Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
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 | Non-accelerated Filer |
Trading Symbol | RCON |
Entity Common Stock, Shares Outstanding | 18,380,349 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Current assets | |||
Cash | ¥ 45,340,578 | $ 6,849,237 | ¥ 3,809,279 |
Notes receivable | 3,995,962 | 603,638 | 6,112,960 |
Trade accounts receivable, net | 24,254,007 | 3,663,858 | 39,425,911 |
Inventories, net | 6,758,841 | 1,021,004 | 2,627,974 |
Other receivables, net | 7,320,953 | 1,105,918 | 4,106,510 |
Purchase advances, net | 12,654,546 | 1,911,621 | 11,476,000 |
Prepaid expenses | 509,682 | 76,994 | 828,441 |
Total current assets | 100,834,569 | 15,232,270 | 68,387,075 |
Property and equipment, net | 3,171,109 | 479,034 | 2,767,970 |
Construction in progress | 11,779,784 | 1,779,477 | 0 |
Land use right, net | 1,335,126 | 201,687 | 0 |
Long-term trade accounts receivable, net | 4,212,829 | 636,398 | 0 |
Prepayments for construction in progress | 474,100 | 71,618 | 0 |
Total Assets | 121,807,517 | 18,400,484 | 71,155,045 |
Current liabilities | |||
Trade accounts payable | 8,754,347 | 1,322,449 | 8,352,870 |
Other payables | 3,170,670 | 478,969 | 3,351,900 |
Deferred revenue | 85,140 | 12,861 | 1,259,725 |
Accrued payroll and employees' welfare | 600,434 | 90,703 | 2,014,514 |
Taxes payable | 431,913 | 65,246 | 684,721 |
Short-term borrowings | 0 | 0 | 300,000 |
Total Current Liabilities | 25,991,921 | 3,926,393 | 29,445,757 |
Total Liabilities | 34,935,755 | 5,277,466 | 29,445,757 |
Commitments and Contingencies | |||
Equity | |||
Ordinary shares, ($ 0.0185 U.S. dollar par value, 100,000,000 shares authorized; 18,380,349 shares and 9,902,914 shares issued and outstanding as of June 30, 2018 and June 30, 2017, respectively) | 2,279,510 | 344,347 | 1,261,288 |
Additional paid-in capital | 207,490,280 | 31,343,890 | 123,436,043 |
Statutory reserve | 4,148,929 | 626,745 | 4,148,929 |
Accumulated deficit | (139,424,980) | (21,061,812) | (95,352,659) |
Accumulated other comprehensive gain (loss) | 1,516,093 | 229,024 | (249,156) |
Total stockholders' equity | 76,009,832 | 11,482,194 | 33,244,445 |
Non-controlling interests | 10,861,930 | 1,640,824 | 8,464,843 |
Total equity | 86,871,762 | 13,123,018 | 41,709,288 |
Total Liabilities and Equity | 121,807,517 | 18,400,484 | 71,155,045 |
Related Party [Member] | |||
Current liabilities | |||
Other payables | 3,211,457 | 485,129 | 3,314,019 |
Short-term borrowings | 9,018,065 | 1,362,287 | 10,168,008 |
Long-term borrowings - related party - current portion | 719,895 | 108,749 | 0 |
Long-term borrowings - related party | ¥ 8,943,834 | $ 1,351,073 | ¥ 0 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
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 | 18,380,349 | 9,902,914 |
Common shares, shares outstanding | 18,380,349 | 9,902,914 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | 12 Months Ended | |||||
Jun. 30, 2018CNY (¥)¥ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017CNY (¥)¥ / sharesshares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016CNY (¥)¥ / sharesshares | Jun. 30, 2016USD ($)shares | |
Revenues | ¥ 84,712,046 | $ 12,796,768 | ¥ 60,054,462 | ¥ 42,728,277 | ||
Cost of revenues and related tax | 80,561,861 | 12,169,833 | 44,090,960 | 35,481,394 | ||
Gross profit | 4,150,185 | 626,935 | 15,963,502 | 7,246,883 | ||
Selling and distribution expenses | 8,013,353 | 1,210,513 | 4,458,218 | 5,630,715 | ||
General and administrative expenses | 34,687,317 | 5,239,934 | 32,751,142 | 20,195,701 | ||
Provision for (net recovery of) doubtful accounts | (841,242) | (127,080) | 1,766,286 | 14,475,074 | ||
Research and development expenses | 3,215,653 | 485,763 | 7,599,340 | 6,856,522 | ||
Operating expenses | 45,075,081 | 6,809,130 | 46,574,986 | 47,158,012 | ||
Loss from operations | (40,924,896) | (6,182,195) | (30,611,484) | (39,911,129) | ||
Other income (expenses) | ||||||
Subsidy income | 371,650 | 56,142 | 132,791 | 289,087 | ||
Interest income | 68,028 | 10,276 | 73,990 | 183,553 | ||
Interest expense | (897,521) | (135,581) | (548,878) | (903,368) | ||
Loss from investment in unconsolidated entity | (4,037,736) | (609,948) | 0 | $ 0 | 0 | |
Foreign exchange transaction gain (loss) | (4,068) | (615) | 21,502 | 7,570 | ||
Other income (expense) | 65,539 | 9,900 | 36,178 | (2,445) | ||
Other expense, net | (4,434,108) | (669,826) | (284,417) | (425,603) | ||
Loss before income tax | (45,359,004) | (6,852,021) | (30,895,901) | (40,336,732) | ||
Income tax expenses | 16,230 | 2,452 | 307,900 | 545,845 | ||
Net loss | (45,375,234) | (6,854,473) | (31,203,801) | (4,713,708) | (40,882,577) | $ (6,175,802) |
Less: Net income (loss) attributable to non-controlling interests | (1,302,913) | (196,821) | 241,346 | 0 | ||
Net loss attributable to Recon Technology, Ltd | (44,072,321) | (6,657,652) | (31,445,147) | (40,882,577) | ||
Comprehensive loss | ||||||
Net loss | (45,375,234) | (6,854,473) | (31,203,801) | $ (4,713,708) | (40,882,577) | $ (6,175,802) |
Foreign currency translation adjustment | 1,765,249 | 266,662 | (30,116) | 98,511 | ||
Comprehensive loss | (43,609,985) | (6,587,811) | (31,233,917) | (40,784,066) | ||
Less: Comprehensive income (loss) attributable to non-controlling interests | (1,302,913) | (196,821) | 241,346 | 0 | ||
Comprehensive loss attributable to Recon Technology, Ltd | ¥ (42,307,072) | $ (6,390,990) | ¥ (31,475,263) | ¥ (40,784,066) | ||
Loss per ordinary share - basic and diluted | (per share) | ¥ (3.84) | $ (0.58) | ¥ (4.90) | ¥ (7.23) | ||
Weighted - average shares -basic and diluted | 11,483,464 | 11,483,464 | 6,417,305 | 6,417,305 | 5,653,149 | 5,653,149 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | CNY (¥) | USD ($) | Ordinary Shares [Member]CNY (¥)shares | Additional Paid-in Capital [Member]CNY (¥) | Statutory Reserves [Member]CNY (¥) | Accumulated deficit [Member]CNY (¥) | Accumulated Other Comprehensive income (loss) [Member]CNY (¥) | Non-controlling Interest [Member]CNY (¥) | Stockholders' Equity [Member]CNY (¥) |
Opening Balance at Jun. 30, 2015 | ¥ 82,268,844 | $ 12,427,690 | ¥ 697,217 | ¥ 92,541,687 | ¥ 4,148,929 | ¥ (23,024,935) | ¥ (317,551) | ¥ 8,223,497 | ¥ 74,045,347 |
Opening Balance (in shares) at Jun. 30, 2015 | 5,427,946 | ||||||||
Restricted shares issued for services | 2,265,442 | 342,222 | ¥ 42,454 | 2,222,988 | 2,265,442 | ||||
Restricted shares issued for services (in shares) | 360,185 | ||||||||
Issuance of ordinary shares, net of issuance costs | 158,268 | 23,908 | ¥ 1,796 | 156,472 | 0 | 158,268 | |||
Issuance of ordinary shares, net of issuance costs (in shares) | 15,874 | ||||||||
Stock based payment | 5,691,308 | 859,740 | 5,691,308 | 5,691,308 | |||||
Net loss for the year | (40,882,577) | (6,175,802) | (40,882,577) | (40,882,577) | |||||
Foreign currency translation adjustment | 98,511 | 14,884 | 98,511 | 98,511 | |||||
Ending Balance at Jun. 30, 2016 | 49,599,796 | 7,492,642 | ¥ 741,467 | 100,612,455 | 4,148,929 | (63,907,512) | (219,040) | 8,223,497 | 41,376,299 |
Ending Balance (in shares) at Jun. 30, 2016 | 5,804,005 | ||||||||
Restricted shares issued for services | 8,399,240 | 1,268,806 | ¥ 72,335 | 8,326,905 | 8,399,240 | ||||
Restricted shares issued for services (in shares) | 580,000 | ||||||||
Restricted shares issued for management | 12,904,723 | 1,949,413 | ¥ 447,486 | 12,457,237 | 12,904,723 | ||||
Restricted shares issued for management (in shares) | 3,518,909 | ||||||||
Stock based payment | 2,039,446 | 308,083 | 2,039,446 | 2,039,446 | |||||
Net loss for the year | (31,203,801) | (4,713,708) | (31,445,147) | 241,346 | (31,445,147) | ||||
Foreign currency translation adjustment | (30,116) | (4,549) | (30,116) | (30,116) | |||||
Ending Balance at Jun. 30, 2017 | 41,709,288 | 6,300,687 | ¥ 1,261,288 | 123,436,043 | 4,148,929 | (95,352,659) | (249,156) | 8,464,843 | 33,244,445 |
Ending Balance (in shares) at Jun. 30, 2017 | 9,902,914 | ||||||||
Capital contribution in NCI | 3,700,000 | 558,929 | 3,700,000 | ||||||
Restricted shares issued for services | 3,050,896 | 460,874 | ¥ 112,321 | 2,938,575 | 3,050,896 | ||||
Restricted shares issued for services (in shares) | 900,000 | ||||||||
Issuance of ordinary shares, net of issuance costs | 65,004,531 | 9,819,712 | ¥ 785,871 | 64,218,660 | 65,004,531 | ||||
Issuance of ordinary shares, net of issuance costs (in shares) | 6,592,500 | ||||||||
Shares issued for unpaid salary to management | 1,554,908 | 234,888 | ¥ 27,137 | 1,527,771 | 1,554,908 | ||||
Shares issued for unpaid salary to management (in shares) | 221,268 | ||||||||
Restricted shares issued for management | 14,621,838 | 2,208,804 | ¥ 92,893 | 14,528,945 | 14,621,838 | ||||
Restricted shares issued for management (in shares) | 763,667 | ||||||||
Stock based payment | 840,286 | 126,935 | 840,286 | 840,286 | |||||
Net loss for the year | (45,375,234) | (6,854,473) | (44,072,321) | (1,302,913) | (44,072,321) | ||||
Foreign currency translation adjustment | 1,765,249 | 266,662 | 1,765,249 | 1,765,249 | |||||
Ending Balance at Jun. 30, 2018 | ¥ 86,871,762 | $ 13,123,018 | ¥ 2,279,510 | ¥ 207,490,280 | ¥ 4,148,929 | ¥ (139,424,980) | ¥ 1,516,093 | ¥ 10,861,930 | ¥ 76,009,832 |
Ending Balance (in shares) at Jun. 30, 2018 | 18,380,349 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ 45,375,234 | $ 6,854,473 | ¥ 31,203,801 | ¥ 40,882,577 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 1,119,049 | 169,046 | 856,735 | 955,083 |
Gain from disposal of equipment | (78,285) | (11,826) | (35,919) | (40,688) |
Provision for (net recovery of) doubtful accounts | (841,242) | (127,080) | 1,766,286 | 14,475,074 |
Provision for slow moving inventories | 65,245 | 9,856 | 0 | 2,428,288 |
Share based compensation | 840,286 | 126,935 | 2,039,446 | 2,096,162 |
Restricted shares issued for management | 14,621,838 | 2,208,804 | 12,904,723 | 3,595,146 |
Loss from investment in unconsolidated entity | 4,037,736 | 609,948 | 0 | 0 |
Deferred tax provision | 0 | 0 | 0 | 1,742,098 |
Restricted shares issued for services | 3,050,896 | 460,874 | 8,399,240 | 2,287,415 |
Income tax benefit | 0 | 0 | 0 | (1,196,253) |
Changes in operating assets and liabilities: | ||||
Notes receivable | 2,116,998 | 319,798 | (1,452,783) | (454,647) |
Trade accounts receivable, net | 11,972,175 | 1,808,540 | (245,190) | 14,658,360 |
Inventories, net | (4,196,110) | (633,873) | 3,597,832 | 1,191,811 |
Other receivable, net | (3,241,846) | (489,720) | 17,632,104 | (1,775,659) |
Purchase advance, net | (1,241,102) | (187,483) | (10,534,132) | 4,930,479 |
Prepaid expense | 318,759 | 48,152 | (718,130) | 716,004 |
Trade accounts payable | (2,706,304) | (408,820) | 812,440 | (9,615,363) |
Other payables | (151,751) | (22,924) | (189,302) | 712,525 |
Deferred revenue | (1,174,585) | (177,435) | 853,044 | (1,878,848) |
Accrued payroll and employees' welfare | 140,828 | 21,274 | 1,633,405 | 134,320 |
Taxes payable | (269,358) | (40,690) | (78,700) | 790,199 |
Net cash provided by (used in) operating activities | (21,094,570) | (3,186,590) | 5,671,073 | (285,674) |
Cash flows from investing activities: | ||||
Investment in unconsolidated entity | (4,037,736) | (609,948) | 0 | 0 |
Purchases of property and equipment | (1,503,410) | (227,108) | (638,119) | (181,075) |
Proceeds from disposal of equipment | 32,000 | 4,834 | 51,900 | 60,000 |
Payments for land use right | (1,361,969) | (205,742) | 0 | 0 |
Payments and prepayments for construction in progress | (9,157,103) | (1,383,290) | 0 | 0 |
Net cash used in investing activities | (16,028,218) | (2,421,254) | (586,219) | (121,075) |
Cash flows from financing activities: | ||||
Proceeds from short-term bank loans | 45,000 | 6,798 | 0 | 500,000 |
Repayments of short-term bank loans | (45,000) | (6,798) | 0 | (7,500,000) |
Proceeds from short-term borrowings | 4,600,000 | 694,885 | 1,100,000 | 530,000 |
Repayments of short-term borrowings | (4,900,000) | (740,204) | (1,330,000) | 0 |
Proceeds from sale of ordinary shares, net of issuance costs | 65,004,531 | 9,819,712 | 0 | 171,919 |
Capital contribution by noncontrolling shareholders | 3,700,000 | 558,929 | 0 | 0 |
Net cash provided by (used in) financing activities | 76,888,838 | 11,614,979 | (3,076,964) | (10,183,446) |
Effect of exchange rate fluctuation on cash | 1,765,249 | 266,662 | (16,231) | 62,886 |
Net increase (decrease) in cash | 41,531,299 | 6,273,797 | 1,991,659 | (10,527,309) |
Cash at beginning of year | 3,809,279 | 575,437 | 1,817,620 | 12,344,929 |
Cash at end of year | 45,340,578 | 6,849,237 | 3,809,279 | 1,817,620 |
Supplemental cash flow information | ||||
Cash paid during the year for interest | 868,042 | 131,128 | 571,037 | 903,368 |
Cash paid (received) during the year for taxes | (22,671) | (3,425) | 284,487 | 142,477 |
Non-cash investing and financing activities | ||||
Shares issued to settle salary payable | 1,554,908 | 234,887 | 0 | 0 |
AR and short-term borrowings-related parties offset | 0 | 0 | 0 | 200,000 |
Inventories used for fixed assets | 0 | 0 | 0 | 1,025,410 |
Payable for Construction in Progress | 3,096,781 | 467,806 | 0 | 0 |
Non-cash payment for property and equipment purchase | 0 | 0 | 87,265 | 0 |
Issuance of unvested ordinary shares to senior managers | 0 | 0 | 55,685 | 0 |
Receivable for disposal of property and equipment | 81,900 | 12,372 | 0 | 0 |
Related Party [Member] | ||||
Changes in operating assets and liabilities: | ||||
Trade accounts receivable, net | 0 | 0 | 0 | 1,090,453 |
Other receivable, net | 0 | 0 | 0 | 91,021 |
Purchase advance, net | 0 | 0 | 0 | 1,374,034 |
Prepaid expense | 0 | 0 | 0 | 420,000 |
Other payables | (102,563) | (15,493) | (366,225) | 1,869,889 |
Cash flows from financing activities: | ||||
Proceeds from short-term borrowings | 20,188,318 | 3,049,687 | 13,103,718 | 12,895,400 |
Repayments of short-term borrowings | (21,332,036) | (3,222,459) | (15,950,682) | (16,780,765) |
Proceeds from long-term borrowings-related party | 10,000,000 | 1,510,620 | 0 | 0 |
Repayments of long-term borrowings-related party | ¥ (371,975) | $ (56,191) | ¥ 0 | ¥ 0 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS Organization 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 its VIEs, and Equity Interest Pledge Agreements and Exclusive Equity Interest Purchase Agreements with their shareholders. Through these contractual arrangements, the Company has the ability to substantially influence each of the Domestic Companies’ daily operations and financial affairs, appoint their senior executives and approve all matters requiring shareholder approval. As a result of these contractual arrangements, which enable the Company to control the Domestic Companies, the Company is considered as the primary beneficiary of each Domestic Company. Thus, the Company is able to absorb 90% of net interest or 100% of net loss of those VIEs. On 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. As of this report, BHD invested a total of ¥9.3 million in Gan Su BHD Environmental Technology Co., Ltd (“Gan Su BHD”). Gan Su BHD was established on May 23, 2017, with registered capital of ¥50 million. The paid in capital was ¥12,780,000 ($1,930,572) as of June 30, 2018. Based on its revised chapter dated August 11, 2017, BHD owns an interest of 51% of Gan Su BHD, which is focusing on oilfield sewage treatment and oily sludge disposal projects. As of this report, BHD invested a total of ¥2.3 million in Qing Hai BHD New Energy Technology Co., Ltd. (“ Qinghai BHD ”). Qinghai BHD was established on October 16, 2017, with registered capital of ¥50 million. The paid in capital was ¥2,450,000 ($370,102) including ¥2,250,000 ($339,889) contributed by BHD as of June 30, 2018. BHD owns an interest of 55% of Qinghai BHD , which is focusing on design and production and sales of solar energy eating furnaces. Nature of Operations |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Jun. 30, 2018 | |
