Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 20, 2016 | Dec. 31, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Recon Technology, Ltd | ||
Entity Central Index Key | 1,442,620 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 5.2 | ||
Trading Symbol | RCON | ||
Entity Common Stock, Shares Outstanding | 5,980,792 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Current assets | |||
Cash | $ 273,560 | ¥ 1,817,620 | ¥ 12,344,929 |
Notes receivable | 701,377 | 4,660,177 | 4,205,530 |
Trade accounts receivable, net | 5,733,855 | 38,097,626 | 52,186,397 |
Trade accounts receivable- related parties, net | 0 | 0 | 4,769,800 |
Inventories, net | 950,144 | 6,313,070 | 10,845,007 |
Deferred tax assets | 0 | 0 | 1,742,098 |
Total current assets | 11,185,812 | 74,322,220 | 124,512,236 |
Property and equipment, net | 437,631 | 2,907,762 | 2,666,953 |
Long-term trade accounts receivable, net | 334,169 | 2,220,332 | 4,440,665 |
Long-term other receivable | 0 | 0 | 2,729,033 |
Total Assets | 11,957,612 | 79,450,314 | 134,348,887 |
Current liabilities | |||
Short-term bank loans | 0 | 0 | 7,000,000 |
Trade accounts payable | 1,134,867 | 7,540,430 | 13,627,088 |
Trade accounts payable- related parties | 0 | 0 | 3,528,705 |
Deferred revenue | 61,207 | 406,681 | 2,285,529 |
Advances from customers | 30,191 | 200,600 | 529,700 |
Accrued payroll and employees' welfare | 57,359 | 381,109 | 246,789 |
Accrued expenses | 39,334 | 261,348 | 199,166 |
Taxes payable | 113,763 | 755,880 | 1,153,216 |
Short-term borrowings | 79,767 | 530,000 | 0 |
Deferred tax liability | 27,119 | 180,186 | 180,186 |
Total current liabilities | 4,492,630 | 29,850,518 | 52,080,043 |
Equity | |||
Common stock, ($ 0.0185 U.S. dollar par value, 100,000,000 shares authorized; 5,427,946 and 5,804,005 shares issued and outstanding as of June 30, 2015 and 2016, respectively) | 111,594 | 741,467 | 697,217 |
Additional paid-in capital | 15,142,604 | 100,612,455 | 92,541,687 |
Statutory reserve | 624,432 | 4,148,929 | 4,148,929 |
Accumulated deficits | (9,618,353) | (63,907,512) | (23,024,935) |
Accumulated other comprehensive loss | (32,966) | (219,040) | (317,551) |
Total shareholders’ equity | 6,227,311 | 41,376,299 | 74,045,347 |
Non-controlling interest | 1,237,671 | 8,223,497 | 8,223,497 |
Total equity | 7,464,982 | 49,599,796 | 82,268,844 |
Total Liabilities and Equity | 11,957,612 | 79,450,314 | 134,348,887 |
All Other [Member] | |||
Current assets | |||
Other receivables, net | 3,311,111 | 22,000,112 | 18,064,568 |
Purchase advances, net | 199,163 | 1,323,305 | 18,622,538 |
Prepaid expenses | 16,602 | 110,310 | 826,314 |
Current liabilities | |||
Other payables | 447,328 | 2,972,192 | 2,103,057 |
Short-term borrowings | 79,767 | 530,000 | 0 |
Related Party [Member] | |||
Current assets | |||
Trade accounts receivable- related parties, net | 0 | 0 | 4,769,800 |
Other receivables, net | 0 | 0 | 91,021 |
Purchase advances, net | 0 | 0 | 394,034 |
Prepaid expenses | 0 | 0 | 420,000 |
Current liabilities | |||
Other payables | 553,892 | 3,680,244 | 4,309,702 |
Short-term borrowings | $ 1,947,803 | ¥ 12,941,848 | ¥ 16,916,905 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Common shares, par value (in dollars per share) | $ 0.0185 | $ 0.0185 |
Common shares, shares authorized | 100,000,000 | 100,000,000 |
Common shares, shares issued | 5,804,005 | 5,427,946 |
Common shares, shares outstanding | 5,804,005 | 5,427,946 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | 12 Months Ended | |||
Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016CNY (¥)¥ / sharesshares | Jun. 30, 2015USD ($)shares | Jun. 30, 2015CNY (¥)¥ / sharesshares | |
Revenues | ||||
Total revenues | $ 6,430,788 | ¥ 42,728,277 | ¥ 51,512,900 | |
Cost of revenues | ||||
Total cost of revenues | 5,340,101 | 35,481,394 | 41,400,727 | |
Gross profit | 1,090,687 | 7,246,883 | 10,112,173 | |
Selling and distribution expenses | 847,447 | 5,630,715 | 11,312,452 | |
General and administrative expenses | 3,039,539 | 20,195,701 | 26,894,273 | |
Provision for doubtful accounts | 2,178,560 | 14,475,074 | 3,252,868 | |
Research and development expenses | 1,031,936 | 6,856,522 | 4,168,813 | |
Operating expenses | 7,097,482 | 47,158,012 | 45,628,406 | |
Loss from operations | (6,006,795) | (39,911,129) | (35,516,233) | |
Other income (expenses) | ||||
Subsidy income | 43,509 | 289,087 | 781,457 | |
Interest income | 27,626 | 183,553 | 293,499 | |
Interest expense | (135,961) | (903,368) | (1,110,451) | |
Change in fair value of warrants liability | 0 | 0 | 4,034,272 | |
Income (loss) from foreign currency exchange | 1,139 | 7,570 | (19,190) | |
Loss from warrants redemption | 0 | 0 | (2,496,375) | |
Other income (expense) | (368) | (2,445) | 24,558 | |
Other income (expense) | (64,055) | (425,603) | 1,507,770 | |
Loss before income tax | (6,070,850) | (40,336,732) | (34,008,463) | |
Provision (benefit) for income tax | 82,152 | 545,845 | (2,552,075) | |
Net loss | (6,153,002) | (40,882,577) | $ (4,734,321) | (31,456,388) |
Comprehensive loss | ||||
Net loss | (6,153,002) | (40,882,577) | $ (4,734,321) | (31,456,388) |
Foreign currency translation adjustment | 14,826 | 98,511 | (38,276) | |
Comprehensive loss | (6,138,176) | (40,784,066) | (31,494,664) | |
Less: Comprehensive loss attributable to non-controlling interest | 0 | 0 | (1,982) | |
Comprehensive loss attributable to Recon Technology, Ltd | $ (6,138,176) | ¥ (40,784,066) | ¥ (31,492,682) | |
Loss per common share - basic (in dollar per share) | (per share) | $ (1.09) | ¥ (7.23) | ¥ (6.45) | |
Loss per common share - diluted (in dollar per share) | (per share) | $ (1.09) | ¥ (7.23) | ¥ (6.45) | |
Weighted - average shares -basic (in shares) | 5,653,149 | 5,653,149 | 4,876,504 | 4,876,504 |
Weighted - average shares -diluted (in shares) | 5,653,149 | 5,653,149 | 4,876,504 | 4,876,504 |
Hardware And Software [Member] | ||||
Revenues | ||||
Total revenues | $ 6,252,688 | ¥ 41,544,925 | ¥ 48,980,953 | |
Cost of revenues | ||||
Total cost of revenues | 5,227,459 | 34,732,965 | 41,373,566 | |
Hardware And Software [Member] | Related Party [Member] | ||||
Revenues | ||||
Total revenues | 0 | 0 | 2,428,173 | |
Cost of revenues | ||||
Total cost of revenues | 0 | 0 | 27,161 | |
Services [Member] | ||||
Revenues | ||||
Total revenues | 178,100 | 1,183,352 | 103,774 | |
Cost of revenues | ||||
Total cost of revenues | $ 112,642 | ¥ 748,429 | ¥ 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY | USD ($) | CNY (¥) | Shareholders' Equity [Member]CNY (¥) | Common Stock [Member]CNY (¥)shares | Additional Paid-in Capital [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Retained Earnings [Member]CNY (¥) | AOCI Attributable to Parent [Member]CNY (¥) | Noncontrolling Interest [Member]CNY (¥) |
Opening Balance at Jun. 30, 2014 | $ 15,683,225 | ¥ 104,204,509 | ¥ 95,979,030 | ¥ 616,865 | ¥ 83,061,058 | ¥ 4,148,929 | ¥ 8,431,453 | ¥ (279,275) | ¥ 8,225,479 |
Opening Balance (in shares) at Jun. 30, 2014 | 4,717,336 | ||||||||
Stock issuance | 360,010 | 2,392,027 | 2,392,027 | ¥ 33,497 | 2,358,530 | ||||
Stock issuance (in shares) | 297,197 | ||||||||
Restricted shares issued for services | 87,759 | 583,099 | 583,099 | ¥ 15,876 | 567,223 | ||||
Restricted shares issued for services (in shares) | 140,162 | ||||||||
Restricted shares issued to redeem warrants | 521,112 | 3,462,438 | 3,462,438 | ¥ 30,979 | 3,431,459 | ||||
Restricted shares issued to redeem warrants (in shares) | 273,251 | ||||||||
Stock based payment | 470,088 | 3,123,417 | 3,123,417 | 3,123,417 | |||||
Net loss for the year | (4,734,321) | (31,456,388) | (31,456,388) | (31,456,388) | 0 | ||||
Foreign currency translation adjustment | (6,065) | (40,258) | (38,276) | (38,276) | (1,982) | ||||
Ending Balance at Jun. 30, 2015 | 12,381,808 | 82,268,844 | 74,045,347 | ¥ 697,217 | 92,541,687 | 4,148,929 | (23,024,935) | (317,551) | 8,223,497 |
Ending Balance (in shares) at Jun. 30, 2015 | 5,427,946 | ||||||||
Stock issuance | 23,820 | 158,268 | 158,268 | ¥ 1,796 | 156,472 | 0 | |||
Stock issuance (in shares) | 15,874 | ||||||||
Restricted shares issued for services | 340,959 | 2,265,442 | 2,265,442 | ¥ 42,454 | 2,222,988 | ||||
Restricted shares issued for services (in shares) | 360,185 | ||||||||
Restricted shares issued to redeem warrants | 0 | 0 | |||||||
Stock based payment | 856,566 | 5,691,308 | 5,691,308 | 5,691,308 | |||||
Net loss for the year | (6,153,002) | (40,882,577) | (40,882,577) | (40,882,577) | |||||
Foreign currency translation adjustment | 14,831 | 98,511 | 98,511 | 98,511 | 0 | ||||
Ending Balance at Jun. 30, 2016 | $ 7,464,982 | ¥ 49,599,796 | ¥ 41,376,299 | ¥ 741,467 | ¥ 100,612,455 | ¥ 4,148,929 | ¥ (63,907,512) | ¥ (219,040) | ¥ 8,223,497 |
Ending Balance (in shares) at Jun. 30, 2016 | 5,804,005 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Cash flows from operating activities: | |||
Net loss | $ (6,153,002) | ¥ (40,882,577) | ¥ (31,456,388) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 143,744 | 955,083 | 526,046 |
Gain from disposal of equipment | (6,124) | (40,688) | (193,657) |
Provision for doubtful accounts | 2,178,560 | 14,475,074 | 3,252,868 |
Provision for slow moving inventories | 365,468 | 2,428,288 | 7,700,836 |
Share based compensation | 856,566 | 5,691,308 | 3,123,417 |
Deferred tax (benefit) provision | 262,193 | 1,742,098 | (532,136) |
Change in fair value of warrants liability | 0 | 0 | (4,034,272) |
Restricted shares issued for services | 344,266 | 2,287,415 | 1,585,462 |
Loss from warrants redemption | 0 | 0 | 2,496,375 |
Income tax benefit | 82,152 | 545,845 | (2,552,075) |
Changes in operating assets and liabilities: | |||
Notes receivable | (68,426) | (454,647) | (4,205,530) |
Trade accounts receivable | 2,206,146 | 14,658,360 | (3,245,218) |
Inventories | 179,373 | 1,191,811 | (4,209,241) |
Purchase advance, net | 742,058 | 4,930,479 | 3,271,935 |
Deferred revenue | (282,775) | (1,878,848) | (2,134,295) |
Advances from customers | (49,531) | (329,100) | (271,685) |
Accrued payroll and employees' welfare | 20,216 | 134,320 | (170,835) |
Accrued expenses | 25,960 | 172,490 | 5,291 |
Taxes payable | 118,928 | 790,199 | (1,322,818) |
Net cash used in operating activities | (42,994) | (285,674) | (15,102,337) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (27,253) | (181,075) | (2,078,204) |
Proceeds from disposal of equipment | 9,030 | 60,000 | 400,400 |
Net cash used in investing activities | (18,223) | (121,075) | (1,677,804) |
Cash flows from financing activities: | |||
Proceeds from short-term bank loans | 75,252 | 500,000 | 7,000,000 |
Repayments of short-term bank loans | (1,128,782) | (7,500,000) | (10,000,000) |
Proceeds from short-term borrowings | 79,767 | 530,000 | 0 |
Proceeds from sale of common stock, net of issuance costs | 25,874 | 171,919 | 2,392,027 |
Net cash provided by (used in) financing activities | (1,532,653) | (10,183,446) | 11,092,027 |
Effect of exchange rate fluctuation on cash and cash equivalents | 9,466 | 62,886 | (61,543) |
Net decrease in cash | (1,584,404) | (10,527,309) | (5,749,657) |
Cash at beginning of the year | 1,857,964 | 12,344,929 | 18,094,586 |
Cash at end of the year | 273,560 | 1,817,620 | 12,344,929 |
Supplemental cash flow information | |||
Cash paid during the period for interest | 135,961 | 903,368 | 1,060,529 |
Cash paid during the period for taxes | 21,443 | 142,477 | 881,794 |
Non-cash investing and financing activities | |||
