Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2021shares | |
Document Information [Line Items] | |
Entity Registrant Name | Recon Technology, Ltd |
Entity Central Index Key | 0001442620 |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2021 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Trading Symbol | RCON |
Title of 12(b) Security | Class A Ordinary Shares, $0.0925 par value per share |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 26,868,391 |
Document Registration Statement | false |
Entity File Number | 001-34409 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Room 601, No. 1 Shui’an South Street |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100012 |
Entity Address, Country | CN |
Document Transition Report | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | Room 601, No. 1 Shui’an South Street |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100012 |
Entity Address, Country | CN |
City Area Code | +86 |
Local Phone Number | (10) 8494 5799 |
Contact Personnel Name | Liu Jia |
Contact Personnel Email Address | liujia@recon.cn |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Current assets | |||
Cash | ¥ 343,998,570 | $ 53,268,248 | ¥ 30,336,504 |
Notes receivable | 6,305,633 | 976,429 | 4,180,885 |
Trade accounts receivable, net | 26,686,888 | 4,132,470 | 48,244,015 |
Trade accounts receivable-related party, net | 0 | 0 | 3,068,920 |
Inventories, net | 3,644,522 | 564,355 | 1,985,723 |
Other receivables, net | 6,939,676 | 1,074,610 | 6,350,802 |
Loans to third parties | 50,476,782 | 7,816,340 | 3,200,377 |
Purchase advances, net | 1,078,137 | 166,950 | 178,767 |
Contract costs, net | 48,795,906 | 7,556,056 | 31,537,586 |
Prepaid expenses | 146,071 | 22,619 | 198,294 |
Prepaid expenses - related parties | 433,000 | 67,050 | |
Total current assets | 488,505,185 | 75,645,127 | 129,281,873 |
Property and equipment, net | 27,138,768 | 4,202,444 | 29,756,879 |
Land use right, net | 1,253,408 | 194,090 | 1,280,648 |
Intangible assets, net | 6,650,000 | 1,029,754 | |
Investment in unconsolidated entity | 27,931,795 | 4,325,244 | 31,541,850 |
Long-term other receivables, net | 114,679 | 17,758 | 3,640 |
Goodwill | 6,996,895 | 1,083,471 | |
Operating lease right-of-use assets (including 803,503 and 352,775 ($54,627) from a related party as of June 30, 2020 and June 30, 2021, respectively) | 7,925,930 | 1,227,332 | 2,549,914 |
Total Assets | 566,516,660 | 87,725,220 | 194,414,804 |
Current liabilities | |||
Short-term bank loans | 15,000,000 | 2,322,753 | 9,520,000 |
Trade accounts payable | 21,956,481 | 3,399,966 | 23,034,347 |
Other payables | 9,862,762 | 1,527,251 | 2,609,486 |
Other payable- related parties | 2,400,667 | 371,744 | 4,498,318 |
Contract liabilities | 7,686,276 | 1,190,221 | 3,486,033 |
Accrued payroll and employees' welfare | 1,954,484 | 302,652 | 1,917,635 |
Investment payable | 6,400,000 | ||
Taxes payable | 1,248,994 | 193,407 | 1,108,288 |
Short-term borrowings | 530,000 | 82,071 | 200,000 |
Short-term borrowings - related parties | 12,676,042 | 1,962,888 | 10,230,746 |
Long-term borrowings - related party - current portion | 920,066 | 142,472 | 847,346 |
Operating lease liabilities - current (including 450,728 and 352,775 ($54,627) from a related party as of June 30, 2020 and June 30, 2021, respectively) | 2,226,832 | 344,825 | 1,328,976 |
Total Current Liabilities | 76,462,604 | 11,840,250 | 65,181,175 |
Operating lease liabilities - non-current (including 352,775 and nil from a related party as of June 30, 2020 and June 30, 2021, respectively) | 4,792,101 | 742,058 | 1,210,088 |
Long-term borrowings - Non current - related party | 6,486,551 | 1,004,444 | 7,379,253 |
Deferred tax liability | 624,088 | 96,640 | |
Warrant liability | 190,635,850 | 29,520,000 | |
Total Liabilities | 279,001,194 | 43,203,392 | 73,770,516 |
Commitments and Contingencies | |||
Equity | |||
Additional paid-in capital | 479,490,763 | 74,249,242 | 282,505,455 |
Statutory reserve | 4,148,929 | 642,462 | 4,148,929 |
Accumulated deficit | (206,860,320) | (32,032,362) | (184,027,586) |
Accumulated other comprehensive income | 1,974,836 | 305,804 | 2,825,731 |
Total stockholders' equity | 295,095,034 | 45,695,526 | 110,029,762 |
Non-controlling interests | (7,579,568) | (1,173,698) | 10,614,526 |
Total equity | 287,515,466 | 44,521,828 | 120,644,288 |
Total Liabilities and Equity | 566,516,660 | 87,725,220 | 194,414,804 |
Class A ordinary shares | |||
Equity | |||
Common stock value | ¥ 16,340,826 | $ 2,530,380 | ¥ 4,577,233 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)shares |
Rights of use lease assets | ¥ 7,925,930 | $ 1,227,332 | ¥ 2,549,914 |
Operating lease liabilities - current (including 450,728 and 352,775 ($54,627) from a related party as of June 30, 2020 and June 30, 2021, respectively) | 2,226,832 | 344,825 | 1,328,976 |
Operating lease liabilities - non-current | ¥ 4,792,101 | $ 742,058 | ¥ 1,210,088 |
Class A ordinary shares | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0925 | ||
Common shares, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common shares, shares issued | 26,868,391 | 26,868,391 | 7,202,832 |
Common shares, shares outstanding | 26,868,391 | 26,868,391 | 7,202,832 |
Class B ordinary shares | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0925 | ||
Common shares, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common shares, shares issued | 0 | 0 | 0 |
Common shares, shares outstanding | 0 | 0 | 0 |
Related Party | |||
Rights of use lease assets | ¥ 352,775 | $ 54,627 | ¥ 803,503 |
Operating lease liabilities - current (including 450,728 and 352,775 ($54,627) from a related party as of June 30, 2020 and June 30, 2021, respectively) | 352,775 | $ 54,627 | 450,728 |
Operating lease liabilities - non-current | ¥ | ¥ 0 | ¥ 352,775 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | 12 Months Ended | |||
Jun. 30, 2021CNY (¥)¥ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | |
Revenues | ¥ 47,938,575 | $ 7,423,298 | ¥ 65,760,651 | ¥ 102,384,327 |
Cost of revenues | 40,723,547 | 6,306,050 | 46,154,255 | 72,518,963 |
Gross profit | 7,215,028 | 1,117,248 | 19,606,396 | 29,865,364 |
Selling and distribution expenses | 8,038,965 | 1,244,835 | 4,417,413 | 9,076,266 |
General and administrative expenses | 45,949,157 | 7,115,236 | 26,120,099 | 41,288,351 |
Provision for credit losses | 8,191,247 | 1,268,416 | 2,203,531 | 610,776 |
Impairment loss of property and equipment | 768,312 | 118,973 | 0 | 0 |
Research and development expenses | 5,846,295 | 905,300 | 7,042,385 | 3,133,545 |
Operating expenses | 68,793,976 | 10,652,760 | 39,783,428 | 54,108,938 |
Loss from operations | (61,578,948) | (9,535,512) | (20,177,032) | (24,243,574) |
Other income (expenses) | ||||
Subsidy income | 355,667 | 55,075 | 1,210,318 | 1,149,016 |
Interest income | 918,629 | 142,250 | 54,746 | 40,391 |
Interest expense | (2,210,005) | (342,220) | (1,451,890) | (1,589,045) |
Income (loss) from investment in unconsolidated entity | (266,707) | (41,300) | 462,879 | (959,905) |
Changes In Fair Value Of Warrant Liability | 35,365,792 | 5,476,400 | 0 | 0 |
Remeasurement gain of previously held equity interests in connection with step acquisition | 979,254 | 151,638 | 0 | 0 |
Foreign exchange transaction gain (loss) | (146,898) | (22,747) | (17,720) | 56,603 |
Other income | 192,137 | 29,752 | 78,417 | 162,585 |
Other income (expense), net | 35,187,869 | 5,448,848 | 336,750 | (1,140,355) |
Loss before income tax | (26,391,079) | (4,086,664) | (19,840,282) | (25,383,929) |
Income tax expenses (benefit) | (524,251) | (81,180) | 282,322 | 398,477 |
Net loss | (25,866,828) | (4,005,484) | (20,122,604) | (25,782,406) |
Less: Net loss attributable to non-controlling interests | (3,034,094) | (469,830) | (875,903) | (426,501) |
Net loss attributable to Recon Technology, Ltd | (22,832,734) | (3,535,654) | (19,246,701) | (25,355,905) |
Comprehensive loss | ||||
Net loss | (25,866,828) | (4,005,484) | (20,122,604) | (25,782,406) |
Foreign currency translation adjustment | (850,895) | (131,761) | (84,205) | 1,393,843 |
Comprehensive loss | (26,717,723) | (4,137,245) | (20,206,809) | (24,388,563) |
Less: Comprehensive loss attributable to non- controlling interests | (3,034,094) | (469,830) | (875,903) | (426,501) |
Comprehensive loss attributable to Recon Technology, Ltd | ¥ (23,683,629) | $ (3,667,415) | ¥ (19,330,906) | ¥ (23,962,062) |
Loss per common share - basic and diluted | (per share) | ¥ (1.80) | $ (0.28) | ¥ (4.16) | ¥ (6.49) |
Weighted - average shares -basic and diluted | shares | 12,697,024 | 12,697,024 | 4,624,615 | 3,908,833 |
Related Party | ||||
Revenues | ¥ 85,657 | $ 13,264 | ¥ 0 | ¥ 3,726,894 |
Cost of revenues | ¥ | 0 | 2,202,765 | ||
Third Party [Member] | ||||
Revenues | 47,852,918 | 7,410,034 | 65,760,651 | 98,657,433 |
Cost of revenues | ¥ 40,723,547 | $ 6,306,050 | ¥ 46,154,255 | ¥ 70,316,198 |
CONSOLIDATED INTERIM STATEMENTS
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | Class A ordinary sharesCommon stockCNY (¥)shares | Additional Paid-in Capital [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) | Accumulated Other Comprehensive income (loss) [Member]CNY (¥) | Stockholders' Equity [Member]CNY (¥) | Non-controlling Interest [Member]CNY (¥) | Non-controlling Interest [Member]USD ($) | CNY (¥)shares | USD ($)shares | ||
Opening Balance at Jun. 30, 2018 | ¥ 2,279,510 | ¥ 207,490,280 | ¥ 4,148,929 | ¥ (139,424,980) | ¥ 1,516,093 | ¥ 76,009,832 | ¥ 10,861,930 | ¥ 86,871,762 | $ 13,452,110 | |||
Opening Balance (in shares) at Jun. 30, 2018 | [1] | 3,677,843 | ||||||||||
Capital contribution in non-controlling interests | 0 | 650,000 | 650,000 | 100,653 | ||||||||
Restricted shares issued for services | ¥ 15,902 | 829,879 | 845,781 | 845,781 | 130,969 | |||||||
Restricted shares issued for services (in shares) | [1] | 25,000 | ||||||||||
Issuance of common stock in exchange of shares of Starry, FGS, net of issuance costs | ¥ 307,981 | 21,125,815 | 21,433,796 | 21,433,796 | 3,319,028 | |||||||
Issuance of common stock in exchange of shares of Starry, FGS, net of issuance costs (in shares) | [1] | 487,057 | ||||||||||
Restricted shares issued for management | ¥ 109,380 | 11,530,961 | 11,640,341 | 11,640,341 | 1,802,509 | |||||||
Restricted shares issued for management (in shares) | [1] | 171,734 | ||||||||||
Stock based payments | 9,647,863 | 9,647,863 | 9,647,863 | 1,493,974 | ||||||||
Net loss for the year | (25,355,905) | (25,355,905) | (426,501) | (25,782,406) | (3,992,411) | |||||||
Foreign currency translation adjustment | 1,393,843 | 1,393,843 | 1,393,843 | 215,837 | ||||||||
Ending Balance at Jun. 30, 2019 | ¥ 2,712,773 | 250,624,798 | 4,148,929 | (164,780,885) | 2,909,936 | 95,615,551 | 11,085,429 | 106,700,980 | 16,522,669 | |||
Ending Balance (in shares) at Jun. 30, 2019 | [1] | 4,361,634 | ||||||||||
Capital contribution in non-controlling interests | 405,000 | 405,000 | 62,714 | |||||||||
Stock issuance | ¥ 1,701,005 | 24,065,350 | 25,766,355 | 25,766,355 | 3,989,925 | |||||||
Stock issuance (in shares) | [1] | 2,591,112 | ||||||||||
Restricted shares issued for services | 33,927 | 33,927 | ¥ 33,927 | $ 5,254 | ||||||||
Stock options exercised (in shares) | 0 | 0 | ||||||||||
Restricted shares issued for management | ¥ 163,455 | 7,781,380 | 7,944,835 | ¥ 7,944,835 | $ 1,230,259 | |||||||
Restricted shares issued for management (in shares) | [1] | 250,086 | ||||||||||
Net loss for the year | (19,246,701) | (19,246,701) | (875,903) | (20,122,604) | (3,115,990) | |||||||
Foreign currency translation adjustment | (84,205) | (84,205) | (84,205) | (13,039) | ||||||||
Ending Balance at Jun. 30, 2020 | ¥ 4,577,233 | 282,505,455 | 4,148,929 | (184,027,586) | 2,825,731 | 110,029,762 | 10,614,526 | 120,644,288 | 18,681,792 | |||
Ending Balance (in shares) at Jun. 30, 2020 | [1] | 7,202,832 | ||||||||||
Capital contribution in non-controlling interests | 50,000 | 50,000 | 7,743 | |||||||||
Step acquisition of FGS | 34,790,000 | 34,790,000 | 5,387,239 | |||||||||
Capital contribution receivable due from non-controlling Interest | (50,000,000) | $ (7,742,510) | (50,000,000) | (7,742,510) | ||||||||
Stock issuance | ¥ 3,579,783 | 77,511,358 | 81,091,141 | 81,091,141 | 12,556,980 | |||||||
Stock issuance (in shares) | [1] | 6,014,102 | ||||||||||
Stock issuance for warrants exercised | ¥ 1,563,589 | 19,566,446 | 21,130,035 | 21,130,035 | 3,271,990 | |||||||
Stock issuance for warrants exercised (in shares) | [1] | 2,591,112 | ||||||||||
Proceeds from Pre-founded warrants | ¥ 791,658 | 29,484,911 | 30,276,569 | ¥ 30,276,569 | $ 4,688,333 | |||||||
Proceeds from Pre-founded warrants (in shares) | [1] | 1,330,000 | ||||||||||
Stock options exercised (in shares) | 0 | 0 | ||||||||||
Issuance of common stock in exchange of shares of Starry, FGS, net of issuance costs | ¥ 187,133 | 27,488,317 | 27,675,450 | ¥ 27,675,450 | $ 4,285,549 | |||||||
Issuance of common stock in exchange of shares of Starry, FGS, net of issuance costs (in shares) | [1] | 316,345 | ||||||||||
Stock issuance for convertible notes redemption | ¥ 5,528,591 | 36,907,078 | 42,435,669 | ¥ 42,435,669 | $ 6,571,172 | |||||||
Stock issuance for convertible notes redemption (in shares) | 9,225,338 | [1] | 9,225,338 | 9,225,338 | ||||||||
Restricted shares issued for management | ¥ 112,839 | 6,027,198 | 6,140,037 | ¥ 6,140,037 | $ 950,786 | |||||||
Restricted shares issued for management (in shares) | [1] | 188,662 | ||||||||||
Net loss for the year | (22,832,734) | (22,832,734) | (3,034,094) | (25,866,828) | (4,005,485) | |||||||
Foreign currency translation adjustment | (850,895) | (850,895) | (850,895) | (131,761) | ||||||||
Ending Balance at Jun. 30, 2021 | ¥ 16,340,826 | ¥ 479,490,763 | ¥ 4,148,929 | ¥ (206,860,320) | ¥ 1,974,836 | ¥ 295,095,034 | ¥ (7,579,568) | ¥ 287,515,466 | $ 44,521,828 | |||
Ending Balance (in shares) at Jun. 30, 2021 | [1] | 26,868,391 | ||||||||||
[1] | Retrospectively restated for effect of stock split on December 27, 2019. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (25,866,828) | $ (4,005,484) | ¥ (20,122,604) | ¥ (25,782,406) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 3,150,789 | 487,900 | 1,609,700 | 1,124,011 |
Loss (gain) from disposal of equipment | 19,590 | 3,034 | (89,156) | 0 |
Changing in fair value of warrant liability | (35,365,792) | (5,476,400) | ||
Amortization of offering cost of warrants | 12,584,024 | 1,948,639 | ||
Provision for doubtful accounts | 8,191,247 | 1,268,416 | 2,203,531 | 610,776 |
Provision for slow moving inventories | 654,673 | 101,376 | 56,817 | 65,380 |
Impairment of property and equipment | 768,312 | 118,973 | 0 | 0 |
Amortization of right of use assets | 1,866,803 | 289,075 | 1,408,551 | 0 |
Restricted shares issued for management and employees | 6,140,037 | 950,786 | 7,944,835 | 21,288,204 |
Remeasurement gain of previously held equity interests in connection with step acquisition | (979,254) | (151,638) | 0 | 0 |
Loss (income) from investment in unconsolidated entity | 266,707 | 41,300 | (462,879) | 959,905 |
Deferred tax benefit | (425,913) | (65,953) | 0 | 0 |
Interest expenses related to convertible notes | 430,416 | 66,650 | 0 | 0 |
Restricted shares issued for services | 33,927 | 845,781 | ||
Changes in operating assets and liabilities: | ||||
Notes receivable | (2,124,748) | (329,018) | (1,107,205) | 922,282 |
Trade accounts receivable | 18,326,410 | 2,837,848 | 18,428,088 | (40,461,376) |
Trade accounts receivable-related party | 3,409,912 | 528,026 | 0 | (3,409,912) |
Inventories | (2,502,263) | (387,476) | (1,124,935) | (1,197,529) |
Other receivable | (338,468) | (52,412) | (287,242) | (928,882) |
Purchase advance | (899,371) | (139,268) | 1,210,309 | 5,784,669 |
Contract costs | (21,944,876) | (3,398,168) | (26,938,013) | 7,554,745 |
Prepaid expense | 143,354 | 22,198 | (5,457) | 316,845 |
Prepaid expense - related parties | (433,000) | (67,050) | 217,600 | (217,600) |
Operating lease liabilities | (2,762,949) | (427,843) | (1,419,402) | 0 |
Trade accounts payable | (2,109,944) | (326,725) | 8,205,660 | (400,034) |
Other payables | 6,669,009 | 1,032,698 | (23,600) | (861,620) |
Other payables-related parties | (2,577,610) | (399,143) | 2,207,445 | (920,584) |
Advance from customers | 4,160,456 | 644,247 | 3,366,033 | (37,856) |
Accrued payroll and employees' welfare | (1,593,822) | (246,804) | 533,109 | 784,095 |
Accrued expenses | (983,821) | (152,344) | 9,425 | 0 |
Taxes payable | 76,452 | 11,839 | (1,085,213) | 1,748,934 |
Net cash used in operating activities | (34,050,468) | (5,272,722) | (5,230,676) | (32,212,172) |
Cash flows from investing activities: | ||||
Investment in unconsolidated entity | 0 | (4,205,080) | ||
Purchases of property and equipment | (522,416) | (80,896) | (85,974) | (1,735,956) |
Proceeds from disposal of equipment | 900 | 0 | ||
Repayments from loans to third parties | 5,150,377 | 797,537 | 11,239,623 | 1,000,000 |
Payments made for loans to third parties | (51,638,458) | (7,996,226) | (9,480,000) | (4,000,000) |
Payments and prepayments for construction in progress | (3,782,912) | (4,606,823) | ||
Step acquisition of FGS, net of cash | 471,843 | 73,065 | 0 | 0 |
Net cash used in investing activities | (46,538,654) | (7,206,520) | (2,108,363) | (13,547,859) |
Cash flows from financing activities: | ||||
Proceeds from short-term bank loans | 16,020,000 | 2,480,700 | 9,520,000 | 2,500,000 |
Repayments of short-term bank loans | (10,540,000) | (1,632,121) | (2,500,000) | 0 |
Proceeds from short-term borrowings | 3,660,000 | 566,752 | 200,000 | 1,081,096 |
Repayments of short-term borrowings | (3,360,000) | (520,297) | (1,000,000) | 0 |
Proceeds from short-term borrowings-related parties | 18,400,000 | 2,849,244 | 17,415,000 | 5,000,000 |
Repayments of short-term borrowings-related parties | (15,950,000) | (2,469,861) | (16,195,000) | (5,000,000) |
Repayments of long-term borrowings-related party | (816,952) | (126,505) | (747,630) | (684,191) |
Proceeds from warrants issued with coomon stock | 212,051,414 | 32,836,204 | 0 | 0 |
Proceeds from sale of common stock, net of issuance costs | 81,091,141 | 12,556,980 | 26,141,051 | 0 |
Proceeds from pre-founded warrants received in advance | 30,276,569 | 4,688,333 | 0 | 0 |
Proceeds from stock issuance for warrants exercised | 21,130,035 | 3,271,990 | 0 | 0 |
Proceeds from issuance of convertible notes | 42,014,616 | 6,505,972 | 0 | 0 |
Refund of capital contribution by a non-controlling shareholder | 0 | (200,000) | ||
Capital contribution by non-controlling shareholders | 50,000 | 7,743 | 405,000 | 850,000 |
Net cash provided by financing activities | 394,026,823 | 61,015,134 | 33,238,421 | 3,546,905 |
Effect of exchange rate fluctuation on cash | 224,365 | 34,742 | (84,203) | 1,393,873 |
Net increase (decrease) in cash | 313,662,066 | 48,570,634 | 25,815,179 | (40,819,253) |
Cash at beginning of year | 30,336,504 | 4,697,614 | 4,521,325 | 45,340,578 |
Cash at end of year | 343,998,570 | 53,268,248 | 30,336,504 | 4,521,325 |
Supplemental cash flow information | ||||
Cash paid during the period for interest | 1,682,863 | 260,592 | 1,400,462 | 1,542,381 |
Cash received during the period for taxes | (98,338) | (15,228) | 282,322 | 2,002 |
Non-cash investing and financing activities | ||||
Cancellation of common stock issued prior years in exchange of shares of FGS , net of issuance costs | (1,689,807) | (261,667) | 0 | 0 |
Issuance of common stock in exchange of shares of FGS , net of issuance costs | 1,689,807 | 261,667 | 0 | 21,433,796 |
Issuance of common stock in exchange of shares of Starry, net of issuance costs | 27,675,450 | 4,285,549 | 0 | 0 |
Investment payable in exchange of interest of FGS | 0 | 6,400,000 | ||
Conversion of convertible notes to 9,225,338 shares of common stock | 42,435,669 | 6,571,172 | 0 | 0 |
Right-of-use assets obtained in exchange for operating lease obligations | 7,242,819 | 1,121,552 | 1,228,963 | 0 |
Inventories used as fixed assets | 302,795 | 46,888 | 409,735 | 0 |
Payable for construction in Progress | 732,513 | 5,694,980 | ||
Receivable for disposal of property and equipment | 110,000 | 0 | ||
Payable for issuance cost of common stock | 374,696 | 0 | ||
Capital contribution receivable due from non-controlling Interest | ¥ 50,000,000 | $ 7,742,510 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Jun. 30, 2021shares | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Conversion of convertible notes to number shares of ordinary shares | 9,225,338 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2021 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS Organization The Company, along with its wholly-owned subsidiaries, Recon Investment Ltd. (“Recon-IN”) and Recon Hengda Technology (Beijing) Co., Ltd. (“Recon-BJ”), conducts its business through the following PRC legal entities (“Domestic Companies”) that are consolidated as variable interest entities (“VIEs”) and operate in the Chinese energy industry: 1. Beijing BHD Petroleum Technology Co., Ltd. (“BHD”), 2. Nanjing Recon Technology Co., Ltd. (“Nanjing Recon”). The Company has signed Exclusive Technical Consulting Service Agreements with each of the Domestic Companies, which are its VIEs, and Equity Interest Pledge Agreements and Exclusive Equity Interest Purchase Agreements with their shareholders. Through these contractual arrangements, the Company has the ability to substantially influence each of the Domestic Companies’ daily operations and financial affairs, appoint their senior executives and approve all matters requiring shareholder approval. As a result of these contractual arrangements, which enable the Company to control the Domestic Companies, the Company is considered as the primary beneficiary of each Domestic Company. Thus, the Company is able to absorb 90% of net interest or 100% of net loss of those VIEs. On February 21, 2019, the Company’s board of directors approved transferring the VIEs and VIE-controlled companies from Jining Recon Technology Ltd. (“Recon-JN”) to Recon-BJ. At the time, both Recon-JN and Recon-BJ were the Company’s wholly owned subsidiaries in China. On April 1, 2019, the Company completed the VIE transfer process and then completed the dissolution of Recon-JN on April 10, 2019, and subsequently completed the dissolution of Recon Technology Co., Limited (“Recon HK”) on May 15, 2020. The Company does not expect any negative impact of this process on its operations. On December 17, 2015, Huang Hua BHD Petroleum Equipment Manufacturing Co.LTD, a fully owned subsidiary established by BHD was organized under the laws of the PRC, focusing on the design, assemble and manufacture of hearing equipment. Gan Su BHD Environmental Technology Co., Ltd (“Gan Su BHD”) was established on May 23, 2017, with registered capital of ¥50 million. The paid in capital was ¥22,935,000 ($3,551,489) as of June 30,2021. On April 26, 2021, the minority shareholder of Gan Su BHD transferred 15.4% of the equity interest hold to BHD. On May 19, 2021, the minority shareholder transferred 3.6% equity shares and BHD transferred 15.4% equity shares of Gan Su BHD to Nanjing Recon. There is no consideration paid for the transfer.Thus, by June 30, 2021, BHD owns an interest of 51% and Nanjing Recon owns an interest of 19% of Gan Su BHD, which is focusing on oilfield sewage treatment and oily sludge disposal projects. Qing Hai BHD New Energy Technology Co., Ltd. (“Qinghai BHD”) was established on October 16, 2017, with registered capital of ¥50 million. The paid in capital was ¥4,200,000 ($650,371) as of June 30, 2021. BHD owned an interest of 55% of Qinghai BHD previously; however, based on an agreement signed by the shareholders of Qinghai BHD dated October 23, 2018, each of the other two individual shareholders agreed to reduce 10% of their equity interests. As a result, Qinghai BHD returned ¥200,000 paid in capital back to one of the individual shareholders. After the new arrangement, BHD owns a total interest of 75% of Qinghai BHD. The remaining paid in capital should be contributed by BHD and the other individual shareholder is ¥33,300,000 ($5,156,512) and ¥12,500,000 ($1,935,628) respectively. Based on its charter dated September 29, 2017, the remaining capital will be injected before September 29, 2036. As the energy consumption market opened to private and foreign companies, and online payment technology developed, the Domestic Companies began to invest in the downstream of the oil industry. On December 15, 2017, BHD and Nanjing Recon entered into a subscription agreement with Future Gas Station (Beijing) Technology, Ltd (“FGS”), pursuant to which the Domestic Companies acquired an 8% equity interest in FGS. Established in January 2016, FGS is a service company focusing on providing new technical applications and data operations to gas stations and provides solutions to gas stations to improve their operations and their customers’ experience. On August 21, 2018, the Domestic Companies entered into an investment agreement and a supplemental agreement (collectively, the “Investment Agreement”) with FGS and the other shareholders of FGS. Pursuant to the Investment Agreement, our VIEs’ ownership interest in FGS shall increase from 8% to 43%, in exchange for their investment in FGS for a total amount of ¥10 million in cash and the issuance of 487,057 restricted Class A Ordinary Shares to the other shareholders of FGS with certain conditions. As of June 30, 2019, the Domestic Companies invested an aggregate amount of ¥35,116,707 ($5,113,984) in FGS and issued 487,057 restricted shares in total to other shareholders of FGS, and the Domestic Companies’ ownership interest in FGS has increased to 43%. On February 4, 2021, Nanjing Recon and BHD, entered into the fourth supplemental agreement to the investment agreement with FGS and FGS’ founding shareholders to acquire 8% equity ownership of FGS. The transaction has been closed. As a result, the Domestic Companies collectively own 51% interest of FGS and we began to consolidate the financial results of FGS since January 2021. Through the fourth supplemental agreement, the Domestic Companies waived the requirement on FGS’ performances goal about the number of gas stations. Accordingly, the Domestic Companies agreed to pay for the balance of the investment and cancelled the related lock-up terms on the restricted shares, in exchange of additional 8% equity ownership of FGS. Nature of Operations Impact of Covid-19 - |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Jun. 30, 2021 | |
LIQUIDITY | |
