural products, as well as providing logistic service and other processing services 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 reasonably assured. These criteria, as related to the Company’s revenue, are considered to have been met as follows: Sales of products Revenue from the rendering of services: Cash and cash equivalents consist of cash on hand, cash on deposit and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. Balances in banks in the PRC are uninsured. As of June 30, 2017 and 2016, the Company had no cash equivalents. Accounts receivable are recorded at net realizable value consisting of the 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 allowances 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, the customers’ historical payment history, their current credit-worthiness and current economic trends. As of June 30, 2017 and 2016, the allowance for doubtful accounts was $ 48,450 103,968 Inventories, which are stated at the lower of cost or current market value, consist of raw materials, work-in-progress, and 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 fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayments of farmland leases and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to the harvested crops costs when they are sold. The Company periodically evaluates its inventory and records an inventory reserve for certain inventories that may not be saleable. Advances to suppliers consist of payments 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, 2017 and 2016, the Company had an allowance for uncollectible advances to suppliers of $ 17,618 10,118 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. 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 renewals 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, if any, over an asset’s estimated useful life. Farmland leasehold improvements are amortized over the shorter of lease term or estimated useful lives 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 According to the Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method. The estimated useful life is 50 Finite-lived assets and intangibles are 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 leases. For the years ended June 30, 2017 and 2016, the Company did not recognize any impairment of its long-lived assets. The Company follows 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 financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. 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. A valuation allowance is 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 ASC 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, 2017 and 2016. The Company has not provided deferred taxes of undistributed earnings of non-U.S. subsidiaries at June 30, 2017, as it is the Company's policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. 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 2014 and after. As of June 30, 2017, the tax years ended June 30, 2007 through June 30, 2017 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 (loss). The balance sheet amounts, with the exception of equity, at June 30, 2017 and 2016 were translated at 1 RMB to 0.1475 0.1505 0.1468 0.1555 Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD 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, 2017 and 2016. In March 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Interest Imputation of Interest (Subtopic 835-30). This ASU addressed the simplification and presentation of debt issuance costs by presenting them in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts or premiums. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of the pending adoption of the new standard on our financial statements. In April 2016, FASB issued ASU 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 does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In May 2016, the FASB issued ASU No. 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, which is rescinding certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In June 2016 the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which eliminates the probable initial recognition threshold for credit losses in current U.S. GAAP, and instead requires an organization to record a current estimate of all expected credit losses over the contractual term for financial assets carried at amortized cost. This is commonly referred to as the current expected credit losses (“CECL”) methodology. Expected credit losses for financial assets held at the reporting date will be measured based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 does not change the existing write-off principle in U.S. GAAP or current nonaccrual practices, nor does it change accounting requirements for loans held for sale or certain other financial assets which are measured at the lower of amortized cost or fair value. As a public business entity that is an SEC filer, ASU 2016-13 becomes effective for the Company on January 1, 2020, although early application is permitted for 2019. The Company is currently evaluating the potential effects on the Company’s financial statements, if any. In August 2016, the FASB has issued 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. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. 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 expects that the adoption of this ASU would not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB has issued ASU No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company expects that the adoption of this ASU would not have any impact on the Company’s consolidated financial statements as there are no interests held through related parties that are under common control. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and InvestmentsEquity Method and Joint Ventures (Topic 323). The amendments amended Accounting Changes and Error Corrections (Topic 250) to state that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance included in certain issued but not yet adopted ASUs was also updated to reflect this amendment. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 3- INVENTORIES June 30, 2017 June 30, 2016 Raw materials $ 1,167,553 $ 842,559 Work-in-process 672,966 3,230,729 Finished goods 1,346,437 1,354,176 Less: inventory reserve (840,683) (819,285) Total $ 2,346,273 $ 4,608,179 Work-in-process includes direct costs such as seed selection, fertilizer, labor cost and subcontractor fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of the prepayment of the farmland lease fees and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to harvested crop costs when they are sold. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4- PROPERTY AND EQUIPMENT, NET June 30, 2017 June 30, 2016 Buildings $ 10,516,245 $ 10,726,872 Building improvements 51,797 52,834 Machinery and equipment 474,888 443,846 Motor vehicles 48,651 231,434 Construction in progress 442,646 451,512 Office equipment 153,836 208,022 Farmland leasehold improvements 3,102,803 3,164,943 14,790,866 15,279,463 Less: accumulated depreciation and amortization (4,470,470) (4,244,264) Property, plant and equipment, net $ 10,320,396 $ 11,035,199 Depreciation and amortization expense charged to operations was $ 535,806 831,057 June 30, 2017 June 30, 2016 Blueberry farmland leasehold reconstruction $ 2,383,711 $ 2,431,450 Yew tree planting base reconstruction 267,064 272,412 Greenhouse renovation 452,028 461,081 Total farmland leasehold improvements $ 3,102,803 $ 3,164,943 |