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, 2017 and 2018. In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand and its ability to generate sufficient revenue sources in the future to support its operating and capital expenditure commitments. The Company plans to fund its 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 to 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, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 3. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation - Principles of Consolidation - Variable Interest Entities - Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Currency Translation Estimates and assumptions The key assumptions underlying the Company’s accounting for material arrangements and the reasonably likely material effects of resolving any uncertainties on the Company’s allowance for doubtful accounts related to purchase advances. The production of the Company’s products requires custom-made equipment from its suppliers. To ensure that it can secure the required customized equipment, the Company often needs to make full prepayment for its intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid in order to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by its client. In order to secure timely purchase delivery and to meet its product delivery schedule, the Company normally prepays for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract. After winning the bid and securing the sale contract, the Company normally needs to deliver its products approximately within one week to six months. Based on the Company’s historical experience, the Company generally is able to realize its purchase advances on the customized equipment that it orders. If the Company does not secure the sales contract after making prepayment, its seeks to negotiate with its suppliers for them either to refund the purchase advances or issue credits for the Company to purchase similar products with similar models with its future contracts. If the Company determines that its suppliers are unlikely to refund or credit for future purchases or if it is unlikely to secure projects to use those products in the foreseeable future, the Company provides a 100% allowance on the specific advances. Currently, only pre-contract cost under Purchase advance are under such rick of cancelation or rick mention above. As of June 30, 2018, the Company has approximately ¥1,508,491 ($227,876) of purchase advances that are still pending of securing sales contract bid, of which t ¥98,500 ($14,880) will not be realizable and have accordingly provided an allowance. The balance of ¥98,500 ($14,880) of such allowance remains outstanding at June 30, 2018 as it has not yet exceeded two years in aging or otherwise been deemed uncollectible. Fair Values of Financial Instruments The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable. 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. The fair value of long-term receivables is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. Trade Accounts and Other Receivables Notes Receivable Purchase Advances - Pre-Contract Costs The Company evaluates its purchase advances on a semi-annually basis. If it expects to receive its customized equipment within one year, the purchase advances are classified as current assets. If it does not expect to utilize the purchase advances within one year, the purchase advances will be classified as long-term assets. As of June 30, 2017, and 2018, the Company expected to receive its purchased advances, net of allowance, within one year. - Contract Costs - Prepayments for Others The Company has three types of purchase advances, capitalized pre-contract costs, capitalized contract costs and prepayment for others. (a) Capitalized pre-contract costs are the amounts paid to suppliers for purchases of customized equipment in anticipation of obtaining planned contracts for the Company’s sales and these advances are considered as pre-contract costs. As of June 30, 2018, approximately ¥1.5 million ($0.2 million) pre-contract costs were paid to the Company’s suppliers as compared to approximately ¥0.2 million at June 30, 2017. The change in purchase advances is mainly due to the change in the Company’s anticipation of securing new sales contacts and to secure the materials for its timely performance under such contracts. The production of the Company’s product required customized equipment from suppliers. To ensure the Company can secure the required customized equipment, the Company would need to make full prepayment for the intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by the Company’s client. To secure timely purchase delivery and to meet the product delivery schedule, the Company normally would prepay for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract. After winning the bid and the sale contract is secured, the Company normally needs to its products approximately within one week to six months. Based on historical experience, the Company is generally able to realize its purchase advances on the customized equipment that it ordered. If the Company does not secure the sales contract after making prepayment, it seeks to negotiate with its suppliers for them either to issue refund of the purchase advances or issue credits for it to purchase similar products with similar models with its future contracts. If the Company determines that its suppliers are unlikely to refund or credit for future purchases or if it is unlikely to secure projects to use those products in the foreseeable future, it provides a 100% allowance on the improbable recovery amounts. (b) Capitalized contract costs are the amounts paid to the suppliers for purchases of customized equipment to secure the Company’s executed sale contracts. As of June 30, 2018, the Company paid approximately ¥4.2 million ($0.6 million) purchase advances to the Company’s suppliers as compared to approximately ¥4.6 million at June 30, 2017. Based on the Company’s historical experience, it is generally able to realize and not reserve its purchase advances on the customized equipment that it ordered. (c) Besides, the Company also has prepayment for others business activities, such as standard raw materials, supplies and services. As of June 30, 2018, the Company prepaid approximately ¥7.4 million ($1.1 million) purchase advances to its suppliers as compared to approximately ¥7.1 million at June 30, 2017. Usually, this type of prepayments will be expensed when those products or services have been rendered or consumed. While in some rare circumstances, the prepayment may also under some uncertainties when its initial requirements change. The Company will try to negotiate with vendors to collect the fund back or make new arrangement to avoid major loss. Inventories Property and Equipment Items Useful life Motor vehicles 5-10 years Office equipment 2-5 years Production equipment 10 years Land Use Rights Long-Lived Assets Long-term investments The Company reviews its cost method investment for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investment. An impairment charge is recorded if the carrying amount of an investment exceeds its fair value and such excess is determined to be other-than temporary. The Company recorded approximately ¥4.0 million ($0.61 million) impairment loss on its cost method investment in unconsolidated entity during the year ended June 30, 2018. Revenue Recognition based on the new revenue standard, the Company should recognize revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer. A good or service is transferred when (or as) the customer obtains control of that good or service. After evaluation, the Company determined that it satisfies a performance obligation at a point in time by considering indicators of the transfer of control, which include, but are not limited to, the following: 1. The entity has a present right to payment for the asset. 2. The customer has legal title to the asset. 3. The entity has transferred physical possession of the asset. 4. The customer has the significant risks and rewards of ownership of the asset. 5. The customer has accepted the asset. The Company also performed analysis for the type of its construction arrangement. Usually the Company’s construction contract includes numerous promises to transfer goods or services to the customer. These goods and services are distinct since the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer and the Company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Therefore, each promise in the contract should be accounted separately as an individual performance obligation. The completion of each of this individual performance obligation is usually in a short-term based on explicit requirements of customers. After evaluation, the Company determined to recognize revenue of each performance obligation under the construction arrangement at a point in time, by considering indicators of the transfer of control listed above. Before adoption of ASU 606, the Company accrued all expensed and materials costs until the overall projects under the same contract are accepted but no revenue is recorded during the period. With adoption of this new recognition standard, the Company shall record contract revenue and corresponding cost accordingly under each individual performance obligation. Based on the current revenue standard, revenue is recognized when the promised good or service is delivered to the customer and the customer has the significant risks and rewards of ownership of the promised good or service. The Company has substantially conducted its evaluation of the impact of the standard and the Company does not expect the adoption of the standard will have a material impact to its consolidated revenue. However, as a result of applying the new standard, there are certain components of its type of construction arrangement where the new standard generally results in earlier recognition of revenue compared to its historical policies. The Company expects to record a net increase in opening retained earnings upon adoption resulting from the acceleration of revenue recognized under the new standard. 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. Usually this is short term in nature. Service: The Company provides services to improve system operation on separated fixed-price contracts. Revenue is recognized when service has been performed and accepted by the customer. Share-Based Compensation - Research and Development Expenses Shipping and Handling Costs - Shipping and handling cost incurred to ship products to customers are included in selling and distribution expenses. Shipping and handling expenses were ¥1,167,117, ¥752,656 and ¥1,170,358 ($176,797) for the years ended June 30, 2016, 2017 and 2018, respectively. Income Taxes The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company has no uncertain tax position as of June 30, 2018, 2017 and 2016. As of June 30, 2018, the tax years ended December 31, 2013 through December 31, 2017 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. Loss per Share - 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 the Company incurred a net loss for the years ended June 30, 2016, 2017 and 2018. Reclassification - Certain prior year amounts had been reclassified to conform to the current period presentation. These reclassifications have no effect on the results of operations and cash flows previously reported. Recently Issued Accounting Pronouncements In September 2017, the FASB issued ASU 2017-13, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842)”. The main objective of this pronouncement is to clarify the effective date of the adoption of ASC Topic 606 and ASC Topic 842 and the definition of public business entity as stipulated in ASU 2014-09 and ASU 2016-02. ASU 2014-09 provides that a public business entity adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. ASU 2016-12 requires certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company applied the new revenue standard from July 1, 2018 and adopted a modified retrospective approach upon the adoption. The Company performed an analysis on each of the Company’s revenue streams in accordance with the new revenue standard, and the Company concluded that the adoption of this new revenue standard does not have a material impact on the Company’s consolidated financial statements. Based on the current revenue standard, revenue is recognized when the promised good or service is delivered to the customer and the customer has the significant risks and rewards of ownership of the promised good or service. The time of revenue recognition of the Company is almost consistent under the old standard and new standard. However, as a result of applying the new standard, there are certain components of the Company’s type of construction arrangement where the new standard generally results in earlier recognition of revenue compared to the Company’s historical policies. The Company expects to record a net increase in opening retained earnings upon adoption resulting from the acceleration of revenue recognized under the new standard. In November 2017, the FASB issued ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), which amends certain aspects of the new revenue recognition standard. This standard will be effective for fiscal years beginning after December 15, 2018. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases,” which clarifies how to apply certain aspects of the new leases standard. This ASU addresses the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. This ASU has the same effective date and transition requirements as the new leases standard, which is effective for annual periods beginning after December 15, 2018. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which provides a new transition method and a practical expedient for separating components of a contract. This ASU is intended to reduce costs and ease the implementation of the new leasing standard for financial statement preparers. The effective date and transition requirements for the amendments related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4. TRADE ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Third Party RMB RMB U.S. Dollars Trade accounts receivable ¥ 43,691,416 ¥ 27,319,241 $ 4,126,898 Allowance for doubtful accounts (4,265,505 ) (3,065,234 ) (463,040 ) Total - third-party, net ¥ 39,425,911 ¥ 24,254,007 $ 3,663,858 June 30, 2017 June 30, 2018 June 30, 2017 Third Party – long-term RMB RMB U.S. Dollars Beijing Yabei Nuoda Science and Technology Co. Ltd. * ¥ - ¥ 4,400,000 $ 664,673 Allowance for doubtful accounts - (187,171 ) (28,275 ) Total - long-term trade accounts receivable, net ¥ - ¥ 4,212,829 $ 636,398 *The receivable from Beijing Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed in August, 2018, the outstanding balance was to be collected in five installments during the period from December 2018 to December 2020. Based on the repayment agreement, the Company expects to collect ¥1,954,978 ($295,323) before June 30, 2019, ¥3,100,000 ($468,292) before June 30, 2020 and ¥1,300,000 ($196,380) before December 31, 2020, respectively. No interest is required per the settlement agreement. Provision made for doubtful accounts of accounts receivables due from third party was ¥1,650,745 and ¥1,137,238 for the years ended June 30, 2016 and 2017, respectively, and net recovery of provision made for doubtful accounts of accounts receivables due to third party was ¥1,013,100 ($153,041) for the years ended June 30, 2018. Movement of allowance for doubtful accounts is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 4,814,577 ¥ 4,265,505 $ 644,356 Charge to (reversal of) expense 1,137,238 (1,013,100 ) (153,041 ) Less: write-off (1,686,310 ) - - Ending balance ¥ 4,265,505 ¥ 3,252,405 $ 491,315 |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Notes Receivable [Text Block] | NOTE 5. NOTES RECEIVABLE Notes receivables represented the non-interest bearing commercial bills the Company received from the customers for the purpose of collection of sales amount, which ranged from three to six months from the date of issuance. As of June 30, 2017 and 2018, notes receivable was ¥6,112,960 and ¥3,995,962 ($603,638), respectively, As of June 30, 2018, no notes receivable was guaranteed or collateralized. |
OTHER RECEIVABLES, NET
OTHER RECEIVABLES, NET | 12 Months Ended |
Jun. 30, 2018 | |
Other Receivables [Abstract] | |
Other Receivables Disclosure [Text Block] | NOTE 6. OTHER RECEIVABLES, NET Other receivables, net consisted of the following: Third Party June 30, 2017 June 30, 2018 June 30, 2018 Current Portion RMB RMB U.S. Dollars Loans to third parties (A) 1,115,720 2,640,469 398,875 Business advances to officers and staffs (B) 2,999,761 1,787,866 270,079 Deposits for projects 1,189,329 1,665,002 251,518 VAT recoverable - 1,438,949 217,370 Others 307,119 690,597 104,323 Allowance for doubtful accounts (1,505,419 ) (901,930 ) (136,247 ) Total ¥ 4,106,510 ¥ 7,320,953 $ 1,105,918 Provision for doubtful accounts of other receivables was ¥455,574, ¥247,612 and ¥109,302 ($16,511) for the years ended June 30, 2016, 2017 and 2018, respectively. (A) 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. (B) Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. Movement of allowance for doubtful accounts is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 1,277,807 ¥ 1,505,419 $ 227,412 Charge to expense 247,612 109,302 16,511 Less: write-off (20,000 ) (712,791 ) (107,676 ) Ending balance ¥ 1,505,419 ¥ 901,930 $ 136,247 |
PURCHASE ADVANCES, NET