LIQUIDITY | NOTE 2. LIQUIDITY As disclosed in the Company’s consolidated financial statements, the Company had recurring net losses for the years ended June 30, 2019, 2020 and 2021. In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand and its ability to generate sufficient revenue sources in the future to support its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Direct offering and debt financing in the forms of loans payable and loans from related parties have been utilized to finance the working capital requirements of the Company. Two major shareholders also renewed a 3-year commitment letter for financial support and whenever the Company has liquidity difficulty, they will provide working capital to support daily operation of the Company. Despite those negative financial trends, as of June 30, 2021, the Company has positive working capital due to the following measurements the management has taken to enhance the Company’s liquidity: 1) The Company financed through direct offering of its common stock and prefunded warrants. On June 14, 2021, the Company and certain institutional investors entered into certain securities purchase agreement to sell to an aggregate of 6,014,102 Class A Ordinary Shares and 2,800,000 pre-funded warrants to purchase Class A Ordinary Shares in a registered direct offering and warrants to purchase up to 8,814,102 Class A Ordinary Shares in a concurrent private placement, for gross proceeds of approximately $55.0 million before deducting the placement agent’s fees and other estimated offering expenses. 2) The Company financed through convertible debt during this period as a reserve for some future projects. On November 25, 2020, the Company and certain accredited investors (the “Investors”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to sell to the Investors, and the Investors agreed to purchase from the Company, in an unregistered private transaction, convertible promissory notes (the “Convertible Notes”) with an aggregate principal amount of $6,485,000 , convertible into Class A Ordinary Shares, $0.0925 par value per share of the Company at a rate of $0.71 per Class A Ordinary Share, upon the terms and subject to the limitations and conditions set forth in such Convertible Notes. The Company received the full principal amount in December 2020. On January 28, 2021, the Company received the conversion notices from the Investors, and Class A Ordinary Shares totaling 9,225,338 were issued by the Company to the Investors equaling principal and interests amounted to $6,549,990 , after the issuance, all the outstanding principle and interests have been converted. 3) The Company financed through borrowing from shareholders and senior management. As of June 30 , 2021, the Company has short-term borrowings due to related parties amounted to ¥ 12.7 million ( $2.0 million), and long-term borrowings due to a related party amounted to ¥ 7.4 million ( $1.1 million). 4) The Company also financed from commercial banks. As of June 30 , 2021, the Company had ¥ 15.0 million ( $2.3 million) in bank loans outstanding. The management expects that the Company will be able to renew its existing bank loan upon its maturity based on past experience and our good credit history. Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity needs. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Principles of Consolidation Variable Interest Entities Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Currency Translation Estimates and Assumptions The key assumptions underlying the Company’s accounting for material arrangements and the reasonably likely material effects of resolving any uncertainties on the Company’s allowance for credit losses related to purchase advances. The production of the Company’s products requires custom-made equipment from its suppliers. To ensure that it can secure the required customized equipment, the Company often needs to make full prepayment for its intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid in order to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by its client. In order to secure timely purchase delivery and to meet its product delivery schedule, the Company normally prepays for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract which is accounted as pre-contract costs. After winning the bid and securing the sale contract, the Company normally needs to deliver its products approximately within one week to six months. Based on the Company’s historical experience, the Company generally is able to realize its purchase advances on the customized equipment that it orders. If it subsequently confirms that the Company is unable to secure the planned contracts with a customer after making the advance payments for these planned contracts, the Company evaluates the probable recoverability of the pre-contract cost and charges to expenses when the Company determines that the recovery of such pre-contract cost is improbable. Fair Values of Financial Instruments 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. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Company measures certain financial assets, including investments under the equity method on other-than-temporary basis, intangible assets and fixed assets at fair value when an impairment charge is recognized. The carrying amounts reported in the consolidated balance sheets for trade accounts receivable, other receivables, purchase advances, trade accounts payable, convertible notes payable, accrued liabilities, advances from customers, investment payable, short-term bank loan and short-term borrowings approximate fair value because of the immediate or short-term maturity of these financial instruments. Cash Trade Accounts, Net, Other Receivables, Net and Loan to Third Parties The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of July 1, 2020. Accounts receivable, other receivables and loan to third parties are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its trade and non-trade customers (“customers”) to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in calculation of allowance for credit losses, the potential impact of the COVID-19 pandemic on our customers businesses and their ability to pay their accounts receivable, other receivables and loan to third parties. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions, including the potential impact of the COVID-19 pandemic. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The balance of allowance for credit loss for the year ended June 30, 2021 increased approximately ¥3,543,445 ($548,703) from the year ended June 30, 2020. The Company evaluates the creditworthiness of all of its customers individually before accepting them and continuously monitors the recoverability of accounts receivable, other receivables and loan to third parties. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company considers in determining whether to discontinue sales, record as contra revenue or allowance for credit losses: ● the oil price and fluctuation of the overall oil industry; ● the customer fails to comply with its payment schedule; ● the customer is in serious financial difficulty; ● a significant dispute with the customer has occurred regarding job progress or other matters; ● the customer breaches any of the contractual obligations; ● the customer appears to be financially distressed due to economic or legal factors; ● the business between the customer and the Company is not active; and ● other objective evidence indicates non-collectability of the accounts receivable, other receivables and loan to third parties. The Company considers the following factors when determining whether to permit a longer payment period or provide other concessions to customers: ● the customer’s past payment history; ● the customer’s general risk profile, including factors such as the customer’s size, age, and public or private status; ● macroeconomic conditions that may affect a customer’s ability to pay; and ● the relative importance of the customer relationship to the Company’s business. Notes Receivable Purchase Advances, Net - Inventories, Net Property and Equipment, Net two Items Useful life Motor vehicles 5-10 years Office equipment 2-5 years Production equipment 10-20 years Land Use Rights, Net Goodwill - Intangible assets, net – Long-Lived Assets Long-term Investments ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The new guidance requires modified retrospective application to all outstanding instruments for fiscal years beginning after December 15, 2017, with a cumulative effect adjustment recorded to opening accumulated deficit as of the beginning of the first period in which the guidance becomes effective. However, changes to the accounting for equity securities without a readily determinable fair value would be applied prospectively. The Company adopted the new financial instruments accounting standard from July 1, 2018. - Equity Investments with Readily Determinable Fair Values - Equity Investments without Readily Determinable Fair Values - Equity Investments Accounted for Using the Equity Method - An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Company recorded ¥nil, ¥nil and ¥nil impairment loss on its equity method investment during the years ended June 30, 2019, 2020 and 2021. The Company recorded a (¥959,905) investment loss, ¥462,879 investment income and (¥266,707) ($41,300) investment loss on its equity method investment in unconsolidated entity during the years ended June 30, 2019, 2020 and 2021. Business Combinations - costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the acquiree, the difference is recognized directly in the consolidated statements of operation and comprehensive loss. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operation and comprehensive loss. In a business combination considered as a step acquisition, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of operation and comprehensive loss. Noncontrolling Interests - Revenue Recognition Disaggregation of Revenues Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following items represent the Company’s revenues disaggregated by revenue source. In accordance with ASC 606-10-50-5, the Company selects categories to present disaggregated revenue that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors and delivery conditions of products and fulfillment of obligations. The Company’s disaggregation of revenues for the years ended June 30, 2019, 2020 and 2021 is disclosed in Note 27. Automation Products and Software; Equipment and Accessories The Company generates revenues primarily through delivery of standard or customized products and equipment, including automation products, furnaces and related accessories. Revenue is recognized when products are delivered, and acceptance reports are signed off by customers. The sale of automation products or specialized equipment when combined with services represent a single performance obligation for the development and construction of a single asset. The Company may also provide design or installation services to clients as there may be such obligation in contracts. The promises to transfer the goods and provision of services are not separately identifiable, which is evidenced by the fact that the Company provides significant services of integrating the goods and services into a single deliverable for which the customer has contracted. For such sales arrangements, the Company recognizes revenue using input method, based on the relationship between actual costs incurred compared to the total estimated costs for the contract. Such method is adopted because the Company believes it best depicts the transfer of goods and services to the customer. Oilfield Environmental Protection Service The Company provides wastewater treatment products and related service to oilfield and chemical industry companies and generates revenue from special equipment, self-developed chemical products and supporting service, transfer. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue when products are delivered, on-site assistance services rendered, and acceptance reports are signed off by customers. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. The Company provides oily sludge disposal and treatment services to oilfield companies and generates revenue from treatment services of oily sludge. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue using output method, based on the percentage-of-completion method. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. Platform Outsourcing Services The Company provides online platform development, maintenance, and operation services to gas stations around different provinces in China to complete online transactions; and API (application programming interface) port export service and related maintain services to business cooperators of different industries that may have transactions in the refueling scenario during the service contract period. The Company considered these performance obligations to be indistinguishable contractual performance obligations. As the Company has no right to get the compensation for any performances completed while not accepted by its customers, the Company can only recognize revenue at a point in time, which is when the online transaction is completed. The Company’s services enable terminal users of different mobile apps runed by its clients or cooperators to complete refueling in cash or online through different payment channels, when each transaction, including refueling and payment, is completed, the Company is entitled to charge with pre-setted rates of each transaction amount as service fee and recognize the underlying amount as revenue. Related fees are generally billed monthly, based on a per transaction basis. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations. For such arrangements, the Company will allocate revenues to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost-plus margin. Contract Balances Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs. The following table provides information about contract costs and contract liabilities from contracts with customers: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Contract costs ¥ 31,537,586 ¥ 48,795,906 $ 7,556,056 Contract liabilities ¥ 3,486,033 ¥ 7,686,276 $ 1,190,221 Contract costs, net - The Company recognizes an asset from the costs incurred to fulfill a contract when those costs meet all of the following criteria: (i) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify; (ii) the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) the costs are expected to be recovered. - Pre-Contract Costs - Executed Contract Costs Contract liabilities - Contract liabilities are recognized for contracts where payment has been received in advance of performance under the contract. The Company’s contract liabilities consist primarily of the Company’s unsatisfied performance obligations as of the balance sheet dates. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Performance Obligations - Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues, and costs incurred by the Company for the delivery of goods are classified as cost of sales in the consolidated statements of operations and comprehensive loss. Sales, value added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generally offers assurance-type warranties for its products. The specific terms and conditions of those warranties vary depending upon the product. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the warranty liability include historical product-failure experience and estimated repair costs for identified matters. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount accrued for expected returns and warranty claims was immaterial as of June 30, 2021. The amount of revenue recognized during the years ended June 30, 2019, 2020 and 2021 that was previously included within contract liability balances was ¥122,996, ¥nil and ¥1,899,561 ($294,147), respectively. Practical Expedients Elected Incremental Costs of Obtaining a Contract - The Company has elected the practical expedient permitted in ASC 340-40-25-4, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year and not significant. Significant Financing Component - The Company has elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Company’s contracts are majorly less than one year in length, consideration will not be adjusted. For the Company’s contracts include a standard payment term of 90 days to 180 days; consequently, there is no significant financing component within contracts. There are also some new contracts that will not be completed within one year from year 2020, the Company did calculation and the amount was not material as end of this fiscal year. Share-Based Compensation - Research and Development Expenses Shipping and Handling Costs - Leases Leases At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The ROU asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All ROU assets are reviewed for impairment annually. There was no impairment for ROU lease assets as of June 30, 2020 and 2021. Investment Payable Income Taxes The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company has no uncertain tax position as of June 30, 2020 and 2021. As of June 30, 2021, the tax years ended December 31, 2016 through December 31, 2020 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. Comprehensive Loss - Loss per Share (“EPS”) Potentially dilutive Class A Ordinary Shares consist of Class A Ordinary Shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using the treasury stock method). The effect from options, restricted shares and warrants would have been anti-dilutive due to the fact that the Company incurred a net loss for the years ended June 30, 2019, 2020 and 2021. Warrants For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Convertible Notes Payable Debt with conversion and other options Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification in this Update were submitted by stakeholders as part of the Simplification Initiative. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40)” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2020-06 will have 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. |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Jun. 30, 2021 | |
TRADE ACCOUNTS RECEIVABLE, NET | |
TRADE ACCOUNTS RECEIVABLE, NET | NOTE 4. TRADE ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Parties RMB RMB U.S. Dollars Trade accounts receivable ¥ 51,679,627 ¥ 31,669,331 $ 4,904,001 Allowance for credit losses (3,435,612) (4,982,443) (771,531) Total third-parties, net ¥ 48,244,015 ¥ 26,686,888 $ 4,132,470 June 30, June 30, June 30, 2020 2021 2021 Related Party RMB RMB U.S. Dollars Urumqi Yikeli Automatic Control Equipment Co., Ltd. ¥ 3,409,912 ¥ — $ — Allowance for credit losses (340,992) — — Total related-party, net ¥ 3,068,920 ¥ — $ — June 30, June 30, June 30, 2020 2021 2021 Third Parties- long-term RMB RMB U.S. Dollars Trade accounts receivable ¥ 2,072,900 ¥ 4,332,984 $ 670,963 Allowance for credit losses (2,072,900) (4,332,984) (670,963) Total third-parties, net ¥ — ¥ — $ — Provision for credit losses of accounts receivable due from third parties was ¥392,929, ¥2,204,170 and ¥3,730,606 ($577,685) for the years ended June 30, 2019, 2020 and 2021, respectively. The increase in for credit losses of accounts receivable due from third parties was mainly resulted by additional provision made for long outstanding account receivables. The payments of the Company’s outstanding balances were extended by our oilfield customers, hence, on a prudent basis, the Company recorded allowance for credit losses according to its general accounting policy. Currently, the Company makes great efforts to prevent any not-collection of receivables from our customers, approximately 44.8%, or ¥16,111,105 ($2,494,808) of outstanding balance as of June 30, 2020 has been collected as of the date of the report. Provision for credit losses made for accounts receivable due from related-party was ¥nil and ¥340,992 for the years ended June 30, 2019 and 2020, respectively, while net recovery of provision for credit losses made for accounts receivable due from related-party was ¥340,992 ($52,803) for the year ended June 30, 2021. The Company records allowance for credit losses of related-party according to its general accounting policy, while the Company also makes great efforts to prevent any not-collection of receivables from related party. The outstanding balance as of June 30, 2020 was fully collected during the year ended June 30, 2021. Movement of allowance for credit losses is as follows: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Beginning balance ¥ 3,645,334 ¥ 5,849,504 $ 905,796 Charge to expense 2,204,170 3,730,606 577,684 Less: write-off — (254,853) (39,464) Foreign currency translation adjustments — (9,830) (1,522) Ending balance ¥ 5,849,504 ¥ 9,315,427 $ 1,442,494 |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Jun. 30, 2021 | |
NOTES RECEIVABLE | |
NOTES RECEIVABLE | NOTE 5. NOTES RECEIVABLE Notes receivables represented the non-interest-bearing commercial bills the Company received from the customers for the purpose of collection of sales amounts, which generally ranged from three to six months from the date of issuance. As of June 30, 2020 and 2021, notes receivable were ¥4,180,885 and ¥6,305,633 ($976,429), respectively. As of June 30, 2020 and 2021, no notes were guaranteed or collateralized. As of the date of this report, 25.0%, or ¥1,574,200 ($243,765) have been subsequently collected, and the remaining balance is expected to be collected by April 14, 2022. |
OTHER RECEIVABLES, NET
OTHER RECEIVABLES, NET | 12 Months Ended |
Jun. 30, 2021 | |
OTHER RECEIVABLES, NET | |
OTHER RECEIVABLES, NET | NOTE 6. OTHER RECEIVABLES, NET Other receivables, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Party RMB RMB U.S. Dollars Business advances to officers and staffs (A) ¥ 1,141,829 ¥ 957,277 $ 148,235 Deposits for projects 1,381,081 1,982,987 307,066 VAT recoverable 3,746,435 3,562,295 551,622 Others 1,614,133 1,469,949 227,621 7,883,478 7,972,508 1,234,544 Less: Long term portion (B) (3,640) (114,679) (17,758) Allowance for credit losses (1,529,036) (918,153) (142,176) Other receivable - current portion ¥ 6,350,802 ¥ 6,939,676 $ 1,074,610 (A) Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. (B) Long-term portion are mainly tender deposits for large-scale projects or rental contracts. These funds may not be collected back until projects are finished or contracts are completed. Provision for credit losses of other receivables was ¥259,766 and ¥67,312 for the years ended June 30, 2019 and 2020, respectively. Net recovery of provision for credit losses of other receivables was ¥187,161 ($28,981) for the year ended June 30, 2021. Movement of allowance for credit losses is as follows: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Beginning balance ¥ 1,461,724 ¥ 1,529,036 $ 236,772 Balance acquired from FGS — 151,689 23,488 Charge to (reversal of) expense 67,312 (187,161) (28,981) Less: write-off — (575,411) (89,103) Ending balance ¥ 1,529,036 ¥ 918,153 $ 142,176 |
LOANS TO THIRD PARTIES
LOANS TO THIRD PARTIES | 12 Months Ended |
Jun. 30, 2021 | |
LOANS TO THIRD PARTIES | |
LOANS TO THIRD PARTIES | NOTE 7. LOANS TO THIRD PARTIES June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Working fund to third party companies ¥ 3,200,377 ¥ 50,476,782 $ 7,816,340 Allowance for credit losses — — — Total loans to third parties ¥ 3,200,377 ¥ 50,476,782 $ 7,816,340 Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners. These loans bear interest or no interest and have terms of no more than one year. The Company periodically reviewed the loans to third parties as to whether their carrying values remain realizable. The Company believes that the risk associated with the above loans are relatively low based on the evaluation of the creditworthiness of these third-party debtors and the relationships with them. As the date of the report, approximately ¥39.8 million (approximately $6.2 million) was collected by the Company and the remaining part was expected to be paid in full by end of December 2021. |
CONTRACT COSTS, NET
CONTRACT COSTS, NET | 12 Months Ended |
Jun. 30, 2021 | |
CONTRACT COSTS, NET | |
CONTRACT COSTS, NET | NOTE 8. CONTRACT COSTS, NET Contract costs, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Party RMB RMB U.S. Dollars Contract costs ¥ 31,677,348 ¥ 53,344,816 $ 8,260,456 Allowance for credit losses (139,762) (4,548,910) (704,400) Total contract costs, net ¥ 31,537,586 ¥ 48,795,906 $ 7,556,056 As of June 30, 2021, total contracts costs, net amounted to ¥48,795,906 ($7,556,056), of which 21.3%, or ¥11,253,727 ($1,742,642) have been subsequently realized as of the date of the report, and the remaining balance is expected to be utilized by March 31, 2022. Net recovery of provision for credit losses of contract cost was ¥233,391 and ¥22,451 for the years ended June 30, 2019 and 2020, respectively. Provision for credit losses of contract was ¥4,647,802 ($719,713) for the year ended June 30, 2021. There were an increase in contract assets due to the increased pre-contract costs incurred in anticipation of obtaining planned contracts for the Company’s revenue. As the progress of these contracts was delayed by the COVID-19 pandemic, the Company records allowance for credit losses of contract cost according to its general accounting policy, while the Company also makes great efforts to prevent any unrealizable of contract costs from third parties. Movement of allowance for credit losses of contract costs is as follows: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Beginning balance ¥ 162,213 ¥ 139,762 $ 21,642 Charge to (reversal of) expense (22,451) 4,647,802 719,713 Less: write-off — (238,654) (36,955) Ending balance ¥ 139,762 ¥ 4,548,910 $ 704,400 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 9. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Motor vehicles ¥ 4,741,366 ¥ 5,097,921 $ 789,415 Office equipment and fixtures 1,436,210 1,385,084 214,481 Production equipment 30,181,761 30,559,275 4,732,109 Total property and equipment 36,359,337 37,042,280 5,736,005 Less: accumulated depreciation (6,602,458) (9,135,200) (1,414,588) Less: Impairment for property and equipment — (768,312) (118,973) Property and equipment, net ¥ 29,756,879 ¥ 27,138,768 $ 4,202,444 Depreciation expenses was ¥1,096,772, ¥1,582,461 and ¥2,773,122 ($429,419) for the years ended June 30, 2019, 2020 and 2021, respectively. Impairment loss for the property and equipment was ¥nil, ¥nil and ¥768,312 ($118,973) for the years ended June 30, 2019, 2020 and 2021. As one of the Company’s subsidiaries decided to change its business strategy, its current properties and equipment were not able to generate enough future cashflow. Thus the Company decided to record full impairment of those properties and equipment during the year ended June 30, 2021. Gain from property and equipment disposal was ¥nil and 89,156 for the years ended June 30, 2019 and 2020, respectively. Loss from property and equipment disposal was ¥19,590 ($3,034) for the year ended June 30, 2021. |
BUSINESS ACQUISITION AND INVEST
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | 12 Months Ended |
Jun. 30, 2021 | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | NOTE 10 . BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (a) Step Acquisition of Future Gas Station (Beijing) Technology, Ltd (“FGS”) On August 21, 2018, the Company entered into a definitive investment agreement and a supplemental agreement (collectively, the “Agreement”) with FGS and the other shareholders of FGS. Following full performance under the Agreement, Recon will own 43% of FGS. As consideration for increasing its affiliates’ interest in FGS from 8% to 43%, the Company will (1) pay a total of RMB 10 million in cash to FGS and (2) issue 487,057 restricted Class A Ordinary Shares of the Company (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording the Company’s corresponding interest at the local governmental agency. If FGS does not reach certain performance goals, the Company has the right to cancel all of the Restricted Shares and without further payment. The Restricted Shares are also subject to lock-up period requirements that vary for each of FGS shareholders, from one year to three years following issuance of the Restricted Shares. FGS has finalized recording Recon’s corresponding interest at the local governmental agency, and Recon has issued 487,057 Restricted Shares in total to the other shareholders of FGS in August 2018. On September 24, 2019, the Company signed an extension agreement with FGS and the other shareholders of FGS to postpone the Agreement to provide extra period for FGS to further fulfill the goals mentioned on the supplemental agreement. During the original contract period, FGS adjusted its operation model with an advanced improvement of its mobile applications and business model. Objected user and average Gross Merchandise Volume (“GMV”) of FGS’ mobile applications have been exceeded. FGS will need an extension to deploy its business in more provinces to complete a goal of 200 more gas stations. On March 17, 2020, the Company signed a new supplemental agreement with FGS and the other shareholders of FGS to extend another 12 months to February 2021 for FGS and its shareholders to fulfill the goals mentioned on the supplemental agreement. As of December 31, 2020, the Company owned 43% of the equity interests of FGS. The investments are accounted for using the equity method because the Company has significant influence, but no control of FGS. The Company recorded a (¥959,905) investment loss, ¥462,879 investment income and (¥251,296) ($38,913) investment loss for the years ended June 30, 2019, 2020 and 2021 from the investment, respectively, which was included in “Income (loss) from investment in unconsolidated entity” in the consolidated statements of operations and comprehensive loss. On February 8, 2021, and pursuant to FGS’ shareholder meeting resolution dated January 13, 2021 (“Acquisition Date”), two of the Company’s subsidiaries entered into the fourth supplemental agreement to the investment agreement with FGS and FGS’ founding shareholders to acquire 8% equity ownership of FGS, as an exchange for waiver of the requirement on FGS’ performances goal about the number of gas stations and cancellation of the related lock-up terms on the 487,057 restricted shares of the Company (reflecting the effect of one-for- five The Company retained independent appraisers to advise management in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date. The fair values of the identifiable assets and liabilities as at the date of the acquisitions are summarized in the following table: RMB U.S. Dollars Cash ¥ 471,843 $ 73,065 Trade accounts receivable, net 831,049 128,688 Other receivables, net 144,285 22,343 Contract costs, net 75,250 11,652 Prepaid expenses 91,132 14,112 Property and equipment, net 118,130 18,292 Intercompany receivables* 6,850,000 1,060,724 Intangible assets- customer relationship 7,000,000 1,083,951 Goodwill 6,996,895 1,083,471 Trade accounts payable (1,032,078) (159,817) Other payables (1,273,182) (197,152) Other payable- related parties (479,959) (74,322) Deferred revenue (39,786) (6,161) Accrued payroll and employees’ welfare (1,629,519) (252,331) Taxes payable (64,253) (9,950) Deferred tax liability (1,050,000) (162,592) Total ¥ 17,009,807 $ 2,633,973 Cash considerations — — Deemed equity consideration to acquire 8% equity interest in FGS 1,689,807 261,667 Fair value of previously held equity interest 30,530,000 4,727,577 Non-controlling interest 34,790,000 5,387,239 Capital contribution receivable due from non-controlling Interest (50,000,000) (7,742,510) Total ¥ 17,009,807 $ 2,633,973 *Intercompany receivables from Nanjing Recon and BHD are eliminated upon consolidation. The noncontrolling interest has been recognized at fair value net with subscription receivable on the acquisition date. Goodwill and intangible assets The excess of purchase price over the fair value of assets acquired and liabilities assumed of the business acquired was recorded as goodwill. The goodwill is not expected to be deductible for tax purposes. The identifiable goodwill acquired and the carrying value as of June 30, 2021 is as follows: Preliminary Fair Value RMB U.S. Dollars Goodwill ¥ 6,996,895 $ 1,083,471 Less: impairment — — The carrying value of goodwill as of June 30,2021 6,996,895 1,083,471 The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives is as follows: Average Useful Life Preliminary Fair Value (in Years) RMB U.S. Dollars Intangible assets - customer relationship ¥ 7,000,000 $ 1,083,951 10 Less: accumulated amortization (350,000) (54,198) Total intangible assets, net as of June 30,2021 6,650,000 1,029,754 The amortization expense of customer relationship was ¥350,000 ($54,198) for the year ended June 30, 2021. The Company began to consolidate the financial results of FGS since January 2021, which includes ¥2,567,807 ($397,625) in net sales and ¥2,156,135 ($333,878) in net loss of FGS was reflected in the Company’s financial results for the year ended June 30, 2021. The following unaudited pro forma condensed financial information presents the combined results of operation for the fiscal year ended June 30, 2021 of the Company and FGS. Pro Forma Combined For the year ended June 30, 2021 Recon FGS Combined Revenues ¥ 45,370,768 ¥ 6,393,216 ¥ 51,763,984 Net loss (19,433,300) (2,362,502) (21,795,802) Loss per common share - basis and diluted ¥ (1.53) ¥ (0.19) ¥ (1.72) Weighted average shares - basic and diluted 12,697,024 12,697,024 12,697,024 (b) Investment in Starry Blockchain Energy Pte. Ltd. (“Starry”) On June 3, 2021, Company entered into a share exchange agreement (the “Agreement”) with Starry, an innovative blockchain and sustainable energy technological company, and the controlling shareholders of Starry (the “Starry Controlling Shareholders”) to acquire 30% of the equity interest in Starry. Pursuant to the terms of the Agreement, the signing parties agreed that the value of 30% of the equity interest in Starry is $3,000,000. As consideration to acquire Starry’s 30% equity interest, the Company issued 316,345 unregistered, restricted Class A Ordinary Shares, based on $9.48 per share, the average closing price in the 30 trading days prior to signing this Agreement, to the Starry Controlling Shareholders. Fair value of the shares issued on the investment date, which was June 3, 2021, was ¥27,675,450, or $4,327,600, based on the closing price of $13.80 per share. As of June 30, 2021, the Company recorded an investment loss of ¥15,411 ($2,386) during the year ended June 30, 2021. |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | NOTE 11. LEASES Effective July 1, 2019, the Company adopted the new lease accounting standard. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities of ¥1,228,963 ($190,305) and ¥1,228,963 ($190,305), respectively, as of July 1, 2019 with no impact on accumulated deficit. Financial position for reporting periods beginning on or after July 1, 2019, are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company leases office spaces and factories under non-cancelable operating leases, with terms ranging from one The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related assets and liabilities recorded on the balance sheets: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Rights of use lease assets ¥ 2,549,914 ¥ 7,925,930 $ 1,227,332 Operating lease liabilities – current 1,328,976 2,226,832 344,825 Operating lease liabilities – non-current 1,210,088 4,792,101 742,058 Total operating lease liabilities ¥ 2,539,064 ¥ 7,018,933 $ 1,086,883 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2021: June 30, 2020 June 30, 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.57 2.59 Weighted average discount rate 5 % 5 % Operating lease costs and short-term lease costs for the year ended June 30, 2020 were ¥1,348,742 and ¥1,142,417, respectively. Operating lease costs and short-term lease costs for the year ended June 30, 2021 were ¥2,034,105 ($314,982) and ¥1,291,685 ($200,018), respectively. The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2021: Twelve months ending June 30, RMB U.S. Dollars 2022 ¥ 3,820,677 $ 591,633 2023 3,002,494 464,937 2024 1,953,178 302,449 Total lease payments 8,776,349 1,359,019 Less: imputed interest (459,947) (71,223) Less: prepayments (1,297,469) (200,913) Present value of lease liabilities 7,018,933 1,086,883 Less: operating lease liabilities – current (2,226,832) (344,825) Operating lease liabilities – non-current ¥ 4,792,101 $ 742,058 |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Jun. 30, 2021 | |
OTHER PAYABLES | |
OTHER PAYABLES | NOTE 12. OTHER PAYABLES Other payables consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Parties RMB RMB U.S. Dollars Service ¥ 1,685,449 ¥ 7,940,481 $ 1,229,586 Distributors and employees 273,968 1,488,329 230,468 Accrued expenses 402,699 206,051 31,907 Others 247,370 227,901 35,290 Total ¥ 2,609,486 ¥ 9,862,762 $ 1,527,251 June 30, June 30, June 30, 2020 2021 2021 Related Parties RMB RMB U.S. Dollars Expenses paid by the major shareholders ¥ 3,752,353 ¥ 1,594,543 $ 246,916 Due to family members of the owners of BHD and FGS 485,000 545,159 84,418 Due to management staff for costs incurred on behalf of the Company 260,965 260,965 40,410 Total ¥ 4,498,318 ¥ 2,400,667 $ 371,744 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Jun. 30, 2021 | |
TAXES PAYABLE | |
TAXES PAYABLE | NOTE 13. TAXES PAYABLE Taxes payable consisted of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars VAT payable ¥ 660,278 ¥ 643,896 $ 99,707 Income tax payable 440,030 440,030 68,139 Other taxes payable 7,980 165,068 25,561 Total taxes payable ¥ 1,108,288 ¥ 1,248,994 $ 193,407 |
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS | 12 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM BANK LOANS | |
SHORT-TERM BANK LOANS | NOTE 14. SHORT-TERM BANK LOANS Short-term bank loans consisted of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Bank of Nanjing (1) ¥ 2,500,000 ¥ 4,000,000 $ 619,401 Beijing Rural Commercial Bank (2) 6,000,000 10,000,000 1,548,502 Industrial and Commercial Bank of China (3) 1,020,000 — — China Construction Bank (4) — 1,000,000 154,850 Total short-term bank loans ¥ 9,520,000 ¥ 15,000,000 $ 2,322,753 (1) On June 1, 2020, the Company entered into a loan agreement with Bank of Nanjing to borrow ¥ 2,500,000 ($387,126) as working capital for one year , with maturity date of May 21, 2021. The loan was repaid in full upon maturity. On June 23, 2020, the Company entered into another loan agreement with Bank of Nanjing to borrow ¥1,500,000 ($232,275) as working capital for one year. The Company made the withdraw in an amount of ¥1,500,000 ($232,275) on July 1, 2020, which will be due on July 1, 2021. The loan was repaid in full upon maturity. On June 21, 2021, the Company entered into another loan agreement with Bank of Nanjing to borrow ¥2,500,000 ($387,126) as working capital for one year, with maturity date of June 17, 2022. All these loans bear a fixed interest rate of 4.35% per annum and are guaranteed by one of the founders of the Company. (2) On April 23, 2020, the Company entered into a loan agreement with Beijing Rural Commercial Bank to borrow ¥ 6,000,000 ($929,101) as working capital for one year . The Company made the withdraw in an amount of ¥ 6,000,000 ($929,101) on April 30, 2020, which will be due on April 29, 2021. The loan bears a fixed interest rate of 5.655% per annum. The loan was guaranteed by one of the founders of the Company and he also pledged self-owned housing property with carrying value of approximately RMB 15.6 million ($2,416,592) as collateral for this loan. The loan was repaid in full upon maturity. On April 15, 2020, the Company entered into a loan agreement with Beijing Rural Commercial Bank to borrow ¥ 10,000,000 ($1,548,502) as working capital for one year . The Company made the first withdraw in an amount of ¥ 5,600,000 ($867,161) on April 23, 2021, which will be due on April 20, 2022. The Company made second withdraw in an amount of ¥ 4,400,000 ($681,341) on May 18, 2021, which will be due on May 11, 2022. The loan bears a fixed interest rate of 4.6% per annum. The loan is guaranteed by one of the founders of the Company and he also pledged self-owned housing property with carrying value of approximately RMB 17.6 million ($2,722,267) as collateral for this loan. (3) On May 22, 2020, the Company entered into a loan agreement with Industrial and Commercial Bank of China to borrow ¥ 1,020,000 ($157,947) as working capital for six months , with maturity date of November 18, 2020. The loan bears a fixed interest rate of 4.45% per annum. The loan was repaid in full upon maturity. On November 19, 2020, the Company entered into another loan agreement with Industrial and Commercial Bank of China to borrow ¥1,020,000 ($157,947) as working capital for six months, with maturity date of May 18, 2021. The loan bears a fixed interest rate of 3.85% per annum. The loan was repaid in full upon maturity. (4) On July 10, 2020, the Company entered into a loan agreement with China Construction Bank to borrow ¥ 1,000,000 ( $154,850 ) as working capital for one year , with maturity date of July 10, 2021. The loan bears a fixed interest rate of 4.0525% per annum. The loan was repaid in full upon maturity. Interest expense for the short-term bank loans was ¥2,749, ¥203,049 and ¥602,124 ($93,239) for the years ended June 30, 2019, 2020 and 2021, respectively. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | NOTE 15. SHORT-TERM BORROWINGS Short-term borrowings due to third parties consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Short-term borrowings due to third parties: RMB RMB U.S. Dollars Short-term borrowing, 15% annual interest, due on September 23, 2021 ¥ 200,000 ¥ 230,000 $ 35,616 Short-term borrowing, interest-free, due on May 12, 2022 — 200,000 30,970 Short-term borrowing, interest-free, due on June 21, 2022 — 100,000 15,485 Total short-term borrowings due to third parties ¥ 200,000 ¥ 530,000 $ 82,071 Interest expense for short-term borrowings due to third parties were ¥ 81,096, ¥nil and ¥ 30,000 ($4,646) for the years ended June 30, 2019, 2020 and 2021, respectively. Short-term borrowings due to related parties consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Short-term borrowings due to related parties: RMB RMB U.S. Dollars Short-term borrowing from a Founder, 5.65% annual interest, due on December 19, 2020* ¥ 5,008,640 ¥ — $ — Short-term borrowing from a Founder, 4.55% annual interest, due on March 25, 2021* 4,002,106 — — Short-term borrowing from a Founder, interest-free, due on September 24, 2020* 450,000 — — Short-term borrowing from a Founder’s family member, interest-free, due on December 31, 2020* 770,000 — — Short-term borrowing from a Founder, 4.35% annual interest, due on December 21, 2021 — 5,006,042 775,187 Short-term borrowing from a Founder, 4.35% annual interest, due on March 25, 2022 — 4,000,000 619,401 Short-term borrowing from a Founder’s family member, 0% annual interest, due on December 31, 2021 — 670,000 103,750 Short-term borrowing from a Founder’s family member, 0% annual interest, due on March 24, 2022 — 3,000,000 464,550 Total short-term borrowings due to related parties ¥ 10,230,746 ¥ 12,676,042 $ 1,962,888 No short-term borrowings due to related parties were guaranteed or collateralized at June 30, 2020 and 2021. Interest expense for short-term borrowings due to related parties was ¥ 508,474, ¥ 506,358 and ¥ 433,281 ($67,094) for the years ended June 30, 2019, 2020 and 2021, respectively. * The Company repaid the loans in full on maturity date. |
LONG-TERM BORROWINGS DUE TO REL
LONG-TERM BORROWINGS DUE TO RELATED PARTY | 12 Months Ended |
Jun. 30, 2021 | |
LONG-TERM BORROWINGS DUE TO RELATED PARTY | |
LONG-TERM BORROWINGS DUE TO RELATED PARTY | NOTE 16. LONG-TERM BORROWINGS DUE TO RELATED PARTY Long-term borrowings due to related party consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Long-term borrowings due to related party: RMB RMB U.S. Dollars Long-term borrowing from a Founder, monthly payments of ¥126,135 inclusive of interest at 8.90%, ten years loan, due in November 2027. ¥ 8,226,599 ¥ 7,406,617 $ 1,146,916 Less: current portion (847,346) (920,066) (142,472) Total long-term borrowings due to related party ¥ 7,379,253 ¥ 6,486,551 $ 1,004,444 No long-term borrowings due to related party were guaranteed or collateralized at June 30, 2020 and 2021. Interest expense for long-term borrowings due to related party was ¥ 826,895, ¥763,220 and ¥693,641 ($107,410) for the years ended June 30, 2019, 2020 and 2021, respectively. The future maturities of long-term borrowings due to related party at June 30, 2021 are as follows: Twelve months ending June 30, RMB U.S. Dollars 2022 ¥ 920,066 $ 142,472 2023 975,474 151,052 2024 1,065,921 165,058 2025 1,164,755 180,363 2026 1,272,753 197,086 Thereafter 2,007,648 310,885 Total ¥ 7,406,617 $ 1,146,916 |
CLASS A ORDINARY SHARES
CLASS A ORDINARY SHARES | 12 Months Ended |
Jun. 30, 2021 | |
CLASS A ORDINARY SHARES | |
CLASS A ORDINARY SHARES | NOTE 17. CLASS A ORDINARY SHARES Stock offering On August 21, 2018, the Company entered into a definitive investment agreement and a supplemental agreement (collectively, the “Agreement”) with FGS and the other shareholders of FGS. Following full performance under the Agreement, Recon will own 43% of FGS. As consideration for increasing its affiliates’ interest in FGS from 8% to 43%, the Company will (1) pay a total of RMB 10 million in cash to FGS and (2) issue 487,057 restricted Class A Ordinary Shares of the Company (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording the Company’s corresponding interest at the local governmental agency. If FGS does not reach certain performance goals, the Company has the right to cancel without further payment part or all of the Restricted Shares. The Restricted Shares are also subject to lock-up period requirements that vary for each FGS shareholder, from two and a half years to four and a half years following issuance of the Restricted Shares under the supplemental agreement dated March 17, 2020. FGS has finalized recording Recon’s corresponding interest at the local governmental agency, and Recon issued 487,057 Restricted Shares in total to the other shareholders of FGS at a price of $6.4375 per restricted share on September 21, 2018. On December 10, 2019, the Company’s Board approved to effect a one-for- five On May 21, 2020 and June 26, 2020, the Company and certain institutional investors (the “Purchasers”) entered into certain securities purchase agreements, pursuant to which the Company sold to such Purchasers an aggregate of 911,112 and 1,680,000 Class A Ordinary Shares, respectively, par value $0.0925 per share in a registered direct offering and warrants to purchase up to 911,112 and 1,680,000 Class A Ordinary Shares in a concurrent private placement, respectively, for gross proceeds of approximately $2.1 million and $2.1 million, respectively, before deducting the placement agent’s fees and other estimated offering expenses of approximately $0.3 million and $0.2 million, respectively. The net proceeds from these purchase agreements were approximately $1.7 million and $1.9 million, respectively. On April 5, 2021, the Company held its annual general meeting of shareholders (the “Annual Meeting”) for the fiscal year ended June 30, 2020. At the Annual Meeting, the Company’s shareholders approved a special resolution that the authorized share capital of the Company be amended from US$1,850,000 divided into 20,000,000 Class B Ordinary Shares of a nominal or par value of US$0.0925 each, to US$15,725,000 divided into 150,000,000 Class A Ordinary Shares of a nominal or par value of US$0.0925 each, and 20,000,000 Class B Ordinary Shares of a nominal or par value of US$0.0925 each. The change from Ordinary Shares to Class A Ordinary Shares is reflected with the NASDAQ Capital Market and in the marketplace at the open of business on April 12, 2021, whereupon the Class A Ordinary Shares began trading. The Company’s Class A Ordinary Shares will continue to trade on the NASDAQ Capital Market under the symbol “RCON” and under the CUSIP Number of G7415M124. Holders of Class A Ordinary Shares and Class B Ordinary Shares shall at all times vote together as one class on all resolutions submitted to a vote by the Members. Each Class A Ordinary Share shall be entitled to one (1) vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall be entitled to fifteen (15) votes on all matters subject to vote at general meetings of the Company. On June 14, 2021, the Company and certain institutional investors (the “Purchasers”) entered into that certain securities purchase agreement (the “Purchase Agreement”), pursuant to which the Company agreed to sell to such Purchasers an aggregate of 6,014,102 Class A Ordinary Shares, par value $0.0925 per share and 2,800,000 pre-funded warrants (the “Pre-Funded Warrants”) to purchase Class A Ordinary Shares in a registered direct offering, and warrants to purchase up to 8,814,102 Class A Ordinary Shares (the “Warrants”) in a concurrent private placement, for gross proceeds of approximately $55.0 million (the “Offering”) before deducting the placement agent’s fees and other offering expenses in an aggregate amount of ¥30,408,264, or $4.7 million. The following table summarizes the Company’s Pre-Funded Warrants activities and status of Pre-Funded Warrants at June 30, 2021: Weighted Average Average Remaining Pre-Funded Exercise Price Period Pre-Funded Warrants Warrants Per Share (Years) Outstanding as of June 30, 2019 — $ — — Issued — — — Forfeited — — — Exercised — — — Expired — — — Outstanding as of June 30, 2020 — $ — — Issued 2,800,000 0.01 — Forfeited — — — Exercised (1,330,000) 0.01 — Expired — — — Outstanding as of June 30, 2021 1,470,000 $ 0.01 5.38 Appropriated Retained Earnings According to the Memorandum and Articles of Association, the Company is required to transfer a certain portion of its net profit, as determined under PRC accounting regulations, from current net income to the statutory reserve fund. In accordance with the PRC Company Law, companies are required to transfer 10% of their profit after tax, as determined in accordance with PRC accounting standards and regulations, to the statutory reserves until such reserves reach 50% of the registered capital or paid-in capital of the companies. As of June 30, 2020 and 2021, the balance of total statutory reserves was ¥4,148,929 and ¥4,148,929 ($642,462), respectively. |
COMMON STOCK PURCHASE WARRANTS
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS | 12 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS | |
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS | NOTE 18. COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS In May and June 2020, the Company consummated two offerings. In connection with the offering, the Company issued to the investors warrants to purchase an aggregate of 911,112 common shares at an exercise price of $2.25 per common share, which was amended to $1.25 per common share on the second offering on June 30, 2020. These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on May 26, 2020 and expire on November 25, 2025. The fair value of these warrants, using the Black-Scholes option pricing model, on the date of issuance was $1,689,389. Variables used in the option-pricing model include (1) risk-free interest rate at the date of grant (0.40%), (2) expected warrant life of 5.5 years, (3) expected volatility of 99.50%, and (4) expected dividend yield of 0. As of June 30, 2021, all warrants were exercised and all the underlying shares were issued. In June 2020, the Company issued to the investors warrants to purchase an aggregate of 1,680,000 common shares at an exercise price of $1.25 per common share. These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on June 30, 2020 and expire on December 30, 2025. The fair value of these warrants, using the Black-Scholes option pricing model, on the date of issuance was $1,639,333. Variables used in the option-pricing model include (1) risk-free interest rate at the date of grant (0.35%), (2) expected warrant life of 5.5 years, (3) expected volatility of 104.26%, and (4) expected dividend yield of 0. As of June 30, 2021, all warrants were exercised. In June 2021, the Company issued to some institutional investors warrants to purchase an aggregate of up to 8,814,102 Class A Ordinary Shares. The warrants are subject to deemed-liquidation redemption features and are therefore classified as a liability in accordance with FASB ASC 480. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. The Company established the initial fair value of the warrants at $34,860,000. As of June 30, 2021, the fair value of the warrant liability was $29,520,000. During the period from June 14, 2021 (date of initial measurement) through June 30, 2021, there was change in fair value of warrant liability in an aggregate amount of $5,340,000 recorded as a part of offset to the Company’s net loss for the year. The key inputs into the Black-Scholes model were as follows at their measurement dates: June 14, 2021 June 30, (Initial 2021 measurement) Input Stock price $ 4.33 $ 5.01 Risk-free interest rate 0.95 % 0.90 % Volatility 111 % 111 % Exercise price $ 6.24 $ 6.24 Warrant life 5.5 years 5.5 years The following table presents information about the Company’s warrants that were measured at fair value on a recurring basis as of June 30, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Quoted Prices In Significant Other Significant Other June 30, Active Markets Observable Inputs Unobservable Inputs Description 2021 (Level 1) (Level 2) (Level 3) Liabilities: Warrant liability $ 29,520,000 $ — $ — $ 29,520,000 The following table summarizes the Company’s Warrants activities and status of Warrants at June 30, 2021: Weighted Average Average Remaining Exercise Price Period Warrants Warrants Per Share (Years) Outstanding as of June 30, 2019 — $ — Issued 2,591,112 1.25 Forfeited — — Exercised — — Expired — — Outstanding as of June 30, 2020 2,591,112 $ 1.25 5.5 Issued 8,814,102 6.24 Forfeited — — Exercised (2,591,112) 1.25 Expired — — Outstanding as of June 30, 2021 8,814,102 $ 6.24 5.38 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2021 | |
CONVERTIBLE NOTES PAYABLE | |
CONVERTIBLE NOTES PAYABLE | NOTE 19. CONVERTIBLE NOTES PAYABLE On November 25, 2020, the Company and certain accredited investors (the “Investors”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company sold to the Investors, and the Investors purchased from the Company, in an unregistered private transaction, convertible promissory notes (the “Convertible Notes”) with an aggregate principal amount of $6,485,000, convertible into Class A Ordinary Shares, $0.0925 par value per share of the Company at a rate of $0.71 per Class A Ordinary Share, upon the terms and subject to the limitations and conditions set forth in such Convertible Notes. The Convertible Notes bears interest at a rate of 12% per year and will have a term of six (6) months. The Company will repay the Convertible Notes principal and interest in six (6) equal monthly payments, subject to earlier conversion or repayment. The Holders have the right to convert the Convertible Notes, and the Company has the right to repay the Convertible Notes without penalty, in whole or in part during the term of the Notes. In the event of such early conversion or repayment, the Company has the right to make such payment in shares, cash, or combination of shares and cash, and the amount payable will equal the amount of accrued and outstanding principal and interest on such repaid amount, and the Company will not have any make-whole obligations. Assuming payment of principal and interest entirely in Class A Ordinary Shares and no early conversion or repayment, the Company would issue up to an aggregate of Class A 9,466,137 Ordinary Shares in connection with the Convertible Notes. On January 28, 2021, the Company received the conversion notices from the Investors, and Class A Ordinary Shares totaling 9,225,338 were issued by the Company to the Investors equaling principal and interests amounted to $6,549,990, after the issuance, all the outstanding principle and interests have been converted. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 20. STOCK-BASED COMPENSATION Stock-Based Awards Plan The following is a summary of the stock options activity: Weighted Average Exercise Price Stock Options Shares Per Share Outstanding as of June 30, 2019 163,120 $ 15.20 Granted — — Forfeited — — Exercised — — Expired 53,600 25.75 Outstanding as of June 30, 2020 109,520 $ 10.02 Granted — — Forfeited — — Exercised — — Expired — — Outstanding as of June 30, 2021 109,520 $ 10.02 The following is a summary of the status of options outstanding and exercisable at June 30, 2021: Outstanding Options Exercisable Options Average Average Remaining Remaining Average Exercise Contractual Average Exercise Contractual Price Number life (Years) Price Number life (Years) $ 14.80 29,520 0.74 $ 14.80 29,520 0.74 $ 8.25 80,000 3.59 $ 8.25 80,000 3.59 109,520 The Share-based compensation expense recorded for stock options granted were all ¥nil for years ended June 30, 2019, 2020 and 2021, respectively. No unrecognized share-based compensation for stock options as of June 30, 2021. Restricted Shares to Senior Management As of June 30, 2021, the Company has granted restricted shares of common stock to senior management and employees as follows: On October 13, 2017, the Company granted 180,000 restricted shares to its employees as compensation cost for awards. The fair value of the restricted shares was $919,800 based on the closing stock price $5.11 at October 13, 2017. These restricted shares will vest over three years with one-third of the shares vesting every year from the grant date. All granted shares under this plan are fully vested on October 13, 2020. On August 21, 2018, the Company granted 391,200 restricted shares to its employees as compensation cost for awards. The fair value of the restricted shares was $2,523,240 based on the closing stock price $6.45 at August 21, 2018. These restricted shares will vest over three years with one-third of the shares vesting every year from the grant date. As of June 30, 2021, 260,800 shares were vest and 130,400 will not be vested until August 21, 2021. On September 03,2021, all vested shares were issued. 858,667, 250,086 and 188,662 restricted shares were issued outstanding the The share-based compensation expense recorded for restricted shares issued for management was ¥21,288,204, ¥7,944,835 and ¥6,140,037 ($950,786) for the years ended June 30, 2019, 2020 and 2021, respectively. The total unrecognized share-based compensation expense of restricted shares issued for management and employees as of June 30, 2021 was approximately ¥0.8 million ($0.1 million), which is expected to be recognized over a weighted average period of approximately 0.14 years. Restricted Shares for service As of June 30, 2021, the Company has granted restricted Class A Ordinary Shares to consultants as follows: On August 27, 2018, the Company approved the grant of 5,000 restricted shares with a value of $32,000 based on the closing stock price of $6.40 on August 27, 2018 to a company as payment for promotion PR/IR service. The vesting period of these shares was one year from the date of contract. 5,000 restricted shares were issued under this plan on August 27, 2018 and all granted shares under this plan are fully vested by August 27, 2019. The Share-based compensation expense recorded for restricted shares issued for service was ¥845,781, ¥33,927 and ¥nil for the years ended June 30, 2019, 2020 and 2021, respectively. The total unrecognized share-based compensation expense of restricted shares issued for service as of June 30, 2021 was approximately ¥nil. Following is a summary of the restricted shares granted: Restricted stock grants Shares Non-vested as of June 30, 2019 821,644 Granted — Vested (500,844) Non-vested as of June 30, 2020 320,800 Granted — Vested (190,400) Non-vested as of June 30, 2021 130,400 The following is a summary of the status of restricted stock at June 30, 2021: Outstanding Restricted Shares Average Remaining Fair Value per Amortization Share Number Period (Years) $ 6.45 130,400 0.14 130,400 All the outstanding balances of 130,400 restricted shares were vested by August 2021 and issued on September 3, 2021. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2021 | |
INCOME TAX | |