LAND USE RIGHTS
LAND USE RIGHTS | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 5- LAND USE RIGHTS Land use rights are recognized at cost less accumulated amortization. According to the Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. However, in accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants the user a “land use right” (the “Right”) to use the land. 50 June 30, 2017 June 30, 2016 Land use rights $ 1,641,181 $ 1,674,053 Less: accumulated amortization (294,550) (265,288) Land use rights, net $ 1,346,631 $ 1,408,765 For the years ended June 30, 2017 and 2016, the Company recognized amortization expense of $ 39,390 40,042 Twelve months ending June 30: 2018 $ 32,824 2019 32,824 2020 32,824 2021 32,824 2022 32,824 Thereafter 1,182,511 Total $ 1,346,631 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 6 - INVESTMENTS Ankang Longevity Group entered into two equity investment agreements with Shaanxi Pharmaceutical Group Pai’ang Medicine Co. Ltd. (“Shaanxi Pharmaceutical Group”), a Chinese state-owned pharmaceutical enterprise to invest a total of RMB 6.8 1.0 49 817,603 532,320 Ankang Longevity Group entered into a supplemental agreement with Shaanxi Pharmaceutical Group . According to the supplemental agreement, the new joint-venture companies established by Shaanxi Pharmaceutical Group 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 purchase rebate of 7 1,136,162 1,124,258 49 On each of April 6, 2013 and June 2, 2013, Tenet-Jove entity invested RMB 1.5 0.22 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 2.1 29 30 10 30 110,094 139,949 On November 21, 2016, the Company (the “Investor”) entered into an agreement with Original Lab Inc., a California corporation (the “Investee”), and made a payment of $ 200,000 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 8.9 40.0 5.9 60 1,720 820 June 30, 2017 June 30, 2016 Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) $ 2,744,391 $ 2,091,531 Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. 611,228 493,008 Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. 2,139,461 2,182,308 Original Lab Inc. 200,000 - Total $ 5,695,080 $ 4,766,847 June 30, 2017 June 30, 2016 Current assets $ 32,880,168 $ 28,450,106 Noncurrent assets 281,162 386,764 Current liabilities 26,328,322 23,577,799 For the years ended June 30, 2017 2016 Net sales $ 29,869,223 $ 25,456,718 Gross profit 4,011,307 3,382,468 Income from operations 1,671,820 1,071,742 Net income 1,668,578 1,086,377 |
DEPOSIT FOR BUSINESS ACQUISITIO
DEPOSIT FOR BUSINESS ACQUISITION | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 7 - DEPOSIT FOR BUSINESS ACQUISITION On December 12, 2016, Tenet-Jove entered into a purchase agreement with Tianjin Tajite E-Commerce Co., Ltd. (“Tianjin Tajite”), an online e-commerce company based in Tianjin, China, specializing in distributing Luobuma related products and Japanese health products to the elderly, pursuant to which Tenet-Jove intends to acquire a 51 14,000,000 2.1 |
PREPAID LEASES
PREPAID LEASES | 12 Months Ended |
Jun. 30, 2017 | |
PREPAID LEASES [Abstract] | |
Prepaid Leases [Text Block] | NOTE 8 - 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 vegetables, fruit and Chinese yew trees. The lease terms vary from 5 24 36.8 5.4 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 in the 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. Year ending June 30: 2018 $ 465,972 2019 465,972 2020 444,823 2021 212,188 2022 212,188 Thereafter 1,983,390 Total $ 3,784,533 |
SHORT-TERM LOANS
SHORT-TERM LOANS | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 9 - SHORT-TERM LOANS Maturity Int. Lender June 30, 2017 Date Rate/Year Wanxiang Trust Co., Ltd-a 7,746 2017-9-9 * 13.48 % Agricultural Bank of China-b 295,098 2017-10-16 5.22 % Agricultural Bank of China-c 737,745 2017-8-17 * 5.66 % Agricultural Bank of China-d 1,180,392 2017-12-7 5.22 % Agricultural Bank of China-e 442,647 2017-11-15 5.22 % Total $ 2,663,628 Maturity Int. Lender June 30, 2016 Date Rate/Year 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-d 451,512 2016-10-27 * 5.27 % Agricultural Bank of China-d 1,204,032 2016-11-18 * 5.22 % Agricultural Bank of China-d 301,008 2017-4-7 * 5.22 % Total $ 2,745,945 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 related parties of the Company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Group. 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 by Jiping Chen, a shareholder of the Company. e. Guaranteed by a third-party company and also by Jiping Chen, a shareholder of the Company. * The Company repaid the loans in full on maturity date. The Company recorded interest expense of $ 148,793 171,827 5.36 5.96 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 10 - RELATED PARTY TRANSACTIONS DUE FROM RELATED PARTIES The Company had previously made temporary advances to certain shareholders of the Company and to other entities that are either owned by family members of those shareholders or to other entities that the Company has investments in. Those advances are due on demand, non-interest bearing, except for the advance to Xinyang Yifangyuan Garden Technology Co., Ltd., which bears fixed monthly interest rate of 4.17 June 30, 2017 June 30, 2016 Yang Bin 147,550 150,504 Zhang Xin 91,480 93,312 Chang Song 73,037 85,035 Zhang Xinyu 61,441 - Zhang Hua 28,034 - Beijing Huiyinansheng Asset Management Co., Ltd 22,132 - Zhang Yuying 15,567 - Wang Qiwei 8,117 8,279 Qi Qiuchi - 1,505 Tian Shuangpeng 1,475 11,288 Xinyang Yifangyuan Garden Technology Co., Ltd - 500,784 $ 448,833 $ 850,707 For the years ended June 30, 2017 and 2016, interest income of $ 86,355 261,015 DUE TO RELATED PARTIES As of June 30, 2017 and 2016, the Company had related party payables of $ 257,880 244,915 June 30, 2017 June 30, 2016 Wu Yang 94,505 96,398 Wang Sai 71,942 120,854 Zhao Min 91,433 - Zhang Yuying - 26,769 Beijing Huiyinansheng Asset Management Co., Ltd - 894 $ 257,880 $ 244,915 SALES TO RELATED PARTIES For the years ended June 30, 2017 and 2016, the Company recorded sales to Shaanxi Pharmaceutical Group , a related party , of $ 3,038,195 3,014,198 2,205,453 1,908,871 |
TAXES