PURCHASE ADVANCES, NET | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 7. PURCHASE ADVANCES, NET The Company purchased products and services from third parties during the normal course of business. Purchase advances, net consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Third Party RMB RMB U.S. Dollars Capitalized pre-contract costs ¥ 151,545 ¥ 1,508,491 $ 227,876 Capitalized contract costs 4,634,689 4,221,942 637,775 Prepayment for others 7,091,556 7,376,745 1,114,345 Allowance for doubtful accounts (401,790 ) (452,632 ) (68,375 ) Total ¥ 11,476,000 ¥ 12,654,546 $ 1,911,621 Provision for doubtful accounts of purchase advances were ¥12,368,755, ¥381,436 and ¥62,556 ($9,450) for the years ended June 30, 2016, 2017 and 2018, respectively. The Company recorded allowance for these advances and will continue to try to collect or get inventories delivered. These payments were advanced for certain customized equipment of the planned projects. As those projects were delayed or canceled or there is rare chance to be profitable, the Company decided to suspend those projects and recorded allowances related to advanced payments for those projects as the Company may not be able to receive those funds back. Management is still making efforts to collect partially or negotiate with venders for some other alternative solutions to minimize the Company’s loss. Movement of allowance for doubtful accounts is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 16,591,247 ¥ 401,790 $ 60,695 Charge to expense 381,436 62,556 9,450 Less: write-off (16,570,893 ) (11,714 ) (1,770 ) Ending balance ¥ 401,790 ¥ 452,632 $ 68,375 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 8. INVENTORIES Inventories consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Small component parts ¥ 55,726 ¥ 55,726 $ 8,418 Purchased goods and raw materials 51,617 59,328 8,962 Work in process and goods on site 1,842,411 5,155,215 778,758 Finished goods 4,702,883 2,888,096 436,281 Allowance for slow moving inventory (4,024,663 ) (1,399,524 ) (211,415 ) Total inventories, net ¥ 2,627,974 ¥ 6,758,841 $ 1,021,004 Provisions for slow moving inventory were ¥2,428,290, ¥Nil and ¥65,245 ($9,856) for the years ended June 30, 2016, 2017 and 2018, respectively. Movement of allowance for slow-moving inventories is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 5,398,179 ¥ 4,024,663 $ 607,974 Charge to cost of sales - 65,245 9,856 Less: write-off (1,373,516 ) (2,690,384 ) (406,415 ) Ending balance ¥ 4,024,663 ¥ 1,399,524 $ 211,415 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 9. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Motor vehicles ¥ 4,116,847 ¥ 4,456,156 $ 673,156 Office equipment and fixtures 1,139,587 1,239,914 187,304 Production equipment 916,026 1,609,500 243,134 Total property and equipment 6,172,460 7,305,570 1,103,594 Less: Accumulated depreciation (3,404,490 ) (4,134,461 ) (624,560 ) Property and equipment, net ¥ 2,767,970 ¥ 3,171,109 $ 479,034 Construction in progress ¥ - ¥ 11,779,784 $ 1,779,477 On August 4, 2017, Gan Su BHD purchased the land use right of state-owned construction land in Yumen, Gan Su, in the amount of ¥1,361,969 ($205,742). The land use right was intended to establish production line of the oily sludge disposal projects. As of June 30, 2018, the total cost incurred in the project was ¥11,779,784 ($1,779,477), based on the management’s best estimation, this project needs additional . Depreciation expenses were ¥955,083, ¥856,735 and ¥1,092,206 ($164,991) for the years ended June 30, 2016, 2017 and 2018, respectively. Gain from property and equipment disposal was ¥40,688, ¥35,919 and ¥78,285 ($11,826) for the years ended June 30, 2016, 2017 and 2018, respectively. |
LAND USE RIGHTS
LAND USE RIGHTS | 12 Months Ended |
Jun. 30, 2018 | |
Land Use Rights [Abstract] | |
Land Use Rights Description [Text Block] | NOTE 10 - LAND USE RIGHTS Land use rights as of June 30, 2018 are as following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Land use rights - 1,361,969 205,742 Less: accumulated amortization - (26,843 ) (4,055 ) Land use rights, net ¥ - ¥ 1,335,126 $ 201,687 As of June 30, 2018, no land use rights are collateralized or pledged. Amortization expenses were ¥Nil, ¥Nil and ¥26,843 ($4,055) for the years ended June 30, 2016, 2017 and 2018, respectively. The estimated future amortization expenses are as follows: Twelve months ending June 30, RMB U.S. Dollars 2019 ¥ 27,239 $ 4,115 2020 27,239 4,115 2021 27,239 4,115 2022 27,239 4,115 2023 27,239 4,115 Thereafter 1,198,931 181,112 Total ¥ 1,335,126 $ 201,687 |
INVESTMENT IN UNCONSOLIDATED EN
INVESTMENT IN UNCONSOLIDATED ENTITY | 12 Months Ended |
Jun. 30, 2018 | |
Schedule of Investments [Abstract] | |
Cost-method Investments, Description [Text Block] | NOTE 11 – INVESTMENT IN UNCONSOLIDATED ENTITY On December 15, 2017, the Company signed a subscription agreement with Future Gas Station (Beijing) Technology, Ltd (“FGS”). Established in January 2016, FGS is a service company focusing on providing new technical applications and data operations to gas stations of oil companies such as PetroChina Co., Ltd. With its DT Refuel mobile application, FGS provides solutions to gas stations to improve their operations and their customers' experience. Pursuant to the subscription agreement, Recon held 8% equity interest of FGS. As of June 30, 2018, Recon has invested ¥4,037,736 ($609,948) in FGS as terms and conditions are achieved based on mutually-agreed payment schedule. Based on the financial results of FGS for the year ended June 30, 2018, FGS was in the loss position and has accumulated deficit in equity. Based on the management's assessment, the Company does not expect to recover the investment in the near future. Therefore, the Company considered that there was other than temporary impairment and recorded a full impairment of the investment. As a result, the Company recorded ¥4,037,736 ($609,948) impairment loss during the year ended June 30, 2018. On August 21, 2018, the Company entered into a definitive investment agreement and a supplemental agreement (collectively, the “Agreement”) with FGS and the other shareholders of FGS. Following full performance under the Agreement, Recon will own 43% of FGS. As consideration for increasing its affiliates’ interest in FGS from 8% to 43%, the Company will (1) pay a total of RMB 10 million in cash to FGS in five installments and (2) issue 2,435,284 restricted shares of (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording ’s corresponding interest at the local governmental agency. If FGS does not reach certain performance goals, has the right to cancel without further payment part or all of the Restricted Shares. The Restricted Shares are also subject to lock-up period requirements that vary for each FGS shareholder, from one year to three years following issuance of the Restricted Shares. As of the date of this report, the Company has invested RMB 2 million to FGS per this Agreement for follow-up investment |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 12. OTHER PAYABLES Other payables consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Third Party RMB RMB U.S. Dollars Service ¥ 1,518,033 ¥ 1,356,676 $ 204,944 Distributors and employees 207,005 90,130 13,615 Funds collected on behalf of others 895,022 895,022 135,204 Advances from customers 130,100 157,856 23,846 Accrued expenses 193,274 411,898 62,222 Others 408,466 259,088 39,138 Total ¥ 3,351,900 ¥ 3,170,670 $ 478,969 June 30, 2017 June 30, 2018 June 30, 2018 Related Party RMB RMB U.S. Dollars Expenses paid by the major shareholders ¥ 3,062,709 ¥ 2,767,349 $ 418,041 Due to family member of the owner of BHD - 193,143 29,177 Due to management staff for costs incurred on behalf of the Company 251,310 250,965 37,911 Total ¥ 3,314,019 ¥ 3,211,457 $ 485,129 |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Jun. 30, 2018 | |
Taxes Payable [Abstract] | |
Taxes Payable Disclosure [Text Block] | NOTE 13. TAXES PAYABLE Taxes payable consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars VAT payable ¥ 632,831 ¥ 382,361 $ 57,760 Income tax payable 43,556 43,556 6,580 Other taxes payable 8,334 5,996 906 Total taxes payable ¥ 684,721 ¥ 431,913 $ 65,246 |
SHORT-TERM BORROWINGS DUE TO RE
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE 14. SHORT-TERM BORROWINGS DUE TO RELATED PARTIES Short-term borrowings due to related parties consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Short-term borrowings due to related parties: RMB RMB U.S. Dollars Short-term borrowing from a Founder, 5.655% annual interest, due on August 24, 2017 ¥ 62,692 ¥ - $ - Short-term borrowing from a Founder, 5.655% annual interest, due on August 31, 2017 1,260,165 - - Short-term borrowing from a Founder, 5.655% annual interest, due on August 31, 2017 1,420,223 - - Short-term borrowing from a Founder, 5.655% annual interest, due on September 11, 2017 722,262 - - Short-term borrowing from a Founder, 5.655% annual interest, due on September 16, 2017 541,187 - - Short-term borrowing from a Founder, 5.655% annual interest, due on September 18, 2017 804,530 - - Short-term borrowing from a Founder's family member, no interest, due on December 31, 2017 350,000 - - Short-term borrowing from a Founder, 5.22% annual interest, due on May 10, 2018 2,529,428 - - Short-term borrowing from a Founder, 5.22% annual interest, due on June 7, 2018 2,477,521 - - Short-term borrowing from a Founder, 5.655% annual interest, due on December 15, 2018 - 5,011,782 757,090 Short-term borrowing from a Founder, 5.655% annual interest, due on March 21, 2019 - 4,006,283 605,197 Total short-term borrowings due to related parties ¥ 10,168,008 ¥ 9,018,065 $ 1,362,287 No short-term borrowings due to related parties were guaranteed or collateralized at June 30, 2017 and 2018. Interest expense for short-term borrowings due to related parties was ¥ 487,692 548,878 325,185 49,123 * The Company repaid the loan in full on maturity date. |
LONG-TERM BORROWINGS DUE TO REL
LONG-TERM BORROWINGS DUE TO RELATED PARTY | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 15. LONG-TERM BORROWINGS DUE TO RELATED PARTY Long-term borrowings due to related party consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Long-term borrowings due to related party: RMB RMB U.S. Dollars Long-term borrowing from a Founder, monthly payments of ¥ 126,135 8.90 ten years loan ¥ - ¥ 9,663,729 ¥ 1,459,822 Less: current portion - (719,895 ) (108,749 ) Total long-term borrowings due to related party ¥ - ¥ 8,943,834 $ 1,351,073 No short-term borrowings due to related parties were guaranteed or collateralized at June 30, 2017 and 2018. Interest expense for long-term borrowings due to related party was ¥Nil, ¥Nil and ¥ 546,676 82,582 The future maturities of long-term borrowings due to related party at June 30, 2018 are as follows: Twelve months ending June 30, RMB U.S. Dollars 2019 ¥ 719,895 $ 108,749 2020 747,630 112,938 2021 816,952 123,410 2022 892,701 134,853 2023 975,474 147,357 Thereafter 5,511,077 832,515 Total ¥ 9,663,729 $ 1,459,822 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 16. ORDINARY SHARES Stock offering On November 20, 2017, the Company entered into a securities purchase agreement (the “Agreement”) with Yongquan Bi (“Mr. Bi.”), currently acting as the Chairman of board of the Company, pursuant to which Mr. Bi agreed to purchase an aggregate of 3 million unregistered restricted shares for gross proceeds of $4.8 million, a per-share purchase price of $1.60. After deducting the placement agent’s commission and other estimated offering expenses payable by the Company, the net proceeds to the Company were approximately $4.5 million. The purchase price was paid in two installments of $2.4 million each. The first installment was paid on November 20, 2017, and the second installment was paid on January 19, 2018. Mr. Bi used his own personal funds to pay the purchase price amount. Mr. Bi designated Xinhaixin International Holdings Limited (“Xinhaixin”) to receive the shares. On January 19, 2018, the Company issued the 3 million shares to Xinhaixin, the wholly owned company of Mr. Bi. On January 22, 2018, The Company and certain institutional investors entered into a securities purchase agreement in connection with an offering, pursuant to which the Company agreed to sell an aggregate of 3,592,500 ordinary shares. The purchase price was $1.66 per ordinary share and all shares were issued on January 24, 2018. The aggregate gross proceeds was $5,963,550. After deducting the placement agent’s commission and other estimated offering expenses payable by the Company, the net proceeds to the Company were approximately $5.3 million. The Company intends to use the net proceeds of the offering for general corporate purposes and working capital. On November 11, 2017, The Company issued 221,268 shares for unpaid management’s salary of ¥1,554,908 ($234,888) based on the stock closing price of $1.06 on the same day. Appropriated Retained Earnings |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 17. STOCK-BASED COMPENSATION Stock-Based Awards Plan 2015 Incentive Plan The following is a summary of the stock options activity: Stock Options Shares Weighted Average Exercise Price Per Share Outstanding as of June 30, 2016 815,600 $ 3.04 Granted - - Forfeited - - Exercised - - Outstanding as of June 30, 2017 815,600 $ 3.04 Granted - - Forfeited - - Exercised - - Outstanding as of June 30, 2018 815,600 $ 3.04 The following is a summary of the status of options outstanding and exercisable at June 30, 2018: Outstanding Options Exercisable Options Average Exercise Price Number Average Remaining Contractual life (Years) Average Exercise Price Number Average Remaining Contractual life (Years) $ 6.00 193,000 1.08 $ 6.00 193,000 1.08 $ 2.96 222,600 3.74 $ 2.96 222,600 3.74 $ 1.65 400,000 6.59 $ 1.65 400,000 6.59 815,600 The Share-based compensation expense recorded for stock options granted were ¥2,096,162, ¥2,039,446 and ¥840,286 ($126,935) for the years ended June 30, 2016, 2017 and 2018, respectively. No unrecognized share-based compensation for stock options as of June 30, 2018. Restricted Shares to senior manager As of June 30, 2018, the Company has granted restricted ordinary shares to senior management as follows: On January 31, 2015, the Company granted 150,000 restricted shares to the CEO and 150,000 restricted shares to the CTO at an aggregate value of $495,000, based on the stock closing price of $1.65 at January 31, 2015. These restricted shares will vest over three years with one third of the shares vesting every year from the grant date. All granted shares under this plan are fully vested on January 31, 2018. On October 18, 2015, the Company granted 800,000 restricted shares to its employees and non-employee director as compensation cost for awards. The fair value of the restricted shares was $704,000 based on the closing stock price $0.88 at October 18, 2015. These restricted shares will vest over three years with one third of the shares vesting every year from the grant date. As of June 30, 2017, 19,000 shares were forfeited and went back to the incentive pool due to some staffs’ resignation and 520,667 shares were vested. 260,332 shares under this plan will not be vested until October 18, 2018. On July 27, 2016, the Company granted 876,000 restricted shares to its employees and non-employee director as compensation cost for awards. The fair value of the restricted shares was $963,600 based on the closing stock price $1.10 at July 27, 2016. The Company also re-granted the previously forfeited 19,000 to its employees. These restricted shares will vest over three years with one third of the shares vesting every year from the grant date. The first one third with 298,333 On December 9, 2016, the Company approved management's new plan based on future performance for the three fiscal years from 2017 to 2019. The Company also agreed on front-issuing of shares based on the optimism situation, thus non-vested 3.01 million shares were issued to management on January 23 2017. The fair value of the restricted shares was $4,063,500 based on the closing stock price $1.35 at December 9, 2016. 800,000 shares was vested during the year ended June 30, 2018 based on the financial results for the year ended June 30, 2017. Prior to the filing of the annual report for the years ending June 30, 2018 and 2019, the remaining shares of 2,210,000 under this plan may not be sold, transferred, hypothecated, voted or otherwise used for any purpose, and any shares that are not earned as stated above will be automatically cancelled without payment by the transfer agent of the Company. On October 13, 2017, the Company granted 900,000 restricted shares to its employees as compensation cost for awards. The fair value of the restricted shares was $919,800 based on the closing stock price $1.02 at October 13, 2017. These restricted shares will vest over three years with one third of the shares vesting every year from the grant date. The above-mentioned shares will not vested until October 13, 2018, 2019 and 2020, respectively. 