Issuance of common stock to redeem warrants | 0 | 0 | 3,462,438 |
AR and short-term borrowings-related parties offset | 30,101 | 200,000 | 0 |
Inventories used for fixed assets | 154,329 | 1,025,410 | 0 |
All Other [Member] | |||
Changes in operating assets and liabilities: | |||
Other receivable, net | (267,244) | (1,775,659) | 2,481,328 |
Prepaid expense | 107,762 | 716,004 | 1,808,350 |
Trade accounts payable | (1,447,153) | (9,615,363) | 2,213,583 |
Other payables | 130,809 | 869,135 | 337,978 |
Related Party [Member] | |||
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 164,118 | 1,090,453 | 4,315,755 |
Other receivable, net | 13,699 | 91,021 | 1,323,412 |
Purchase advance, net | 206,798 | 1,374,034 | 0 |
Prepaid expense | 63,212 | 420,000 | (190,000) |
Trade accounts payable | 0 | 0 | 3,528,705 |
Other payables | 281,426 | 1,869,889 | 1,003,678 |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 1,940,813 | 12,895,400 | 18,250,000 |
Repayment of short-term borrowings | $ (2,525,577) | ¥ (16,780,765) | ¥ (6,550,000) |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization The Company, along with its wholly-owned subsidiaries, Recon Technology Co., Limited (“Recon HK”), Jining Recon Technology Ltd. (“Recon JN”), Recon Investment Ltd. (“Recon IN”) and Recon Hengda Technology (Beijing) Co., Ltd. (“Recon BJ”), conducts its business through the following PRC legal entities (“Domestic Companies”) that are consolidated as variable interest entities (“VIEs”) and operate in the Chinese oilfield equipment & service industry: 1. Beijing BHD Petroleum Technology Co., Ltd. (“BHD”), 2. Nanjing Recon Technology Co., Ltd. (“Nanjing Recon”). The Company has signed Exclusive Technical Consulting Service Agreements with each of the Domestic Companies, which are our VIEs and Equity Interest Pledge Agreements and Exclusive Equity Interest Purchase Agreements with their shareholders. Through these contractual arrangements, the Company has the ability to substantially influence each of the Domestic Companies’ daily operations and financial affairs, appoint their senior executives and approve all matters requiring shareholder approval. As a result of these contractual arrangements, which enable the Company to control the Domestic Companies, the Company is considered as the primary beneficiary of each Domestic Company. Thus, the Company is able to absorb 90% of net interest or 100% of net loss of those VIEs. On December 17, 2015, Huang Hua BHD Petroleum Equipment Manufacturing Co. LTD, a fully owned subsidiary established by BHD was organized under the laws of the PRC. Nature of Operations High-Efficiency Heating Furnaces Multi-Purpose Fissure Shaper Horizontal Multistage Fracturing Related Service Supervisory Control and Data Acquisition System (“SCADA”) |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Jun. 30, 2016 | |
Liquidity [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | Note 2. LIQUIDITY As reflected in the Company’s consolidated financial statements, the Company had recurring net losses for the years ended June 30, 2016 and 2015. In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future and its operating and capital expenditure commitments. The Company plans to fund continuing operations through identifying new prospective joint venture and strategic alliance opportunities for new revenue sources, financial supports by major shareholders and reducing costs to improve profitability and replenish working capital. Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital obligations. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 3. SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. - 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. 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, 2016 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 ¥6.6443 = US$1.00, the approximate exchange rate prevailing on June 30, 2016. 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, allowance for inventory, deferred taxes, warrants liabilities, 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. 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. It was impracticable to estimate the fair value of long-term other receivables, because this is due from the Company’s former VIE and there are no comparable markets for receivables with similar terms. The fair value of the warrants liability was determined using the Black-Scholes Model, as Level 2 inputs. 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 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 are stated at the lower of cost or market value, on a weighted average basis for BHD. Inventories is stated at the lower of cost or market value, on a first-in-first-out basis for Nanjing Recon. 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. 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 Office equipment 2 5 Leasehold improvement 5 Production equipment 10 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. 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, 2015 and 2016. 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 and software: Revenue from hardware and software sales is generally recognized when the product with the embedded software system is shipped to the customer and when there are no unfulfilled company obligations that affect the customer’s final acceptance of the arrangement. Revenue from software is recognized according to project contracts. Usually this is short term. Revenue is not recognized until completion of the contracts and receipt of acceptance. 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. 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 consolidated statements of operations when received. Grants in the form of value-added-tax refund for software products are recognized when received. 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 straightline 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 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. Basic Earnings/Loss Per Share (“EPS”) is computed by dividing net loss by the weighted average number of ordinary shares outstanding. Diluted EPS are computed by dividing net 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). The effect from options, restricted shares and warrants would have been anti-dilutive due to the fact that we incurred a net loss during the year ended June 30, 2015 and 2016. In April 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients". The amendments, among other things: (1) clarify the objective of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The effective date of these amendments is at the same date that Topic 606 is effective. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4. TRADE ACCOUNTS RECEIVABLE, NET June 30, 2015 June 30, 2016 June 30, 2016 Third Party RMB RMB U.S. Dollars Trade accounts receivable ¥ 58,049,462 ¥ 42,665,499 $ 6,421,340 Allowance for doubtful accounts (5,863,065) (4,567,873) (687,485) Total - third- party, net ¥ 52,186,397 ¥ 38,097,626 $ 5,733,855 June 30, 2015 June 30, 2016 June 30, 2016 Related Party RMB RMB U.S. Dollars Beijing Langchen Construction Company ¥ 726,800 ¥ - $ - Xiamen Huangsheng Hitek Computer Network Co. Ltd.** 980,000 - - Xiamen Henda Hitek Computer Network Co. Ltd.*** 3,063,000 - - Total - related-parties, net ¥ 4,769,800 ¥ - $ - June 30, 2015 June 30, 2016 June 30, 2016 Third Party long-term RMB RMB U.S. Dollars Beijing Yabei Nuoda Science and Technology Co. Ltd. * ¥ 4,934,072 ¥ 2,467,036 $ 371,299 Allowance for doubtful accounts (493,407) (246,704) (37,130) Total - long-term trade accounts receivable, net ¥ 4,440,665 ¥ 2,220,332 $ 334,169 *The receivable from Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed on September 2, 2015, the outstanding balance was to be collected in two years beginning in 2017, with each installment of ¥ 2,467,036 371,299 980,000 147,494 *** During the year ended June 30, 2016, the Company offset ¥ 2,699,347 406,263 2,499,347 376,162 200,000 30,101 19,421 1,650,745 248,444 June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance 6,337,051 6,356,472 956,676 Charge to expense 19,421 1,650,745 248,444 Less: write-off - (3,192,640) (480,505) Ending balance ¥ 6,356,472 ¥ 4,814,577 $ 724,615 |
OTHER RECEIVABLES, NET
OTHER RECEIVABLES, NET | 12 Months Ended |
Jun. 30, 2016 | |
Other Receivables [Abstract] | |
Other Receivables Disclosure [Text Block] | NOTE 5. OTHER RECEIVABLES, NET Third Party June 30, 2015 June 30, 2016 June 30, 2016 Current Portion RMB RMB U.S. Dollars Due from ENI (A) ¥ 2,624,071 ¥ 2,729,033 $ 410,731 Loans to third parties (B) 11,154,344 14,168,344 2,132,396 Business advance to staff (C) 3,927,238 4,952,114 745,314 Deposits for projects 543,800 893,669 134,501 Others 637,348 534,759 80,484 Allowance for doubtful accounts (822,233) (1,277,807) (192,315) Total ¥ 18,064,568 ¥ 22,000,112 $ 3,311,111 Provision for other receivables was ¥ 371,217 455,574 68,566 Third Party June 30, 2015 June 30, 2016 June 30, 2016 Non-Current Portion RMB RMB U.S. Dollars Due from ENI (A) ¥ 2,729,033 ¥ - $ - Total ¥ 2,729,033 ¥ - $ - (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 1.2 4.8 1,777,653 699,147 (B) Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners. 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. Such advances are due-on-demand and non-interest bearing. Balances have been fully collected as of June 30, 2016. June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance 451,016 822,233 123,750 Charge to expense 371,217 455,574 68,565 Ending balance ¥ 822,233 ¥ 1,277,807 $ 192,315 |
PURCHASE ADVANCES
PURCHASE ADVANCES | 12 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 6. PURCHASE ADVANCES June 30, 2015 June 30, 2016 June 30, 2016 Third Party RMB RMB U.S. Dollars Prepayment for inventory purchase ¥ 22,845,030 ¥ 17,914,552 $ 2,696,216 Allowance for doubtful accounts (4,222,492) (16,591,247) (2,497,053) Total ¥ 18,622,538 ¥ 1,323,305 $ 199,163 Provision for purchase advances were ¥ 2,862,231 12,368,755 1,861,550 June 30, 2015 June 30, 2016 June 30, 2016 Related Party RMB RMB U.S. Dollars Xiamen Huangsheng Hitek Computer Network Co. Ltd. (A) ¥ 394,034 ¥ - $ - Total - related-parties, net ¥ 394,034 ¥ - $ - One of the Founders of the Company and his family member collectively own 57 June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance 1,360,261 4,222,492 635,503 Charge to expense 2,862,231 12,368,755 1,861,550 Ending balance ¥ 4,222,492 ¥ 16,591,247 $ 2,497,053 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 7. INVENTORIES June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Small component parts ¥ 55,332 ¥ 55,726 $ 8,387 Purchased goods and raw materials 244,667 61,361 9,235 Work in process and goods on site 3,552,771 3,539,525 532,714 Finished goods 14,693,073 8,054,637 1,212,257 Allowance for slow moving inventory (7,700,836) (5,398,179) (812,449) Total inventories, net ¥ 10,845,007 ¥ 6,313,070 $ 950,144 Provisions for slow moving inventory were ¥ 7,700,836 2,428,290 365,468 June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance - 7,700,836 1,159,009 Charge to cost of sales 7,700,836 2,428,290 365,468 Less: write-off - (4,730,947) (712,028) Ending balance ¥ 7,700,836 ¥ 5,398,179 $ 812,449 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 8. PROPERTY AND EQUIPMENT, NET June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Motor vehicles ¥ 3,790,474 ¥ 3,871,567 $ 582,687 Office equipment and fixtures 797,791 828,285 124,660 Production equipment - 916,025 137,866 Total property and equipment 4,588,265 5,615,877 845,213 Less: Accumulated depreciation (1,921,312) (2,708,115) (407,582) Property and equipment, net ¥ 2,666,953 ¥ 2,907,762 $ 437,631 Depreciation expense was ¥ 526,046 955,083 143,744 |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 9. LONG-TERM INVESTMENT On April 13, 2015, BHD reached an agreement to invest RMB 80 54.05 |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 10. OTHER PAYABLES June 30, 2015 June 30, 2016 June 30, 2016 Third Party RMB RMB U.S. Dollars Consulting services ¥ 1,628,508 ¥ 1,659,505 $ 249,763 Distributors and employees 413,703 245,070 36,884 Funds collected on behalf of others - 895,022 134,705 Others 60,846 172,595 25,976 Total ¥ 2,103,057 ¥ 2,972,192 $ 447,328 June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Due to related parties (1) ¥ 2,499,347 ¥ - $ - Expenses paid by the major shareholders 1,558,738 3,144,263 473,225 Due to family member of one owner - 285,000 42,894 Due to management staff for costs incurred on behalf of Recon 251,617 250,981 37,773 Total ¥ 4,309,702 ¥ 3,680,244 $ 553,892 (1) Includes an advance from Xiamen Henda Hitek Computer Network Co. Ltd. for RMB 2,499,347 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Jun. 30, 2016 | |