TAXES | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 11 - 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 expense are as follows: For the years ended June 30, 2017 2016 Current income tax provision $ 1,165,857 $ 1,298,472 Deferred income tax provision (benefit) 86,780 (120,765) Total $ 1,252,637 $ 1,177,707 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, 2017 June 30, 2016 Allowance for doubtful accounts $ 24,598 $ 123,818 Inventory reserve 209,236 203,674 Net operating loss carry-forwards 111,882 114,122 Total 345,716 441,614 Valuation allowance (111,882) (114,122) Deferred tax assets, net $ 233,834 $ 327,492 June 30, 2017 June 30, 2016 Beginning balance $ 114,122 $ 108,932 Current year addition - 13,971 Exchange difference (2,240) (8,781) Ending balance $ 111,882 $ 114,122 iii) The following table reconciles the PRC statutory rates to the Company's effective tax rate for the years ended June 30, 2017 and 2016: For the years ended June 30, 2017 2016 PRC statutory tax rate $ 25.00 % $ 25.00 % Exemption rendered by local tax authorities (12.31) % (12.56) % Effective tax rate $ 12.69 % $ 12.44 % (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. There were no assessed penalties as of June 30, 2017 and 2016, respectively. (c) Taxes Payable June 30, 2017 June 30, 2016 Income tax payable $ 1,541,548 $ 1,201,641 Value added tax payable 60,685 69,955 Business tax and other taxes payable 6,693 6,546 $ 1,608,926 $ 1,278,142 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 12 SHAREHOLDERS’ EQUITY Initial Public Offering On September 28, 2016, the Company completed its initial public offering of 1,713,190 4.50 7.7 5.4 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 3,484,449 3,242,139 |
CONCENTRATION AND RISKS
CONCENTRATION AND RISKS | 12 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 13 - CONCENTRATION AND RISKS The Company maintains principally all 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 $ 23,112,124 21,986,817 During the years ended June 30, 2017 and 2016, almost 100 100 For the year ended June 30, 2017, two customers accounted for approximately 11 10 54 40 76 For the year ended June 30, 2017, two vendors accounted for approximately 23 14 25 13 11 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 14 - COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases nine main office spaces under non-cancelable operating lease agreements through December 10, 2020. The Company also leases farmland under a non-cancelable operating lease agreement through April 26, 2041. Most of those operating lease payments are scheduled on a quarterly basis. Year ending June 30: 2018 $ 547,556 2019 332,163 2020 271,319 2021 211,379 2022 211,379 Thereafter 3,980,972 Total $ 5,554,768 Rent expense totaled $ 613,811 434,475 In addition, the Company sublets the above-mentioned farmland to a third party under a non-cancelable operating lease agreement through May 31, 2020 Year ending June 30: 2018 $ 205,507 2019 205,507 2020 193,764 Total $ 604,778 Sublease rental income totaled $ 211,379 233,920 Legal Contingencies On May 16, 2017 6 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2017 | |
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 its 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. This segment’s operations are focused in the north region of Mainland China, mostly carried out in Beijing and Tianjin City. Ø 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 the retail pharmacy business and the operating revenue, which is not material, is also included in this segment. 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, is engaged 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 trees (formally known as “taxus media”), a small evergreen tree whose branches can be used for the production of anti-cancer medications and the tree itself can be used as an 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, 2017 Bluish Herbal Agricultural dogbane products products Total Segment revenue $ 3,624,993 $ 13,245,236 $ 16,722,108 $ 33,592,337 Cost of goods 1,695,938 10,124,063 10,956,034 22,776,035 Business and sales related tax 16,076 59,898 - 75,974 Gross profit 1,912,979 3,061,275 5,766,074 10,740,328 Gross profit contribution % 17.8 % 28.5 % 53.7 % 100.0 % 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 % Total Assets as of June 30, 2017 June 30, 2016 Bluish Dogbane or “Luobuma” $ 6,983,551 $ 6,963,093 Herbal products 35,222,278 28,088,515 Agricultural products 26,079,141 21,997,180 $ 68,284,970 $ 57,048,788 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16 SUBSEQUENT EVENTS On September 30, 2017, Tenet-Jove established Xinjiang Tianyitaihe Agriculture Development Co., Ltd. (“Tianyitaihe”) with registered capital of RMB 10.0 1,502,652 10.0 1,502,652 100 |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
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 and VIE’s subsidiaries. All intercompany transactions have been eliminated . |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Consolidation of Variable Interest Entities 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 and their subsidiaries 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, 2017 June 30, 2016 Current assets $ 40,584,817 $ 30,081,643 Plant and equipment, net 8,958,282 9,595,357 Other noncurrent assets 10,707,344 10,615,197 Total assets 60,250,443 50,292,197 Total liabilities (4,662,387) (4,398,424) Net assets $ 55,588,056 $ 45,893,773 |
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 these entities 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 environment 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 the consolidated 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, and intangible assets, the recoverability of long-lived assets and the valuation of accounts receivable, accrued expenses, taxes payable and inventory reserves. Actual results could differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | The Company recognizes revenue from sales of Luobuma products, Chinese medicinal herbal products and agricultural products, as well as providing logistic service and other processing services 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 reasonably assured. These criteria, as related to the Company’s revenue, are considered to have been met as follows: Sales of products Revenue from the rendering of services: |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, cash on deposit and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. Balances in banks in the PRC are uninsured. As of June 30, 2017 and 2016, the Company had no cash equivalents. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are recorded at net realizable value consisting of the 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 allowances 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, the customers’ historical payment history, their current credit-worthiness and current economic trends. As of June 30, 2017 and 2016, the allowance for doubtful accounts was $ 48,450 103,968 |
