Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 21, 2016 | Dec. 31, 2015 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Trading Symbol | cadc | ||
Entity Registrant Name | China Advanced Construction Materials Group, Inc | ||
Entity Central Index Key | 1,392,363 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 2,387,685 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 1,900,000 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
CURRENT ASSETS: | ||
Cash | $ 1,006,970 | $ 2,691,915 |
Restricted cash | 4,097,621 | 11,062,358 |
Accounts receivable, net | 40,288,552 | 40,357,169 |
Inventories | 1,023,471 | 1,416,664 |
Short term investments | 0 | 5,401,499 |
Other receivables | 7,093,030 | 1,080,187 |
Prepayments and advances | 37,209,699 | 52,478,097 |
Deferred tax assets | 0 | 1,836,757 |
Total current assets | 90,719,343 | 116,324,646 |
PROPERTY PLANT AND EQUIPMENT, net | 4,709,794 | 10,155,848 |
ADVANCES ON EQUIPMENT PURCHASES, net of allowance of $0 and $3,578,891 as of June 30, 2016 and 2015, respectively | 0 | 1,684,064 |
Total assets | 95,429,137 | 128,164,558 |
CURRENT LIABILITIES: | ||
Short term loans, banks and bank guarantees | 16,555,440 | 26,355,700 |
Notes payable | 18,060,480 | 30,530,050 |
Accounts payable | 31,234,091 | 23,399,883 |
Customer deposits | 4,272,144 | 1,284,579 |
Other payables | 600,205 | 2,704,233 |
Other payables - shareholders | 1,491,125 | 683,678 |
Accrued liabilities | 1,992,214 | 2,003,662 |
Capital lease obligations - current | 0 | 1,489,384 |
Taxes payable | 95,708 | 12,859 |
Total liabilities | 74,301,407 | 88,464,028 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock $0.001 par value, 1,000,000 shares authorized, no share issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 74,000,000 shares authorized, 2,180,799 shares issued and outstanding as of June 30, 2016 and 2015 | 2,181 | 2,181 |
Additional paid-in-capital | 38,373,584 | 38,373,584 |
Accumulated deficit | (31,204,831) | (15,398,817) |
Statutory reserves | 6,248,357 | 6,248,357 |
Accumulated other comprehensive income | 7,708,439 | 10,475,225 |
Total shareholders' equity | 21,127,730 | 39,700,530 |
Total liabilities and shareholders' equity | 95,429,137 | 128,164,558 |
Parent Company [Member] | ||
CURRENT ASSETS: | ||
Cash | 456 | 456 |
Prepayments and advances | 0 | 498,604 |
Total current assets | 456 | 456 |
Total assets | 22,327,730 | 40,300,530 |
OTHER ASSETS: | ||
Intercompany receivable | 17,192,991 | 17,192,991 |
Investment in subsidiaries | 5,134,283 | 22,608,479 |
Total other assets | 22,327,274 | 40,300,074 |
CURRENT LIABILITIES: | ||
Other payables - shareholders | 1,200,000 | 600,000 |
Total liabilities | 1,200,000 | 600,000 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock $0.001 par value, 1,000,000 shares authorized, no share issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 74,000,000 shares authorized, 2,180,799 shares issued and outstanding as of June 30, 2016 and 2015 | 2,181 | 2,181 |
Additional paid-in-capital | 38,373,584 | 38,373,584 |
Accumulated deficit | (31,204,831) | (15,398,817) |
Statutory reserves | 6,248,357 | 6,248,357 |
Accumulated other comprehensive income | 7,708,439 | 10,475,225 |
Total shareholders' equity | 21,127,730 | 39,700,530 |
Total liabilities and shareholders' equity | $ 22,327,730 | $ 40,300,530 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Advances On Equipment Purchases Net Of Allowance | $ 0 | $ 3,578,891 |
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 74,000,000 | 74,000,000 |
Common Stock, Shares, Issued | 2,180,799 | 2,180,799 |
Common Stock, Shares, Outstanding | 2,180,799 | 2,180,799 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
REVENUE | ||
Sales of concrete | $ 53,678,660 | $ 55,156,358 |
Manufacturing services | 0 | 314,220 |
Total revenue | 53,678,660 | 55,470,578 |
COST OF REVENUE | ||
Concrete | 51,941,202 | 50,464,403 |
Manufacturing services | 0 | 285,620 |
Total cost of revenue | 51,941,202 | 50,750,023 |
GROSS PROFIT | 1,737,458 | 4,720,555 |
RECOVERY OF (PROVISION) FOR DOUBTFUL ACCOUNTS | (3,854,014) | 2,846,905 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | (6,814,977) | (10,142,589) |
RESEARCH AND DEVELOPMENT EXPENSES | (707,492) | (1,143,476) |
LOSS ON SALE OF ASSET GROUP | (386,906) | 0 |
LOSS REALIZED FROM DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT | 0 | (90,494) |
IMPAIRMENT LOSS OF LONG-LIVED ASSETS | (2,624,487) | 0 |
LOSS FROM OPERATIONS | (12,650,418) | (3,809,099) |
OTHER (EXPENSE) INCOME, NET | ||
Subsidy income | 0 | 1,673,444 |
Non-operating income (expense), net | 20,920 | (2,167) |
Interest income | 268,088 | 1,175,683 |
Interest expense | (838,323) | (1,361,697) |
Finance expense | (861,306) | (739,920) |
TOTAL OTHER (LOSS) INCOME, NET | (1,410,621) | 745,343 |
LOSS BEFORE PROVISION FOR INCOME TAXES | (14,061,039) | (3,063,756) |
PROVISION FOR INCOME TAXES | (1,744,975) | (1,100,356) |
NET LOSS | (15,806,014) | (4,164,112) |
OTHER COMPREHENSIVE INCOME (LOSS) - | ||
NET LOSS | (15,806,014) | (4,164,112) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (2,766,786) | 319,747 |
COMPREHENSIVE LOSS | $ (18,572,800) | $ (3,844,365) |
Weighted average number of shares: | ||
Basic | 2,180,799 | 1,936,591 |
Diluted | 2,180,799 | 1,936,591 |
Loss per share: | ||
Basic | $ (7.25) | $ (2.15) |
Diluted | $ (7.25) | $ (2.15) |
Parent Company [Member] | ||
COST OF REVENUE | ||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | $ (1,098,604) | $ (1,114,809) |
LOSS FROM OPERATIONS | (1,098,604) | (1,114,809) |
OTHER (EXPENSE) INCOME, NET | ||
EQUITY LOSS OF SUBSIDIARIES | (14,707,410) | (3,049,303) |
NET LOSS | (15,806,014) | (4,164,112) |
OTHER COMPREHENSIVE INCOME (LOSS) - | ||
NET LOSS | (15,806,014) | (4,164,112) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (2,766,786) | 319,747 |
COMPREHENSIVE LOSS | $ (18,572,800) | $ (3,844,365) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-In capital [Member] | Retained earnings Unrestricted [Member] | Retained earnings Statutory reserves [Member] | Accumulated other comprehensive income [Member] | Total | Parent Company [Member] |
Beginning Balance at Jun. 30, 2014 | $ 1,487 | $ 35,233,305 | $ (11,234,705) | $ 6,248,357 | $ 10,155,478 | $ 40,403,922 | |
Beginning Balance (Shares) at Jun. 30, 2014 | 1,486,871 | ||||||
Restricted stock issued for compensation and services | $ 252 | 1,012,979 | 1,013,231 | ||||
Restricted stock issued for compensation and services (Shares) | 251,875 | ||||||
Common stock issued for repayment of related-party debts | $ 175 | 960,009 | 960,184 | ||||
Common stock issued for repayment of related-party debts (Shares) | 174,865 | ||||||
Common stock issued under Employee Stock Purchase Plan | $ 267 | 1,167,291 | 1,167,558 | ||||
Common stock issued under Employee Stock Purchase Plan (Shares) | 267,188 | ||||||
Net loss | (4,164,112) | (4,164,112) | $ (4,164,112) | ||||
Foreign currency translation loss | 319,747 | 319,747 | |||||
Ending Balance at Jun. 30, 2015 | $ 2,181 | 38,373,584 | (15,398,817) | 6,248,357 | 10,475,225 | 39,700,530 | 39,700,530 |
Ending Balance (Shares) at Jun. 30, 2015 | 2,180,799 | ||||||
Net loss | (15,806,014) | (15,806,014) | (15,806,014) | ||||
Foreign currency translation loss | (2,766,786) | (2,766,786) | |||||
Ending Balance at Jun. 30, 2016 | $ 2,181 | $ 38,373,584 | $ (31,204,831) | $ 6,248,357 | $ 7,708,439 | $ 21,127,730 | $ 21,127,730 |
Ending Balance (Shares) at Jun. 30, 2016 | 2,180,799 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (15,806,014) | $ (4,164,112) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Depreciation | 1,953,087 | 2,127,260 |
Stock-based compensation expense | 498,604 | 514,809 |
Deferred tax provision | 1,744,952 | 764,487 |
Provision for (recovery of) doubtful accounts | 3,854,014 | (2,846,905) |
Loss realized from disposal of property, plant and equipment | 0 | 90,494 |
Loss on sale of Asset Group | 386,906 | 0 |
Impairment loss of long-lived assets | 2,624,487 | 0 |
Changes in operating assets and liabilitie | ||
Accounts and notes receivable | (31,302,306) | (11,520,175) |
Inventories | (60,840) | 156,413 |
Other receivables | 660,051 | 3,388,038 |
Prepayments and advances | 5,334,686 | (15,995,822) |
Accounts payable | 33,108,245 | 13,511,852 |
Customer deposits | 3,194,095 | 202,663 |
Other payables | (1,150,691) | 631,801 |
Other payables - shareholders | 600,000 | 600,000 |
Accrued liabilities | 139,943 | (251,495) |
Taxes payable | 86,679 | (179,882) |
Net cash provided by (used in) operating activitie | 5,865,898 | (12,970,574) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Redemptions of short-term investments, net | 5,131,523 | 9,377,145 |
Proceeds from disposal of property, plant and equipment | 0 | 57,015 |
Purchase of property, plant and equipment | (208,113) | (43,633) |
Net cash provided by investing activities | 4,923,410 | 9,390,527 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short term loans and bank guarantees | 17,106,980 | 43,005,600 |
Payments of short term loans and bank guarantees | (25,038,398) | (71,309,312) |
Proceeds from short term loans - other | 0 | 0 |
Payments of short term loans - other | 0 | (3,258,000) |
Proceeds from notes payable | 50,854,386 | 50,987,700 |
Payments of notes payable | (61,196,333) | (30,380,850) |
Payable to shareholder | 207,447 | 118,302 |
Principal payments on capital lease obligations | (516,534) | (2,000,549) |
Change in restricted cash | 6,275,311 | 2,437,985 |
Proceeds from issuance of common stock | 0 | 1,167,552 |
Net cash used in financing activities | (12,307,141) | (9,231,572) |
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | (167,112) | 72,424 |
NET CHANGE IN CASH | (1,684,945) | (12,739,195) |
CASH, beginning of year | 2,691,915 | 15,431,110 |
CASH, end of year | 1,006,970 | 2,691,915 |
Parent Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | (15,806,014) | (4,164,112) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 498,604 | 514,809 |
Loss from subsidiaries | 14,707,410 | 3,049,303 |
Changes in operating assets and liabilitie | ||
Other payables - shareholders | 600,000 | 600,000 |
Net cash provided by (used in) operating activitie | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
EFFECTS OF EXCHANGE RATE CHANGE IN CASH | 0 | 0 |
NET CHANGE IN CASH | 0 | 0 |
CASH, beginning of year | 456 | 456 |
CASH, end of year | $ 456 | $ 456 |
Organization and description of
Organization and description of business | 12 Months Ended |
Jun. 30, 2016 | |
Organization and description of business [Text Block] | Note 1 – Organization and description of business China Advanced Construction Materials Group, Inc. (“CADC Delaware”) was incorporated in the State of Delaware on February 15, 2007. CADC Delaware, through its 100% owned subsidiaries and its variable interest entities (“VIEs”), is engaged in producing general ready-mix concrete, customized mechanical refining concrete, and other concrete-related products that are mainly sold in the People’s Republic of China (“PRC”). CADC Delaware has a wholly-owned subsidiary in the British Virgin Islands, Xin Ao Construction Materials, Inc. (“BVI-ACM”), which is a holding company with no operations. BVI-ACM has a wholly-owned foreign enterprise, Beijing Ao Hang Construction Material Technology Co., Ltd. (“China-ACMH”), and China-ACMH has contractual agreements with an entity which is considered as a VIE. On August 1, 2013, CADC Delaware consummated a reincorporation merger with its newly formed wholly-owned subsidiary, China Advanced Construction Materials Group, Inc. (“China ACM”), a Nevada corporation, with CADC Delaware merging into China ACM and China ACM being the surviving company, for the purpose of changing CADC Delaware’s state of incorporation from Delaware to Nevada. Beijing XinAo Concrete Group (“Xin Ao”), a VIE, is engaged in the business of consulting, concrete mixing and equipment rental services. Xin Ao has five wholly-owned subsidiaries (collectively, and with “Xin Ao”, the “VIEs”) in the PRC: (1) Beijing Heng Yuan Zheng Ke Technical Consulting Co., Ltd (“Heng Yuan Zheng Ke”), (2) Beijing Hong Sheng An Construction Materials Co., Ltd (“Hong Sheng An”), (3) Beijing Heng Tai Hong Sheng Construction Materials Co., Ltd (“Heng Tai”), (4) Da Tong Ao Hang Wei Ye Machinery, Equipment Rental Co., Ltd (“Da Tong”) and (5) Luan Xian Heng Xin Technology Co., Ltd (“Heng Xin”). There were no operations since establishment of these five entities and the Company is not planning to pursue operations for these entities. As a result, the Company has determined to dissolve these entities between March 2016 and June 2016. As of the date of this report, Da Tong has already dissolved and the other four entities are still under the administrative process of dissolving. China ACM, BVI-ACM, China-ACMH and the VIEs are collectively referred to as the “Company.” |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 30, 2016 | |
Summary of significant accounting policies [Text Block] | Note 2 – Summary of significant accounting policies Liquidity In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. The Company engages in the production of advanced construction materials for large scale infrastructure, commercial and residential developments. The Company’s business is capital intensive and the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties and bank acceptance notes, have been utilized to finance the working capital requirements and the capital expenditures of the Company. Due to recurring losses, the Company’s working capital was approximately $16.4 million as of June 30, 2016 as compared to $27.9 million as of June 30, 2015. As of June 30, 2016, cash on-hand balance of approximately $1.0 million and restricted cash balance of approximately $4.1 million with the remaining current assets are mainly composed of accounts receivables, other receivables, and prepayments and advances. Although the Company believes that it can realize its current assets, the Company’s ability to repay its current obligations will depend on the future realization of its current assets. Management had considered the historical experience, the economy, trends in the construction industry, the expected collectability of the accounts and other receivables and the realization of the prepayments on inventory, and provided for an allowance for doubtful accounts as of June 30, 2016. The Company expects to realize the balances net of the allowance within normal operating cycle of twelve months period. If the Company is unable to realize its current assets within the normal operating cycle of twelve months period, the Company may have to consider its available source of funds through the following: • Financial support and credit guarantee commitment from the Company’s majority shareholders (See Note 11 Related party transactions). • Other available sources of financing from the PRC banks and other financial institutions given the Company’s credit history. Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s working capital requirements and debt obligations as they become due. However, there is no assurance that management will be successful in their plan. There are a number of factors that could potentially arise that could result in shortfalls to the Company’s plan, such as the demand for the Company’s products, economic conditions, the competitive pricing in the concrete-mix industry, the Company’s operating results not continuing to deteriorate and the Company’s bank and shareholders being able to provide continued support. Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. Principles of consolidation The consolidated financial statements reflect the activities of the following subsidiaries and VIEs. All material intercompany transactions have been eliminated. Ownership Subsidiaries and VIEs Place incorporated percentage BVI-ACM British Virgin Island 100% China-ACMH Beijing, China 100% Xin Ao Beijing, China VIE Heng Yuan Zheng Ke Beijing, China VIE Hong Sheng An Beijing, China VIE Heng Tai Beijing, China VIE Da Tong Datong, China VIE Heng Xin Luanxian, China VIE VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIEs. The primary beneficiary is required to consolidate the VIEs for financial reporting purposes. Management makes ongoing assessments of whether China ACM is the primary beneficiary of Xin Ao and its subsidiaries. Based upon a series of contractual arrangements, the Company determined that Xin Ao and its subsidiaries are VIEs subject to consolidation and that China ACM is the primary beneficiary. Accordingly, the accounts of Xin Ao and its subsidiaries are consolidated with those of China ACM. The carrying amount of the VIEs’ assets and liabilities are as follows: June 30, June 30, 2016 2015 Current assets $ 90,518,451 $ 115,628,360 Property, plant and equipment 4,709,794 10,154,170 Other noncurrent assets - 491,100 Total assets 95,228,245 126,273,630 Liabilities (72,579,677 ) (87,520,412 ) Intercompany payables* (7,355,650 ) (8,650,651 ) Total liabilities (79,935,327 ) (96,171,063 ) Net Assets $ 15,292,918 $ 30,102,567 * Payables to China - ACMH and BVI-ACM are eliminated upon consolidation. Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s consolidated financial statements include deferred income taxes, allowance for doubtful accounts, deferred stock-based compensation, the fair value and useful lives of property, plant and equipment. Actual results could be materially different from those estimates, upon which the carrying values were based. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of China ACM and BVI-ACM is the U.S. dollar. China-ACMH and its VIEs use their local currency Chinese Renminbi (“RMB”) as their functional currency. In accordance with the US GAAP guidance on Foreign Currency Translation, the Company’s results of operations and cash flows are translated at the average exchange rates during the period, assets and liabilities are translated at the exchange rates at the balance sheet dates, and equity is translated at historical exchange rates. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Asset and liability accounts at June 30, 2016 and 2015, were translated at RMB6.64 to $1.00 and RMB6.11 to $1.00, respectively. The average translation rates applied to the consolidated statements of operations and comprehensive loss and cash flows for the years ended June 30, 2016 and 2015 were RMB6.43 and RMB6.14 to $1.00, respectively. Translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive income. Revenue recognition Revenue is realized or realizable and earned when four criteria are met: • Persuasive evidence of an arrangement exists (the Company considers its sales contracts and technical service agreements to be pervasive evidence of an arrangement); • Delivery has occurred or services have been rendered; • The seller’s price to the buyer is fixed or determinable; and • Collectability of payment is reasonably assured. The Company sells its concrete products and provides concrete technical services primarily to major local construction companies. Sales agreements are signed with each customer. The agreements list all terms and conditions with the exception of delivery date and quantity, which are evidenced separately in purchase orders. The purchase price of products is fixed in the agreement and customers are not permitted to renegotiate after the contracts have been signed. The agreements include a cancellation clause if the Company or customers breach the contract terms specified in the agreement. The Company recognizes revenue when title and ownership of the goods are transferred upon shipment to the customer or services are provided by the Company and collectability of payment is reasonably assured. The Company includes the shipping and handling fee in both revenue and cost of revenue. Financial instruments The US GAAP accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3 inputs to the valuation methodology are unobservable. Current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. The carrying value of long-term capital lease obligations approximate their fair value as interest rates approximate the market rate. Cash and cash equivalents The Company considers all highly liquid investments with the original maturity of three months or less at the date of purchase to be cash equivalents. The Company currently maintains substantially all of its day-to-day operating cash balances with major financial institutions within PRC and US. As of June 30, 2016 and 2015, the Company had deposits in excess of federally insured limits totaling approximately $0.9 million and $2.6 million, respectively. Restricted cash As of June 30, 2016 and 2015, restricted cash consisted of collateral representing cash deposits for short term loans, bank guarantees and notes payable. Accounts receivable During the normal course of business, the Company extends unsecured credit to its customers. Accounts are considered past due after 30 days. In establishing the required allowance for doubtful accounts, management considers the historical experience, the economy, trends in the construction industry and the expected collectability of the overdue receivables. Management reviews its accounts receivable each reporting period to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is recorded when collection of the full amount is no longer probable. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovering is considered remote. The Company provides a provision of 15% of allowance for doubtful accounts for accounts receivable balance that are past due more than 180 days but less than one year, 40% of allowance for doubtful accounts for accounts receivable past due from one to two years, 75% of allowance for doubtful accounts for accounts receivable past due beyond two years, 100% of allowance for doubtful accounts for accounts receivable past due beyond three years, plus additional amount as necessary, which the Company’s collection department had determined the collection of the full amount is remote with the approval from the Company’s management to provide 100% provision allowance for doubtful accounts. The Company’s management has continued to evaluate the reasonableness of the valuation allowance policy and update it if necessary. Other receivables Other receivables primarily include prepayments to be refunded by our suppliers if the supplies do not meet the Company’s specification need, advances to employees, due from unrelated entities, VAT tax refunds and other deposits. Management regularly reviews the aging of receivables and changes in payment trends and records allowance when management believes collection of amounts due are at risk. Accounts considered uncollectible are written off against the allowance after exhaustive efforts at collection are made. The Company provides a provision of 5% of allowance for doubtful accounts for other receivables balance that are aged within 1 year, 50% of allowance for doubtful accounts for other receivables aged from one to two years, 100% of allowance for doubtful accounts for other receivables aged beyond two years. Inventories Inventories consist of raw materials and are stated at the lower of cost or market, as determined using the weighted average cost method. Management compares the cost of inventories with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost. As of June 30, 2016 and June 30, 2015, the Company determined that no reserves for obsolescence were necessary. Short term investments The Company entered into an investment agreement with a financial investment company in April 2015. The agreement allows the Company to invest up to RMB100 million ($16.4 million) for maximum periods of two years. The Company can redeem the investment at any time within the agreed period upon 30 -day notice. The financial investment company invests the Company’s funds in certain financial instruments including bonds, mortgage trust or mutual funds. The rates of return on these investments were estimated to be approximately at 10% per annum by such a financial investment company. As of June 30, 2016 the Company did not experience gain or loss on the redemption of its investment and all of the investments were returned to the Company. Prepayments and advances Prepayments are monies deposited or advanced to outside vendors for future inventory purchases. As a standard practice in China, many of the Company’s vendors require a certain amount to be deposited with them as a guarantee that the Company will complete its purchases on a timely basis. This amount is refundable and bears no interest. The Company has legally binding contracts with its vendors, which require any outstanding prepayments to be returned to the Company when the contract ends. Property, plant and equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred while additions, renewals and improvements are capitalized. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method with 5% residual value. Leasehold improvements are amortized over the lesser of estimated useful lives or lease terms, as appropriate. The estimated useful lives of assets are as follows: Useful life Transportation equipment 7 - 10 years Plant and machinery 10 years Office equipment 5 years Buildings and improvements 3 - 20 years Accounting for long-lived assets The Company classifies its long-lived assets into: (i) machinery and equipment; (ii) transportation equipment, (iii) office and equipment; and (iv) buildings and improvements. Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. It is possible that these assets could become impaired as a result of technology or other industry changes. If circumstances require a long-lived asset or asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company makes various assumptions and estimates regarding estimated future cash flows and other factors in determining the fair values of the respective assets. The Company uses set criteria that are reviewed and approved by various levels of management, and estimates the fair value of the asset or asset group by using discounted cash flow analyses. If these estimates or their related assumptions change in the future, it is required to record impairment charges for the underlying assets at such time. Any such resulting impairment charges could be material to the Company’s results of operations. If the value of an asset is determined to be impaired, the impairment to be recognized is measured in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or the fair value, less disposition costs. Due to recurring losses, the deterioration of the concrete-mix industry in the city of Beijing, PRC and competitive pricing pressure, the Company has performed an impairment analysis and determined its long-lived assets are impaired. As a result, the Company recorded an impairment charge of $2.6 million for the year ended June 30, 2016. These charges were related to the impairment of the Company’s transportation equipment and plant and machinery. The loss was determined using Level 3 inputs (See Note 7). There was no impairment charge for the year ended June 30, 2015. Competitive pricing pressure and changes in interest rates could materially and adversely affect the Company’s estimates of future net cash flows to be generated by the long-lived assets, and thus could result in future impairment losses. Advances on equipment purchases, net The Company advances monies to a supplier for equipment purchase. These advances are interest free and unsecured. The Company has made advances to a supplier to construct specialized equipment to expand its operation into construction material recycling. However, the Company did not finalize its plan on whether to continue to pursue such business while its supplier cannot refund the advances due to the unique specification. As a result, for each of the years ended June 30, 2016 and 2015, the Company recorded a bad debt allowance for advances on equipment purchases for approximately $1.1 million and $1.2 million, respectively. Management is still making efforts to collect partially or negotiate with the supplier for some other alternative solutions to minimize the Company’s loss. However, as management believes the collection of the full payment are remote, management has written-off the full balance of the advances on equipment purchase against the allowance for doubtful account during the year ended June 30, 2016. Stock-based compensation The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee's requisite service period. Unrecognized expense is deferred and included in the consolidated balance sheets, and amortized over the remaining requisite service period. The Company’s expected volatility assumption is based on the historical volatility of Company’s stock or the expected volatility of similar entities. The expected life assumption is primarily based on historical exercise patterns and employee post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based on the Company’s current and expected dividend policy. Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. ASC 740-10, “Accounting for Uncertainty in Income Taxes,” defines uncertainty in income taxes and the evaluation of a tax position as a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. United States federal, state and local income tax returns prior to 2013 are not subject to examination by any applicable tax authorities. Value Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance, or import and export goods in the PRC are subject to a value added tax. The standard VAT rate was 6% of gross sales for the Company’s industry, which was reduced to 3% of gross sales on July 1, 2014. Due to the fact that the Company uses recycled raw materials to manufacture its products, the State Administration of Taxation granted the Company a VAT tax exemption, which expired in June 2015. From July 2015 going forward, the Company is subject to VAT at the reduced rate of 3% of the gross sales price. Research and development and repair and maintenance Research and development, and repair and maintenance costs are expensed as incurred. The cost of materials and equipment that are acquired or constructed for research and development activities, and have alternative future uses, either in research and development, marketing, or sales, are classified as property and equipment, and depreciated over their estimated useful lives. Research and development costs for the years ended June 30, 2016 and 2015 were approximately $0.7 million and $1.1 million, respectively. Repair and maintenance costs for the years ended June 30, 2016 and 2015 were approximately $0.6 million and $0.2 million, respectively. Earnings (loss) per share The Company reports earnings (loss) per share in accordance with the US GAAP, which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings (loss) per share excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts, such as warrants, options, restricted stock based grants and convertible preferred stock, to issue common stock were exercised and converted into common stock. Common stock equivalents having an anti-dilutive effect on earnings per share are excluded from the calculation of diluted earnings per share. Diluted loss per share is the same as basic loss per share since the addition of any contingently issuable shares would be anti-dilutive. Stock dividends or stock splits be accounted for retroactively if the stock dividends or stock splits occur during the period, or retroactively if the stock dividends or stock splits occur after the end of the period but before the release of the financial statements, by considering it outstanding of the entirety of each period presented. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Comprehensive income Comprehensive income consists of net income and foreign currency translation adjustments. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. In April 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows. |