Taxes Payable [Abstract] | |
Taxes Payable Disclosure [Text Block] | NOTE 11. TAXES PAYABLE June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars VAT payable ¥ 23,885 ¥ 739,260 $ 111,262 Enterprise income tax payable 1,127,131 - - Other taxes payable 2,200 16,620 2,501 Total taxes payable ¥ 1,153,216 ¥ 755,880 $ 113,763 |
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short Term Bank Loan [Text Block] | NOTE 12. SHORT-TERM BANK LOANS June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Industrial and Commercial Bank, floating interest rate at 6.12 %, due on June 19, 2016 ¥ 7,000,000 ¥ - - Total short-term bank loans ¥ 7,000,000 ¥ - $ - Interest expense for the short-term bank loan was ¥ 516,567 415,676 62,561 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE 13. SHORT-TERM BORROWINGS June 30, 2015 June 30, 2016 June 30, 2016 Short-term borrowings RMB RMB U.S. Dollars Short-term borrowing from a third party, without interest, due on August 15, 2016 ¥ - ¥ 530,000 $ 79,767 Total short-term borrowings due to third parties ¥ - ¥ 530,000 $ 79,767 June 30, 2015 June 30, 2016 June 30, 2016 Short-term borrowings RMB RMB U.S. Dollars Short-term borrowing from a Founder, 7.2% annual interest, due on October 20, 2015 ¥ 6,013,200 ¥ - $ - Short-term borrowing from a Founder, 6.06% annual interest, due on October 2, 2015 3,403,431 - - Short-term borrowing from a Founder, 5.13% annual interest, due on October 12, 2015 1,600,274 - - Short-term borrowing from a Founder's family member, no interest, due on various dates 5,700,000 - - Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co. Ltd., no interest, due on November 14, 2015 200,000 - - Short-term borrowing from a Founder, 5.75% annual interest, due on September 25, 2016* - 1,807,207 271,992 Short-term borrowing from a Founder, 5.75% annual interest, due on October 10, 2016 ** - 2,409,610 362,657 Short-term borrowing from a Founder, 5.43% annual interest, due on November 4, 2016 *** - 1,805,180 271,687 Short-term borrowing from a Founder's family member, no interest, due on December 16, 2016 - 1,500,000 225,756 Short-term borrowing from a Founder's family member, no interest, due on December 28, 2016 - 400,000 60,202 Short-term borrowing from a Founder, 5.22% annual interest, due on March 10, 2017 - 2,529,795 380,745 Short-term borrowing from a Founder, 5.22% annual interest, due on May 6, 2017 - 2,490,056 374,764 Total short-term borrowings due to related parties ¥ 16,916,905 ¥ 12,941,848 $ 1,947,803 * As of September 23, ¥ 1,800,000 17,537 2,639 ** As of September 23, 2016, the Company repaid ¥ 1,680,000 252,847 20,202 3,040 *** As of September 23, 2016, the Company repaid ¥ 540,000 81,272 8,428 1,268 Interest expense for short-term borrowings due to related parties was ¥ 593,884 487,692 73,400 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 14. SHAREHOLDERS’ EQUITY Stock offering In June 2015, the Company entered into a securities purchase agreement with certain institutional investors for the sale of 297,197 4,000 1.64 288,105 2.12 5,092 2.00 1,294,922 212,673 2,392,027 0.6 During the year ended June 30, 2016, the Company offered 15,874 158,268 23,820 Appropriated Retained Earnings 10 50 4,148,929 4,148,929 624,432 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2016 | |
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 Incentive Plan 415,000 2.96 March 26, 2022 10.06 1.49 2015 Incentive Plan 400,000 1.65 Stock price at grant date $ 1.65 Exercise price (per share) $ 1.65 Risk free rate of interest*** 1.49 % Dividend yield 0.0 % Life of option (years)** 6.5 Volatility* 297 % * Volatility is projected using the performance of the Company’s common share performances. ** The life of options represents the average 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. 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 ¥ 10.13 1.65 Stock Options Shares Weighted Average Outstanding as of June 30, 2014 415,600 $ 4.37 Granted 400,000 1.65 Forfeited - - Exercised - - Outstanding as of June 30, 2015 815,600 $ 3.04 Granted - - Forfeited - - Exercised - - Outstanding as of June 30, 2016 815,600 $ 3.04 Outstanding Options Exercisable Options Average Exercise Number Average Average Exercise Number Average $ 6.00 193,000 3.08 $ 6.00 193,000 3.08 $ 2.96 222,600 5.74 $ 2.96 148,400 5.74 $ 1.65 400,000 8.59 $ 1.65 133,333 8.59 815,600 The Share-based compensation expense recorded for stock options granted were ¥ 1,294,629 2,096,162 315,481 2.8 0.43 1.43 Restricted Shares to senior management As of June 30, 2016, the Company has granted restricted shares of common stock to senior management as follows: On December 13, 2013, the Company granted 95,181 135,181 4,207,496 688,782 2.99 On January 31, 2015, the Company granted 150,000 150,000 3,038,558 495,000 1.65 On October 18, 2015, the Company agreed to issue a total of 800,000 704,000 0.88 The Share-based compensation expense recorded for restricted shares granted were ¥ 1,828,790 3,595,146 541,085 6.1 0.90 1.88 Restricted Shares for service For the year ended June 30, 2016, the Company has granted restricted shares of common stock to consultants as follows: On July 19, 2014, the Company granted 50,000 190,000 3.8 10,000 On July 19, 2014, the Company decided to cancel 40,625 On February 2, 2015, the Company issued 24,000 43,440 1.81 On April 8, 2015, the Company granted 40,000 62,400 1.56 On November 16, 2015, the Company agreed to issue a total of 100,000 108,400 1.08 On November 19, 2015, the Company issued 260,185 247,176 0.95 Restricted stock grants Shares Non-vested as of June 30, 2014 230,362 Granted 414,000 Cancelled (10,000) Vested (180,787) Non-vested as of June 30, 2015 453,575 Granted 1,160,185 Cancelled - Vested (536,972) Non-vested as of June 30, 2016 1,076,787 Among the vested shares for the year ended June 30, 2016, 176,787 shares were not issued until July 23, 2016. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2016 | |
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 Nanjing Recon was approved as a government-certified high technology company on December 11, 2013 and is subject to a reduced income tax rate of 15 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 a reduced income tax rate of 15 June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Cayman Island and other areas ¥ (8,872,589) ¥ (14,257,066) $ (2,145,749) China (25,135,874) (26,079,666) (3,925,101) Total ¥ (34,008,463) ¥ (40,336,732) $ (6,070,850) June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Allowance for doubtful receivables ¥ 1,072,279 ¥ 1,958,120 $ 294,705 Net operating loss carry forward 669,819 1,790,615 269,495 Less: Valuation allowance - (3,748,735) (564,200) Total deferred income tax assets ¥ 1,742,098 ¥ - $ - Deferred tax liability is comprised of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Income tax cost due to unpayable accounts ¥ 180,186 ¥ 180,186 $ 27,119 Total deferred income tax liability ¥ 180,186 ¥ 180,186 $ 27,119 For the year ended For the year ended For the year ended RMB RMB U.S. Dollars Income tax calculated at statutory rates ¥ (6,108,744) ¥ (6,230,384) $ (937,699) Nondeductible expenses (non-taxable income) 5,335,231 1,774,956 267,138 Benefit of favorable rate for high-technology companies 385,650 2,492,154 375,080 Benefit of revenue exempted from enterprise income tax (190,614) (43,363) (6,526) Deferred income tax 137,683 3,748,735 564,200 Over-accrued tax of prior year and others (2,111,281) (1,196,253) (180,041) Provision (benefit) for income tax ¥ (2,552,075) ¥ 545,845 $ 82,152 For the years ended June 30, 2015 2016 2016 RMB RMB U.S. Dollars Current income tax provision ¥ (2,019,938) ¥ - $ - Adjust over accrued tax of prior years - (1,196,253) (180,041) Deferred income taxes provision (benefit) (532,137) 1,742,098 262,193 Provision (benefit) for income tax ¥ (2,552,075) ¥ 545,845 $ 82,152 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Jun. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | NOTE 17. NON-CONTROLLING INTEREST Non-controlling interest consisted of the following: As of June 30, 2015 Nanjing BHD Recon Total Total RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 1,851,000 $ 304,001 Unappropriated retained earnings 3,152,687 3,250,513 6,403,200 1,051,636 Accumulated other comprehensive loss (18,850) (11,853) (30,703) (5,043) Total non-controlling interest ¥ 4,784,837 ¥ 3,438,660 ¥ 8,223,497 $ 1,350,594 As of June 30, 2016 Nanjing BHD Recon Total Total RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 1,851,000 $ 278,583 Unappropriated retained earnings 3,152,687 3,250,513 6,403,200 963,709 Accumulated other comprehensive loss (18,850) (11,853) (30,703) (4,621) Total non-controlling interest ¥ 4,784,837 ¥ 3,438,660 ¥ 8,223,497 $ 1,237,671 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 18. CONCENTRATIONS For the years ended June 30, 2015 and 2016, the two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical Corporation Limited (“SINOPEC”), represented approximately 43.09 6.82 75.36 8.85 49 |
COMMITMENTS AND CONTINGENCY