INCOME TAX | NOTE 21. INCOME TAX The Company is not subject to any income taxes in the United States or the Cayman Islands and had minimal operations in jurisdictions other than the PRC. BHD and Nanjing Recon are subject to PRC’s income taxes as PRC domestic companies. The Company follows Implementing Rules for the Enterprise Income Tax Law (“Implementing Rules”), which took effect on January 1, 2008 and unified the income tax rate for domestic-invested and foreign-invested enterprises at 25%. Nanjing Recon was approved as a government-certified high-technology company and is subject to a reduced income tax rate of 15% through November 30, 2019. Nanjing Recon reapplied for a high-technology company certificate, and the new certificate was approved as November 22, 2019 and will expire on November 22, 2022. As approved by the domestic tax authority in the PRC, BHD was recognized as a government-certified high-technology company on November 25, 2009 and is subject to a reduced income tax rate of 15% through November 25, 2018. BHD reapplied for a high-technology company certificate, and the new certificate was approved as October 31, 2018 and will expire on October 31, 2021. Gain (loss) before provision for income taxes consisted of: For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Outside China areas ¥ (28,447,953) ¥ (10,160,525) ¥ 4,011,449 $ 621,174 China 3,064,024 (9,679,757) (30,402,528) (4,707,838) Total ¥ (25,383,929) ¥ (19,840,282) ¥ (26,391,079) $ (4,086,664) Deferred tax asset, net is composed of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Deferred tax assets: Allowance for credit losses ¥ 1,180,160 ¥ 2,137,968 $ 331,065 Impairment for inventory — 160,791 24,899 Impairment loss from investment in unconsolidated entity 605,660 — — Net operating loss carryforwards 10,441,633 15,741,037 2,437,503 Subtotal ¥ 12,227,453 ¥ 18,039,796 $ 2,793,467 Less: Valuation allowance (12,162,660) (17,427,464) (2,698,647) Total deferred tax assets ¥ 64,793 ¥ 612,332 $ 94,820 Deferred tax Liability: Accelerated amortization of intangible assets ¥ (64,793) ¥ (92,032) $ (14,251) Gain on the previously held equity method investment — (146,888) (22,746) Recognition of customer relationship arising from business combinations — (997,500) (154,463) Total deferred tax liability ¥ (64,793) ¥ (1,236,420) (191,460) Deferred tax liability, net ¥ — ¥ (624,088) $ (96,640) Following is a reconciliation of income tax expense (benefit) at the effective rate to income tax at the calculated statutory rates: For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Income tax benefits calculated at PRC statutory rates ¥ (6,318,111) ¥ (4,960,454) ¥ (6,597,770) $ (1,021,666) Nondeductible expenses and others (56,127) 232,213 338,058 52,348 Effect of tax rate differential 6,378,169 2,008,824 626,245 96,974 Benefit of revenue exempted from enterprise income tax (279,352) (266,548) (57,250) (8,865) Change in valuation allowances 673,898 3,268,287 5,264,804 815,256 Tax refund — — (98,338) (15,227) Provision (benefit) for income tax ¥ 398,477 ¥ 282,322 ¥ (524,251) $ (81,180) The Company’s income tax expense (benefit) is comprised of the following: For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Current income tax provision (benefit) ¥ 398,477 ¥ 282,322 ¥ (98,338) $ (15,228) Deferred income tax benefit — — (425,913) (65,952) Expense (benefit) for income tax ¥ 398,477 ¥ 282,322 ¥ (524,251) $ (81,180) |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Jun. 30, 2021 | |
NON-CONTROLLING INTEREST | |
NON-CONTROLLING INTEREST | NOTE 22. NON-CONTROLLING INTEREST Non-controlling interest consisted of the following: As of June 30, 2020 Nanjing Gan Su Qinghai BHD Recon BHD BHD Total Total RMB RMB RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,755,000 ¥ — ¥ 6,606,000 $ 934,406 Unappropriated retained earnings 3,477,493 3,616,002 (2,100,871) (953,395) 4,039,229 571,342 Accumulated other comprehensive loss (18,850) (11,853) — — (30,703) (4,343) Total non-controlling interests ¥ 5,109,643 ¥ 3,804,149 ¥ 2,654,129 ¥ (953,395) ¥ 10,614,526 $ 1,501,405 As of June 30, 2021 Nanjing Gan Su Qinghai BHD Recon BHD BHD FGS Total Total RMB RMB RMB RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,805,000 ¥ — ¥ — ¥ 6,656,000 $ 1,030,683 Capital contribution receivable due from non-controlling Interest — — — — (50,000,000) (50,000,000) (7,742,510) Unappropriated retained earnings 3,477,493 3,616,002 (4,106,883) (1,442,443) (539,034) 1,005,135 155,645 Accumulated other comprehensive loss (18,850) (11,853) — — — (30,703) (4,754) Noncontrolling interest recognized upon business acquisiton — — — — 34,790,000 34,790,000 5,387,238 Total non-controlling interests ¥ 5,109,643 ¥ 3,804,149 ¥ 698,117 ¥ (1,442,443) (15,749,034) ¥ (7,579,568) $ (1,173,698) The Company received capital contribution from non-controlling shareholders of Gan Su BHD amounted to ¥850,000, ¥405,000 and ¥50,000 ($7,743) during the years ended June 30, 2019, 2020 and 2021, respectively. The Company returned ¥200,000 paid in capital back to one of the individual shareholders of Qing Hai BHD during the year ended June 30, 2019. The Company had capital contribution receivable due from non-controlling Interest of FGS amounted to ¥50,000,000 ($7,742,510) as of June 30, 2021. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Jun. 30, 2021 | |
CONCENTRATIONS | |
CONCENTRATIONS | NOTE 23. CONCENTRATIONS For the year ended June 30, 2019, CNPC represented 39% and another two customers represented 24% and 12% of the Company’s revenue, respectively. At June 30, 2019, CNPC accounted for 31% and another three customers accounted for 18%, 14% and 10% of the Company’s trade accounts receivable, net, respectively. For the year ended June 30, 2020, CNPC represented 39% and another two customers represented 31% and 17% of the Company’s revenue, respectively. At June 30, 2020, CNPC accounted for 36% and another two customers accounted for 11% and 10% of the Company’s trade accounts receivable, net, respectively. For the year ended June 30, 2021, CNPC represented 39%, SINOPEC represented 22% of the Company’s revenue, respectively. At June 30, 2021, CNPC accounted for 29%, SINOPEC represented 13% and another two customers accounted for 19% and 14% of the Company’s trade accounts receivable, net, respectively. |
COMMITMENTS AND CONTINGENCY
COMMITMENTS AND CONTINGENCY | 12 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCY | |
COMMITMENTS AND CONTINGENCY | NOTE 24. COMMITMENTS AND CONTINGENCY (a) Contingency The Labor Contract Law of the PRC requires employers to assure the liability of severance payments if employees are terminated and have been working for the employers for at least two years prior to January 1, 2008. The employers will be liable for one month of severance pay for each year of the service provided by the employees. As of June 30, 2021, the Company estimated its severance payments of approximately ¥6.3 million ($0.9 million) which has not been reflected in its consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future. (b) Purchase commitment The total future minimum purchase commitment under the non-cancellable purchase contracts as of June 30, 2021 are payable as follows: Twelve months ending June 30, Minimum purchase commitment 2022 ¥ 8,099,019 $ 1,254,135 2023 300,000 46,455 2024 300,000 46,455 2025 300,000 46,455 2026 150,000 23,228 Thereafter — — Total minimum payments required ¥ 9,149,019 $ 1,416,728 (c) Office Leases Commitment - short term The Company entered into several non-cancellable operating lease agreements for office spaces and factories. Future payments under such leases were included in lease liabilities as disclosed in Note 11, other than those within under lease agreements within one year which are disclosed as follows as of June 30, 2021: Twelve months ending June 30, RMB U.S. Dollars 2022 ¥ 511,508 $ 79,207 Total ¥ 511,508 $ 79,207 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | NOTE 25. RELATED PARTY TRANSACTIONS AND BALANCES Sales to related party – For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Urumqi Yikeli Automatic Control Equipment Co., Ltd. ¥ 3,726,894 ¥ — ¥ 85,657 $ 13,264 Total revenues from related party ¥ 3,726,894 ¥ — ¥ 85,657 $ 13,264 Prepaid expenses - related parties June 30, 2020 June 30, 2021 June 30, 2019 RMB RMB U.S. Dollars Founders ¥ — ¥ 363,000 $ 56,210 Founders’ family member — 70,000 10,840 Total prepaid expenses - related parties ¥ — ¥ 433,000 $ 67,050 Leases from related parties - The details of leases from related parties are as below: Monthly Rent Monthly Rent Lessee Lessor Rent Period RMB USD Nanjing Recon One of the Founders April 1, 2020 - March 31, 2022 ¥ 40,000 $ 6,194 BHD One of the Founders Jan 1, 2021- Dec 31, 2021 22,500 3,484 BHD One of the Founders Mar 1, 2021 - Dec 31, 2021 31,667 4,904 BHD Founders’ family member May 1, 2021 - Dec 31, 2021 12,500 1,936 As of June 30, 2020, the operating lease ROU assets and corresponding operating lease liabilities of leases from related parties was ¥803,503 and ¥803,503, respectively. As of June 30, 2021, the operating lease ROU assets and corresponding operating lease liabilities of leases from related parties was ¥352,775 ($54,627) and ¥352,775 ($54,627), respectively. Guarantee/collateral related parties |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Jun. 30, 2021 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE 26. VARIABLE INTEREST ENTITIES VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Summary information regarding consolidated VIEs is as follows: June 30, 2020 June 30, 2021 June 30, 2021 RMB RMB U.S. Dollars ASSETS Current Assets Cash ¥ 6,388,098 ¥ 4,293,380 $ 664,831 Notes receivable 4,180,885 6,305,633 976,429 Trade accounts receivable, net 44,031,079 24,762,732 3,834,514 Trade accounts receivable- related party, net 3,068,920 — — Inventories, net 1,985,723 3,644,522 564,355 Other receivables, net 6,342,009 5,988,641 927,342 Loans to third parties 3,200,377 1,350,000 209,048 Purchase advances, net 75,195 1,078,137 166,950 Contract costs, net 31,537,586 48,795,906 7,556,056 Prepaid expenses 42,294 — — Prepaid expenses- related parties — 433,000 67,050 Total current assets 100,852,166 96,651,951 14,966,575 Property and equipment, net 29,756,879 27,138,768 4,202,444 Land use right, net 1,280,648 1,253,408 194,090 Customer relationship — 6,650,000 1,029,754 Investment in unconsolidated entity 4,000,000 — — Long-term other receivables, net 3,640 114,679 17,758 Goodwill — 6,996,895 1,083,471 Right of use assets 2,549,914 7,925,930 1,227,332 Total Assets ¥ 138,443,247 ¥ 146,731,631 $ 22,721,424 LIABILITIES Short-term bank loan ¥ 9,520,000 ¥ 15,000,000 $ 2,322,753 Trade accounts payable 18,903,080 18,182,770 2,815,606 Other payables 1,115,209 2,096,830 324,695 Other payable- related parties 3,113,460 1,253,797 194,151 Advance from customers 3,486,033 7,686,276 1,190,221 Accrued payroll and employees’ welfare 850,841 1,565,898 242,480 Intercompany payables* 88,134,791 95,284,791 14,754,869 Taxes payable 1,108,265 1,249,052 193,416 Short-term borrowings 200,000 530,000 82,071 Short-term borrowings - related parties 10,230,746 12,676,042 1,962,888 Long-term borrowings - related party - current portion 847,346 920,066 142,472 Operating lease liabilities - current 1,328,976 2,226,832 344,825 Total current liabilities 138,838,747 158,672,354 24,570,447 Operating lease liabilities - non-current 1,210,088 4,792,101 742,058 Long-term borrowings - related party 7,379,253 6,486,551 1,004,444 Deferred tax liability — 624,088 96,640 Total Liabilities ¥ 147,428,088 ¥ 170,575,094 $ 26,413,589 *Intercompany payables are eliminated upon consolidation. The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2019 includes revenues of ¥102,384,327, operating expenses of ¥21,501,642, and net income of ¥3,500,635. The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2020 includes revenues of ¥45,681,441, operating expenses of ¥20,811,514, and net loss of ¥10,563,458. The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2021 includes revenues of ¥47,817,378 ($7,404,531), operating expenses of ¥33,696,978 ($5,217,984), and net loss of ¥29,155,914 ($4,514,799). |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 27. SEGMENT REPORTING ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has four operating segments: automation product and software, equipment and accessories, oilfield environmental protection and platform outsourcing services. The following tables present summary information by segment for the years ended June 30, 2019, 2020 and 2021, respectively: For the year ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Automation product and software ¥ 63,577,177 ¥ 51,413,830 ¥ 18,535,166 $ 2,870,175 Equipment and accessories 23,951,132 14,222,623 15,791,623 2,445,336 Oilfield environmental protection 14,856,018 124,198 11,043,979 1,710,162 Platform outsourcing services — — 2,567,807 397,625 Total revenue ¥ 102,384,327 ¥ 65,760,651 ¥ 47,938,575 $ 7,423,298 For the year ended June 30, 2021 Automation Equipment Oilfield Platform product and and environmental outsourcing software accessories protection services Total RMB RMB RMB RMB RMB Revenue ¥ 18,535,166 ¥ 15,791,623 ¥ 11,043,979 ¥ 2,567,807 ¥ 47,938,575 Cost of revenue and related tax 19,942,541 11,264,971 8,045,567 1,470,468 40,723,547 Gross profit ¥ (1,407,375) ¥ 4,526,652 ¥ 2,998,412 ¥ 1,097,339 ¥ 7,215,028 Depreciation and amortization ¥ 277,496 ¥ 851,612 ¥ 2,000,952 ¥ 20,729 ¥ 3,150,789 Total capital expenditures ¥ 26,761 ¥ 136,224 ¥ 315,944 ¥ 43,487 ¥ 522,416 Timing of revenue recognition Goods transferred at a point in time ¥ 18,535,166 ¥ 15,791,623 ¥ 9,654,418 ¥ 2,567,807 ¥ 46,549,014 Services rendered over time — — 1,389,561 — 1,389,561 Total revenue ¥ 18,535,166 ¥ 15,791,623 ¥ 11,043,979 ¥ 2,567,807 ¥ 47,938,575 For the year ended June 30, 2020 Automation Equipment Oilfield Platform product and and environmental outsourcing software accessories protection services Total RMB RMB RMB RMB RMB Revenue ¥ 51,413,830 ¥ 14,222,623 ¥ 124,198 ¥ — ¥ 65,760,651 Cost of revenue and related tax 38,257,914 7,683,662 212,679 — 46,154,255 Gross profit ¥ 13,155,916 ¥ 6,538,961 ¥ (88,481) ¥ — ¥ 19,606,396 Depreciation and amortization ¥ 98,756 ¥ 683,522 ¥ 827,422 ¥ — ¥ 1,609,700 Total capital expenditures ¥ 85,975 ¥ — ¥ 3,782,911 ¥ — ¥ 3,868,886 Timing of revenue recognition Goods transferred at a point in time ¥ 10,871,301 ¥ 14,222,623 ¥ — ¥ — ¥ 25,093,924 Services rendered over time 40,542,529 — 124,198 — 40,666,727 Total revenue ¥ 51,413,830 ¥ 14,222,623 ¥ 124,198 ¥ — ¥ 65,760,651 For the year ended June 30, 2019 Automation Equipment Oilfield Platform product and and environmental outsourcing software accessories protection services Total RMB RMB RMB RMB RMB Revenue ¥ 63,577,177 ¥ 23,951,132 ¥ 14,856,018 ¥ — ¥ 102,384,327 Cost of revenue and related tax 49,356,155 15,039,628 8,123,180 — 72,518,963 Gross profit ¥ 14,221,022 ¥ 8,911,504 ¥ 6,732,838 ¥ — ¥ 29,865,364 Depreciation and amortization ¥ 78,760 ¥ 1,018,012 ¥ 27,239 ¥ — ¥ 1,124,011 Total capital expenditures ¥ 162,060 ¥ 1,573,896 ¥ 4,606,823 ¥ — ¥ 6,342,779 Timing of revenue recognition Goods transferred at a point in time ¥ 63,577,177 ¥ 23,951,132 ¥ 14,856,018 ¥ — ¥ 102,384,327 Services rendered over time — — — — — Total revenue ¥ 63,577,177 ¥ 23,951,132 ¥ 14,856,018 ¥ — ¥ 102,384,327 June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Total assets: Automation product and software ¥ 81,743,307 ¥ 156,435,379 $ 24,224,051 Equipment and accessories 61,578,632 160,299,200 24,822,364 Oilfield environmental protection 51,092,865 139,326,144 21,574,682 Platform outsourcing services — 110,455,937 17,104,123 Total Assets ¥ 194,414,804 ¥ 566,516,660 $ 87,725,220 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 28. SUBSEQUENT EVENTS On October 21, 2021, the Company invested RMB1 million, being a 10% equity interest holder, into a technology company focusing on gas station operation and oilfield service business. On November 10, 2021, the Company terminated the investment agreement with Starry. On November 10, 2021, the Company sign a service agreement with Starry Blockchain Energy Pte. Ltd. As the service consideration, the Company will issue 500,000 ordinary shares which will vest in equal monthly amounts through the end of December 31, 2021. These consolidated financial statements were approved by management and available for issuance on November 15, 2021, and the Company has evaluated subsequent events through this date. No subsequent events required adjustments to or disclosure in these consolidated financial statements. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Jun. 30, 2021 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 29 – CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Pursuant to the requirements of Rules 12-04(a), 5-04(c), and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company 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. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirements and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiary and VIEs exceeded 25% of the consolidated net assets of the Company. Therefore, the condensed financial statements for the parent company are included herein. For purposes of the above test, restricted net assets of consolidated subsidiaries and VIEs shall mean that amount of the Company’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 and VIEs in the form of loans, advances, or cash dividends without the consent of a third party. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries and VIEs. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries and VIEs” and the respective profit or loss as “Equity in earnings of subsidiaries and VIEs” on the condensed statements of income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Company did not pay any dividend for the periods presented. As of June 30, 2021 and 2020, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except forthose which have been separately disclosed in the consolidated financial statements, if any. RECON TECHNOLOGY, LTD PARENT COMPANY BALANCE SHEETS (UNAUDITED) As of June 30 As of June 30 As of June 30 2020 2021 2021 RMB RMB U.S. Dollars ASSETS Non-current assets Investment in subsidiaries and VIEs ¥ 110,029,762 ¥ 295,095,034 $ 45,695,526 Total assets ¥ 110,029,762 ¥ 295,095,034 $ 45,695,526 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES ¥ — ¥ — $ — COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Class A common stock, $0.0925 U.S. dollar par value, 150,000,000 shares authorized; 7,202,832 shares and 26,868,391 shares issued outstanding * 4,577,233 16,340,826 2,530,380 Class B common stock, $0.0925 U.S. dollar par value, 20,000,000 shares authorized; no shares issued and outstanding as of June 30, 2020 and June 30, 2021, respectively * — — — Additional paid-in capital 282,505,455 479,490,763 74,249,242 Accumulated deficit (179,878,657) (202,711,391) (31,389,900) Accumulated other comprehensive income 2,825,731 1,974,836 305,804 Total stockholders’ equity 110,029,762 295,095,034 45,695,526 Total liabilities and stockholders’ equity ¥ 110,029,762 ¥ 295,095,034 $ 45,695,526 * Retrospectively restated for effect of stock split on December 27, 2019 and change into dual class structure on April 5, 2021. RECON TECHNOLOGY, LTD PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars EQUITY IN LOSS OF SUBSIDIARIES AND VIES ¥ (25,355,905) ¥ (19,246,701) ¥ (22,832,734) $ (3,535,654) NET LOSS (25,355,905) (19,246,701) (22,832,734) (3,535,654) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 1,393,843 (84,205) (850,895) (131,761) COMPREHENSIVE LOSS ¥ (23,962,062) ¥ (19,330,906) ¥ (23,683,629) $ (3,667,415) RECON TECHNOLOGY, LTD PARENT COMPANY STATEMENTS OF CASH FLOWS (UNAUDITED) For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars CASH FLOWS FROM OPERATING ACTIVITIES: Net loss ¥ (25,355,905) ¥ (19,246,701) ¥ (22,832,734) $ (3,535,654) Adjustments to reconcile net cash flows from operating activities: Equity in earnings of subsidiaries and VIEs 25,355,905 19,246,701 22,832,734 3,535,654 Net cash used in operating activities — — — — CHANGES IN CASH — — — — CASH, beginning of year — — — — CASH, end of year ¥ — ¥ — ¥ — $ — |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation |
Variable Interest Entities | Variable Interest Entities Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. |
Currency Translation | Currency Translation |
Estimates and Assumptions | Estimates and Assumptions The key assumptions underlying the Company’s accounting for material arrangements and the reasonably likely material effects of resolving any uncertainties on the Company’s allowance for credit losses related to purchase advances. The production of the Company’s products requires custom-made equipment from its suppliers. To ensure that it can secure the required customized equipment, the Company often needs to make full prepayment for its intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid in order to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by its client. In order to secure timely purchase delivery and to meet its product delivery schedule, the Company normally prepays for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract which is accounted as pre-contract costs. After winning the bid and securing the sale contract, the Company normally needs to deliver its products approximately within one week to six months. Based on the Company’s historical experience, the Company generally is able to realize its purchase advances on the customized equipment that it orders. If it subsequently confirms that the Company is unable to secure the planned contracts with a customer after making the advance payments for these planned contracts, the Company evaluates the probable recoverability of the pre-contract cost and charges to expenses when the Company determines that the recovery of such pre-contract cost is improbable. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments 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. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Company measures certain financial assets, including investments under the equity method on other-than-temporary basis, intangible assets and fixed assets at fair value when an impairment charge is recognized. The carrying amounts reported in the consolidated balance sheets for trade accounts receivable, other receivables, purchase advances, trade accounts payable, convertible notes payable, accrued liabilities, advances from customers, investment payable, short-term bank loan and short-term borrowings approximate fair value because of the immediate or short-term maturity of these financial instruments. |
Cash | Cash |
Trade Accounts,Net, Other Receivables, Net and Loan to Third Parties | Trade Accounts, Net, Other Receivables, Net and Loan to Third Parties The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of July 1, 2020. Accounts receivable, other receivables and loan to third parties are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its trade and non-trade customers (“customers”) to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in calculation of allowance for credit losses, the potential impact of the COVID-19 pandemic on our customers businesses and their ability to pay their accounts receivable, other receivables and loan to third parties. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions, including the potential impact of the COVID-19 pandemic. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The balance of allowance for credit loss for the year ended June 30, 2021 increased approximately ¥3,543,445 ($548,703) from the year ended June 30, 2020. The Company evaluates the creditworthiness of all of its customers individually before accepting them and continuously monitors the recoverability of accounts receivable, other receivables and loan to third parties. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company considers in determining whether to discontinue sales, record as contra revenue or allowance for credit losses: ● the oil price and fluctuation of the overall oil industry; ● the customer fails to comply with its payment schedule; ● the customer is in serious financial difficulty; ● a significant dispute with the customer has occurred regarding job progress or other matters; ● the customer breaches any of the contractual obligations; ● the customer appears to be financially distressed due to economic or legal factors; ● the business between the customer and the Company is not active; and ● other objective evidence indicates non-collectability of the accounts receivable, other receivables and loan to third parties. The Company considers the following factors when determining whether to permit a longer payment period or provide other concessions to customers: ● the customer’s past payment history; ● the customer’s general risk profile, including factors such as the customer’s size, age, and public or private status; ● macroeconomic conditions that may affect a customer’s ability to pay; and ● the relative importance of the customer relationship to the Company’s business. |
Notes Receivable | Notes Receivable |
Purchase Advances, Net | Purchase Advances, Net - |
Inventories, Net | Inventories, Net |
Property and Equipment, Net | Property and Equipment, Net two Items Useful life Motor vehicles 5-10 years Office equipment 2-5 years Production equipment 10-20 years |
Land Use Rights, Net | Land Use Rights, Net |
Goodwill | Goodwill - |
Intangible assets, net | Intangible assets, net – |
Long-Lived Assets | Long-Lived Assets |
Long-term Investments | Long-term Investments ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The new guidance requires modified retrospective application to all outstanding instruments for fiscal years beginning after December 15, 2017, with a cumulative effect adjustment recorded to opening accumulated deficit as of the beginning of the first period in which the guidance becomes effective. However, changes to the accounting for equity securities without a readily determinable fair value would be applied prospectively. The Company adopted the new financial instruments accounting standard from July 1, 2018. - Equity Investments with Readily Determinable Fair Values - Equity Investments without Readily Determinable Fair Values - Equity Investments Accounted for Using the Equity Method - An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Company recorded ¥nil, ¥nil and ¥nil impairment loss on its equity method investment during the years ended June 30, 2019, 2020 and 2021. The Company recorded a (¥959,905) investment loss, ¥462,879 investment income and (¥266,707) ($41,300) investment loss on its equity method investment in unconsolidated entity during the years ended June 30, 2019, 2020 and 2021. |
Business Combinations | Business Combinations - costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the acquiree, the difference is recognized directly in the consolidated statements of operation and comprehensive loss. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operation and comprehensive loss. In a business combination considered as a step acquisition, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of operation and comprehensive loss. |
Noncontrolling Interests | Noncontrolling Interests - |