508,909 and 1,563,667 restricted shares were issued and outstanding for the year ended June 30, 2017 and 2018, respectively, for all the plans mentioned above. The share-based compensation expense recorded for restricted shares issued for management were ¥3,595,146, ¥12,904,723 and ¥14,621,838 ($2,208,804) for the years ended June 30, 2016, 2017 and 2018, respectively. The total unrecognized share-based compensation expense of restricted shares issued for management as of June 30, 2018 was approximately ¥18.57 million ($2.80 million), which is expected to be recognized over a weighted average period of approximately 1.31 years. Restricted Shares for service For the year ended June 30, 2018, the Company has granted restricted ordinary shares to consultants as follows: On July 27, 2016, the Company approved the grant of 250,000 restricted shares with a value of $275,000 based on the closing stock price of $1.10 on July 27, 2016 to designees of an independent consulting firm as compensation for advisory services. The vesting period of these shares was one year from the date of contract. 250,000 shares were issued under this plan on October 27, 2016. On November 10, 2016, the Company approved the grant of 330,000 restricted shares with a value of $300,993 based on the closing stock price of $0.9121 on November 10, 2016 to a company as payment for development of software and models. The vesting period of these shares was three-month from the date of contract. Those restricted shares were issued on January 23, 2017. On March 31, 2017, the Company approved the grant of 200,000 restricted shares with a value of $256,020 based on the closing stock price of $1.2801 on March 31, 2017 to designees of an independent consulting firm as payment for accounting management and consulting service. The vesting period of these shares was two-year from the date of contract. 125,000 restricted shares were vested and 100,000 shares were issued under this plan on November 17, 2017. On April 5, 2017, the Company approved the grant of 300,000 restricted shares with a value of $390,000 based on the closing stock price of $1.30 on April 5, 2017 to a company as payment for promotion PR/IR service. The vesting period of these shares was one year from the date of contract. 300,000 restricted shares were vested and no shares were issued as of date of this report. On April 24, 2017, the Company approved the grant of 500,000 restricted shares with a value of $555,050 to a company to prepare research report for online gas selling platform. The fair value of those restricted shares was based on the closing stock price of $1.101 on June 15, 2017 when the service was fully rendered to the Company. All granted shares under this plan are fully vested by June 15, 2017 and issued on November 17, 2017. The Share-based compensation expense recorded for restricted shares issued for service were ¥2,287,415, ¥8,399,240 and ¥3,050,896 ($460,874) for the years ended June 30, 2016, 2017 and 2018, respectively. The total unrecognized share-based compensation expense of restricted shares issued for service as of June 30, 2018 was approximately ¥0.66 million ($0.10 million), which is expected to be recognized over a weighted average period of approximately 0.75 years. Following is a summary of the restricted shares granted: Restricted stock grants Shares Non-vested as of June 30, 2016 1,076,788 Granted 5,466,000 Vested (1,617,121 ) Non-vested as of June 30, 2017 4,925,667 Granted 900,000 Vested (1,783,667 ) Non-vested as of June 30, 2018 4,042,000 The following is a summary of the status of restricted stock at June 30, 2018: Outstanding Restricted Shares Fair Value per Number Average Remaining Amortization Period (Years) $ 0.88 260,333 0.30 $ 1.10 596,667 1.07 $ 1.02 900,000 2.29 $ 1.35 2,210,000 1.00 $ 1.28 75,000 0.75 4,042,000 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 18. 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 uses a tax rate of 25%. Nanjing Recon was approved as a government-certified high –technology company and is subject to a reduced income tax rate of 15% through November 30, 2019. As approved by the domestic tax authority in the PRC, BHD was recognized as a government-certified high technology company and is subject to a reduced income tax rate of 15% through November 25, 2018. Loss before provision for income taxes consisted of: June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB RMB U.S. Dollars Outside China areas ¥ (14,257,066 ) ¥ (28,079,918 ) ¥ (21,599,806 ) $ (3,262,908 ) China (26,079,666 ) (2,815,983 ) (23,759,198 ) (3,589,113 ) Total ¥ (40,336,732 ) ¥ (30,895,901 ) ¥ (45,359,004 ) $ (6,852,021 ) Deferred tax asset, net is comprised of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Allowance for doubtful receivables ¥ 925,907 ¥ 703,545 $ 106,279 Loss from investment in unconsolidated entity - 605,660 91,492 Net operating loss carryforwards 3,425,411 6,911,270 1,044,030 Less: Valuation allowance (4,351,318 ) (8,220,475 ) (1,241,801 ) Deferred income tax assets, net ¥ - ¥ - $ - Following is a reconciliation of income tax expense at the effective rate to income tax at the calculated statutory rates: For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Income tax benefits calculated at statutory rates ¥ (6,230,384 ) ¥ (580,551 ) ¥ (5,679,505 ) $ (857,957 ) Nondeductible expenses and others 1,774,956 93,709 (65,427 ) (9,884 ) Benefit of favorable rate for high-technology companies 2,492,154 232,221 2,009,486 303,557 Benefit of revenue exempted from enterprise income tax (43,363 ) (19,919 ) (55,748 ) (8,421 ) Change in valuation allowances 3,748,735 602,583 3,869,157 584,482 Tax refund (1,196,253 ) (20,143 ) (61,733 ) (9,325 ) Provision for income tax ¥ 545,845 ¥ 307,900 ¥ 16,230 $ 2,452 The Company’s tax expense is comprised of the following: For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Current income tax provision ¥ - ¥ 307,900 ¥ 16,230 $ 2,452 Adjust over accrued tax of prior years (1,196,253 ) - - - Deferred income taxes provision 1,742,098 - - - Expense for income tax ¥ 545,845 ¥ 307,900 ¥ 16,230 $ 2,452 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | NOTE 19. NON-CONTROLLING INTEREST Non-controlling interest consisted of the following: As of June 30, 2017 Nanjing BHD Recon Total Total RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 1,851,000 $ 273,113 Unappropriated retained earnings 3,152,687 3,491,859 6,644,546 980,395 Accumulated other comprehensive loss (18,850 ) (11,853 ) (30,703 ) (4,531 ) Total non-controlling interest ¥ 4,784,837 ¥ 3,680,006 ¥ 8,464,843 $ 1,248,977 As of June 30, 2018 Nanjing Gan Su Qinghai BHD Recon BHD BHD Total Total RMB RMB RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 3,500,000 ¥ 200,000 ¥ 5,551,000 $ 838,544 Unappropriated retained earnings 3,152,687 3,491,859 (548,899 ) (754,014 ) 5,341,633 806,918 Accumulated other comprehensive loss (18,850 ) (11,853 ) - - (30,703 ) (4,638 ) Total non-controlling interest ¥ 4,784,837 ¥ 3,680,006 ¥ 2,951,101 ¥ (554,014 ) ¥ 10,861,930 $ 1,640,824 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 20. CONCENTRATIONS For the year ended June 30, 2016, China National Petroleum Corporation ("CNPC") represented approximately 75% of the Company’s revenue. At June 30, 2016, CNPC accounted for 59% and another customer accounted for 22% of the Company’s trade accounts receivable, net, respectively. For the year ended June 30, 2017, CNPC represented approximately 72% and another customer represented approximately 10% of the Company’s revenue, respectively. At June 30, 2017, CNPC accounted for 42% and another two customers accounted for 22% and 16% of the Company’s trade accounts receivable, net, respectively. For the year ended June 30, 2018, CNPC represented approximately 45% and another customer represented approximately 43% of the Company’s revenue, respectively. At June 30, 2018, CNPC accounted for 29% and another two customers accounted for 22% and 14% of the Company’s trade accounts receivable, net, respectively. For the year ended June 30, 2016, two major suppliers accounted for 49% of the company’s total purchases. At June 30, 2016, three suppliers accounted for 67% of the Company’s trade accounts payable. For the year ended June 30, 2017, three major suppliers accounted for 43% of the company’s total purchases. At June 30, 2017, three suppliers accounted for 61% of the Company’s trade accounts payable. For the year ended June 30, 2018, two major suppliers accounted for 58% of the company’s total purchases. At June 30, 2018, three suppliers accounted for 60% of the Company’s trade accounts payable. |
COMMITMENTS AND CONTINGENCY
COMMITMENTS AND CONTINGENCY | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 21. COMMITMENTS AND CONTINGENCY (a) Office Leases The Company entered into six non-cancellable operating lease agreements for office spaces and factories. Future payments under such leases are as follows as of June 30, 2018: Twelve months ending June 30, RMB U.S. Dollars 2019 ¥ 2,623,077 $ 396,247 2020 1,332,923 201,354 Total ¥ 3,956,000 $ 597,601 Rent expense for the years ended June 30, 2016, 2017 and 2018 were ¥1,323,170, ¥1,664,128 and ¥2,8596,809 ($432,008), respectively. (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, 2018, the Company estimated its severance payments of approximately ¥2.0 million ($0.3 million) which has not been reflected in its consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 22. RELATED PARTY TRANSACTIONS AND BALANCES Purchases from related parties – For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Huanghua Heng Da Xiang Tong Manufacture Ltd ¥ 338,862 ¥ - ¥ - $ - Xiamen Huangsheng Hitek Computer Network Co. Ltd. 588,894 - - - Purchases from related parties ¥ 927,756 ¥ - ¥ - $ - Account payable due to related parties Leases from related parties Monthly Rent Monthly Rent Lessee Lessor Rent Period RMB USD Nanjing Recon Yin Shenping April 1, 2018 - March 31, 2020 ¥ 60,000 $ 9,064 BHD Chen Guangqiang January 1, 2018 - December 31, 2018 22,500 3,399 BHD Mr Chen's family member January 1, 2018 - December 31, 2018 47,500 7,175 Recon-BJ Yin Shenping July 1, 2016 - June 30, 2018 10,000 1,511 Short-term borrowings from related parties Long-term borrowings from related parties Expenses paid by the owner on behalf of Recon – IEs paid certain operating expenses for the Company. As of June 30, 2017, and 2018, ¥3,062,709 and ¥2,767,349 ($418,041) was due to them, respectively. See Note 12. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disclosure Of Variable Interest Entities [Text Block] | NOTE 23. Variable Interest Entities VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Summary information regarding consolidated VIEs is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars ASSETS Current Assets Cash and cash equivalents ¥ 3,506,540 ¥ 7,336,672 $ 1,108,292 Notes receivable 6,112,960 3,995,962 603,638 Trade accounts receivable, net 39,425,911 24,254,007 3,663,858 Purchase advances, net 11,476,000 12,654,546 1,911,621 Other assets 7,450,483 14,281,461 2,157,386 Total current assets ¥ 67,971,894 ¥ 62,522,648 $ 9,444,795 Non-current assets 2,757,404 20,966,716 3,167,273 Total Assets ¥ 70,729,298 ¥ 83,489,364 $ 12,612,068 LIABILITIES Trade accounts payable ¥ 8,352,870 ¥ 8,754,347 $ 1,322,449 Taxes payable 684,721 278,184 42,023 Other liabilities 16,372,863 14,730,356 2,225,197 Total current liabilities 25,410,454 23,762,887 3,589,669 Non-current liabilities - 8,943,834 1,351,073 Total Liabilities ¥ 25,410,454 ¥ 32,706,721 $ 4,940,742 The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2016 includes revenues of ¥42,728,277, operating expenses of ¥31,590,843, and net loss of ¥25,481,256. The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2017 includes revenues of ¥60,054,462, operating expenses of ¥18,074,743, and net loss of ¥2,757,013. The financial performance of VIEs reported in the consolidated statement of operations and comprehensive loss for the year ended June 30, 2018 includes revenues of ¥84,712,046 ($12,796,768), operating expenses of ¥22,441,733 ($3,390,092), and net loss of ¥22,734,249 ($3,434,280). |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 24. SEGMENT REPORTING ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has three operating segments: automation product and software, equipment and accessories and oilfield environmental protection. The following tables present summary information by segment for the years ended June 30, 2016, 2017 and 2018, respectively: For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Automation product and software ¥ 26,171,906 ¥ 22,399,066 ¥ 18,989,924 $ 2,868,655 Equipment and accessories 14,221,914 26,658,094 63,960,425 9,661,988 Oilfield environmental protection 2,334,457 10,997,302 1,761,697 266,125 Total revenue ¥ 42,728,277 ¥ 60,054,462 ¥ 84,712,046 $ 12,796,768 All the Company’s revenue was generated from its business operation in China. For the years ended June 30, 2018 Automation product and software Equipment and a ccessories Oilfield environmental protection Total RMB RMB RMB RMB Revenue ¥ 18,989,924 ¥ 63,960,425 ¥ 1,761,697 ¥ 84,712,046 Cost of revenue and related tax 17,036,393 62,115,400 1,410,068 80,561,861 Gross profit ¥ 1,953,531 ¥ 1,845,025 ¥ 351,629 ¥ 4,150,185 Depreciation and amortization ¥ 48,127 ¥ 1,044,079 ¥ 26,843 ¥ 1,119,049 Total capital expenditures ¥ 100,327 ¥ 1,403,083 ¥ 10,519,072 ¥ 12,022,482 For the years ended June 30, 2017 Automation product and software Equipment and accessories Oilfield environmental protection Total RMB RMB RMB RMB Revenue ¥ 22,399,066 ¥ 26,658,094 ¥ 10,997,302 ¥ 60,054,462 Cost of revenue and related tax 12,593,429 22,023,851 9,473,680 44,090,960 Gross profit ¥ 9,805,637 ¥ 4,634,243 ¥ 1,523,622 ¥ 15,963,502 Depreciation and amortization ¥ 39,846 ¥ 816,889 ¥ - ¥ 856,735 Total capital expenditures ¥ 75,809 ¥ 562,310 ¥ - ¥ 638,119 For the years ended June 30, 2016 Automation product and software Equipment and accessories Oilfield environmental protection Total RMB RMB RMB RMB Revenue ¥ 26,171,906 ¥ 14,221,914 ¥ 2,334,457 ¥ 42,728,277 Cost of revenue and related tax 20,548,568 13,126,589 1,806,237 35,481,394 Gross profit ¥ 5,623,338 ¥ 1,095,325 ¥ 528,220 ¥ 7,246,883 Depreciation and amortization ¥ 67,091 ¥ 887,992 ¥ - ¥ 955,083 Total capital expenditures ¥ 6,477 ¥ 174,598 ¥ - ¥ 181,075 June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Total assets: Automation product and software ¥ 35,865,376 ¥ 53,284,643 $ 8,049,284 Equipment and accessories 35,289,669 40,365,472 6,097,688 Oilfield environmental protection - 28,157,402 4,253,512 Total Assets ¥ 71,155,045 ¥ 121,807,517 $ 18,400,484 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 25. SUBSEQUENT EVENTS On August 27, 2018, the board of the Company approved the issuance of 25,000 restricted shares to Ascent Investor Relations LLC (“Ascent”). The Company entered into an investor relations letter agreement on August 1, 2018, pursuant to which Ascent agrees to provide certain consulting services to the Company (the “IR Agreement”). Fair value of the shares granted is $1.28 per share based on the closing price of the resolution of the board on August 27, 2018 with a vesting period of a year from the date of the agreement. Fair value of these shares is $32,000. On August 27, 2018, the board of the company approved a grant of 1,956,000 restricted stock units (the “RSUs”) to certain employees and directors under the Company’s 2015 Equity Incentive Plan (the “Plan”) according to a vesting schedule as a reward and compensation to encourage as an incentive for their future dedication to the Company. Fair value of these RSUs are $2,503,680 based on the closing price of the resolution of the board on August 27, 2018, with a vesting period of three years from the date of the grant. |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation - |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation - |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities - Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Currency Translation |