COMMITMENTS AND CONTINGENCY | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 19. COMMITMENTS AND CONTINGENCY (a) Office Leases Twelve months ending June 30, Office lease payment RMB U.S. Dollars 2017 ¥ 1,264,000 $ 190,237 2018 540,000 81,272 Total ¥ 1,804,000 $ 271,509 (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, 2016, the Company estimated its severance payments of approximately ¥ 1.6 0.24 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 20. RELATED PARTY TRANSACTIONS AND BALANCES For the years ended June 30, 2015 2016 2016 RMB RMB U.S. Dollars Xiamen Henda Hitek Computer Network Co. Ltd ¥ 1,676,036 ¥ - $ - Xiamen Huangsheng Hitek Computer Network Co. Ltd. 752,137 - - Revenues from related parties ¥ 2,428,173 ¥ - $ - Purchases from related parties For the years ended June 30, 2015 2016 2016 RMB RMB U.S. Dollars Huanghua Heng Da Xiang Tong Manufacture Ltd ¥ 862,782 ¥ 338,862 $ 51,000 Xiamen Huangsheng Hitek Computer Network Co. Ltd. 797,587 588,894 88,631 Purchase from related parties ¥ 1,660,369 ¥ 927,756 $ 139,631 Account payable due to related parties 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 ¥ 140 1.68 0.25 July 1, 2016 Short-term borrowings from related parties The Company borrowed ¥ 16,916,905 12,941,848 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 expenses for the Company. As of June 30, 2015 and 2016, ¥ 1,558,738 3,144,263 473,225 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disclosure Of Variable Interest Entities [Text Block] | NOTE 21. Variable Interest Entities The Company reports its VIEs’ portion of consolidated net income and stockholders’ equity as non-controlling interests in the consolidated financial statements. June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars ASSETS Current Assets Cash and cash equivalents ¥ 7,096,901 ¥ 619,430 $ 93,227 Notes receivable 4,205,530 4,660,177 701,377 Trade accounts receivable, net 56,956,197 38,097,626 5,733,855 Purchase advances 19,016,573 1,323,305 199,163 Other assets 28,792,279 25,584,030 3,850,506 Total current assets ¥ 116,067,480 ¥ 70,284,568 $ 10,578,128 Non-current assets 7,088,383 5,113,193 769,557 Total Assets ¥ 123,155,863 ¥ 75,397,761 $ 11,347,685 LIABILITIES Trade accounts payable ¥ 17,155,793 ¥ 7,540,430 $ 1,134,867 Taxes payable 1,153,216 755,881 113,763 Other liabilities 31,386,734 19,025,594 2,863,433 Total current liabilities 49,695,743 27,321,905 4,112,063 Total Liabilities ¥ 49,695,743 ¥ 27,321,905 $ 4,112,063 The financial performance of VIEs reported in the consolidated statement of operations and comprehensive income for the year ended June 30, 2016 includes revenues of ¥ 42,728,277 6,430,788 31,590,843 4,754,557 25,481,256 3,835,038 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 22. SUBSEQUENT EVENTS On July 23, 2016, the Board of the Company approved the termination of the acquisition of Qinghai Huayou Downhole Technology Co., Ltd.(“QHHY”), and, as a result, terminated the share purchase agreement and related control agreements. On July 27, 2016, the Board of the Company approved the grant of 876,000 shares valued at $ 963,600 3 On July 27, 2016, the Company approved the hiring of an independent company strategy consulting firm, by issuing 250,000 275,000 On July 26, 2016, the Company borrowed ¥ 500,000 75,252 On September 6, 2016, the Company borrowed ¥ 50,000 7,525 On September 9, 2016, the Company borrowed ¥ 968,318 145,736 |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
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 (“US GAAP”) and have been consistently applied. |
Consolidation, Policy [Policy Text Block] | Principles of 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, 2016 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 ¥6.6443 = US$1.00, the approximate exchange rate prevailing on June 30, 2016. |
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, allowance for inventory, deferred taxes, warrants liabilities, 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. It was impracticable to estimate the fair value of long-term other receivables, because this is due from the Company’s former VIE and there are no comparable markets for receivables with similar terms. The fair value of the warrants liability was determined using the Black-Scholes Model, as Level 2 inputs. |
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 is stated at the lower of cost or market value, on a first-in-first-out basis for Nanjing Recon. 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. |
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 Office equipment 2 5 Leasehold improvement 5 Production equipment 10 |
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, 2015 and 2016. |
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 and software: Revenue from hardware and software sales is generally recognized when the product with the embedded software system is shipped to the customer and when there are no unfulfilled company obligations that affect the customer’s final acceptance of the arrangement. Revenue from software is recognized according to project contracts. Usually this is short term. Revenue is not recognized until completion of the contracts and receipt of acceptance. 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 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 straightline 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. |
Earnings Per Share, Policy [Policy Text Block] | Loss per Share Basic Earnings/Loss Per Share (“EPS”) is computed by dividing net loss by the weighted average number of ordinary shares outstanding. Diluted EPS are computed by dividing net 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). The effect from options, restricted shares and warrants would have been anti-dilutive due to the fact that we incurred a net loss during the year ended June 30, 2015 and 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In April 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting”, The amendments rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force (EITF) meeting. Specifically, registrants should not rely on the following SEC Staff Observer comments upon adoption of Topic 606: 1) Revenue and Expense Recognition for Freight Services in Process, which is codified in paragraph 605-20-S99-2; 2) Accounting for Shipping and Handling Fees and Costs, which is codified in paragraph 605-45-S99-1; 3) Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor's Products), which is codified in paragraph 605-50-S99-1; 4) Accounting for Gas-Balancing Arrangements (i.e., use of the "entitlements method"), which is codified in paragraph 932-10-S99-5, which is effective upon adoption of ASU 2014-09. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients". The amendments, among other things: (1) clarify the objective of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption. The effective date of these amendments is at the same date that Topic 606 is effective. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule Of Accounts Receivable Third Party [Table Text Block] | Accounts receivable consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 Third Party RMB RMB U.S. Dollars Trade accounts receivable ¥ 58,049,462 ¥ 42,665,499 $ 6,421,340 Allowance for doubtful accounts (5,863,065) (4,567,873) (687,485) Total - third- party, net ¥ 52,186,397 ¥ 38,097,626 $ 5,733,855 June 30, 2015 June 30, 2016 June 30, 2016 Third Party long-term RMB RMB U.S. Dollars Beijing Yabei Nuoda Science and Technology Co. Ltd. * ¥ 4,934,072 ¥ 2,467,036 $ 371,299 Allowance for doubtful accounts (493,407) (246,704) (37,130) Total - long-term trade accounts receivable, net ¥ 4,440,665 ¥ 2,220,332 $ 334,169 *The receivable from Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed on September 2, 2015, the outstanding balance was to be collected in two years beginning in 2017, with each installment of ¥ 2,467,036 371,299 |
Schedule Of Accounts Receivable Related Party [Table Text Block] | June 30, 2015 June 30, 2016 June 30, 2016 Related Party RMB RMB U.S. Dollars Beijing Langchen Construction Company ¥ 726,800 ¥ - $ - Xiamen Huangsheng Hitek Computer Network Co. Ltd.** 980,000 - - Xiamen Henda Hitek Computer Network Co. Ltd.*** 3,063,000 - - Total - related-parties, net ¥ 4,769,800 ¥ - $ - ** During the year ended June 30, 2016, the Company offset ¥ 980,000 147,494 *** During the year ended June 30, 2016, the Company offset ¥ 2,699,347 406,263 2,499,347 376,162 200,000 30,101 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Movement of allowance for doubtful accounts is as follows: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance 6,337,051 6,356,472 956,676 Charge to expense 19,421 1,650,745 248,444 Less: write-off - (3,192,640) (480,505) Ending balance ¥ 6,356,472 ¥ 4,814,577 $ 724,615 |
OTHER RECEIVABLES, NET (Tables)
OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Receivables [Abstract] | |
Schedule Of Other Receivables [Table Text Block] | Other receivables consisted of the following: Third Party June 30, 2015 June 30, 2016 June 30, 2016 Current Portion RMB RMB U.S. Dollars Due from ENI (A) ¥ 2,624,071 ¥ 2,729,033 $ 410,731 Loans to third parties (B) 11,154,344 14,168,344 2,132,396 Business advance to staff (C) 3,927,238 4,952,114 745,314 Deposits for projects 543,800 893,669 134,501 Others 637,348 534,759 80,484 Allowance for doubtful accounts (822,233) (1,277,807) (192,315) Total ¥ 18,064,568 ¥ 22,000,112 $ 3,311,111 Provision for other receivables was ¥ 371,217 455,574 68,566 Third Party June 30, 2015 June 30, 2016 June 30, 2016 Non-Current Portion RMB RMB U.S. Dollars Due from ENI (A) ¥ 2,729,033 ¥ - $ - Total ¥ 2,729,033 ¥ - $ - (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 1.2 4.8 1,777,653 699,147 (B) Loans to third-parties are mainly used for short-term funding to support the Company’s external business partners. 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. |
Allowance For Doubtful Accounts In Other Receivables [Table Text Block] | Movement of allowance for doubtful accounts is as follows: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance 451,016 822,233 123,750 Charge to expense 371,217 455,574 68,565 Ending balance ¥ 822,233 ¥ 1,277,807 $ 192,315 |
PURCHASE ADVANCES (Tables)
PURCHASE ADVANCES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2015 June 30, 2016 June 30, 2016 Third Party RMB RMB U.S. Dollars Prepayment for inventory purchase ¥ 22,845,030 ¥ 17,914,552 $ 2,696,216 Allowance for doubtful accounts (4,222,492) (16,591,247) (2,497,053) Total ¥ 18,622,538 ¥ 1,323,305 $ 199,163 June 30, 2015 June 30, 2016 June 30, 2016 Related Party RMB RMB U.S. Dollars Xiamen Huangsheng Hitek Computer Network Co. Ltd. (A) ¥ 394,034 ¥ - $ - Total - related-parties, net ¥ 394,034 ¥ - $ - |
Allowance For Doubtful Accounts In Purchase Advance [Table Text Block] | June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance 1,360,261 4,222,492 635,503 Charge to expense 2,862,231 12,368,755 1,861,550 Ending balance ¥ 4,222,492 ¥ 16,591,247 $ 2,497,053 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Small component parts ¥ 55,332 ¥ 55,726 $ 8,387 Purchased goods and raw materials 244,667 61,361 9,235 Work in process and goods on site 3,552,771 3,539,525 532,714 Finished goods 14,693,073 8,054,637 1,212,257 Allowance for slow moving inventory (7,700,836) (5,398,179) (812,449) Total inventories, net ¥ 10,845,007 ¥ 6,313,070 $ 950,144 |
Allowance For Doubtful Inventory [Table Text Block] | June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Beginning balance - 7,700,836 1,159,009 Charge to cost of sales 7,700,836 2,428,290 365,468 Less: write-off - (4,730,947) (712,028) Ending balance ¥ 7,700,836 ¥ 5,398,179 $ 812,449 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Motor vehicles ¥ 3,790,474 ¥ 3,871,567 $ 582,687 Office equipment and fixtures 797,791 828,285 124,660 Production equipment - 916,025 137,866 Total property and equipment 4,588,265 5,615,877 845,213 Less: Accumulated depreciation (1,921,312) (2,708,115) (407,582) Property and equipment, net ¥ 2,666,953 ¥ 2,907,762 $ 437,631 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Other Payables [Table Text Block] | Other payables consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 Third Party RMB RMB U.S. Dollars Consulting services ¥ 1,628,508 ¥ 1,659,505 $ 249,763 Distributors and employees 413,703 245,070 36,884 Funds collected on behalf of others - 895,022 134,705 Others 60,846 172,595 25,976 Total ¥ 2,103,057 ¥ 2,972,192 $ 447,328 |
