Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Sep. 23, 2014 | Dec. 31, 2013 |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'Recon Technology, Ltd | ' | ' |
Entity Central Index Key | '0001442620 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'RCON | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,726,711 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $10 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | All Other [Member] | All Other [Member] | All Other [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $2,939,723 | 18,094,586 | 12,350,392 | ' | ' | ' | ' | ' | ' |
Notes receivable | 0 | 0 | 2,578,855 | ' | ' | ' | ' | ' | ' |
Trade accounts receivable, net | ' | ' | ' | 7,075,926 | 43,553,737 | 38,648,780 | 1,215,119 | 7,479,298 | 18,744,364 |
Inventories, net | 2,329,185 | 14,336,602 | 13,271,070 | ' | ' | ' | ' | ' | ' |
Other receivables, net | ' | ' | ' | 2,971,966 | 18,293,043 | 19,131,503 | 229,795 | 1,414,433 | 742,528 |
Purchase advances, net | ' | ' | ' | 4,184,927 | 25,759,065 | 18,412,507 | 64,016 | 394,034 | 394,034 |
Tax recoverable | 0 | 0 | 575,650 | ' | ' | ' | ' | ' | ' |
Prepaid expenses | ' | ' | ' | 428,039 | 2,634,664 | 2,487,956 | 37,367 | 230,000 | 366,000 |
Deferred tax asset | 196,575 | 1,209,961 | 1,006,721 | ' | ' | ' | ' | ' | ' |
Total current assets | 21,672,638 | 133,399,423 | 128,710,360 | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 214,703 | 1,321,538 | 1,709,846 | ' | ' | ' | ' | ' | ' |
Long-term trade accounts receivable - related parties, net | ' | ' | ' | ' | ' | ' | 2,348,635 | 14,456,317 | 0 |
Long-term investment | 0 | 0 | 1,549,450 | ' | ' | ' | ' | ' | ' |
Long-term other receivable | 869,688 | 5,353,104 | 3,502,680 | ' | ' | ' | ' | ' | ' |
Total Assets | 25,105,664 | 154,530,382 | 135,472,336 | ' | ' | ' | ' | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term bank loans | 1,624,643 | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' |
Trade accounts payable | ' | ' | ' | 1,854,287 | 11,413,505 | 7,384,165 | 0 | 0 | 3,994,718 |
Other payables | ' | ' | ' | 286,762 | 1,765,079 | 1,964,691 | 537,111 | 3,306,024 | 4,239,675 |
Deferred revenue | 718,063 | 4,419,824 | 3,381,382 | ' | ' | ' | ' | ' | ' |
Advances from customers | 130,196 | 801,385 | 470,700 | ' | ' | ' | ' | ' | ' |
Accrued payroll and employees' welfare | 67,849 | 417,624 | 1,992,783 | ' | ' | ' | ' | ' | ' |
Accrued expenses | 32,989 | 203,051 | 488,730 | ' | ' | ' | ' | ' | ' |
Taxes payable | 1,233,079 | 7,589,846 | 6,754,428 | ' | ' | ' | ' | ' | ' |
Short-term borrowings | ' | ' | ' | 0 | 0 | 570,375 | 846,070 | 5,207,728 | 5,503,279 |
Deferred tax liability | 29,274 | 180,186 | 0 | ' | ' | ' | ' | ' | ' |
Warrants liability | 815,834 | 5,021,621 | 0 | ' | ' | ' | ' | ' | ' |
Total current liabilities | 8,176,157 | 50,325,873 | 46,744,926 | ' | ' | ' | ' | ' | ' |
Commitments and Contingency | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, ($ 0.0185 U.S. dollar par value, 25,000,000 shares authorized; 3,951,811 and 4,717,336 shares issued and outstanding as of June 30, 2013 and June 30, 2014, respectively) | 100,217 | 616,865 | 529,979 | ' | ' | ' | ' | ' | ' |
Additional paid-in capital | 13,494,453 | 83,061,058 | 69,516,447 | ' | ' | ' | ' | ' | ' |
Appropriated retained earnings | 674,053 | 4,148,929 | 3,023,231 | ' | ' | ' | ' | ' | ' |
Unappropriated retained earnings | 1,369,810 | 8,431,453 | 8,749,963 | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | -45,374 | -279,275 | -293,201 | ' | ' | ' | ' | ' | ' |
Total shareholders' equity | 15,593,159 | 95,979,030 | 81,526,419 | ' | ' | ' | ' | ' | ' |
Non-controlling interest | 1,336,348 | 8,225,479 | 7,200,991 | ' | ' | ' | ' | ' | ' |
Total equity | 16,929,507 | 104,204,509 | 88,727,410 | ' | ' | ' | ' | ' | ' |
Total Liabilities and Equity | $25,105,664 | 154,530,382 | 135,472,336 | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Common shares, par value (in dollars per share) | $0.02 | $0.02 |
Common shares, shares authorized | 25,000,000 | 25,000,000 |
Common shares, shares issued | 4,717,336 | 3,951,811 |
Common shares, shares outstanding | 4,717,336 | 3,951,811 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | Hardware And Software [Member] | Hardware And Software [Member] | Hardware And Software [Member] | Hardware And Software [Member] | Hardware And Software [Member] | Hardware And Software [Member] | Services [Member] | Services [Member] | Services [Member] | |
USD ($) | CNY | CNY | Related Party [Member] | Related Party [Member] | Related Party [Member] | USD ($) | CNY | CNY | ||||
USD ($) | CNY | CNY | ||||||||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $15,181,815 | 93,447,108 | 76,585,729 | $14,009,176 | 86,229,283 | 41,408,517 | $1,095,017 | 6,740,047 | 9,713,209 | $77,622 | 477,778 | 25,464,003 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cost of revenues | 9,915,234 | 61,030,247 | 51,531,759 | 9,314,672 | 57,333,670 | 26,617,786 | 588,035 | 3,619,470 | 6,346,850 | 12,527 | 77,107 | 18,567,123 |
Gross profit | 5,266,581 | 32,416,861 | 25,053,970 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling and distribution expenses | 859,979 | 5,293,343 | 6,126,095 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses | 2,631,750 | 16,198,947 | 10,978,942 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development expenses | 1,315,040 | 8,094,333 | 8,513,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses | 4,806,769 | 29,586,623 | 25,618,717 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from operations | 459,812 | 2,830,238 | -564,747 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income (expenses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidy income | 203,163 | 1,250,509 | 2,257,344 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | 62,416 | 384,182 | 570,442 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | -154,759 | -952,574 | -1,557,204 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from investment | -249,423 | -1,535,250 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of warrants liability | 9,853 | 60,647 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) from foreign currency exchange | -30,624 | -188,495 | 233,478 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other expense | 152,668 | 939,699 | -32,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonoperating Income (Expense) | -6,706 | -41,282 | 1,471,159 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income tax | 453,106 | 2,788,956 | 906,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for income tax | 156,150 | 961,136 | 286,871 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 296,956 | 1,827,820 | 619,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Net income attributable to non-controlling interest | 165,816 | 1,020,632 | 579,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income attributable to Recon Technology, Ltd | 131,140 | 807,188 | 39,698 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 296,956 | 1,827,820 | 619,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | 2,889 | 17,783 | -3,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income | 299,845 | 1,845,603 | 616,537 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Comprehensive income attributable to non-controlling interest | 166,105 | 1,022,410 | 579,543 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income attributable to Recon Technology, Ltd | $133,740 | 823,193 | 36,994 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per common share - basic | $0.03 | 0.19 | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings per common share - diluted | $0.03 | 0.18 | 0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted - average shares -basic (in shares) | 4,303,955 | 4,303,955 | 3,951,811 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted - average shares -diluted (in shares) | 4,368,162 | 4,368,162 | 3,951,811 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY | Total | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Shareholders' Equity [Member] | Noncontrolling Interest [Member] | |
USD ($) | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | ||
Balances at Jun. 30, 2012 | $14,010,628 | 86,238,217 | 529,979 | 67,643,791 | 2,378,961 | 9,354,535 | -290,496 | 79,616,770 | 6,621,447 | |
Balances (in shares) at Jun. 30, 2012 | ' | ' | 3,951,811 | ' | ' | ' | ' | ' | ' | |
Capital contribution in VIE | 3,249 | 20,000 | ' | 20,000 | ' | ' | ' | 20,000 | ' | |
Stock based payment | 300,990 | 1,852,656 | ' | 1,852,656 | ' | ' | ' | 1,852,656 | ' | |
Net income | 100,653 | 619,541 | ' | ' | ' | 39,698 | ' | 39,698 | 579,843 | |
Appropriation of statutory reserves | 0 | 0 | ' | ' | 644,270 | -644,270 | ' | 0 | ' | |
Foreign currency translation adjustment | -490 | -3,004 | ' | ' | ' | ' | -2,705 | -2,705 | -299 | |
Balances at Jun. 30, 2013 | 14,415,030 | 88,727,410 | 529,979 | 69,516,447 | 3,023,231 | 8,749,963 | -293,201 | 81,526,419 | 7,200,991 | |
Balances (in shares) at Jun. 30, 2013 | ' | ' | 3,951,811 | ' | ' | ' | ' | ' | ' | |
Stock based payment | 394,630 | 2,429,028 | ' | 2,429,028 | ' | ' | ' | 2,429,028 | ' | |
Net income | 296,956 | 1,827,820 | ' | ' | ' | 807,188 | ' | 807,188 | 1,020,632 | |
Appropriation of statutory reserves | 0 | 0 | ' | ' | 1,125,698 | -1,125,698 | ' | 0 | ' | |
Stock issuance | 1,151,482 | 7,087,605 | 61,937 | 7,025,668 | ' | ' | ' | 7,087,605 | ' | |
Stock issuance (in shares) | ' | ' | 546,500 | ' | ' | ' | ' | ' | ' | |
Restricted shares issued for services | 229,067 | 1,409,955 | 8,044 | 1,401,911 | ' | ' | ' | 1,409,955 | ' | |
Restricted shares issued for services (in shares) | ' | ' | 70,625 | ' | ' | ' | ' | ' | ' | |
Stock options exercised | 439,451 | 2,704,909 | 16,905 | 2,688,004 | ' | ' | ' | 2,704,909 | ' | |
Stock options exercised (in shares) | 148,400 | [1] | ' | 148,400 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | 2,892 | 17,782 | ' | ' | ' | ' | 13,926 | 13,926 | 3,856 | |
Balances at Jun. 30, 2014 | $16,929,507 | 104,204,509 | 616,865 | 83,061,058 | 4,148,929 | 8,431,453 | -279,275 | 95,979,030 | 8,225,479 | |
Balances (in shares) at Jun. 30, 2014 | ' | ' | 4,717,336 | ' | ' | ' | ' | ' | ' | |
[1] | On April 22, 2014, the Chief Executive Office and Chief Technology Officer of the Company exercised their stock options to purchased 52,000 shares of the Companybs common stock for RMB 948,559 ($153,920). The transaction was completed on May 13, 2014. On June 30, 2014, other employees exercised their stock options to purchased 96,400 shares of the Companybs common stock for RMB 1,756,349 ($285,344). |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | All Other [Member] | All Other [Member] | All Other [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $296,956 | 1,827,820 | 619,541 | ' | ' | ' | ' | ' | ' |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 96,771 | 595,647 | 618,552 | ' | ' | ' | ' | ' | ' |
Loss from disposal of equipment | 20,942 | 128,902 | 38,006 | ' | ' | ' | ' | ' | ' |
Provision/(recovery of) for doubtful accounts | 246,747 | 1,518,778 | -749,121 | ' | ' | ' | ' | ' | ' |
Share based compensation | 394,630 | 2,429,028 | 1,852,656 | ' | ' | ' | ' | ' | ' |
Loss from investment | 249,423 | 1,535,250 | 0 | ' | ' | ' | ' | ' | ' |
Deferred tax provision/(benefit) | -3,745 | -23,054 | 100,080 | ' | ' | ' | ' | ' | ' |
Change in fair value of warrants liability | -9,853 | -60,647 | 0 | ' | ' | ' | ' | ' | ' |
Restricked shares issued for services | 66,219 | 407,593 | 0 | ' | ' | ' | ' | ' | ' |
Changes in operating assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable | 418,972 | 2,578,855 | -2,578,855 | ' | ' | ' | ' | ' | ' |
Trade accounts receivable | ' | ' | ' | -859,636 | -5,291,233 | 25,107,519 | -620,500 | -3,819,299 | 672,175 |
Inventories | -173,111 | -1,065,532 | 11,010,230 | ' | ' | ' | ' | ' | ' |
Other receivable, net | ' | ' | ' | -159,395 | -981,099 | -4,263,858 | -109,161 | -671,905 | -724,799 |
Purchase advance, net | ' | ' | ' | -1,117,617 | -6,879,156 | -2,190,796 | 0 | 0 | 699,500 |
Tax recoverable | 93,523 | 575,650 | 2,215,072 | ' | ' | ' | ' | ' | ' |
Prepaid expense | ' | ' | ' | -23,835 | -146,708 | -1,952,620 | 22,095 | 136,000 | -366,000 |
Trade accounts payable | ' | ' | ' | 654,624 | 4,029,340 | -4,521,395 | -648,999 | -3,994,718 | -1,344,513 |
Other payables | ' | ' | ' | -32,430 | -199,612 | -377,135 | -151,685 | -933,651 | 3,140,416 |
Deferred income | 168,710 | 1,038,442 | 90,309 | ' | ' | ' | ' | ' | ' |
Advances from customers | 53,724 | 330,685 | -465,424 | ' | ' | ' | ' | ' | ' |
Accrued payroll and employees' welfare | -255,907 | -1,575,159 | 1,043,204 | ' | ' | ' | ' | ' | ' |
Accrued expenses | -46,413 | -285,679 | 12,314 | ' | ' | ' | ' | ' | ' |
Taxes payable | 135,726 | 835,418 | -2,927,192 | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | -1,293,225 | -7,960,044 | 24,757,866 | ' | ' | ' | ' | ' | ' |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of property and equipment | -77,651 | -477,957 | -753,583 | ' | ' | ' | ' | ' | ' |
Long-term investment | 0 | 0 | -1,549,450 | ' | ' | ' | ' | ' | ' |
Proceeds from disposal of equipment | 23,024 | 141,716 | 162,000 | ' | ' | ' | ' | ' | ' |
Net cash used in investing activities | -54,627 | -336,241 | -2,141,033 | ' | ' | ' | ' | ' | ' |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from short-term bank loans | 3,817,910 | 23,500,000 | 10,000,000 | ' | ' | ' | ' | ' | ' |
Repayments of short-term bank loans | -3,817,910 | -23,500,000 | -23,000,000 | ' | ' | ' | ' | ' | ' |
Proceeds from borrowings | ' | ' | ' | 0 | 0 | 579,073 | 813,577 | 5,007,728 | 1,962,450 |
Repayment of short-term borrowings | ' | ' | ' | -92,666 | -570,375 | -2,775,764 | -861,594 | -5,303,279 | -582,477 |
Proceeds from sale of common stock, net of issuance costs | 1,971,160 | 12,132,882 | 0 | ' | ' | ' | ' | ' | ' |
Proceeds from stock options exercised | 439,451 | 2,704,909 | 0 | ' | ' | ' | ' | ' | ' |
Capital contribution in VIE | 0 | 0 | 20,000 | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) financing activities | 2,269,928 | 13,971,865 | -13,796,718 | ' | ' | ' | ' | ' | ' |
Effect of exchange rate fluctuation on cash and cash equivalents | 11,150 | 68,614 | -3,006 | ' | ' | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | 933,226 | 5,744,194 | 8,817,109 | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents at beginning of year | 2,006,497 | 12,350,392 | 3,533,283 | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents at end of year | 2,939,723 | 18,094,586 | 12,350,392 | ' | ' | ' | ' | ' | ' |
Supplemental cash flow information | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest paid | 152,622 | 939,416 | 1,356,581 | ' | ' | ' | ' | ' | ' |
Income taxes paid | 114,534 | 704,982 | 832,028 | ' | ' | ' | ' | ' | ' |
Non-cash investing and financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issurance of common stock to prepay professional services | $165,142 | 1,002,721 | 0 | ' | ' | ' | ' | ' | ' |
ORGANIZATION_AND_NATURE_OF_OPE
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended | ||
Jun. 30, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||
NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS | |||
Organization – Recon Technology, Ltd (the “Company”) was incorporated under the laws of the Cayman Islands on August 21, 2007 by Mr. Yin Shenping, Mr. Chen Guangqiang and Mr. Li Hongqi (the “Founders”) as a company with limited liability. The Company provides oilfield specialized equipment, automation systems, tools, chemicals and field services to petroleum companies mainly in the People’s Republic of China (the “PRC”). Its wholly owned subsidiary, Recon Technology Co., Limited (“Recon-HK”) was incorporated on September 6, 2007 in Hong Kong. Other than the equity interest in Recon-HK, the Company does not own any assets or conduct any operations. On November 15, 2007, Recon-HK established a wholly owned subsidiary, Jining Recon Technology Ltd. (“Recon-JN”) under the laws of the PRC. Other than the equity interest in Recon-JN, Recon-HK does not own any assets or conduct any operations. On November 19, 2011, the Company established one wholly owned subsidiary, Recon Investment Ltd. (“Recon-IN”) under the laws of HK. Other than the equity interest in Recon-IN, The Company does not own any assets or conduct any operations. | |||
The Company conducts its business through the following PRC legal entities that are consolidated as variable interest entities (“VIEs”) and operate in the Chinese oilfield equipment & service industry: | |||
1 | Beijing BHD Petroleum Technology Co., Ltd. (“BHD”), and | ||
2 | Nanjing Recon Technology Co., Ltd. (“Nanjing Recon”). | ||
Chinese laws and regulations currently do not prohibit or restrict foreign ownership in petroleum businesses. However, Chinese laws and regulations do prevent direct foreign investment in certain industries. On January 1, 2008, to protect the Company’s shareholders from possible future foreign ownership restrictions, the Founders, who also held the controlling interest of BHD and Nanjing Recon, reorganized the corporate and shareholding structure of these entities by entering into certain exclusive agreements with Recon-JN, which entitles Recon-JN to receive a majority of the residual returns. On May 29, 2009 Recon-JN and BHD and Nanjing Recon entered into an operating agreement to provide full guarantee for the performance of such contracts, agreements or transactions entered into by BHD and Nanjing Recon. As a result of the new agreement, Recon-JN absorbs 100% of the expected losses and receives 90% of the expected gains of BHD and Nanjing Recon, which resulted in Recon-JN being the primary beneficiary of these Companies. | |||
Recon-JN also entered into Share Pledge Agreements with the Founders, who pledged all their equity interest in these entities to Recon-JN. The Share Pledge Agreements, which were entered into by each Founder, pledged each of the Founders’ equity interest in BHD and Nanjing Recon as a guarantee for the service payment under the Exclusive Technical consulting Services Agreement (the “Services Agreement”). | |||