Inventory, Policy [Policy Text Block] | Inventories Inventories, which are stated at the lower of cost or current market value, consist of raw materials, work-in-progress, and 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 fees that are spent in growing agricultural products on the leased farmland, and indirect costs which include amortization of prepayments of farmland leases and farmland development costs. All the costs are accumulated until the time of harvest and then allocated to the harvested crops costs when they are sold. The Company periodically evaluates its inventory and records an inventory reserve for certain inventories that may not be saleable. |
Advances to Suppliers [Policy Text Block] | Advances to Suppliers Advances to suppliers consist of payments 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, 2017 and 2016, the Company had an allowance for uncollectible advances to suppliers of $ 17,618 10,118 |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans to Third Parties 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. 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 renewals 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, if any, over an asset’s estimated useful life. Farmland leasehold improvements are amortized over the shorter of lease term or estimated useful lives 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] | According to the Chinese laws and regulations regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the rights to use parcels of land for a specified period of time. Land use rights which are usually prepaid, are stated at cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method. The estimated useful life is 50 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived Assets Finite-lived assets and intangibles are 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 leases. For the years ended June 30, 2017 and 2016, the Company did not recognize any impairment of its long-lived assets. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | The Company follows 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 financial instruments included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. |
Income Tax, Policy [Policy Text Block] | Income Taxes 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. A valuation allowance is 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 ASC 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, 2017 and 2016. The Company has not provided deferred taxes of undistributed earnings of non-U.S. subsidiaries at June 30, 2017, as it is the Company's policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. 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 2014 and after. As of June 30, 2017, the tax years ended June 30, 2007 through June 30, 2017 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] | Value Added Tax 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 (loss). The balance sheet amounts, with the exception of equity, at June 30, 2017 and 2016 were translated at 1 RMB to 0.1475 0.1505 0.1468 0.1555 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in RMB to USD 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, 2017 and 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In March 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Interest Imputation of Interest (Subtopic 835-30). This ASU addressed the simplification and presentation of debt issuance costs by presenting them in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts or premiums. This accounting standard update is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of the pending adoption of the new standard on our financial statements. In April 2016, FASB issued ASU 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 does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In May 2016, the FASB issued ASU No. 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, which is rescinding certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In June 2016 the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which eliminates the probable initial recognition threshold for credit losses in current U.S. GAAP, and instead requires an organization to record a current estimate of all expected credit losses over the contractual term for financial assets carried at amortized cost. This is commonly referred to as the current expected credit losses (“CECL”) methodology. Expected credit losses for financial assets held at the reporting date will be measured based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 does not change the existing write-off principle in U.S. GAAP or current nonaccrual practices, nor does it change accounting requirements for loans held for sale or certain other financial assets which are measured at the lower of amortized cost or fair value. As a public business entity that is an SEC filer, ASU 2016-13 becomes effective for the Company on January 1, 2020, although early application is permitted for 2019. The Company is currently evaluating the potential effects on the Company’s financial statements, if any. In August 2016, the FASB has issued 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. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. 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 expects that the adoption of this ASU would not have a material impact on the Company’s consolidated financial statements. In October 2016, the FASB has issued ASU No. 2016-17, Consolidation (Topic 810): Interest Held through Related Parties That Are under Common Control, to provide guidance on the evaluation of whether a reporting entity is the primary beneficiary of a VIE by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company expects that the adoption of this ASU would not have any impact on the Company’s consolidated financial statements as there are no interests held through related parties that are under common control. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In January 2017, the FASB issued ASU No. 2017-03, Accounting Changes and Error Corrections (Topic 250) and InvestmentsEquity Method and Joint Ventures (Topic 323). The amendments amended Accounting Changes and Error Corrections (Topic 250) to state that registrants should consider additional qualitative disclosures if the impact of an issued but not yet adopted ASU is unknown or cannot be reasonably estimated and to include a description of the effect of the accounting policies that the registrant expects to apply, if determined. Transition guidance included in certain issued but not yet adopted ASUs was also updated to reflect this amendment. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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 follows: June 30, 2017 June 30, 2016 Current assets $ 40,584,817 $ 30,081,643 Plant and equipment, net 8,958,282 9,595,357 Other noncurrent assets 10,707,344 10,615,197 Total assets 60,250,443 50,292,197 Total liabilities (4,662,387) (4,398,424) Net assets $ 55,588,056 $ 45,893,773 |