Supplemental disclosure of cash
Supplemental disclosure of cash flow information | 12 Months Ended |
Jun. 30, 2016 | |
Supplemental disclosure of cash flow information [Text Block] | Note 3 – Supplemental disclosure of cash flow information For the years ended June 30, 2016 and 2015, the Company paid interest in the amounts of approximately $0.8 million and $1.4 million, respectively. Cash payments for income tax for the years ended June 30, 2016 and 2015 were approximately $0 and $0.5 million, respectively. Non-cash investing and financing activities During the year ended June 30, 2016, pursuant to the three-party settlement agreement, the Company offset capital lease obligations with prepayment and advances on equipment purchases for approximately $0.7 million, and with accounts and notes receivable for approximately $0.2 million. The Company had receivables of approximately $1.7 million as a result of disposal of certain assets and liabilities during the year ended June 30, 2016 and the net assets disposal value was approximately $2.0 million (See Note 6). The Company had receivables of approximately $0.8 million as a result of disposal of property, plant and equipment during the year ended June 30, 2015. Pursuant to a three-party settlement agreement, the Company offset accounts receivable with capital lease obligations for approximately $2.4 million during the year ended June 30, 2015. The Company issued stock to payoff shareholder debt of approximately $0.9 million (See Note 12). Other During the year ended June 30, 2016, the Company offset approximately $20.1 million of accounts receivable and accounts payable pursuant to certain three-party settlement agreements. During the year ended June 30, 2016, the Company reclassified approximately $5.4 million from prepayments and advances to other receivables as the suppliers’ products do not meet the Company’s specification need and the Company has requested for the advances to be refunded. |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Jun. 30, 2016 | |
Accounts receivable, net [Text Block] | Note 4 – Accounts receivable, net Accounts receivable, net consisted of the following: June 30, June 30, 2016 2015 Accounts receivable $ 51,812,683 $ 68,566,418 Less: Allowance for doubtful accounts (11,524,131 ) (28,209,249 ) Total accounts receivable, net $ 40,288,552 $ 40,357,169 Movement of allowance for doubtful accounts is as follows: June 30, 2016 June 30, 2015 Beginning balance $ 28,209,249 $ 31,667,803 Provision for (recovery of) doubtful accounts 2,591,465 (4,034,039 ) Less: write-off (17,482,713 ) (66,839 ) Exchange rate effect (1,793,870 ) 643,324 Ending balance $ 11,524,131 $ 28,209,249 |
Inventory
Inventory | 12 Months Ended |
Jun. 30, 2016 | |
Inventory [Text Block] | Note 5 – Inventories Inventories consisted of the following: June 30, June 30, 2016 2015 Raw materials $ 1,023,471 $ 1,416,664 |
Other receivables
Other receivables | 12 Months Ended |
Jun. 30, 2016 | |
Other receivables [Text Block] | Note 6 – Other receivables Other receivables Other receivables and allowance for doubtful accounts consisted of the following: June 30, June 30, 2016 2015 Other receivables, current $ 7,742,057 $ 3,483,549 Less: Allowance for doubtful accounts, current (2,334,672 ) (2,403,362 ) Other receivables - current, net 5,407,385 1,080,187 Other receivable from sale of net assets 1,685,645 - $ 7,093,030 $ 1,087,187 Movement of allowance for doubtful accounts is as follows: June 30, 2016 June 30, 2015 Beginning balance $ 2,403,362 $ 2,810,887 Provision for (recovery of) doubtful accounts 129,212 - Less: write-off - (426,189 ) Exchange rate effect (197,902 ) 18,664 Ending balance $ 2,334,672 $ 2,403,362 Other receivable from sale of Asset Group On February 29, 2016, the Company terminated an operating lease for its concrete plant in the eastern suburban area of Beijing due to the fact that the plant was not operating at ideal capacity and the Company did not anticipate it would in the foreseeable future. The Company entered an agreement with the lessor to terminate its operating lease, which was originally effective from August 18, 2013 to August 17, 2021, and for the sale of certain of the Company’s assets and liabilities (“Asset Group”) at the leased location. Under the agreement, the carrying value of the Asset Group was determined to be RMB13.7 million (approximately $2.1 million), and was settled for RMB11.2 million (approximately $1.7 million). The Company recognized approximately $0.4 million loss from the sale of the Asset Group for the year ended June 30, 2016. The Company received RMB3.0 million (approximately $0.5 million) subsequently in July and August 2016. Pursuant to the terms of the agreement, the remaining consideration of RMB8.2 million (approximately $1.2 million) are to be paid by December 31, 2016. As of February 29, 2016, the book value of the net assets underlying the lease and the determination of the $0.4 million loss is as follows: Total consideration $ 1,685,645 Asset Group Accounts receivable 4,906,752 Inventories 337,873 Property plant and equipment 430,497 Prepaid 46,725 Accounts payable (2,865,550 ) Other payables (796,220 ) Total of Asset Group 2,060,077 Total loss from sale of Asset Group (374,432 ) Exchange rate effect (12,474 ) Total loss from sale of Asset Group $ (386,906 ) In accordance with ASC 205, the Company did not report the sale of the Asset Group as discontinued operations as the sale of the Asset Group did not represent a strategic shift that has a major effect on the Company’s operations and financial results. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2016 | |
Property, plant and equipment [Text Block] | Note 7 – Property, plant and equipment Property, plant and equipment consist of the following: June 30, June 30, 2016 2015 Machinery and equipment $ 754,997 $ 2,363,324 Transportation equipment 4,299,862 1,030,710 Leased equipment - 11,287,442 * Office equipment 1,172,059 1,305,992 Buildings and improvements 314,909 393,205 Total 6,541,827 16,380,673 Less: Accumulated depreciation (1,832,033 ) (6,224,825 ) Plant and equipment, net $ 4,709,794 $ 10,155,848 *The Company had reclassified the leased equipment to transportation equipment as all the capital lease term were ended in February 2016. Long-lived assets are reviewed for impairment if events and changes in circumstances indicate that their carrying amounts may not be recoverable. Due to the recurring losses in the Company’s operations, the Company assessed the recoverability of all of its remaining long-lived assets at June 30, 2016 and 2015, respectively. Such assessment did not result in any impairment charges for the year ended June 30, 2015. However, during the year ended June 30, 2016, the competitive pricing in the concrete-mix industry in the city of Beijing, PRC has effected the Company’s operations, and continue to deteriorate the Company’s projected cash flow. Based on the Company’s evaluation, the amount deviated from the sum of the discounted cash flows expected to be generated from the long-lived assets and were less than the carrying value by approximately $2.6 million. As a result, an impairment loss was recorded and included in operating expenses for the year ended June 30, 2016. The discounted cash flows were determined using certain expected changes to the current operational assumptions and were based upon, but not limited to, the following assumptions: • Projected selling units and growth in the Company’s concrete-mix market along with the consideration of which the Company had remained with one concrete mixture station. • Projected unit selling price in the concrete-mix market in the city of Beijing, PRC. • Projected unit purchase cost in the cement market in the city of Beijing, PRC. • Selling and general and administrative expenses to be in line with the growth in the concrete-mix market. • Projected bank borrowings interest rate. Depreciation expense for the years ended June 30, 2016 and 2015 amounted to approximately $2.0 million and $2.1 million, respectively, of which, approximately $1.5 million and $1.5 million were depreciation expense for the leased equipment for the years ended June 30, 2016 and 2015, respectively. |
Prepayments and advances
Prepayments and advances | 12 Months Ended |
Jun. 30, 2016 | |
Prepayments and advances [Text Block] | Note 8 – Prepayments and advances Prepayments and advances consisted of the following: June 30, June 30, 2016 2015 Advances on inventory purchases $ 37,209,699 $ 51,979,493 Deferred stock-based compensation - 498,604 Total prepayments and advances $ 37,209,699 $ 52,478,097 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Jun. 30, 2016 | |
Credit Facilities [Text Block] | Note 9 – Credit Facilities Short term loans - banks: The outstanding balances on these loans consisted of the following: June 30, June 30, 2016 2015 Loans from China Construction Bank, each with an interest rate from 4.35% per 12,404,320 5,729,500 Loan from Bank of Beijing, interest rate at 5.66% per annum, due March, 2017, 4,515,120 4,911,000 Loan from Citic Bank, interest rate at 7.80% per annum; guaranteed by Beijing - 3,274,000 $ 16,555,440 $ 13,914,500 The above guarantor is a supplier to the Company. Mr. Xianfu Han and Mr. Weili He are the Company’s Chief Executive Officer and interim Chief Financial Officer, respectively. Also see Note 11 – Related party transactions. Interest expenses were approximately $0.8 million and $1.4 million for the years ended June 30, 2016 and 2015, respectively. Bank guarantees: Bank guarantees represent amounts due to issuing banks after beneficiary vendors completed shipments. Bank guarantees are non-interest bearing and due within six months. The outstanding balances on these bank guarantees consisted of the following: June 30, June 30, 2016 2015 Bank guarantees due to China Construction Bank, guaranteed by Beijing Jinshengding Mineral Products Co., LTD, and Mr. Xianfu Han, a related party. The guarantees were repaid in full in November 2015. $ - $ 12,441,200 As of June 30, 2016 and June 30, 2015, the Company had restricted cash for short-term loans and bank guarantees of approximately $22,000 and $2.6 million, respectively. Notes payable: Bank notes are issued to a third party for inventory purchases. The notes payable were guaranteed by Beijing Jinshengding Mineral Products Co., LTD and Mr. Xianfu Han and amounted to approximately $18.1 million (RMB120 million) and $30.5 million (RMB187 million) as of June 30, 2016 and June 30, 2015, respectively, and were non-interest bearing with expiration dates between July and December 2016. The restricted cash for the notes was approximately $4.1 million and $8.5 million as of June 30, 2016 and June 30, 2015, respectively. |
Capital lease obligations
Capital lease obligations | 12 Months Ended |
Jun. 30, 2016 | |
Capital lease obligations [Text Block] | Note 10 – Capital lease obligations Capital lease obligations consisted of the following: June 30, June 30, 2016 2015 Lease obligations for concrete pump trucks, paid off in February 2016 $ - $ 1,152,950 Lease obligations for concrete mixer trucks, paid off in September 2015 - 95,420 Lease obligations for concrete mixer, paid off in February 2016 - 266,757 Total - 1,515,127 Less: Deferred interest - (25,743 ) - 1,489,384 Less: Capital lease obligations - current - (1,489,384 ) Capital lease obligations - non current $ - $ - Interest expenses were approximately $25,000 and $0.2 million for the years ended June 30, 2016 and 2015, respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2016 | |
Related party transactions [Text Block] | Note 11 – Related party transactions Other payables – shareholders Two shareholders advanced funds to BVI-ACM, for working capital purposes. The advances are non-interest bearing, unsecured, and are payable in cash on demand. These two shareholders and officers of the Company also guaranteed certain of the Company’s short-term loans payable to banks (see Note 9). The other payables balance also includes the Company’s salary payables to the two shareholders. In December 2014, the Company issued an aggregate of 174,865 shares of restricted common stock to pay off certain other payables to two shareholders (see Note 13). Other payables - shareholders consisted of the following: June 30, June 30, 2016 2015 Xianfu Han $ 715,086 $ 315,762 Weili He 776,039 367,916 $ 1,491,125 $ 683,678 |
Income taxes