The Service Agreement, entered into on January 1, 2008, between Recon-JN and BHD and Nanjing Recon, states that Recon-JN will provide technical consulting services to BHD and Nanjing Recon in exchange for 90% of their annual net profits as a service fee, which is to be paid quarterly. | |||
In addition, Recon-HK entered into Option Agreements to allow Recon-HK to acquire the Founders’ interest in these entities if or when permitted by the PRC laws. | |||
Based on these exclusive agreements, the Company consolidated BHD and Nanjing Recon as VIEs as required by Accounting Standards Codification (“ASC”) Topic 810, Consolidation because the Company was the primary beneficiary of the VIEs. Management makes ongoing reassessment of whether Recon-JN is the primary beneficiary of BHD and Nanjing Recon. | |||
On August 28, 2000, a Founder of the Company purchased a controlling interest in BHD which was organized under the laws of the PRC on June 29, 1999. Through December 15, 2010, the Founders held a 67.5% ownership interest in BHD. From December 16, 2010 to June 30, 2012, Messers. Yin Shenping and Chen Guangqiang held an 86.24% ownership interest of BHD. BHD is combined with the Company through the date of the exclusive agreements, and has been consolidated following January 1, 2008, the date of the agreements based on ASC Topic 810. The Company allocates profits and losses 90% and 100%, respectively, based upon the control agreements. Profits allocated to the minority interest are the remaining amount (10%). | |||
On July 4, 2003, Nanjing Recon was organized under the laws of the PRC. On August 27, 2007, the Founders of the Company purchased a majority ownership of Nanjing Recon from a related party who was a majority owner of Nanjing Recon. Through December 15, 2010, the Founders held 80% ownership interest in Nanjing Recon. From December 16, 2010 to June 30, 2012, Messers. Yin Shenping and Chen Guangqiang held 80% ownership interest of Nanjing Recon. Nanjing Recon is combined with the Company through the date of the exclusive agreements, and is consolidated following January 1, 2008, the date of the agreements based on ASC Topic 810. The Company allocates profits and losses 90% and 100%, respectively, based upon the control agreements. Profits allocated to the non-controlling interest are the remaining amount (10%). | |||
Nature of Operations – The Company engaged in (1) providing equipment, tools and other hardware related to oilfield production and management, including simple installations in connection with some projects; (2) service to improve production and efficiency of exploited oil wells, and (3) developing and selling its own specialized industrial automation control and information solutions. The products and services provided by the Company include: | |||
High-Efficiency Heating Furnaces - High-Efficiency Heating Furnaces are designed to remove the impurities and to prevent solidification blockage in transport pipes carrying crude petroleum. Crude petroleum contains certain impurities including water and natural gas, which must be removed before the petroleum can be sold. | |||
Multi-Purpose Fissure Shaper - Multipurpose fissure shapers improve the extractors’ ability to test for and extract petroleum which requires perforation into the earth before any petroleum extractor can test for the presence of oil. | |||
Horizontal Multistage Fracturing related Service - The Company mainly uses Baker Hughes FracPoint™ system and provides related service to oilfield companies. The Baker Hughes FracPoint™ system provided a completion method using packers to isolate sections of the wellbore (stages) and frac sleeves to direct the frac treatment to the desired stage. The use of this type of completion eliminated the need for cementing the liner, coiled tubing operations, and wireline operations, while significantly reducing overall pumping time. | |||
Supervisory Control and Data Acquisition System (“SCADA”) - SCADA is an industrial computerized process control system for monitoring, managing and controlling petroleum extraction. SCADA integrates underground and aboveground activities of the petroleum extraction industry. This system can help to manage the oil extraction process in real-time to reduce the costs associated with extraction. | |||
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Significant Accounting Policies [Text Block] | ' | |||
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES | ||||
Basis of presentation - The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and have been consistently applied. | ||||
Principles of Consolidation - The consolidated financial statements include the accounts of the Company, all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. | ||||
Variable Interest Entities - A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The Company performs ongoing assessments to determine whether an entity should be considered a VIE and whether an entity previously identified as a VIE continues to be a VIE and whether the Company continues to be the primary beneficiary. | ||||
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 - The Company’s functional currency is the Chinese Yuan (“RMB”) and the accompanying consolidated financial statements have been expressed in Chinese Yuan. The consolidated financial statements as of and for the year ended June 30, 2014 have been translated into United States dollars (“U.S. dollars”) solely for the convenience of the readers. The translation has been made at the rate of ¥6.1552 =S$1.00, the approximate exchange rate prevailing on June 30, 2014. These translated U.S. dollar amounts should not be construed as representing Chinese Yuan amounts or that the Chinese Yuan amounts have been or could be converted into U.S. dollars. | ||||
Estimates and assumptions - The preparation of the consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, allowance for doubtful accounts, deferred taxes, warrants liability, the useful lives of property and equipment and the fair value of share- based payments. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. | ||||
Fair Values of Financial Instruments - The US GAAP accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||
The three levels of inputs are defined as follows: | ||||
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||
Level 3 inputs to the valuation methodology are unobservable. | ||||
The carrying amounts reported in the consolidated balance sheets for trade accounts receivable, other receivables, purchase advances, trade accounts payable, accrued liabilities, advances from customers, short-term bank loan and short-term borrowings approximate fair value because of the immediate or short-term maturity of these financial instruments. Long-term borrowings approximate fair value because the interest rate charged approximates the market rate. Long-term other receivables approximate fair value because interest rate approximates the market rate. Long-term investment is measured at fair value on a non-recurring basis at June 30, 2014, since the Company recorded an impairment loss during 2014; the fair value was determined to be zero using Level 2 inputs. (See Note 8.) | ||||
The fair value of the warrants liability was determined using the Black-Scholes Model, as Level 2 inputs (See Note 13). | ||||
Cash and Cash Equivalents - Cash and cash equivalents are comprised of cash on hand, demand deposits and highly liquid short-term debt investments with stated original maturities of no more than three months. Since a majority of the bank accounts are located in the PRC, those bank balances are uninsured. | ||||
Trade Accounts and Other Receivables - Accounts receivable are carried at original invoiced amount less a provision for any potential uncollectible amounts. Accounts are considered past due when the related receivables are more than a year old. Provision is made against trade accounts and other receivables to the extent they are considered to be doubtful. Accounts are written off after extensive efforts at collection. Other receivables arise from transactions with non-trade customers. | ||||
Purchase Advances - Purchase advances are the amounts prepaid to suppliers for purchases of inventory and are recognized as inventory when the final amount is paid to the suppliers and the inventory is delivered. | ||||
Inventories - Inventories are stated at the lower of cost or market value, on a weighted average basis for BHD. Inventories are stated at the lower of cost or market value, on a first-in-first-out basis for Nanjing Recon and ENI. The methods of determining inventory costs are used consistently from year to year. Allowance for inventory obsolescence is provided when the market value of certain inventory items are lower than the cost. | ||||
Tax Recoverable – Tax recoverable represented amounts paid for value added tax (“VAT”) on purchases in the PRC amounting to ¥575,650 at June 30, 2013. The amount can be used to offset VAT payable on sales made by the Company. | ||||
Property and Equipment - Property and equipment are stated at cost. Depreciation on motor vehicles and office equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from two to ten years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the assets | ||||
Items | Useful life | |||
Motor vehicles | 5-10 years | |||
Office equipment | 2-5 years | |||
Leasehold improvement | 5 years | |||
Long-term investment – Long-term investment in equity over which the Company has the ability to exercise significant influence but not control, and that, in general, are 20-50 percent owned, are stated at cost plus equity in undistributed net income (loss) of the investee. These investments are evaluated for impairment, in which an impairment loss would be recorded whenever a decline in the value of an equity investment below its carrying amount is determined to be “other than temporary.” In judging “other than temporary,” the Company would consider the length of time and extent to which the fair value of the investment has been less than the carrying amount of the investment, the near-term and longer-term operating and financial prospects of the investee, and the Company’s longer-term intent of retaining the investment in the investee. | ||||
Long-Lived Assets - The Company applies the ASC Topic 360 “Property, plant and equipment.” ASC Topic 360 requires that long-lived assets, such as property and equipment be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined based on the estimated discounted future cash flows expected to be generated by the asset. There were no impairments at June 30, 2013 and June 30, 2014. | ||||
Revenue Recognition - The Company recognizes revenue when the following four criteria are met: (1) persuasive evidence of an arrangement, (2) delivery has occurred or services have been provided, (3) the sales price is fixed or determinable, and (4) collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customers and the customers have signed a completion and acceptance report, risk of loss has transferred to the customers, customers’ acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in customers’ acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. | ||||
Hardware: | ||||
Revenue from hardware sales is generally recognized when the product is shipped to the customer and when there are no unfulfilled company obligations that affect the customer’s final acceptance of the arrangement. | ||||
Software: | ||||
The Company sells self-developed software. For software sales, the Company recognizes revenues in accordance with ASC Topic 985 - 605 “Software Revenue Recognition”. Revenue from software is recognized according to project contracts. Contract costs are accumulated during the periods of installation and testing or commissioning. Usually this is short term. Revenue is not recognized until completion of the contracts and receipt of acceptance statements. | ||||
Service: | ||||
The Company provides services to improve software function and system operation on separated fixed-price contracts. Revenue is recognized on the completed contract method when acceptance is determined by a completion report signed by the customer. | ||||
Deferred revenue represents unearned amounts billed to customers related to sales contracts. | ||||
Subsidy Income - Grants are given by the government to support local software companies’ operation and research and development. Grants related to research and development projects are recognized as subsidy income in the unaudited condensed consolidated statements of operations when received. Grants in the form of value-added-tax refund for software products are recognized when received. | ||||
Share-Based Compensation - The Company accounts for share-based compensation in accordance with ASC Topic 718, Share-Based Payment. Under the fair value recognition provisions of this topic, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. The Company has elected to recognize compensation expenses using the Binomial Lattice valuation model estimated at the grant date based on the award’s fair value. | ||||
Income Taxes - Income taxes are provided based upon the liability method of accounting pursuant to ASC Topic 740, Accounting for Income Taxes. Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company has not been subject to any income taxes in the United States or the Cayman Islands. | ||||
Under ASC Topic 740, 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. Income tax returns for the year prior to 2010 are no longer subject to examination by tax authorities. | ||||
Earnings (loss) per Share (“EPS”) - Basic EPS is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding. Diluted EPS are computed by dividing net income (loss) by the weighted-average number of ordinary shares and dilutive potential ordinary share equivalents outstanding. | ||||
Potentially dilutive ordinary shares consist of ordinary shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using the treasury stock method). For the year ended June 30, 2014, there were 64,207 restricted shares included in the weighted average dilutive shares calculation. However, the effect from options and warrants would have been anti-dilutive due to the fact that the weighted average exercise price per share of options and warrants is higher than the weighted average market price per ordinary share during the years ended June 30, 2013 and 2014. | ||||
Reclassification – Certain accounts from prior period have been reclassified to confirm to the current period presentation. | ||||
Recently Issued Accounting Pronouncements - In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” (“ASU 2014-08”). Under ASU 2014-08, only disposals representing a strategic shift in operations that have a major effect on the Company’s operations and financial results should be presented as discontinued operations. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. However, ASU 2014-08 should not be applied to a component that is classified as held for sale before the effective date even if the component is disposed of after the effective date. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The effects of ASU 2014-08 will depend on any future disposals by the Company. | ||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). Previous revenue recognition guidance in U.S. GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principal, five steps are required to be applied. In addition, ASU 2014-09 expands and enhances disclosure requirements which require disclosing sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This includes both qualitative and quantitative information. The amendments in ASU 2014-09 are retrospectively effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. Management is evaluating the effect, if any, the Company’s financial positions and results of operations. | ||||
TRADE_ACCOUNTS_RECEIVABLE_NET
TRADE ACCOUNTS RECEIVABLE, NET | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Receivables [Abstract] | ' | ||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||
NOTE 3. TRADE ACCOUNTS RECEIVABLE, NET | |||||||||||
Accounts receivable consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Third Party | RMB | RMB | U.S. Dollars | ||||||||
Trade accounts receivable | ¥ | 42,993,298 | ¥ | 48,284,531 | $ | 7,844,510 | |||||
Allowance for doubtful accounts | -4,344,518 | -4,730,794 | -768,584 | ||||||||
Total - third- party, net | ¥ | 38,648,780 | ¥ | 43,553,737 | $ | 7,075,926 | |||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Related Party | RMB | RMB | U.S. Dollars | ||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | ¥ | 19,722,574 | ¥ | 5,441,498 | $ | 884,049 | |||||
Beijing Langchen Construction Company | - | 726,800 | 118,080 | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | - | 100,000 | 16,246 | ||||||||
Xiamen Hengda Hitek Computer Network Co. Ltd. | - | 1,211,000 | 196,744 | ||||||||
Allowance for doubtful accounts | -978,210 | - | - | ||||||||
Total - related-parties, net | ¥ | 18,744,364 | ¥ | 7,479,298 | $ | 1,215,119 | |||||
Related Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Non-current portion | RMB | RMB | U.S. Dollars | ||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | ¥ | - | ¥ | 16,062,574 | $ | 2,609,595 | |||||
Allowance for doubtful accounts | - | -1,606,257 | -260,960 | ||||||||
Total - related-parties, net | ¥ | - | ¥ | 14,456,317 | $ | 2,348,635 | |||||
One of the Founders, Mr. Yin Shen ping, was the legal representative of Beijing Yabei Nuoda Science and Technology Co. Ltd (“Yabei Nuoda”) before December 2013. The founder does not have any equity interest in this company currently. The receivable from Yabei Nuoda was generated primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed on August 27, 2014, the outstanding balance will be collected in four years with each installment of ¥4,015,644. | |||||||||||
OTHER_RECEIVABLES_NET