Schedule Of Other Payables Related Party [Table Text Block] | June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Due to related parties (1) ¥ 2,499,347 ¥ - $ - Expenses paid by the major shareholders 1,558,738 3,144,263 473,225 Due to family member of one owner - 285,000 42,894 Due to management staff for costs incurred on behalf of Recon 251,617 250,981 37,773 Total ¥ 4,309,702 ¥ 3,680,244 $ 553,892 (1) Includes an advance from Xiamen Henda Hitek Computer Network Co. Ltd. for RMB 2,499,347 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Taxes Payable [Abstract] | |
Taxes Payable [Table Text Block] | Taxes payable consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars VAT payable ¥ 23,885 ¥ 739,260 $ 111,262 Enterprise income tax payable 1,127,131 - - Other taxes payable 2,200 16,620 2,501 Total taxes payable ¥ 1,153,216 ¥ 755,880 $ 113,763 |
SHORT-TERM BANK LOANS (Tables)
SHORT-TERM BANK LOANS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Short Term Bank Loan [Table Text Block] | Short-term bank loans consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Industrial and Commercial Bank, floating interest rate at 6.12 %, due on June 19, 2016 ¥ 7,000,000 ¥ - - Total short-term bank loans ¥ 7,000,000 ¥ - $ - |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Third Party [Member] | |
Short-term Debt [Line Items] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings consisted of the following: June 30, 2015 June 30, 2016 June 30, 2016 Short-term borrowings RMB RMB U.S. Dollars Short-term borrowing from a third party, without interest, due on August 15, 2016 ¥ - ¥ 530,000 $ 79,767 Total short-term borrowings due to third parties ¥ - ¥ 530,000 $ 79,767 |
Related Party [Member] | |
Short-term Debt [Line Items] | |
Schedule of Short-term Debt [Table Text Block] | The Company repaid the short-term borrowing in full on August 8, 2016. June 30, 2015 June 30, 2016 June 30, 2016 Short-term borrowings RMB RMB U.S. Dollars Short-term borrowing from a Founder, 7.2% annual interest, due on October 20, 2015 ¥ 6,013,200 ¥ - $ - Short-term borrowing from a Founder, 6.06% annual interest, due on October 2, 2015 3,403,431 - - Short-term borrowing from a Founder, 5.13% annual interest, due on October 12, 2015 1,600,274 - - Short-term borrowing from a Founder's family member, no interest, due on various dates 5,700,000 - - Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co. Ltd., no interest, due on November 14, 2015 200,000 - - Short-term borrowing from a Founder, 5.75% annual interest, due on September 25, 2016* - 1,807,207 271,992 Short-term borrowing from a Founder, 5.75% annual interest, due on October 10, 2016 ** - 2,409,610 362,657 Short-term borrowing from a Founder, 5.43% annual interest, due on November 4, 2016 *** - 1,805,180 271,687 Short-term borrowing from a Founder's family member, no interest, due on December 16, 2016 - 1,500,000 225,756 Short-term borrowing from a Founder's family member, no interest, due on December 28, 2016 - 400,000 60,202 Short-term borrowing from a Founder, 5.22% annual interest, due on March 10, 2017 - 2,529,795 380,745 Short-term borrowing from a Founder, 5.22% annual interest, due on May 6, 2017 - 2,490,056 374,764 Total short-term borrowings due to related parties ¥ 16,916,905 ¥ 12,941,848 $ 1,947,803 * As of September 23, ¥ 1,800,000 17,537 2,639 ** As of September 23, 2016, the Company repaid ¥ 1,680,000 252,847 20,202 3,040 *** As of September 23, 2016, the Company repaid ¥ 540,000 81,272 8,428 1,268 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The options expire ten years after the date of grant, on January 31, 2025. Stock price at grant date $ 1.65 Exercise price (per share) $ 1.65 Risk free rate of interest*** 1.49 % Dividend yield 0.0 % Life of option (years)** 6.5 Volatility* 297 % * Volatility is projected using the performance of the Company’s common share performances. ** The life of options represents the average 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. |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock Options Shares Weighted Average Outstanding as of June 30, 2014 415,600 $ 4.37 Granted 400,000 1.65 Forfeited - - Exercised - - Outstanding as of June 30, 2015 815,600 $ 3.04 Granted - - Forfeited - - Exercised - - Outstanding as of June 30, 2016 815,600 $ 3.04 |
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, 2016: Outstanding Options Exercisable Options Average Exercise Number Average Average Exercise Number Average $ 6.00 193,000 3.08 $ 6.00 193,000 3.08 $ 2.96 222,600 5.74 $ 2.96 148,400 5.74 $ 1.65 400,000 8.59 $ 1.65 133,333 8.59 815,600 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Restricted stock grants Shares Non-vested as of June 30, 2014 230,362 Granted 414,000 Cancelled (10,000) Vested (180,787) Non-vested as of June 30, 2015 453,575 Granted 1,160,185 Cancelled - Vested (536,972) Non-vested as of June 30, 2016 1,076,787 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Cayman Island and other areas ¥ (8,872,589) ¥ (14,257,066) $ (2,145,749) China (25,135,874) (26,079,666) (3,925,101) Total ¥ (34,008,463) ¥ (40,336,732) $ (6,070,850) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax asset is comprised of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Allowance for doubtful receivables ¥ 1,072,279 ¥ 1,958,120 $ 294,705 Net operating loss carry forward 669,819 1,790,615 269,495 Less: Valuation allowance - (3,748,735) (564,200) Total deferred income tax assets ¥ 1,742,098 ¥ - $ - Deferred tax liability is comprised of the following: June 30, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars Income tax cost due to unpayable accounts ¥ 180,186 ¥ 180,186 $ 27,119 Total deferred income tax liability ¥ 180,186 ¥ 180,186 $ 27,119 |
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 RMB RMB U.S. Dollars Income tax calculated at statutory rates ¥ (6,108,744) ¥ (6,230,384) $ (937,699) Nondeductible expenses (non-taxable income) 5,335,231 1,774,956 267,138 Benefit of favorable rate for high-technology companies 385,650 2,492,154 375,080 Benefit of revenue exempted from enterprise income tax (190,614) (43,363) (6,526) Deferred income tax 137,683 3,748,735 564,200 Over-accrued tax of prior year and others (2,111,281) (1,196,253) (180,041) Provision (benefit) for income tax ¥ (2,552,075) ¥ 545,845 $ 82,152 |
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, 2015 2016 2016 RMB RMB U.S. Dollars Current income tax provision ¥ (2,019,938) ¥ - $ - Adjust over accrued tax of prior years - (1,196,253) (180,041) Deferred income taxes provision (benefit) (532,137) 1,742,098 262,193 Provision (benefit) for income tax ¥ (2,552,075) ¥ 545,845 $ 82,152 |
NON-CONTROLLING INTEREST(Tables
NON-CONTROLLING INTEREST(Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest [Table Text Block] | Non-controlling interest consisted of the following: As of June 30, 2015 Nanjing BHD Recon Total Total RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 1,851,000 $ 304,001 Unappropriated retained earnings 3,152,687 3,250,513 6,403,200 1,051,636 Accumulated other comprehensive loss (18,850) (11,853) (30,703) (5,043) Total non-controlling interest ¥ 4,784,837 ¥ 3,438,660 ¥ 8,223,497 $ 1,350,594 As of June 30, 2016 Nanjing BHD Recon Total Total RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 1,851,000 $ 278,583 Unappropriated retained earnings 3,152,687 3,250,513 6,403,200 963,709 Accumulated other comprehensive loss (18,850) (11,853) (30,703) (4,621) Total non-controlling interest ¥ 4,784,837 ¥ 3,438,660 ¥ 8,223,497 $ 1,237,671 |
COMMITMENTS AND CONTINGENCY (Ta
COMMITMENTS AND CONTINGENCY (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016: Twelve months ending June 30, Office lease payment RMB U.S. Dollars 2017 ¥ 1,264,000 $ 190,237 2018 540,000 81,272 Total ¥ 1,804,000 $ 271,509 |
RELATED PARTY TRANSACTIONS AN43
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Sales To Related Parties [Table Text Block] | Sales to related parties For the years ended June 30, 2015 2016 2016 RMB RMB U.S. Dollars Xiamen Henda Hitek Computer Network Co. Ltd ¥ 1,676,036 ¥ - $ - Xiamen Huangsheng Hitek Computer Network Co. Ltd. 752,137 - - Revenues from related parties ¥ 2,428,173 ¥ - $ - |
Purchases From Related Parties [Table Text Block] | Purchases from related parties For the years ended June 30, 2015 2016 2016 RMB RMB U.S. Dollars Huanghua Heng Da Xiang Tong Manufacture Ltd ¥ 862,782 ¥ 338,862 $ 51,000 Xiamen Huangsheng Hitek Computer Network Co. Ltd. 797,587 588,894 88,631 Purchase from related parties ¥ 1,660,369 ¥ 927,756 $ 139,631 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2015 June 30, 2016 June 30, 2016 RMB RMB U.S. Dollars ASSETS Current Assets Cash and cash equivalents ¥ 7,096,901 ¥ 619,430 $ 93,227 Notes receivable 4,205,530 4,660,177 701,377 Trade accounts receivable, net 56,956,197 38,097,626 5,733,855 Purchase advances 19,016,573 1,323,305 199,163 Other assets 28,792,279 25,584,030 3,850,506 Total current assets ¥ 116,067,480 ¥ 70,284,568 $ 10,578,128 Non-current assets 7,088,383 5,113,193 769,557 Total Assets ¥ 123,155,863 ¥ 75,397,761 $ 11,347,685 LIABILITIES Trade accounts payable ¥ 17,155,793 ¥ 7,540,430 $ 1,134,867 Taxes payable 1,153,216 755,881 113,763 Other liabilities 31,386,734 19,025,594 2,863,433 Total current liabilities 49,695,743 27,321,905 4,112,063 Total Liabilities ¥ 49,695,743 ¥ 27,321,905 $ 4,112,063 |
ORGANIZATION AND NATURE OF OP45
ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) | 12 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entity, Terms of Arrangements | the Company is able to absorb 90% of net interest or 100% of net loss of those VIEs. |
SIGNIFICANT ACCOUNTING POLICI46
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Line Items] | |
Foreign Currency Transactions, Description | The translation has been made at the rate of 6.6443 = US$1.00, the approximate exchange rate prevailing on June 30, 2016. |
Motor vehicles [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Motor vehicles [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Office Equipment [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Office Equipment [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold Improvements [Member] | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Production equipment [Member] | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
TRADE ACCOUNTS RECEIVABLE, NE47
TRADE ACCOUNTS RECEIVABLE, NET (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Third Party | ||||
Total - third- party, net | $ 5,733,855 | ¥ 38,097,626 | ¥ 52,186,397 | |
Third Party [Member] | ||||
Third Party | ||||
Trade accounts receivable | 6,421,340 | 42,665,499 | 58,049,462 | |
Allowance for doubtful accounts | (687,485) | (4,567,873) | (5,863,065) | |
Total - third- party, net | 5,733,855 | 38,097,626 | 52,186,397 | |
Third Party - long-term | ||||
Allowance for doubtful accounts | (37,130) | (246,704) | (493,407) | |
Total - long-term trade accounts receivable, net | 334,169 | 2,220,332 | 4,440,665 | |
Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | ||||
Third Party - long-term | ||||
Trade accounts receivable | [1] | $ 371,299 | ¥ 2,467,036 | ¥ 4,934,072 |
[1] | The receivable from Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed on September 2, 2015, the outstanding balance was to be collected in two years beginning in 2017, with each installment of ¥2,467,036 ($371,299). During the year ended June 30, 2016, the Company received the payment on time as scheduled. |