Income taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income taxes [Text Block] | Note 12 – Income taxes (a) Corporate income tax China ACM was organized in the United States. China ACM had no taxable income for United States income tax purposes for the year ended June 30, 2016. As of June 30, 2016, China ACM’s net operating loss carry forward for United States income taxes was approximately $0.6 million. The net operating loss carry forward are available to reduce future years’ taxable income through year 2033. Management believes that the realization of the benefits from these losses appears uncertain due to the Company’s operating history and continued losses in the United States. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset to reduce the asset to zero. As of June 30, 2016 and 2015, valuation allowance for deferred tax assets was approximately $0.2 million and $0.3 million, respectively. Management reviews this valuation allowance periodically and makes changes accordingly. BVI-ACM was incorporated in the British Virgin Islands (“BVI”) and where its income tax rate is $0 under the current laws of the BVI. China-ACMH and VIEs-Chinese operations All of the Company’s income is generated in the PRC, through VIEs. The Company’s VIEs had cumulative losses of approximately $15.3 million and $1.0 million as of June 30, 2016 and June 30, 2015, respectively. Accordingly, no provision has been made for U.S. deferred taxes related to future repatriation of these earnings. China-ACMH and VIEs are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Chinese Enterprise Income Tax (“EIT”) law, the statutory corporate income tax rate applicable to most companies is 25%. In 2009, Xin Ao applied and received an Enterprise High-Tech Certificate. The certificate was awarded based on Xin Ao’s involvement in producing high-tech products, its research and development, as well as its technical services. As granted by the State Administration of Taxation of the PRC, Xin Ao is entitled to a reduction in its income tax rate from 25% to 15% until 2018. The EIT Law imposes a 10% withholding income tax, subject to reduction based on tax treaties where applicable, for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. Such dividends were exempted from PRC tax under the previous income tax law and regulations. The Company intends to permanently reinvest undistributed earnings of its Chinese operations located in the PRC. As a result, there is no deferred tax expense related to withholding tax on the future repatriation of these earnings. Loss before provision for income taxes consisted of: Years ended June 30, 2016 2015 USA and BVI $ (1,556,270 ) $ (1,603,513 ) China (12,504,769 ) (1,460,243 ) $ (14,061,039 ) $ (3,063,756 ) Provision for income taxes consisted of: Years ended June 30, 2016 2015 Current provision: USA $ - $ - China (23 ) (335,869 ) Total current provision (23 ) (335,869 ) Deferred provision: USA - - China (1,744,952 ) (764,487 ) Total deferred provision (1,744,952 ) (764,487 ) Total provision for income taxes $ (1,744,975 ) $ (1,100,356 ) Significant components of deferred tax assets were as follows: June 30, June 30, 2016 2015 Deferred tax assets Allowance for doubtful accounts $ 5,169,993 $ 4,591,891 Impairment loss of long-lived assets 393,673 - Net operating loss carryforward in China 975,894 - Net operating loss carryforward in the U.S. 217,020 309,393 Valuation allowance (6,756,580 ) (3,064,527 ) Total deferred tax assets - current $ - $ 1,836,757 As of June 30, 2015, the Company believes it is more likely than not that its China operations will be unable to fully utilize its deferred tax assets related to provision for doubtful accounts. As such, as of June 30, 2015, the Company provided approximately $2.8 million of valuation allowance to the deferred tax assets related to its China operations, all of which was against deferred tax assets – current related to its allowance for doubtful accounts, as management estimates that certain bad debts may not be deductible against future pre-tax income by the Chinese tax authorities. During the year ended June 30, 2016, the Company incurred and recognized additional $2.4 million deferred tax assets in relation to provision for doubtful accounts, incurred and recognized additional $0.4 million deferred tax assets in relation to impairment loss of long-lived assets, and incurred and recognized additional $1.0 million deferred tax assets in relation to the net operating carryforward in China. However, the Company continued to incur losses in its China operations and believes it is more likely than not that it will not have sufficient income to utilize its deferred tax assets. As a result, the Company had provided 100% allowance on all the deferred tax assets of $6.5 million as of June 30, 2016. The Company has incurred losses from its U.S. operations during all periods presented. Accordingly, management provided approximately $0.2 million and $0.3 million of valuation allowance against the deferred tax assets related to the Company’s U.S. operations as of June 30, 2016 and June 30, 2015, respectively, since the deferred tax benefits of the net operating loss carry forward in the U.S. might not be utilized. Changes to valuation allowance for deferred tax assets were as follows: Valuation Allowance For deferred tax assets As of June 30, 2015 $ 3,064,527 Allowance for doubtful accounts 2,414,859 Impairment loss of long-lived assets 393,673 Change in net operating loss carry forward in China 975,894 Change in net operating loss carry forward in U.S. (92,373 ) As of June 30, 2016 $ 6,756,580 Taxes payable consisted of the following: June 30, June 30, 2016 2015 Other taxes payable $ 95,708 $ 12,859 The following table reconcile the U.S. statutory rates to the Company’s effective tax rate for the years ended June 30, 2016 and 2014. June 30, June 30, 2016 2015 U.S. statutory rates 34% 34% Foreign income not recognized in the U.S. ( 34% ) ( 34% ) PRC statutory rates 25% 25% Preferential tax treatment ( 10% ) ( 10% ) Change in valuation allowance ( 27% ) 2% Non-deductible PRC expenses* - ( 32% ) Other** - ( 22% ) Effective income tax rates ( 12% ) ( 37% ) *This represents certain freight costs disallowed for deductions by PRC tax authorities according to certain VAT tax policy. (b) Uncertain tax positions There were no uncertain tax positions as of June 30, 2016 and June 30, 2015. Management does not anticipate any potential future adjustments which would result in a material change to its tax positions. For the years ended June 30, 2016 and 2015, the Company did not incur any tax related interest and penalties. |
Basis of presentation
Basis of presentation | 12 Months Ended |
Jun. 30, 2016 | |
Parent Company [Member] | |
Basis of presentation [Text Block] | 1. Basis of presentation Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles in the United States of America have been condensed or omitted. China Advanced Construction Materials Group, Inc.’s (the “Company”) investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries. |
Restricted net assets
Restricted net assets | 12 Months Ended |
Jun. 30, 2016 | |
Parent Company [Member] | |
Restricted net assets [Text Block] | 2. Restricted net assets Schedule I of Article 5-04 of Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.). The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the subsidiaries of China Advanced Construction Materials Group, Inc. exceed 25% of the consolidated net assets of China Advanced Construction Materials Group, Inc. The ability of the Company’s Chinese operating affiliates to pay dividends may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries. Because a significant portion of the Company’s operations and revenues are conducted and generated in the People’s Republic of China (“PRC”), a significant portion of our revenues being earned and currency received are denominated in Renminbi (RMB). RMB is subject to the exchange control regulation in China, and, as a result, we may be unable to distribute any dividends outside of China due to PRC exchange control regulations that restrict our ability to convert RMB into US Dollars. |
Shareholders equity
Shareholders equity | 12 Months Ended |
Jun. 30, 2016 | |
Shareholders equity [Text Block] | Note 13 – Shareholders’ equity Restricted Stock Grants Restricted stock grants are measured based on the market price on the grant date. The Company has granted restricted shares of common stock to the members of the board of directors (the “Board”), senior management and consultants. Effective September 9, 2014, the Board granted an aggregate of 150,000 shares of common stock, which were issued with a market value of $625,500 to its 13 employees under the Company’s 2009 Equity Incentive Plan (the “2009 Plan”). These shares are vested in two equal installments every six months from the date of grant. As of June 30, 2016, all of the shares were vested. Effective September 22, 2014, the Board granted and issued 1,875 shares of common stock to an officer. The grant was under the 2009 Plan and the employment agreement by and between the Company and the grantee. In addition, such grant was to fulfill the Company’s contractual obligation in the employment agreement. As a result, the shares were vested immediately upon the issuance. Effective June 29, 2015, the Board granted an aggregate of 100,000 shares of common stock, which were issued with a market value of $380,000 to two employees under the 2009 Plan. These shares are vested in two equal installments every three months from the date of grant. As of June 30, 2016, all of the shares were vested. Effective June 29, 2015, at the annual meeting held on that date, the Stockholders of the Company approved to increase by 200,000 shares of common stock reserved under the 2009 Plan. Effective June 30, 2016, at the annual meeting held on that date, the Stockholders of the Company approved to increase an additional 200,000 shares of common stock reserved under the 2009 Plan. For the years ended June 30, 2016 and 2015, the Company recognized $0.5 million and $0.5 million of compensation expenses related to restricted stock grants, respectively. Following is a summary of the restricted stock grants: Weighted Average Aggregate Grant Date Intrinsic Restricted stock grants Shares Fair Value Per Share Value Nonvested as of June 30, 2014 - $ - $ - Granted 251,875 4.02 1,013,413 Vested (76,875 ) 4.17 320,663 Nonvested as of June 30, 2015 175,000 $ 3.96 $ 692,750 Vested (175,000 ) 3.96 692,750 Nonvested as of June 30, 2016 - $ - $ - Stock Issuance Effective December 2, 2014, the Board authorized the issuance of 174,865 shares of restricted common stock to two shareholders for repayments of certain other payables. These other payables were originated from the professional expenses the shareholders paid on behalf of the Company. 2013 Employee Stock Purchase Plan (the “ESPP”) On November 21, 2013, the Company adopted the 2013 ESPP, which became effective as of such date. Under the ESPP, the Board may grant or provide for the grant of rights to eligible employees to purchase shares of the Company’s common stock by payroll deduction or cash contribution. The aggregate number of shares of common stock that may be issued under the ESPP is 280,000 shares initially plus an annual increase in the number of shares on July 1 of each year, commencing on July 1, 2014 and ending on July 1, 2023, which equals to one percent of the number of shares of Common Stock outstanding on each such date, and subjects to proportionate adjustment in the event of a merger, consolidation, reorganization, recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company, under which circumstances, the class(es) and number of shares and price per share of stock subject to outstanding rights, may also be adjusted by the Board or the committee delegated by the Board. The ESPP will be administered by the Board unless and until Board delegates administration to a committee composed of two or more non-employee directors. Any employee of the Company or any parent (if any) and subsidiary corporation of the Company (the “Affiliate”), who is not a natural person resident in the United States, who has been in the employ of the Company or any Affiliate for such continuous period as required by the Board preceding the grant of rights under the ESPP is eligible to participate in the ESPP during the applicable offering period, subject to administrative rules established by the Board. The ESPP is implemented by sequential offerings, the commencement and duration of which will be determined by the Board. The purchase price at which each share of common stock may be acquired in an offering period upon the exercise of all or any portion of a purchase right will be established by the Board. However, the purchase price on each purchase date will not be less than the greater of the book value or the fair market value of a share of the Common Stock on the purchase date. Effective July 10, 2014, two employees received an aggregate of 65,102 shares of the Company's common stock, at $4.99 per share, the closing stock price on July 9, 2014, and the Company was paid in full a total of $324,860 (RMB2 million) under the ESPP. Effective September 9, 2014, four employees received an aggregate of 202,086 shares of the Company’s common stock, at $4.17 per share, the closing stock price on September 8, 2014, and the Company was paid in full a total of $842,692 (RMB5.2 million) under the ESPP. |
Parent Company [Member] | |
Shareholders equity [Text Block] | 3. Shareholders’ equity Restricted Stock Grants Restricted stock grants are measured based on the market price on the grant date. The Company has granted restricted shares of common stock to the members of the board of directors (the “Board”), senior management and consultants. Effective September 9, 2014, the Board granted an aggregate of 150,000 shares of common stock, which were issued with a market value of $625,500 to its 13 employees under the Company’s 2009 Equity Incentive Plan (the “2009 Plan”). These shares are vested in two equal installments every six months from the date of grant. As of June 30, 2016, all of the shares were vested. Effective September 22, 2014, the Board granted and issued 1,875 shares of common stock to an officer. The grant was under the 2009 Plan and the employment agreement by and between the Company and the grantee. In addition, such grant was to fulfill the Company’s contractual obligation in the employment agreement. As a result, the shares were vested immediately upon the issuance. Effective June 29, 2015, the Board granted an aggregate of 100,000 shares of common stock, which were issued with a market value of $380,000 to two employees under the 2009 Plan. These shares are vested in two equal installments every three months from the date of grant. As of June 30, 2016, all of the shares were vested. Effective June 29, 2015, at the annual meeting held on that date, the Stockholders of the Company approved to increase by 200,000 shares of common stock reserved under the 2009 Plan. Effective June 30, 2016, at the annual meeting held on that date, the Stockholders of the Company approved to increase an additional 200,000 shares of common stock reserved under the 2009 Plan. For the years ended June 30, 2016 and 2015, the Company recognized $0.5 million and $0.5 million of compensation expenses related to restricted stock grants, respectively. Following is a summary of the restricted stock grants: Weighted Average Aggregate Grant Date Intrinsic Restricted stock grants Shares Fair Value Per Share Value Nonvested as of June 30, 2014 - $ - $ - Granted 251,875 4.02 1,013,413 Vested (76,875 ) 4.17 320,663 Nonvested as of June 30, 2015 175,000 $ 3.96 $ 692,750 Vested (175,000) 3.96 692,750 Nonvested as of June 30, 2016 - $ - $ - Stock Issuance Effective December 2, 2014, the Board authorized the issuance of 174,865 shares of restricted common stock to two shareholders for repayments of certain other payables. These other payables were originated from the professional expenses the shareholders paid on behalf of the Company. 2013 Employee Stock Purchase Plan (the “ESPP”) On November 21, 2013, the Company adopted the 2013 ESPP, which became effective as of such date. Under the ESPP, the Board may grant or provide for the grant of rights to eligible employees to purchase shares of the Company’s common stock by payroll deduction or cash contribution. The aggregate number of shares of common stock that may be issued under the ESPP is 280,000 shares initially plus an annual increase in the number of shares on July 1 of each year, commencing on July 1, 2014 and ending on July 1, 2023, which equals to one percent of the number of shares of Common Stock outstanding on each such date, and subjects to proportionate adjustment in the event of a merger, consolidation, reorganization, recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company, under which circumstances, the class(es) and number of shares and price per share of stock subject to outstanding rights, may also be adjusted by the Board or the committee delegated by the Board. The ESPP will be administered by the Board unless and until Board delegates administration to a committee composed of two or more non-employee directors. Any employee of the Company or any parent (if any) and subsidiary corporation of the Company (the “Affiliate”), who is not a natural person resident in the United States, who has been in the employ of the Company or any Affiliate for such continuous period as required by the Board preceding the grant of rights under the ESPP is eligible to participate in the ESPP during the applicable offering period, subject to administrative rules established by the Board. The ESPP is implemented by sequential offerings, the commencement and duration of which will be determined by the Board. The purchase price at which each share of common stock may be acquired in an offering period upon the exercise of all or any portion of a purchase right will be established by the Board. However, the purchase price on each purchase date will not be less than the greater of the book value or the fair market value of a share of the Common Stock on the purchase date. Effective July 10, 2014, two employees received an aggregate of 65,102 shares of the Company's common stock, at $4.99 per share, the closing stock price on July 9, 2014, and the Company was paid in full a total of $324,860 (RMB2 million) under the ESPP. Effective September 9, 2014, four employees received an aggregate of 202,086 shares of the Company’s common stock, at $4.17 per share, the closing stock price on September 8, 2014, and the Company was paid in full a total of $842,692 (RMB5.2 million) under the ESPP. |