OTHER RECEIVABLES, NET | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Other Receivables [Abstract] | ' | ||||||||||
Other Receivables Disclosure [Text Block] | ' | ||||||||||
NOTE 4. OTHER RECEIVABLES, NET | |||||||||||
Other receivables consisted of the following: | |||||||||||
Third Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Current Portion | RMB | RMB | U.S. Dollars | ||||||||
Due from ENI (A) | ¥ | 6,799,669 | ¥ | 2,523,145 | $ | 409,921 | |||||
Loans to third parties (B) | 8,440,639 | 8,979,408 | 1,458,833 | ||||||||
Business advance to staff (C) | 2,977,176 | 6,371,923 | 1,035,210 | ||||||||
Deposits for projects | 185,669 | 495,961 | 80,576 | ||||||||
Others | 1,210,230 | 373,622 | 60,700 | ||||||||
Allowance for doubtful accounts | -481,880 | -451,016 | -73,274 | ||||||||
Total | ¥ | 19,131,503 | ¥ | 18,293,043 | $ | 2,971,966 | |||||
Third Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Non-Current Portion | RMB | RMB | U.S. Dollars | ||||||||
Due from ENI (A) | ¥ | 3,502,680 | ¥ | 5,353,104 | $ | 869,688 | |||||
Total | ¥ | 3,502,680 | ¥ | 5,353,104 | $ | 869,688 | |||||
(A) | After ENI ceased to be a VIE of the Company, ENI in January 2012 agreed to repay the loan on a payment schedule, with interest accrued during the period at an annual rate of 4%. In accordance with the payment schedule, the principal plus accrued interest is required to be repaid over approximately three years on a quarterly basis beginning March 2012. The first four payments are RMB 1.2 million each. In March, June, September and December of 2012, the Company received RMB 4.8 million. Starting March 2013, the installment for each quarter would be ¥1,777,653. The Company received the payments on time quarterly since March, 2013.The payments after one year are RMB5,353,104 ($ 869,688). | ||||||||||
(B) | Loans to third-parties are mainly used for short-term funding to support cooperative companies. These loans are due on demand bearing no interest. | ||||||||||
(C) | Business advance to staff represents advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. | ||||||||||
Other receivables - related parties represent loans to related parties for working capital advances to related entities. Such advances are due-on-demand and non-interest bearing. | |||||||||||
Below is a summary of other receivables - related parties which consisted of the following: | |||||||||||
Related Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Name of Related Party | RMB | RMB | U.S. Dollars | ||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | 500,000 | 500,000 | 81,232 | ||||||||
Beijing Langchen Construction Company | - | 913,780 | 148,457 | ||||||||
Other-travel advances | 242,528 | 653 | 106 | ||||||||
Total | ¥ | 742,528 | ¥ | 1,414,433 | $ | 229,795 | |||||
PURCHASE_ADVANCES
PURCHASE ADVANCES | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||||
Other Assets Disclosure [Text Block] | ' | ||||||||||
NOTE 5. PURCHASE ADVANCES | |||||||||||
The Company purchased products and services from a third-party and a related party during the normal course of business. Purchase advances consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Third Party | RMB | RMB | U.S. Dollars | ||||||||
Prepayment for inventory purchase | ¥ | 19,237,449 | ¥ | 27,119,326 | $ | 4,405,921 | |||||
Allowance for doubtful accounts | -824,942 | -1,360,261 | -220,994 | ||||||||
Total | ¥ | 18,412,507 | ¥ | 25,759,065 | $ | 4,184,927 | |||||
Below is a summary of purchase advances to related party. | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Related Party | RMB | RMB | U.S. Dollars | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | ¥ | 394,034 | ¥ | 394,034 | $ | 64,016 | |||||
Total | ¥ | 394,034 | ¥ | 394,034 | $ | 64,016 | |||||
One of the Founders of the Company and his family member collectively own 57% of Xiamen Huasheng Haitian Computer Network Co. Ltd. Current ending balance of the purchase advances to Xiamen Huasheng Hitek is expect to be settled within one year. | |||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||
Inventory Disclosure [Text Block] | ' | ||||||||||
NOTE 6. INVENTORIES | |||||||||||
Inventories consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Small component parts | ¥ | 45,314 | ¥ | 55,262 | $ | 8,978 | |||||
Raw materials | - | 272,416 | 44,258 | ||||||||
Work in process | 1,356,755 | 1,665,447 | 270,576 | ||||||||
Finished goods | 11,869,001 | 12,343,477 | 2,005,373 | ||||||||
Total inventories | ¥ | 13,271,070 | ¥ | 14,336,602 | $ | 2,329,185 | |||||
There was no inventory obsolescence reserve at June 30, 2013 and 2014. | |||||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||||
NOTE 7. PROPERTY AND EQUIPMENT, NET | |||||||||||
Property and equipment consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Motor vehicles | ¥ | 2,683,250 | ¥ | 2,314,296 | $ | 375,990 | |||||
Office equipment and fixtures | 593,654 | 709,165 | 115,215 | ||||||||
Total property and equipment | 3,276,904 | 3,023,461 | 491,205 | ||||||||
Less: Accumulated depreciation | -1,567,058 | -1,701,923 | -276,502 | ||||||||
Property and equipment, net | ¥ | 1,709,846 | ¥ | 1,321,538 | $ | 214,703 | |||||
Depreciation expense was ¥618,552 and ¥595,647 ($96,771) for the years ended June 30, 2013 and 2014, respectively. | |||||||||||
LONGTERM_INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Jun. 30, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' |
NOTE 8. Long-term investment | |
On June 28, 2013, the Company purchased 2,800,000 restricted shares of Avalon Oil and Gas, Inc. ("Avalon") for $0.089 per share, or approximately ¥1.5 million ($250,000). Since the restriction for the shares is for two years, the Company was able to acquire the shares at 50% of the market value. The investment was accounted for using the equity method and no gain or loss from equity investment was recorded for the year ended June 30, 2013 due to immateriality. As of June 30, 2013 and 2014, Recon owned 32.22% and 24.02% of Avalon’s outstanding shares, respectively. Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under the ticker symbol AOGN. Avalon is building a portfolio of oil and gas producing properties to generate asset growth. However, based on the available information and discussion with the management team of Avalon, we believe Avalon’s operating loss would not be recovered in the foreseeable future, therefore, the Company believes the investment is impaired and recorded an investment loss of ¥1,535,250 ( $250,000) for the year ended June 30, 2014. | |
OTHER_PAYABLES
OTHER PAYABLES | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||||
Other Liabilities Disclosure [Text Block] | ' | ||||||||||
NOTE 9. OTHER PAYABLES | |||||||||||
Other payables consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Third Party | RMB | RMB | U.S. Dollars | ||||||||
Consulting services | ¥ | 1,199,716 | ¥ | 777,863 | $ | 126,375 | |||||
Due to ENI (A) | 148,000 | - | - | ||||||||
Distributors and employees | 580,648 | 973,707 | 158,193 | ||||||||
Others | 36,327 | 13,509 | 2,194 | ||||||||
Total | ¥ | 1,964,691 | ¥ | 1,765,079 | $ | 286,762 | |||||
(A) | A former VIE of the Company, which ceased to be a VIE on December 16, 2010. | ||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Related Party | RMB | RMB | U.S. Dollars | ||||||||
Due to related parties (1) | ¥ | 2,860,824 | ¥ | 2,560,648 | $ | 416,015 | |||||
Expenses paid by the major shareholders | 467,499 | 439,071 | 71,333 | ||||||||
Due to family member of an owner of Recon | 716,000 | 50,000 | 8,123 | ||||||||
Due to management staff on behalf of Recon | 195,352 | 256,305 | 41,640 | ||||||||
Total | ¥ | 4,239,675 | ¥ | 3,306,024 | $ | 537,111 | |||||
-1 | Primarily includes an advance from Yabei Nuoda for RMB 61,301 and an advance from Xiamen Hengda Haitek for RMB 2,499,347 to supplement the Company’s working capital. The advance is payable on demand and non-interest bearing. | ||||||||||
TAXES_PAYABLE
TAXES PAYABLE | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Taxes Payable [Abstract] | ' | ||||||||||
Taxes Payable Disclosure [Text Block] | ' | ||||||||||
NOTE 10. TAXES PAYABLE | |||||||||||
Taxes payable consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
VAT payable | ¥ | 2,802,890 | ¥ | 3,412,759 | $ | 554,451 | |||||
Business tax payable | 75,865 | - | - | ||||||||
Enterprise income tax payable | 3,850,288 | 4,134,210 | 671,661 | ||||||||
Other taxes payable | 25,385 | 42,877 | 6,967 | ||||||||
Total taxes payable | ¥ | 6,754,428 | ¥ | 7,589,846 | $ | 1,233,079 | |||||
SHORTTERM_BANK_LOAN
SHORT-TERM BANK LOAN | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Short Term Bank Loan [Text Block] | ' | ||||||||||
NOTE 11. SHORT-TERM BANK LOAN | |||||||||||
Short-term bank loans consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Communication Bank, 6.6% annual interest, due on October 25, 2013 | ¥ | 3,090,000 | ¥ | - | ¥ | - | |||||
Communication Bank, 6.6% annual interest, due on November 15, 2013 | 1,910,000 | - | - | ||||||||
Beijing Bank,5.75% annual interest, matured and paid off by February 25, 2014 | ¥ | 1,200,000 | ¥ | - | $ | - | |||||
Beijing Bank, 5.75 % annual interest, matured and paid off by February 27, 2014 | 600,000 | - | - | ||||||||
Beijing Bank, 5.75 % annual interest, paid off on April 9, 2014 | 1,200,000 | - | - | ||||||||
Beijing Bank, 5.75 % annual interest, paid off on April 16, 2014 | 900,000 | - | - | ||||||||
Beijing Bank,5.75 % annual interest, matured and paid off by March 11, 2014 | 1,100,000 | - | - | ||||||||
Industrial and commercial bank, floating interest rate at 5.6%, due on December 24, 2014 | - | 2,000,000 | 324,929 | ||||||||
Industrial and commercial bank, floating interest rate at 6.0%, due on June 24, 2015 | - | 8,000,000 | 1,299,714 | ||||||||
Total short-term bank loans | ¥ | 10,000,000 | ¥ | 10,000,000 | $ | 1,624,643 | |||||
Interest expense for the short-term bank loan was ¥1,243,914 and ¥624,096 ($101,393) for the years ended June 30, 2013 and 2014. | |||||||||||
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Short-term Debt [Text Block] | ' | ||||||||||
NOTE 12. SHORT-TERM BORROWINGS | |||||||||||
Short-term borrowings are generally extended upon maturity and consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Short-term borrowings due to non-related parties: | RMB | RMB | U.S. Dollars | ||||||||
Short-term borrowing, 6% annual interest, matured and paid off by November 9, 2013 | ¥ | 70,375 | ¥ | - | $ | - | |||||
Short-term borrowings with no interest, beginning April 22, 2013, paid off on January 31, 2014 | 500,000 | - | - | ||||||||
Total short-term borrowings due to non-related parties | ¥ | 570,375 | ¥ | - | $ | - | |||||
Interest expense for short-term borrowings due to non-related parties was ¥47,360 and ¥1,525 ($248) for the year ended June 30, 2013 and 2014, respectively. | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Short-term borrowings due to related parties: | RMB | RMB | U.S. Dollars | ||||||||
Due-on-demand borrowings from Founders, no interest | ¥ | 6,377 | ¥ | - | $ | - | |||||
Short-term borrowing from a Founder's family member, 6% annual interest, matured and paid off by December 21, 2013 | 3,653,906 | - | - | ||||||||
Short-term borrowing from a Founder, 6.6% annual interest, due on November 25, 2014. | 5,007,728 | 813,577 | |||||||||
Short-term borrowing from a Founder's family member, 6% annual interest, matured and paid off by November 29, 2013 | 1,610,000 | - | - | ||||||||
Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co. Ltd., no interest, due on November 14, 2014 | 200,000 | 200,000 | 32,493 | ||||||||
Short-term borrowings from management, 6% annual interest, matured and paid off by December 7, 2013 | 32,996 | - | - | ||||||||
Total short-term borrowings due to related parties | ¥ | 5,503,279 | ¥ | 5,207,728 | $ | 846,070 | |||||
Interest expense for short-term borrowings due to related parties was ¥217,884 and ¥326,953 ($53,118) for the years ended June 30, 2013 and 2014, respectively. | |||||||||||
WARRANTS_LIABILITY
WARRANTS LIABILITY | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||
Note 13 –WARRANTS LIABILITY | |||||||||||||||||
In connection with the stock offering in November 2013, the Company issued warrants to certain institutional investors and placement agent to purchase 218,600 ordinary shares (see details in Note 14). | |||||||||||||||||
According to ASC 815-40, if the strike price of the warrants is denominated in a currency other than the Company’s functional currency, the warrants are not considered indexed to the entity’s own stock. The Company’s functional currency is RMB and the strike price of the warrants is denominated in USD, as a result, the warrants are classified as liabilities with all future changes in the fair value of these warrants recognized in earnings until such time as the warrants are exercised or expired. | |||||||||||||||||
These common stock purchase warrants do not trade in an active securities market, and as such, their fair value is estimated by using the Cox-Ross-Rubinstein (CRR) Binomial Model using the following assumptions: | |||||||||||||||||
June 30, | November 29, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Annual dividend yield | - | - | |||||||||||||||
Exercised price | 5.38 | 5.38 | |||||||||||||||
Underlying price at grant date | 3.86 | 3.86 | |||||||||||||||
Expected life (years) | 2.42 | 3 | |||||||||||||||
Risk-free interest rate | 0.88 | % | 0.56 | % | |||||||||||||
Expected volatility | 220 | % | 272 | % | |||||||||||||
Expected volatility is based on the historical volatility of the Company’s common stock. The Company has no reason to believe future volatility over the expected remaining life of these warrants is likely to differ materially from historical volatility. The expected life is based on the remaining term of the warrants. The risk-free interest rate is based on U.S. Treasury securities according to the remaining term of the warrants. The expected dividend yield was based on the Company’s current and expected dividend policy. | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy the warrants liability that was accounted at fair value on a recurring basis. | |||||||||||||||||
Fair Value Measurement at | Carrying Value at | Carrying Value at | |||||||||||||||
June 30, 2014 | June 30, 2014 | June 30, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | RMB | USD | |||||||||||||
Warrants liability | ¥ | - | ¥ | 5,021,621 | ¥ | - | ¥ | 5,021,621 | $ | 815,834 | |||||||
The following is a reconciliation of the beginning and ending balance of the warrants liability measured at fair value on a recurring basis for the year ended June 30, 2014: | |||||||||||||||||
Change of warrants liability | |||||||||||||||||
RMB | USD | ||||||||||||||||
Beginning balance – July 1 2012 and June 30, 2013 | - | - | |||||||||||||||
Initial measurement of warrants liability on November 29, 2013 | ¥ | 5,082,268 | $ | 825,687 | |||||||||||||
Change of warrant liability from November 29, 2013 to June 30, 2014 | -60,647 | -9,853 | |||||||||||||||
Ending balance - June 30, 2014 | ¥ | 5,021,621 | $ | 815,834 | |||||||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 14. SHAREHOLDERS’ EQUITY | |
Registered direct offering – On November 25, 2013, the Company entered into a securities purchase agreement (“Purchase Agreement”) with certain institutional investors for the sale of 546,500 ordinary shares in a registered direct offering at the price of $4.81 per ordinary share (amended to $4.30 per ordinary share on November 29, 2013). The net cash proceeds received from the stock offering, after deducting underwriter commission and other associated fees, were ¥12,132,882 (approximately $2.0 million). In addition, warrants to purchase 163,950 ordinary shares in the aggregate were issued to the investors. The warrants are exercisable immediately at an exercise price of $6.01 per ordinary share (amended to $5.38 per ordinary share on November 29, 2013) and expire three years from the date of issuance. The Company also issued warrants to purchase 54,650 ordinary shares to the placement agent (“Placement Agent Warrant”). The Placement Agent Warrants are on substantially the same terms as the warrants issued pursuant to the Purchase Agreement, except that these warrants are not exercisable for a period of six months and will expire three years from the initial issuance date. | |
In addition to the above warrants issued to the placement agent, the Company granted 170,000 shares of warrants on connection with its IPO offering, and none of these warrants was exercised during the years ended June 30, 2013 and 2014. | |
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, 2013 and 2014, the balance of total statutory reserves was ¥3,023,231 and ¥4,148,929 ($674,053), respectively. | |
On April 1, 2014, shareholders of BHD and a representative of Recon-JN approved the resolution to increase the registered capital of BHD from RMB 12 million to RMB 15 million. BHD has provided the documents to the registration authority for approval. The increase in the registered capital will be paid for by Mr. Chen Guangqiang, CTO of the Company, and the funds should be in place no later than December 31, 2014. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
NOTE 15. STOCK-BASED COMPENSATION | |||||||||||||
Stock-Based Awards Plan | |||||||||||||
2009 Options Plan - The Company granted options to purchase 293,000 ordinary shares under the Stock Incentive 2009 Plan to its employees and non-employee directors on July 29, 2009. The options have an excise price of $6.00, equal to the IPO price of the Company’s ordinary shares, and will vest over a period of five years, with 20% vesting on each anniversary to the grant date. The options expire ten years after the date of grant, on July 29, 2019. The fair value was estimated on July 29, 2009 using the Binomial Lattice valuation model, with the following weighted-average assumptions: | |||||||||||||
Stock price at grant date | $6.00 | ||||||||||||
Exercise price (per share) | $6.00 | ||||||||||||