Use of Estimates, Policy [Policy Text Block] | Estimates and assumptions The key assumptions underlying the Company’s accounting for material arrangements and the reasonably likely material effects of resolving any uncertainties on the Company’s allowance for doubtful accounts related to purchase advances. The production of the Company’s products requires custom-made equipment from its suppliers. To ensure that it can secure the required customized equipment, the Company often needs to make full prepayment for its intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid in order to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by its client. In order to secure timely purchase delivery and to meet its product delivery schedule, the Company normally prepays for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract. After winning the bid and securing the sale contract, the Company normally needs to deliver its products approximately within one week to six months. Based on the Company’s historical experience, the Company generally is able to realize its purchase advances on the customized equipment that it orders. If the Company does not secure the sales contract after making prepayment, its seeks to negotiate with its suppliers for them either to refund the purchase advances or issue credits for the Company to purchase similar products with similar models with its future contracts. If the Company determines that its suppliers are unlikely to refund or credit for future purchases or if it is unlikely to secure projects to use those products in the foreseeable future, the Company provides a 100% allowance on the specific advances. Currently, only pre-contract cost under Purchase advance are under such rick of cancelation or rick mention above. As of June 30, 2018, the Company has approximately ¥1,508,491 ($227,876) of purchase advances that are still pending of securing sales contract bid, of which t ¥98,500 ($14,880) will not be realizable and have accordingly provided an allowance. The balance of ¥98,500 ($14,880) of such allowance remains outstanding at June 30, 2018 as it has not yet exceeded two years in aging or otherwise been deemed uncollectible. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable. 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. The fair value of long-term receivables is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Accounts and Other Receivables |
Policy Loans Receivable, Policy [Policy Text Block] | Notes Receivable |
Purchase Advances [Policy Text Block] | Purchase Advances - Pre-Contract Costs The Company evaluates its purchase advances on a semi-annually basis. If it expects to receive its customized equipment within one year, the purchase advances are classified as current assets. If it does not expect to utilize the purchase advances within one year, the purchase advances will be classified as long-term assets. As of June 30, 2017, and 2018, the Company expected to receive its purchased advances, net of allowance, within one year. - Contract Costs - Prepayments for Others The Company has three types of purchase advances, capitalized pre-contract costs, capitalized contract costs and prepayment for others. (a) Capitalized pre-contract costs are the amounts paid to suppliers for purchases of customized equipment in anticipation of obtaining planned contracts for the Company’s sales and these advances are considered as pre-contract costs. As of June 30, 2018, approximately ¥1.5 million ($0.2 million) pre-contract costs were paid to the Company’s suppliers as compared to approximately ¥0.2 million at June 30, 2017. The change in purchase advances is mainly due to the change in the Company’s anticipation of securing new sales contacts and to secure the materials for its timely performance under such contracts. The production of the Company’s product required customized equipment from suppliers. To ensure the Company can secure the required customized equipment, the Company would need to make full prepayment for the intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by the Company’s client. To secure timely purchase delivery and to meet the product delivery schedule, the Company normally would prepay for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract. After winning the bid and the sale contract is secured, the Company normally needs to its products approximately within one week to six months. Based on historical experience, the Company is generally able to realize its purchase advances on the customized equipment that it ordered. If the Company does not secure the sales contract after making prepayment, it seeks to negotiate with its suppliers for them either to issue refund of the purchase advances or issue credits for it to purchase similar products with similar models with its future contracts. If the Company determines that its suppliers are unlikely to refund or credit for future purchases or if it is unlikely to secure projects to use those products in the foreseeable future, it provides a 100% allowance on the improbable recovery amounts. (b) Capitalized contract costs are the amounts paid to the suppliers for purchases of customized equipment to secure the Company’s executed sale contracts. As of June 30, 2018, the Company paid approximately ¥4.2 million ($0.6 million) purchase advances to the Company’s suppliers as compared to approximately ¥4.6 million at June 30, 2017. Based on the Company’s historical experience, it is generally able to realize and not reserve its purchase advances on the customized equipment that it ordered. (c) Besides, the Company also has prepayment for others business activities, such as standard raw materials, supplies and services. As of June 30, 2018, the Company prepaid approximately ¥7.4 million ($1.1 million) purchase advances to its suppliers as compared to approximately ¥7.1 million at June 30, 2017. Usually, this type of prepayments will be expensed when those products or services have been rendered or consumed. While in some rare circumstances, the prepayment may also under some uncertainties when its initial requirements change. The Company will try to negotiate with vendors to collect the fund back or make new arrangement to avoid major loss. |
Inventory, Policy [Policy Text Block] | Inventories |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Items Useful life Motor vehicles 5-10 years Office equipment 2-5 years Production equipment 10 years |
Land Use Rights [Policy Text Block] | Land Use Rights |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets |
Long-term investments [Policy Text Block] | Long-term investments The Company reviews its cost method investment for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investment. An impairment charge is recorded if the carrying amount of an investment exceeds its fair value and such excess is determined to be other-than temporary. The Company recorded approximately ¥4.0 million ($0.61 million) impairment loss on its cost method investment in unconsolidated entity during the year ended June 30, 2018. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition based on the new revenue standard, the Company should recognize revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer. A good or service is transferred when (or as) the customer obtains control of that good or service. After evaluation, the Company determined that it satisfies a performance obligation at a point in time by considering indicators of the transfer of control, which include, but are not limited to, the following: 1. The entity has a present right to payment for the asset. 2. The customer has legal title to the asset. 3. The entity has transferred physical possession of the asset. 4. The customer has the significant risks and rewards of ownership of the asset. 5. The customer has accepted the asset. The Company also performed analysis for the type of its construction arrangement. Usually the Company’s construction contract includes numerous promises to transfer goods or services to the customer. These goods and services are distinct since the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer and the Company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. Therefore, each promise in the contract should be accounted separately as an individual performance obligation. The completion of each of this individual performance obligation is usually in a short-term based on explicit requirements of customers. After evaluation, the Company determined to recognize revenue of each performance obligation under the construction arrangement at a point in time, by considering indicators of the transfer of control listed above. Before adoption of ASU 606, the Company accrued all expensed and materials costs until the overall projects under the same contract are accepted but no revenue is recorded during the period. With adoption of this new recognition standard, the Company shall record contract revenue and corresponding cost accordingly under each individual performance obligation. Based on the current revenue standard, revenue is recognized when the promised good or service is delivered to the customer and the customer has the significant risks and rewards of ownership of the promised good or service. The Company has substantially conducted its evaluation of the impact of the standard and the Company does not expect the adoption of the standard will have a material impact to its consolidated revenue. However, as a result of applying the new standard, there are certain components of its type of construction arrangement where the new standard generally results in earlier recognition of revenue compared to its historical policies. The Company expects to record a net increase in opening retained earnings upon adoption resulting from the acceleration of revenue recognized under the new standard. 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. Usually this is short term in nature. Service: The Company provides services to improve system operation on separated fixed-price contracts. Revenue is recognized when service has been performed and accepted by the customer. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Compensation - |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expenses |
Shipping and Handling Costs [Policy Text Block] | Shipping and Handling Costs - Shipping and handling cost incurred to ship products to customers are included in selling and distribution expenses. Shipping and handling expenses were ¥1,167,117, ¥752,656 and ¥1,170,358 ($176,797) for the years ended June 30, 2016, 2017 and 2018, respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company has no uncertain tax position as of June 30, 2018, 2017 and 2016. As of June 30, 2018, the tax years ended December 31, 2013 through December 31, 2017 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. |
Earnings Per Share, Policy [Policy Text Block] | Loss per Share - 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 the Company incurred a net loss for the years ended June 30, 2016, 2017 and 2018. |
Reclassification [Policy Text Block] | Reclassification - Certain prior year amounts had been reclassified to conform to the current period presentation. These reclassifications have no effect on the results of operations and cash flows previously reported. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In September 2017, the FASB issued ASU 2017-13, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842)”. The main objective of this pronouncement is to clarify the effective date of the adoption of ASC Topic 606 and ASC Topic 842 and the definition of public business entity as stipulated in ASU 2014-09 and ASU 2016-02. ASU 2014-09 provides that a public business entity adopt ASC Topic 606 for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. ASU 2016-12 requires certain other specified entities adopt ASC Topic 842 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company applied the new revenue standard from July 1, 2018 and adopted a modified retrospective approach upon the adoption. The Company performed an analysis on each of the Company’s revenue streams in accordance with the new revenue standard, and the Company concluded that the adoption of this new revenue standard does not have a material impact on the Company’s consolidated financial statements. Based on the current revenue standard, revenue is recognized when the promised good or service is delivered to the customer and the customer has the significant risks and rewards of ownership of the promised good or service. The time of revenue recognition of the Company is almost consistent under the old standard and new standard. However, as a result of applying the new standard, there are certain components of the Company’s type of construction arrangement where the new standard generally results in earlier recognition of revenue compared to the Company’s historical policies. The Company expects to record a net increase in opening retained earnings upon adoption resulting from the acceleration of revenue recognized under the new standard. In November 2017, the FASB issued ASU 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), which amends certain aspects of the new revenue recognition standard. This standard will be effective for fiscal years beginning after December 15, 2018. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases,” which clarifies how to apply certain aspects of the new leases standard. This ASU addresses the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. This ASU has the same effective date and transition requirements as the new leases standard, which is effective for annual periods beginning after December 15, 2018. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” which provides a new transition method and a practical expedient for separating components of a contract. This ASU is intended to reduce costs and ease the implementation of the new leasing standard for financial statement preparers. The effective date and transition requirements for the amendments related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. The Company expects that the adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule Of Accounts Receivable Third Party [Table Text Block] | Accounts receivable, net consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Third Party RMB RMB U.S. Dollars Trade accounts receivable ¥ 43,691,416 ¥ 27,319,241 $ 4,126,898 Allowance for doubtful accounts (4,265,505 ) (3,065,234 ) (463,040 ) Total - third-party, net ¥ 39,425,911 ¥ 24,254,007 $ 3,663,858 June 30, 2017 June 30, 2018 June 30, 2017 Third Party – long-term RMB RMB U.S. Dollars Beijing Yabei Nuoda Science and Technology Co. Ltd. * ¥ - ¥ 4,400,000 $ 664,673 Allowance for doubtful accounts - (187,171 ) (28,275 ) Total - long-term trade accounts receivable, net ¥ - ¥ 4,212,829 $ 636,398 *The receivable from Beijing Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed in August, 2018, the outstanding balance was to be collected in five installments during the period from December 2018 to December 2020. Based on the repayment agreement, the Company expects to collect ¥1,954,978 ($295,323) before June 30, 2019, ¥3,100,000 ($468,292) before June 30, 2020 and ¥1,300,000 ($196,380) before December 31, 2020, respectively. No interest is required per the settlement agreement. |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Movement of allowance for doubtful accounts is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 4,814,577 ¥ 4,265,505 $ 644,356 Charge to (reversal of) expense 1,137,238 (1,013,100 ) (153,041 ) Less: write-off (1,686,310 ) - - Ending balance ¥ 4,265,505 ¥ 3,252,405 $ 491,315 |
OTHER RECEIVABLES, NET (Tables)
OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Receivables [Abstract] | |
Schedule Of Other Receivables [Table Text Block] | Other receivables, net consisted of the following: Third Party June 30, 2017 June 30, 2018 June 30, 2018 Current Portion RMB RMB U.S. Dollars Loans to third parties (A) 1,115,720 2,640,469 398,875 Business advances to officers and staffs (B) 2,999,761 1,787,866 270,079 Deposits for projects 1,189,329 1,665,002 251,518 VAT recoverable - 1,438,949 217,370 Others 307,119 690,597 104,323 Allowance for doubtful accounts (1,505,419 ) (901,930 ) (136,247 ) Total ¥ 4,106,510 ¥ 7,320,953 $ 1,105,918 (A) 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. (B) Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. |
Allowance For Doubtful Accounts In Other Receivables [Table Text Block] | Movement of allowance for doubtful accounts is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 1,277,807 ¥ 1,505,419 $ 227,412 Charge to expense 247,612 109,302 16,511 Less: write-off (20,000 ) (712,791 ) (107,676 ) Ending balance ¥ 1,505,419 ¥ 901,930 $ 136,247 |
PURCHASE ADVANCES, NET (Tables)
PURCHASE ADVANCES, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule Of Purchase Advances [Table Text Block] | The Company purchased products and services from third parties during the normal course of business. Purchase advances, net consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Third Party RMB RMB U.S. Dollars Capitalized pre-contract costs ¥ 151,545 ¥ 1,508,491 $ 227,876 Capitalized contract costs 4,634,689 4,221,942 637,775 Prepayment for others 7,091,556 7,376,745 1,114,345 Allowance for doubtful accounts (401,790 ) (452,632 ) (68,375 ) Total ¥ 11,476,000 ¥ 12,654,546 $ 1,911,621 |