Reserves and dividends
Reserves and dividends | 12 Months Ended |
Jun. 30, 2016 | |
Reserves and dividends [Text Block] | Note 14 – Reserves and dividends The laws and regulations of the PRC require that before a foreign invested enterprise can legally distribute profits, it must first satisfy all its tax liabilities, provide for losses in previous years, and make allocations, in proportions determined at the discretion of the Board, after the statutory reserves. The statutory reserves include the surplus reserve fund and the common welfare fund. The Company is required to transfer 10% of its net income, as determined in accordance with the PRC accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the Company’s registered capital. The remaining reserve to fulfill the 50% registered capital requirement amounted to approximately $1.9 million and $2.1 million as of June 30, 2016 and June 30, 2015. The transfer to this reserve must be made before the distribution of any dividends to the Company’s shareholders. The surplus reserve fund is non-distributable other than during liquidation. The surplus reserve fund can however be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. The Chinese government restricts distributions of registered capital and the additional investment amounts required by foreign invested enterprises. Approval by the Chinese government must be obtained before distributions of these amounts can be returned to the shareholders. |
Employee post-retirement benefi
Employee post-retirement benefits | 12 Months Ended |
Jun. 30, 2016 | |
Employee post-retirement benefits [Text Block] | Note 15 – Employee post-retirement benefits The Company offers a defined contribution plan to eligible employees which consists of two parts: (i) the first part, paid by the Company, is 20% of the employee’s compensation from the prior year and (ii) the second part, paid by the employee, is 8% of the employee’s compensation. The Company’s contributions of employment benefits were approximately $0.7 million and $1.0 million for each of the years ended June 30, 2016 and 2015. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and contingencies [Text Block] | Note 16 – Commitments and contingencies Lease Commitments The Company has a lease agreement for a concrete service plant with an unrelated party which will expire on September 30, 2017, with annual payments of approximately $203,000. The Company has a lease agreement to lease office space from a related party through October 31, 2016, with annual payments of approximately $25,000. Operating lease expenses are allocated between the cost of revenue and selling, general, and administrative expenses. Total operating lease expenses for the years ended June 30, 2016 and 2015 were approximately $0.6 million and $1.6 million, respectively. Future annual lease payments, net of rent prepayment non-cancelable operating leases with a term of one year or more consist of the following: Twelve months ending June 30, Amount 2017 $ 211,000 2018 51,000 Total $ 262,000 Legal Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. |
Concentrations
Concentrations | 12 Months Ended |
Jun. 30, 2016 | |
Concentrations [Text Block] | Note 17 - Concentrations For the year ended June 30, 2016, no customer accounted for more than 10% of total revenue. For the year ended June 30, 2015, one customer represented approximately 14.1% of total revenue. As of June 30, 2016 and 2015, no customer accounted for more than 10% of the total balance of accounts receivable. For the year ended June 30, 2016, no vendor accounted for more than 10% of total purchases. For the year ended ended June 30, 2015, the Company had one vendor that represented approximately 16.4% of total purchases. As of June 30, 2016, one vendor accounted for approximately 10.5% of total balance of accounts payable. As of June 30, 2015, no vendor accounted for more than 10% of the total balance of accounts payable. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Text Block] | Note 18 – Subsequent events On August 20, 2016, the Company granted a total of 106,859 shares of the Company’s restricted stock at $2.89 per share under the 2009 Equity Incentive Plan to a consultant as compensation for the consulting service to be provided. The shares are to vest in two tranches upon achieving certain milestones. On August 20, 2016, the Company granted a total of 100,000 shares of the Company’s restricted stock at $2.89 per share under the 2009 Equity Incentive Plan to two employees as compensation. The shares vested immediately upon the grant. |
Parent Company [Member] | |
Subsequent Events [Text Block] | Note 4 – Subsequent events On August 20, 2016, the Company granted a total of 106,859 shares of the Company’s restricted stock at $2.89 per share under the 2009 Equity Incentive Plan to a consultant as compensation for the consulting service to be provided. The shares are to vest in two tranches upon achieving certain milestones. On August 20, 2016, the Company granted a total of 100,000 shares of the Company’s restricted stock at $2.89 per share under the 2009 Equity Incentive Plan to two employees as compensation. The shares vested immediately upon the grant. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Liquidity [Policy Text Block] | Liquidity In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. The Company engages in the production of advanced construction materials for large scale infrastructure, commercial and residential developments. The Company’s business is capital intensive and the Company is highly leveraged. Debt financing in the form of short term bank loans, loans from related parties and bank acceptance notes, have been utilized to finance the working capital requirements and the capital expenditures of the Company. Due to recurring losses, the Company’s working capital was approximately $16.4 million as of June 30, 2016 as compared to $27.9 million as of June 30, 2015. As of June 30, 2016, cash on-hand balance of approximately $1.0 million and restricted cash balance of approximately $4.1 million with the remaining current assets are mainly composed of accounts receivables, other receivables, and prepayments and advances. Although the Company believes that it can realize its current assets, the Company’s ability to repay its current obligations will depend on the future realization of its current assets. Management had considered the historical experience, the economy, trends in the construction industry, the expected collectability of the accounts and other receivables and the realization of the prepayments on inventory, and provided for an allowance for doubtful accounts as of June 30, 2016. The Company expects to realize the balances net of the allowance within normal operating cycle of twelve months period. If the Company is unable to realize its current assets within the normal operating cycle of twelve months period, the Company may have to consider its available source of funds through the following: • Financial support and credit guarantee commitment from the Company’s majority shareholders (See Note 11 Related party transactions). • Other available sources of financing from the PRC banks and other financial institutions given the Company’s credit history. |
Basis of presentation [Policy Text Block] | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. |
Principles of consolidation [Policy Text Block] | Principles of consolidation The consolidated financial statements reflect the activities of the following subsidiaries and VIEs. All material intercompany transactions have been eliminated. Ownership Subsidiaries and VIEs Place incorporated percentage BVI-ACM British Virgin Island 100% China-ACMH Beijing, China 100% Xin Ao Beijing, China VIE Heng Yuan Zheng Ke Beijing, China VIE Hong Sheng An Beijing, China VIE Heng Tai Beijing, China VIE Da Tong Datong, China VIE Heng Xin Luanxian, China VIE VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIEs. The primary beneficiary is required to consolidate the VIEs for financial reporting purposes. Management makes ongoing assessments of whether China ACM is the primary beneficiary of Xin Ao and its subsidiaries. Based upon a series of contractual arrangements, the Company determined that Xin Ao and its subsidiaries are VIEs subject to consolidation and that China ACM is the primary beneficiary. Accordingly, the accounts of Xin Ao and its subsidiaries are consolidated with those of China ACM. The carrying amount of the VIEs’ assets and liabilities are as follows: June 30, June 30, 2016 2015 Current assets $ 90,518,451 $ 115,628,360 Property, plant and equipment 4,709,794 10,154,170 Other noncurrent assets - 491,100 Total assets 95,228,245 126,273,630 Liabilities (72,579,677 ) (87,520,412 ) Intercompany payables* (7,355,650 ) (8,650,651 ) Total liabilities (79,935,327 ) (96,171,063 ) Net Assets $ 15,292,918 $ 30,102,567 * Payables to China - ACMH and BVI-ACM are eliminated upon consolidation. |
Use of estimates and assumptions [Policy Text Block] | Use of estimates and assumptions The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The significant estimates and assumptions made in the preparation of the Company’s consolidated financial statements include deferred income taxes, allowance for doubtful accounts, deferred stock-based compensation, the fair value and useful lives of property, plant and equipment. Actual results could be materially different from those estimates, upon which the carrying values were based. |
Foreign currency translation [Policy Text Block] | Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of China ACM and BVI-ACM is the U.S. dollar. China-ACMH and its VIEs use their local currency Chinese Renminbi (“RMB”) as their functional currency. In accordance with the US GAAP guidance on Foreign Currency Translation, the Company’s results of operations and cash flows are translated at the average exchange rates during the period, assets and liabilities are translated at the exchange rates at the balance sheet dates, and equity is translated at historical exchange rates. As a result, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Asset and liability accounts at June 30, 2016 and 2015, were translated at RMB6.64 to $1.00 and RMB6.11 to $1.00, respectively. The average translation rates applied to the consolidated statements of operations and comprehensive loss and cash flows for the years ended June 30, 2016 and 2015 were RMB6.43 and RMB6.14 to $1.00, respectively. Translation gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive income. |
Revenue recognition [Policy Text Block] | Revenue recognition Revenue is realized or realizable and earned when four criteria are met: • Persuasive evidence of an arrangement exists (the Company considers its sales contracts and technical service agreements to be pervasive evidence of an arrangement); • Delivery has occurred or services have been rendered; • The seller’s price to the buyer is fixed or determinable; and • Collectability of payment is reasonably assured. The Company sells its concrete products and provides concrete technical services primarily to major local construction companies. Sales agreements are signed with each customer. The agreements list all terms and conditions with the exception of delivery date and quantity, which are evidenced separately in purchase orders. The purchase price of products is fixed in the agreement and customers are not permitted to renegotiate after the contracts have been signed. The agreements include a cancellation clause if the Company or customers breach the contract terms specified in the agreement. The Company recognizes revenue when title and ownership of the goods are transferred upon shipment to the customer or services are provided by the Company and collectability of payment is reasonably assured. The Company includes the shipping and handling fee in both revenue and cost of revenue. |
Financial instruments [Policy Text Block] | Financial instruments The US GAAP accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; Level 3 inputs to the valuation methodology are unobservable. Current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. The carrying value of long-term capital lease obligations approximate their fair value as interest rates approximate the market rate. |
Cash and cash equivalents [Policy Text Block] | Cash and cash equivalents The Company considers all highly liquid investments with the original maturity of three months or less at the date of purchase to be cash equivalents. The Company currently maintains substantially all of its day-to-day operating cash balances with major financial institutions within PRC and US. As of June 30, 2016 and 2015, the Company had deposits in excess of federally insured limits totaling approximately $0.9 million and $2.6 million, respectively. |
Restricted cash [Policy Text Block] | Restricted cash As of June 30, 2016 and 2015, restricted cash consisted of collateral representing cash deposits for short term loans, bank guarantees and notes payable. |