Risk free rate of interest*** | 4.61% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Life of option (years)** | 10 | ||||||||||||
Volatility* | 78% | ||||||||||||
Forfeiture rate**** | 0% | ||||||||||||
* Volatility is projected using the performance of PHLX Oil Service Sector index. | |||||||||||||
** The life of options represents the period the option is expected to be outstanding. | |||||||||||||
*** The risk-free interest rate is based on the Chinese international bond denominated in U.S. dollar, with a maturity that approximates the life of the option. | |||||||||||||
**** Forfeiture rate is the estimated percentage of options forfeited by employees by leaving or being terminated before vesting. | |||||||||||||
The Company recognizes compensation cost for awards with graded vesting on a straight-line basis over the requisite service period for the entire award. The grant date fair value of the options was ¥30.17 ($4.42) per share. | |||||||||||||
2012 Options Plan – The Company granted options to purchase 415,000 ordinary shares to its employees and non-employee director on March 26, 2012. The options have an excise price of $2.96, which was equal to the share price of the Company’s ordinary shares at March 26, 2012, and will vest over a period of five years, with 20% vesting each anniversary of the grant date. The options will expire ten years after the date of grant, on March 26, 2022. | |||||||||||||
The Company recognizes compensation cost for awards with graded vesting on a straight-line basis over the requisite service period for the entire award. The grant date fair value of the options was ¥10.06 ($1.49) per share. | |||||||||||||
The following is a summary of the stock options activity: | |||||||||||||
Stock Options | Shares | Weighted Average Exercise Price Per Share | |||||||||||
Outstanding as of July 1, 2012 and June 30, 2013 | 608,000 | $3.93 | |||||||||||
Granted | - | - | |||||||||||
Forfeited | -44,000 | -2.96 | |||||||||||
Exercised (1) | -148,400 | -2.96 | |||||||||||
Outstanding as of June 30, 2014 | 415,600 | $4.37 | |||||||||||
-1 | On April 22, 2014, the Chief Executive Office and Chief Technology Officer of the Company exercised their stock options to purchased 52,000 shares of the Company’s common stock for RMB 948,559 ($153,920). The transaction was completed on May 13, 2014. On June 30, 2014, other employees exercised their stock options to purchased 96,400 shares of the Company’s common stock for RMB 1,756,349 ($285,344). | ||||||||||||
The following is a summary of the status of options outstanding and exercisable at June 30, 2014: | |||||||||||||
Outstanding Options | Exercisable Options | ||||||||||||
Average Exercise Price | Number | Average Remaining Contractual life | Average Exercise Price | Number | Average Remaining Contractual life | ||||||||
(Years) | (Years) | ||||||||||||
$6.00 | 193,000 | 5.08 | $6.00 | 154,400 | 5.08 | ||||||||
$2.96 | 222,600 | 7.74 | - | - | - | ||||||||
For the year ended June 30, 2014, the Company has granted restricted shares of common stock to senior management and consultants as follows: | |||||||||||||
On September 30 2013, the Company granted 30,000 restricted shares to a consulting firm for consulting services. The total value amounted to ¥407,972 ($66,420), based on the stock closing price of $2.21 at September 30, 2013. | |||||||||||||
On May 7, 2014, the Company granted 40,625 restricted shares to a consulting firm for consulting services. The total value amounted to ¥1,002,362 ($162,906), based on the stock closing price of $4.01 at May 7, 2014. | |||||||||||||
On December 13, 2013, the Company granted 95,181 restricted shares to Mr. Yin Shenping and 135,181 restricted shares to Mr. Chen Guangqiang at an aggregate value of ¥4,207,496 ($688,782), based on the stock closing price of $2.99 at December 13, 2013. These restricted shares will vest over three years with one third of the shares vesting every year from the grant date. Share-based compensation expense recorded for restricted shares granted to the Company’s officers were ¥771,549 ($125,639) for the year ended June 30, 2014. Total unrecognized share-based compensation expense for these shares as of June 30, 2014 was approximately ¥3.5 million ($0.6 million), which are expected to be recognized over a weighted average period of approximately 2.46 years. | |||||||||||||
The Share-based compensation expense recorded for stock options granted were ¥1,852,656 and ¥1,657,479 ($269,904) for the years ended June 30, 2013 and 2014, respectively. The total unrecognized share-based compensation expense for stock options as of June 30, 2014 was approximately ¥2.3 million ($0.4 million), which is expected to be recognized over a weighted average period of approximately 2.64 years. | |||||||||||||
Following is a summary of the restricted stock grants: | |||||||||||||
Restricted stock grants | Shares | ||||||||||||
Nonvested as of June 30, 2013 | - | ||||||||||||
Granted | 300,987 | ||||||||||||
Forfeited | - | ||||||||||||
Vested | -70,625 | ||||||||||||
Nonvested as of June 30, 2014 | 230,362 | ||||||||||||
INCOME_TAX
INCOME TAX | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
NOTE 16. 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%. | |||||||||||
The Company reapplied for high-technology enterprise approval and has passed all relevant reviews. Thus, for the calendar years 2013 and 2014, Nanjing Recon is subject to an income tax rate of 15%. | |||||||||||
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 an income tax rate of 15% through November 2015. | |||||||||||
Deferred tax asset is comprised of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Allowance for doubtful receivables | ¥ | 1,006,721 | ¥ | 1,209,961 | $ | 196,575 | |||||
Total deferred income tax assets | ¥ | 1,006,721 | ¥ | 1,209,961 | $ | 196,575 | |||||
Deferred tax liability is comprised of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Temporary difference - accounts payable | ¥ | - | ¥ | 180,186 | $ | 29,274 | |||||
Total deferred income tax liability | ¥ | - | ¥ | 180,186 | $ | 29,274 | |||||
Following is a reconciliation of income tax at the effective rate to income tax at the calculated statutory rates: | |||||||||||
For the year ended | For the year ended | For the year ended | |||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Income tax calculated at statutory rates | ¥ | 1,685,433 | ¥ | 3,073,289 | $ | 499,300 | |||||
Nondeductible expenses (non-taxable income) | -187,280 | 115,054 | 18,691 | ||||||||
Benefit of favorable rate for high-technology companies | -116,334 | -1,229,316 | -199,720 | ||||||||
Benefit of revenue exempted from enterprise income tax | -1,207,316 | -794,651 | -129,102 | ||||||||
Deferred income taxes provision | 12,288 | - | - | ||||||||
Deferred income tax (benefit) | 100,080 | -203,240 | -33,019 | ||||||||
Provision for income tax | ¥ | 286,871 | ¥ | 961,136 | $ | 156,150 | |||||
The Company’s tax provision is comprised of the following: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Current income tax provision | ¥ | 186,791 | ¥ | 1,164,376 | $ | 189,169 | |||||
Deferred income taxes provision (benefit) | 100,080 | -203,240 | -33,019 | ||||||||
Provision for income tax | ¥ | 286,871 | ¥ | 961,136 | $ | 156,150 | |||||
NONCONTROLLING_INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Noncontrolling Interest [Abstract] | ' | |||||||||||||
Noncontrolling Interest Disclosure [Text Block] | ' | |||||||||||||
NOTE 17. NON-CONTROLLING INTEREST | ||||||||||||||
Non-controlling interest consisted of the following: | ||||||||||||||
As of June 30, 2013 | ||||||||||||||
Nanjing | ||||||||||||||
BHD | Recon | Total | Total | |||||||||||
RMB | RMB | RMB | U.S. Dollars | |||||||||||
Paid-in capital | ¥ | 1,651,000 | ¥ | 200,000 | ¥ | 1,851,000 | $ | 299,118 | ||||||
Unappropriated retained earnings | 2,717,231 | 2,665,337 | 5,382,568 | 869,812 | ||||||||||
Accumulated other comprehensive loss | -18,793 | -13,784 | -32,577 | -5,265 | ||||||||||
Total non-controlling interest | ¥ | 4,349,438 | ¥ | 2,851,553 | ¥ | 7,200,991 | $ | 1,163,665 | ||||||
As of June 30, 2014 | ||||||||||||||
Nanjing | ||||||||||||||
BHD | Recon | Total | Total | |||||||||||
RMB | RMB | RMB | U.S. Dollars | |||||||||||
Paid-in capital | ¥ | 1,651,000 | ¥ | 200,000 | ¥ | 1,851,000 | $ | 300,721 | ||||||
Unappropriated retained earnings | 3,152,687 | 3,250,513 | 6,403,200 | 1,040,291 | ||||||||||
Accumulated other comprehensive loss | -16,863 | -11,853 | -28,721 | -4,664 | ||||||||||
Total non-controlling interest | ¥ | 4,786,824 | ¥ | 3,438,660 | ¥ | 8,225,479 | $ | 1,336,348 | ||||||
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
NOTE 18. CONCENTRATIONS | |
For the year ended June 30, 2013, the two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical Corporation Limited (“SINOPEC”), represented approximately 27.88%, and 45.99%. For the year ended June 30, 2014, the three largest customers, China National Petroleum Corporation (“CNPC”), China Petroleum & Chemical Corporation Limited (“SINOPEC”), and Wuhan Xin Tian Network System Integration Co., Ltd., represented approximately 42.79%,19.63%, and 13.36% of the Company’s revenue. | |
For the year ended June 30, 2013, one supplier, Hebei Huanghua Xiangtong Technical Co. Ltd, accounted for 21.17% of the company’s total purchases. For the year ended June 30, 2014, two major suppliers accounted for 32.46% of the company’s total purchases. | |
COMMITMENTS_AND_CONTINGENCY
COMMITMENTS AND CONTINGENCY | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies Disclosure [Text Block] | ' | |||||||
NOTE 19. COMMITMENTS AND CONTINGENCY | ||||||||
(a) | Office Leases | |||||||
The Company leases three offices in Beijing (two for BHD; one for Recon-JN) and one office in Nanjing for Nanjing Recon. Future payments under such leases are as follows as of June 30, 2014: | ||||||||
Twelve months ended June 30, | ||||||||
Office lease payment | ||||||||
RMB | U.S. Dollars | |||||||
2015 | ¥ | 980,000 | $ | 159,215 | ||||
2016 | 180,000 | 29,244 | ||||||
Total | ¥ | 1,160,000 | $ | 188,459 | ||||
(b) 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, 2014, the Company estimated its severance payments of approximately ¥1.3 million ($0.2 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. | ||||||||
RELATED_PARTY_TRANSACTIONS_AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||
NOTE 20. RELATED PARTY TRANSACTIONS AND BALANCES | |||||||||||
Sales to related parties – sales to related parties consisted of the following: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | ¥ | 8,815,773 | ¥ | 4,680,389 | $ | 760,396 | |||||
Beijing Langchen Construction Company | - | 640,000 | 103,977 | ||||||||
Xiamen Hengda Haitian computer network Inc | 897,436 | 1,334,188 | 216,758 | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | - | 85,470 | 13,886 | ||||||||
Revenues from related parties | ¥ | 9,713,209 | ¥ | 6,740,047 | $ | 1,095,017 | |||||
Purchases from related parties – purchases from related parties consisted of the following: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Huanghua Xiang Tong Manufacture | ¥ | 9,247,580 | ¥ | - | $ | - | |||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | - | - | - | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | 512,393 | - | - | ||||||||
Nanjing Youkong Information Technology Co., Ltd | - | - | - | ||||||||
Purchase from related parties | ¥ | 9,759,973 | ¥ | - | $ | - | |||||
Leases from related parties - The Company has various agreements for the lease of office space owned by the Founders and their family members. The terms of the agreement state that the Company will continue to lease the property at a monthly rent of ¥95,000 with annual rental expense at approximately ¥1.1 million ($0.2 million). The two-year lease agreements between Nanjing Recon and Mr. Yin and his family member started from July 10, 2014, the one-year lease agreements between BHD and Mr. Chen Guangqiang and his family member started from January 1, 2014 and the annual lease between the Company and Mr. Chen Guangqiang’s family member started from July 1, 2013. | |||||||||||
Short-term borrowings from related parties - The Company borrowed ¥5,503,279 and ¥5,207,728 ($846,070) from the Founders, their family members and senior officers as of June 30, 2013 and 2014, respectively. For the specific terms and interest rates of the borrowings, see Note 12. | |||||||||||
Trade accounts payable to related parties - The Company owed ¥3,994,718 and ¥0 to one related party as of June 30, 2013 and June 30, 2014. | |||||||||||
Prepaid expenses - related parties - The Company paid ¥366,000 and ¥230,000 ($37,367) in advance for rental to Mr. Chen and his family member as of June 30, 2013 and June 30, 2014. | |||||||||||
Expenses paid by the owner on behalf of Recon - One owner of Nanjing Recon, Mr. Yin and the major owner of BHD, Mr. Chen paid certain operating expense for the Company. As of June 30, 2013 and June 30, 2014, ¥467,499 and ¥284,370($46,200) was due to them, respectively. | |||||||||||
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||
Disclosure Of Variable Interest Entities [Text Block] | ' | ||||||||||
NOTE 21. Variable Interest Entities | |||||||||||
Summary information regarding consolidated VIEs is as follows: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | ¥ | 10,341,778 | ¥ | 14,021,653 | $ | 2,278,017 | |||||
Trade accounts receivable, net | 57,393,144 | 51,033,035 | 8,291,044 | ||||||||
Notes receivable | 2,578,855 | - | - | ||||||||
Purchase advances | 17,862,507 | 24,600,379 | 3,996,682 | ||||||||
Other assets | 29,974,454 | 34,097,774 | 5,539,670 | ||||||||
Total current assets | ¥ | 118,150,738 | ¥ | 123,752,841 | $ | 20,105,413 | |||||
Non-current assets | 1,705,940 | 15,758,115 | 2,560,130 | ||||||||
Total Assets | ¥ | 119,856,678 | ¥ | 139,510,956 | $ | 22,665,543 | |||||
LIABILITIES | |||||||||||
Trade accounts payable | ¥ | 11,378,883 | ¥ | 11,413,505 | $ | 1,854,287 | |||||
Taxes payable | 6,754,428 | 7,589,846 | 1,233,079 | ||||||||
Other liabilities | 24,770,161 | 21,878,699 | 3,554,507 | ||||||||
Total current liabilities | 42,903,472 | 40,882,050 | 6,641,873 | ||||||||
Total Liabilities | ¥ | 42,903,472 | ¥ | 40,882,050 | $ | 6,641,873 | |||||
The financial performance of VIEs reported in the consolidated statement of operations and comprehensive income for the year ended June 30, 2014 includes revenues of ¥93,447,108 ($15,181,815), operating expenses of ¥21,211,185 ($3,446,059), other income of ¥1,087,482 ($176,677) and net profit of ¥11,332,021 ($1,841,048). | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Earnings Per Share, Basic [Abstract] | ' | ||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||
NOTE 22. EARNINGS PER SHARE | |||||||||||
The computation of basic and diluted earnings per common share is as follows: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
BASIC | |||||||||||
Weighted average number of common shares outstanding used in computing basic earnings per share | 3,951,811 | 4,303,955 | 4,303,955 | ||||||||
Net income | ¥ | 39,698 | ¥ | 807,188 | $ | 131,140 | |||||
Earnings per share | ¥ | 0.01 | ¥ | 0.19 | $ | 0.03 | |||||
DILUTED | |||||||||||
Weighted average number of common shares outstanding used in computing basic earnings per share | 3,951,811 | 4,303,955 | 4,303,955 | ||||||||
Add: Assumed exercise of stock options, stock awards and warrants | - | 64,207 | 64,207 | ||||||||
Weighted average number of common shares outstanding | 3,951,811 | 4,368,162 | 4,368,162 | ||||||||
Net income | ¥ | 39,698 | ¥ | 807,188 | $ | 131,140 | |||||
Earnings per share | ¥ | 0.01 | ¥ | 0.18 | $ | 0.03 | |||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Note 23 SUBSEQUENT EVENTS | |
On July 19, 2014, the Company granted 50,000 restricted shares to a non-affiliate as compensation for certain consulting service. The fair value of the restricted shares was $190,000. | |
On July 19, 2014, the Company decided to cancel 40,625 restricted shares, which was issued to Expert Asia Investment Ltd. on May 8, 2014, as the services were not provided pursuant to the agreement it had with the Company. | |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Accounting, Policy [Policy Text Block] | ' | |||
Basis of presentation - The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and have been consistently applied. | ||||
Consolidation, Policy [Policy Text Block] | ' | |||
Principles of Consolidation - The consolidated financial statements include the accounts of the Company, all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. | ||||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | ' | |||
Variable Interest Entities - A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The Company performs ongoing assessments to determine whether an entity should be considered a VIE and whether an entity previously identified as a VIE continues to be a VIE and whether the Company continues to be the primary beneficiary. | ||||
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. | ||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |||
Currency Translation - The Company’s functional currency is the Chinese Yuan (“RMB”) and the accompanying consolidated financial statements have been expressed in Chinese Yuan. The consolidated financial statements as of and for the year ended June 30, 2014 have been translated into United States dollars (“U.S. dollars”) solely for the convenience of the readers. The translation has been made at the rate of ¥6.1552 =S$1.00, the approximate exchange rate prevailing on June 30, 2014. These translated U.S. dollar amounts should not be construed as representing Chinese Yuan amounts or that the Chinese Yuan amounts have been or could be converted into U.S. dollars. | ||||
Use of Estimates, Policy [Policy Text Block] | ' | |||
Estimates and assumptions - The preparation of the consolidated financial statements in conformity with U.S. GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, allowance for doubtful accounts, deferred taxes, warrants liability, the useful lives of property and equipment and the fair value of share- based payments. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. | ||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||