TRADE ACCOUNTS RECEIVABLE, NE48
TRADE ACCOUNTS RECEIVABLE, NET (Details 1) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Related Party Current | ||||
Total - related-parties, net | $ 0 | ¥ 0 | ¥ 4,769,800 | |
Beijing Langchen Construction Company [Member] | ||||
Related Party Current | ||||
Trade accounts receivable | 0 | 0 | 726,800 | |
Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | ||||
Related Party Current | ||||
Trade accounts receivable | [1] | 0 | 0 | 980,000 |
Xiamen Henda Hitek Computer Network Co. Ltd. [Member] | ||||
Related Party Current | ||||
Trade accounts receivable | [2] | 0 | 0 | 3,063,000 |
Related Party [Member] | ||||
Related Party Current | ||||
Total - related-parties, net | $ 0 | ¥ 0 | ¥ 4,769,800 | |
[1] | During the year ended June 30, 2016, the Company offset ¥980,000 ($147,494) of accounts receivable and accounts payable pursuant to certain settlement agreements with Xiamen Huangsheng Hitek Computer Network Co. Ltd , a related party of the Company. | |||
[2] | During the year ended June 30, 2016, the Company offset ¥2,699,347 ($406,263) of accounts receivable with ¥2,499,347 ($376,162) of accounts payable and ¥200,000 ($30,101) pursuant to certain settlement agreements with Xiamen Henda Hitek Computer Network Co. Ltd., a related party of the Company. |
TRADE ACCOUNTS RECEIVABLE, NE49
TRADE ACCOUNTS RECEIVABLE, NET (Details 2) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Charge to expense | $ 2,178,560 | ¥ 14,475,074 | ¥ 3,252,868 |
Third Party [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 956,676 | 6,356,472 | 6,337,051 |
Charge to expense | 248,444 | 1,650,745 | 19,421 |
Less: write-off | (480,505) | (3,192,640) | 0 |
Ending balance | $ 724,615 | ¥ 4,814,577 | ¥ 6,356,472 |
TRADE ACCOUNTS RECEIVABLE, NE50
TRADE ACCOUNTS RECEIVABLE, NET (Details Textual) | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | Jun. 30, 2016CNY (¥) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Receivables Will Be Collected In Next Twelve Months | $ 371,299 | ¥ 2,467,036 | ||
Provision for Doubtful Accounts | 2,178,560 | ¥ 14,475,074 | ¥ 3,252,868 | |
Third Party [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for Doubtful Accounts | 248,444 | 1,650,745 | ¥ 19,421 | |
Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Payable Offset By Accounts Receivable | 147,494 | 980,000 | ||
Xiamen Hengda Hitek Computer Network Co Ltd [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Payable Offset By Accounts Receivable | 406,263 | 2,699,347 | ||
Accounts Payable Offset Amount | 376,162 | 2,499,347 | ||
Xiamen Hengda Hitek Computer Network Co Ltd [Member] | Third Party Settlement Agreements [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts Payable Offset By Accounts Receivable | $ 30,101 | ¥ 200,000 |
OTHER RECEIVABLES, NET (Details
OTHER RECEIVABLES, NET (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2014CNY (¥) | |
Non-Current Portion | ||||||
Due from ENI | $ 334,169 | ¥ 2,220,332 | ¥ 4,440,665 | |||
Total | 0 | 0 | 2,729,033 | |||
Third Party [Member] | ||||||
Current Portion | ||||||
Due from ENI | [1] | 410,731 | 2,729,033 | 2,624,071 | ||
Loans to third parties | [2] | 2,132,396 | 14,168,344 | 11,154,344 | ||
Business advance to staff | [3] | 745,314 | 4,952,114 | 3,927,238 | ||
Deposits for projects | 134,501 | 893,669 | 543,800 | |||
Others | 80,484 | 534,759 | 637,348 | |||
Allowance for doubtful accounts | (192,315) | (1,277,807) | $ (123,750) | (822,233) | ¥ (451,016) | |
Total | 3,311,111 | 22,000,112 | 18,064,568 | |||
Non-Current Portion | ||||||
Due from ENI | [1] | 0 | 0 | 2,729,033 | ||
Total | $ 0 | ¥ 0 | ¥ 2,729,033 | |||
[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, installments for each quarter would be ¥1,777,653. The Company received the payments on time in March and June, 2013. On September 30, 2013, ENI proposed to extend the payment period and signed a new contract with the Company. According to the new arrangement, the remaining part of this loan will be repaid over four years with quarterly installments of ¥699,147, which is due by June 30, 2017. The Company has continued to receive the payments under the agreement. | |||||
[2] | Loans to third-parties are mainly used for short-term funding to support the Company's external business partners. 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 (Detai52
OTHER RECEIVABLES, NET (Details 1) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Other Receivables [Line Items] | |||
Charge to expense | $ 68,566 | ¥ 455,574 | ¥ 371,217 |
Third Party [Member] | |||
Other Receivables [Line Items] | |||
Beginning balance | 123,750 | 822,233 | 451,016 |
Charge to expense | 68,565 | 455,574 | 371,217 |
Ending balance | $ 192,315 | ¥ 1,277,807 | ¥ 822,233 |
OTHER RECEIVABLES, NET (Detai53
OTHER RECEIVABLES, NET (Details Textual) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013CNY (¥) | Mar. 31, 2012CNY (¥) | Jan. 31, 2012 | Mar. 31, 2013CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | Dec. 31, 2012CNY (¥) | |
Other Receivables [Line Items] | ||||||||
Proceeds From Related Party Debt Repayments | ¥ 1,200,000 | ¥ 4,800,000 | ||||||
Loan On Accrued Interest Rate During Period | 4.00% | |||||||
Loans Receivable Under Installment | ¥ 699,147 | ¥ 1,777,653 | ||||||
Provision for Other Credit Losses | $ 68,566 | ¥ 455,574 | ¥ 371,217 |
PURCHASE ADVANCES (Details)
PURCHASE ADVANCES (Details) - Third Party [Member] | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2014CNY (¥) |
Purchase Advances [Line Items] | |||||
Prepayment for inventory purchase | $ 2,696,216 | ¥ 17,914,552 | ¥ 22,845,030 | ||
Allowance for doubtful accounts | (724,615) | (4,814,577) | $ (956,676) | (6,356,472) | ¥ (6,337,051) |
Total | $ 199,163 | ¥ 1,323,305 | ¥ 18,622,538 |
PURCHASE ADVANCES (Details 1)
PURCHASE ADVANCES (Details 1) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Xiamen Huangsheng Hitek Computer Network Co Ltd [Member] | |||
Related Party | |||
Advances On Inventory Purchases | $ 0 | ¥ 0 | ¥ 394,034 |
Related Party [Member] | |||
Related Party | |||
Advances On Inventory Purchases | $ 0 | ¥ 0 | ¥ 394,034 |
PURCHASE ADVANCES (Details 2)
PURCHASE ADVANCES (Details 2) - Third Party [Member] | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Beginning balance | $ 635,503 | ¥ 4,222,492 | ¥ 1,360,261 |
Charge to expense | 1,861,550 | 12,368,755 | 2,862,231 |
Ending balance | $ 2,497,053 | ¥ 16,591,247 | ¥ 4,222,492 |
PURCHASE ADVANCES (Details Text
PURCHASE ADVANCES (Details Textual) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Purchase Advances [Line Items] | |||
Provision For Advances on Purchases | $ 1,861,550 | ¥ 12,368,755 | ¥ 2,862,231 |
Xiamen Huasheng Haitian Computer Network Co Ltd [Member] | |||
Purchase Advances [Line Items] | |||
Equity Method Investment, Ownership Percentage | 57.00% | 57.00% |
INVENTORIES (Details)
INVENTORIES (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2014CNY (¥) |
Inventory [Line Items] | |||||
Small component parts | $ 8,387 | ¥ 55,726 | ¥ 55,332 | ||
Purchased goods and raw materials | 9,235 | 61,361 | 244,667 | ||
Work in process and goods on site | 532,714 | 3,539,525 | 3,552,771 | ||
Finished goods | 1,212,257 | 8,054,637 | 14,693,073 | ||
Allowance for slow moving inventory | (812,449) | (5,398,179) | $ (1,159,009) | (7,700,836) | ¥ 0 |
Total inventories, net | $ 950,144 | ¥ 6,313,070 | ¥ 10,845,007 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Beginning balance | $ 1,159,009 | ¥ 7,700,836 | ¥ 0 |
Charge to cost of sales | 365,468 | 2,428,290 | 7,700,836 |
Less: write-off | (712,028) | (4,730,947) | 0 |
Ending balance | $ 812,449 | ¥ 5,398,179 | ¥ 7,700,836 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Inventory [Line Items] | |||
Provision For Inventories | $ 365,468 | ¥ 2,428,288 | ¥ 7,700,836 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 845,213 | ¥ 5,615,877 | ¥ 4,588,265 |
Less: Accumulated depreciation | (407,582) | (2,708,115) | (1,921,312) |
Property and equipment, net | 437,631 | 2,907,762 | 2,666,953 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 582,687 | 3,871,567 | 3,790,474 |
Office equipment and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 124,660 | 828,285 | 797,791 |
Other Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 137,866 | ¥ 916,025 | ¥ 0 |
PROPERTY AND EQUIPMENT, NET (62
PROPERTY AND EQUIPMENT, NET (Details Textual) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 143,744 | ¥ 955,083 | ¥ 526,046 |
LONG-TERM INVESTMENT (Details T
LONG-TERM INVESTMENT (Details Textual) - Huanghua Heng Da Xiang Tong Manufacture Ltd [Member] ¥ in Millions | Apr. 13, 2015CNY (¥) |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investment, Ownership Percentage | 54.05% |
Equity Method Investment, Aggregate Cost | ¥ 80 |
OTHER PAYABLES (Details)
OTHER PAYABLES (Details) - Third Party [Member] | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Other Payables [Line Items] | |||
Consulting services | $ 249,763 | ¥ 1,659,505 | ¥ 1,628,508 |
Distributors and employees | 36,884 | 245,070 | 413,703 |
Funds collected on behalf of others | 134,705 | 895,022 | 0 |
Others | 25,976 | 172,595 | 60,846 |
Total | $ 447,328 | ¥ 2,972,192 | ¥ 2,103,057 |
OTHER PAYABLES (Details 1)
OTHER PAYABLES (Details 1) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Other Payables [Line Items] | ||||
Due to related parties | $ 1,947,803 | ¥ 12,941,848 | ¥ 16,916,905 | |
Related Party [Member] | ||||
Other Payables [Line Items] | ||||
Due to related parties | [1] | 0 | 0 | 2,499,347 |
Expenses paid by the major shareholders | 473,225 | 3,144,263 | 1,558,738 | |
Due to family member of one owner | 42,894 | 285,000 | 0 | |
Due to management staff for costs incurred on behalf of Recon | 37,773 | 250,981 | 251,617 | |
Total | $ 553,892 | ¥ 3,680,244 | ¥ 4,309,702 | |
[1] | Includes an advance from Xiamen Henda Hitek Computer Network Co. Ltd. for RMB 2,499,347 to supplement the Company’s working capital. The advance is payable on demand and non-interest bearing. This debt was off set with accounts receivable on September 3, 2015 (See Note 3). |
OTHER PAYABLES (Details Textual
OTHER PAYABLES (Details Textual) | Jun. 30, 2016CNY (¥) |
Xiamen Henda Hitek Computer Network Co. Ltd [Member] | |
Other Payables [Line Items] | |
Working Capital | ¥ 2,499,347 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Taxes Payable [Line Items] | |||
VAT payable | $ 111,262 | ¥ 739,260 | ¥ 23,885 |
Enterprise income tax payable | 0 | 0 | 1,127,131 |
Other taxes payable | 2,501 | 16,620 | 2,200 |
Total taxes payable | $ 113,763 | ¥ 755,880 | ¥ 1,153,216 |
SHORT-TERM BANK LOANS (Details)
SHORT-TERM BANK LOANS (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Short-term Debt [Line Items] | |||
Total short-term bank loans | $ 0 | ¥ 0 | ¥ 7,000,000 |
Industrial And Commercial Bank [Member] | |||
Short-term Debt [Line Items] | |||
Total short-term bank loans | $ 0 | ¥ 0 | ¥ 7,000,000 |
SHORT-TERM BANK LOANS (Details
SHORT-TERM BANK LOANS (Details Textual) | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | Jun. 19, 2016 | |
Short Term Bank Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Interest Expense, Debt | $ 62,561 | ¥ 415,676 | ¥ 516,567 | |