Accounts receivable [Policy Text Block] | Accounts receivable During the normal course of business, the Company extends unsecured credit to its customers. Accounts are considered past due after 30 days. In establishing the required allowance for doubtful accounts, management considers the historical experience, the economy, trends in the construction industry and the expected collectability of the overdue receivables. Management reviews its accounts receivable each reporting period to determine if the allowance for doubtful accounts is adequate. An estimate for doubtful accounts is recorded when collection of the full amount is no longer probable. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovering is considered remote. The Company provides a provision of 15% of allowance for doubtful accounts for accounts receivable balance that are past due more than 180 days but less than one year, 40% of allowance for doubtful accounts for accounts receivable past due from one to two years, 75% of allowance for doubtful accounts for accounts receivable past due beyond two years, 100% of allowance for doubtful accounts for accounts receivable past due beyond three years, plus additional amount as necessary, which the Company’s collection department had determined the collection of the full amount is remote with the approval from the Company’s management to provide 100% provision allowance for doubtful accounts. The Company’s management has continued to evaluate the reasonableness of the valuation allowance policy and update it if necessary. |
Other receivables [Policy Text Block] | Other receivables Other receivables primarily include prepayments to be refunded by our suppliers if the supplies do not meet the Company’s specification need, advances to employees, due from unrelated entities, VAT tax refunds and other deposits. Management regularly reviews the aging of receivables and changes in payment trends and records allowance when management believes collection of amounts due are at risk. Accounts considered uncollectible are written off against the allowance after exhaustive efforts at collection are made. The Company provides a provision of 5% of allowance for doubtful accounts for other receivables balance that are aged within 1 year, 50% of allowance for doubtful accounts for other receivables aged from one to two years, 100% of allowance for doubtful accounts for other receivables aged beyond two years. |
Inventories [Policy Text Block] | Inventories Inventories consist of raw materials and are stated at the lower of cost or market, as determined using the weighted average cost method. Management compares the cost of inventories with the market value and an allowance is made for writing down the inventory to its market value, if lower than cost. As of June 30, 2016 and June 30, 2015, the Company determined that no reserves for obsolescence were necessary. |
Short term investments [Policy Text Block] | Short term investments The Company entered into an investment agreement with a financial investment company in April 2015. The agreement allows the Company to invest up to RMB100 million ($16.4 million) for maximum periods of two years. The Company can redeem the investment at any time within the agreed period upon 30 -day notice. The financial investment company invests the Company’s funds in certain financial instruments including bonds, mortgage trust or mutual funds. The rates of return on these investments were estimated to be approximately at 10% per annum by such a financial investment company. As of June 30, 2016 the Company did not experience gain or loss on the redemption of its investment and all of the investments were returned to the Company. |
Prepayments and advances [Policy Text Block] | Prepayments and advances Prepayments are monies deposited or advanced to outside vendors for future inventory purchases. As a standard practice in China, many of the Company’s vendors require a certain amount to be deposited with them as a guarantee that the Company will complete its purchases on a timely basis. This amount is refundable and bears no interest. The Company has legally binding contracts with its vendors, which require any outstanding prepayments to be returned to the Company when the contract ends. |
Property, plant and equipment [Policy Text Block] | Property, plant and equipment Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred while additions, renewals and improvements are capitalized. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method with 5% residual value. Leasehold improvements are amortized over the lesser of estimated useful lives or lease terms, as appropriate. The estimated useful lives of assets are as follows: Useful life Transportation equipment 7 - 10 years Plant and machinery 10 years Office equipment 5 years Buildings and improvements 3 - 20 years |
Accounting for long-lived assets [Policy Text Block] | Accounting for long-lived assets The Company classifies its long-lived assets into: (i) machinery and equipment; (ii) transportation equipment, (iii) office and equipment; and (iv) buildings and improvements. |
Advances on equipment purchases, net [Policy Text Block] | Advances on equipment purchases, net The Company advances monies to a supplier for equipment purchase. These advances are interest free and unsecured. The Company has made advances to a supplier to construct specialized equipment to expand its operation into construction material recycling. However, the Company did not finalize its plan on whether to continue to pursue such business while its supplier cannot refund the advances due to the unique specification. As a result, for each of the years ended June 30, 2016 and 2015, the Company recorded a bad debt allowance for advances on equipment purchases for approximately $1.1 million and $1.2 million, respectively. Management is still making efforts to collect partially or negotiate with the supplier for some other alternative solutions to minimize the Company’s loss. However, as management believes the collection of the full payment are remote, management has written-off the full balance of the advances on equipment purchase against the allowance for doubtful account during the year ended June 30, 2016. |
Stock-based compensation [Policy Text Block] | Stock-based compensation The Company records stock-based compensation expense at fair value on the grant date and recognizes the expense over the employee's requisite service period. Unrecognized expense is deferred and included in the consolidated balance sheets, and amortized over the remaining requisite service period. The Company’s expected volatility assumption is based on the historical volatility of Company’s stock or the expected volatility of similar entities. The expected life assumption is primarily based on historical exercise patterns and employee post-vesting termination behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based on the Company’s current and expected dividend policy. |
Income taxes [Policy Text Block] | Income taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the assets and liability method of accounting for income taxes. Under the assets and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forward. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. |
Value Added Tax [Policy Text Block] | Value Added Tax Enterprises or individuals, who sell commodities, engage in repair and maintenance, or import and export goods in the PRC are subject to a value added tax. The standard VAT rate was 6% of gross sales for the Company’s industry, which was reduced to 3% of gross sales on July 1, 2014. Due to the fact that the Company uses recycled raw materials to manufacture its products, the State Administration of Taxation granted the Company a VAT tax exemption, which expired in June 2015. From July 2015 going forward, the Company is subject to VAT at the reduced rate of 3% of the gross sales price. |
Research and development and repair and maintenance [Policy Text Block] | Research and development and repair and maintenance Research and development, and repair and maintenance costs are expensed as incurred. The cost of materials and equipment that are acquired or constructed for research and development activities, and have alternative future uses, either in research and development, marketing, or sales, are classified as property and equipment, and depreciated over their estimated useful lives. Research and development costs for the years ended June 30, 2016 and 2015 were approximately $0.7 million and $1.1 million, respectively. Repair and maintenance costs for the years ended June 30, 2016 and 2015 were approximately $0.6 million and $0.2 million, respectively. |
Earnings (loss) per share [Policy Text Block] | Earnings (loss) per share The Company reports earnings (loss) per share in accordance with the US GAAP, which requires presentation of basic and diluted earnings (loss) per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings (loss) per share excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts, such as warrants, options, restricted stock based grants and convertible preferred stock, to issue common stock were exercised and converted into common stock. Common stock equivalents having an anti-dilutive effect on earnings per share are excluded from the calculation of diluted earnings per share. Diluted loss per share is the same as basic loss per share since the addition of any contingently issuable shares would be anti-dilutive. Stock dividends or stock splits be accounted for retroactively if the stock dividends or stock splits occur during the period, or retroactively if the stock dividends or stock splits occur after the end of the period but before the release of the financial statements, by considering it outstanding of the entirety of each period presented. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. |
Comprehensive income [Policy Text Block] | Comprehensive income Comprehensive income consists of net income and foreign currency translation adjustments. |
Recent Accounting Pronouncements [Policy Text Block] | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 Amendments to the ASC 842 Leases. This update requires lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within a twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. In April 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Management is evaluating the effect, if any, on the Company’s consolidated financial statements. |
Reclassifications [Policy Text Block] | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on the accompanying consolidated statements of operations and cash flows. |
Summary of significant accoun28
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Ownership of Subsidiaries and VIE's [Table Text Block] | Ownership Subsidiaries and VIEs Place incorporated percentage BVI-ACM British Virgin Island 100% China-ACMH Beijing, China 100% Xin Ao Beijing, China VIE Heng Yuan Zheng Ke Beijing, China VIE Hong Sheng An Beijing, China VIE Heng Tai Beijing, China VIE Da Tong Datong, China VIE Heng Xin Luanxian, China VIE |
Schedule of carrying amount of the VIE's assets and liabilities [Table Text Block] | June 30, June 30, 2016 2015 Current assets $ 90,518,451 $ 115,628,360 Property, plant and equipment 4,709,794 10,154,170 Other noncurrent assets - 491,100 Total assets 95,228,245 126,273,630 Liabilities (72,579,677 ) (87,520,412 ) Intercompany payables* (7,355,650 ) (8,650,651 ) Total liabilities (79,935,327 ) (96,171,063 ) Net Assets $ 15,292,918 $ 30,102,567 |
Schedule of Estimated Useful Lives of Assets [Table Text Block] | Useful life Transportation equipment 7 - 10 years Plant and machinery 10 years Office equipment 5 years Buildings and improvements 3 - 20 years |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, June 30, 2016 2015 Accounts receivable $ 51,812,683 $ 68,566,418 Less: Allowance for doubtful accounts (11,524,131 ) (28,209,249 ) Total accounts receivable, net $ 40,288,552 $ 40,357,169 |
Schedule of Allowance for Doubtful Accounts [Table Text Block] | June 30, 2016 June 30, 2015 Beginning balance $ 28,209,249 $ 31,667,803 Provision for (recovery of) doubtful accounts 2,591,465 (4,034,039 ) Less: write-off (17,482,713 ) (66,839 ) Exchange rate effect (1,793,870 ) 643,324 Ending balance $ 11,524,131 $ 28,209,249 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Inventory, Current [Table Text Block] | June 30, June 30, 2016 2015 Raw materials $ 1,023,471 $ 1,416,664 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Other Receivables and Allowance for Doubtful Accounts [Table Text Block] | June 30, June 30, 2016 2015 Other receivables, current $ 7,742,057 $ 3,483,549 Less: Allowance for doubtful accounts, current (2,334,672 ) (2,403,362 ) Other receivables - current, net 5,407,385 1,080,187 Other receivable from sale of net assets 1,685,645 - $ 7,093,030 $ 1,087,187 |
Schedule of Movement of Allowance for Doubtful Accounts [Table Text Block] | June 30, 2016 June 30, 2015 Beginning balance $ 2,403,362 $ 2,810,887 Provision for (recovery of) doubtful accounts 129,212 - Less: write-off - (426,189 ) Exchange rate effect (197,902 ) 18,664 Ending balance $ 2,334,672 $ 2,403,362 |
Schedule of other receivable from determination of lease as of the disposal date, the book value of the net assets [Table Text Block] | Total consideration $ 1,685,645 Asset Group Accounts receivable 4,906,752 Inventories 337,873 Property plant and equipment 430,497 Prepaid 46,725 Accounts payable (2,865,550 ) Other payables (796,220 ) Total of Asset Group 2,060,077 Total loss from sale of Asset Group (374,432 ) Exchange rate effect (12,474 ) Total loss from sale of Asset Group $ (386,906 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Property, Plant and Equipment [Table Text Block] | June 30, June 30, 2016 2015 Machinery and equipment $ 754,997 $ 2,363,324 Transportation equipment 4,299,862 1,030,710 Leased equipment - 11,287,442 * Office equipment 1,172,059 1,305,992 Buildings and improvements 314,909 393,205 Total 6,541,827 16,380,673 Less: Accumulated depreciation (1,832,033 ) (6,224,825 ) Plant and equipment, net $ 4,709,794 $ 10,155,848 |
Prepayments and advances (Table
Prepayments and advances (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | June 30, June 30, 2016 2015 Advances on inventory purchases $ 37,209,699 $ 51,979,493 Deferred stock-based compensation - 498,604 Total prepayments and advances $ 37,209,699 $ 52,478,097 |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Short-term Debt [Table Text Block] | June 30, June 30, 2016 2015 Loans from China Construction Bank, each with an interest rate from 4.35% per 12,404,320 5,729,500 Loan from Bank of Beijing, interest rate at 5.66% per annum, due March, 2017, 4,515,120 4,911,000 Loan from Citic Bank, interest rate at 7.80% per annum; guaranteed by Beijing - 3,274,000 $ 16,555,440 $ 13,914,500 |
Schedule of Bank guarantees [Table Text Block] | June 30, June 30, 2016 2015 Bank guarantees due to China Construction Bank, guaranteed by Beijing Jinshengding Mineral Products Co., LTD, and Mr. Xianfu Han, a related party. The guarantees were repaid in full in November 2015. $ - $ 12,441,200 |
Capital lease obligations (Tabl