Fair Values of Financial Instruments - The US GAAP accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||
The three levels of inputs are defined as follows: | ||||
Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||
Level 3 inputs to the valuation methodology are unobservable. | ||||
The carrying amounts reported in the consolidated balance sheets for trade accounts receivable, other receivables, purchase advances, trade accounts payable, accrued liabilities, advances from customers, short-term bank loan and short-term borrowings approximate fair value because of the immediate or short-term maturity of these financial instruments. Long-term borrowings approximate fair value because the interest rate charged approximates the market rate. Long-term other receivables approximate fair value because interest rate approximates the market rate. Long-term investment is measured at fair value on a non-recurring basis at June 30, 2014, since the Company recorded an impairment loss during 2014; the fair value was determined to be zero using Level 2 inputs. (See Note 8.) | ||||
The fair value of the warrants liability was determined using the Black-Scholes Model, as Level 2 inputs (See Note 13). | ||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||
Cash and Cash Equivalents - Cash and cash equivalents are comprised of cash on hand, demand deposits and highly liquid short-term debt investments with stated original maturities of no more than three months. Since a majority of the bank accounts are located in the PRC, those bank balances are uninsured. | ||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||
Trade Accounts and Other Receivables - Accounts receivable are carried at original invoiced amount less a provision for any potential uncollectible amounts. Accounts are considered past due when the related receivables are more than a year old. Provision is made against trade accounts and other receivables to the extent they are considered to be doubtful. Accounts are written off after extensive efforts at collection. Other receivables arise from transactions with non-trade customers. | ||||
Purchase Advances [Policy Text Block] | ' | |||
Purchase Advances - Purchase advances are the amounts prepaid to suppliers for purchases of inventory and are recognized as inventory when the final amount is paid to the suppliers and the inventory is delivered. | ||||
Inventory, Policy [Policy Text Block] | ' | |||
Inventories - Inventories are stated at the lower of cost or market value, on a weighted average basis for BHD. Inventories are stated at the lower of cost or market value, on a first-in-first-out basis for Nanjing Recon and ENI. The methods of determining inventory costs are used consistently from year to year. Allowance for inventory obsolescence is provided when the market value of certain inventory items are lower than the cost. | ||||
Tax Recoverable [Policy Text Block] | ' | |||
Tax Recoverable – Tax recoverable represented amounts paid for value added tax (“VAT”) on purchases in the PRC amounting to ¥575,650 at June 30, 2013. The amount can be used to offset VAT payable on sales made by the Company. | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||
Property and Equipment - Property and equipment are stated at cost. Depreciation on motor vehicles and office equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from two to ten years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the assets | ||||
Items | Useful life | |||
Motor vehicles | 5-10 years | |||
Office equipment | 2-5 years | |||
Leasehold improvement | 5 years | |||
Equity Method Investments, Policy [Policy Text Block] | ' | |||
Long-term investment – Long-term investment in equity over which the Company has the ability to exercise significant influence but not control, and that, in general, are 20-50 percent owned, are stated at cost plus equity in undistributed net income (loss) of the investee. These investments are evaluated for impairment, in which an impairment loss would be recorded whenever a decline in the value of an equity investment below its carrying amount is determined to be “other than temporary.” In judging “other than temporary,” the Company would consider the length of time and extent to which the fair value of the investment has been less than the carrying amount of the investment, the near-term and longer-term operating and financial prospects of the investee, and the Company’s longer-term intent of retaining the investment in the investee. | ||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||
Long-Lived Assets - The Company applies the ASC Topic 360 “Property, plant and equipment.” ASC Topic 360 requires that long-lived assets, such as property and equipment be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined based on the estimated discounted future cash flows expected to be generated by the asset. There were no impairments at June 30, 2013 and June 30, 2014. | ||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||
Revenue Recognition - The Company recognizes revenue when the following four criteria are met: (1) persuasive evidence of an arrangement, (2) delivery has occurred or services have been provided, (3) the sales price is fixed or determinable, and (4) collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customers and the customers have signed a completion and acceptance report, risk of loss has transferred to the customers, customers’ acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in customers’ acceptance provisions have been satisfied. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. | ||||
Hardware: | ||||
Revenue from hardware sales is generally recognized when the product is shipped to the customer and when there are no unfulfilled company obligations that affect the customer’s final acceptance of the arrangement. | ||||
Software: | ||||
The Company sells self-developed software. For software sales, the Company recognizes revenues in accordance with ASC Topic 985 - 605 “Software Revenue Recognition”. Revenue from software is recognized according to project contracts. Contract costs are accumulated during the periods of installation and testing or commissioning. Usually this is short term. Revenue is not recognized until completion of the contracts and receipt of acceptance statements. | ||||
Service: | ||||
The Company provides services to improve software function and system operation on separated fixed-price contracts. Revenue is recognized on the completed contract method when acceptance is determined by a completion report signed by the customer. | ||||
Deferred revenue represents unearned amounts billed to customers related to sales contracts. | ||||
Subsidy Income [Policy Text Block] | ' | |||
Subsidy Income - Grants are given by the government to support local software companies’ operation and research and development. Grants related to research and development projects are recognized as subsidy income in the unaudited condensed consolidated statements of operations when received. Grants in the form of value-added-tax refund for software products are recognized when received. | ||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||
Share-Based Compensation - The Company accounts for share-based compensation in accordance with ASC Topic 718, Share-Based Payment. Under the fair value recognition provisions of this topic, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. The Company has elected to recognize compensation expenses using the Binomial Lattice valuation model estimated at the grant date based on the award’s fair value. | ||||
Income Tax, Policy [Policy Text Block] | ' | |||
Income Taxes - Income taxes are provided based upon the liability method of accounting pursuant to ASC Topic 740, Accounting for Income Taxes. Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company has not been subject to any income taxes in the United States or the Cayman Islands. | ||||
Under ASC Topic 740, 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. Income tax returns for the year prior to 2010 are no longer subject to examination by tax authorities. | ||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||
Earnings (loss) per Share (“EPS”) - Basic EPS is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding. Diluted EPS are computed by dividing net income (loss) by the weighted-average number of ordinary shares and dilutive potential ordinary share equivalents outstanding. | ||||
Potentially dilutive ordinary shares consist of ordinary shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using the treasury stock method). For the year ended June 30, 2014, there were 64,207 restricted shares included in the weighted average dilutive shares calculation. However, the effect from options and warrants would have been anti-dilutive due to the fact that the weighted average exercise price per share of options and warrants is higher than the weighted average market price per ordinary share during the years ended June 30, 2013 and 2014. | ||||
Reclassification, Policy [Policy Text Block] | ' | |||
Reclassification – Certain accounts from prior period have been reclassified to confirm to the current period presentation. | ||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||
Recently Issued Accounting Pronouncements - In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” (“ASU 2014-08”). Under ASU 2014-08, only disposals representing a strategic shift in operations that have a major effect on the Company’s operations and financial results should be presented as discontinued operations. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. However, ASU 2014-08 should not be applied to a component that is classified as held for sale before the effective date even if the component is disposed of after the effective date. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The effects of ASU 2014-08 will depend on any future disposals by the Company. | ||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). Previous revenue recognition guidance in U.S. GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principal, five steps are required to be applied. In addition, ASU 2014-09 expands and enhances disclosure requirements which require disclosing sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This includes both qualitative and quantitative information. The amendments in ASU 2014-09 are retrospectively effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. Management is evaluating the effect, if any, the Company’s financial positions and results of operations. | ||||
TRADE_ACCOUNTS_RECEIVABLE_NET_
TRADE ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Receivables [Abstract] | ' | ||||||||||
Schedule Of Accounts Receivable [Table Text Block] | ' | ||||||||||
Accounts receivable consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Third Party | RMB | RMB | U.S. Dollars | ||||||||
Trade accounts receivable | ¥ | 42,993,298 | ¥ | 48,284,531 | $ | 7,844,510 | |||||
Allowance for doubtful accounts | -4,344,518 | -4,730,794 | -768,584 | ||||||||
Total - third- party, net | ¥ | 38,648,780 | ¥ | 43,553,737 | $ | 7,075,926 | |||||
Schedule Of Accounts Receivable Related Party [Table Text Block] | ' | ||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Related Party | RMB | RMB | U.S. Dollars | ||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | ¥ | 19,722,574 | ¥ | 5,441,498 | $ | 884,049 | |||||
Beijing Langchen Construction Company | - | 726,800 | 118,080 | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | - | 100,000 | 16,246 | ||||||||
Xiamen Hengda Hitek Computer Network Co. Ltd. | - | 1,211,000 | 196,744 | ||||||||
Allowance for doubtful accounts | -978,210 | - | - | ||||||||
Total - related-parties, net | ¥ | 18,744,364 | ¥ | 7,479,298 | $ | 1,215,119 | |||||
Related Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Non-current portion | RMB | RMB | U.S. Dollars | ||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | ¥ | - | ¥ | 16,062,574 | $ | 2,609,595 | |||||
Allowance for doubtful accounts | - | -1,606,257 | -260,960 | ||||||||
Total - related-parties, net | ¥ | - | ¥ | 14,456,317 | $ | 2,348,635 | |||||
OTHER_RECEIVABLES_NET_Tables
OTHER RECEIVABLES, NET (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Other Receivables [Abstract] | ' | ||||||||||
Schedule Of Other Receivables [Table Text Block] | ' | ||||||||||
Other receivables consisted of the following: | |||||||||||
Third Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Current Portion | RMB | RMB | U.S. Dollars | ||||||||
Due from ENI (A) | ¥ | 6,799,669 | ¥ | 2,523,145 | $ | 409,921 | |||||
Loans to third parties (B) | 8,440,639 | 8,979,408 | 1,458,833 | ||||||||
Business advance to staff (C) | 2,977,176 | 6,371,923 | 1,035,210 | ||||||||
Deposits for projects | 185,669 | 495,961 | 80,576 | ||||||||
Others | 1,210,230 | 373,622 | 60,700 | ||||||||
Allowance for doubtful accounts | -481,880 | -451,016 | -73,274 | ||||||||
Total | ¥ | 19,131,503 | ¥ | 18,293,043 | $ | 2,971,966 | |||||
Third Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Non-Current Portion | RMB | RMB | U.S. Dollars | ||||||||
Due from ENI (A) | ¥ | 3,502,680 | ¥ | 5,353,104 | $ | 869,688 | |||||
Total | ¥ | 3,502,680 | ¥ | 5,353,104 | $ | 869,688 | |||||
(A) | After ENI ceased to be a VIE of the Company, ENI in January 2012 agreed to repay the loan on a payment schedule, with interest accrued during the period at an annual rate of 4%. In accordance with the payment schedule, the principal plus accrued interest is required to be repaid over approximately three years on a quarterly basis beginning March 2012. The first four payments are RMB 1.2 million each. In March, June, September and December of 2012, the Company received RMB 4.8 million. Starting March 2013, the installment for each quarter would be ¥1,777,653. The Company received the payments on time quarterly since March, 2013.The payments after one year are RMB5,353,104 ($ 869,688). | ||||||||||
(B) | Loans to third-parties are mainly used for short-term funding to support cooperative companies. These loans are due on demand bearing no interest. | ||||||||||
(C) | Business advance to staff represents advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. | ||||||||||
Schedule Of Other Receivables Related Party [Table Text Block] | ' | ||||||||||
Below is a summary of other receivables - related parties which consisted of the following: | |||||||||||
Related Party | June 30, 2013 | June 30, 2014 | June 30, 2014 | ||||||||
Name of Related Party | RMB | RMB | U.S. Dollars | ||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | 500,000 | 500,000 | 81,232 | ||||||||
Beijing Langchen Construction Company | - | 913,780 | 148,457 | ||||||||
Other-travel advances | 242,528 | 653 | 106 | ||||||||
Total | ¥ | 742,528 | ¥ | 1,414,433 | $ | 229,795 | |||||
PURCHASE_ADVANCES_Tables
PURCHASE ADVANCES (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ||||||||||
Schedule Of Purchase Advances [Table Text Block] | ' | ||||||||||
The Company purchased products and services from a third-party and a related party during the normal course of business. Purchase advances consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Third Party | RMB | RMB | U.S. Dollars | ||||||||
Prepayment for inventory purchase | ¥ | 19,237,449 | ¥ | 27,119,326 | $ | 4,405,921 | |||||
Allowance for doubtful accounts | -824,942 | -1,360,261 | -220,994 | ||||||||
Total | ¥ | 18,412,507 | ¥ | 25,759,065 | $ | 4,184,927 | |||||
Schedule Of Purchase Advances To Related Party [Table Text Block] | ' | ||||||||||
Below is a summary of purchase advances to related party. | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Related Party | RMB | RMB | U.S. Dollars | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | ¥ | 394,034 | ¥ | 394,034 | $ | 64,016 | |||||
Total | ¥ | 394,034 | ¥ | 394,034 | $ | 64,016 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||||
Inventories consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Small component parts | ¥ | 45,314 | ¥ | 55,262 | $ | 8,978 | |||||
Raw materials | - | 272,416 | 44,258 | ||||||||
Work in process | 1,356,755 | 1,665,447 | 270,576 | ||||||||
Finished goods | 11,869,001 | 12,343,477 | 2,005,373 | ||||||||
Total inventories | ¥ | 13,271,070 | ¥ | 14,336,602 | $ | 2,329,185 | |||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||||
Property and equipment consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Motor vehicles | ¥ | 2,683,250 | ¥ | 2,314,296 | $ | 375,990 | |||||
Office equipment and fixtures | 593,654 | 709,165 | 115,215 | ||||||||
Total property and equipment | 3,276,904 | 3,023,461 | 491,205 | ||||||||
Less: Accumulated depreciation | -1,567,058 | -1,701,923 | -276,502 | ||||||||
Property and equipment, net | ¥ | 1,709,846 | ¥ | 1,321,538 | $ | 214,703 | |||||
OTHER_PAYABLES_Tables
OTHER PAYABLES (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||||
Schedule Of Other Payables [Table Text Block] | ' | ||||||||||
Other payables consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Third Party | RMB | RMB | U.S. Dollars | ||||||||
Consulting services | ¥ | 1,199,716 | ¥ | 777,863 | $ | 126,375 | |||||
Due to ENI (A) | 148,000 | - | - | ||||||||
Distributors and employees | 580,648 | 973,707 | 158,193 | ||||||||
Others | 36,327 | 13,509 | 2,194 | ||||||||
Total | ¥ | 1,964,691 | ¥ | 1,765,079 | $ | 286,762 | |||||
(A) | A former VIE of the Company, which ceased to be a VIE on December 16, 2010. | ||||||||||
Schedule Of Other Payables Related Party [Table Text Block] | ' | ||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Related Party | RMB | RMB | U.S. Dollars | ||||||||
Due to related parties (1) | ¥ | 2,860,824 | ¥ | 2,560,648 | $ | 416,015 | |||||
Expenses paid by the major shareholders | 467,499 | 439,071 | 71,333 | ||||||||
Due to family member of an owner of Recon | 716,000 | 50,000 | 8,123 | ||||||||