Industrial And Commercial Bank [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 6.12% |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Short-term Debt [Line Items] | |||
Short-term Debt, Total | $ 79,767 | ¥ 530,000 | ¥ 0 |
Third Party [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt, Total | $ 79,767 | ¥ 530,000 | ¥ 0 |
SHORT-TERM BORROWINGS (Details
SHORT-TERM BORROWINGS (Details 1) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | $ 1,947,803 | ¥ 12,941,848 | ¥ 16,916,905 | |
Short Term Borrowings One [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 0 | 0 | 6,013,200 | |
Short Term Borrowings Two [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 0 | 0 | 3,403,431 | |
Short Term Borrowings Three [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 0 | 0 | 1,600,274 | |
Short Term Borrowings Four [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 0 | 0 | 5,700,000 | |
Xiamen Huasheng Haitian Computer Network Co Ltd [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 0 | 0 | 200,000 | |
Short Term Borrowings Six [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 271,992 | 1,807,207 | 0 |
Short Term Borrowings Seven [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [2] | 362,657 | 2,409,610 | 0 |
Short Term Borrowing Eight [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [3] | 271,687 | 1,805,180 | 0 |
Short Term Borrowings Nine [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 225,756 | 1,500,000 | 0 | |
Short Term Borrowing Ten [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 60,202 | 400,000 | 0 | |
Short Term Borrowing Eleven [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 380,745 | 2,529,795 | 0 | |
Short Term Borrowing Twelve [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | $ 374,764 | ¥ 2,490,056 | ¥ 0 | |
[1] | As of September 23, ¥1,800,000 was paid back with an accumulated interest of ¥17,537 ($2,639). | |||
[2] | As of September 23, 2016, the Company repaid ¥1,680,000 ($252,847) with an interest of ¥20,202 ($3,040). | |||
[3] | As of September 23, 2016, the Company repaid ¥ 540,000 ($81,272) of short-term borrowing with an interest of ¥8,428($1,268). |
SHORT-TERM BORROWINGS (Detail72
SHORT-TERM BORROWINGS (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Short-term Debt [Line Items] | |||||
Interest Paid | $ 135,961 | ¥ 903,368 | ¥ 1,060,529 | ||
Short Term Borrowings [Member] | |||||
Short-term Debt [Line Items] | |||||
Interest Expense, Related Party | $ 73,400 | ¥ 487,692 | ¥ 593,884 | ||
Short Term Borrowings One [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Oct. 20, 2015 | Oct. 20, 2015 | |||
Debt Instrument, Interest Rate Percentage | 7.20% | 7.20% | |||
Short Term Borrowings Two [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Oct. 2, 2015 | Oct. 2, 2015 | |||
Debt Instrument, Interest Rate Percentage | 6.06% | 6.06% | |||
Short Term Borrowings Three [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Oct. 12, 2015 | Oct. 12, 2015 | |||
Debt Instrument, Interest Rate Percentage | 5.13% | 5.13% | |||
Xiamen Hengda Haitian Computer Network Co Ltd [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Nov. 14, 2015 | Nov. 14, 2015 | |||
Short Term Borrowings Six [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Sep. 25, 2016 | Sep. 25, 2016 | |||
Debt Instrument, Interest Rate Percentage | 5.75% | 5.75% | |||
Short Term Borrowings Six [Member] | Scenario, Forecast [Member] | |||||
Short-term Debt [Line Items] | |||||
Repayments of Related Party Debt | ¥ 1,800,000 | ||||
Interest Paid | $ 2,639 | 17,537 | |||
Short Term Borrowings Seven [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Oct. 10, 2016 | Oct. 10, 2016 | |||
Debt Instrument, Interest Rate Percentage | 5.75% | 5.75% | |||
Short Term Borrowings Seven [Member] | Scenario, Forecast [Member] | |||||
Short-term Debt [Line Items] | |||||
Repayments of Related Party Debt | 252,847 | 1,680,000 | |||
Interest Paid | 3,040 | 20,202 | |||
Short Term Borrowings Nine [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Dec. 16, 2016 | Dec. 16, 2016 | |||
Short Term Borrowings Eight [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Nov. 4, 2016 | Nov. 4, 2016 | |||
Debt Instrument, Interest Rate Percentage | 5.43% | 5.43% | |||
Short Term Borrowings Eight [Member] | Scenario, Forecast [Member] | |||||
Short-term Debt [Line Items] | |||||
Repayments of Related Party Debt | 81,272 | 540,000 | |||
Interest Paid | $ 1,268 | ¥ 8,428 | |||
Short Term Borrowing Eleven [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Mar. 10, 2017 | Mar. 10, 2017 | |||
Debt Instrument, Interest Rate Percentage | 5.22% | 5.22% | |||
Short Term Borrowing Twelve [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | May 6, 2017 | May 6, 2017 | |||
Debt Instrument, Interest Rate Percentage | 5.22% | 5.22% | |||
Short Term Borrowing Ten [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Maturity Date | Dec. 28, 2016 | Dec. 28, 2016 |
SHAREHOLDERS' EQUITY (Details T
SHAREHOLDERS' EQUITY (Details Textual) | 12 Months Ended | |||||||
Jun. 30, 2016USD ($)shares | Jun. 30, 2016CNY (¥)shares | Jun. 30, 2015USD ($)shares | Jun. 30, 2015CNY (¥)shares | Jun. 30, 2016CNY (¥) | Jun. 11, 2015$ / sharesshares | Jun. 10, 2015$ / sharesshares | Jun. 09, 2015$ / sharesshares | |
Equity [Line Items] | ||||||||
Proceeds from Issuance of Common Stock | $ 25,874 | ¥ 171,919 | ¥ 2,392,027 | |||||
Percentage Transfer Of Profit To Statutory Reserves | 10.00% | 10.00% | ||||||
Transfer Of Profit To Statutory Reserves Up to Certain Percentage Of Registered Capital | 50.00% | 50.00% | ||||||
Appropriated retained earnings | $ 624,432 | 4,148,929 | ¥ 4,148,929 | |||||
Securities Purchase Agreement [Member] | ||||||||
Equity [Line Items] | ||||||||
Sale of Stock, Price Per Share | $ / shares | $ 2 | $ 2.12 | $ 1.64 | |||||
Proceeds from Issuance of Common Stock | $ 212,673 | ¥ 1,294,922 | ||||||
Sale of Stock, Number of Shares Issued in Transaction | 297,197 | 297,197 | ||||||
Shares, Issued | 5,092 | 288,105 | 4,000 | |||||
Payments of Stock Issuance Costs | $ 600,000 | ¥ 2,392,027 | ||||||
Stock Offering [Member] | ||||||||
Equity [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 15,874 | 15,874 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - 2015 Options Plan [Member] | 12 Months Ended | |
Jun. 30, 2016$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price at grant date | $ 1.65 | |
Exercise price (per share) | $ 1.65 | |
Risk free rate of interest | 1.49% | [1] |
Dividend yield | 0.00% | |
Life of option (years) | 6 years 6 months | [2] |
Volatility | 297.00% | [3] |
[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 average period the option is expected to be outstanding. | |
[3] | Volatility is projected using the performance of the Company’s common share performances. |
STOCK-BASED COMPENSATION (Det75
STOCK-BASED COMPENSATION (Details 1) - $ / shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options, Shares, Outstanding | 815,600 | 415,600 |
Stock Options, Shares, Granted | 0 | 400,000 |
Stock Options, Shares, Forfeited | 0 | 0 |
Stock Option, Shares, Exercised | 0 | 0 |
Stock Options, Shares, Outstanding | 815,600 | 815,600 |
Stock Options, Weighted Average Exercise Price Per share, Outstanding | $ 3.04 | $ 4.37 |
Stock Options, Weighted Average Exercise Price Per share, Granted | 0 | 1.65 |
Stock Options, Weighted Average Exercise Price Per share, Forfeited | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Exercised | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Outsatnding | $ 3.04 | $ 3.04 |
STOCK-BASED COMPENSATION (Det76
STOCK-BASED COMPENSATION (Details 2) | 12 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Number (in shares) | 815,600 |
Stock Option One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Average Exercise Price | $ / shares | $ 6 |
Outstanding Options, Number (in shares) | 193,000 |
Outstanding Options, Average Remaining Contractual Life (Years) | 3 years 29 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 6 |
Exercisable Options, Number (in shares) | 193,000 |
Exercisable Options, Average Remaining Contractual Life (years) | 3 years 29 days |
Stock Option Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Average Exercise Price | $ / shares | $ 2.96 |
Outstanding Options, Number (in shares) | 222,600 |
Outstanding Options, Average Remaining Contractual Life (Years) | 5 years 8 months 26 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 2.96 |
Exercisable Options, Number (in shares) | 148,400 |
Exercisable Options, Average Remaining Contractual Life (years) | 5 years 8 months 26 days |
Stock Option Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Options, Average Exercise Price | $ / shares | $ 1.65 |
Outstanding Options, Number (in shares) | 400,000 |
Outstanding Options, Average Remaining Contractual Life (Years) | 8 years 7 months 2 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 1.65 |
Exercisable Options, Number (in shares) | 133,333 |
Exercisable Options, Average Remaining Contractual Life (years) | 8 years 7 months 2 days |
STOCK-BASED COMPENSATION (Det77
STOCK-BASED COMPENSATION (Details 3) - shares | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted - Shares | 0 | 400,000 |
Cancelled - Shares | 0 | 0 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested, Balance - Shares | 453,575 | 230,362 |
Granted - Shares | 1,160,185 | 414,000 |
Cancelled - Shares | 0 | (10,000) |
Vested - Shares | (536,972) | (180,787) |
Non-vested, Balance - Shares | 1,076,787 | 453,575 |
STOCK-BASED COMPENSATION (Det78
STOCK-BASED COMPENSATION (Details Textual) | Feb. 02, 2015USD ($)$ / sharesshares | Dec. 13, 2013USD ($)$ / sharesshares | Dec. 13, 2013CNY (¥)shares | Nov. 19, 2015USD ($)$ / sharesshares | Nov. 16, 2015USD ($)$ / sharesshares | Oct. 18, 2015USD ($)$ / sharesshares | Apr. 08, 2015USD ($)$ / sharesshares | Jan. 31, 2015USD ($)$ / sharesshares | Jan. 31, 2015CNY (¥)shares | Jan. 29, 2015shares | Jul. 19, 2014$ / sharesshares | Mar. 26, 2012¥ / shares$ / sharesshares | Mar. 26, 2012$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016CNY (¥)¥ / sharesshares | Jun. 30, 2015CNY (¥)shares | Jul. 18, 2014$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 400,000 | ||||||||||||||
Share-Based Compensation | $ 856,566 | ¥ 5,691,308 | ¥ 3,123,417 | ||||||||||||||
Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,160,185 | 1,160,185 | 414,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 190,000 | ||||||||||||||||
Stock or Unit Option Plan Expense | $ 541,085 | ¥ 3,595,146 | ¥ 1,828,790 | ||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 50,000 | ||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 3.8 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 800,000 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 10,000 | 40,625 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 536,972 | 536,972 | 180,787 | ||||||||||||||
Employees And Non Employee Director [Member] | Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 0.88 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 704,000 | ||||||||||||||||
Two Investor Firms [Member] | Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.08 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 100,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 108,400 | ||||||||||||||||
Senior Manager [Member] | Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 17 days | 1 year 10 months 17 days | |||||||||||||||