Capital lease obligations (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Capital lease obligations [Table Text Block] | June 30, June 30, 2016 2015 Lease obligations for concrete pump trucks, paid off in February 2016 $ - $ 1,152,950 Lease obligations for concrete mixer trucks, paid off in September 2015 - 95,420 Lease obligations for concrete mixer, paid off in February 2016 - 266,757 Total - 1,515,127 Less: Deferred interest - (25,743 ) - 1,489,384 Less: Capital lease obligations - current - (1,489,384 ) Capital lease obligations - non current $ - $ - |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Related Party Transactions [Table Text Block] | June 30, June 30, 2016 2015 Xianfu Han $ 715,086 $ 315,762 Weili He 776,039 367,916 $ 1,491,125 $ 683,678 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Years ended June 30, 2016 2015 USA and BVI $ (1,556,270 ) $ (1,603,513 ) China (12,504,769 ) (1,460,243 ) $ (14,061,039 ) $ (3,063,756 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended June 30, 2016 2015 Current provision: USA $ - $ - China (23 ) (335,869 ) Total current provision (23 ) (335,869 ) Deferred provision: USA - - China (1,744,952 ) (764,487 ) Total deferred provision (1,744,952 ) (764,487 ) Total provision for income taxes $ (1,744,975 ) $ (1,100,356 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | June 30, June 30, 2016 2015 Deferred tax assets Allowance for doubtful accounts $ 5,169,993 $ 4,591,891 Impairment loss of long-lived assets 393,673 - Net operating loss carryforward in China 975,894 - Net operating loss carryforward in the U.S. 217,020 309,393 Valuation allowance (6,756,580 ) (3,064,527 ) Total deferred tax assets - current $ - $ 1,836,757 |
Schedule of Changes to Valuation Allowance for Deferred Tax Assets [Table Text Block] | Valuation Allowance For deferred tax assets As of June 30, 2015 $ 3,064,527 Allowance for doubtful accounts 2,414,859 Impairment loss of long-lived assets 393,673 Change in net operating loss carry forward in China 975,894 Change in net operating loss carry forward in U.S. (92,373 ) As of June 30, 2016 $ 6,756,580 |
Schedule of Taxes Payable [Table Text Block] | June 30, June 30, 2016 2015 Other taxes payable $ 95,708 $ 12,859 |
Schedule of reconciles the U.S. statutory rates to the Companys effective tax rate [Table Text Block] | June 30, June 30, 2016 2015 U.S. statutory rates 34% 34% Foreign income not recognized in the U.S. ( 34% ) ( 34% ) PRC statutory rates 25% 25% Preferential tax treatment ( 10% ) ( 10% ) Change in valuation allowance ( 27% ) 2% Non-deductible PRC expenses* - ( 32% ) Other** - ( 22% ) Effective income tax rates ( 12% ) ( 37% ) |
Shareholders equity (Tables)
Shareholders equity (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of the summary of Restricted stock grants [Table Text Block] | Weighted Average Aggregate Grant Date Intrinsic Restricted stock grants Shares Fair Value Per Share Value Nonvested as of June 30, 2014 - $ - $ - Granted 251,875 4.02 1,013,413 Vested (76,875 ) 4.17 320,663 Nonvested as of June 30, 2015 175,000 $ 3.96 $ 692,750 Vested (175,000 ) 3.96 692,750 Nonvested as of June 30, 2016 - $ - $ - |
Parent Company [Member] | |
Schedule of the summary of Restricted stock grants [Table Text Block] | Weighted Average Aggregate Grant Date Intrinsic Restricted stock grants Shares Fair Value Per Share Value Nonvested as of June 30, 2014 - $ - $ - Granted 251,875 4.02 1,013,413 Vested (76,875 ) 4.17 320,663 Nonvested as of June 30, 2015 175,000 $ 3.96 $ 692,750 Vested (175,000) 3.96 692,750 Nonvested as of June 30, 2016 - $ - $ - |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Schedule of Future annual lease payments [Table Text Block] | Twelve months ending June 30, Amount 2017 $ 211,000 2018 51,000 Total $ 262,000 |
Organization and description 40
Organization and description of business (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Organization And Description Of Business 1 | 100.00% |
Summary of significant accoun41
Summary of significant accounting policies (Narrative) (Details) - 12 months ended Jun. 30, 2016 | USD ($)yrd | CNY (¥)yrd |
Summary Of Significant Accounting Policies 1 | $ 16,400,000 | |
Summary Of Significant Accounting Policies 2 | 27,900,000 | |
Summary Of Significant Accounting Policies 3 | 1,000,000 | |
Summary Of Significant Accounting Policies 4 | 4,100,000 | |
Summary Of Significant Accounting Policies 5 | ¥ | ¥ 6.64 | |
Summary Of Significant Accounting Policies 6 | 1 | |
Summary Of Significant Accounting Policies 7 | ¥ | 6.11 | |
Summary Of Significant Accounting Policies 8 | 1 | |
Summary Of Significant Accounting Policies 9 | ¥ | 6.43 | |
Summary Of Significant Accounting Policies 10 | ¥ | ¥ 6.14 | |
Summary Of Significant Accounting Policies 11 | 1 | |
Summary Of Significant Accounting Policies 12 | 900,000 | |
Summary Of Significant Accounting Policies 13 | $ 2,600,000 | |
Summary Of Significant Accounting Policies 14 | d | 30 | 30 |
Summary Of Significant Accounting Policies 15 | 15.00% | 15.00% |
Summary Of Significant Accounting Policies 16 | d | 180 | 180 |
Summary Of Significant Accounting Policies 17 | 40.00% | 40.00% |
Summary Of Significant Accounting Policies 18 | 75.00% | 75.00% |
Summary Of Significant Accounting Policies 19 | 100.00% | 100.00% |
Summary Of Significant Accounting Policies 20 | 100.00% | 100.00% |
Summary Of Significant Accounting Policies 21 | 5.00% | 5.00% |
Summary Of Significant Accounting Policies 22 | yr | 1 | 1 |
Summary Of Significant Accounting Policies 23 | 50.00% | 50.00% |
Summary Of Significant Accounting Policies 24 | 100.00% | 100.00% |
Summary Of Significant Accounting Policies 25 | ¥ | ¥ 100,000,000 | |
Summary Of Significant Accounting Policies 26 | $ 16,400,000 | |
Summary Of Significant Accounting Policies 27 | 30 | 30 |
Summary Of Significant Accounting Policies 28 | 10.00% | 10.00% |
Summary Of Significant Accounting Policies 29 | 5.00% | 5.00% |
Summary Of Significant Accounting Policies 30 | $ 2,600,000 | |
Summary Of Significant Accounting Policies 31 | 1,100,000 | |
Summary Of Significant Accounting Policies 32 | $ 1,200,000 | |
Summary Of Significant Accounting Policies 33 | 50.00% | 50.00% |
Summary Of Significant Accounting Policies 34 | 6.00% | 6.00% |
Summary Of Significant Accounting Policies 35 | 3.00% | 3.00% |
Summary Of Significant Accounting Policies 36 | 3.00% | 3.00% |
Summary Of Significant Accounting Policies 37 | $ 700,000 | |
Summary Of Significant Accounting Policies 38 | 1,100,000 | |
Summary Of Significant Accounting Policies 39 | 600,000 | |
Summary Of Significant Accounting Policies 40 | $ 200,000 |
Supplemental disclosure of ca42
Supplemental disclosure of cash flow information (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Supplemental Disclosure Of Cash Flow Information 1 | $ 800,000 |
Supplemental Disclosure Of Cash Flow Information 2 | 1,400,000 |
Supplemental Disclosure Of Cash Flow Information 3 | 0 |
Supplemental Disclosure Of Cash Flow Information 4 | 500,000 |
Supplemental Disclosure Of Cash Flow Information 5 | 700,000 |
Supplemental Disclosure Of Cash Flow Information 6 | 200,000 |
Supplemental Disclosure Of Cash Flow Information 7 | 1,700,000 |
Supplemental Disclosure Of Cash Flow Information 8 | 2,000,000 |
Supplemental Disclosure Of Cash Flow Information 9 | 800,000 |
Supplemental Disclosure Of Cash Flow Information 10 | 2,400,000 |
Supplemental Disclosure Of Cash Flow Information 11 | 900,000 |
Supplemental Disclosure Of Cash Flow Information 12 | 20,100,000 |
Supplemental Disclosure Of Cash Flow Information 13 | $ 5,400,000 |
Other receivables (Narrative) (
Other receivables (Narrative) (Details) - 12 months ended Jun. 30, 2016 $ in Millions | USD ($) | CNY (¥) |
Other Receivables 1 | ¥ | ¥ 13,700,000 | |
Other Receivables 2 | $ 2.1 | |
Other Receivables 3 | ¥ | 11,200,000 | |
Other Receivables 4 | 1.7 | |
Other Receivables 5 | 0.4 | |
Other Receivables 6 | ¥ | 3,000,000 | |
Other Receivables 7 | 0.5 | |
Other Receivables 8 | ¥ | ¥ 8,200,000 | |
Other Receivables 9 | 1.2 | |
Other Receivables 10 | $ 0.4 |
Property, plant and equipment44
Property, plant and equipment (Narrative) (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Property, Plant And Equipment 1 | $ 2.6 |
Property, Plant And Equipment 2 | 2 |
Property, Plant And Equipment 3 | 2.1 |
Property, Plant And Equipment 4 | 1.5 |
Property, Plant And Equipment 5 | $ 1.5 |
Credit Facilities (Narrative) (
Credit Facilities (Narrative) (Details) - 12 months ended Jun. 30, 2016 ¥ in Millions | USD ($) | CNY (¥) |
Credit Facilities 1 | $ 800,000 | |
Credit Facilities 2 | 1,400,000 | |
Credit Facilities 3 | 22,000 | |
Credit Facilities 4 | 2,600,000 | |
Credit Facilities 5 | 18,100,000 | |
Credit Facilities 6 | ¥ | ¥ 120 | |
Credit Facilities 7 | 30,500,000 | |
Credit Facilities 8 | ¥ | ¥ 187 | |
Credit Facilities 9 | 4,100,000 | |
Credit Facilities 10 | $ 8,500,000 |
Capital lease obligations (Narr
Capital lease obligations (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Capital Lease Obligations 1 | $ 25,000 |
Capital Lease Obligations 2 | $ 200,000 |
Related party transactions (Nar
Related party transactions (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016shares | |
Related Party Transactions 1 | 174,865 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes 1 | $ 600,000 |
Income Taxes 2 | 100.00% |
Income Taxes 3 | $ 200,000 |
Income Taxes 4 | 300,000 |
Income Taxes 5 | 0 |
Income Taxes 6 | 15,300,000 |
Income Taxes 7 | $ 1,000,000 |
Income Taxes 8 | 25.00% |
Income Taxes 9 | 25.00% |
Income Taxes 10 | 15.00% |
Income Taxes 11 | 10.00% |
Income Taxes 12 | $ 2,800,000 |
Income Taxes 13 | 2,400,000 |
Income Taxes 14 | 400,000 |
Income Taxes 15 | $ 1,000,000 |
Income Taxes 16 | 100.00% |
Income Taxes 17 | $ 6,500,000 |
Income Taxes 18 | 200,000 |
Income Taxes 19 | $ 300,000 |
Restricted net assets (Narrativ
Restricted net assets (Narrative) (Details) - Parent Company [Member] | 12 Months Ended |
Jun. 30, 2016 | |
Restricted Net Assets 1 | 25.00% |
Restricted Net Assets 2 | 25.00% |
Shareholders equity (Narrative)
Shareholders equity (Narrative) (Details) - 12 months ended Jun. 30, 2016 | USD ($)$ / sharesshares | CNY (¥)shares |
Shareholders Equity 1 | 150,000 | 150,000 |
Shareholders Equity 2 | $ | $ 625,500 | |
Shareholders Equity 3 | 13 | 13 |
Shareholders Equity 4 | 1,875 | 1,875 |
Shareholders Equity 5 | 100,000 | 100,000 |
Shareholders Equity 6 | $ | $ 380,000 | |
Shareholders Equity 7 | 200,000 | 200,000 |
Shareholders Equity 8 | 200,000 | 200,000 |
Shareholders Equity 9 | $ | $ 500,000 | |
Shareholders Equity 10 | $ | $ 500,000 | |
Shareholders Equity 11 | 174,865 | 174,865 |
Shareholders Equity 12 | 280,000 | 280,000 |
Shareholders Equity 13 | 65,102 | 65,102 |
Shareholders Equity 14 | $ / shares | $ 4.99 | |
Shareholders Equity 15 | $ | $ 324,860 | |
Shareholders Equity 16 | ¥ | ¥ 2,000,000 | |
Shareholders Equity 17 | 202,086 | 202,086 |
Shareholders Equity 18 | $ / shares | $ 4.17 | |
Shareholders Equity 19 | $ | $ 842,692 | |
Shareholders Equity 20 | ¥ | ¥ 5,200,000 | |
Parent Company [Member] | ||
Shareholders Equity 1 | 150,000 | 150,000 |
Shareholders Equity 2 | $ | $ 625,500 | |
Shareholders Equity 3 | 13 | 13 |
Shareholders Equity 4 | 1,875 | 1,875 |
Shareholders Equity 5 | 100,000 | 100,000 |
Shareholders Equity 6 | $ | $ 380,000 | |
Shareholders Equity 7 | 200,000 | 200,000 |
Shareholders Equity 8 | 200,000 | 200,000 |
Shareholders Equity 9 | $ | $ 500,000 | |
Shareholders Equity 10 | $ | $ 500,000 | |
Shareholders Equity 11 | 174,865 | 174,865 |
Shareholders Equity 12 | 280,000 | 280,000 |
Shareholders Equity 13 | 65,102 | 65,102 |
Shareholders Equity 14 | $ / shares | $ 4.99 | |
Shareholders Equity 15 | $ | $ 324,860 | |
Shareholders Equity 16 | ¥ | ¥ 2,000,000 | |
Shareholders Equity 17 | 202,086 | 202,086 |
Shareholders Equity 18 | $ / shares | $ 4.17 | |
Shareholders Equity 19 | $ | $ 842,692 | |
Shareholders Equity 20 | ¥ | ¥ 5,200,000 |
Reserves and dividends (Narrati
Reserves and dividends (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Reserves And Dividends 1 | 10.00% |
Reserves And Dividends 2 | 50.00% |
Reserves And Dividends 3 | 50.00% |
Reserves And Dividends 4 | $ 1,900,000 |
Reserves And Dividends 5 | $ 2,100,000 |
Reserves And Dividends 6 | 25.00% |
Employee post-retirement bene52
Employee post-retirement benefits (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Employee Post-retirement Benefits 1 | 20.00% |
Employee Post-retirement Benefits 2 | 8.00% |
Employee Post-retirement Benefits 3 | $ 700,000 |
Employee Post-retirement Benefits 4 | $ 1,000,000 |
Commitments and contingencies53
Commitments and contingencies (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments And Contingencies 1 | $ 203,000 |
Commitments And Contingencies 2 | 25,000 |
Commitments And Contingencies 3 | 600,000 |
Commitments And Contingencies 4 | $ 1,600,000 |
Concentrations (Narrative) (Det
Concentrations (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Concentrations 1 | 10.00% |
Concentrations 2 | 14.10% |
Concentrations 3 | 10.00% |
Concentrations 4 | 10.00% |
Concentrations 5 | 16.40% |
Concentrations 6 | 10.50% |
Concentrations 7 | 10.00% |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Subsequent Events 1 | shares | 106,859 |
Subsequent Events 2 | $ / shares | $ 2.89 |
Subsequent Events 3 | shares | 100,000 |
Subsequent Events 4 | $ / shares | $ 2.89 |
Parent Company [Member] | |
Subsequent Events 1 | shares | 106,859 |
Subsequent Events 2 | $ / shares | $ 2.89 |
Subsequent Events 3 | shares | 100,000 |
Subsequent Events 4 | $ / shares | $ 2.89 |
Schedule of Ownership of Subsid
Schedule of Ownership of Subsidiaries and VIE's (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 1 | 100.00% |
Summary Of Significant Accounting Policies Schedule Of Ownership Of Subsidiaries And Vie's 2 | 100.00% |
Schedule of carrying amount of
Schedule of carrying amount of the VIE's assets and liabilities (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 1 | $ 90,518,451 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 2 | 115,628,360 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 3 | 4,709,794 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 4 | 10,154,170 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 5 | 0 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 6 | 491,100 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 7 | 95,228,245 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 8 | 126,273,630 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 9 | (72,579,677) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 10 | (87,520,412) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 11 | (7,355,650) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 12 | (8,650,651) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 13 | (79,935,327) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 14 | (96,171,063) |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 15 | 15,292,918 |
Summary Of Significant Accounting Policies Schedule Of Carrying Amount Of The Vie's Assets And Liabilities 16 | $ 30,102,567 |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Jun. 30, 2016USD ($)yr | |
Summary Of Significant Accounting Policies Schedule Of Property, Plant And Equipment 1 | $ | $ 7 |
Summary Of Significant Accounting Policies Schedule Of Property, Plant And Equipment 2 | 10 |
Summary Of Significant Accounting Policies Schedule Of Property, Plant And Equipment 3 | 10 |
Summary Of Significant Accounting Policies Schedule Of Property, Plant And Equipment 4 | 5 |
Summary Of Significant Accounting Policies Schedule Of Property, Plant And Equipment 5 | $ | $ 3 |
Summary Of Significant Accounting Policies Schedule Of Property, Plant And Equipment 6 | 20 |
Schedule of Accounts, Notes, Lo
Schedule of Accounts, Notes, Loans and Financing Receivable (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 1 | $ 51,812,683 |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 2 | 68,566,418 |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 3 | (11,524,131) |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 4 | (28,209,249) |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 5 | 40,288,552 |