Due to management staff on behalf of Recon | 195,352 | 256,305 | 41,640 | ||||||||
Total | ¥ | 4,239,675 | ¥ | 3,306,024 | $ | 537,111 | |||||
-1 | Primarily includes an advance from Yabei Nuoda for RMB 61,301 and an advance from Xiamen Hengda Haitek for RMB 2,499,347 to supplement the Company’s working capital. The advance is payable on demand and non-interest bearing. | ||||||||||
TAXES_PAYABLE_Tables
TAXES PAYABLE (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Taxes Payable [Abstract] | ' | ||||||||||
Taxes Payable [Table Text Block] | ' | ||||||||||
Taxes payable consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
VAT payable | ¥ | 2,802,890 | ¥ | 3,412,759 | $ | 554,451 | |||||
Business tax payable | 75,865 | - | - | ||||||||
Enterprise income tax payable | 3,850,288 | 4,134,210 | 671,661 | ||||||||
Other taxes payable | 25,385 | 42,877 | 6,967 | ||||||||
Total taxes payable | ¥ | 6,754,428 | ¥ | 7,589,846 | $ | 1,233,079 | |||||
SHORTTERM_BANK_LOAN_Tables
SHORT-TERM BANK LOAN (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Schedule Of Short Term Bank Loan [Table Text Block] | ' | ||||||||||
Short-term bank loans consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Communication Bank, 6.6% annual interest, due on October 25, 2013 | ¥ | 3,090,000 | ¥ | - | ¥ | - | |||||
Communication Bank, 6.6% annual interest, due on November 15, 2013 | 1,910,000 | - | - | ||||||||
Beijing Bank,5.75% annual interest, matured and paid off by February 25, 2014 | ¥ | 1,200,000 | ¥ | - | $ | - | |||||
Beijing Bank, 5.75 % annual interest, matured and paid off by February 27, 2014 | 600,000 | - | - | ||||||||
Beijing Bank, 5.75 % annual interest, paid off on April 9, 2014 | 1,200,000 | - | - | ||||||||
Beijing Bank, 5.75 % annual interest, paid off on April 16, 2014 | 900,000 | - | - | ||||||||
Beijing Bank,5.75 % annual interest, matured and paid off by March 11, 2014 | 1,100,000 | - | - | ||||||||
Industrial and commercial bank, floating interest rate at 5.6%, due on December 24, 2014 | - | 2,000,000 | 324,929 | ||||||||
Industrial and commercial bank, floating interest rate at 6.0%, due on June 24, 2015 | - | 8,000,000 | 1,299,714 | ||||||||
Total short-term bank loans | ¥ | 10,000,000 | ¥ | 10,000,000 | $ | 1,624,643 | |||||
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Schedule of Short-term Debt [Table Text Block] | ' | ||||||||||
Short-term borrowings are generally extended upon maturity and consisted of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Short-term borrowings due to non-related parties: | RMB | RMB | U.S. Dollars | ||||||||
Short-term borrowing, 6% annual interest, matured and paid off by November 9, 2013 | ¥ | 70,375 | ¥ | - | $ | - | |||||
Short-term borrowings with no interest, beginning April 22, 2013, paid off on January 31, 2014 | 500,000 | - | - | ||||||||
Total short-term borrowings due to non-related parties | ¥ | 570,375 | ¥ | - | $ | - | |||||
Interest expense for short-term borrowings due to non-related parties was ¥47,360 and ¥1,525 ($248) for the year ended June 30, 2013 and 2014, respectively. | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
Short-term borrowings due to related parties: | RMB | RMB | U.S. Dollars | ||||||||
Due-on-demand borrowings from Founders, no interest | ¥ | 6,377 | ¥ | - | $ | - | |||||
Short-term borrowing from a Founder's family member, 6% annual interest, matured and paid off by December 21, 2013 | 3,653,906 | - | - | ||||||||
Short-term borrowing from a Founder, 6.6% annual interest, due on November 25, 2014. | 5,007,728 | 813,577 | |||||||||
Short-term borrowing from a Founder's family member, 6% annual interest, matured and paid off by November 29, 2013 | 1,610,000 | - | - | ||||||||
Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co. Ltd., no interest, due on November 14, 2014 | 200,000 | 200,000 | 32,493 | ||||||||
Short-term borrowings from management, 6% annual interest, matured and paid off by December 7, 2013 | 32,996 | - | - | ||||||||
Total short-term borrowings due to related parties | ¥ | 5,503,279 | ¥ | 5,207,728 | $ | 846,070 | |||||
WARRANTS_LIABILITY_Tables
WARRANTS LIABILITY (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | ' | ||||||||||||||||
These common stock purchase warrants do not trade in an active securities market, and as such, their fair value is estimated by using the Cox-Ross-Rubinstein (CRR) Binomial Model using the following assumptions: | |||||||||||||||||
June 30, | November 29, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Annual dividend yield | - | - | |||||||||||||||
Exercised price | 5.38 | 5.38 | |||||||||||||||
Underlying price at grant date | 3.86 | 3.86 | |||||||||||||||
Expected life (years) | 2.42 | 3 | |||||||||||||||
Risk-free interest rate | 0.88 | % | 0.56 | % | |||||||||||||
Expected volatility | 220 | % | 272 | % | |||||||||||||
Schedule Of Fair Value Hierarchy Measured On Recurring Basis For Warrants Liability [Table Text Block] | ' | ||||||||||||||||
The following table sets forth by level within the fair value hierarchy the warrants liability that was accounted at fair value on a recurring basis. | |||||||||||||||||
Fair Value Measurement at | Carrying Value at | Carrying Value at | |||||||||||||||
June 30, 2014 | June 30, 2014 | June 30, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | RMB | USD | |||||||||||||
Warrants liability | ¥ | - | ¥ | 5,021,621 | ¥ | - | ¥ | 5,021,621 | $ | 815,834 | |||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
The following is a reconciliation of the beginning and ending balance of the warrants liability measured at fair value on a recurring basis for the year ended June 30, 2014: | |||||||||||||||||
Change of warrants liability | |||||||||||||||||
RMB | USD | ||||||||||||||||
Beginning balance – July 1 2012 and June 30, 2013 | - | - | |||||||||||||||
Initial measurement of warrants liability on November 29, 2013 | ¥ | 5,082,268 | $ | 825,687 | |||||||||||||
Change of warrant liability from November 29, 2013 to June 30, 2014 | -60,647 | -9,853 | |||||||||||||||
Ending balance - June 30, 2014 | ¥ | 5,021,621 | $ | 815,834 | |||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
The fair value was estimated on July 29, 2009 using the Binomial Lattice valuation model, with the following weighted-average assumptions: | |||||||||||||
Stock price at grant date | $6.00 | ||||||||||||
Exercise price (per share) | $6.00 | ||||||||||||
Risk free rate of interest*** | 4.61% | ||||||||||||
Dividend yield | 0.00% | ||||||||||||
Life of option (years)** | 10 | ||||||||||||
Volatility* | 78% | ||||||||||||
Forfeiture rate**** | 0% | ||||||||||||
* Volatility is projected using the performance of PHLX Oil Service Sector index. | |||||||||||||
** The life of options represents the period the option is expected to be outstanding. | |||||||||||||
*** The risk-free interest rate is based on the Chinese international bond denominated in U.S. dollar, with a maturity that approximates the life of the option. | |||||||||||||
**** Forfeiture rate is the estimated percentage of options forfeited by employees by leaving or being terminated before vesting. | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
The following is a summary of the stock options activity: | |||||||||||||
Stock Options | Shares | Weighted Average Exercise Price Per Share | |||||||||||
Outstanding as of July 1, 2012 and June 30, 2013 | 608,000 | $3.93 | |||||||||||
Granted | - | - | |||||||||||
Forfeited | -44,000 | -2.96 | |||||||||||
Exercised (1) | -148,400 | -2.96 | |||||||||||
Outstanding as of June 30, 2014 | 415,600 | $4.37 | |||||||||||
-1 | On April 22, 2014, the Chief Executive Office and Chief Technology Officer of the Company exercised their stock options to purchased 52,000 shares of the Company’s common stock for RMB 948,559 ($153,920). The transaction was completed on May 13, 2014. On June 30, 2014, other employees exercised their stock options to purchased 96,400 shares of the Company’s common stock for RMB 1,756,349 ($285,344). | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | ||||||||||||
The following is a summary of the status of options outstanding and exercisable at June 30, 2014: | |||||||||||||
Outstanding Options | Exercisable Options | ||||||||||||
Average Exercise Price | Number | Average Remaining Contractual life | Average Exercise Price | Number | Average Remaining Contractual life | ||||||||
(Years) | (Years) | ||||||||||||
$6.00 | 193,000 | 5.08 | $6.00 | 154,400 | 5.08 | ||||||||
$2.96 | 222,600 | 7.74 | - | - | - | ||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||
Following is a summary of the restricted stock grants: | |||||||||||||
Restricted stock grants | Shares | ||||||||||||
Nonvested as of June 30, 2013 | - | ||||||||||||
Granted | 300,987 | ||||||||||||
Forfeited | - | ||||||||||||
Vested | -70,625 | ||||||||||||
Nonvested as of June 30, 2014 | 230,362 | ||||||||||||
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
Deferred tax asset is comprised of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Allowance for doubtful receivables | ¥ | 1,006,721 | ¥ | 1,209,961 | $ | 196,575 | |||||
Total deferred income tax assets | ¥ | 1,006,721 | ¥ | 1,209,961 | $ | 196,575 | |||||
Deferred tax liability is comprised of the following: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Temporary difference - accounts payable | ¥ | - | ¥ | 180,186 | $ | 29,274 | |||||
Total deferred income tax liability | ¥ | - | ¥ | 180,186 | $ | 29,274 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||
Following is a reconciliation of income tax at the effective rate to income tax at the calculated statutory rates: | |||||||||||
For the year ended | For the year ended | For the year ended | |||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Income tax calculated at statutory rates | ¥ | 1,685,433 | ¥ | 3,073,289 | $ | 499,300 | |||||
Nondeductible expenses (non-taxable income) | -187,280 | 115,054 | 18,691 | ||||||||
Benefit of favorable rate for high-technology companies | -116,334 | -1,229,316 | -199,720 | ||||||||
Benefit of revenue exempted from enterprise income tax | -1,207,316 | -794,651 | -129,102 | ||||||||
Deferred income taxes provision | 12,288 | - | - | ||||||||
Deferred income tax (benefit) | 100,080 | -203,240 | -33,019 | ||||||||
Provision for income tax | ¥ | 286,871 | ¥ | 961,136 | $ | 156,150 | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||
The Company’s tax provision is comprised of the following: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Current income tax provision | ¥ | 186,791 | ¥ | 1,164,376 | $ | 189,169 | |||||
Deferred income taxes provision (benefit) | 100,080 | -203,240 | -33,019 | ||||||||
Provision for income tax | ¥ | 286,871 | ¥ | 961,136 | $ | 156,150 | |||||
NONCONTROLLING_INTERESTTables
NON-CONTROLLING INTEREST(Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Noncontrolling Interest [Abstract] | ' | |||||||||||||
Noncontrolling Interest [Table Text Block] | ' | |||||||||||||
Non-controlling interest consisted of the following: | ||||||||||||||
As of June 30, 2013 | ||||||||||||||
Nanjing | ||||||||||||||
BHD | Recon | Total | Total | |||||||||||
RMB | RMB | RMB | U.S. Dollars | |||||||||||
Paid-in capital | ¥ | 1,651,000 | ¥ | 200,000 | ¥ | 1,851,000 | $ | 299,118 | ||||||
Unappropriated retained earnings | 2,717,231 | 2,665,337 | 5,382,568 | 869,812 | ||||||||||
Accumulated other comprehensive loss | -18,793 | -13,784 | -32,577 | -5,265 | ||||||||||
Total non-controlling interest | ¥ | 4,349,438 | ¥ | 2,851,553 | ¥ | 7,200,991 | $ | 1,163,665 | ||||||
As of June 30, 2014 | ||||||||||||||
Nanjing | ||||||||||||||
BHD | Recon | Total | Total | |||||||||||
RMB | RMB | RMB | U.S. Dollars | |||||||||||
Paid-in capital | ¥ | 1,651,000 | ¥ | 200,000 | ¥ | 1,851,000 | $ | 300,721 | ||||||
Unappropriated retained earnings | 3,152,687 | 3,250,513 | 6,403,200 | 1,040,291 | ||||||||||
Accumulated other comprehensive loss | -16,863 | -11,853 | -28,721 | -4,664 | ||||||||||
Total non-controlling interest | ¥ | 4,786,824 | ¥ | 3,438,660 | ¥ | 8,225,479 | $ | 1,336,348 | ||||||
COMMITMENTS_AND_CONTINGENCY_Ta
COMMITMENTS AND CONTINGENCY (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Operating Leases of Lessee Disclosure [Table Text Block] | ' | |||||||
The Company leases three offices in Beijing (two for BHD; one for Recon-JN) and one office in Nanjing for Nanjing Recon. Future payments under such leases are as follows as of June 30, 2014: | ||||||||
Twelve months ended June 30, | ||||||||
Office lease payment | ||||||||
RMB | U.S. Dollars | |||||||
2015 | ¥ | 980,000 | $ | 159,215 | ||||
2016 | 180,000 | 29,244 | ||||||
Total | ¥ | 1,160,000 | $ | 188,459 | ||||
RELATED_PARTY_TRANSACTIONS_AND1
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||
Sales To Related Parties [Table Text Block] | ' | ||||||||||
Sales to related parties – sales to related parties consisted of the following: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | ¥ | 8,815,773 | ¥ | 4,680,389 | $ | 760,396 | |||||
Beijing Langchen Construction Company | - | 640,000 | 103,977 | ||||||||
Xiamen Hengda Haitian computer network Inc | 897,436 | 1,334,188 | 216,758 | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | - | 85,470 | 13,886 | ||||||||
Revenues from related parties | ¥ | 9,713,209 | ¥ | 6,740,047 | $ | 1,095,017 | |||||
Purchases From Related Parties [Table Text Block] | ' | ||||||||||
Purchases from related parties – purchases from related parties consisted of the following: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
Huanghua Xiang Tong Manufacture | ¥ | 9,247,580 | ¥ | - | $ | - | |||||
Beijing Yabei Nuoda Science and Technology Co. Ltd. | - | - | - | ||||||||
Xiamen Huangsheng Hitek Computer Network Co. Ltd. | 512,393 | - | - | ||||||||
Nanjing Youkong Information Technology Co., Ltd | - | - | - | ||||||||
Purchase from related parties | ¥ | 9,759,973 | ¥ | - | $ | - | |||||
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||||
Summary information regarding consolidated VIEs is as follows: | |||||||||||
June 30, 2013 | June 30, 2014 | June 30, 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | ¥ | 10,341,778 | ¥ | 14,021,653 | $ | 2,278,017 | |||||
Trade accounts receivable, net | 57,393,144 | 51,033,035 | 8,291,044 | ||||||||
Notes receivable | 2,578,855 | - | - | ||||||||
Purchase advances | 17,862,507 | 24,600,379 | 3,996,682 | ||||||||
Other assets | 29,974,454 | 34,097,774 | 5,539,670 | ||||||||
Total current assets | ¥ | 118,150,738 | ¥ | 123,752,841 | $ | 20,105,413 | |||||
Non-current assets | 1,705,940 | 15,758,115 | 2,560,130 | ||||||||
Total Assets | ¥ | 119,856,678 | ¥ | 139,510,956 | $ | 22,665,543 | |||||
LIABILITIES | |||||||||||
Trade accounts payable | ¥ | 11,378,883 | ¥ | 11,413,505 | $ | 1,854,287 | |||||
Taxes payable | 6,754,428 | 7,589,846 | 1,233,079 | ||||||||
Other liabilities | 24,770,161 | 21,878,699 | 3,554,507 | ||||||||
Total current liabilities | 42,903,472 | 40,882,050 | 6,641,873 | ||||||||
Total Liabilities | ¥ | 42,903,472 | ¥ | 40,882,050 | $ | 6,641,873 | |||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Earnings Per Share, Basic [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||
The computation of basic and diluted earnings per common share is as follows: | |||||||||||
For the years ended June 30, | |||||||||||
2013 | 2014 | 2014 | |||||||||
RMB | RMB | U.S. Dollars | |||||||||
BASIC | |||||||||||
Weighted average number of common shares outstanding used in computing basic earnings per share | 3,951,811 | 4,303,955 | 4,303,955 | ||||||||
Net income | ¥ | 39,698 | ¥ | 807,188 | $ | 131,140 | |||||
Earnings per share | ¥ | 0.01 | ¥ | 0.19 | $ | 0.03 | |||||
DILUTED | |||||||||||
Weighted average number of common shares outstanding used in computing basic earnings per share | 3,951,811 | 4,303,955 | 4,303,955 | ||||||||
Add: Assumed exercise of stock options, stock awards and warrants | - | 64,207 | 64,207 | ||||||||
Weighted average number of common shares outstanding | 3,951,811 | 4,368,162 | 4,368,162 | ||||||||
Net income | ¥ | 39,698 | ¥ | 807,188 | $ | 131,140 | |||||
Earnings per share | ¥ | 0.01 | ¥ | 0.18 | $ | 0.03 | |||||
ORGANIZATION_AND_NATURE_OF_OPE1
ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) | 12 Months Ended | 12 Months Ended | 18 Months Ended | 12 Months Ended | 18 Months Ended | |||||
Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 15, 2010 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 15, 2010 | |
Beijing Bhd Petroleum Technology Co Ltd [Member] | Beijing Bhd Petroleum Technology Co Ltd [Member] | Beijing Bhd Petroleum Technology Co Ltd [Member] | Nanjing Recon Technology Co Ltd [Member] | Nanjing Recon Technology Co Ltd [Member] | Nanjing Recon Technology Co Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain Loss Absorbed Percentage | 100.00% | ' | ' | ' | 100.00% | ' | ' | 100.00% | ' | ' |
Gain Loss Sharing Percentage | 90.00% | ' | ' | ' | 90.00% | ' | ' | 90.00% | ' | ' |
Technical Consulting Services Fee Percentage | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 24.02% | 32.22% | ' | ' | 67.50% | ' | ' | 80.00% |
Shareholders Ownership Percentage | ' | ' | ' | ' | ' | 86.24% | ' | ' | 80.00% | ' |
Gain Loss Allocated To Minority Interest Percentage | ' | ' | ' | ' | 10.00% | ' | ' | 10.00% | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | CNY | CNY | Accounting Standards Update 2014-08 [Member] | Minimum [Member] | Maximum [Member] | Motor vehicles [Member] | Motor vehicles [Member] | Office Equipment [Member] | Office Equipment [Member] | Leasehold Improvements [Member] | |
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Transactions, Description | 'The translation has been made at the rate of 6.1552 =S$1.00, the approximate exchange rate prevailing on June 30, 2014. | 'The translation has been made at the rate of 6.1552 =S$1.00, the approximate exchange rate prevailing on June 30, 2014. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | '5 years | '10 years | '2 years | '5 years | '5 years |
Tax recoverable | $0 | 0 | 575,650 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 24.02% | 24.02% | 32.22% | ' | 20.00% | 50.00% | ' | ' | ' | ' | ' |