Summary of Estimated useful lives of Property and Equipment [Table Text Block] | The estimated useful lives of the Company’s property and equipment are as follows: 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, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The inventories consist of the following: June 30, 2017 June 30, 2016 Raw materials $ 1,167,553 $ 842,559 Work-in-process 672,966 3,230,729 Finished goods 1,346,437 1,354,176 Less: inventory reserve (840,683) (819,285) Total $ 2,346,273 $ 4,608,179 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consist of the following: June 30, 2017 June 30, 2016 Buildings $ 10,516,245 $ 10,726,872 Building improvements 51,797 52,834 Machinery and equipment 474,888 443,846 Motor vehicles 48,651 231,434 Construction in progress 442,646 451,512 Office equipment 153,836 208,022 Farmland leasehold improvements 3,102,803 3,164,943 14,790,866 15,279,463 Less: accumulated depreciation and amortization (4,470,470) (4,244,264) Property, plant and equipment, net $ 10,320,396 $ 11,035,199 |
Schedule of Leasehold Improvements [Table Text Block] | Farmland leasehold improvements consist of following: June 30, 2017 June 30, 2016 Blueberry farmland leasehold reconstruction $ 2,383,711 $ 2,431,450 Yew tree planting base reconstruction 267,064 272,412 Greenhouse renovation 452,028 461,081 Total farmland leasehold improvements $ 3,102,803 $ 3,164,943 |
LAND USE RIGHTS (Tables)
LAND USE RIGHTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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, 2017 June 30, 2016 Land use rights $ 1,641,181 $ 1,674,053 Less: accumulated amortization (294,550) (265,288) Land use rights, net $ 1,346,631 $ 1,408,765 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization expenses are as follows: Twelve months ending June 30: 2018 $ 32,824 2019 32,824 2020 32,824 2021 32,824 2022 32,824 Thereafter 1,182,511 Total $ 1,346,631 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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, 2017 June 30, 2016 Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) $ 2,744,391 $ 2,091,531 Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. 611,228 493,008 Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. 2,139,461 2,182,308 Original Lab Inc. 200,000 - Total $ 5,695,080 $ 4,766,847 |
Equity Method Investments Summarized Financial Information [Table Text Block] | Summarized financial information of unconsolidated entities is as follows: June 30, 2017 June 30, 2016 Current assets $ 32,880,168 $ 28,450,106 Noncurrent assets 281,162 386,764 Current liabilities 26,328,322 23,577,799 For the years ended June 30, 2017 2016 Net sales $ 29,869,223 $ 25,456,718 Gross profit 4,011,307 3,382,468 Income from operations 1,671,820 1,071,742 Net income 1,668,578 1,086,377 |
PREPAID LEASES (Tables)
PREPAID LEASES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
PREPAID LEASES [Abstract] | |
Schedule of Operating Lease Further Amortization Expense [Table Text Block] | Further amortization expense is as follows: Year ending June 30: 2018 $ 465,972 2019 465,972 2020 444,823 2021 212,188 2022 212,188 Thereafter 1,983,390 Total $ 3,784,533 |
SHORT-TERM LOANS (Tables)
SHORT-TERM LOANS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term loans consist of the following: Maturity Int. Lender June 30, 2017 Date Rate/Year Wanxiang Trust Co., Ltd-a 7,746 2017-9-9 * 13.48 % Agricultural Bank of China-b 295,098 2017-10-16 5.22 % Agricultural Bank of China-c 737,745 2017-8-17 * 5.66 % Agricultural Bank of China-d 1,180,392 2017-12-7 5.22 % Agricultural Bank of China-e 442,647 2017-11-15 5.22 % Total $ 2,663,628 Maturity Int. Lender June 30, 2016 Date Rate/Year 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-d 451,512 2016-10-27 * 5.27 % Agricultural Bank of China-d 1,204,032 2016-11-18 * 5.22 % Agricultural Bank of China-d 301,008 2017-4-7 * 5.22 % Total $ 2,745,945 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 related parties of the Company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Group. 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 by Jiping Chen, a shareholder of the Company. e. Guaranteed by a third-party company and also 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, 2017 | |
Related Party Transactions [Abstract] | |
Schedule Of Amounts Due From Related Parties [Table Text Block] | As of June 30, 2017 and 2016, the outstanding amounts due from related parties consist of the following: June 30, 2017 June 30, 2016 Yang Bin 147,550 150,504 Zhang Xin 91,480 93,312 Chang Song 73,037 85,035 Zhang Xinyu 61,441 - Zhang Hua 28,034 - Beijing Huiyinansheng Asset Management Co., Ltd 22,132 - Zhang Yuying 15,567 - Wang Qiwei 8,117 8,279 Qi Qiuchi - 1,505 Tian Shuangpeng 1,475 11,288 Xinyang Yifangyuan Garden Technology Co., Ltd - 500,784 $ 448,833 $ 850,707 |
Schedule Of Amounts Due To Related Parties [Table Text Block] | The payables are unsecured, non-interest bearing and due on demand. June 30, 2017 June 30, 2016 Wu Yang 94,505 96,398 Wang Sai 71,942 120,854 Zhao Min 91,433 - Zhang Yuying - 26,769 Beijing Huiyinansheng Asset Management Co., Ltd - 894 $ 257,880 $ 244,915 |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | i) The components of the income tax expense are as follows: For the years ended June 30, 2017 2016 Current income tax provision $ 1,165,857 $ 1,298,472 Deferred income tax provision (benefit) 86,780 (120,765) Total $ 1,252,637 $ 1,177,707 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 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, 2017 June 30, 2016 Allowance for doubtful accounts $ 24,598 $ 123,818 Inventory reserve 209,236 203,674 Net operating loss carry-forwards 111,882 114,122 Total 345,716 441,614 Valuation allowance (111,882) (114,122) Deferred tax assets, net $ 233,834 $ 327,492 |
Summary of Valuation Allowance [Table Text Block] | June 30, 2017 June 30, 2016 Beginning balance $ 114,122 $ 108,932 Current year addition - 13,971 Exchange difference (2,240) (8,781) Ending balance $ 111,882 $ 114,122 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | iii) The following table reconciles the PRC statutory rates to the Company's effective tax rate for the years ended June 30, 2017 and 2016: For the years ended June 30, 2017 2016 PRC statutory tax rate $ 25.00 % $ 25.00 % Exemption rendered by local tax authorities (12.31) % (12.56) % Effective tax rate $ 12.69 % $ 12.44 % |
Schedule of Taxes Payable [Table Text Block] | June 30, 2017 June 30, 2016 Income tax payable $ 1,541,548 $ 1,201,641 Value added tax payable 60,685 69,955 Business tax and other taxes payable 6,693 6,546 $ 1,608,926 $ 1,278,142 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The future minimum rental payments are as follows: Year ending June 30: 2018 $ 547,556 2019 332,163 2020 271,319 2021 211,379 2022 211,379 Thereafter 3,980,972 Total $ 5,554,768 |