Revenue Recognition | Revenue Recognition Disaggregation of Revenues Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following items represent the Company’s revenues disaggregated by revenue source. In accordance with ASC 606-10-50-5, the Company selects categories to present disaggregated revenue that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors and delivery conditions of products and fulfillment of obligations. The Company’s disaggregation of revenues for the years ended June 30, 2019, 2020 and 2021 is disclosed in Note 27. Automation Products and Software; Equipment and Accessories The Company generates revenues primarily through delivery of standard or customized products and equipment, including automation products, furnaces and related accessories. Revenue is recognized when products are delivered, and acceptance reports are signed off by customers. The sale of automation products or specialized equipment when combined with services represent a single performance obligation for the development and construction of a single asset. The Company may also provide design or installation services to clients as there may be such obligation in contracts. The promises to transfer the goods and provision of services are not separately identifiable, which is evidenced by the fact that the Company provides significant services of integrating the goods and services into a single deliverable for which the customer has contracted. For such sales arrangements, the Company recognizes revenue using input method, based on the relationship between actual costs incurred compared to the total estimated costs for the contract. Such method is adopted because the Company believes it best depicts the transfer of goods and services to the customer. Oilfield Environmental Protection Service The Company provides wastewater treatment products and related service to oilfield and chemical industry companies and generates revenue from special equipment, self-developed chemical products and supporting service, transfer. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue when products are delivered, on-site assistance services rendered, and acceptance reports are signed off by customers. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. The Company provides oily sludge disposal and treatment services to oilfield companies and generates revenue from treatment services of oily sludge. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue using output method, based on the percentage-of-completion method. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. Platform Outsourcing Services The Company provides online platform development, maintenance, and operation services to gas stations around different provinces in China to complete online transactions; and API (application programming interface) port export service and related maintain services to business cooperators of different industries that may have transactions in the refueling scenario during the service contract period. The Company considered these performance obligations to be indistinguishable contractual performance obligations. As the Company has no right to get the compensation for any performances completed while not accepted by its customers, the Company can only recognize revenue at a point in time, which is when the online transaction is completed. The Company’s services enable terminal users of different mobile apps runed by its clients or cooperators to complete refueling in cash or online through different payment channels, when each transaction, including refueling and payment, is completed, the Company is entitled to charge with pre-setted rates of each transaction amount as service fee and recognize the underlying amount as revenue. Related fees are generally billed monthly, based on a per transaction basis. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations. For such arrangements, the Company will allocate revenues to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost-plus margin. Contract Balances Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs. The following table provides information about contract costs and contract liabilities from contracts with customers: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Contract costs ¥ 31,537,586 ¥ 48,795,906 $ 7,556,056 Contract liabilities ¥ 3,486,033 ¥ 7,686,276 $ 1,190,221 Contract costs, net - The Company recognizes an asset from the costs incurred to fulfill a contract when those costs meet all of the following criteria: (i) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify; (ii) the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and (iii) the costs are expected to be recovered. - Pre-Contract Costs - Executed Contract Costs Contract liabilities - Contract liabilities are recognized for contracts where payment has been received in advance of performance under the contract. The Company’s contract liabilities consist primarily of the Company’s unsatisfied performance obligations as of the balance sheet dates. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Performance Obligations - Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues, and costs incurred by the Company for the delivery of goods are classified as cost of sales in the consolidated statements of operations and comprehensive loss. Sales, value added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generally offers assurance-type warranties for its products. The specific terms and conditions of those warranties vary depending upon the product. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the warranty liability include historical product-failure experience and estimated repair costs for identified matters. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount accrued for expected returns and warranty claims was immaterial as of June 30, 2021. The amount of revenue recognized during the years ended June 30, 2019, 2020 and 2021 that was previously included within contract liability balances was ¥122,996, ¥nil and ¥1,899,561 ($294,147), respectively. Practical Expedients Elected Incremental Costs of Obtaining a Contract - The Company has elected the practical expedient permitted in ASC 340-40-25-4, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year and not significant. Significant Financing Component - The Company has elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Company’s contracts are majorly less than one year in length, consideration will not be adjusted. For the Company’s contracts include a standard payment term of 90 days to 180 days; consequently, there is no significant financing component within contracts. There are also some new contracts that will not be completed within one year from year 2020, the Company did calculation and the amount was not material as end of this fiscal year. |
Share-Based Compensation | Share-Based Compensation - |
Research and Development Expenses | Research and Development Expenses |
Shipping and Handling Costs | Shipping and Handling Costs - |
Leases | Leases Leases At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The ROU asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All ROU assets are reviewed for impairment annually. There was no impairment for ROU lease assets as of June 30, 2020 and 2021. |
Investment Payable | Investment Payable |
Income Taxes | Income Taxes The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company has no uncertain tax position as of June 30, 2020 and 2021. As of June 30, 2021, the tax years ended December 31, 2016 through December 31, 2020 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. |
Comprehensive Loss | Comprehensive Loss - |
Loss per Share | Loss per Share (“EPS”) Potentially dilutive Class A Ordinary Shares consist of Class A Ordinary Shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using the treasury stock method). The effect from options, restricted shares and warrants would have been anti-dilutive due to the fact that the Company incurred a net loss for the years ended June 30, 2019, 2020 and 2021. |
Warrants | Warrants For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. |
Convertible Notes Payable | Convertible Notes Payable Debt with conversion and other options |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification in this Update were submitted by stakeholders as part of the Simplification Initiative. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40)” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact ASU 2020-06 will have 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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful life | Items Useful life Motor vehicles 5-10 years Office equipment 2-5 years Production equipment 10-20 years |
Summary of information about contract assets and contract liabilities from contracts with customers | The following table provides information about contract costs and contract liabilities from contracts with customers: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Contract costs ¥ 31,537,586 ¥ 48,795,906 $ 7,556,056 Contract liabilities ¥ 3,486,033 ¥ 7,686,276 $ 1,190,221 |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
TRADE ACCOUNTS RECEIVABLE, NET | |
Schedule of Accounts receivable | Accounts receivable, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Parties RMB RMB U.S. Dollars Trade accounts receivable ¥ 51,679,627 ¥ 31,669,331 $ 4,904,001 Allowance for credit losses (3,435,612) (4,982,443) (771,531) Total third-parties, net ¥ 48,244,015 ¥ 26,686,888 $ 4,132,470 June 30, June 30, June 30, 2020 2021 2021 Related Party RMB RMB U.S. Dollars Urumqi Yikeli Automatic Control Equipment Co., Ltd. ¥ 3,409,912 ¥ — $ — Allowance for credit losses (340,992) — — Total related-party, net ¥ 3,068,920 ¥ — $ — June 30, June 30, June 30, 2020 2021 2021 Third Parties- long-term RMB RMB U.S. Dollars Trade accounts receivable ¥ 2,072,900 ¥ 4,332,984 $ 670,963 Allowance for credit losses (2,072,900) (4,332,984) (670,963) Total third-parties, net ¥ — ¥ — $ — |
Schedule of Movement of allowance for credit losses | Movement of allowance for credit losses is as follows: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Beginning balance ¥ 3,645,334 ¥ 5,849,504 $ 905,796 Charge to expense 2,204,170 3,730,606 577,684 Less: write-off — (254,853) (39,464) Foreign currency translation adjustments — (9,830) (1,522) Ending balance ¥ 5,849,504 ¥ 9,315,427 $ 1,442,494 |
OTHER RECEIVABLES, NET (Tables)
OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
OTHER RECEIVABLES, NET | |
Schedule of Other receivables, net | Other receivables, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Party RMB RMB U.S. Dollars Business advances to officers and staffs (A) ¥ 1,141,829 ¥ 957,277 $ 148,235 Deposits for projects 1,381,081 1,982,987 307,066 VAT recoverable 3,746,435 3,562,295 551,622 Others 1,614,133 1,469,949 227,621 7,883,478 7,972,508 1,234,544 Less: Long term portion (B) (3,640) (114,679) (17,758) Allowance for credit losses (1,529,036) (918,153) (142,176) Other receivable - current portion ¥ 6,350,802 ¥ 6,939,676 $ 1,074,610 (A) Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. (B) Long-term portion are mainly tender deposits for large-scale projects or rental contracts. These funds may not be collected back until projects are finished or contracts are completed. |
Schedule of Movement of allowance for doubtful accounts | Movement of allowance for credit losses is as follows: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Beginning balance ¥ 1,461,724 ¥ 1,529,036 $ 236,772 Balance acquired from FGS — 151,689 23,488 Charge to (reversal of) expense 67,312 (187,161) (28,981) Less: write-off — (575,411) (89,103) Ending balance ¥ 1,529,036 ¥ 918,153 $ 142,176 |
LOANS TO THIRD PARTIES (Tables)
LOANS TO THIRD PARTIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
LOANS TO THIRD PARTIES | |
Schedule of loans to third parties | June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Working fund to third party companies ¥ 3,200,377 ¥ 50,476,782 $ 7,816,340 Allowance for credit losses — — — Total loans to third parties ¥ 3,200,377 ¥ 50,476,782 $ 7,816,340 |
CONTRACT COSTS, NET (Tables)
CONTRACT COSTS, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
CONTRACT COSTS, NET | |
Summary of contract costs, net | Contract costs, net consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Party RMB RMB U.S. Dollars Contract costs ¥ 31,677,348 ¥ 53,344,816 $ 8,260,456 Allowance for credit losses (139,762) (4,548,910) (704,400) Total contract costs, net ¥ 31,537,586 ¥ 48,795,906 $ 7,556,056 |
Summary of movement of allowance for credit costs | Movement of allowance for credit losses of contract costs is as follows: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Beginning balance ¥ 162,213 ¥ 139,762 $ 21,642 Charge to (reversal of) expense (22,451) 4,647,802 719,713 Less: write-off — (238,654) (36,955) Ending balance ¥ 139,762 ¥ 4,548,910 $ 704,400 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of Property and equipment | June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Motor vehicles ¥ 4,741,366 ¥ 5,097,921 $ 789,415 Office equipment and fixtures 1,436,210 1,385,084 214,481 Production equipment 30,181,761 30,559,275 4,732,109 Total property and equipment 36,359,337 37,042,280 5,736,005 Less: accumulated depreciation (6,602,458) (9,135,200) (1,414,588) Less: Impairment for property and equipment — (768,312) (118,973) Property and equipment, net ¥ 29,756,879 ¥ 27,138,768 $ 4,202,444 |
BUSINESS ACQUISITION AND INVE_2
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |
Summary of fair values of the identifiable assets and liabilities | RMB U.S. Dollars Cash ¥ 471,843 $ 73,065 Trade accounts receivable, net 831,049 128,688 Other receivables, net 144,285 22,343 Contract costs, net 75,250 11,652 Prepaid expenses 91,132 14,112 Property and equipment, net 118,130 18,292 Intercompany receivables* 6,850,000 1,060,724 Intangible assets- customer relationship 7,000,000 1,083,951 Goodwill 6,996,895 1,083,471 Trade accounts payable (1,032,078) (159,817) Other payables (1,273,182) (197,152) Other payable- related parties (479,959) (74,322) Deferred revenue (39,786) (6,161) Accrued payroll and employees’ welfare (1,629,519) (252,331) Taxes payable (64,253) (9,950) Deferred tax liability (1,050,000) (162,592) Total ¥ 17,009,807 $ 2,633,973 Cash considerations — — Deemed equity consideration to acquire 8% equity interest in FGS 1,689,807 261,667 Fair value of previously held equity interest 30,530,000 4,727,577 Non-controlling interest 34,790,000 5,387,239 Capital contribution receivable due from non-controlling Interest (50,000,000) (7,742,510) Total ¥ 17,009,807 $ 2,633,973 *Intercompany receivables from Nanjing Recon and BHD are eliminated upon consolidation. |
Schedule of fair value of goodwill acquired and carrying value, customer relationship and its estimated useful lives | The identifiable goodwill acquired and the carrying value as of June 30, 2021 is as follows: Preliminary Fair Value RMB U.S. Dollars Goodwill ¥ 6,996,895 $ 1,083,471 Less: impairment — — The carrying value of goodwill as of June 30,2021 6,996,895 1,083,471 The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives is as follows: Average Useful Life Preliminary Fair Value (in Years) RMB U.S. Dollars Intangible assets - customer relationship ¥ 7,000,000 $ 1,083,951 10 Less: accumulated amortization (350,000) (54,198) Total intangible assets, net as of June 30,2021 6,650,000 1,029,754 |
Schedule of unaudited pro forma balances | The following unaudited pro forma condensed financial information presents the combined results of operation for the fiscal year ended June 30, 2021 of the Company and FGS. Pro Forma Combined For the year ended June 30, 2021 Recon FGS Combined Revenues ¥ 45,370,768 ¥ 6,393,216 ¥ 51,763,984 Net loss (19,433,300) (2,362,502) (21,795,802) Loss per common share - basis and diluted ¥ (1.53) ¥ (0.19) ¥ (1.72) Weighted average shares - basic and diluted 12,697,024 12,697,024 12,697,024 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Summary of operating lease related assets and liabilities recorded on the balance sheets | June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Rights of use lease assets ¥ 2,549,914 ¥ 7,925,930 $ 1,227,332 Operating lease liabilities – current 1,328,976 2,226,832 344,825 Operating lease liabilities – non-current 1,210,088 4,792,101 742,058 Total operating lease liabilities ¥ 2,539,064 ¥ 7,018,933 $ 1,086,883 |
Summary of weighted average remaining lease terms and discount rates for all of operating leases | June 30, 2020 June 30, 2021 Remaining lease term and discount rate: Weighted average remaining lease term (years) 2.57 2.59 Weighted average discount rate 5 % 5 % |
Summary of maturities of lease liabilities | Twelve months ending June 30, RMB U.S. Dollars 2022 ¥ 3,820,677 $ 591,633 2023 3,002,494 464,937 2024 1,953,178 302,449 Total lease payments 8,776,349 1,359,019 Less: imputed interest (459,947) (71,223) Less: prepayments (1,297,469) (200,913) Present value of lease liabilities 7,018,933 1,086,883 Less: operating lease liabilities – current (2,226,832) (344,825) Operating lease liabilities – non-current ¥ 4,792,101 $ 742,058 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
OTHER PAYABLES | |
Schedule Of Other Payables Third Party | Other payables consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Third Parties RMB RMB U.S. Dollars Service ¥ 1,685,449 ¥ 7,940,481 $ 1,229,586 Distributors and employees 273,968 1,488,329 230,468 Accrued expenses 402,699 206,051 31,907 Others 247,370 227,901 35,290 Total ¥ 2,609,486 ¥ 9,862,762 $ 1,527,251 |
Schedule Of Other Payables Related Party | June 30, June 30, June 30, 2020 2021 2021 Related Parties RMB RMB U.S. Dollars Expenses paid by the major shareholders ¥ 3,752,353 ¥ 1,594,543 $ 246,916 Due to family members of the owners of BHD and FGS 485,000 545,159 84,418 Due to management staff for costs incurred on behalf of the Company 260,965 260,965 40,410 Total ¥ 4,498,318 ¥ 2,400,667 $ 371,744 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
TAXES PAYABLE | |
Schedule of taxes payable | Taxes payable consisted of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars VAT payable ¥ 660,278 ¥ 643,896 $ 99,707 Income tax payable 440,030 440,030 68,139 Other taxes payable 7,980 165,068 25,561 Total taxes payable ¥ 1,108,288 ¥ 1,248,994 $ 193,407 |
SHORT-TERM BANK LOANS (Tables)
SHORT-TERM BANK LOANS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
SHORT-TERM BANK LOANS | |
Schedule of Short-term Bank Loans | Short-term bank loans consisted of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Bank of Nanjing (1) ¥ 2,500,000 ¥ 4,000,000 $ 619,401 Beijing Rural Commercial Bank (2) 6,000,000 10,000,000 1,548,502 Industrial and Commercial Bank of China (3) 1,020,000 — — China Construction Bank (4) — 1,000,000 154,850 Total short-term bank loans ¥ 9,520,000 ¥ 15,000,000 $ 2,322,753 (1) On June 1, 2020, the Company entered into a loan agreement with Bank of Nanjing to borrow ¥ 2,500,000 ($387,126) as working capital for one year , with maturity date of May 21, 2021. The loan was repaid in full upon maturity. On June 23, 2020, the Company entered into another loan agreement with Bank of Nanjing to borrow ¥1,500,000 ($232,275) as working capital for one year. The Company made the withdraw in an amount of ¥1,500,000 ($232,275) on July 1, 2020, which will be due on July 1, 2021. The loan was repaid in full upon maturity. On June 21, 2021, the Company entered into another loan agreement with Bank of Nanjing to borrow ¥2,500,000 ($387,126) as working capital for one year, with maturity date of June 17, 2022. All these loans bear a fixed interest rate of 4.35% per annum and are guaranteed by one of the founders of the Company. (2) On April 23, 2020, the Company entered into a loan agreement with Beijing Rural Commercial Bank to borrow ¥ 6,000,000 ($929,101) as working capital for one year . The Company made the withdraw in an amount of ¥ 6,000,000 ($929,101) on April 30, 2020, which will be due on April 29, 2021. The loan bears a fixed interest rate of 5.655% per annum. The loan was guaranteed by one of the founders of the Company and he also pledged self-owned housing property with carrying value of approximately RMB 15.6 million ($2,416,592) as collateral for this loan. The loan was repaid in full upon maturity. On April 15, 2020, the Company entered into a loan agreement with Beijing Rural Commercial Bank to borrow ¥ 10,000,000 ($1,548,502) as working capital for one year . The Company made the first withdraw in an amount of ¥ 5,600,000 ($867,161) on April 23, 2021, which will be due on April 20, 2022. The Company made second withdraw in an amount of ¥ 4,400,000 ($681,341) on May 18, 2021, which will be due on May 11, 2022. The loan bears a fixed interest rate of 4.6% per annum. The loan is guaranteed by one of the founders of the Company and he also pledged self-owned housing property with carrying value of approximately RMB 17.6 million ($2,722,267) as collateral for this loan. (3) On May 22, 2020, the Company entered into a loan agreement with Industrial and Commercial Bank of China to borrow ¥ 1,020,000 ($157,947) as working capital for six months , with maturity date of November 18, 2020. The loan bears a fixed interest rate of 4.45% per annum. The loan was repaid in full upon maturity. On November 19, 2020, the Company entered into another loan agreement with Industrial and Commercial Bank of China to borrow ¥1,020,000 ($157,947) as working capital for six months, with maturity date of May 18, 2021. The loan bears a fixed interest rate of 3.85% per annum. The loan was repaid in full upon maturity. (4) On July 10, 2020, the Company entered into a loan agreement with China Construction Bank to borrow ¥ 1,000,000 ( $154,850 ) as working capital for one year , with maturity date of July 10, 2021. The loan bears a fixed interest rate of 4.0525% per annum. The loan was repaid in full upon maturity. |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Short-term Debt [Line Items] | |
Schedule of short-term borrowings | Short-term borrowings due to third parties consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Short-term borrowings due to third parties: RMB RMB U.S. Dollars Short-term borrowing, 15% annual interest, due on September 23, 2021 ¥ 200,000 ¥ 230,000 $ 35,616 Short-term borrowing, interest-free, due on May 12, 2022 — 200,000 30,970 Short-term borrowing, interest-free, due on June 21, 2022 — 100,000 15,485 Total short-term borrowings due to third parties ¥ 200,000 ¥ 530,000 $ 82,071 |
Related Party | |
Short-term Debt [Line Items] | |
Schedule of short-term borrowings | Short-term borrowings due to related parties consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Short-term borrowings due to related parties: RMB RMB U.S. Dollars Short-term borrowing from a Founder, 5.65% annual interest, due on December 19, 2020* ¥ 5,008,640 ¥ — $ — Short-term borrowing from a Founder, 4.55% annual interest, due on March 25, 2021* 4,002,106 — — Short-term borrowing from a Founder, interest-free, due on September 24, 2020* 450,000 — — Short-term borrowing from a Founder’s family member, interest-free, due on December 31, 2020* 770,000 — — Short-term borrowing from a Founder, 4.35% annual interest, due on December 21, 2021 — 5,006,042 775,187 Short-term borrowing from a Founder, 4.35% annual interest, due on March 25, 2022 — 4,000,000 619,401 Short-term borrowing from a Founder’s family member, 0% annual interest, due on December 31, 2021 — 670,000 103,750 Short-term borrowing from a Founder’s family member, 0% annual interest, due on March 24, 2022 — 3,000,000 464,550 Total short-term borrowings due to related parties ¥ 10,230,746 ¥ 12,676,042 $ 1,962,888 |
LONG-TERM BORROWINGS DUE TO R_2
LONG-TERM BORROWINGS DUE TO RELATED PARTY (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
LONG-TERM BORROWINGS DUE TO RELATED PARTY | |
Schedule of Long-term borrowings due to related party | Long-term borrowings due to related party consisted of the following: June 30, June 30, June 30, 2020 2021 2021 Long-term borrowings due to related party: RMB RMB U.S. Dollars Long-term borrowing from a Founder, monthly payments of ¥126,135 inclusive of interest at 8.90%, ten years loan, due in November 2027. ¥ 8,226,599 ¥ 7,406,617 $ 1,146,916 Less: current portion (847,346) (920,066) (142,472) Total long-term borrowings due to related party ¥ 7,379,253 ¥ 6,486,551 $ 1,004,444 No long-term borrowings due to related party were guaranteed or collateralized at June 30, 2020 and 2021. |
Schedule of future maturities of long-term borrowings due to related party | The future maturities of long-term borrowings due to related party at June 30, 2021 are as follows: Twelve months ending June 30, RMB U.S. Dollars 2022 ¥ 920,066 $ 142,472 2023 975,474 151,052 2024 1,065,921 165,058 2025 1,164,755 180,363 2026 1,272,753 197,086 Thereafter 2,007,648 310,885 Total ¥ 7,406,617 $ 1,146,916 |
CLASS A ORDINARY SHARES (Tables
CLASS A ORDINARY SHARES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
CLASS A ORDINARY SHARES | |
Schedule of Pre-Funded Warrants Activities | The following table summarizes the Company’s Pre-Funded Warrants activities and status of Pre-Funded Warrants at June 30, 2021: Weighted Average Average Remaining Pre-Funded Exercise Price Period Pre-Funded Warrants Warrants Per Share (Years) Outstanding as of June 30, 2019 — $ — — Issued — — — Forfeited — — — Exercised — — — Expired — — — Outstanding as of June 30, 2020 — $ — — Issued 2,800,000 0.01 — Forfeited — — — Exercised (1,330,000) 0.01 — Expired — — — Outstanding as of June 30, 2021 1,470,000 $ 0.01 5.38 |
COMMON STOCK PURCHASE WARRANT_2
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS | |
Summary of company warrants activities and status of warrants | The following table summarizes the Company’s Warrants activities and status of Warrants at June 30, 2021: Weighted Average Average Remaining Exercise Price Period Warrants Warrants Per Share (Years) Outstanding as of June 30, 2019 — $ — Issued 2,591,112 1.25 Forfeited — — Exercised — — Expired — — Outstanding as of June 30, 2020 2,591,112 $ 1.25 5.5 Issued 8,814,102 6.24 Forfeited — — Exercised (2,591,112) 1.25 Expired — — Outstanding as of June 30, 2021 8,814,102 $ 6.24 5.38 |
Schedule of fair value measurement inputs under binomial and black-scholes model | June 14, 2021 June 30, (Initial 2021 measurement) Input Stock price $ 4.33 $ 5.01 Risk-free interest rate 0.95 % 0.90 % Volatility 111 % 111 % Exercise price $ 6.24 $ 6.24 Warrant life 5.5 years 5.5 years |
Schedule of liabilities measured at fair value on recurring basis | Quoted Prices In Significant Other Significant Other June 30, Active Markets Observable Inputs Unobservable Inputs Description 2021 (Level 1) (Level 2) (Level 3) Liabilities: Warrant liability $ 29,520,000 $ — $ — $ 29,520,000 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION | |
Schedule of stock options activity | The following is a summary of the stock options activity: Weighted Average Exercise Price Stock Options Shares Per Share Outstanding as of June 30, 2019 163,120 $ 15.20 Granted — — Forfeited — — Exercised — — Expired 53,600 25.75 Outstanding as of June 30, 2020 109,520 $ 10.02 Granted — — Forfeited — — Exercised — — Expired — — Outstanding as of June 30, 2021 109,520 $ 10.02 |
Schedule of options outstanding and exercisable | The following is a summary of the status of options outstanding and exercisable at June 30, 2021: Outstanding Options Exercisable Options Average Average Remaining Remaining Average Exercise Contractual Average Exercise Contractual Price Number life (Years) Price Number life (Years) $ 14.80 29,520 0.74 $ 14.80 29,520 0.74 $ 8.25 80,000 3.59 $ 8.25 80,000 3.59 109,520 |
Schedule of restricted shares granted | Following is a summary of the restricted shares granted: Restricted stock grants Shares Non-vested as of June 30, 2019 821,644 Granted — Vested (500,844) Non-vested as of June 30, 2020 320,800 Granted — Vested (190,400) Non-vested as of June 30, 2021 130,400 |
Schedule of Outstanding Restricted Shares | The following is a summary of the status of restricted stock at June 30, 2021: Outstanding Restricted Shares Average Remaining Fair Value per Amortization Share Number Period (Years) $ 6.45 130,400 0.14 130,400 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
INCOME TAX | |
Schedule of loss before provision for income taxes | For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Outside China areas ¥ (28,447,953) ¥ (10,160,525) ¥ 4,011,449 $ 621,174 China 3,064,024 (9,679,757) (30,402,528) (4,707,838) Total ¥ (25,383,929) ¥ (19,840,282) ¥ (26,391,079) $ (4,086,664) |
Schedule of deferred tax asset, net | Deferred tax asset, net is composed of the following: June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Deferred tax assets: Allowance for credit losses ¥ 1,180,160 ¥ 2,137,968 $ 331,065 Impairment for inventory — 160,791 24,899 Impairment loss from investment in unconsolidated entity 605,660 — — Net operating loss carryforwards 10,441,633 15,741,037 2,437,503 Subtotal ¥ 12,227,453 ¥ 18,039,796 $ 2,793,467 Less: Valuation allowance (12,162,660) (17,427,464) (2,698,647) Total deferred tax assets ¥ 64,793 ¥ 612,332 $ 94,820 Deferred tax Liability: Accelerated amortization of intangible assets ¥ (64,793) ¥ (92,032) $ (14,251) Gain on the previously held equity method investment — (146,888) (22,746) Recognition of customer relationship arising from business combinations — (997,500) (154,463) Total deferred tax liability ¥ (64,793) ¥ (1,236,420) (191,460) Deferred tax liability, net ¥ — ¥ (624,088) $ (96,640) |
Schedule of reconciliation of income tax expense | Following is a reconciliation of income tax expense (benefit) at the effective rate to income tax at the calculated statutory rates: For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Income tax benefits calculated at PRC statutory rates ¥ (6,318,111) ¥ (4,960,454) ¥ (6,597,770) $ (1,021,666) Nondeductible expenses and others (56,127) 232,213 338,058 52,348 Effect of tax rate differential 6,378,169 2,008,824 626,245 96,974 Benefit of revenue exempted from enterprise income tax (279,352) (266,548) (57,250) (8,865) Change in valuation allowances 673,898 3,268,287 5,264,804 815,256 Tax refund — — (98,338) (15,227) Provision (benefit) for income tax ¥ 398,477 ¥ 282,322 ¥ (524,251) $ (81,180) |
Schedule of company's income tax expense | The Company’s income tax expense (benefit) is comprised of the following: For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Current income tax provision (benefit) ¥ 398,477 ¥ 282,322 ¥ (98,338) $ (15,228) Deferred income tax benefit — — (425,913) (65,952) Expense (benefit) for income tax ¥ 398,477 ¥ 282,322 ¥ (524,251) $ (81,180) |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
NON-CONTROLLING INTEREST | |
Schedule of non-controlling interest | Non-controlling interest consisted of the following: As of June 30, 2020 Nanjing Gan Su Qinghai BHD Recon BHD BHD Total Total RMB RMB RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,755,000 ¥ — ¥ 6,606,000 $ 934,406 Unappropriated retained earnings 3,477,493 3,616,002 (2,100,871) (953,395) 4,039,229 571,342 Accumulated other comprehensive loss (18,850) (11,853) — — (30,703) (4,343) Total non-controlling interests ¥ 5,109,643 ¥ 3,804,149 ¥ 2,654,129 ¥ (953,395) ¥ 10,614,526 $ 1,501,405 As of June 30, 2021 Nanjing Gan Su Qinghai BHD Recon BHD BHD FGS Total Total RMB RMB RMB RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,805,000 ¥ — ¥ — ¥ 6,656,000 $ 1,030,683 Capital contribution receivable due from non-controlling Interest — — — — (50,000,000) (50,000,000) (7,742,510) Unappropriated retained earnings 3,477,493 3,616,002 (4,106,883) (1,442,443) (539,034) 1,005,135 155,645 Accumulated other comprehensive loss (18,850) (11,853) — — — (30,703) (4,754) Noncontrolling interest recognized upon business acquisiton — — — — 34,790,000 34,790,000 5,387,238 Total non-controlling interests ¥ 5,109,643 ¥ 3,804,149 ¥ 698,117 ¥ (1,442,443) (15,749,034) ¥ (7,579,568) $ (1,173,698) |