Allowance For Doubtful Accounts In Purchase Advance [Table Text Block] | Movement of allowance for doubtful accounts is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 16,591,247 ¥ 401,790 $ 60,695 Charge to expense 381,436 62,556 9,450 Less: write-off (16,570,893 ) (11,714 ) (1,770 ) Ending balance ¥ 401,790 ¥ 452,632 $ 68,375 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Small component parts ¥ 55,726 ¥ 55,726 $ 8,418 Purchased goods and raw materials 51,617 59,328 8,962 Work in process and goods on site 1,842,411 5,155,215 778,758 Finished goods 4,702,883 2,888,096 436,281 Allowance for slow moving inventory (4,024,663 ) (1,399,524 ) (211,415 ) Total inventories, net ¥ 2,627,974 ¥ 6,758,841 $ 1,021,004 |
Allowance For Doubtful Inventory [Table Text Block] | Movement of allowance for slow-moving inventories is as follows: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Beginning balance ¥ 5,398,179 ¥ 4,024,663 $ 607,974 Charge to cost of sales - 65,245 9,856 Less: write-off (1,373,516 ) (2,690,384 ) (406,415 ) Ending balance ¥ 4,024,663 ¥ 1,399,524 $ 211,415 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Motor vehicles ¥ 4,116,847 ¥ 4,456,156 $ 673,156 Office equipment and fixtures 1,139,587 1,239,914 187,304 Production equipment 916,026 1,609,500 243,134 Total property and equipment 6,172,460 7,305,570 1,103,594 Less: Accumulated depreciation (3,404,490 ) (4,134,461 ) (624,560 ) Property and equipment, net ¥ 2,767,970 ¥ 3,171,109 $ 479,034 Construction in progress ¥ - ¥ 11,779,784 $ 1,779,477 |
LAND USE RIGHTS (Tables)
LAND USE RIGHTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Land Use Rights [Abstract] | |
Land Use Rights Disclosure [Table Text Block] | Land use rights as of June 30, 2018 are as following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Land use rights - 1,361,969 205,742 Less: accumulated amortization - (26,843 ) (4,055 ) Land use rights, net ¥ - ¥ 1,335,126 $ 201,687 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization expenses are as follows: Twelve months ending June 30, RMB U.S. Dollars 2019 ¥ 27,239 $ 4,115 2020 27,239 4,115 2021 27,239 4,115 2022 27,239 4,115 2023 27,239 4,115 Thereafter 1,198,931 181,112 Total ¥ 1,335,126 $ 201,687 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Other Payables [Table Text Block] | Other payables consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Third Party RMB RMB U.S. Dollars Service ¥ 1,518,033 ¥ 1,356,676 $ 204,944 Distributors and employees 207,005 90,130 13,615 Funds collected on behalf of others 895,022 895,022 135,204 Advances from customers 130,100 157,856 23,846 Accrued expenses 193,274 411,898 62,222 Others 408,466 259,088 39,138 Total ¥ 3,351,900 ¥ 3,170,670 $ 478,969 |
Schedule Of Other Payables Related Party [Table Text Block] | June 30, 2017 June 30, 2018 June 30, 2018 Related Party RMB RMB U.S. Dollars Expenses paid by the major shareholders ¥ 3,062,709 ¥ 2,767,349 $ 418,041 Due to family member of the owner of BHD - 193,143 29,177 Due to management staff for costs incurred on behalf of the Company 251,310 250,965 37,911 Total ¥ 3,314,019 ¥ 3,211,457 $ 485,129 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Taxes Payable [Abstract] | |
Taxes Payable [Table Text Block] | Taxes payable consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars VAT payable ¥ 632,831 ¥ 382,361 $ 57,760 Income tax payable 43,556 43,556 6,580 Other taxes payable 8,334 5,996 906 Total taxes payable ¥ 684,721 ¥ 431,913 $ 65,246 |
SHORT-TERM BORROWINGS DUE TO 41
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Short-term Debt [Line Items] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings due to related parties consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Short-term borrowings due to related parties: RMB RMB U.S. Dollars Short-term borrowing from a Founder, 5.655% annual interest, due on August 24, 2017 ¥ 62,692 ¥ - $ - Short-term borrowing from a Founder, 5.655% annual interest, due on August 31, 2017 1,260,165 - - Short-term borrowing from a Founder, 5.655% annual interest, due on August 31, 2017 1,420,223 - - Short-term borrowing from a Founder, 5.655% annual interest, due on September 11, 2017 722,262 - - Short-term borrowing from a Founder, 5.655% annual interest, due on September 16, 2017 541,187 - - Short-term borrowing from a Founder, 5.655% annual interest, due on September 18, 2017 804,530 - - Short-term borrowing from a Founder's family member, no interest, due on December 31, 2017 350,000 - - Short-term borrowing from a Founder, 5.22% annual interest, due on May 10, 2018 2,529,428 - - Short-term borrowing from a Founder, 5.22% annual interest, due on June 7, 2018 2,477,521 - - Short-term borrowing from a Founder, 5.655% annual interest, due on December 15, 2018 - 5,011,782 757,090 Short-term borrowing from a Founder, 5.655% annual interest, due on March 21, 2019 - 4,006,283 605,197 Total short-term borrowings due to related parties ¥ 10,168,008 ¥ 9,018,065 $ 1,362,287 * The Company repaid the loan in full on maturity date. |
LONG-TERM BORROWINGS DUE TO R42
LONG-TERM BORROWINGS DUE TO RELATED PARTY (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt Due To Related Party [Table Text Block] | Long-term borrowings due to related party consisted of the following: June 30, 2017 June 30, 2018 June 30, 2018 Long-term borrowings due to related party: RMB RMB U.S. Dollars Long-term borrowing from a Founder, monthly payments of ¥ 126,135 8.90 ten years loan ¥ - ¥ 9,663,729 ¥ 1,459,822 Less: current portion - (719,895 ) (108,749 ) Total long-term borrowings due to related party ¥ - ¥ 8,943,834 $ 1,351,073 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The future maturities of long-term borrowings due to related party at June 30, 2018 are as follows: Twelve months ending June 30, RMB U.S. Dollars 2019 ¥ 719,895 $ 108,749 2020 747,630 112,938 2021 816,952 123,410 2022 892,701 134,853 2023 975,474 147,357 Thereafter 5,511,077 832,515 Total ¥ 9,663,729 $ 1,459,822 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following is a summary of the stock options activity: Stock Options Shares Weighted Average Exercise Price Per Share Outstanding as of June 30, 2016 815,600 $ 3.04 Granted - - Forfeited - - Exercised - - Outstanding as of June 30, 2017 815,600 $ 3.04 Granted - - Forfeited - - Exercised - - Outstanding as of June 30, 2018 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, 2018: Outstanding Options Exercisable Options Average Exercise Price Number Average Remaining Contractual life (Years) Average Exercise Price Number Average Remaining Contractual life (Years) $ 6.00 193,000 1.08 $ 6.00 193,000 1.08 $ 2.96 222,600 3.74 $ 2.96 222,600 3.74 $ 1.65 400,000 6.59 $ 1.65 400,000 6.59 815,600 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Following is a summary of the restricted shares granted: Restricted stock grants Shares Non-vested as of June 30, 2016 1,076,788 Granted 5,466,000 Vested (1,617,121 ) Non-vested as of June 30, 2017 4,925,667 Granted 900,000 Vested (1,783,667 ) Non-vested as of June 30, 2018 4,042,000 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following is a summary of the status of restricted stock at June 30, 2018: Outstanding Restricted Shares Fair Value per Number Average Remaining Amortization Period (Years) $ 0.88 260,333 0.30 $ 1.10 596,667 1.07 $ 1.02 900,000 2.29 $ 1.35 2,210,000 1.00 $ 1.28 75,000 0.75 4,042,000 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Loss before provision for income taxes consisted of: June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB RMB U.S. Dollars Outside China areas ¥ (14,257,066 ) ¥ (28,079,918 ) ¥ (21,599,806 ) $ (3,262,908 ) China (26,079,666 ) (2,815,983 ) (23,759,198 ) (3,589,113 ) Total ¥ (40,336,732 ) ¥ (30,895,901 ) ¥ (45,359,004 ) $ (6,852,021 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax asset, net is comprised of the following: June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Allowance for doubtful receivables ¥ 925,907 ¥ 703,545 $ 106,279 Loss from investment in unconsolidated entity - 605,660 91,492 Net operating loss carryforwards 3,425,411 6,911,270 1,044,030 Less: Valuation allowance (4,351,318 ) (8,220,475 ) (1,241,801 ) Deferred income tax assets, net ¥ - ¥ - $ - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Following is a reconciliation of income tax expense at the effective rate to income tax at the calculated statutory rates: For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Income tax benefits calculated at statutory rates ¥ (6,230,384 ) ¥ (580,551 ) ¥ (5,679,505 ) $ (857,957 ) Nondeductible expenses and others 1,774,956 93,709 (65,427 ) (9,884 ) Benefit of favorable rate for high-technology companies 2,492,154 232,221 2,009,486 303,557 Benefit of revenue exempted from enterprise income tax (43,363 ) (19,919 ) (55,748 ) (8,421 ) Change in valuation allowances 3,748,735 602,583 3,869,157 584,482 Tax refund (1,196,253 ) (20,143 ) (61,733 ) (9,325 ) Provision for income tax ¥ 545,845 ¥ 307,900 ¥ 16,230 $ 2,452 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Company’s tax expense is comprised of the following: For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Current income tax provision ¥ - ¥ 307,900 ¥ 16,230 $ 2,452 Adjust over accrued tax of prior years (1,196,253 ) - - - Deferred income taxes provision 1,742,098 - - - Expense for income tax ¥ 545,845 ¥ 307,900 ¥ 16,230 $ 2,452 |
NON-CONTROLLING INTEREST(Tables
NON-CONTROLLING INTEREST(Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest [Table Text Block] | Non-controlling interest consisted of the following: As of June 30, 2017 Nanjing BHD Recon Total Total RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 1,851,000 $ 273,113 Unappropriated retained earnings 3,152,687 3,491,859 6,644,546 980,395 Accumulated other comprehensive loss (18,850 ) (11,853 ) (30,703 ) (4,531 ) Total non-controlling interest ¥ 4,784,837 ¥ 3,680,006 ¥ 8,464,843 $ 1,248,977 As of June 30, 2018 Nanjing Gan Su Qinghai BHD Recon BHD BHD Total Total RMB RMB RMB RMB RMB U.S. Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 3,500,000 ¥ 200,000 ¥ 5,551,000 $ 838,544 Unappropriated retained earnings 3,152,687 3,491,859 (548,899 ) (754,014 ) 5,341,633 806,918 Accumulated other comprehensive loss (18,850 ) (11,853 ) - - (30,703 ) (4,638 ) Total non-controlling interest ¥ 4,784,837 ¥ 3,680,006 ¥ 2,951,101 ¥ (554,014 ) ¥ 10,861,930 $ 1,640,824 |
COMMITMENTS AND CONTINGENCY (Ta
COMMITMENTS AND CONTINGENCY (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Rental Payments For Operating Leases Table [Text Block] | The Company entered into six non-cancellable operating lease agreements for office spaces and factories. Future payments under such leases are as follows as of June 30, 2018: Twelve months ending June 30, RMB U.S. Dollars 2019 ¥ 2,623,077 $ 396,247 2020 1,332,923 201,354 Total ¥ 3,956,000 $ 597,601 |
RELATED PARTY TRANSACTIONS AN47
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Purchases From Related Parties [Table Text Block] | Purchases from related parties – For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Huanghua Heng Da Xiang Tong Manufacture Ltd ¥ 338,862 ¥ - ¥ - $ - Xiamen Huangsheng Hitek Computer Network Co. Ltd. 588,894 - - - Purchases from related parties ¥ 927,756 ¥ - ¥ - $ - |
Schedule of Rent Expense [Table Text Block] | The details of leases from related parties are as below: Monthly Rent Monthly Rent Lessee Lessor Rent Period RMB USD Nanjing Recon Yin Shenping April 1, 2018 - March 31, 2020 ¥ 60,000 $ 9,064 BHD Chen Guangqiang January 1, 2018 - December 31, 2018 22,500 3,399 BHD Mr Chen's family member January 1, 2018 - December 31, 2018 47,500 7,175 Recon-BJ Yin Shenping July 1, 2016 - June 30, 2018 10,000 1,511 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
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, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars ASSETS Current Assets Cash and cash equivalents ¥ 3,506,540 ¥ 7,336,672 $ 1,108,292 Notes receivable 6,112,960 3,995,962 603,638 Trade accounts receivable, net 39,425,911 24,254,007 3,663,858 Purchase advances, net 11,476,000 12,654,546 1,911,621 Other assets 7,450,483 14,281,461 2,157,386 Total current assets ¥ 67,971,894 ¥ 62,522,648 $ 9,444,795 Non-current assets 2,757,404 20,966,716 3,167,273 Total Assets ¥ 70,729,298 ¥ 83,489,364 $ 12,612,068 LIABILITIES Trade accounts payable ¥ 8,352,870 ¥ 8,754,347 $ 1,322,449 Taxes payable 684,721 278,184 42,023 Other liabilities 16,372,863 14,730,356 2,225,197 Total current liabilities 25,410,454 23,762,887 3,589,669 Non-current liabilities - 8,943,834 1,351,073 Total Liabilities ¥ 25,410,454 ¥ 32,706,721 $ 4,940,742 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present summary information by segment for the years ended June 30, 2016, 2017 and 2018, respectively: For the years ended June 30, 2016 2017 2018 2018 RMB RMB RMB U.S. Dollars Automation product and software ¥ 26,171,906 ¥ 22,399,066 ¥ 18,989,924 $ 2,868,655 Equipment and accessories 14,221,914 26,658,094 63,960,425 9,661,988 Oilfield environmental protection 2,334,457 10,997,302 1,761,697 266,125 Total revenue ¥ 42,728,277 ¥ 60,054,462 ¥ 84,712,046 $ 12,796,768 All the Company’s revenue was generated from its business operation in China. For the years ended June 30, 2018 Automation product and software Equipment and a ccessories Oilfield environmental protection Total RMB RMB RMB RMB Revenue ¥ 18,989,924 ¥ 63,960,425 ¥ 1,761,697 ¥ 84,712,046 Cost of revenue and related tax 17,036,393 62,115,400 1,410,068 80,561,861 Gross profit ¥ 1,953,531 ¥ 1,845,025 ¥ 351,629 ¥ 4,150,185 Depreciation and amortization ¥ 48,127 ¥ 1,044,079 ¥ 26,843 ¥ 1,119,049 Total capital expenditures ¥ 100,327 ¥ 1,403,083 ¥ 10,519,072 ¥ 12,022,482 For the years ended June 30, 2017 Automation product and software Equipment and accessories Oilfield environmental protection Total RMB RMB RMB RMB Revenue ¥ 22,399,066 ¥ 26,658,094 ¥ 10,997,302 ¥ 60,054,462 Cost of revenue and related tax 12,593,429 22,023,851 9,473,680 44,090,960 Gross profit ¥ 9,805,637 ¥ 4,634,243 ¥ 1,523,622 ¥ 15,963,502 Depreciation and amortization ¥ 39,846 ¥ 816,889 ¥ - ¥ 856,735 Total capital expenditures ¥ 75,809 ¥ 562,310 ¥ - ¥ 638,119 For the years ended June 30, 2016 Automation product and software Equipment and accessories Oilfield environmental protection Total RMB RMB RMB RMB Revenue ¥ 26,171,906 ¥ 14,221,914 ¥ 2,334,457 ¥ 42,728,277 Cost of revenue and related tax 20,548,568 13,126,589 1,806,237 35,481,394 Gross profit ¥ 5,623,338 ¥ 1,095,325 ¥ 528,220 ¥ 7,246,883 Depreciation and amortization ¥ 67,091 ¥ 887,992 ¥ - ¥ 955,083 Total capital expenditures ¥ 6,477 ¥ 174,598 ¥ - ¥ 181,075 June 30, 2017 June 30, 2018 June 30, 2018 RMB RMB U.S. Dollars Total assets: Automation product and software ¥ 35,865,376 ¥ 53,284,643 $ 8,049,284 Equipment and accessories 35,289,669 40,365,472 6,097,688 Oilfield environmental protection - 28,157,402 4,253,512 Total Assets ¥ 71,155,045 ¥ 121,807,517 $ 18,400,484 |
ORGANIZATION AND NATURE OF OP50
ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) - 12 months ended Jun. 30, 2018 | CNY (¥) | USD ($) |
Variable Interest Entity, Terms of Arrangements | the Company is able to absorb 90% of net interest or 100% of net loss of those VIEs. | |
Beijing Bhd Petroleum Technology Co Ltd [Member] | ||
Decommissioning Fund Investments | ¥ 9,300,000 | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 51.00% | |
Paid In Capital | ¥ 2,250,000 | $ 339,889 |
Remaining Paid In Capital | 25,250,000 | 3,814,315 |
Gan Su BHD Environmental Technology Co., Ltd [Member] | ||
Capital | 50,000,000 | |
Paid In Capital | 12,780,000 | 1,930,572 |
Qing Hai BHD New Energy Technology Co Ltd [Member] | ||
Decommissioning Fund Investments | 2,300,000 | |
Capital | ¥ 50,000,000 | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 55.00% | |
Paid In Capital | ¥ 2,450,000 | 370,102 |
Individuals [Member] | ||
Remaining Paid In Capital | ¥ 22,300,000 | $ 3,368,682 |
SIGNIFICANT ACCOUNTING POLICI51
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | |||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2018USD ($) | |
Accounting Policies [Line Items] | ||||||
Foreign Currency Transactions, Description | The translation has been made at the rate of ¥6.6198 = US$1.00, the approximate exchange rate prevailing on June 30, 2018. | The translation has been made at the rate of ¥6.6198 = US$1.00, the approximate exchange rate prevailing on June 30, 2018. | ||||
Allowances On Specific Advances | 100.00% | 100.00% | ||||
Purchase Advances Obtainment Of Sales Contract Bid Pending | ¥ 1,508,491 | $ 227,876 | ||||
PreContract Costs Paid | 1,500,000 | $ 200,000 | ¥ 200,000 | |||
Purchase Advances Paid | 4,200,000 | 600,000 | 4,600,000 | |||
Purchase Advances Prepaid | 7,400,000 | 1,100,000 | 7,100,000 | |||
Selling and Marketing Expense | 8,013,353 | 1,210,513 | 4,458,218 | ¥ 5,630,715 | ||
Provision for Doubtful Accounts Relating to Purchase Advances | 98,500 | 14,880 | ||||
Allowance for Doubtful Accounts Relating to Purchase Advances Current | 98,500 | $ 14,880 | ||||