Share-Based Compensation | $ 900,000 | ¥ 6,100,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 176,787 | 176,787 | |||||||||||||||
Mr Yin Shenping [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 95,181 | 95,181 | 150,000 | 150,000 | |||||||||||||
Mr. Chen Guangqiang [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures, Total | $ 688,782 | ¥ 4,207,496 | $ 495,000 | ¥ 3,038,558 | |||||||||||||
Restricted Stock Closing Price | $ / shares | $ 2.99 | $ 1.65 | |||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 135,181 | 135,181 | 150,000 | 150,000 | |||||||||||||
Consulting firm [Member] | Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.56 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 40,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 62,400 | ||||||||||||||||
Maxim Group LLC [Member] | Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.81 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 24,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 43,440 | ||||||||||||||||
Bei Jing Tian Hong Tong Xin Technology Co. Ltd [Member] | Restricted Stock [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 0.95 | ||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 260,185 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 247,176 | ||||||||||||||||
Plan 2009 [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 415,000 | 415,000 | |||||||||||||||
Exercise price (per share) | $ / shares | $ 2.96 | $ 2.96 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | (per share) | $ 10.06 | $ 1.49 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Mar. 26, 2022 | Mar. 26, 2022 | |||||||||||||||
Stock Option [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 5 months 5 days | 1 year 5 months 5 days | |||||||||||||||
Stock or Unit Option Plan Expense | $ 315,481 | ¥ 2,096,162 | ¥ 1,294,629 | ||||||||||||||
Share-Based Compensation | $ 430,000 | ¥ 2,800,000 | |||||||||||||||
Plan 2012 [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | 20.00% | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | 5 years | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | 10 years | |||||||||||||||
Plan 2015 [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 400,000 | 400,000 | |||||||||||||||
Exercise price (per share) | $ / shares | $ 1.65 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | (per share) | $ 1.65 | ¥ 10.13 |
INCOME TAX (Details)
INCOME TAX (Details) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Income Taxes [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (2,145,749) | ¥ (14,257,066) | ¥ (8,872,589) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | (3,925,101) | (26,079,666) | (25,135,874) |
Total | $ (6,070,850) | ¥ (40,336,732) | ¥ (34,008,463) |
INCOME TAX (Details 1)
INCOME TAX (Details 1) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Income Taxes [Line Items] | |||
Allowance for doubtful receivables | $ 294,705 | ¥ 1,958,120 | ¥ 1,072,279 |
Net operating loss carry forward | 269,495 | 1,790,615 | 669,819 |
Less: Valuation allowance | (564,200) | (3,748,735) | 0 |
Total deferred income tax assets | 0 | 0 | 1,742,098 |
Income tax cost due to unpayable accounts | 27,119 | 180,186 | 180,186 |
Total deferred income tax liability | $ 27,119 | ¥ 180,186 | ¥ 180,186 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Income tax calculated at statutory rates | $ (937,699) | ¥ (6,230,384) | ¥ (6,108,744) |
Nondeductible expenses (non-taxable income) | 267,138 | 1,774,956 | 5,335,231 |
Benefit of favorable rate for high-technology companies | 375,080 | 2,492,154 | 385,650 |
Benefit of revenue exempted from enterprise income tax | (6,526) | (43,363) | (190,614) |
Deferred income tax | 564,200 | 3,748,735 | 137,683 |
Over-accrued tax of prior year and others | (180,041) | (1,196,253) | (2,111,281) |
Provision (benefit) for income tax | $ 82,152 | ¥ 545,845 | ¥ (2,552,075) |
INCOME TAX (Details 3)
INCOME TAX (Details 3) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Income Taxes [Line Items] | |||
Current income tax provision | $ 0 | ¥ 0 | ¥ (2,019,938) |
Adjust over accrued tax of prior years | (180,041) | (1,196,253) | 0 |
Deferred income taxes provision (benefit) | 262,193 | 1,742,098 | (532,137) |
Provision (benefit) for income tax | $ 82,152 | ¥ 545,845 | ¥ (2,552,075) |
INCOME TAX (Details Textual)
INCOME TAX (Details Textual) | Dec. 11, 2013 | Nov. 25, 2009 | Jan. 01, 2008 | Jun. 30, 2015 | Jun. 30, 2014 |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% | ||||
Nanjing Recon Technology Co Ltd [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 15.00% | 15.00% | 15.00% | ||
Beijing Bhd Petroleum Technology Co Ltd [Member] | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 15.00% |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) |
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | $ 15,142,604 | ¥ 100,612,455 | ¥ 92,541,687 | |
Accumulated other comprehensive loss | (32,966) | (219,040) | (317,551) | |
Total non-controlling interest | 1,237,671 | 8,223,497 | 8,223,497 | |
Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | 278,583 | 1,851,000 | $ 304,001 | 1,851,000 |
Unappropriated retained earnings | 963,709 | 6,403,200 | 1,051,636 | 6,403,200 |
Accumulated other comprehensive loss | (4,621) | (30,703) | (5,043) | (30,703) |
Total non-controlling interest | $ 1,237,671 | 8,223,497 | $ 1,350,594 | 8,223,497 |
BHD [Member] | Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | 1,651,000 | 1,651,000 | ||
Unappropriated retained earnings | 3,152,687 | 3,152,687 | ||
Accumulated other comprehensive loss | (18,850) | (18,850) | ||
Total non-controlling interest | 4,784,837 | 4,784,837 | ||
Nanjing Recon [Member] | Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | 200,000 | 200,000 | ||
Unappropriated retained earnings | 3,250,513 | 3,250,513 | ||
Accumulated other comprehensive loss | (11,853) | (11,853) | ||
Total non-controlling interest | ¥ 3,438,660 | ¥ 3,438,660 |
CONCENTRATIONS (Details Textual
CONCENTRATIONS (Details Textual) - Sales Revenue, Net [Member] | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplier Two [Member] | ||
Concentration Risk [Line Items] | ||
Entity Wide Revenue Major Customer Percentage | 49.00% | |
China National Petroleum Corporation [Member] | ||
Concentration Risk [Line Items] | ||
Entity Wide Revenue Major Customer Percentage | 6.82% | 43.09% |
China Petroleum and Chemical Corporation Limited [Member] | ||
Concentration Risk [Line Items] | ||
Entity Wide Revenue Major Customer Percentage | 8.85% | 75.36% |
COMMITMENTS AND CONTINGENCY (De
COMMITMENTS AND CONTINGENCY (Details) - Jun. 30, 2016 | USD ($) | CNY (¥) |
Commitment and Contingencies [Line Items] | ||
2,017 | $ 190,237 | ¥ 1,264,000 |
2,018 | 81,272 | 540,000 |
Total | $ 271,509 | ¥ 1,804,000 |
COMMITMENTS AND CONTINGENCY (87
COMMITMENTS AND CONTINGENCY (Details Textual) - 12 months ended Jun. 30, 2016 $ in Thousands, ¥ in Millions | USD ($) | CNY (¥) |
Commitment and Contingencies [Line Items] | ||
Severance Costs | $ 240 | ¥ 1.6 |
RELATED PARTY TRANSACTIONS AN88
RELATED PARTY TRANSACTIONS AND BALANCES (Details) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Related Party Transaction [Line Items] | |||
Revenues from related parties | $ 0 | ¥ 0 | ¥ 2,428,173 |
Xiamen Henda Hitek Computer Network Co. Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | 0 | 0 | 1,676,036 |
Xiamen Huangsheng Hitek Computer Network Co. Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | $ 0 | ¥ 0 | ¥ 752,137 |
RELATED PARTY TRANSACTIONS AN89
RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Related Party Transaction [Line Items] | |||
Purchase from related parties | $ 139,631 | ¥ 927,756 | ¥ 1,660,369 |
Huanghua Heng Da Xiang Tong Manufacture Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase from related parties | 51,000 | 338,862 | 862,782 |
Xiamen Hengda Hitek Computer Network Co. Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Purchase from related parties | $ 88,631 | ¥ 588,894 | ¥ 797,587 |
RELATED PARTY TRANSACTIONS AN90
RELATED PARTY TRANSACTIONS AND BALANCES (Details Textual) | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Expenses Paid By Related Party | $ 473,225 | ¥ 3,144,263 | ¥ 1,558,738 | |
Short-term borrowings- related parties | 79,767 | 530,000 | 0 | |
Monthly Payment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Leases, Rent Expense | 250,000 | ¥ 1,680,000 | ||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Short-term borrowings- related parties | $ 1,947,803 | ¥ 12,941,848 | ¥ 16,916,905 | |
Related Party [Member] | Monthly Payment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Leases, Rent Expense | ¥ 140,000 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Jun. 30, 2014CNY (¥) |
ASSETS | |||||
Cash and cash equivalents | $ 273,560 | ¥ 1,817,620 | $ 1,857,964 | ¥ 12,344,929 | ¥ 18,094,586 |
Notes receivable | 701,377 | 4,660,177 | 4,205,530 | ||
Trade accounts receivable, net | 5,733,855 | 38,097,626 | 52,186,397 | ||
Total current assets | 11,185,812 | 74,322,220 | 124,512,236 | ||
Total Assets | 11,957,612 | 79,450,314 | 134,348,887 | ||
LIABILITIES | |||||
Trade accounts payable | 1,134,867 | 7,540,430 | 13,627,088 | ||
Taxes payable | 113,763 | 755,880 | 1,153,216 | ||
Total current liabilities | 4,492,630 | 29,850,518 | 52,080,043 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 93,227 | 619,430 | 7,096,901 | ||
Notes receivable | 701,377 | 4,660,177 | 4,205,530 | ||
Trade accounts receivable, net | 5,733,855 | 38,097,626 | 56,956,197 | ||
Purchase advances | 199,163 | 1,323,305 | 19,016,573 | ||
Other assets | 3,850,506 | 25,584,030 | 28,792,279 | ||
Total current assets | 10,578,128 | 70,284,568 | 116,067,480 | ||
Non-current assets | 769,557 | 5,113,193 | 7,088,383 | ||
Total Assets | 11,347,685 | 75,397,761 | 123,155,863 | ||
LIABILITIES | |||||
Trade accounts payable | 1,134,867 | 7,540,430 | 17,155,793 | ||
Taxes payable | 113,763 | 755,881 | 1,153,216 | ||
Other liabilities | 2,863,433 | 19,025,594 | 31,386,734 | ||
Total current liabilities | 4,112,063 | 27,321,905 | 49,695,743 | ||
Total Liabilities | $ 4,112,063 | ¥ 27,321,905 | ¥ 49,695,743 |
VARIABLE INTEREST ENTITIES (D92
VARIABLE INTEREST ENTITIES (Details Textual) | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenues | $ 6,430,788 | ¥ 42,728,277 | ¥ 51,512,900 | |
Operating expenses | 7,097,482 | 47,158,012 | 45,628,406 | |
Net income | (6,153,002) | (40,882,577) | $ (4,734,321) | ¥ (31,456,388) |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revenues | 6,430,788 | 42,728,277 | ||
Operating expenses | 4,754,557 | 31,590,843 | ||
Net income | $ 3,835,038 | ¥ 25,481,256 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | Sep. 09, 2016USD ($) | Sep. 09, 2016CNY (¥) | Sep. 06, 2016USD ($) | Sep. 06, 2016CNY (¥) | Jul. 27, 2016USD ($)shares | Jul. 26, 2016USD ($) | Jul. 26, 2016CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) |
Subsequent Event [Line Items] | |||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 340,959 | ¥ 2,265,442 | $ 87,759 | ¥ 583,099 | |||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ | $ 963,600 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 876,000 | ||||||||||
Proceeds from Related Party Debt | $ 145,736 | ¥ 968,318 | $ 7,525 | ¥ 50,000 | $ 75,252 | ¥ 500,000 | |||||
Subsequent Event [Member] | Consultant Firm [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 250,000 | ||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 275,000 |