COMMITMENTS AND CONTINGENCY (Ta
COMMITMENTS AND CONTINGENCY (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCY | |
Schedule of total future minimum purchase commitment | The total future minimum purchase commitment under the non-cancellable purchase contracts as of June 30, 2021 are payable as follows: Twelve months ending June 30, Minimum purchase commitment 2022 ¥ 8,099,019 $ 1,254,135 2023 300,000 46,455 2024 300,000 46,455 2025 300,000 46,455 2026 150,000 23,228 Thereafter — — Total minimum payments required ¥ 9,149,019 $ 1,416,728 |
Schedule of Non - cancellable operating lease agreements | The Company entered into several non-cancellable operating lease agreements for office spaces and factories. Future payments under such leases were included in lease liabilities as disclosed in Note 11, other than those within under lease agreements within one year which are disclosed as follows as of June 30, 2021: Twelve months ending June 30, RMB U.S. Dollars 2022 ¥ 511,508 $ 79,207 Total ¥ 511,508 $ 79,207 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of Sales to related party | Sales to related party – For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Urumqi Yikeli Automatic Control Equipment Co., Ltd. ¥ 3,726,894 ¥ — ¥ 85,657 $ 13,264 Total revenues from related party ¥ 3,726,894 ¥ — ¥ 85,657 $ 13,264 |
Schedule of Prepaid expenses related parties prepaid expenses | Prepaid expenses - related parties June 30, 2020 June 30, 2021 June 30, 2019 RMB RMB U.S. Dollars Founders ¥ — ¥ 363,000 $ 56,210 Founders’ family member — 70,000 10,840 Total prepaid expenses - related parties ¥ — ¥ 433,000 $ 67,050 |
Schedule of leases from related parties | The details of leases from related parties are as below: Monthly Rent Monthly Rent Lessee Lessor Rent Period RMB USD Nanjing Recon One of the Founders April 1, 2020 - March 31, 2022 ¥ 40,000 $ 6,194 BHD One of the Founders Jan 1, 2021- Dec 31, 2021 22,500 3,484 BHD One of the Founders Mar 1, 2021 - Dec 31, 2021 31,667 4,904 BHD Founders’ family member May 1, 2021 - Dec 31, 2021 12,500 1,936 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
VARIABLE INTEREST ENTITIES | |
Schedule of information regarding consolidated VIEs | Summary information regarding consolidated VIEs is as follows: June 30, 2020 June 30, 2021 June 30, 2021 RMB RMB U.S. Dollars ASSETS Current Assets Cash ¥ 6,388,098 ¥ 4,293,380 $ 664,831 Notes receivable 4,180,885 6,305,633 976,429 Trade accounts receivable, net 44,031,079 24,762,732 3,834,514 Trade accounts receivable- related party, net 3,068,920 — — Inventories, net 1,985,723 3,644,522 564,355 Other receivables, net 6,342,009 5,988,641 927,342 Loans to third parties 3,200,377 1,350,000 209,048 Purchase advances, net 75,195 1,078,137 166,950 Contract costs, net 31,537,586 48,795,906 7,556,056 Prepaid expenses 42,294 — — Prepaid expenses- related parties — 433,000 67,050 Total current assets 100,852,166 96,651,951 14,966,575 Property and equipment, net 29,756,879 27,138,768 4,202,444 Land use right, net 1,280,648 1,253,408 194,090 Customer relationship — 6,650,000 1,029,754 Investment in unconsolidated entity 4,000,000 — — Long-term other receivables, net 3,640 114,679 17,758 Goodwill — 6,996,895 1,083,471 Right of use assets 2,549,914 7,925,930 1,227,332 Total Assets ¥ 138,443,247 ¥ 146,731,631 $ 22,721,424 LIABILITIES Short-term bank loan ¥ 9,520,000 ¥ 15,000,000 $ 2,322,753 Trade accounts payable 18,903,080 18,182,770 2,815,606 Other payables 1,115,209 2,096,830 324,695 Other payable- related parties 3,113,460 1,253,797 194,151 Advance from customers 3,486,033 7,686,276 1,190,221 Accrued payroll and employees’ welfare 850,841 1,565,898 242,480 Intercompany payables* 88,134,791 95,284,791 14,754,869 Taxes payable 1,108,265 1,249,052 193,416 Short-term borrowings 200,000 530,000 82,071 Short-term borrowings - related parties 10,230,746 12,676,042 1,962,888 Long-term borrowings - related party - current portion 847,346 920,066 142,472 Operating lease liabilities - current 1,328,976 2,226,832 344,825 Total current liabilities 138,838,747 158,672,354 24,570,447 Operating lease liabilities - non-current 1,210,088 4,792,101 742,058 Long-term borrowings - related party 7,379,253 6,486,551 1,004,444 Deferred tax liability — 624,088 96,640 Total Liabilities ¥ 147,428,088 ¥ 170,575,094 $ 26,413,589 *Intercompany payables are eliminated upon consolidation. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
SEGMENT REPORTING | |
Schedule of segment reporting information | The following tables present summary information by segment for the years ended June 30, 2019, 2020 and 2021, respectively: For the year ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars Automation product and software ¥ 63,577,177 ¥ 51,413,830 ¥ 18,535,166 $ 2,870,175 Equipment and accessories 23,951,132 14,222,623 15,791,623 2,445,336 Oilfield environmental protection 14,856,018 124,198 11,043,979 1,710,162 Platform outsourcing services — — 2,567,807 397,625 Total revenue ¥ 102,384,327 ¥ 65,760,651 ¥ 47,938,575 $ 7,423,298 For the year ended June 30, 2021 Automation Equipment Oilfield Platform product and and environmental outsourcing software accessories protection services Total RMB RMB RMB RMB RMB Revenue ¥ 18,535,166 ¥ 15,791,623 ¥ 11,043,979 ¥ 2,567,807 ¥ 47,938,575 Cost of revenue and related tax 19,942,541 11,264,971 8,045,567 1,470,468 40,723,547 Gross profit ¥ (1,407,375) ¥ 4,526,652 ¥ 2,998,412 ¥ 1,097,339 ¥ 7,215,028 Depreciation and amortization ¥ 277,496 ¥ 851,612 ¥ 2,000,952 ¥ 20,729 ¥ 3,150,789 Total capital expenditures ¥ 26,761 ¥ 136,224 ¥ 315,944 ¥ 43,487 ¥ 522,416 Timing of revenue recognition Goods transferred at a point in time ¥ 18,535,166 ¥ 15,791,623 ¥ 9,654,418 ¥ 2,567,807 ¥ 46,549,014 Services rendered over time — — 1,389,561 — 1,389,561 Total revenue ¥ 18,535,166 ¥ 15,791,623 ¥ 11,043,979 ¥ 2,567,807 ¥ 47,938,575 For the year ended June 30, 2020 Automation Equipment Oilfield Platform product and and environmental outsourcing software accessories protection services Total RMB RMB RMB RMB RMB Revenue ¥ 51,413,830 ¥ 14,222,623 ¥ 124,198 ¥ — ¥ 65,760,651 Cost of revenue and related tax 38,257,914 7,683,662 212,679 — 46,154,255 Gross profit ¥ 13,155,916 ¥ 6,538,961 ¥ (88,481) ¥ — ¥ 19,606,396 Depreciation and amortization ¥ 98,756 ¥ 683,522 ¥ 827,422 ¥ — ¥ 1,609,700 Total capital expenditures ¥ 85,975 ¥ — ¥ 3,782,911 ¥ — ¥ 3,868,886 Timing of revenue recognition Goods transferred at a point in time ¥ 10,871,301 ¥ 14,222,623 ¥ — ¥ — ¥ 25,093,924 Services rendered over time 40,542,529 — 124,198 — 40,666,727 Total revenue ¥ 51,413,830 ¥ 14,222,623 ¥ 124,198 ¥ — ¥ 65,760,651 For the year ended June 30, 2019 Automation Equipment Oilfield Platform product and and environmental outsourcing software accessories protection services Total RMB RMB RMB RMB RMB Revenue ¥ 63,577,177 ¥ 23,951,132 ¥ 14,856,018 ¥ — ¥ 102,384,327 Cost of revenue and related tax 49,356,155 15,039,628 8,123,180 — 72,518,963 Gross profit ¥ 14,221,022 ¥ 8,911,504 ¥ 6,732,838 ¥ — ¥ 29,865,364 Depreciation and amortization ¥ 78,760 ¥ 1,018,012 ¥ 27,239 ¥ — ¥ 1,124,011 Total capital expenditures ¥ 162,060 ¥ 1,573,896 ¥ 4,606,823 ¥ — ¥ 6,342,779 Timing of revenue recognition Goods transferred at a point in time ¥ 63,577,177 ¥ 23,951,132 ¥ 14,856,018 ¥ — ¥ 102,384,327 Services rendered over time — — — — — Total revenue ¥ 63,577,177 ¥ 23,951,132 ¥ 14,856,018 ¥ — ¥ 102,384,327 June 30, June 30, June 30, 2020 2021 2021 RMB RMB U.S. Dollars Total assets: Automation product and software ¥ 81,743,307 ¥ 156,435,379 $ 24,224,051 Equipment and accessories 61,578,632 160,299,200 24,822,364 Oilfield environmental protection 51,092,865 139,326,144 21,574,682 Platform outsourcing services — 110,455,937 17,104,123 Total Assets ¥ 194,414,804 ¥ 566,516,660 $ 87,725,220 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Schedule of parent company balance sheets (unaudited) | As of June 30 As of June 30 As of June 30 2020 2021 2021 RMB RMB U.S. Dollars ASSETS Non-current assets Investment in subsidiaries and VIEs ¥ 110,029,762 ¥ 295,095,034 $ 45,695,526 Total assets ¥ 110,029,762 ¥ 295,095,034 $ 45,695,526 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES ¥ — ¥ — $ — COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Class A common stock, $0.0925 U.S. dollar par value, 150,000,000 shares authorized; 7,202,832 shares and 26,868,391 shares issued outstanding * 4,577,233 16,340,826 2,530,380 Class B common stock, $0.0925 U.S. dollar par value, 20,000,000 shares authorized; no shares issued and outstanding as of June 30, 2020 and June 30, 2021, respectively * — — — Additional paid-in capital 282,505,455 479,490,763 74,249,242 Accumulated deficit (179,878,657) (202,711,391) (31,389,900) Accumulated other comprehensive income 2,825,731 1,974,836 305,804 Total stockholders’ equity 110,029,762 295,095,034 45,695,526 Total liabilities and stockholders’ equity ¥ 110,029,762 ¥ 295,095,034 $ 45,695,526 * Retrospectively restated for effect of stock split on December 27, 2019 and change into dual class structure on April 5, 2021. |
Schedule of parent company statements of operations and comprehensive loss (unaudited) | For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars EQUITY IN LOSS OF SUBSIDIARIES AND VIES ¥ (25,355,905) ¥ (19,246,701) ¥ (22,832,734) $ (3,535,654) NET LOSS (25,355,905) (19,246,701) (22,832,734) (3,535,654) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 1,393,843 (84,205) (850,895) (131,761) COMPREHENSIVE LOSS ¥ (23,962,062) ¥ (19,330,906) ¥ (23,683,629) $ (3,667,415) |
Schedule of parent company statements of cash flows (unaudited) | For the years ended June 30, 2019 2020 2021 2021 RMB RMB RMB U.S. Dollars CASH FLOWS FROM OPERATING ACTIVITIES: Net loss ¥ (25,355,905) ¥ (19,246,701) ¥ (22,832,734) $ (3,535,654) Adjustments to reconcile net cash flows from operating activities: Equity in earnings of subsidiaries and VIEs 25,355,905 19,246,701 22,832,734 3,535,654 Net cash used in operating activities — — — — CHANGES IN CASH — — — — CASH, beginning of year — — — — CASH, end of year ¥ — ¥ — ¥ — $ — |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | Apr. 26, 2021 | Mar. 09, 2021 | Oct. 23, 2018 | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) |
Variable Interest Entity, Terms of Arrangements | the Company is able to absorb 90% of net interest or 100% of net loss of those VIEs. | ||||
Beijing Bhd Petroleum Technology Co Ltd [Member] | |||||
Ownership interest held by parent | 51.00% | 51.00% | |||
Nanjing Recon Technology Co Ltd [Member] | |||||
Ownership interest held by noncontrolling owner | 19.00% | 19.00% | |||
Beijing Bhd Petroleum Technology Co Ltd [Member] | |||||
Paid In Capital | $ | $ 200,000 | ||||
Remaining Paid In Capital | ¥ 33,300,000 | 5,156,512 | |||
Gan Su BHD Environmental Technology Co., Ltd [Member] | |||||
Capital | 50,000,000 | ||||
Paid In Capital | 22,935,000 | 3,551,489 | |||
Gan Su BHD Environmental Technology Co., Ltd [Member] | Nanjing Recon Technology Co Ltd [Member] | |||||
Percentage of equity interest transferred | 3.60% | ||||
Qing Hai BHD New Energy Technology Co Ltd [Member] | |||||
Capital | ¥ 50,000,000 | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 55.00% | 75.00% | |||
Paid In Capital | ¥ 4,200,000 | 650,371 | |||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Individuals [Member] | |||||
Remaining Paid In Capital | ¥ 12,500,000 | $ 1,935,628 | |||
Beijing Bhd Petroleum Technology Co Ltd [Member] | Nanjing Recon Technology Co Ltd [Member] | |||||
Percentage of equity interest transferred | 15.40% | ||||
Beijing Bhd Petroleum Technology Co Ltd [Member] | Gan Su BHD Environmental Technology Co., Ltd [Member] | |||||
Percentage of equity interest transferred | 15.40% |
ORGANIZATION AND NATURE OF OP_3
ORGANIZATION AND NATURE OF OPERATIONS - Energy consumption market opened to private and foreign companies (Details) - Future Gas Station (Beijing) Technology, Ltd | Jan. 13, 2021CNY (¥) | Jan. 13, 2021USD ($) | Aug. 21, 2018CNY (¥)shares | Jun. 30, 2019CNY (¥)shares | Jun. 30, 2019USD ($)shares | Feb. 04, 2021 | Dec. 15, 2017 |
Aggregate amount invested | ¥ 30,530,000 | $ 4,727,577 | |||||
Domestic Companies | |||||||
Equity interest acquired | 8.00% | ||||||
Ownership interest held | 51.00% | ||||||
Domestic Companies | Investment Agreement | |||||||
Equity interest acquired | 43.00% | 43.00% | 43.00% | ||||
Investment in FGS agreed | ¥ | ¥ 10,000,000 | ||||||
Number of shares issued | shares | 487,057 | 487,057 | 487,057 | ||||
Aggregate amount invested | ¥ 35,116,707 | $ 5,113,984 | |||||
Domestic Companies | Fourth supplemental agreement | |||||||
Equity interest acquired | 8.00% | 8.00% |
LIQUIDITY (Details)
LIQUIDITY (Details) | Jun. 14, 2021USD ($)$ / sharesshares | Jan. 28, 2021USD ($)shares | Jun. 26, 2020USD ($)$ / sharesshares | May 21, 2020USD ($)$ / sharesshares | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Apr. 05, 2021$ / shares | Nov. 25, 2020USD ($)$ / shares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020$ / shares |
Number of warrants to purchase ordinary shares | 911,112 | 1,680,000 | ||||||||
Gross proceeds of before deducting the placement agent's fees and other estimated offering expenses | $ | $ 2,100,000 | $ 2,100,000 | ||||||||
Short-term borrowings due to related parties | ¥ 12,676,042 | $ 1,962,888 | ¥ 10,230,746 | |||||||
Bank loan outstanding | 15,000,000 | 2,322,753 | ¥ 9,520,000 | |||||||
Registered direct offering | ||||||||||
Gross proceeds of before deducting the placement agent's fees and other estimated offering expenses | $ | $ 55,000,000 | |||||||||
Related Party | ||||||||||
Short-term borrowings due to related parties | 12,700,000 | 2,000,000 | ||||||||
Long-term borrowings from related parties | ¥ 7,400,000 | $ 1,100,000 | ||||||||
Class A ordinary shares | ||||||||||
Number of warrants to purchase ordinary shares | 6,014,102 | 1,680,000 | 911,112 | 8,814,102 | 8,814,102 | |||||
Issuance of ordinary shares, net of issuance costs (in shares) | 6,014,102 | |||||||||
Par value (in dollars per share) | $ / shares | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | ||||
Class A ordinary shares | Convertible Notes | ||||||||||
Aggregate principal amount | $ | $ 6,485,000 | |||||||||
Par value (in dollars per share) | $ / shares | $ 0.0925 | |||||||||
Conversion rate of note | $ / shares | $ 0.71 | |||||||||
Number of shares issued upon conversion | 9,225,338 | |||||||||
Principal and interests amount converted | $ | $ 6,549,990 | |||||||||
Class A ordinary shares | Concurrent private placement | ||||||||||
Issuance of ordinary shares, net of issuance costs (in shares) | 8,814,102 | |||||||||
Pre-funded warrants | ||||||||||
Number of warrants to purchase ordinary shares | 8,814,102 | |||||||||
Issuance of ordinary shares, net of issuance costs (in shares) | 2,800,000 | |||||||||
Gross proceeds of before deducting the placement agent's fees and other estimated offering expenses | $ | $ 55,000,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | ||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Aug. 21, 2018 | |
Accounting Policies [Line Items] | |||||||
Foreign Currency Transactions, Description | The translation has been made at the rate of ¥6.4579 = US$1.00, the approximate exchange rate prevailing on June 30, 2021. | The translation has been made at the rate of ¥6.4579 = US$1.00, the approximate exchange rate prevailing on June 30, 2021. | |||||
Selling and Marketing Expense | ¥ 8,038,965 | $ 1,244,835 | ¥ 4,417,413 | ¥ 9,076,266 | |||
Allowance for Credit Losses | 3,543,445 | $ 548,703 | |||||
Impairment of property and equipment | 768,312 | 118,973 | 0 | 0 | |||
Impairment loss | 0 | 0 | 0 | ||||
Investment loss | 266,707 | 41,300 | 959,905 | ||||
Investment income | 462,879 | ||||||
Revenue recognized | 1,899,561 | $ 294,147 | 0 | 122,996 | |||
Contract assets and contract liabilities from contracts with customers | |||||||
Contract costs | 48,795,906 | 31,537,586 | $ 7,556,056 | ||||
Contract liabilities | ¥ 7,686,276 | 3,486,033 | $ 1,190,221 | ||||
Use Rights [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 50 years | 50 years | |||||
Shipping and Handling [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Selling and Marketing Expense | ¥ 444,824 | $ 68,881 | ¥ 257,573 | ¥ 749,719 | |||
Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 2 years | 2 years | |||||
Equity Method Investment, Ownership Percentage | 8.00% | ||||||
Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | |||||
Equity Method Investment, Ownership Percentage | 43.00% | ||||||
Motor vehicles [Member] | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | |||||
Motor vehicles [Member] | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | |||||
Office Equipment [Member] | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 2 years | 2 years | |||||
Office Equipment [Member] | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | |||||
Leasehold Improvements [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Estimated Useful Lives | shorter of the lease term or the estimated useful life | shorter of the lease term or the estimated useful life | |||||
Production equipment [Member] | Minimum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | |||||
Production equipment [Member] | Maximum | |||||||
Accounting Policies [Line Items] | |||||||
Property, Plant and Equipment, Useful Life | 20 years | 20 years |
TRADE ACCOUNTS RECEIVABLE, NE_2
TRADE ACCOUNTS RECEIVABLE, NET - Summary of Accounts receivable (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Third Party | |||
Total third-parties, net | ¥ 26,686,888 | $ 4,132,470 | ¥ 48,244,015 |
Related Party | |||
Total related-party, net | 0 | 0 | 3,068,920 |
Third Party [Member] | |||
Third Party | |||
Trade accounts receivable | 31,669,331 | 4,904,001 | 51,679,627 |
Allowance for credit loss | (4,982,443) | (771,531) | (3,435,612) |
Total third-parties, net | 26,686,888 | 4,132,470 | 48,244,015 |
Third Party - long-term | |||
Trade accounts receivable | 4,332,984 | 670,963 | 2,072,900 |
Total - long-term trade accounts receivable, net | 0 | 0 | 0 |
Related Party | |||
Allowance for credit losses | (4,332,984) | (670,963) | (2,072,900) |
Urumqi Yikeli Automatic Control Equipment Co., Ltd [Member] | |||
Related Party | |||
Allowance for credit losses | 0 | 0 | (340,992) |
Total related-party, net | ¥ 0 | $ 0 | ¥ 3,409,912 |
TRADE ACCOUNTS RECEIVABLE, NE_3
TRADE ACCOUNTS RECEIVABLE, NET - Summary of Movement of allowance for doubtful accounts (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charge to expense | ¥ 3,730,606 | $ 577,685 | ¥ 2,204,170 | ¥ 392,929 |
Third Party [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning balance | 5,849,504 | 905,796 | 3,645,334 | |
Charge to expense | 3,730,606 | 577,684 | 2,204,170 | |
Less: write-off | (254,853) | (39,464) | ||
Foreign currency translation adjustments | (9,830) | (1,522) | ||
Ending balance | ¥ 9,315,427 | $ 1,442,494 | ¥ 5,849,504 | ¥ 3,645,334 |
TRADE ACCOUNTS RECEIVABLE, NE_4
TRADE ACCOUNTS RECEIVABLE, NET - Additional Information (Details) | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for Doubtful Accounts | ¥ 8,191,247 | $ 1,268,416 | ¥ 2,203,531 | ¥ 610,776 | |
Provision for doubtful accounts of accounts receivable due from third parties | 3,730,606 | 577,685 | ¥ 2,204,170 | 392,929 | |
Percentage of not-collection from our customers | 44.8 | 44.8 | |||
Amount of not-collection from our customers | ¥ 16,111,105 | $ 2,494,808 | |||
Third Party [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for doubtful accounts of accounts receivable due from third parties | 3,730,606 | 577,684 | 2,204,170 | ||
Urumqi Yikeli Automatic Control Equipment Co., Ltd [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for Doubtful Accounts | ¥ 340,992 | ¥ 0 | |||
Net recovery of provision for credit losses made for accounts receivable due from related-party | ¥ 340,992 | $ 52,803 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) | Oct. 21, 2021CNY (¥) | Oct. 21, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable | ¥ 6,305,633 | $ 976,429 | ¥ 4,180,885 | ||
Subsequent event | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable | ¥ 1,574,200 | $ 243,765 | |||
Percentage of notes subsequently collected | 25 | 25 |
OTHER RECEIVABLES, NET - Summar
OTHER RECEIVABLES, NET - Summary of Other receivables, net (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) |
Current Portion | |||||
Other receivable - current portion | ¥ 6,939,676 | $ 1,074,610 | ¥ 6,350,802 | ||
Third Party [Member] | |||||
Current Portion | |||||
Business advances to officers and staffs (A) | 957,277 | 148,235 | 1,141,829 | ||
Deposits for projects | 1,982,987 | 307,066 | 1,381,081 | ||
VAT recoverable | 3,562,295 | 551,622 | 3,746,435 | ||
Others | 1,469,949 | 227,621 | 1,614,133 | ||
Other Receivables | 7,972,508 | 1,234,544 | 7,883,478 | ||
Less: Long term portion (B) | (114,679) | (17,758) | (3,640) | ||
Allowance for credit losses | (918,153) | (142,176) | (1,529,036) | $ (236,772) | ¥ (1,461,724) |
Other receivable - current portion | ¥ 6,939,676 | $ 1,074,610 | ¥ 6,350,802 |
OTHER RECEIVABLES, NET - Summ_2
OTHER RECEIVABLES, NET - Summary of Movement of allowance for credit losses (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Other Receivables [Line Items] | ||||
Charge to (reversal of) expense | ¥ 67,312 | ¥ 259,766 | ||
Third Party [Member] | ||||
Other Receivables [Line Items] | ||||
Beginning balance | ¥ 1,529,036 | $ 236,772 | 1,461,724 | |
Balance acquired from FGS | 151,689 | 23,488 | ||
Charge to (reversal of) expense | (187,161) | (28,981) | 67,312 | |
Less: write-off | (575,411) | (89,103) | ||
Ending balance | ¥ 918,153 | $ 142,176 | ¥ 1,529,036 | ¥ 1,461,724 |
OTHER RECEIVABLES, NET - Additi
OTHER RECEIVABLES, NET - Additional Information (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
OTHER RECEIVABLES, NET | ||||
Provision for credit losses of other receivables | ¥ 67,312 | ¥ 259,766 | ||
Net recovery of provision made for doubtful accounts of other receivables | ¥ 187,161 | $ 28,981 |
LOANS TO THIRD PARTIES (Details
LOANS TO THIRD PARTIES (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
LOANS TO THIRD PARTIES | |||
Working fund to third party companies | ¥ 50,476,782 | $ 7,816,340 | ¥ 3,200,377 |
Allowance for credit losses | 0 | 0 | 0 |
Total loans to third parties | ¥ 50,476,782 | $ 7,816,340 | ¥ 3,200,377 |
LOANS TO THIRD PARTIES - Additi
LOANS TO THIRD PARTIES - Additional Information (Details) - 12 months ended Jun. 30, 2021 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
LOANS TO THIRD PARTIES | ||
Proceeds from Collection of Loans Receivable | ¥ 39.8 | $ 6.2 |
CONTRACT COSTS, NET (Details)
CONTRACT COSTS, NET (Details) | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
CONTRACT COSTS, NET | ||||||
Contract costs | ¥ 53,344,816 | ¥ 31,677,348 | $ 8,260,456 | |||
Allowance for credit losses | (4,548,910) | (139,762) | ¥ (162,213) | (704,400) | $ (21,642) | |
Total contract costs, net | 48,795,906 | 31,537,586 | 7,556,056 | |||
Contract costs | 48,795,906 | 31,537,586 | 7,556,056 | |||
Total contracts costs that have been subsequently realized | ¥ 11,253,727 | $ 1,742,642 | ||||
Percentage of total contracts costs subsequently realized | 21.30% | 21.30% | ||||
Net recovery of provision for credit losses | ¥ 4,647,802 | $ 719,713 | ¥ 22,451 | ¥ 233,391 |
CONTRACT COSTS, NET - Movement
CONTRACT COSTS, NET - Movement of impairment of contract costs (Details) | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
CONTRACT COSTS, NET | |||
Beginning balance | ¥ 139,762 | $ 21,642 | ¥ 162,213 |
Charge to (reversal of) expense | 4,647,802 | 719,713 | (22,451) |
Less: write-off | (238,654) | (36,955) | |
Ending balance | ¥ 4,548,910 | $ 704,400 | ¥ 139,762 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | ¥ 37,042,280 | $ 5,736,005 | ¥ 36,359,337 |
Less: accumulated depreciation | (9,135,200) | (1,414,588) | (6,602,458) |
Less: Impairment for property and equipment | (768,312) | (118,973) | 0 |
Property and equipment, net | 27,138,768 | 4,202,444 | 29,756,879 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 5,097,921 | 789,415 | 4,741,366 |
Office equipment and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,385,084 | 214,481 | 1,436,210 |
Production equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | ¥ 30,559,275 | $ 4,732,109 | ¥ 30,181,761 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation | ¥ 2,773,122 | $ 429,419 | ¥ 1,582,461 | ¥ 1,096,772 |
Impairment of property and equipment | 768,312 | 118,973 | 0 | 0 |
Loss from property and equipment disposal | ¥ (19,590) | $ (3,034) | ¥ 89,156 | ¥ 0 |
BUSINESS ACQUISITION AND INVE_3
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Additional Information (Details) | Jun. 03, 2021USD ($)shares | Jan. 13, 2021CNY (¥)itemshares | Dec. 10, 2019 | Aug. 21, 2018USD ($)shares | Aug. 21, 2018CNY (¥)shares | Jun. 30, 2021CNY (¥)itemshares | Jun. 30, 2021USD ($)itemshares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2019CNY (¥)shares | Jun. 03, 2021CNY (¥) | Jun. 03, 2021USD ($)$ / shares | Jan. 13, 2021USD ($)item$ / shares | Dec. 31, 2020 |
Payments to Acquire Businesses and Interest in Affiliates | ¥ | ¥ 0 | ¥ 4,205,080 | |||||||||||
Cost Method Investment Ownership Percentage | 43.00% | 43.00% | 43.00% | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | ||||||||||||
Loss (income) from investment in unconsolidated entity | ¥ 266,707 | $ 41,300 | (462,879) | 959,905 | |||||||||
Loss (income) from investment in unconsolidated entity | ¥ (251,296) | $ (38,913) | |||||||||||
Investment Payable | ¥ | 6,400,000 | ||||||||||||
Reverse stock split | 0.2 | 0.2 | |||||||||||
Remeasurement gain of previously held equity interests in connection with step acquisition | ¥ 979,254 | $ 151,638 | ¥ 0 | 0 | |||||||||
Investment loss | ¥ 266,707 | $ 41,300 | ¥ 959,905 | ||||||||||
Future Gas Station (Beijing) Technology, Ltd | |||||||||||||
Payments to Acquire Additional Interest in Subsidiaries | $ 10,000,000 | ¥ 10,000,000 | |||||||||||
Equity Method Investment, Additional Information | As consideration for increasing its affiliates’ interest in FGS from 8% to 43%, the Company will (1) pay a total of RMB 10 million in cash to FGS and (2) issue 487,057 restricted Class A Ordinary Shares of the Company (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording the Company’s corresponding interest at the local governmental agency. | ||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | ||||||||||||
Number of gas stations extending business | item | 200 | 200 | |||||||||||
Number of Company's subsidiaries who entered into the fourth supplemental agreement to the investment agreement | item | 2 | 2 | |||||||||||
Stock price | $ / shares | $ 1.61 | ||||||||||||
Fair market value of waived performance goals | ¥ 1,689,807 | $ 261,667 | |||||||||||
Ownership interest (as a percent) | 51.00% | 51.00% | |||||||||||
Remeasurement gain of previously held equity interests in connection with step acquisition | ¥ 979,254 | $ 151,638 | |||||||||||
Net sales | 2,567,807 | 397,625 | |||||||||||
Net loss | 2,156,135 | 333,878 | |||||||||||
Amortization expense | 350,000 | 54,198 | |||||||||||
Investment in Starry Blockchain Energy Pte. Ltd | |||||||||||||
Cost Method Investment Ownership Percentage | 30.00% | 30.00% | |||||||||||
Payments to Acquire Equity Method Investments | $ | $ 3,000,000 | ||||||||||||
Stock price | $ / shares | $ 13.80 | ||||||||||||
Ownership interest (as a percent) | 30.00% | 30.00% | |||||||||||
Fair value of shares issued | ¥ 27,675,450 | $ 4,327,600 | |||||||||||
Investment loss | 15,411 | $ 2,386 | |||||||||||
Future Gas Station (Beijing) Technology, Ltd | |||||||||||||
Percentage of equity interest to be acquired in exchange for waiver of performance goals | 8.00% | 8.00% | |||||||||||
Net sales | ¥ | 6,393,216 | ||||||||||||
Net loss | ¥ | ¥ (2,362,502) | ||||||||||||
Consideration in shares | 487,057 | ||||||||||||
Number of Shares cancelled | 162,352 | ||||||||||||
Percentage of deemed consideration of equity. | 8.00% | ||||||||||||
Restricted shares | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 188,662 | 188,662 | 250,086 | 858,667 | |||||||||
Restricted shares | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||
Consideration in shares | 487,057 | ||||||||||||
Minimum | |||||||||||||
Ownership interest (as a percent) | 8.00% | 8.00% | |||||||||||
Maximum | |||||||||||||
Ownership interest (as a percent) | 43.00% | 43.00% | |||||||||||
Class A ordinary shares | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | ||||||||||||
Reverse stock split | 0.2 | ||||||||||||
Class A ordinary shares | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | ||||||||||||
Class A ordinary shares | Restricted shares | Investment in Starry Blockchain Energy Pte. Ltd | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 316,345 | ||||||||||||
Stock price | $ / shares | $ 9.48 |