Schedule of Future Minimum Rental Receivables for Operating Leases [Table Text Block] | The future minimum sublease rental income to be received is as follows: Year ending June 30: 2018 $ 205,507 2019 205,507 2020 193,764 Total $ 604,778 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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, 2017: For the year ended June 30, 2017 Bluish Herbal Agricultural dogbane products products Total Segment revenue $ 3,624,993 $ 13,245,236 $ 16,722,108 $ 33,592,337 Cost of goods 1,695,938 10,124,063 10,956,034 22,776,035 Business and sales related tax 16,076 59,898 - 75,974 Gross profit 1,912,979 3,061,275 5,766,074 10,740,328 Gross profit contribution % 17.8 % 28.5 % 53.7 % 100.0 % 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 % Total Assets as of June 30, 2017 June 30, 2016 Bluish Dogbane or “Luobuma” $ 6,983,551 $ 6,963,093 Herbal products 35,222,278 28,088,515 Agricultural products 26,079,141 21,997,180 $ 68,284,970 $ 57,048,788 |
ORGANIZATION AND NATURE OF OP35
ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) ¥ in Millions | Jun. 30, 2017 | May 23, 2017USD ($) | May 23, 2017CNY (¥) | May 22, 2017USD ($) | May 22, 2017CNY (¥) | May 02, 2017USD ($) | May 02, 2017CNY (¥) | Apr. 28, 2017USD ($) | Apr. 28, 2017CNY (¥) | Apr. 19, 2017 |
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% | |||||||||
Tiankunrunze [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 45.00% | 45.00% | 65.00% | |||||||
Tianzhuo [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment Summarized Financial Information, Equity | $ 1,450,233 | ¥ 10 | ||||||||
Tianhuihechuang [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment Summarized Financial Information, Equity | $ 1,452,294 | ¥ 10 | ||||||||
Tianxintongye [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment Summarized Financial Information, Equity | $ 1,451,615 | ¥ 10 | ||||||||
Shineco [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 35.00% | 35.00% | ||||||||
Biorefinery [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | ||||||||
Shineco and Tiankunrunze [Member] | ||||||||||
Organization And Nature Of Operations [Line Items] | ||||||||||
Equity Method Investment Summarized Financial Information, Equity | $ 737,745 | ¥ 5 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 60,250,443 | $ 50,292,197 |
Total liabilities | (4,662,387) | (4,398,424) |
Net assets | 55,588,056 | 45,893,773 |
Property, Plant and Equipment [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 8,958,282 | 9,595,357 |
Current Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | 40,584,817 | 30,081,643 |
Other Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Total assets | $ 10,707,344 | $ 10,615,197 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Jun. 30, 2017 | |
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, 2017USD ($) | Jun. 30, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 48,450 | $ 103,968 |
Advances To Suppliers | $ 17,618 | $ 10,118 |
Finite-Lived Intangible Asset, Useful Life | 50 years | |
Foreign Currency Exchange Rate, Translation | 0.1475 | 0.1505 |
Foreign Currency Transactions Weighted Average Exchange Rate | 0.1468 | 0.1555 |
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, 2017 | Jun. 30, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 1,167,553 | $ 842,559 |
Work-in-process | 672,966 | 3,230,729 |
Finished goods | 1,346,437 | 1,354,176 |
Less: inventory reserve | (840,683) | (819,285) |
Total | $ 2,346,273 | $ 4,608,179 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 14,790,866 | $ 15,279,463 |
Less: accumulated depreciation and amortization | (4,470,470) | (4,244,264) |
Property, plant and equipment, net | 10,320,396 | 11,035,199 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 10,516,245 | 10,726,872 |
Building improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 51,797 | 52,834 |
Machinery equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 474,888 | 443,846 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 48,651 | 231,434 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 442,646 | 451,512 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 153,836 | 208,022 |
Farmland leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,102,803 | $ 3,164,943 |
PROPERTY AND EQUIPMENT, NET (41
PROPERTY AND EQUIPMENT, NET (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | $ 3,102,803 | $ 3,164,943 |
Blueberry farmland leasehold reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | 2,383,711 | 2,431,450 |
Yew tree planting base reconstruction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | 267,064 | 272,412 |
Greenhouse renovation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total farmland leasehold improvement | $ 452,028 | $ 461,081 |
PROPERTY AND EQUIPMENT, NET (42
PROPERTY AND EQUIPMENT, NET (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation, Depletion and Amortization, Nonproduction, Total | $ 535,806 | $ 831,057 |
LAND USE RIGHTS (Details)
LAND USE RIGHTS (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Goodwill [Line Items] | ||
Land use rights | $ 1,641,181 | $ 1,674,053 |
Less: accumulated amortization | (294,550) | (265,288) |
Land use rights, net | $ 1,346,631 | $ 1,408,765 |
LAND USE RIGHTS (Details 1)
LAND USE RIGHTS (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Twelve months ending June 30: | ||
2,018 | $ 32,824 | |
2,019 | 32,824 | |
2,020 | 32,824 | |
2,021 | 32,824 | |
2,022 | 32,824 | |
Thereafter | 1,182,511 | |
Total | $ 1,346,631 | $ 1,408,765 |
LAND USE RIGHTS (Details Textua
LAND USE RIGHTS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 50 years | |
Amortization | $ 39,390 | $ 40,042 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 5,695,080 | $ 4,766,847 |
Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 2,744,391 | 2,091,531 |
Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 611,228 | 493,008 |
Zhejiang Zhen’Ai Network Warehousing Services Co., Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 2,139,461 | 2,182,308 |
Original Lab Inc. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 200,000 | $ 0 |
INVESTMENTS (Details 1)
INVESTMENTS (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 32,880,168 | $ 28,450,106 |
Noncurrent assets | 281,162 | 386,764 |
Current liabilities | $ 26,328,322 | $ 23,577,799 |
INVESTMENTS (Details 2)
INVESTMENTS (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Net sales | $ 29,869,223 | $ 25,456,718 |
Gross profit | 4,011,307 | 3,382,468 |
Income from operations | 1,671,820 | 1,071,742 |
Net income | $ 1,668,578 | $ 1,086,377 |
INVESTMENTS (Details Textual)
INVESTMENTS (Details Textual) | 1 Months Ended | 12 Months Ended | |||||||||||||
Nov. 21, 2016USD ($) | Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | Oct. 21, 2013USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2017CNY (¥) | Oct. 30, 2015a | Jan. 28, 2014USD ($) | Jan. 28, 2014CNY (¥) | Oct. 21, 2013CNY (¥) | Jun. 02, 2013USD ($) | Apr. 06, 2013CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investments | $ 5,695,080 | $ 4,766,847 | |||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 990,839 | 2,428,894 | |||||||||||||