Cost-method Investments, Other than Temporary Impairment | ¥ 4,037,736 | $ 609,948 | 0 | $ 0 | 0 | |
Use Rights [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Finite-Lived Intangible Asset, Useful Life | 50 years | 50 years | ||||
Shipping and Handling [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Selling and Marketing Expense | ¥ 1,170,358 | $ 176,797 | ¥ 752,656 | ¥ 1,167,117 | ||
Minimum [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Deferred Revenue Percentage | 5.00% | 5.00% | ||||
Maximum [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Deferred Revenue Percentage | 10.00% | 10.00% | ||||
Motor vehicles [Member] | Minimum [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | ||||
Motor vehicles [Member] | Maximum [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | ||||
Office Equipment [Member] | Minimum [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 2 years | 2 years | ||||
Office Equipment [Member] | Maximum [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | 5 years | ||||
Leasehold Improvements [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the lease term or the estimated useful life | Shorter of the lease term or the estimated useful life | ||||
Production equipment [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years |
TRADE ACCOUNTS RECEIVABLE, NE52
TRADE ACCOUNTS RECEIVABLE, NET (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | |
Third Party | ||||
Total - third-party, net | ¥ 24,254,007 | $ 3,663,858 | ¥ 39,425,911 | |
Third Party [Member] | ||||
Third Party | ||||
Trade accounts receivable | 27,319,241 | 4,126,898 | 43,691,416 | |
Allowance for doubtful accounts | (3,065,234) | (463,040) | (4,265,505) | |
Third Party - long-term | ||||
Allowance for doubtful accounts | (187,171) | (28,275) | 0 | |
Total - long-term trade accounts receivable, net | 4,212,829 | 636,398 | 0 | |
Beijing Yabei Nuoda Science and Technology Co Ltd [Member] | ||||
Third Party - long-term | ||||
Trade accounts receivable | [1] | ¥ 4,400,000 | $ 664,673 | ¥ 0 |
[1] | The receivable from Beijing Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed in August, 2018, the outstanding balance was to be collected in five installments during the period from December 2018 to December 2020. Based on the repayment agreement, the Company expects to collect ¥1,954,978 ($295,323) before June 30, 2019, ¥3,100,000 ($468,292) before June 30, 2020 and ¥1,300,000 ($196,380) before December 31, 2020, respectively. No interest is required per the settlement agreement. |
TRADE ACCOUNTS RECEIVABLE, NE53
TRADE ACCOUNTS RECEIVABLE, NET (Details 1) | 12 Months Ended | ||||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Charge to (reversal of) expense | ¥ (841,242) | $ (127,080) | ¥ 1,766,286 | ¥ 14,475,074 | |||
Third Party [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Beginning balance | 4,265,505 | [1] | 644,356 | 4,814,577 | [1] | ||
Charge to (reversal of) expense | (1,013,100) | (153,041) | 1,137,238 | 1,650,745 | |||
Less: write-off | 0 | 0 | (1,686,310) | ||||
Ending balance | ¥ 3,252,405 | $ 491,315 | ¥ 4,265,505 | [1] | ¥ 4,814,577 | [1] | |
[1] | The receivable from Beijing Yabei Nuoda was recognized primarily from the sale of automation system and services based on written contracts. Based on the repayment agreement signed in August, 2018, the outstanding balance was to be collected in five installments during the period from December 2018 to December 2020. Based on the repayment agreement, the Company expects to collect ¥1,954,978 ($295,323) before June 30, 2019, ¥3,100,000 ($468,292) before June 30, 2020 and ¥1,300,000 ($196,380) before December 31, 2020, respectively. No interest is required per the settlement agreement. |
TRADE ACCOUNTS RECEIVABLE, NE54
TRADE ACCOUNTS RECEIVABLE, NET (Details Textual) | 12 Months Ended | ||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Jun. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for Doubtful Accounts | ¥ (841,242) | $ (127,080) | ¥ 1,766,286 | ¥ 14,475,074 | |
Contract Receivable, Due in Next Twelve Months | 1,954,978 | $ 295,323 | |||
Contract Receivable, Due in Year Two | 3,100,000 | 468,292 | |||
Contract Receivable, Due in Year Three | 1,300,000 | $ 196,380 | |||
Third Party [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for Doubtful Accounts | ¥ (1,013,100) | $ (153,041) | ¥ 1,137,238 | ¥ 1,650,745 |
NOTES RECEIVABLE (Details Textu
NOTES RECEIVABLE (Details Textual) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes, Loans and Financing Receivable, Net, Current | ¥ 3,995,962 | $ 603,638 | ¥ 6,112,960 |
OTHER RECEIVABLES, NET (Details
OTHER RECEIVABLES, NET (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2016CNY (¥) | |
Current Portion | ||||||
Total | ¥ 7,320,953 | $ 1,105,918 | ¥ 4,106,510 | |||
Third Party [Member] | ||||||
Current Portion | ||||||
Loans to third parties | [1] | 2,640,469 | 398,875 | 1,115,720 | ||
Business advances to officers and staffs | [2] | 1,787,866 | 270,079 | 2,999,761 | ||
Deposits for projects | 1,665,002 | 251,518 | 1,189,329 | |||
VAT recoverable | 1,438,949 | 217,370 | 0 | |||
Others | 690,597 | 104,323 | 307,119 | |||
Allowance for doubtful accounts | (901,930) | (136,247) | (1,505,419) | $ (227,412) | ¥ (1,277,807) | |
Total | ¥ 7,320,953 | $ 1,105,918 | ¥ 4,106,510 | |||
[1] | 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. | |||||
[2] | Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. |
OTHER RECEIVABLES, NET (Detai57
OTHER RECEIVABLES, NET (Details 1) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Other Receivables [Line Items] | ||||
Charge to expense | ¥ 109,302 | $ 16,511 | ¥ 247,612 | ¥ 455,574 |
Third Party [Member] | ||||
Other Receivables [Line Items] | ||||
Beginning balance | 1,505,419 | 227,412 | 1,277,807 | |
Charge to expense | 109,302 | 16,511 | 247,612 | |
Less: write-off | (712,791) | (107,676) | (20,000) | |
Ending balance | ¥ 901,930 | $ 136,247 | ¥ 1,505,419 | ¥ 1,277,807 |
OTHER RECEIVABLES, NET (Detai58
OTHER RECEIVABLES, NET (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Other Receivables [Line Items] | ||||
Provision for Other Credit Losses | ¥ 109,302 | $ 16,511 | ¥ 247,612 | ¥ 455,574 |
PURCHASE ADVANCES, NET (Details
PURCHASE ADVANCES, NET (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Purchase Advances [Line Items] | |||
Total | ¥ 12,654,546 | $ 1,911,621 | ¥ 11,476,000 |
Third Party [Member] | |||
Purchase Advances [Line Items] | |||
Capitalized pre-contract costs | 1,508,491 | 227,876 | 151,545 |
Capitalized contract costs | 4,221,942 | 637,775 | 4,634,689 |
Prepayment for others | 7,376,745 | 1,114,345 | 7,091,556 |
Allowance for doubtful accounts | (452,632) | (68,375) | (401,790) |
Total | ¥ 12,654,546 | $ 1,911,621 | ¥ 11,476,000 |
PURCHASE ADVANCES, NET (Detai60
PURCHASE ADVANCES, NET (Details 1) - Third Party [Member] | 12 Months Ended | ||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | |
Beginning balance | ¥ 401,790 | $ 60,695 | ¥ 16,591,247 |
Charge to expense | 62,556 | 9,450 | 381,436 |
Less: write-off | (11,714) | (1,770) | (16,570,893) |
Ending balance | ¥ 452,632 | $ 68,375 | ¥ 401,790 |
PURCHASE ADVANCES, NET (Detai61
PURCHASE ADVANCES, NET (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Purchase Advances [Line Items] | ||||
Provision For Advances on Purchases | ¥ 62,556 | $ 9,450 | ¥ 381,436 | ¥ 12,368,755 |
INVENTORIES (Details)
INVENTORIES (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2016CNY (¥) |
Inventory [Line Items] | |||||
Small component parts | ¥ 55,726 | $ 8,418 | ¥ 55,726 | ||
Purchased goods and raw materials | 59,328 | 8,962 | 51,617 | ||
Work in process and goods on site | 5,155,215 | 778,758 | 1,842,411 | ||
Finished goods | 2,888,096 | 436,281 | 4,702,883 | ||
Allowance for slow moving inventory | (1,399,524) | (211,415) | (4,024,663) | $ (607,974) | ¥ (5,398,179) |
Total inventories, net | ¥ 6,758,841 | $ 1,021,004 | ¥ 2,627,974 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) | 12 Months Ended | ||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | |
Beginning balance | ¥ 4,024,663 | $ 607,974 | ¥ 5,398,179 |
Charge to cost of sales | 65,245 | 9,856 | 0 |
Less: write-off | (2,690,384) | (406,415) | (1,373,516) |
Ending balance | ¥ 1,399,524 | $ 211,415 | ¥ 4,024,663 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Inventory [Line Items] | ||||
Provision For Inventories | ¥ 65,245 | $ 9,856 | ¥ 0 | ¥ 2,428,288 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | ¥ 7,305,570 | $ 1,103,594 | ¥ 6,172,460 |
Less: Accumulated depreciation | (4,134,461) | (624,560) | (3,404,490) |
Property and equipment, net | 3,171,109 | 479,034 | 2,767,970 |
Construction in progress | 11,779,784 | 1,779,477 | 0 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 4,456,156 | 673,156 | 4,116,847 |
Office equipment and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,239,914 | 187,304 | 1,139,587 |
Production equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | ¥ 1,609,500 | $ 243,134 | ¥ 916,026 |
PROPERTY AND EQUIPMENT, NET (66
PROPERTY AND EQUIPMENT, NET (Details Textual) | Aug. 04, 2017CNY (¥) | Aug. 04, 2017USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Jun. 30, 2018USD ($) |
Property, Plant and Equipment [Line Items] | |||||||
Payments To Acquire Land Use Right | ¥ 1,361,969 | $ 205,742 | ¥ 1,361,969 | $ 205,742 | ¥ 0 | ¥ 0 | |
Construction in Progress, Gross | 11,779,784 | 0 | $ 1,779,477 | ||||
Additional Cost Incurred | 6,930,000 | 1,050,000 | |||||
Depreciation, Depletion and Amortization, Nonproduction | 1,119,049 | 169,046 | 856,735 | 955,083 | |||
Gain (Loss) on Disposition of Property Plant Equipment | ¥ 78,285 | $ 11,826 | ¥ 35,919 | ¥ 40,688 |
LAND USE RIGHTS (Details)
LAND USE RIGHTS (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Land use rights | ¥ 1,361,969 | $ 205,742 | ¥ 0 |
Less: accumulated amortization | (26,843) | (4,055) | 0 |
Land use rights, net | ¥ 1,335,126 | $ 201,687 | ¥ 0 |
LAND USE RIGHTS (Details 1)
LAND USE RIGHTS (Details 1) - Jun. 30, 2018 - Use Rights [Member] | CNY (¥) | USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | ¥ 27,239 | $ 4,115 |
2,020 | 27,239 | 4,115 |
2,021 | 27,239 | 4,115 |
2,022 | 27,239 | 4,115 |
2,023 | 27,239 | 4,115 |
Thereafter | 1,198,931 | 181,112 |
Total | ¥ 1,335,126 | $ 201,687 |
LAND USE RIGHTS (Details Textua
LAND USE RIGHTS (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Use Rights [Member] | ||||
Amortization of Intangible Assets | ¥ 26,843 | $ 4,055 | ¥ 0 | ¥ 0 |
INVESTMENT IN UNCONSOLIDATED 70
INVESTMENT IN UNCONSOLIDATED ENTITY (Details Textual) | 1 Months Ended | 12 Months Ended | |||||
Aug. 21, 2018CNY (¥)shares | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2017CNY (¥)shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016CNY (¥) | Dec. 15, 2017 | |
Payments to Acquire Businesses and Interest in Affiliates | ¥ 4,037,736 | $ 609,948 | ¥ 0 | ¥ 0 | |||
Cost-method Investments, Other than Temporary Impairment | ¥ 4,037,736 | $ 609,948 | ¥ 0 | $ 0 | ¥ 0 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | shares | 1,563,667 | 1,563,667 | 508,909 | 508,909 | |||
Future Gas Station Beijing Technology Ltd [Member] | |||||||
Cost Method Investment Ownership Percentage | 8.00% | ||||||
Subsequent Event [Member] | |||||||
Payments to Acquire Additional Interest in Subsidiaries | ¥ | ¥ 10,000,000 | ||||||
Cost Method Investment Ownership Percentage | 43.00% | ||||||
Subsequent Event [Member] | Future Gas Station Beijing Technology Ltd [Member] | |||||||
Payments to Acquire Businesses and Interest in Affiliates | ¥ | ¥ 2,000,000 | ||||||
Cost Method Investments, Additional Information | As consideration for increasing its affiliates’ interest in FGS from 8% to 43%, Recon will (1) pay a total of RMB 10 million in cash to FGS in five installments and (2) issue 2,435,284 restricted ordinary shares of Recon (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording Recon’s corresponding interest at the local governmental agency. | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | shares | 2,435,284 | ||||||
Subsequent Event [Member] | Minimum [Member] | |||||||
Equity Method Investment, Ownership Percentage | 8.00% | ||||||
Subsequent Event [Member] | Maximum [Member] | |||||||
Equity Method Investment, Ownership Percentage | 43.00% |
OTHER PAYABLES (Details)
OTHER PAYABLES (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Other Payables [Line Items] | |||
Total | ¥ 3,170,670 | $ 478,969 | ¥ 3,351,900 |
Third Party [Member] | |||
Other Payables [Line Items] | |||
Service | 1,356,676 | 204,944 | 1,518,033 |
Distributors and employees | 90,130 | 13,615 | 207,005 |
Funds collected on behalf of others | 895,022 | 135,204 | 895,022 |
Advances from customers | 157,856 | 23,846 | 130,100 |
Accrued expenses | 411,898 | 62,222 | 193,274 |
Others | 259,088 | 39,138 | 408,466 |
Total | ¥ 3,170,670 | $ 478,969 | ¥ 3,351,900 |
OTHER PAYABLES (Details 1)
OTHER PAYABLES (Details 1) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Other Payables [Line Items] | |||
Total | ¥ 3,170,670 | $ 478,969 | ¥ 3,351,900 |
Related Party [Member] | |||
Other Payables [Line Items] | |||
Expenses paid by the major shareholders | 2,767,349 | 418,041 | 3,062,709 |
Due to family member of the owner of BHD | 193,143 | 29,177 | 0 |
Due to management staff for costs incurred on behalf of the Company | 250,965 | 37,911 | 251,310 |
Total | ¥ 3,211,457 | $ 485,129 | ¥ 3,314,019 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Taxes Payable [Line Items] | |||
VAT payable | ¥ 382,361 | $ 57,760 | ¥ 632,831 |
Income tax payable | 43,556 | 6,580 | 43,556 |
Other taxes payable | 5,996 | 906 | 8,334 |
Total taxes payable | ¥ 431,913 | $ 65,246 | ¥ 684,721 |
SHORT-TERM BORROWINGS DUE TO 74
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | |
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | ¥ 9,018,065 | $ 1,362,287 | ¥ 10,168,008 | |
Short Term Borrowings One [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 62,692 |
Short Term Borrowings Two [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 1,260,165 |
Short Term Borrowings Three [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 1,420,223 |
Short Term Borrowings Four [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 722,262 |
Short Term Borrowings Five [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 541,187 |
Short Term Borrowings Six [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 804,530 |
Short Term Borrowings Seven [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 350,000 |
Short Term Borrowing Eight [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 2,529,428 |
Short Term Borrowings Nine [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | [1] | 0 | 0 | 2,477,521 |
Short Term Borrowings Ten [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | 5,011,782 | 757,090 | 0 | |
Short Term Borrowings Eleven [Member] | ||||
Short-term Debt [Line Items] | ||||
Total short-term borrowings due to related parties | ¥ 4,006,283 | $ 605,197 | ¥ 0 | |
[1] | The Company repaid the loan in full on maturity date. |
SHORT-TERM BORROWINGS DUE TO 75
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Short Term Borrowings [Member] | ||||
Short-term Debt [Line Items] | ||||
Interest Expense, Related Party | ¥ 325,185 | $ 49,123 | ¥ 548,878 | ¥ 487,692 |
Short Term Borrowings One [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Aug. 24, 2017 | Aug. 24, 2017 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Two [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Aug. 31, 2017 | Aug. 31, 2017 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Three [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Aug. 31, 2017 | Aug. 31, 2017 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Four [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 11, 2017 | Sep. 11, 2017 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Five [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 16, 2017 | Sep. 16, 2017 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Six [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 18, 2017 | Sep. 18, 2017 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Seven [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Dec. 31, 2017 | Dec. 31, 2017 | ||
Short Term Borrowings Eight [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | May 10, 2018 | May 10, 2018 | ||
Debt Instrument, Interest Rate Percentage | 5.22% | 5.22% | ||
Short Term Borrowings Nine [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Jun. 7, 2018 | Jun. 7, 2018 | ||
Debt Instrument, Interest Rate Percentage | 5.22% | 5.22% | ||
Short Term Borrowings Ten [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Dec. 15, 2018 | Dec. 15, 2018 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% | ||
Short Term Borrowings Eleven [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt Instrument, Maturity Date | Mar. 21, 2019 | Mar. 21, 2019 | ||