BUSINESS ACQUISITION AND INVE_4
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair values of the identifiable assets and liabilities (Details) | Jan. 13, 2021CNY (¥) | Jan. 13, 2021USD ($) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jan. 13, 2021USD ($) |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||
Capital contribution receivable due from non-controlling Interest | ¥ 50,000,000 | $ 7,742,510 | |||
Future Gas Station (Beijing) Technology, Ltd | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||
Cash | ¥ 471,843 | $ 73,065 | |||
Trade accounts receivable, net | (831,049) | (128,688) | |||
Other receivables, net | 144,285 | 22,343 | |||
Contract costs, net | 75,250 | 11,652 | |||
Prepaid expenses | 91,132 | 14,112 | |||
Property and equipment, net | 118,130 | 18,292 | |||
Intercompany receivables | 6,850,000 | 1,060,724 | |||
Intangible assets customer relationship | 7,000,000 | 1,083,951 | |||
Goodwill | 6,996,895 | 1,083,471 | |||
Trade accounts payable | (1,032,078) | (159,817) | |||
Other payables | (1,273,182) | (197,152) | |||
Other payable- related parties | (479,959) | (74,322) | |||
Deferred revenue | (39,786) | (6,161) | |||
Accrued payroll and employees' welfare | (1,629,519) | (252,331) | |||
Taxes payable | (64,253) | (9,950) | |||
Deferred tax liability | (1,050,000) | (162,592) | |||
Total | 17,009,807 | $ 2,633,973 | |||
Deemed equity consideration to acquire 8% equity interest in FGS | 1,689,807 | $ 261,667 | |||
Fair value of previously held equity interest | 30,530,000 | 4,727,577 | |||
Non-controlling interest | 34,790,000 | 5,387,239 | |||
Capital contribution receivable due from non-controlling Interest | (50,000,000) | (7,742,510) | |||
Total | ¥ 17,009,807 | $ 2,633,973 |
BUSINESS ACQUISITION AND INVE_5
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair value of identified goodwill acquired and carrying value (Details) - Jun. 30, 2021 | CNY (¥) | USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
The carrying value of goodwill as of June 30,2021 | ¥ 6,996,895 | $ 1,083,471 |
Future Gas Station (Beijing) Technology, Ltd | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 6,996,895 | 1,083,471 |
The carrying value of goodwill as of June 30,2021 | ¥ 6,996,895 | $ 1,083,471 |
BUSINESS ACQUISITION AND INVE_6
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair value of identified intangible assets, customer relationship and its estimated useful lives (Details) - 12 months ended Jun. 30, 2021 - Future Gas Station (Beijing) Technology, Ltd | CNY (¥) | USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets - customer relationship | ¥ 7,000,000 | $ 1,083,951 |
Less: accumulated amortization | (350,000) | (54,198) |
Total intangible assets, net as of June 30,2021 | ¥ 6,650,000 | $ 1,029,754 |
Average Useful Life (in Years) | 10 years |
BUSINESS ACQUISITION AND INVE_7
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair value of unadited pro forma (Details) | 12 Months Ended |
Jun. 30, 2021CNY (¥)¥ / sharesshares | |
Future Gas Station (Beijing) Technology, Ltd | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Revenues | ¥ 6,393,216 |
Net loss | ¥ (2,362,502) |
Loss per common share - basis and diluted | ¥ / shares | ¥ (0.19) |
Weighted average shares - basic and diluted | shares | 12,697,024 |
Combined | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Revenues | ¥ 51,763,984 |
Net loss | ¥ (21,795,802) |
Loss per common share - basis and diluted | ¥ / shares | ¥ (1.72) |
Weighted average shares - basic and diluted | shares | 12,697,024 |
RECON TECHNOLOGY, LTD | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Revenues | ¥ 45,370,768 |
Net loss | ¥ (19,433,300) |
Loss per common share - basis and diluted | ¥ / shares | ¥ (1.53) |
Weighted average shares - basic and diluted | shares | 12,697,024 |
LEASES - Operating lease relate
LEASES - Operating lease related assets and liabilities (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) |
Operating lease related assets and liabilities recorded on the balance sheets | ||||
Rights of use lease assets | ¥ 7,925,930 | $ 1,227,332 | ¥ 2,549,914 | |
Operating lease liabilities - current | 2,226,832 | 344,825 | 1,328,976 | $ 344,825 |
Operating lease liabilities - non-current | 4,792,101 | 742,058 | 1,210,088 | 742,058 |
Total operating lease liabilities | ¥ 7,018,933 | $ 1,086,883 | ¥ 2,539,064 | $ 1,086,883 |
LEASES - weighted average remai
LEASES - weighted average remaining lease terms and discount rates (Details) | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Remaining lease term and discount rate: | |||
Weighted average remaining lease term (years) | 2 years 7 months 2 days | 2 years 7 months 2 days | 2 years 6 months 25 days |
Weighted average discount rate | 5.00% | 5.00% | 5.00% |
Operating lease costs | ¥ 2,034,105 | $ 314,982 | ¥ 1,348,742 |
Short-term lease costs | ¥ 1,291,685 | $ 200,018 | ¥ 1,142,417 |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) |
Schedule, by years, of maturities of lease liabilities | ||||
2022 | ¥ 3,820,677 | $ 591,633 | ||
2023 | 3,002,494 | 464,937 | ||
2024 | 1,953,178 | 302,449 | ||
Total lease payments | 8,776,349 | 1,359,019 | ||
Less: imputed interest | (459,947) | (71,223) | ||
Less: prepayments | (1,297,469) | (200,913) | ||
Total operating lease liabilities | 7,018,933 | $ 1,086,883 | ¥ 2,539,064 | 1,086,883 |
Less: operating lease liabilities - current | (2,226,832) | (344,825) | (1,328,976) | (344,825) |
Operating lease liabilities - non-current | ¥ 4,792,101 | $ 742,058 | ¥ 1,210,088 | $ 742,058 |
LEASES - Additional information
LEASES - Additional information (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jul. 01, 2019CNY (¥) | Jul. 01, 2019USD ($) |
Lessee, Lease, Description [Line Items] | ||||||
Operating lease right-of-use assets (including 803,503 and 352,775 ($54,627) from a related party as of June 30, 2020 and June 30, 2021, respectively) | ¥ 7,925,930 | $ 1,227,332 | ¥ 2,549,914 | |||
Operating Lease, liabilities | ¥ 7,018,933 | $ 1,086,883 | ¥ 2,539,064 | $ 1,086,883 | ||
ASU 2016-02 | Restatement | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease right-of-use assets (including 803,503 and 352,775 ($54,627) from a related party as of June 30, 2020 and June 30, 2021, respectively) | ¥ 1,228,963 | $ 190,305 | ||||
Operating Lease, liabilities | ¥ 1,228,963 | $ 190,305 | ||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lease term | 1 year | 1 year | ||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lease term | 3 years | 3 years |
OTHER PAYABLES - Third Party (D
OTHER PAYABLES - Third Party (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Other Payables [Line Items] | |||
Total | ¥ 9,862,762 | $ 1,527,251 | ¥ 2,609,486 |
Third Party [Member] | |||
Other Payables [Line Items] | |||
Service | 7,940,481 | 1,229,586 | 1,685,449 |
Distributors and employees | 1,488,329 | 230,468 | 273,968 |
Accrued expenses | 206,051 | 31,907 | 402,699 |
Others | 227,901 | 35,290 | 247,370 |
Total | ¥ 9,862,762 | $ 1,527,251 | ¥ 2,609,486 |
OTHER PAYABLES - Related Party
OTHER PAYABLES - Related Party (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Other Payables [Line Items] | |||
Total | ¥ 9,862,762 | $ 1,527,251 | ¥ 2,609,486 |
Related Party | |||
Other Payables [Line Items] | |||
Expenses paid by the major shareholders | 1,594,543 | 246,916 | 3,752,353 |
Due to family members of the owners of BHD and FGS | 545,159 | 84,418 | 485,000 |
Due to management staff for costs incurred on behalf of the Company | 260,965 | 40,410 | 260,965 |
Total | ¥ 2,400,667 | $ 371,744 | ¥ 4,498,318 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
TAXES PAYABLE | |||
VAT payable | ¥ 643,896 | $ 99,707 | ¥ 660,278 |
Income tax payable | 440,030 | 68,139 | 440,030 |
Other taxes payable | 165,068 | 25,561 | 7,980 |
Total taxes payable | ¥ 1,248,994 | $ 193,407 | ¥ 1,108,288 |
SHORT-TERM BANK LOANS - Compone
SHORT-TERM BANK LOANS - Components (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Short-term Debt [Line Items] | |||
Total short-term bank loans | ¥ 15,000,000 | $ 2,322,753 | ¥ 9,520,000 |
Bank of Nanjing | |||
Short-term Debt [Line Items] | |||
Total short-term bank loans | 4,000,000 | 619,401 | 2,500,000 |
Beijing Rural Commercial Bank | |||
Short-term Debt [Line Items] | |||
Total short-term bank loans | 10,000,000 | 1,548,502 | 6,000,000 |
Industrial and Commercial Bank of China | |||
Short-term Debt [Line Items] | |||
Total short-term bank loans | ¥ 1,020,000 | ||
China Construction Bank | |||
Short-term Debt [Line Items] | |||
Total short-term bank loans | ¥ 1,000,000 | $ 154,850 |
SHORT-TERM BANK LOANS - Additio
SHORT-TERM BANK LOANS - Additional information (Details) | Jun. 21, 2021USD ($) | May 18, 2021CNY (¥) | May 18, 2021USD ($) | Apr. 23, 2021CNY (¥) | Apr. 23, 2021USD ($) | Jul. 10, 2020CNY (¥) | Jul. 01, 2020CNY (¥) | Jul. 01, 2020USD ($) | Jun. 23, 2020CNY (¥) | Jun. 01, 2020 | May 22, 2020CNY (¥) | Apr. 30, 2020CNY (¥) | Apr. 30, 2020USD ($) | Apr. 23, 2020CNY (¥) | Apr. 15, 2020CNY (¥) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Jun. 30, 2021USD ($) | Nov. 19, 2020CNY (¥) | Nov. 19, 2020USD ($) | Jul. 10, 2020USD ($) | Jun. 23, 2020USD ($) | Jun. 21, 2020CNY (¥) | May 22, 2020USD ($) | Apr. 23, 2020USD ($) | Apr. 15, 2020USD ($) | Jan. 01, 2020CNY (¥) | Jan. 01, 2020USD ($) |
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||
Proceeds from debt | ¥ 16,020,000 | $ 2,480,700 | ¥ 9,520,000 | ¥ 2,500,000 | ||||||||||||||||||||||||||
Interest Expense on Bank Loan | ¥ 602,124 | $ 93,239 | ¥ 203,049 | ¥ 2,749 | ||||||||||||||||||||||||||
Bank of Nanjing | ||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||
Face amount of debt | $ 387,126 | ¥ 1,500,000 | $ 232,275 | ¥ 2,500,000 | ¥ 2,500,000 | $ 387,126 | ||||||||||||||||||||||||
Term of debt | 1 year | 1 year | 1 year | |||||||||||||||||||||||||||
Interest rate (as a percent) | 4.35% | 4.35% | ||||||||||||||||||||||||||||
Proceeds from debt | ¥ 1,500,000 | $ 232,275 | ||||||||||||||||||||||||||||
Beijing Rural Commercial Bank | ||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||
Face amount of debt | ¥ 6,000,000 | ¥ 10,000,000 | $ 929,101 | $ 1,548,502 | ||||||||||||||||||||||||||
Term of debt | 1 year | 1 year | ||||||||||||||||||||||||||||
Interest rate (as a percent) | 5.655% | 4.60% | 5.655% | 4.60% | ||||||||||||||||||||||||||
Proceeds from debt | ¥ 4,400,000 | $ 681,341 | ¥ 5,600,000 | $ 867,161 | ¥ 6,000,000 | $ 929,101 | ||||||||||||||||||||||||
Carrying value of self-owned housing property pledged as collateral | ¥ 17,600,000 | ¥ 15,600,000 | $ 2,416,592 | $ 2,722,267 | ||||||||||||||||||||||||||
Industrial and Commercial Bank of China | ||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||
Face amount of debt | ¥ 1,020,000 | ¥ 1,020,000 | $ 157,947 | $ 157,947 | ||||||||||||||||||||||||||
Term of debt | 6 months | |||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.45% | 3.85% | 3.85% | 4.45% | ||||||||||||||||||||||||||
China Construction Bank | ||||||||||||||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||||||||||||||
Face amount of debt | ¥ 1,000,000 | $ 154,850 | ||||||||||||||||||||||||||||
Term of debt | 1 year | |||||||||||||||||||||||||||||
Interest rate (as a percent) | 4.0525% | 4.0525% |
SHORT-TERM BORROWINGS - Due to
SHORT-TERM BORROWINGS - Due to third party (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Short-term Debt [Line Items] | |||
Total short-term borrowings due to third party | ¥ 530,000 | $ 82,071 | ¥ 200,000 |
Interest 15% annual interest, due on June 23, 2021 | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to third party | 230,000 | 35,616 | 200,000 |
Interest-free, due on May 12, 2022 | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to third party | 200,000 | 30,970 | 0 |
Interest-free, due on June 21, 2022 | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to third party | ¥ 100,000 | $ 15,485 | ¥ 0 |
SHORT-TERM BORROWINGS - Due t_2
SHORT-TERM BORROWINGS - Due to related party (Details) | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | |
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 12,676,042 | ¥ 10,230,746 | $ 1,962,888 |
Short Term Borrowings One [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 0 | ¥ 5,008,640 | 0 |
Debt Instrument, Maturity Date | Dec. 19, 2020 | ||
Debt Instrument, Interest Rate Percentage | 5.65% | ||
Short Term Borrowings Two [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 0 | ¥ 4,002,106 | 0 |
Debt Instrument, Maturity Date | Mar. 25, 2021 | ||
Debt Instrument, Interest Rate Percentage | 4.55% | ||
Short Term Borrowings Three [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 0 | ¥ 450,000 | 0 |
Debt Instrument, Maturity Date | Sep. 24, 2020 | ||
Short Term Borrowings Four [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 0 | 770,000 | 0 |
Debt Instrument, Maturity Date | Dec. 31, 2020 | ||
Short Term Borrowings Five [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 5,006,042 | 0 | 775,187 |
Debt Instrument, Maturity Date | Dec. 21, 2021 | ||
Debt Instrument, Interest Rate Percentage | 4.35% | ||
Short Term Borrowings Six [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 4,000,000 | 0 | 619,401 |
Debt Instrument, Maturity Date | Mar. 25, 2022 | ||
Debt Instrument, Interest Rate Percentage | 4.35% | ||
Short Term Borrowings Seven [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 670,000 | 0 | 103,750 |
Debt Instrument, Interest Rate Percentage | 0.00% | ||
Short Term Borrowings Eight [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term borrowings due to related parties | ¥ 3,000,000 | ¥ 0 | $ 464,550 |
Debt Instrument, Maturity Date | Mar. 24, 2022 | ||
Debt Instrument, Interest Rate Percentage | 0.00% |
SHORT-TERM BORROWINGS - Additio
SHORT-TERM BORROWINGS - Additional Information (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Short-term Debt [Line Items] | ||||
Interest expense due to third party | ¥ 30,000 | $ 4,646 | ¥ 0 | ¥ 81,096 |
Short Term Borrowings [Member] | ||||
Short-term Debt [Line Items] | ||||
Guaranteed or collateralized | 0 | 0 | ||
Interest expense due to related party | ¥ 433,281 | $ 67,094 | ¥ 506,358 | ¥ 508,474 |
LONG-TERM BORROWINGS DUE TO R_3
LONG-TERM BORROWINGS DUE TO RELATED PARTY - Due to related party (Details) - Related Party | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Long-term borrowing from a founder, monthly payments of 126,135 inclusive of interest at 8.90%, ten years loan, due in November 2027. | ¥ 7,406,617 | $ 1,146,916 | ¥ 8,226,599 |
Less: current portion | (920,066) | (142,472) | (847,346) |
Total long-term borrowings due to related party | ¥ 6,486,551 | $ 1,004,444 | ¥ 7,379,253 |
LONG-TERM BORROWINGS DUE TO R_4
LONG-TERM BORROWINGS DUE TO RELATED PARTY - Parenthetical (Details) - Long-term Borrowings [Member] - Related Party | 12 Months Ended |
Jun. 30, 2021CNY (¥) | |
Debt Instrument, Periodic Payment | ¥ 126,135 |
Debt Instrument, Interest Rate, Stated Percentage | 8.90% |
Debt Instrument, Term | 10 years |
LONG-TERM BORROWINGS DUE TO R_5
LONG-TERM BORROWINGS DUE TO RELATED PARTY - Future maturities (Details) - Related Party | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
2022 | ¥ 920,066 | $ 142,472 | |
2023 | 975,474 | 151,052 | |
2024 | 1,065,921 | 165,058 | |
2025 | 1,164,755 | 180,363 | |
2026 | 1,272,753 | 197,086 | |
Thereafter | 2,007,648 | 310,885 | |
Total | ¥ 7,406,617 | $ 1,146,916 | ¥ 8,226,599 |
LONG-TERM BORROWINGS DUE TO R_6
LONG-TERM BORROWINGS DUE TO RELATED PARTY - Additional Information (Details) - Long-term Borrowings [Member] | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Interest Expense, Long-term Debt | ¥ 693,641 | $ 107,410 | ¥ 763,220 | ¥ 826,895 |
Guaranteed or collateralized | ¥ 0 | ¥ 0 |
CLASS A ORDINARY SHARES (Detail
CLASS A ORDINARY SHARES (Details) | Jun. 14, 2021USD ($)$ / sharesshares | Apr. 05, 2021USD ($)Vote$ / sharesshares | Jun. 26, 2020USD ($)$ / sharesshares | May 21, 2020USD ($)$ / sharesshares | Dec. 26, 2019shares | Dec. 10, 2019$ / sharesshares | Aug. 21, 2018USD ($)shares | Aug. 21, 2018CNY (¥)shares | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)shares | Jun. 30, 2021USD ($)$ / sharesshares | Jan. 13, 2021 | Dec. 31, 2020 | Jun. 30, 2020CNY (¥)shares | Sep. 21, 2018$ / shares |
Equity [Line Items] | ||||||||||||||||||
Cost Method Investment Ownership Percentage | 43.00% | 43.00% | 43.00% | |||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | |||||||||||||||||
Reverse stock split ratio | 0.2 | 0.2 | ||||||||||||||||
Number of Ordinary Shares called for by warrants | 911,112 | 1,680,000 | ||||||||||||||||
Gross proceeds | $ | $ 2,100,000 | $ 2,100,000 | ||||||||||||||||
Payments of Stock Issuance Costs | $ | 200,000 | 300,000 | ||||||||||||||||
Net proceeds | $ | $ 1,900,000 | $ 1,700,000 | ||||||||||||||||
Stock Issued During Period, Value, New Issues | ¥ 81,091,141 | $ 12,556,980 | ¥ 25,766,355 | $ 3,989,925 | ||||||||||||||
Placement agent's fees and other estimated offering expenses | ¥ 30,408,264 | $ 4,700,000 | ||||||||||||||||
Percentage Transfer Of Profit To Statutory Reserves | 10.00% | 10.00% | ||||||||||||||||
Transfer Of Profit To Statutory Reserves Up to Certain Percentage Of Registered Capital | 50.00% | 50.00% | ||||||||||||||||
Appropriated retained earnings | ¥ 4,148,929 | $ 642,462 | ¥ 4,148,929 | |||||||||||||||
Proceeds from Issuance of Common Stock | ¥ 81,091,141 | $ 12,556,980 | ¥ 26,141,051 | ¥ 0 | ||||||||||||||
Restricted shares | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 188,662 | 188,662 | 250,086 | 250,086 | 858,667 | |||||||||||||
Minimum | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 8.00% | 8.00% | ||||||||||||||||
Maximum | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 43.00% | 43.00% | ||||||||||||||||
Class A ordinary shares | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | |||||||||||||||||
Reverse stock split ratio | 0.2 | |||||||||||||||||
Common shares, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||
Par value (in dollars per share) | $ / shares | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | ||||||||||||
Number of ordinary share in lieu of the fractional share, the shareholder was entitled to receive | 23,049,639 | |||||||||||||||||
Common shares, shares outstanding | 4,611,720 | 26,868,391 | 26,868,391 | 7,202,832 | ||||||||||||||
Number of Common Stock to be Issued | 1,680,000 | 911,112 | ||||||||||||||||
Number of Ordinary Shares called for by warrants | 6,014,102 | 1,680,000 | 911,112 | 8,814,102 | 8,814,102 | |||||||||||||
Authorized share capital | $ | $ 15,725,000 | |||||||||||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||
Number of votes | Vote | 1 | |||||||||||||||||
Stock issuance (in shares) | 6,014,102 | |||||||||||||||||
Class A ordinary shares | Minimum | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Common shares, shares authorized | 20,000,000 | |||||||||||||||||
Par value (in dollars per share) | $ / shares | $ 0.0185 | |||||||||||||||||
Common Stock, Shares Authorized | 20,000,000 | |||||||||||||||||
Class A ordinary shares | Maximum | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Common shares, shares authorized | 100,000,000 | |||||||||||||||||
Par value (in dollars per share) | $ / shares | $ 0.0925 | |||||||||||||||||
Common Stock, Shares Authorized | 100,000,000 | |||||||||||||||||
Class B ordinary shares | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Common shares, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||||
Par value (in dollars per share) | $ / shares | $ 0.0925 | $ 0.0925 | $ 0.0925 | |||||||||||||||
Common shares, shares outstanding | 0 | 0 | 0 | |||||||||||||||
Authorized share capital | $ | $ 1,850,000 | |||||||||||||||||
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||||
Number of votes | Vote | 15 | |||||||||||||||||
Pre-funded warrants | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Number of Ordinary Shares called for by warrants | 8,814,102 | |||||||||||||||||
Gross proceeds | $ | $ 55,000,000 | |||||||||||||||||
Stock issuance (in shares) | 2,800,000 | |||||||||||||||||
Future Gas Station (Beijing) Technology, Ltd | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | |||||||||||||||||
Payments to Acquire Additional Interest in Subsidiaries | $ 10,000,000 | ¥ 10,000,000 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 | |||||||||||||||||
Shares Issued, Price Per Share | $ / shares | $ 6.4375 | |||||||||||||||||
Future Gas Station (Beijing) Technology, Ltd | Class A ordinary shares | ||||||||||||||||||
Equity [Line Items] | ||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 487,057 |
CLASS A ORDINARY SHARES - Pre f
CLASS A ORDINARY SHARES - Pre funded warrants (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Warrant or Right [Line Items] | ||
Weighted Average Exercise Price Outstanding Per Share | $ 1.25 | |
Issued | 6.24 | $ 1.25 |
Exercised | 1.25 | |
Weighted Average Exercise Price Outstanding Per Share | $ 6.24 | $ 1.25 |
Weighted average remaining period, outstanding | 5 years 4 months 17 days | 5 years 6 months |
Pre-funded warrants | ||
Class of Warrant or Right [Line Items] | ||
Issued | 2,800,000 | |
Exercised | (1,330,000) | |
Warrants Outstanding | 1,470,000 | |
Issued | $ 0.01 | |
Exercised | 0.01 | |
Weighted Average Exercise Price Outstanding Per Share | $ 0.01 |
COMMON STOCK PURCHASE WARRANT_3
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS (Details) | Jun. 26, 2020item$ / sharesshares | May 21, 2020USD ($)item$ / sharesshares | Jun. 30, 2021CNY (¥)Yshares | Jun. 30, 2021USD ($)Y$ / sharesshares | Jun. 14, 2021Yshares | Jun. 30, 2020USD ($)$ / sharesshares |
Class of Warrant or Right [Line Items] | ||||||
Number of offerings | item | 2 | 2 | ||||
Number of warrants to purchase ordinary shares | shares | 911,112 | 1,680,000 | ||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1.25 | $ 2.25 | $ 1.25 | |||
Fair value of warrants | $ | $ 1,689,389 | $ 34,860,000 | $ 1,639,333 | |||
Fair value of the warrant liability | ¥ 190,635,850 | $ 29,520,000 | ||||
Class A ordinary shares | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants to purchase ordinary shares | shares | 1,680,000 | 911,112 | 8,814,102 | 8,814,102 | 6,014,102 | |
Exercise price of warrants (in dollars per share) | $ / shares | $ 5,340,000 | |||||
Risk-free interest rate | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants outstanding, measurement input | 0.40 | 0.95 | 0.95 | 0.90 | 0.35 | |
Warrant life | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants outstanding, measurement input | Y | 5.5 | 5.5 | 5.5 | |||
Warrants and rights outstanding, term | 5 years 6 months | 5 years 6 months | ||||
Volatility | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants outstanding, measurement input | 99.50 | 111 | 111 | 111 | 104.26 | |
Expected dividend yield | ||||||
Class of Warrant or Right [Line Items] | ||||||
Warrants outstanding, measurement input | 0 | 0 |
COMMON STOCK PURCHASE WARRANT_4
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS - Warrant activities (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Warrant or Right [Line Items] | ||
Weighted Average Exercise Price Outstanding Per Share | $ 1.25 | |
Issued | 6.24 | $ 1.25 |
Exercised | 1.25 | |
Weighted Average Exercise Price Outstanding Per Share | $ 6.24 | $ 1.25 |
Weighted average remaining period, outstanding | 5 years 4 months 17 days | 5 years 6 months |
Warrant [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants Outstanding | 2,591,112 | |
Issued | 8,814,102 | 2,591,112 |
Exercised | (2,591,112) | |
Warrants Outstanding | 8,814,102 | 2,591,112 |
COMMON STOCK PURCHASE WARRANT_5
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS - Measurement inputs (Details) | Jun. 30, 2021¥ / sharesY | Jun. 14, 2021¥ / sharesY | Jun. 30, 2020 | May 21, 2020 |
Stock price | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants outstanding, measurement input | 4.33 | 5.01 | ||
Risk-free interest rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants outstanding, measurement input | 0.95 | 0.90 | 0.35 | 0.40 |
Volatility | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants outstanding, measurement input | 111 | 111 | 104.26 | 99.50 |
Exercise price | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants outstanding, measurement input | 6.24 | 6.24 | ||
Warrant life | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants outstanding, measurement input | Y | 5.5 | 5.5 |
COMMON STOCK PURCHASE WARRANT_6
COMMON STOCK PURCHASE WARRANTS ISSUED TO INVESTORS - Liabilties (Details) | Jun. 30, 2021CNY (¥) |
Liabilities: | |
Warrant liability | ¥ 29,520,000 |
Level 3 | |
Liabilities: | |
Warrant liability | ¥ 29,520,000 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) | Jan. 28, 2021USD ($)shares | Nov. 25, 2020USD ($)item$ / sharesshares | Jun. 30, 2021$ / shares | Jun. 14, 2021$ / shares | Apr. 05, 2021$ / shares | Jun. 30, 2020$ / shares | Jun. 26, 2020$ / shares | May 21, 2020$ / shares |
Class A ordinary shares | ||||||||
Short-term Debt [Line Items] | ||||||||
Common shares, par value (in dollars per share) | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | ||
Convertible Notes | ||||||||
Short-term Debt [Line Items] | ||||||||
Interest rate (as a percent) | 12.00% | |||||||
Term of debt | 6 months | |||||||
Number of equal monthly payments to pay principal and interest on debt | item | 6 | |||||||
Convertible Notes | Class A ordinary shares | ||||||||
Short-term Debt [Line Items] | ||||||||
Aggregate principal amount | $ | $ 6,485,000 | |||||||
Common shares, par value (in dollars per share) | $ 0.0925 | |||||||
Conversion price per ordinary share (in dollars per share) | $ 0.71 | |||||||
Maximum number of shares issuable | shares | 9,466,137 | |||||||
Shares issued upon conversion (in shares) | shares | 9,225,338 | |||||||
Principal and interests amount of debt converted | $ | $ 6,549,990 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
STOCK-BASED COMPENSATION | ||
Stock Options, Shares, Outstanding at Beginning | 109,520 | 163,120 |
Stock Options, Shares, Granted | 0 | 0 |
Stock Options, Shares, Forfeited | 0 | 0 |
Stock Option, Shares, Exercised | 0 | 0 |
Stock Option, Shares, Expired | 0 | 53,600 |
Stock Options, Shares, Outstanding at Ending | 109,520 | 109,520 |
Stock Options, Weighted Average Exercise Price Per share, Outstanding at Beginning | $ 10.02 | $ 15.20 |
Stock Options, Weighted Average Exercise Price Per share, Granted | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Forfeited | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Exercised | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Expired | 0 | 25.75 |
Stock Options, Weighted Average Exercise Price Per share, Outstanding at Ending | $ 10.02 | $ 10.02 |
STOCK-BASED COMPENSATION - Opti
STOCK-BASED COMPENSATION - Option outstanding (Details) | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Number (in shares) | 109,520 |
Stock Option One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Average Exercise Price | $ / shares | $ 14.80 |
Outstanding Options, Number (in shares) | 29,520 |
Outstanding Options, Average Remaining Contractual life (Years) | 8 months 26 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 14.80 |
Exercisable Options, Number (in shares) | 29,520 |
Exercisable Options, Average Remaining Contractual life (years) | 8 months 26 days |
Stock Option Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Average Exercise Price | $ / shares | $ 8.25 |
Outstanding Options, Number (in shares) | 80,000 |
Outstanding Options, Average Remaining Contractual life (Years) | 3 years 7 months 2 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 8.25 |
Exercisable Options, Number (in shares) | 80,000 |
Exercisable Options, Average Remaining Contractual life (years) | 3 years 7 months 2 days |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted shares (Details) - shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted - Shares | 0 | 0 |
Restricted shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested, Beginning Balance - Shares | 320,800 | 821,644 |
Granted - Shares | 0 | 0 |
Vested - Shares | (190,400) | (500,844) |
Non-vested, Ending Balance - Shares | 130,400 | 320,800 |
STOCK-BASED COMPENSATION - Stat
STOCK-BASED COMPENSATION - Status of restricted stock (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value per Share 6.45 [Member] | |||
Outstanding Restricted Shares, Fair Value per Share | $ 6.45 | ||
Restricted shares | |||
Outstanding Restricted Shares, Number | 130,400 | ||
Outstanding balance | 130,400 | 320,800 | 821,644 |
Restricted shares | Fair Value per Share 6.45 [Member] | |||
Outstanding Restricted Shares, Number | 130,400 | ||
Outstanding Restricted Shares, Fair Value per Share | $ 0.14 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) | Aug. 27, 2018USD ($)$ / sharesshares | Aug. 21, 2018$ / sharesshares | Oct. 13, 2017USD ($)$ / sharesshares | Aug. 21, 2018USD ($)$ / sharesshares | Mar. 31, 2017 | Jun. 30, 2021CNY (¥)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2019CNY (¥)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeiture | 487,057 | ||||||||
August 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 130,400 | 130,400 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 260,800 | 260,800 | |||||||
Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock or Unit Option Plan Expense | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
Share-based Compensation | $ | $ 0 | ||||||||
Restricted shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock or Unit Option Plan Expense | ¥ 6,140,037 | $ 950,786 | ¥ 7,944,835 | ¥ 21,288,204 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | ||||||
Restricted shares issued for services (in shares) | 180,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 130,400 | 130,400 | |||||||
Shares, Outstanding | 188,662 | 188,662 | 250,086 | 858,667 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeiture | 188,662 | 188,662 | 250,086 | 858,667 | |||||
Restricted shares | Employees And Non Employee Director [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 919,800 | ||||||||
Restricted Stock Closing Price | $ / shares | $ 5.11 | ||||||||
Restricted shares | Senior Manager [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation | $ | $ 100,000 | ||||||||
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 1 month 20 days | 1 month 20 days | |||||||
Restricted shares | Management [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation | ¥ | ¥ 800,000 | ||||||||
Restricted shares | August 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 2,523,240 | ||||||||
Restricted Stock Closing Price | $ / shares | $ 6.45 | $ 6.45 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 391,200 | ||||||||
Restricted shares | August 2018 | Independent Company [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted Stock Closing Price | $ / shares | $ 6.40 | ||||||||
Stock Issued During Period, Shares, Issued for Services | 5,000 | ||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 32,000 | ||||||||
Restricted Stock For Services [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock or Unit Option Plan Expense | ¥ | 0 | ¥ 33,927 | ¥ 845,781 | ||||||
Share-based Compensation | ¥ | ¥ 0 | ¥ 0 | ¥ 0 |
INCOME TAX (Details)
INCOME TAX (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
INCOME TAX | ||||
Outside China areas | ¥ 4,011,449 | $ 621,174 | ¥ (10,160,525) | ¥ (28,447,953) |
China | (30,402,528) | (4,707,838) | (9,679,757) | 3,064,024 |
Loss before income tax | ¥ (26,391,079) | $ (4,086,664) | ¥ (19,840,282) | ¥ (25,383,929) |
INCOME TAX - Deferred tax asset
INCOME TAX - Deferred tax asset, net (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Deferred tax assets: | |||
Allowance for credit losses | ¥ 2,137,968 | $ 331,065 | ¥ 1,180,160 |
Impairment for inventory | 160,791 | 24,899 | 0 |
Impairment loss from investment in unconsolidated entity | 0 | 0 | 605,660 |
Net operating loss carryforwards | 15,741,037 | 2,437,503 | 10,441,633 |
Subtotal | 18,039,796 | 2,793,467 | 12,227,453 |
Less: Valuation allowance | (17,427,464) | (2,698,647) | (12,162,660) |
Total deferred tax assets | 612,332 | 94,820 | 64,793 |
Deferred tax Liability: | |||
Accelerated amortization of intangible assets | (92,032) | (14,251) | (64,793) |
Gain on the previously held equity method investment | (146,888) | (22,746) | 0 |
Recognition of customer relationship arising from business combinations | (997,500) | (154,463) | 0 |
Total deferred tax liability | (1,236,420) | (191,460) | (64,793) |
Deferred tax liability, net | ¥ (624,088) | $ (96,640) | ¥ 0 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of income tax expense (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
INCOME TAX | ||||
Income tax benefits calculated at PRC statutory rates | ¥ (6,597,770) | $ (1,021,666) | ¥ (4,960,454) | ¥ (6,318,111) |
Nondeductible expenses and others | 338,058 | 52,348 | 232,213 | (56,127) |
Effect of tax rate differential | 626,245 | 96,974 | 2,008,824 | 6,378,169 |
Benefit of revenue exempted from enterprise income tax | (57,250) | (8,865) | (266,548) | (279,352) |
Change in valuation allowances | 5,264,804 | 815,256 | 3,268,287 | 673,898 |
Tax refund | (98,338) | (15,227) | ||
Provision (benefit) for income tax | ¥ (524,251) | $ (81,180) | ¥ 282,322 | ¥ 398,477 |
INCOME TAX - Income tax expense
INCOME TAX - Income tax expense (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
INCOME TAX | ||||
Current income tax provision (benefit) | ¥ (98,338) | $ (15,228) | ¥ 282,322 | ¥ 398,477 |
Deferred income tax benefit | (425,913) | (65,952) | 0 | 0 |
Provision (benefit) for income tax | ¥ (524,251) | $ (81,180) | ¥ 282,322 | ¥ 398,477 |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% |
Nanjing Recon Technology Co Ltd [Member] | |
Income Taxes [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 15.00% |
Beijing Bhd Petroleum Technology Co Ltd [Member] | |
Income Taxes [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 15.00% |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) | 12 Months Ended | |||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | ¥ 479,490,763 | ¥ 282,505,455 | $ 74,249,242 | |||
Capital contribution receivable due from non-controlling Interest | (50,000,000) | $ (7,742,510) | ||||
Accumulated other comprehensive loss | 1,974,836 | 2,825,731 | 305,804 | |||
Total non-controlling interests | (7,579,568) | 10,614,526 | (1,173,698) | |||
Capital contribution received | 50,000 | 7,743 | 405,000 | ¥ 850,000 | ||
Capital contribution repaid | 0 | 200,000 | ||||
Non-controlling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | 6,656,000 | 6,606,000 | 1,030,683 | $ 934,406 | ||
Capital contribution receivable due from non-controlling Interest | (50,000,000) | (7,742,510) | ||||
Unappropriated retained earnings | 1,005,135 | 4,039,229 | 155,645 | 571,342 | ||
Accumulated other comprehensive loss | (30,703) | (30,703) | (4,754) | (4,343) | ||
Noncontrolling interest recognized upon business acquisiton | 34,790,000 | 5,387,238 | ||||
Total non-controlling interests | (7,579,568) | 10,614,526 | $ (1,173,698) | $ 1,501,405 | ||
Bhd [Member] | Non-controlling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | 1,651,000 | 1,651,000 | ||||
Unappropriated retained earnings | 3,477,493 | 3,477,493 | ||||
Accumulated other comprehensive loss | (18,850) | (18,850) | ||||
Total non-controlling interests | 5,109,643 | 5,109,643 | ||||
Nanjing Recon [Member] | Non-controlling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | 200,000 | 200,000 | ||||
Unappropriated retained earnings | 3,616,002 | 3,616,002 | ||||
Accumulated other comprehensive loss | (11,853) | (11,853) | ||||
Total non-controlling interests | 3,804,149 | 3,804,149 | ||||
Gan Su BHD [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Capital contribution received | 50,000 | $ 7,743 | 405,000 | ¥ 850,000 | ||
Gan Su BHD [Member] | Non-controlling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | 4,805,000 | 4,755,000 | ||||
Capital contribution receivable due from non-controlling Interest | 0 | |||||
Unappropriated retained earnings | (4,106,883) | (2,100,871) | ||||
Accumulated other comprehensive loss | 0 | |||||
Noncontrolling interest recognized upon business acquisiton | 0 | |||||
Total non-controlling interests | 698,117 | 2,654,129 | ||||
Qinghai BHD [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | 200,000 | |||||
Qinghai BHD [Member] | Non-controlling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Paid-in capital | 0 | |||||
Capital contribution receivable due from non-controlling Interest | 0 | |||||
Unappropriated retained earnings | (1,442,443) | (953,395) | ||||
Accumulated other comprehensive loss | 0 | |||||
Noncontrolling interest recognized upon business acquisiton | 0 | |||||
Total non-controlling interests | (1,442,443) | ¥ (953,395) | ||||
Future Gas Station (Beijing) Technology, Ltd | Non-controlling Interest [Member] | ||||||
Noncontrolling Interest [Line Items] | ||||||
Capital contribution receivable due from non-controlling Interest | (50,000,000) | |||||
Unappropriated retained earnings | (539,034) | |||||
Noncontrolling interest recognized upon business acquisiton | 34,790,000 | |||||
Total non-controlling interests | ¥ (15,749,034) |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
China National Petroleum Corporation | Customer One [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 31.00% | 24.00% | |
China National Petroleum Corporation | Customer One [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 11.00% | 18.00% |
China National Petroleum Corporation | Customer Two [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 17.00% | 12.00% | |
China National Petroleum Corporation | Customer Two [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 10.00% | 14.00% |
China National Petroleum Corporation | Customer Three [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
China National Petroleum Corporation | Customer concentration | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 39.00% | 39.00% | 39.00% |
China National Petroleum Corporation | Customer concentration | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 29.00% | 36.00% | 31.00% |
SINOPEC [Member] | Customer concentration | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22.00% | ||
SINOPEC [Member] | Customer concentration | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% |
COMMITMENTS AND CONTINGENCY - P
COMMITMENTS AND CONTINGENCY - Purchase commitment (Details) - Jun. 30, 2021 - Purchase Commitment [Member] | CNY (¥) | USD ($) |
Other Commitment, Fiscal Year Maturity [Abstract] | ||
2022 | ¥ 8,099,019 | $ 1,254,135 |
2023 | 300,000 | 46,455 |
2024 | 300,000 | 46,455 |
2025 | 300,000 | 46,455 |
2026 | 150,000 | 23,228 |
Thereafter | 0 | 0 |
Total minimum payments required | ¥ 9,149,019 | $ 1,416,728 |
COMMITMENTS AND CONTINGENCY - O
COMMITMENTS AND CONTINGENCY - Office Leases Commitment - short term (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Commitment and Contingencies [Line Items] | |||
Total lease payments | ¥ 8,776,349 | $ 1,359,019 | |
Office Leases Commitment [Member] | |||
Commitment and Contingencies [Line Items] | |||
2022 | 511,508 | $ 79,207 | |
Total lease payments | ¥ 511,508 | $ 79,207 |
COMMITMENTS AND CONTINGENCY - A
COMMITMENTS AND CONTINGENCY - Additional Information (Details) - 12 months ended Jun. 30, 2021 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
COMMITMENTS AND CONTINGENCY | ||
Severance Costs | ¥ 6.3 | $ 0.9 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Sales to related party (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Total revenues from related party | ¥ 85,657 | $ 13,264 | ¥ 0 | ¥ 3,726,894 |
Urumqi Yikeli Automatic Control Equipment Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total revenues from related party | ¥ 85,657 | $ 13,264 | ¥ 0 | ¥ 3,726,894 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Prepaid expenses (Details) | 12 Months Ended | ||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | |
Related Party Transaction [Line Items] | |||
Prepaid expenses related parties prepaid expenses | ¥ 433,000 | $ 67,050 | ¥ 0 |
Founders | |||
Related Party Transaction [Line Items] | |||
Prepaid expenses related parties prepaid expenses | 363,000 | 56,210 | 0 |
Founder Family Member | |||
Related Party Transaction [Line Items] | |||
Prepaid expenses related parties prepaid expenses | ¥ 70,000 | $ 10,840 | ¥ 0 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Leases from related parties (Details) | 12 Months Ended | |
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | |
Monthly Payment [Member] | ||
Operating Leases annual rental expense | ¥ 1,280,000 | $ 200,000 |
Nanjing Recon [Member] | Founders | ||
Lessee, Operating Lease, Period of Contract | April 1, 2020 - March 31, 2022 | April 1, 2020 - March 31, 2022 |
Nanjing Recon [Member] | Founders | Monthly Payment [Member] | ||
Operating Leases annual rental expense | ¥ 40,000 | $ 6,194 |
Bhd [Member] | Founders | ||
Lessee, Operating Lease, Period of Contract | Jan 1, 2021- Dec 31, 2021 | Jan 1, 2021- Dec 31, 2021 |
Bhd [Member] | Founders | Monthly Payment [Member] | ||
Operating Leases annual rental expense | ¥ 22,500 | $ 3,484 |
Bhd [Member] | Founders' family member [Member] | ||
Lessee, Operating Lease, Period of Contract | Mar 1, 2021 - Dec 31, 2021 | Mar 1, 2021 - Dec 31, 2021 |
Bhd [Member] | Founders' family member [Member] | Monthly Payment [Member] | ||
Operating Leases annual rental expense | ¥ 31,667 | $ 4,904 |
Recon BJ [Member] | Founders | ||
Lessee, Operating Lease, Period of Contract | May 1, 2021 - Dec 31, 2021 | May 1, 2021 - Dec 31, 2021 |
Recon BJ [Member] | Founders | Monthly Payment [Member] | ||
Operating Leases annual rental expense | ¥ 12,500 | $ 1,936 |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND BALANCES - Additional Information (Details) | 12 Months Ended | ||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||
Right of use assets | ¥ 7,925,930 | $ 1,227,332 | ¥ 2,549,914 | ||
Operating Lease, liabilities | 7,018,933 | 1,086,883 | 2,539,064 | $ 1,086,883 | |
Monthly Payment [Member] | |||||
Related Party Transaction [Line Items] | |||||
Annual rental expense | 1,280,000 | $ 200,000 | |||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Right of use assets | 352,775 | 54,627 | 803,503 | ||
Operating Lease, liabilities | 352,775 | $ 54,627 | ¥ 803,503 | ||
Related Party | Monthly Payment [Member] | |||||
Related Party Transaction [Line Items] | |||||
Annual rental expense | ¥ 106,667 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | 12 Months Ended | ||||||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | |
Current assets | |||||||
Cash | ¥ 343,998,570 | ¥ 30,336,504 | $ 53,268,248 | $ 4,697,614 | ¥ 4,521,325 | ¥ 45,340,578 | |
Notes receivable | 6,305,633 | 4,180,885 | 976,429 | ||||
Trade accounts receivable, net | 26,686,888 | 48,244,015 | 4,132,470 | ||||
Trade accounts receivable-related party, net | 0 | 3,068,920 | 0 | ||||
Inventories, net | 3,644,522 | 1,985,723 | 564,355 | ||||
Other receivables, net | 6,939,676 | 6,350,802 | 1,074,610 | ||||
Loans to third parties | 50,476,782 | 3,200,377 | 7,816,340 | ||||
Purchase advances, net | 1,078,137 | 178,767 | 166,950 | ||||
Contract costs, net | 48,795,906 | 31,537,586 | 7,556,056 | ||||
Prepaid expenses | 146,071 | 198,294 | 22,619 | ||||
Prepaid expenses - related parties | 433,000 | 67,050 | |||||
Total current assets | 488,505,185 | 129,281,873 | 75,645,127 | ||||
Property and equipment, net | 27,138,768 | 29,756,879 | 4,202,444 | ||||
Land use right, net | 1,253,408 | 1,280,648 | 194,090 | ||||
Investment in unconsolidated entity | 27,931,795 | 31,541,850 | 4,325,244 | ||||
Long-term other receivables, net | 114,679 | 3,640 | 17,758 | ||||
Right of use assets | 7,925,930 | 2,549,914 | 1,227,332 | ||||
Total Assets | 566,516,660 | 194,414,804 | 87,725,220 | ||||
Current liabilities | |||||||
Short-term bank loans | 15,000,000 | 9,520,000 | 2,322,753 | ||||
Trade accounts payable | 21,956,481 | 23,034,347 | 3,399,966 | ||||
Other payables | 9,862,762 | 2,609,486 | 1,527,251 | ||||
Other payable- related parties | 2,400,667 | 4,498,318 | 371,744 | ||||
Accrued payroll and employees' welfare | 1,954,484 | 1,917,635 | 302,652 | ||||
Taxes payable | 1,248,994 | 1,108,288 | 193,407 | ||||
Short-term borrowings | 530,000 | 200,000 | 82,071 | ||||
Short-term borrowings - related parties | 12,676,042 | 10,230,746 | 1,962,888 | ||||
Operating lease liabilities - current | 2,226,832 | 1,328,976 | 344,825 | 344,825 | |||
Total Current Liabilities | 76,462,604 | 65,181,175 | 11,840,250 | ||||
Operating lease liabilities - non-current | 4,792,101 | 1,210,088 | 742,058 | $ 742,058 | |||
Deferred tax liability | 624,088 | 96,640 | |||||
Total Liabilities | 279,001,194 | 73,770,516 | 43,203,392 | ||||
VIE | |||||||
Current assets | |||||||
Cash | 4,293,380 | 6,388,098 | 664,831 | ||||
Notes receivable | 6,305,633 | 4,180,885 | 976,429 | ||||
Trade accounts receivable, net | 24,762,732 | 44,031,079 | 3,834,514 | ||||
Trade accounts receivable-related party, net | 0 | 3,068,920 | 0 | ||||
Inventories, net | 3,644,522 | 1,985,723 | 564,355 | ||||
Other receivables, net | 5,988,641 | 6,342,009 | 927,342 | ||||
Loans to third parties | 1,350,000 | 3,200,377 | 209,048 | ||||
Purchase advances, net | 1,078,137 | 75,195 | 166,950 | ||||
Contract costs, net | 48,795,906 | 31,537,586 | 7,556,056 | ||||
Prepaid expenses | 0 | 42,294 | 0 | ||||
Prepaid expenses - related parties | 433,000 | 0 | 67,050 | ||||
Total current assets | 96,651,951 | 100,852,166 | 14,966,575 | ||||
Property and equipment, net | 27,138,768 | 29,756,879 | 4,202,444 | ||||
Construction in progress | 1,253,408 | 1,280,648 | 194,090 | ||||
Land use right, net | 6,650,000 | 0 | 1,029,754 | ||||
Investment in unconsolidated entity | 0 | 4,000,000 | 0 | ||||
Long-term other receivables, net | 114,679 | 3,640 | 17,758 | ||||
Goodwill | 6,996,895 | 0 | 1,083,471 | ||||
Right of use assets | 7,925,930 | 2,549,914 | 1,227,332 | ||||
Total Assets | 146,731,631 | 138,443,247 | 22,721,424 | ||||
Current liabilities | |||||||
Short-term bank loans | 15,000,000 | 9,520,000 | 2,322,753 | ||||
Trade accounts payable | 18,182,770 | 18,903,080 | 2,815,606 | ||||
Other payables | 2,096,830 | 1,115,209 | 324,695 | ||||
Other payable- related parties | 1,253,797 | 3,113,460 | 194,151 | ||||
Advance from customers | 7,686,276 | 3,486,033 | 1,190,221 | ||||
Accrued payroll and employees' welfare | 1,565,898 | 850,841 | 242,480 | ||||
Taxes payable | 1,249,052 | 1,108,265 | 193,416 | ||||
Intercompany payables | 95,284,791 | $ 14,754,869 | 88,134,791 | ||||
Short-term borrowings | 530,000 | 200,000 | 82,071 | ||||
Short-term borrowings - related parties | 12,676,042 | 10,230,746 | 1,962,888 | ||||
Long-term borrowings - related party - current portion | 920,066 | 847,346 | 142,472 | ||||
Operating lease liabilities - current | 2,226,832 | 1,328,976 | 344,825 | ||||
Total Current Liabilities | 158,672,354 | 138,838,747 | 24,570,447 | ||||
Operating lease liabilities - non-current | 4,792,101 | 1,210,088 | 742,058 | ||||
Long-term borrowings - related party | 6,486,551 | 7,379,253 | 1,004,444 | ||||
Deferred tax liability | 624,088 | 0 | 96,640 | ||||
Total Liabilities | 170,575,094 | 147,428,088 | 26,413,589 | ||||
Related Party | |||||||
Current liabilities | |||||||
Long-term borrowings - related party - current portion | 920,066 | 847,346 | 142,472 | ||||
Long-term borrowings - related party | ¥ 6,486,551 | ¥ 7,379,253 | $ 1,004,444 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenues | ¥ 47,938,575 | $ 7,423,298 | ¥ 65,760,651 | ¥ 102,384,327 |
Operating expenses | 68,793,976 | 10,652,760 | 39,783,428 | 54,108,938 |
Net income (loss) | 22,832,734 | 3,535,654 | 19,246,701 | 25,355,905 |
VIE | ||||
Variable Interest Entity [Line Items] | ||||
Revenues | 47,817,378 | 7,404,531 | 45,681,441 | 102,384,327 |
Operating expenses | (33,696,978) | (5,217,984) | 20,811,514 | 21,501,642 |
Net income (loss) | ¥ 29,155,914 | $ 4,514,799 | ¥ 10,563,458 | ¥ 3,500,635 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥)segment | Jun. 30, 2021USD ($)segment | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Number of operating segments | 4 | 4 | ||
Total revenue | ¥ 47,938,575 | $ 7,423,298 | ¥ 65,760,651 | ¥ 102,384,327 |
Automation product and software [Member] | ||||
Total revenue | 18,535,166 | 2,870,175 | 51,413,830 | 63,577,177 |
Equipment and accessories [Member] | ||||
Total revenue | 15,791,623 | 2,445,336 | 14,222,623 | 23,951,132 |
Oilfield environmental protection [Member] | ||||
Total revenue | 11,043,979 | 1,710,162 | 124,198 | 14,856,018 |
Platform outsourcing services | ||||
Total revenue | ¥ 2,567,807 | $ 397,625 | ¥ 0 | ¥ 0 |
SEGMENT REPORTING - Company's r
SEGMENT REPORTING - Company's revenue (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Revenue | ¥ 47,938,575 | $ 7,423,298 | ¥ 65,760,651 | ¥ 102,384,327 |
Cost of revenues and related tax | 40,723,547 | 6,306,050 | 46,154,255 | 72,518,963 |
Gross profit | 7,215,028 | 1,117,248 | 19,606,396 | 29,865,364 |
Depreciation and amortization | 3,150,789 | 487,900 | 1,609,700 | 1,124,011 |
Total capital expenditures | 522,416 | 3,868,886 | 6,342,779 | |
Goods transferred at a point in time [Member] | ||||
Revenue | 46,549,014 | 25,093,924 | 102,384,327 | |
Services rendered over time [Member] | ||||
Revenue | 1,389,561 | 40,666,727 | 0 | |
Automation product and software [Member] | ||||
Revenue | 18,535,166 | 2,870,175 | 51,413,830 | 63,577,177 |
Cost of revenues and related tax | 19,942,541 | 38,257,914 | 49,356,155 | |
Gross profit | (1,407,375) | 13,155,916 | 14,221,022 | |
Depreciation and amortization | 277,496 | 98,756 | 78,760 | |
Total capital expenditures | 26,761 | 85,975 | 162,060 | |
Automation product and software [Member] | Goods transferred at a point in time [Member] | ||||
Revenue | 18,535,166 | 10,871,301 | 63,577,177 | |
Automation product and software [Member] | Services rendered over time [Member] | ||||
Revenue | 0 | 40,542,529 | 0 | |
Equipment and accessories [Member] | ||||
Revenue | 15,791,623 | 2,445,336 | 14,222,623 | 23,951,132 |
Cost of revenues and related tax | 11,264,971 | 7,683,662 | 15,039,628 | |
Gross profit | 4,526,652 | 6,538,961 | 8,911,504 | |
Depreciation and amortization | 851,612 | 683,522 | 1,018,012 | |
Total capital expenditures | 136,224 | 0 | 1,573,896 | |
Equipment and accessories [Member] | Goods transferred at a point in time [Member] | ||||
Revenue | 15,791,623 | 14,222,623 | 23,951,132 | |
Equipment and accessories [Member] | Services rendered over time [Member] | ||||
Revenue | 0 | 0 | 0 | |
Oilfield environmental protection [Member] | ||||
Revenue | 11,043,979 | 1,710,162 | 124,198 | 14,856,018 |
Cost of revenues and related tax | 8,045,567 | 212,679 | 8,123,180 | |
Gross profit | 2,998,412 | (88,481) | 6,732,838 | |
Depreciation and amortization | 2,000,952 | 827,422 | 27,239 | |
Total capital expenditures | 315,944 | 3,782,911 | 4,606,823 | |
Oilfield environmental protection [Member] | Goods transferred at a point in time [Member] | ||||
Revenue | 9,654,418 | 0 | 14,856,018 | |
Oilfield environmental protection [Member] | Services rendered over time [Member] | ||||
Revenue | 1,389,561 | 124,198 | 0 | |
Platform outsourcing services | ||||
Revenue | 2,567,807 | $ 397,625 | 0 | 0 |
Cost of revenues and related tax | 1,470,468 | 0 | 0 | |
Gross profit | 1,097,339 | 0 | 0 | |
Depreciation and amortization | 20,729 | 0 | 0 | |
Total capital expenditures | 43,487 | 0 | 0 | |
Platform outsourcing services | Goods transferred at a point in time [Member] | ||||
Revenue | 2,567,807 | 0 | 0 | |
Platform outsourcing services | Services rendered over time [Member] | ||||
Revenue | ¥ 0 | ¥ 0 | ¥ 0 |
SEGMENT REPORTING - Total asset
SEGMENT REPORTING - Total assets (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Assets [Abstract] | |||
Total Assets | ¥ 566,516,660 | $ 87,725,220 | ¥ 194,414,804 |
Automation product and software [Member] | |||
Assets [Abstract] | |||
Total Assets | 156,435,379 | 24,224,051 | 81,743,307 |
Equipment and accessories [Member] | |||
Assets [Abstract] | |||
Total Assets | 160,299,200 | 24,822,364 | 61,578,632 |
Oilfield environmental protection [Member] | |||
Assets [Abstract] | |||
Total Assets | 139,326,144 | 21,574,682 | 51,092,865 |
Platform outsourcing services | |||
Assets [Abstract] | |||
Total Assets | ¥ 110,455,937 | $ 17,104,123 | ¥ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Starry Blockchain Energy Pte. Ltd. - Subsequent event - CNY (¥) ¥ in Millions | Nov. 10, 2021 | Oct. 21, 2021 |
Subsequent Event [Line Items] | ||
Ownership interest (as a percent) | 10.00% | |
Investment made | ¥ 1 | |
Shares issued | 500,000 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Additional Information (Details) | Jun. 30, 2021 |
VIE | Maximum | |
Condensed financial information of the parent company | |
Percent of consolidated net assets | 25.00% |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company balance sheets (unaudited) (Details) | Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) |
Non-current assets | |||
Total Assets | ¥ 566,516,660 | $ 87,725,220 | ¥ 194,414,804 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Total Liabilities | 279,001,194 | 43,203,392 | 73,770,516 |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS' EQUITY | |||
Additional paid-in capital | 479,490,763 | 74,249,242 | 282,505,455 |
Accumulated deficit | (206,860,320) | (32,032,362) | (184,027,586) |
Accumulated other comprehensive income | 1,974,836 | 305,804 | 2,825,731 |
Total stockholders' equity | 295,095,034 | 45,695,526 | 110,029,762 |
Total Liabilities and Equity | 566,516,660 | 87,725,220 | 194,414,804 |
Class A ordinary shares | |||
STOCKHOLDERS' EQUITY | |||
Common stock value | 16,340,826 | 2,530,380 | 4,577,233 |
RECON TECHNOLOGY, LTD | |||
Non-current assets | |||
Investment in subsidiaries and VIEs | 295,095,034 | 45,695,526 | 110,029,762 |
Total Assets | 295,095,034 | 45,695,526 | 110,029,762 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS' EQUITY | |||
Additional paid-in capital | 479,490,763 | 74,249,242 | 282,505,455 |
Accumulated deficit | (202,711,391) | (31,389,900) | (179,878,657) |
Accumulated other comprehensive income | 1,974,836 | 305,804 | 2,825,731 |
Total stockholders' equity | 295,095,034 | 45,695,526 | 110,029,762 |
Total Liabilities and Equity | 295,095,034 | 45,695,526 | 110,029,762 |
RECON TECHNOLOGY, LTD | Class A ordinary shares | |||
STOCKHOLDERS' EQUITY | |||
Common stock value | ¥ 16,340,826 | $ 2,530,380 | ¥ 4,577,233 |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company balance sheets (unaudited) (Parenthetical) (Details) - $ / shares | Jun. 30, 2021 | Jun. 14, 2021 | Apr. 05, 2021 | Jun. 30, 2020 | Jun. 26, 2020 | May 21, 2020 | Dec. 26, 2019 |
Class A ordinary shares | |||||||
Parent company balance sheets | |||||||
Common shares, par value (in dollars per share) | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0925 | |
Common shares, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | ||||
Common shares, shares issued | 26,868,391 | 7,202,832 | |||||
Common shares, shares outstanding | 26,868,391 | 7,202,832 | 4,611,720 | ||||
Class A ordinary shares | RECON TECHNOLOGY, LTD | |||||||
Parent company balance sheets | |||||||
Common shares, par value (in dollars per share) | $ 0.0925 | $ 0.0925 | |||||
Common shares, shares authorized | 150,000,000 | 150,000,000 | |||||
Common shares, shares issued | 26,868,391 | 7,202,832 | |||||
Common shares, shares outstanding | 26,868,391 | 7,202,832 | |||||
Class B ordinary shares | |||||||
Parent company balance sheets | |||||||
Common shares, par value (in dollars per share) | $ 0.0925 | $ 0.0925 | $ 0.0925 | ||||
Common shares, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Common shares, shares issued | 0 | 0 | |||||
Common shares, shares outstanding | 0 | 0 | |||||
Class B ordinary shares | RECON TECHNOLOGY, LTD | |||||||
Parent company balance sheets | |||||||
Common shares, par value (in dollars per share) | $ 0.0925 | $ 0.0925 | |||||
Common shares, shares authorized | 20,000,000 | 20,000,000 | |||||
Common shares, shares issued | 0 | 0 | |||||
Common shares, shares outstanding | 0 | 0 |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company statements of operations and comprehensive loss (unaudited) (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Parent Company Statements Of Operations And Comprehensive Loss [Line Items] | ||||
NET LOSS | ¥ (25,866,828) | $ (4,005,484) | ¥ (20,122,604) | ¥ (25,782,406) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | (850,895) | (131,761) | (84,205) | 1,393,843 |
COMPREHENSIVE LOSS | (26,717,723) | (4,137,245) | (20,206,809) | (24,388,563) |
RECON TECHNOLOGY, LTD | ||||
Parent Company Statements Of Operations And Comprehensive Loss [Line Items] | ||||
EQUITY IN LOSS OF SUBSIDIARIES AND VIES | (22,832,734) | (3,535,654) | (19,246,701) | (25,355,905) |
NET LOSS | (22,832,734) | (3,535,654) | (19,246,701) | (25,355,905) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | (850,895) | (131,761) | (84,205) | 1,393,843 |
COMPREHENSIVE LOSS | ¥ (23,683,629) | $ (3,667,415) | ¥ (19,330,906) | ¥ (23,962,062) |
CONDENSED FINANCIAL INFORMATI_7
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company statements of cash flows (unaudited) (Details) | 12 Months Ended | |||
Jun. 30, 2021CNY (¥) | Jun. 30, 2021USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | |
Parent Company Statements Of Cash Flow [Line Items] | ||||
Net loss | ¥ (25,866,828) | $ (4,005,484) | ¥ (20,122,604) | ¥ (25,782,406) |
Adjustments to reconcile net cash flows from operating activities: | ||||
Net cash used in operating activities | (34,050,468) | (5,272,722) | (5,230,676) | (32,212,172) |
CHANGES IN CASH | 313,662,066 | 48,570,634 | 25,815,179 | (40,819,253) |
Cash at beginning of year | 30,336,504 | 4,697,614 | 4,521,325 | 45,340,578 |
Cash at end of year | 343,998,570 | 53,268,248 | 30,336,504 | 4,521,325 |
RECON TECHNOLOGY, LTD | ||||
Parent Company Statements Of Cash Flow [Line Items] | ||||
Net loss | (22,832,734) | (3,535,654) | (19,246,701) | (25,355,905) |
Adjustments to reconcile net cash flows from operating activities: | ||||
Equity in earnings of subsidiaries and VIEs | 22,832,734 | $ 3,535,654 | 19,246,701 | 25,355,905 |
Net cash used in operating activities | 0 | 0 | 0 | |
CHANGES IN CASH | 0 | 0 | 0 | |
Cash at beginning of year | 0 | 0 | 0 | |
Cash at end of year | ¥ 0 | ¥ 0 | ¥ 0 |