Accounts Receivable, Net Schedule Of Accounts, Notes, Loans And Financing Receivable 6 | $ 40,357,169 |
Schedule of Allowance for Doubt
Schedule of Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 1 | $ 28,209,249 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 2 | 31,667,803 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 3 | 2,591,465 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 4 | (4,034,039) |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 5 | (17,482,713) |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 6 | (66,839) |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 7 | (1,793,870) |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 8 | 643,324 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 9 | 11,524,131 |
Accounts Receivable, Net Schedule Of Allowance For Doubtful Accounts 10 | $ 28,209,249 |
Schedule of Inventory, Current
Schedule of Inventory, Current (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Inventory Schedule Of Inventory, Current 1 | $ 1,023,471 |
Inventory Schedule Of Inventory, Current 2 | $ 1,416,664 |
Schedule of Other Receivables a
Schedule of Other Receivables and Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 1 | $ 7,742,057 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 2 | 3,483,549 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 3 | (2,334,672) |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 4 | (2,403,362) |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 5 | 5,407,385 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 6 | 1,080,187 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 7 | 1,685,645 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 8 | 0 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 9 | 7,093,030 |
Other Receivables Schedule Of Other Receivables And Allowance For Doubtful Accounts 10 | $ 1,087,187 |
Schedule of Movement of Allowan
Schedule of Movement of Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 1 | $ 2,403,362 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 2 | 2,810,887 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 3 | 129,212 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 4 | 0 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 5 | 0 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 6 | (426,189) |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 7 | (197,902) |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 8 | 18,664 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 9 | 2,334,672 |
Other Receivables Schedule Of Movement Of Allowance For Doubtful Accounts 10 | $ 2,403,362 |
Schedule of other receivable fr
Schedule of other receivable from determination of lease as of the disposal date, the book value of the net assets (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 1 | $ 1,685,645 |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 2 | 4,906,752 |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 3 | 337,873 |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 4 | 430,497 |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 5 | 46,725 |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 6 | (2,865,550) |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 7 | (796,220) |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 8 | 2,060,077 |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 9 | (374,432) |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 10 | (12,474) |
Other Receivables Schedule Of Other Receivable From Determination Of Lease As Of The Disposal Date, The Book Value Of The Net Assets 11 | $ (386,906) |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 1 | $ 754,997 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 2 | 2,363,324 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 3 | 4,299,862 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 4 | 1,030,710 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 5 | 0 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 6 | 11,287,442 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 7 | 1,172,059 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 8 | 1,305,992 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 9 | 314,909 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 10 | 393,205 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 11 | 6,541,827 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 12 | 16,380,673 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 13 | (1,832,033) |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 14 | (6,224,825) |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 15 | 4,709,794 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 16 | $ 10,155,848 |
Schedule of Deferred Costs, Cap
Schedule of Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Prepayments And Advances Schedule Of Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure 1 | $ 37,209,699 |
Prepayments And Advances Schedule Of Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure 2 | 51,979,493 |
Prepayments And Advances Schedule Of Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure 3 | 0 |
Prepayments And Advances Schedule Of Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure 4 | 498,604 |
Prepayments And Advances Schedule Of Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure 5 | 37,209,699 |
Prepayments And Advances Schedule Of Deferred Costs, Capitalized, Prepaid, And Other Assets Disclosure 6 | $ 52,478,097 |
Schedule of Short-term Debt (De
Schedule of Short-term Debt (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Credit Facilities Schedule Of Short-term Debt 1 | 4.35% |
Credit Facilities Schedule Of Short-term Debt 2 | $ 3,010,080 |
Credit Facilities Schedule Of Short-term Debt 3 | 12,404,320 |
Credit Facilities Schedule Of Short-term Debt 4 | $ 5,729,500 |
Credit Facilities Schedule Of Short-term Debt 5 | 5.66% |
Credit Facilities Schedule Of Short-term Debt 6 | $ 4,515,120 |
Credit Facilities Schedule Of Short-term Debt 7 | $ 4,911,000 |
Credit Facilities Schedule Of Short-term Debt 8 | 7.80% |
Credit Facilities Schedule Of Short-term Debt 9 | $ 0 |
Credit Facilities Schedule Of Short-term Debt 10 | 3,274,000 |
Credit Facilities Schedule Of Short-term Debt 11 | 16,555,440 |
Credit Facilities Schedule Of Short-term Debt 12 | $ 13,914,500 |
Schedule of Bank guarantees (De
Schedule of Bank guarantees (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Credit Facilities Schedule Of Bank Guarantees 1 | $ 0 |
Credit Facilities Schedule Of Bank Guarantees 2 | $ 12,441,200 |
Schedule of Capital lease oblig
Schedule of Capital lease obligations (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Capital Lease Obligations Schedule Of Capital Lease Obligations 1 | $ 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 2 | 1,152,950 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 3 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 4 | 95,420 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 5 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 6 | 266,757 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 7 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 8 | 1,515,127 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 9 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 10 | (25,743) |
Capital Lease Obligations Schedule Of Capital Lease Obligations 11 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 12 | 1,489,384 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 13 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 14 | (1,489,384) |
Capital Lease Obligations Schedule Of Capital Lease Obligations 15 | 0 |
Capital Lease Obligations Schedule Of Capital Lease Obligations 16 | $ 0 |
Schedule of Related Party Trans
Schedule of Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Related Party Transactions Schedule Of Related Party Transactions 1 | $ 715,086 |
Related Party Transactions Schedule Of Related Party Transactions 2 | 315,762 |
Related Party Transactions Schedule Of Related Party Transactions 3 | 776,039 |
Related Party Transactions Schedule Of Related Party Transactions 4 | 367,916 |
Related Party Transactions Schedule Of Related Party Transactions 5 | 1,491,125 |
Related Party Transactions Schedule Of Related Party Transactions 6 | $ 683,678 |
Schedule of Income before Incom
Schedule of Income before Income Tax, Domestic and Foreign (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 1 | $ (1,556,270) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 2 | (1,603,513) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 3 | (12,504,769) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 4 | (1,460,243) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 5 | (14,061,039) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 6 | $ (3,063,756) |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 1 | $ 0 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 2 | 0 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 3 | (23) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 4 | (335,869) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 5 | (23) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 6 | (335,869) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 7 | 0 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 8 | 0 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 9 | (1,744,952) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 10 | (764,487) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 11 | (1,744,952) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 12 | (764,487) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 13 | (1,744,975) |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 14 | $ (1,100,356) |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 1 | $ 5,169,993 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 2 | 4,591,891 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 3 | 393,673 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 4 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 5 | 975,894 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 6 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 7 | 217,020 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 8 | 309,393 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 9 | (6,756,580) |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 10 | (3,064,527) |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 11 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 12 | $ 1,836,757 |
Schedule of Changes to Valuatio
Schedule of Changes to Valuation Allowance for Deferred Tax Assets (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Changes To Valuation Allowance For Deferred Tax Assets 1 | $ 3,064,527 |
Income Taxes Schedule Of Changes To Valuation Allowance For Deferred Tax Assets 2 | 2,414,859 |
Income Taxes Schedule Of Changes To Valuation Allowance For Deferred Tax Assets 3 | 393,673 |
Income Taxes Schedule Of Changes To Valuation Allowance For Deferred Tax Assets 4 | 975,894 |
Income Taxes Schedule Of Changes To Valuation Allowance For Deferred Tax Assets 5 | (92,373) |
Income Taxes Schedule Of Changes To Valuation Allowance For Deferred Tax Assets 6 | $ 6,756,580 |
Schedule of Taxes Payable (Deta
Schedule of Taxes Payable (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Taxes Payable 1 | $ 95,708 |
Income Taxes Schedule Of Taxes Payable 2 | $ 12,859 |
Schedule of reconciles the U.S.
Schedule of reconciles the U.S. statutory rates to the Companys effective tax rate (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 1 | 34.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 2 | 34.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 3 | 34.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 4 | 34.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 5 | 25.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 6 | 25.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 7 | 10.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 8 | 10.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 9 | 27.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 10 | 2.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 11 | $ 0 |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 12 | 32.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 13 | $ 0 |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 14 | 22.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 15 | 12.00% |
Income Taxes Schedule Of Reconciles The U.s. Statutory Rates To The Companys Effective Tax Rate 16 | 37.00% |
Schedule of the summary of Rest
Schedule of the summary of Restricted stock grants (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 1 | $ 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 2 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 3 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 4 | $ 251,875 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 5 | 4.02 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 6 | $ 1,013,413 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 7 | $ (76,875) |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 8 | 4.17 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 9 | $ 320,663 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 10 | $ 175,000 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 11 | 3.96 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 12 | $ 692,750 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 13 | $ (175,000) |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 14 | 3.96 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 15 | $ 692,750 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 16 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 17 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 18 | 0 |
Parent Company [Member] | |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 1 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 2 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 3 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 4 | $ 251,875 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 5 | 4.02 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 6 | $ 1,013,413 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 7 | $ (76,875) |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 8 | 4.17 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 9 | $ 320,663 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 10 | $ 175,000 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 11 | 3.96 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 12 | $ 692,750 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 13 | $ (175,000) |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 14 | 3.96 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 15 | $ 692,750 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 16 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 17 | 0 |
Shareholders Equity Schedule Of The Summary Of Restricted Stock Grants 18 | $ 0 |
Schedule of Future annual lease
Schedule of Future annual lease payments (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 1 | $ 211,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 2 | 51,000 |
Commitments And Contingencies Schedule Of Future Annual Lease Payments 3 | $ 262,000 |