Other Asset Impairment Charges | $ 244,350 | ||||||||||||||
Gain (Loss) on Sale of Investments | 0 | 233,249 | |||||||||||||
Proceeds from Sale, Maturity and Collection of Investments | 0 | 466,497 | |||||||||||||
Nanjing Kangtianyi [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investments | ¥ | ¥ 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 | $ 220,000 | ||||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 40.00% | ||||||||||||||
Tiancang Systematic Warehousing Project [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investments | $ 2,100,000 | ¥ 14,500,000 | |||||||||||||
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% | ||||||||||||||
Original Lab Inc. [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investments | 200,000 | 0 | |||||||||||||
Payments to Acquire Businesses and Interest in Affiliates | $ 200,000 | ||||||||||||||
Zhen’Ai Network [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 110,094 | 139,949 | |||||||||||||
Ankang Longevity Group [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity Method Investments | 1,000,000 | ¥ 6,800,000 | |||||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | 60.00% | |||||||||||||
Income (Loss) from Equity Method Investments | $ 817,603 | 532,320 | |||||||||||||
Real Estate Investments, Joint Ventures | $ 5,900,000 | ¥ 40,000,000 | |||||||||||||
Ankang Longevity Group [Member] | Floor One And Two [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Area of Real Estate Property | a | 1,720 | ||||||||||||||
Ankang Longevity Group [Member] | Floor Three [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Area of Real Estate Property | a | 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% | ||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 1,136,162 | 1,124,258 | |||||||||||||
Ankang Longevity Group [Member] | Shaanxi Xunyang Hongye Real Estate Co., Ltd [Member] | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Real Estate Investments, Joint Ventures | $ 8,900,000 | ¥ 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 |
DEPOSIT FOR BUSINESS ACQUISIT50
DEPOSIT FOR BUSINESS ACQUISITION (Details Textual) - Tianjin Tajite [Member] $ in Millions | Dec. 12, 2016USD ($) | Dec. 12, 2016CNY (¥) |
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | 51.00% |
Payments to Acquire Businesses, Gross | $ 2.1 | ¥ 14,000,000 |
PREPAID LEASES (Details)
PREPAID LEASES (Details) | 12 Months Ended |
Jun. 30, 2017USD ($) | |
2,018 | $ 465,972 |
2,019 | 465,972 |
2,020 | 444,823 |
2,021 | 212,188 |
2,022 | 212,188 |
Thereafter | 1,983,390 |
Total | $ 3,784,533 |
PREPAID LEASES (Details Textual
PREPAID LEASES (Details Textual) ¥ in Millions, $ in Millions | 12 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | |
Operating Leases, Rent Expense | $ 5.4 | ¥ 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, 2017 | Jun. 30, 2016 | ||||
Short-term Debt | $ 2,663,628 | $ 2,745,945 | |||
Wanxiang Trust Co., Ltd [Member] | |||||
Short-term Debt | [1] | $ 7,746 | |||
Debt Instrument, Maturity Date | [1],[2] | Sep. 9, 2017 | |||
Short-term Debt, Weighted Average Interest Rate | [1] | 13.48% | |||
Chongqing Alibaba Micro-Credit Company [Member] | |||||
Short-term Debt | $ 36,873 | ||||
Debt Instrument, Maturity Date | [1],[2] | Sep. 9, 2016 | |||
Short-term Debt, Weighted Average Interest Rate | 15.21% | ||||
Agricultural Bank of China One [Member] | |||||
Short-term Debt | $ 295,098 | [3] | $ 301,008 | ||
Debt Instrument, Maturity Date | [3] | Oct. 16, 2017 | Sep. 24, 2016 | [2] | |
Short-term Debt, Weighted Average Interest Rate | 5.22% | [3] | 5.52% | ||
Agricultural Bank of China Two [Member] | |||||
Short-term Debt | $ 737,745 | [4] | $ 451,512 | ||
Debt Instrument, Maturity Date | [2] | Aug. 17, 2017 | [4] | Aug. 9, 2016 | [5] |
Short-term Debt, Weighted Average Interest Rate | 5.66% | [4] | 5.82% | ||
Agricultural Bank of China Three [Member] | |||||
Short-term Debt | $ 1,180,392 | [5] | $ 451,512 | ||
Debt Instrument, Maturity Date | [5] | Dec. 7, 2017 | Oct. 27, 2016 | [2] | |
Short-term Debt, Weighted Average Interest Rate | 5.22% | [5] | 5.27% | ||
Agricultural Bank of China Four [Member] | |||||
Short-term Debt | $ 1,204,032 | ||||
Debt Instrument, Maturity Date | Nov. 15, 2017 | [6] | Nov. 18, 2016 | [2],[5] | |
Short-term Debt, Weighted Average Interest Rate | 5.22% | ||||
Agricultural Bank of China Five [Member] | |||||
Short-term Debt | $ 442,647 | [6] | $ 301,008 | ||
Debt Instrument, Maturity Date | [2],[5] | Apr. 7, 2017 | |||
Short-term Debt, Weighted Average Interest Rate | 5.22% | [6] | 5.22% | ||
[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 related parties of the Company. Xiaoyan Chen is one of the shareholders of Ankang Longevity Group. 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 by Jiping Chen, a shareholder of the Company. | ||||
[6] | Guaranteed by a third-party company and also by Jiping Chen, a shareholder of the Company. |
SHORT-TERM LOANS (Details Textu
SHORT-TERM LOANS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Expense, Debt | $ 148,793 | $ 171,827 |
Short-term Debt, Interest Rate Increase | 5.36% | 5.96% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | $ 448,833 | $ 850,707 |
Yang Bin [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 147,550 | 150,504 |
Zhang Xin [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 91,480 | 93,312 |
Chang Song [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 73,037 | 85,035 |
Zhang Xinyu [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 61,441 | 0 |
Zhang Hua [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 28,034 | 0 |
Beijing Huiyinansheng Asset Management Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 22,132 | 0 |
Zhang Yuying [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 15,567 | 0 |
Wang Qiwei [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 8,117 | 8,279 |
Qi Qiuchi [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 0 | 1,505 |
Tian Shuangpeng [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | 1,475 | 11,288 |
Xinyang Yifangyuan Garden Technology Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | $ 0 | $ 500,784 |
RELATED PARTY TRANSACTIONS (D56
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 257,880 | $ 244,915 |
Wu Yang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 94,505 | 96,398 |
Wang Sai [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 71,942 | 120,854 |
Zhao Min [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 91,433 | 0 |
Zhang Yuying [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | 0 | 26,769 |
Beijing Huiyinansheng Asset Management Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Due to Related Parties, Current | $ 0 | $ 894 |
RELATED PARTY TRANSACTIONS (D57
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||