New Accounting Pronouncement or Change in Accounting Principle, Description | ' | ' | ' | 'In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, (ASU 2014-08). Under ASU 2014-08, only disposals representing a strategic shift in operations that have a major effect on the Companys operations and financial results should be presented as discontinued operations. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The amendments in ASU 2014-08 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. However, ASU 2014-08 should not be applied to a component that is classified as held for sale before the effective date even if the component is disposed of after the effective date. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The effects of ASU 2014-08 will depend on any future disposals by the Company. | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 64,207 | 64,207 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TRADE_ACCOUNTS_RECEIVABLE_NET_1
TRADE ACCOUNTS RECEIVABLE, NET (Details) (Third Party [Member]) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Trade accounts receivable | $7,844,510 | 48,284,531 | 42,993,298 |
Allowance for doubtful accounts | -768,584 | -4,730,794 | -4,344,518 |
Total - third- party, net | $7,075,926 | 43,553,737 | 38,648,780 |
TRADE_ACCOUNTS_RECEIVABLE_NET_2
TRADE ACCOUNTS RECEIVABLE, NET (Details 1) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Beijing Langchen Construction Company [Member] | Beijing Langchen Construction Company [Member] | Beijing Langchen Construction Company [Member] | Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | Xiamen Hengda Hitek Computer Network Co Ltd [Member] | Xiamen Hengda Hitek Computer Network Co Ltd [Member] | Xiamen Hengda Hitek Computer Network Co Ltd [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | |
Accounts Receivable, Net, Current [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trade accounts receivable | $884,049 | 5,441,498 | 19,722,574 | ' | ' | ' | $118,080 | 726,800 | 0 | $16,246 | 100,000 | 0 | $196,744 | 1,211,000 | 0 |
Allowance for doubtful accounts | ' | ' | ' | 0 | 0 | -978,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total - related-parties, net | ' | ' | ' | 1,215,119 | 7,479,298 | 18,744,364 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trade accounts receivable | 2,609,595 | 16,062,574 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | ' | ' | -260,960 | -1,606,257 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total - related-parties, net | ' | ' | ' | $2,348,635 | 14,456,317 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TRADE_ACCOUNTS_RECEIVABLE_NET_3
TRADE ACCOUNTS RECEIVABLE, NET (Details Textual) (CNY) | Jun. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Accounts Receivables Will Be Collected In Next Twelve Months | 4,015,644 |
Accounts Receivables Will Be Collected In Year Two | 4,015,644 |
Accounts Receivables Will Be Collected In Year Three | 4,015,644 |
Accounts Receivables Will Be Collected In Year Four | 4,015,644 |
OTHER_RECEIVABLES_NET_Details
OTHER RECEIVABLES, NET (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |||
USD ($) | CNY | CNY | Third Party [Member] | Third Party [Member] | Third Party [Member] | ||||
USD ($) | CNY | CNY | |||||||
Current Portion | ' | ' | ' | ' | ' | ' | |||
Due from ENI | ' | ' | ' | $409,921 | [1] | 2,523,145 | [1] | 6,799,669 | [1] |
Loans to third parties | ' | ' | ' | 1,458,833 | [2] | 8,979,408 | [2] | 8,440,639 | [2] |
Business advance to staff | ' | ' | ' | 1,035,210 | [3] | 6,371,923 | [3] | 2,977,176 | [3] |
Deposits for projects | ' | ' | ' | 80,576 | 495,961 | 185,669 | |||
Others | ' | ' | ' | 60,700 | 373,622 | 1,210,230 | |||
Allowance for doubtful accounts | ' | ' | ' | -73,274 | -451,016 | -481,880 | |||
Total | ' | ' | ' | 2,971,966 | 18,293,043 | 19,131,503 | |||
Non-Current Portion | ' | ' | ' | ' | ' | ' | |||
Due from ENI | ' | ' | ' | 869,688 | [1] | 5,353,104 | [1] | 3,502,680 | [1] |
Total | $869,688 | 5,353,104 | 3,502,680 | $869,688 | 5,353,104 | 3,502,680 | |||
[1] | After ENI ceased to be a VIE of the Company, ENI in January 2012 agreed to repay the loan on a payment schedule, with interest accrued during the period at an annual rate of 4%. In accordance with the payment schedule, the principal plus accrued interest is required to be repaid over approximately three years on a quarterly basis beginning March 2012. The first four payments are RMB 1.2 million each. In March, June, September and December of 2012, the Company received RMB 4.8 million. Starting March 2013, the installment for each quarter would be ¥1,777,653. The Company received the payments on time quarterly since March, 2013.The payments after one year are RMB5,353,104 ($ 869,688). | ||||||||
[2] | Loans to third-parties are mainly used for short-term funding to support cooperative companies. These loans are due on demand bearing no interest. | ||||||||
[3] | Business advance to staff represents advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. |
OTHER_RECEIVABLES_NET_Details_
OTHER RECEIVABLES, NET (Details 1) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Travel Advances [Member] | Other Travel Advances [Member] | Other Travel Advances [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Langchen Construction Company [Member] | Beijing Langchen Construction Company [Member] | Beijing Langchen Construction Company [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | |
Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $106 | 653 | 242,528 | $229,795 | 1,414,433 | 742,528 | $81,232 | 500,000 | 500,000 | $148,457 | 913,780 | 0 |
OTHER_RECEIVABLES_NET_Details_1
OTHER RECEIVABLES, NET (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2012 | |
CNY | CNY | CNY | CNY | CNY | USD ($) | CNY | CNY | ||
Other Receivables [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Related Party Debt Repayments | ' | ' | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 | ' | ' | 4,800,000 |
Loan On Accrued Interest Rate During Period | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable Under Installment | ' | 1,777,653 | ' | ' | ' | ' | ' | ' | ' |
Payments To Related Parties Year One | ' | ' | ' | ' | ' | ' | $869,688 | 5,353,104 | ' |
PURCHASE_ADVANCES_Details
PURCHASE ADVANCES (Details) (Third Party [Member]) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | |
Purchase Advances [Line Items] | ' | ' | ' |
Prepayment for inventory purchase | $4,405,921 | 27,119,326 | 19,237,449 |
Allowance for doubtful accounts | -220,994 | -1,360,261 | -824,942 |
Total | $4,184,927 | 25,759,065 | 18,412,507 |
PURCHASE_ADVANCES_Details_1
PURCHASE ADVANCES (Details 1) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | |
Related Party | ' | ' | ' | ' | ' | ' |
Advances On Inventory Purchases | $64,016 | 394,034 | 394,034 | $64,016 | 394,034 | 394,034 |
PURCHASE_ADVANCES_Details_Text
PURCHASE ADVANCES (Details Textual) | Jun. 30, 2014 | Jun. 30, 2013 |
Purchase Advances [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 24.02% | 32.22% |
Xiamen Huasheng Haitian Computer Network Co Ltd [Member] | ' | ' |
Purchase Advances [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 57.00% | ' |
INVENTORIES_Details
INVENTORIES (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | |
Inventory [Line Items] | ' | ' | ' |
Small component parts | $8,978 | 55,262 | 45,314 |
Raw materials | 44,258 | 272,416 | 0 |
Work in process | 270,576 | 1,665,447 | 1,356,755 |
Finished goods | 2,005,373 | 12,343,477 | 11,869,001 |
Total inventories | $2,329,185 | 14,336,602 | 13,271,070 |
INVENTORIES_Details_Textual
INVENTORIES (Details Textual) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | |
Inventory [Line Items] | ' | ' | ' |
Inventory Obsolescence Reserve | $0 | 0 | 0 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | Motor vehicles [Member] | Motor vehicles [Member] | Motor vehicles [Member] | Office equipment and fixtures [Member] | Office equipment and fixtures [Member] | Office equipment and fixtures [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property and equipment | $491,205 | 3,023,461 | 3,276,904 | $375,990 | 2,314,296 | 2,683,250 | $115,215 | 709,165 | 593,654 |
Less: Accumulated depreciation | -276,502 | -1,701,923 | -1,567,058 | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $214,703 | 1,321,538 | 1,709,846 | ' | ' | ' | ' | ' | ' |
PROPERTY_AND_EQUIPMENT_NET_Det1
PROPERTY AND EQUIPMENT, NET (Details Textual) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation | $96,771 | 595,647 | 618,552 |
LONGTERM_INVESTMENT_Details_Te
LONG-TERM INVESTMENT (Details Textual) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | CNY | CNY | Avalon [Member] | Avalon [Member] | Avalon's [Member] | Avalon's [Member] | ||
USD ($) | CNY | USD ($) | CNY | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | ' | ' | 2,800,000 | 2,800,000 | ' | ' |
Stock Issued During Period Restricted Stock Award Par Value | ' | ' | ' | ' | $0.09 | ' | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross | ' | $229,067 | 1,409,955 | ' | $250,000 | 1,500,000 | ' | ' |
Percentage To Acquire Of Restricted Stock | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 32.22% | 24.02% | 24.02% | 32.22% | ' | ' | ' | ' |
Net Income (Loss) Attributable To Parent | ' | $131,140 | 807,188 | 39,698 | ' | ' | $250,000 | 1,535,250 |
OTHER_PAYABLES_Details
OTHER PAYABLES (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |||
USD ($) | CNY | CNY | Third Party [Member] | Third Party [Member] | Third Party [Member] | ||||
USD ($) | CNY | CNY | |||||||
Other Payables [Line Items] | ' | ' | ' | ' | ' | ' | |||
Consulting services | ' | ' | ' | $126,375 | 777,863 | 1,199,716 | |||
Due to ENI | 846,070 | 5,207,728 | 5,503,279 | 0 | [1] | 0 | [1] | 148,000 | [1] |
Distributors and employees | ' | ' | ' | 158,193 | 973,707 | 580,648 | |||
Others | ' | ' | ' | 2,194 | 13,509 | 36,327 | |||
Total | ' | ' | ' | $286,762 | 1,765,079 | 1,964,691 | |||
[1] | A former VIE of the Company, which ceased to be a VIE on December 16, 2010. |
OTHER_PAYABLES_Details_1
OTHER PAYABLES (Details 1) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |||
USD ($) | CNY | CNY | Related Party [Member] | Related Party [Member] | Related Party [Member] | ||||
USD ($) | CNY | CNY | |||||||
Other Payables [Line Items] | ' | ' | ' | ' | ' | ' | |||
Due to related parties | $846,070 | 5,207,728 | 5,503,279 | $416,015 | [1] | 2,560,648 | [1] | 2,860,824 | [1] |
Expenses paid by the major shareholders | ' | ' | ' | 71,333 | 439,071 | 467,499 | |||
Due to family member of an owner of Recon | ' | ' | ' | 8,123 | 50,000 | 716,000 | |||
Due to management staff on behalf of Recon | ' | ' | ' | 41,640 | 256,305 | 195,352 | |||
Total | ' | ' | ' | $537,111 | 3,306,024 | 4,239,675 | |||
[1] | Primarily includes an advance from Yabei Nuoda for RMB 61,301 and an advance from Xiamen Hengda Haitek for RMB 2,499,347 to supplement the Companybs working capital. The advance is payable on demand and non-interest bearing. |
OTHER_PAYABLES_Details_Textual
OTHER PAYABLES (Details Textual) (CNY) | Jun. 30, 2014 |
Yabei Nuoda [Member] | ' |
Other Payables [Line Items] | ' |
Working Capital | 61,301 |
Xiamen Hengda Haitek [Member] | ' |
Other Payables [Line Items] | ' |
Working Capital | 2,499,347 |
TAXES_PAYABLE_Details
TAXES PAYABLE (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | |
Taxes Payable [Line Items] | ' | ' | ' |
VAT payable | $554,451 | 3,412,759 | 2,802,890 |
Business tax payable | 0 | 0 | 75,865 |
Enterprise income tax payable | 671,661 | 4,134,210 | 3,850,288 |
Other taxes payable | 6,967 | 42,877 | 25,385 |
Total taxes payable | $1,233,079 | 7,589,846 | 6,754,428 |
SHORTTERM_BANK_LOAN_Details
SHORT-TERM BANK LOAN (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | Communication Bank [Member] | Communication Bank [Member] | Communication Bank [Member] | Communication Bank One [Member] | Communication Bank One [Member] | Communication Bank One [Member] | Beijing Bank [Member] | Beijing Bank [Member] | Beijing Bank [Member] | Beijing Bank One [Member] | Beijing Bank One [Member] | Beijing Bank One [Member] | Beijing Bank Two [Member] | Beijing Bank Two [Member] | Beijing Bank Two [Member] | Beijing Bank Three [Member] | Beijing Bank Three [Member] | Beijing Bank Three [Member] | Beijing Bank Four [Member] | Beijing Bank Four [Member] | Beijing Bank Four [Member] | Industrial And Commercial Bank [Member] | Industrial And Commercial Bank [Member] | Industrial And Commercial Bank [Member] | Industrial And Commercial Bank One [Member] | Industrial And Commercial Bank One [Member] | Industrial And Commercial Bank One [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total short-term bank loans | $1,624,643 | 10,000,000 | 10,000,000 | $0 | 0 | 3,090,000 | $0 | 0 | 1,910,000 | $0 | 0 | 1,200,000 | $0 | 0 | 600,000 | $0 | 0 | 1,200,000 | $0 | 0 | 900,000 | $0 | 0 | 1,100,000 | $324,929 | 2,000,000 | 0 | $1,299,714 | 8,000,000 | 0 |
SHORTTERM_BANK_LOAN_Details_Te
SHORT-TERM BANK LOAN (Details Textual) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Beijing Bank [Member] | Beijing Bank One [Member] | Beijing Bank Two [Member] | Beijing Bank Three [Member] | Beijing Bank Four [Member] | Communication Bank [Member] | Communication Bank One [Member] | Short Term Bank Loan [Member] | Short Term Bank Loan [Member] | Short Term Bank Loan [Member] | Industrial And Commercial Bank [Member] | Industrial And Commercial Bank One [Member] | |
USD ($) | CNY | CNY | ||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Percentage Bearing Variable Interest Rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | 6.60% | 6.60% | ' | ' | ' | 5.60% | 6.00% |
Debt Instrument, Maturity Date | 25-Feb-14 | 27-Feb-14 | 9-Apr-14 | 16-Apr-14 | 11-Mar-14 | 25-Oct-13 | 15-Nov-13 | ' | ' | ' | 24-Dec-14 | 24-Jun-15 |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | $101,393 | 624,096 | 1,243,914 | ' | ' |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | All Other [Member] | All Other [Member] | All Other [Member] | Due On Demand [Member] | Due On Demand [Member] | Due On Demand [Member] | Short Term Borrowings One [Member] | Short Term Borrowings One [Member] | Short Term Borrowings One [Member] | Short Term Borrowings Two [Member] | Short Term Borrowings Two [Member] | Short Term Borrowings Two [Member] | Short Term Borrowings Three [Member] | Short Term Borrowings Three [Member] | Short Term Borrowings Three [Member] | Short Term Borrowings Four [Member] | Short Term Borrowings Four [Member] | Short Term Borrowings Four [Member] | Xiamen Huasheng Haitian Computer Network Co Ltd [Member] | Xiamen Huasheng Haitian Computer Network Co Ltd [Member] | Xiamen Huasheng Haitian Computer Network Co Ltd [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total short-term borrowings due to non-related parties | ' | ' | ' | $0 | 0 | 570,375 | ' | ' | ' | $0 | 0 | 70,375 | $0 | 0 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total short-term borrowings due to related parties | $846,070 | 5,207,728 | 5,503,279 | ' | ' | ' | $0 | 0 | 6,377 | $0 | 0 | 3,653,906 | $813,577 | 5,007,728 | ' | $0 | 0 | 1,610,000 | $0 | 0 | 32,996 | $32,493 | 200,000 | 200,000 |
SHORTTERM_BORROWINGS_Details_T
SHORT-TERM BORROWINGS (Details Textual) | 12 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Short Term Borrowings [Member] | Short Term Borrowings [Member] | Short Term Borrowings [Member] | Short Term Borrowings One [Member] | Short Term Borrowings Two [Member] | Short Term Borrowings Three [Member] | Short Term Borrowings Four [Member] | Short Term Borrowings Five [Member] | Xiamen Hengda Haitian Computer Network Co Ltd [Member] | Short Term Borrowings Six [Member] | |
USD ($) | CNY | CNY | ||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | 9-Nov-13 | 31-Jan-14 | 21-Dec-13 | 25-Nov-14 | 29-Nov-13 | 14-Nov-14 | 7-Dec-13 |
Debt Instrument, Interest Rate Percentage | ' | ' | ' | 6.00% | ' | 6.00% | 6.60% | 6.00% | ' | 6.00% |
Interest Expense, Debt | $248 | 1,525 | 47,360 | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Related Party | $53,118 | 326,953 | 217,884 | ' | ' | ' | ' | ' | ' | ' |
WARRANTS_LIABILITY_Details
WARRANTS LIABILITY (Details) (USD $) | 5 Months Ended | 12 Months Ended |
Nov. 29, 2013 | Jun. 30, 2014 | |
Warrants Liability [Line Items] | ' | ' |
Annual dividend yield | $0 | $0 |
Exercised price | $5.38 | $5.38 |
Underlying price at grant date | $3.86 | $3.86 |
Expected life (years) | '3 years | '2 years 5 months 1 day |
Risk-free interest rate | 0.56% | 0.88% |
Expected volatility | 272.00% | 220.00% |
WARRANTS_LIABILITY_Details_1
WARRANTS LIABILITY (Details 1) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | CNY | USD ($) | CNY | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 3 [Member] | |
CNY | CNY | CNY | |||||
Warrants Liability [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Warrants liability | $815,834 | 5,021,621 | $0 | 0 | 0 | 5,021,621 | 0 |
WARRANTS_LIABILITY_Details_2
WARRANTS LIABILITY (Details 2) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | |
Warrants Liability [Line Items] | ' | ' | ' |
Beginning balance - July 1 2012 and June 30, 2013 | $0 | 0 | ' |
Initial measurement of warrants liability on November 29, 2013 | 825,687 | 5,082,268 | ' |
Change of warrant liability from November 29, 2013 to June 30, 2014 | -9,853 | -60,647 | 0 |
Ending balance - June 30, 2014 | $815,834 | 5,021,621 | 0 |
WARRANTS_LIABILITY_Details_Tex
WARRANTS LIABILITY (Details Textual) (Common Stock [Member]) | Jun. 30, 2014 |
Common Stock [Member] | ' |
Warrants Liability [Line Items] | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 218,600 |
SHAREHOLDERS_EQUITY_Details_Te
SHAREHOLDERS' EQUITY (Details Textual) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Apr. 01, 2014 | Jun. 30, 2014 | Nov. 29, 2013 | Nov. 25, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | CNY | CNY | Bhd [Member] | Bhd [Member] | Stock Offering [Member] | Stock Offering [Member] | Stock Offering [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Placement Agent Warrants [Member] | |