Interest Income, Related Party | $ 86,355 | $ 0 |
Due to Related Parties, Current | 257,880 | 244,915 |
Revenue from Related Parties | $ 3,038,195 | 3,014,198 |
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 [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Related Parties, Current | $ 2,205,453 | $ 1,908,871 |
TAXES (Details)
TAXES (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax [Line Items] | ||
Current income tax provision | $ 1,165,857 | $ 1,298,472 |
Deferred income tax provision (benefit) | 86,780 | (120,765) |
Total | $ 1,252,637 | $ 1,177,707 |
TAXES (Details 1)
TAXES (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Income Tax [Line Items] | |||
Allowance for doubtful accounts | $ 24,598 | $ 123,818 | |
Inventory reserve | 209,236 | 203,674 | |
Net operating loss carry-forwards | 111,882 | 114,122 | |
Total | 345,716 | 441,614 | |
Valuation allowance | (111,882) | (114,122) | $ (108,932) |
Deferred tax assets, net | $ 233,834 | $ 327,492 |
TAXES (Details 2)
TAXES (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax [Line Items] | ||
Beginning balance | $ 114,122 | $ 108,932 |
Current year addition | 0 | 13,971 |
Exchange difference | (2,240) | (8,781) |
Ending balance | $ 111,882 | $ 114,122 |
TAXES (Details 3)
TAXES (Details 3) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax [Line Items] | ||
PRC statutory tax rate | 25.00% | 25.00% |
Exemption rendered by local tax authorities | (12.31%) | (12.56%) |
Effective tax rate | 12.69% | 12.44% |
TAXES (Details 4)
TAXES (Details 4) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Income Tax [Line Items] | ||
Income tax payable | $ 1,541,548 | $ 1,201,641 |
Value added tax payable | 60,685 | 69,955 |
Business tax and other taxes payable | 6,693 | 6,546 |
Taxes Payable, Current, Total | $ 1,608,926 | $ 1,278,142 |
TAXES (Details Textual)
TAXES (Details Textual) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
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% |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 28, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statutory Reserve Disclosure [Line Items] | |||
Statutory Surplus Reserve Percentage | 10.00% | ||
Statutory Reserve Percentage On Registered Capital | 50.00% | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 3,484,449 | $ 3,242,139 | |
Proceeds from Issuance Initial Public Offering | 5,394,549 | $ 0 | |
Stock Issued During Period, Value, New Issues | $ 5,394,549 | ||
IPO [Member] | |||
Statutory Reserve Disclosure [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 1,713,190 | ||
Share Price | $ 4.50 | ||
Proceeds from Issuance Initial Public Offering | $ 5,400,000 | ||
Stock Issued During Period, Value, New Issues | $ 7,700,000 |
CONCENTRATION AND RISKS (Detail
CONCENTRATION AND RISKS (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Concentration Risk [Line Items] | |||
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | $ 23,154,551 | $ 22,009,374 | $ 6,056,105 |
Sales Revenue, Net [Member] | Customer One Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 40.00% | |
Sales Revenue, Net [Member] | Customer Two Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 76.00% | |
Sales Revenue, Net [Member] | Customer Four Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 54.00% | ||
Purchases [Member] | Supplier One Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 23.00% | 25.00% | |
Purchases [Member] | Supplier Two Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 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 | $ 23,112,124 | $ 21,986,817 | |
CHINA | Assets, Total [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 100.00% | ||
CHINA | Sales Revenue, Segment [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 100.00% |
COMMITMENTS AND CONTINGENCIES66
COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2017USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2,018 | $ 547,556 |
2,019 | 332,163 |
2,020 | 271,319 |
2,021 | 211,379 |
2,022 | 211,379 |
Thereafter | 3,980,972 |
Total | $ 5,554,768 |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES (Details 1) | Jun. 30, 2017USD ($) |
Future Minimum Payments Receivable for Operating Leases [Line Items] | |
2,018 | $ 205,507 |
2,019 | 205,507 |
2,020 | 193,764 |
Total | $ 604,778 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 17, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 613,811 | $ 434,475 | |
Lease Expiration Date | May 31, 2020 | ||
Operating Leases, Income Statement, Sublease Revenue | $ 211,379 | $ 233,920 | |
Loss Contingency, Name of Plaintiff | Bonwick Capital Partners, LLC | ||
Bonwick Capital Partners, Llc [Member] | |||
Commitments And Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 6,000,000 | ||
Loss Contingency, Lawsuit Filing Date | May 16, 2017 | ||
Loss Contingency, Allegations | Plaintiff alleges that the Company entered into an agreement with Plaintiff (the “Agreement”), pursuant to which Plaintiff was to provide the Company with financial advisory services in connection with the Company’s initial public offering in the United States. Plaintiff alleges that the Company breached the Agreement |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||
Segment revenue | $ 33,592,337 | $ 35,206,852 |
Cost of goods | 22,776,035 | 24,037,241 |
Business and sales related tax | 75,974 | 85,038 |
Gross profit | $ 10,740,328 | $ 11,084,573 |
Gross profit contribution % | 100.00% | 100.00% |
Assets | $ 68,284,970 | $ 57,048,788 |
Bluish Dogbane [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 3,624,993 | 4,387,060 |
Cost of goods | 1,695,938 | 1,974,182 |
Business and sales related tax | 16,076 | 20,711 |
Gross profit | $ 1,912,979 | $ 2,392,167 |
Gross profit contribution % | 17.80% | 21.60% |
Assets | $ 6,983,551 | $ 6,963,093 |
Herbal Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 13,245,236 | 14,031,955 |
Cost of goods | 10,124,063 | 10,990,162 |
Business and sales related tax | 59,898 | 64,327 |
Gross profit | $ 3,061,275 | $ 2,977,466 |
Gross profit contribution % | 28.50% | 26.90% |
Assets | $ 35,222,278 | $ 28,088,515 |
Agricultural Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenue | 16,722,108 | 16,787,837 |
Cost of goods | 10,956,034 | 11,072,897 |
Business and sales related tax | 0 | 0 |
Gross profit | $ 5,766,074 | $ 5,714,940 |
Gross profit contribution % | 53.70% | 51.50% |
Assets | $ 26,079,141 | $ 21,997,180 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] ¥ in Millions | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) |
Tianyitaihe And Tianyirunze [Member] | ||
Subsequent Event [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% |
Tianyirunze [Member] | ||
Subsequent Event [Line Items] | ||
Equity Method Investment Summarized Financial Information, Equity | $ 1,502,652 | ¥ 10 |
Tianyitaihe [Member] | ||
Subsequent Event [Line Items] | ||
Equity Method Investment Summarized Financial Information, Equity | $ 1,502,652 | ¥ 10 |