USD ($) | USD ($) | Stock Offering [Member] | IPO [Member] | Common Stock [Member] | ||||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | 546,500 | ' | ' | 546,500 | ' | ' | ' |
Sale of Stock, Price Per Share | ' | ' | ' | ' | ' | ' | $4.30 | $4.81 | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | $1,971,160 | 12,132,882 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | ' | ' | ' | ' | ' | $5.38 | $6.01 | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | ' | 218,600 | 163,950 | 170,000 | 54,650 |
Percentage Transfer Of Profit To Statutory Reserves | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer Of Profit To Statutory Reserves Upto Certain Percentage Of Registered Capital | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Appropriated retained earnings | $674,053 | 4,148,929 | 3,023,231 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 | 25,000,000 | 15,000,000 | 12,000,000 | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 1 Months Ended | |
Jul. 29, 2009 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Stock price at grant date | $6 | |
Exercise price (per share) | $6 | |
Risk free rate of interest | 4.61% | [1] |
Dividend yield | 0.00% | |
Life of option (years) | '10 years | [2] |
Volatility | 78.00% | [3] |
Forfeiture rate | 0.00% | [4] |
[1] | The risk-free interest rate is based on the Chinese international bond denominated in U.S. dollar, with a maturity that approximates the life of the option. | |
[2] | The life of options represents the period the option is expected to be outstanding. | |
[3] | Volatility is projected using the performance of PHLX Oil Service Sector index. | |
[4] | Forfeiture rate is the estimated percentage of options forfeited by employees by leaving or being terminated before vesting. |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Stock Options, Shares, Outstanding | 608,000 | |
Stock Options, Shares, Granted | 0 | |
Stock Options, Shares, Forfeited | -44,000 | |
Stock Option, Shares, Exercised | -148,400 | [1] |
Stock Options, Shares, Outstanding | 415,600 | |
Stock Options, Weighted Average Exercise Price Per share, Outstanding | $3.93 | |
Stock Options, Weighted Average Exercise Price Per share, Granted | $0 | |
Stock Options, Weighted Average Exercise Price Per share, Forfeited | ($2.96) | |
Stock Options, Weighted Average Exercise Price Per share, Exercised | ($2.96) | [1] |
Stock Options, Weighted Average Exercise Price Per share, Outsatnding | $4.37 | |
[1] | On April 22, 2014, the Chief Executive Office and Chief Technology Officer of the Company exercised their stock options to purchased 52,000 shares of the Companybs common stock for RMB 948,559 ($153,920). The transaction was completed on May 13, 2014. On June 30, 2014, other employees exercised their stock options to purchased 96,400 shares of the Companybs common stock for RMB 1,756,349 ($285,344). |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Stock Option One [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding Options, Average Exercise Price | $6 |
Outstanding Options, Number (in shares) | 193,000 |
Outstanding Options, Average Remaining Contractual Life (Years) | '5 years 29 days |
Exercisable Options, Average Exercise Price | $6 |
Exercisable Options, Number (in shares) | 154,400 |
Exercisable Options, Average Remaining Contractual Life (years) | '5 years 29 days |
Stock Option Two [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding Options, Average Exercise Price | $2.96 |
Outstanding Options, Number (in shares) | 222,600 |
Outstanding Options, Average Remaining Contractual Life (Years) | '7 years 8 months 26 days |
Exercisable Options, Average Exercise Price | $0 |
Exercisable Options, Number (in shares) | 0 |
Exercisable Options, Average Remaining Contractual Life (years) | '0 years |
STOCKBASED_COMPENSATION_Detail3
STOCK-BASED COMPENSATION (Details 3) | 12 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted | 0 |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Nonvested as of June 30, 2013 | 0 |
Granted | 300,987 |
Forfeited | 0 |
Vested | -70,625 |
Nonvested as of June 30, 2014 | 230,362 |
STOCKBASED_COMPENSATION_Detail4
STOCK-BASED COMPENSATION (Details Textual) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jul. 29, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | 31-May-14 | Sep. 30, 2013 | 31-May-14 | 31-May-14 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 22, 2014 | Apr. 22, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||||
USD ($) | USD ($) | CNY | CNY | USD ($) | USD ($) | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Other Employees [Member] | Other Employees [Member] | Mr Yin Shenping [Member] | Mr. Chen Guangqiang [Member] | Mr. Chen Guangqiang [Member] | Mr. Chen Guangqiang [Member] | Plan 2009 [Member] | Plan 2009 [Member] | Stock Option [Member] | Stock Option [Member] | Plan 2012 [Member] | Plan 2012 [Member] | ||||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Restricted Stock [Member] | USD ($) | CNY | Restricted Stock [Member] | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share Based Compensation Arrangement By Share Based Payment Award Grant Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29-Jul-09 | 29-Jul-09 | ' | ' | 26-Mar-12 | 26-Mar-12 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 300,987 | 300,987 | ' | ' | ' | ' | 95,181 | ' | ' | 135,181 | 293,000 | 293,000 | ' | ' | 415,000 | 415,000 | |||
Exercise price (per share) | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6 | ' | ' | ' | $2.96 | ' | |||
Life of option (years) | '10 years | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | ' | ' | '10 years | '10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | ' | ' | 20.00% | 20.00% | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | 2,300,000 | ' | ' | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 5 months 16 days | '2 years 5 months 16 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 7 months 20 days | '2 years 7 months 20 days | ' | ' | |||
Share Based Compensation Arrangement By Share Based Payment Award Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29-Jul-19 | 29-Jul-19 | ' | ' | 26-Mar-22 | 26-Mar-22 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.42 | 30.17 | ' | ' | $1.49 | 10.06 | |||
Stock or Unit Option Plan Expense | ' | 269,904 | 1,657,479 | 1,852,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | '5 years | '5 years | |||
Stock Issued During Period, Shares, Issued for Services | ' | ' | ' | ' | ' | ' | 40,625 | 40,625 | 30,000 | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Stock Issued During Period, Value, Issued for Services | ' | ' | ' | ' | ' | ' | 162,906 | 1,002,362 | 66,420 | 407,972 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 300,987 | 300,987 | ' | ' | ' | ' | 95,181 | ' | ' | 135,181 | 293,000 | 293,000 | ' | ' | 415,000 | 415,000 | |||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 688,782 | 4,207,496 | ' | ' | ' | ' | ' | ' | ' | |||
Restricted Stock Closing Price | ' | ' | ' | ' | $4.01 | $2.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.99 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share-Based Compensation | ' | 394,630 | 2,429,028 | 1,852,656 | ' | ' | ' | ' | ' | ' | 125,639 | 771,549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Stock Issued During Period, Value, Stock Options Exercised | ' | $439,451 | 2,704,909 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $153,920 | 948,559 | $285,344 | 1,756,349 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | ' | 148,400 | [2] | 148,400 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,000 | 52,000 | 96,400 | 96,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The life of options represents the period the option is expected to be outstanding. | ||||||||||||||||||||||||||||
[2] | On April 22, 2014, the Chief Executive Office and Chief Technology Officer of the Company exercised their stock options to purchased 52,000 shares of the Companybs common stock for RMB 948,559 ($153,920). The transaction was completed on May 13, 2014. On June 30, 2014, other employees exercised their stock options to purchased 96,400 shares of the Companybs common stock for RMB 1,756,349 ($285,344). |
INCOME_TAX_Details
INCOME TAX (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | |
Income Taxes [Line Items] | ' | ' | ' |
Allowance for doubtful receivables | $196,575 | 1,209,961 | 1,006,721 |
Total deferred income tax assets | 196,575 | 1,209,961 | 1,006,721 |
Temporary difference - accounts payable | 29,274 | 180,186 | 0 |
Total deferred income tax liability | $29,274 | 180,186 | 0 |
INCOME_TAX_Details_1
INCOME TAX (Details 1) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | |
Income Taxes [Line Items] | ' | ' | ' |
Income tax calculated at statutory rates | $499,300 | 3,073,289 | 1,685,433 |
Nondeductible expenses (non-taxable income) | 18,691 | 115,054 | -187,280 |
Benefit of favorable rate for high-technology companies | -199,720 | -1,229,316 | -116,334 |
Benefit of revenue exempted from enterprise income tax | -129,102 | -794,651 | -1,207,316 |
Deferred income taxes provision | 0 | 0 | 12,288 |
Deferred income tax (benefit) | -33,019 | -203,240 | 100,080 |
Provision for income tax | $156,150 | 961,136 | 286,871 |
INCOME_TAX_Details_2
INCOME TAX (Details 2) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | |
Income Taxes [Line Items] | ' | ' | ' |
Current income tax provision | $189,169 | 1,164,376 | 186,791 |
Deferred income taxes provision (benefit) | -33,019 | -203,240 | 100,080 |
Provision for income tax | $156,150 | 961,136 | 286,871 |
INCOME_TAX_Details_Textual
INCOME TAX (Details Textual) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2008 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2009 | |
Nanjing Recon Technology Co Ltd [Member] | Nanjing Recon Technology Co Ltd [Member] | Beijing Bhd Petroleum Technology Co Ltd [Member] | ||
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% | 15.00% | 15.00% | 15.00% |
NONCONTROLLING_INTEREST_Detail
NON-CONTROLLING INTEREST (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | BHD [Member] | BHD [Member] | Nanjing Recon [Member] | Nanjing Recon [Member] | |
USD ($) | CNY | USD ($) | CNY | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | ||||
CNY | CNY | CNY | CNY | ||||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Paid-in capital | $13,494,453 | 83,061,058 | 69,516,447 | $300,721 | 1,851,000 | $299,118 | 1,851,000 | 1,651,000 | 1,651,000 | 200,000 | 200,000 |
Unappropriated retained earnings | 1,369,810 | 8,431,453 | 8,749,963 | 1,040,291 | 6,403,200 | 869,812 | 5,382,568 | 3,152,687 | 2,717,231 | 3,250,513 | 2,665,337 |
Accumulated other comprehensive loss | -45,374 | -279,275 | -293,201 | -4,664 | -28,721 | -5,265 | -32,577 | -16,863 | -18,793 | -11,853 | -13,784 |
Total non-controlling interest | $1,336,348 | 8,225,479 | 7,200,991 | $1,336,348 | 8,225,479 | $1,163,665 | 7,200,991 | 4,786,824 | 4,349,438 | 3,438,660 | 2,851,553 |
CONCENTRATIONS_Details_Textual
CONCENTRATIONS (Details Textual) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Two Major Supplier [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Entity Wide Revenue Major Customer Percentage | 32.46% | ' |
China National Petroleum Corporation [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Entity Wide Revenue Major Customer Percentage | 42.79% | 27.88% |
China Petroleum and Chemical Corporation Limited [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Entity Wide Revenue Major Customer Percentage | 19.63% | 45.99% |
Hebei Huanghua Xiangtong Technical Co Ltd [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Entity Wide Revenue Major Customer Percentage | ' | 21.17% |
Wuhan Xin Tian Network System Integration Co., Ltd., [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Entity Wide Revenue Major Customer Percentage | 13.36% | ' |
COMMITMENTS_AND_CONTINGENCY_De
COMMITMENTS AND CONTINGENCY (Details) | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | CNY | |
Commitment and Contingencies [Line Items] | ' | ' |
2015 | $159,215 | 980,000 |
2016 | 29,244 | 180,000 |
Total | $188,459 | 1,160,000 |
COMMITMENTS_AND_CONTINGENCY_De1
COMMITMENTS AND CONTINGENCY (Details Textual) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | CNY | |
Commitment and Contingencies [Line Items] | ' | ' |
Severance Costs | $0.20 | 1.3 |
RELATED_PARTY_TRANSACTIONS_AND2
RELATED PARTY TRANSACTIONS AND BALANCES (Details) | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | Beijing Langchen Construction Company [Member] | Beijing Langchen Construction Company [Member] | Beijing Langchen Construction Company [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Xiamen Hengda Haitian computer network Inc [Member] | Xiamen Hengda Haitian computer network Inc [Member] | Xiamen Hengda Haitian computer network Inc [Member] | Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from related parties | $1,095,017 | 6,740,047 | 9,713,209 | $103,977 | 640,000 | 0 | $760,396 | 4,680,389 | 8,815,773 | $216,758 | 1,334,188 | 897,436 | $13,886 | 85,470 | 0 |
RELATED_PARTY_TRANSACTIONS_AND3
RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | Huanghua Xiang Tong Manufacture [Member] | Huanghua Xiang Tong Manufacture [Member] | Huanghua Xiang Tong Manufacture [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | Nanjing Youkong Information Technology Co Ltd [Member] | Nanjing Youkong Information Technology Co Ltd [Member] | Nanjing Youkong Information Technology Co Ltd [Member] | |
USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase from related parties | $0 | 0 | 9,759,973 | $0 | 0 | 9,247,580 | $0 | 0 | 0 | $0 | 0 | 512,393 | $0 | 0 | 0 |
RELATED_PARTY_TRANSACTIONS_AND4
RELATED PARTY TRANSACTIONS AND BALANCES (Details Textual) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | CNY | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Nanjing Recon And Mr. Yin And His Family [Member] | BHD And Mr. Chen Guangqiang And His Family [Member] | Company And Mr. Chen Guangqiang's Family [Member] | Mr.Chen and Family [Member] | Mr.Chen and Family [Member] | Mr.Chen and Family [Member] | |
USD ($) | CNY | CNY | Monthly Payment [Member] | USD ($) | CNY | CNY | |||||||
CNY | |||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | ' | $200,000 | 1,100,000 | ' | 95,000 | ' | ' | ' | ' | ' | ' |
Accounts Payable, Related Parties, Current | ' | 0 | 3,994,718 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses Paid By Related Party | 46,200 | 284,370 | 467,499 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | ' | ' | ' | 846,070 | 5,207,728 | 5,503,279 | ' | ' | ' | ' | ' | ' | ' |
Leases From Related Parties Arrangement Term | ' | ' | ' | ' | ' | ' | ' | 'two-year lease | 'one-year lease | 'annual lease | ' | ' | ' |
Prepaid Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37,367 | 230,000 | 366,000 |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | CNY | USD ($) | CNY | CNY | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |
USD ($) | CNY | CNY | ||||||
ASSETS | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $2,939,723 | 18,094,586 | $2,006,497 | 12,350,392 | 3,533,283 | $2,278,017 | 14,021,653 | 10,341,778 |
Trade accounts receivable, net | ' | ' | ' | ' | ' | 8,291,044 | 51,033,035 | 57,393,144 |
Notes receivable | 0 | 0 | ' | 2,578,855 | ' | 0 | 0 | 2,578,855 |
Purchase advances | ' | ' | ' | ' | ' | 3,996,682 | 24,600,379 | 17,862,507 |
Other assets | ' | ' | ' | ' | ' | 5,539,670 | 34,097,774 | 29,974,454 |
Total current assets | 21,672,638 | 133,399,423 | ' | 128,710,360 | ' | 20,105,413 | 123,752,841 | 118,150,738 |
Non-current assets | ' | ' | ' | ' | ' | 2,560,130 | 15,758,115 | 1,705,940 |
Total Assets | 25,105,664 | 154,530,382 | ' | 135,472,336 | ' | 22,665,543 | 139,510,956 | 119,856,678 |
LIABILITIES | ' | ' | ' | ' | ' | ' | ' | ' |
Trade accounts payable | ' | ' | ' | ' | ' | 1,854,287 | 11,413,505 | 11,378,883 |
Taxes payable | 1,233,079 | 7,589,846 | ' | 6,754,428 | ' | 1,233,079 | 7,589,846 | 6,754,428 |
Other liabilities | ' | ' | ' | ' | ' | 3,554,507 | 21,878,699 | 24,770,161 |
Total current liabilities | 8,176,157 | 50,325,873 | ' | 46,744,926 | ' | 6,641,873 | 40,882,050 | 42,903,472 |
Total Liabilities | ' | ' | ' | ' | ' | $6,641,873 | 40,882,050 | 42,903,472 |
VARIABLE_INTEREST_ENTITIES_Det1
VARIABLE INTEREST ENTITIES (Details Textual) | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | CNY | USD ($) | CNY | Variable Interest Entity, Primary Beneficiary [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |
USD ($) | CNY | |||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' |
Revenues | $15,181,815 | 93,447,108 | ' | 76,585,729 | $15,181,815 | 93,447,108 |
Operating expenses | 4,806,769 | 29,586,623 | ' | 25,618,717 | 3,446,059 | 21,211,185 |
Other income | 152,668 | 939,699 | ' | -32,901 | 176,677 | 1,087,482 |
Net income | $296,956 | 1,827,820 | $100,653 | 619,541 | $1,841,048 | 11,332,021 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
USD ($) | CNY | CNY | |
BASIC | ' | ' | ' |
Weighted average number of common shares outstanding used in computing basic earnings per share | 4,303,955 | 4,303,955 | 3,951,811 |
Net income | $131,140 | 807,188 | 39,698 |
Earnings per share | $0.03 | 0.19 | 0.01 |
DILUTED | ' | ' | ' |
Weighted average number of common shares outstanding used in computing basic earnings per share | 4,303,955 | 4,303,955 | 3,951,811 |
Add: Assumed exercise of stock options, stock awards and warrants | 64,207 | 64,207 | 0 |
Weighted average number of common shares outstanding | 4,368,162 | 4,368,162 | 3,951,811 |
Net income | $131,140 | 807,188 | 39,698 |
Earnings per share | $0.03 | 0.18 | 0.01 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | CNY | Subsequent Event [Member] | |
USD ($) | |||
Subsequent Event [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | ' | 50,000 |
Stock Issued During Period, Value, Restricted Stock Award, Gross | $229,067 | 1,409,955 | $190,000 |
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | ' | ' | 40,625 |