Debt Instrument, Interest Rate Percentage | 5.655% | 5.655% |
LONG-TERM BORROWINGS DUE TO R76
LONG-TERM BORROWINGS DUE TO RELATED PARTY (Details) - Related Party Member [Member] | Jun. 30, 2019CNY (¥) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Long-term borrowing from a Founder, monthly payments of ¥126,135 inclusive of interest at 8.90%, ten years loan, due in November 2027. | ¥ 9,663,729 | $ 1,459,822 | ¥ 0 | |
Less: current portion | ¥ (108,749) | (719,895) | (108,749) | 0 |
Total long-term borrowings due to related party | ¥ 8,943,834 | $ 1,351,073 | ¥ 0 |
LONG-TERM BORROWINGS DUE TO R77
LONG-TERM BORROWINGS DUE TO RELATED PARTY (Details) [Parenthetical] - Related Party Member [Member] | 12 Months Ended |
Jun. 30, 2018CNY (¥) | |
Debt Instrument, Term | 10 years |
Long-term Borrowings [Member] | |
Debt Instrument, Periodic Payment | ¥ 126,135 |
Debt Instrument, Interest Rate, Stated Percentage | 8.90% |
Debt Instrument, Maturity Date, Description | due in November 2027 |
LONG-TERM BORROWINGS DUE TO R78
LONG-TERM BORROWINGS DUE TO RELATED PARTY (Details 1) - Related Party Member [Member] | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
2,019 | ¥ 719,895 | $ 108,749 | |
2,020 | 747,630 | 112,938 | |
2,021 | 816,952 | 123,410 | |
2,022 | 892,701 | 134,853 | |
2,023 | 975,474 | 147,357 | |
Thereafter | 5,511,077 | 832,515 | |
Total | ¥ 9,663,729 | $ 1,459,822 | ¥ 0 |
LONG-TERM BORROWINGS DUE TO R79
LONG-TERM BORROWINGS DUE TO RELATED PARTY (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Longterm Borrowings [Member] | ||||
Interest Expense, Long-term Debt | ¥ 546,676 | $ 82,582 | ¥ 0 | ¥ 0 |
ORDINARY SHARES (Details Textua
ORDINARY SHARES (Details Textual) | Nov. 11, 2017CNY (¥)shares | Nov. 11, 2017USD ($)$ / sharesshares | Jan. 22, 2018USD ($)$ / sharesshares | Jan. 19, 2018shares | Nov. 20, 2017USD ($)$ / sharesshares | Jul. 27, 2016USD ($)shares | Oct. 18, 2015shares | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2018USD ($) |
Equity [Line Items] | |||||||||||||
Proceeds from Issuance of Common Stock | ¥ 65,004,531 | $ 9,819,712 | ¥ 0 | ¥ 171,919 | |||||||||
Percentage Transfer Of Profit To Statutory Reserves | 10.00% | 10.00% | |||||||||||
Transfer Of Profit To Statutory Reserves Up to Certain Percentage Of Registered Capital | 50.00% | 50.00% | |||||||||||
Appropriated retained earnings | ¥ 4,148,929 | ¥ 4,148,929 | $ 626,745 | ||||||||||
Stock Issued During Period, Value, New Issues | 65,004,531 | $ 9,819,712 | ¥ 158,268 | $ 23,908 | |||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 221,268 | 221,268 | |||||||||||
Stock Issued During Period, Value, Issued for Services | ¥ 1,554,908 | $ 234,888 | ¥ 1,554,908 | $ 234,888 | |||||||||
Shares Issued, Price Per Share | $ / shares | $ 1.06 | ||||||||||||
Xinhaixin International Holdings Limited [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 3,000,000 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 800,000 | ||||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 876,000 | ||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 963,600 | ||||||||||||
Board of Directors Chairman [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Number of Unregistered Restricted Shares to be Issued | shares | 3,000,000 | ||||||||||||
Gross Value of Unregistered Restricted Shares to be Received | $ | $ 4,800,000 | ||||||||||||
Net Value of Unregistered Restricted Shares to be Received | $ | 4,500,000 | ||||||||||||
Board of Directors Chairman [Member] | Restricted Stock [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Proceeds from Issuance or Sale of Equity | $ | $ 2,400,000 | ||||||||||||
Share Price | $ / shares | $ 1.60 | ||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 5,300,000 | ||||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 5,963,550 | ||||||||||||
Share Price | $ / shares | $ 1.66 | ||||||||||||
Number of Common Stock to be Issued | shares | 3,592,500 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Options, Shares, Outstanding at Beginning | 815,600 | 815,600 |
Stock Options, Shares, Granted | 0 | 0 |
Stock Options, Shares, Forfeited | 0 | 0 |
Stock Option, Shares, Exercised | 0 | 0 |
Stock Options, Shares, Outstanding at Ending | 815,600 | 815,600 |
Stock Options, Weighted Average Exercise Price Per share, Outstanding at Beginning | $ 3.04 | $ 3.04 |
Stock Options, Weighted Average Exercise Price Per share, Granted | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Forfeited | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Exercised | 0 | 0 |
Stock Options, Weighted Average Exercise Price Per share, Outsatnding at Ending | $ 3.04 | $ 3.04 |
STOCK-BASED COMPENSATION (Det82
STOCK-BASED COMPENSATION (Details 1) | 12 Months Ended |
Jun. 30, 2018$ / 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) | 1 year 29 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 6 |
Exercisable Options, Number (in shares) | 193,000 |
Exercisable Options, Average Remaining Contractual life (years) | 1 year 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) | 3 years 8 months 26 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 2.96 |
Exercisable Options, Number (in shares) | 222,600 |
Exercisable Options, Average Remaining Contractual life (years) | 3 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) | 6 years 7 months 2 days |
Exercisable Options, Average Exercise Price | $ / shares | $ 1.65 |
Exercisable Options, Number (in shares) | 400,000 |
Exercisable Options, Average Remaining Contractual life (years) | 6 years 7 months 2 days |
STOCK-BASED COMPENSATION (Det83
STOCK-BASED COMPENSATION (Details 2) - shares | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted - Shares | 0 | 0 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested, Beginning Balance - Shares | 4,925,667 | 1,076,788 |
Granted - Shares | 900,000 | 5,466,000 |
Vested - Shares | (1,783,667) | (1,617,121) |
Non-vested, Ending Balance - Shares | 4,042,000 | 4,925,667 |
STOCK-BASED COMPENSATION (Det84
STOCK-BASED COMPENSATION (Details 3) - Restricted Stock [Member] | 12 Months Ended |
Jun. 30, 2018shares | |
Outstanding Restricted Shares, Number | 4,042,000 |
Fair Value per Share 0.88 [Member] | |
Outstanding Restricted Shares, Number | 260,333 |
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 3 months 18 days |
Fair Value per Share 1.10 [Member] | |
Outstanding Restricted Shares, Number | 596,667 |
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 1 year 25 days |
Fair Value per Share 1.02 [Member] | |
Outstanding Restricted Shares, Number | 900,000 |
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 2 years 3 months 14 days |
Fair Value per Share 1.35 [Member] | |
Outstanding Restricted Shares, Number | 2,210,000 |
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 1 year |
Fair Value per Share 1.28 [Member] | |
Outstanding Restricted Shares, Number | 75,000 |
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 9 months |
STOCK-BASED COMPENSATION (Det85
STOCK-BASED COMPENSATION (Details Textual) | Nov. 11, 2017CNY (¥)shares | Nov. 11, 2017USD ($)shares | Oct. 13, 2017USD ($)$ / sharesshares | Apr. 05, 2017USD ($)$ / sharesshares | Dec. 09, 2016USD ($)$ / shares | Nov. 10, 2016USD ($)$ / sharesshares | Aug. 27, 2018 | Nov. 17, 2017shares | Jul. 27, 2017shares | Apr. 24, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Jan. 23, 2017shares | Oct. 27, 2016shares | Jul. 27, 2016USD ($)$ / sharesshares | Oct. 18, 2015USD ($)$ / sharesshares | Jan. 31, 2015USD ($)$ / sharesshares | Jan. 31, 2015$ / shares¥ / shares | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2017CNY (¥)shares | Jun. 30, 2016CNY (¥) | Jun. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 1 year | ||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 221,268 | 221,268 | ||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | ¥ 1,554,908 | $ 234,888 | ¥ 1,554,908 | $ 234,888 | ||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.35 | |||||||||||||||||||||
Share-based Compensation | ¥ 840,286 | $ 126,935 | ¥ 2,039,446 | ¥ 2,096,162 | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 4,063,500 | |||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 1,563,667 | 1,563,667 | 508,909 | |||||||||||||||||||
December 2016 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 800,000 | 800,000 | ||||||||||||||||||||
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 | 900,000 | 900,000 | 5,466,000 | |||||||||||||||||||
Stock or Unit Option Plan Expense | ¥ 14,621,838 | $ 2,208,804 | ¥ 12,904,723 | 3,595,146 | ||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 876,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 963,600 | |||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.10 | |||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 800,000 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 4,042,000 | 4,042,000 | ||||||||||||||||||||
Shares, Outstanding | 1,563,667 | 1,563,667 | 508,909 | |||||||||||||||||||
Restricted Stock [Member] | July 2016 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 250,000 | |||||||||||||||||||||
Restricted Stock [Member] | July 2016 [Member] | Consulting firm [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 250,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 275,000 | |||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.10 | |||||||||||||||||||||
Restricted Stock [Member] | November 2016 [Member] | Independent Company [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 months | |||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 330,000 | |||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 300,993 | |||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 0.9121 | |||||||||||||||||||||
Restricted Stock [Member] | March 2017 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 125,000 | |||||||||||||||||||||
Restricted Stock [Member] | March 2017 [Member] | Consulting firm [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 100,000 | 200,000 | ||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 256,020 | |||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.2801 | |||||||||||||||||||||
Restricted Stock [Member] | April 2017 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 300,000 | |||||||||||||||||||||
Restricted Stock [Member] | April 2017 [Member] | Independent Company [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 300,000 | 500,000 | ||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 390,000 | $ 555,050 | ||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.30 | $ 1.101 | ||||||||||||||||||||
Restricted Stock [Member] | October 2017 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.02 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 919,800 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 900,000 | |||||||||||||||||||||
Restricted Stock For Services [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 | 9 months | 9 months | ||||||||||||||||||||
Stock or Unit Option Plan Expense | ¥ 3,050,896 | $ 460,874 | ¥ 8,399,240 | 2,287,415 | ||||||||||||||||||
Share-based Compensation | ¥ 660,000 | $ 100,000 | ||||||||||||||||||||
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 | |||||||||||||||||||||
Employees And Non Employee Director [Member] | Restricted Stock [Member] | October 2015 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 260,332 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 520,667 | |||||||||||||||||||||
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 3 months 22 days | 1 year 3 months 22 days | ||||||||||||||||||||
Share-based Compensation | ¥ 18,570,000 | $ 2,800,000 | ||||||||||||||||||||
Management [Member] | Performance Shares [Member] | December 2016 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 3,010,000 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,210,000 | 2,210,000 | 2,210,000 | |||||||||||||||||||
Mr Yin Shenping [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 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 | $ | $ 495,000 | |||||||||||||||||||||
Restricted Stock Closing Price | $ / shares | $ 1.65 | $ 1.65 | ||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 150,000 | |||||||||||||||||||||
Stock Option [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Stock or Unit Option Plan Expense | ¥ 840,286 | $ 126,935 | ¥ 2,039,446 | ¥ 2,096,162 | ||||||||||||||||||
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 | |||||||||||||||||||||
Exercise price (per share) | $ / shares | $ 1.65 | $ 1.65 | ||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Expiration Date | Jan. 31, 2025 | |||||||||||||||||||||
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 | ||||||||||||||||||||
Share-based Compensation Award, Tranche One [Member] | Employees And Non Employee Director [Member] | Restricted Stock [Member] | October 2015 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 19,000 | |||||||||||||||||||||
Share-based Compensation Award, Tranche One [Member] | Employees [Member] | Restricted Stock [Member] | July 2016 [Member] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 596,667 | 596,667 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 298,333 | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 19,000 |
INCOME TAX (Details)
INCOME TAX (Details) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Income Taxes [Line Items] | ||||
Outside China areas | ¥ (21,599,806) | $ (3,262,908) | ¥ (28,079,918) | ¥ (14,257,066) |
China | (23,759,198) | (3,589,113) | (2,815,983) | (26,079,666) |
Total | ¥ (45,359,004) | $ (6,852,021) | ¥ (30,895,901) | ¥ (40,336,732) |
INCOME TAX (Details 1)
INCOME TAX (Details 1) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Income Taxes [Line Items] | |||
Allowance for doubtful receivables | ¥ 703,545 | $ 106,279 | ¥ 925,907 |
Loss from investment in unconsolidated entity | 605,660 | 91,492 | 0 |
Net operating loss carryforwards | 6,911,270 | 1,044,030 | 3,425,411 |
Less: Valuation allowance | (8,220,475) | (1,241,801) | (4,351,318) |
Deferred income tax assets, net | ¥ 0 | $ 0 | ¥ 0 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Income tax benefits calculated at statutory rates | ¥ (5,679,505) | $ (857,957) | ¥ (580,551) | ¥ (6,230,384) |
Nondeductible expenses and others | (65,427) | (9,884) | 93,709 | 1,774,956 |
Benefit of favorable rate for high-technology companies | 2,009,486 | 303,557 | 232,221 | 2,492,154 |
Benefit of revenue exempted from enterprise income tax | (55,748) | (8,421) | (19,919) | (43,363) |
Change in valuation allowances | 3,869,157 | 584,482 | 602,583 | 3,748,735 |
Tax refund | (61,733) | (9,325) | (20,143) | (1,196,253) |
Provision for income tax | ¥ 16,230 | $ 2,452 | ¥ 307,900 | ¥ 545,845 |
INCOME TAX (Details 3)
INCOME TAX (Details 3) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Income Taxes [Line Items] | ||||
Current income tax provision | ¥ 16,230 | $ 2,452 | ¥ 307,900 | ¥ 0 |
Adjust over accrued tax of prior years | 0 | 0 | 0 | (1,196,253) |
Deferred income taxes provision | 0 | 0 | 0 | 1,742,098 |
Provision for income tax | ¥ 16,230 | $ 2,452 | ¥ 307,900 | ¥ 545,845 |
INCOME TAX (Details Textual)
INCOME TAX (Details Textual) | 12 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% |
Nanjing Recon Technology Co Ltd [Member] | |
Income Taxes [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 15.00% |
Beijing Bhd Petroleum Technology Co Ltd [Member] | |
Income Taxes [Line Items] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 15.00% |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) |
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | ¥ 207,490,280 | $ 31,343,890 | ¥ 123,436,043 | |
Accumulated other comprehensive loss | 1,516,093 | 229,024 | (249,156) | |
Total non-controlling interest | 10,861,930 | 1,640,824 | 8,464,843 | |
Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | 5,551,000 | 838,544 | 1,851,000 | $ 273,113 |
Unappropriated retained earnings | 5,341,633 | 806,918 | 6,644,546 | 980,395 |
Accumulated other comprehensive loss | (30,703) | (4,638) | (30,703) | (4,531) |
Total non-controlling interest | 10,861,930 | $ 1,640,824 | 8,464,843 | $ 1,248,977 |
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 | 3,491,859 | 3,491,859 | ||
Accumulated other comprehensive loss | (11,853) | (11,853) | ||
Total non-controlling interest | 3,680,006 | ¥ 3,680,006 | ||
Gan Su BHD [Member] | Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | 3,500,000 | |||
Unappropriated retained earnings | (548,899) | |||
Accumulated other comprehensive loss | 0 | |||
Total non-controlling interest | 2,951,101 | |||
Qinghai BHD [Member] | Noncontrolling Interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Paid-in capital | 200,000 | |||
Unappropriated retained earnings | (754,014) | |||
Accumulated other comprehensive loss | 0 | |||
Total non-controlling interest | ¥ (554,014) |
CONCENTRATIONS (Details Textual
CONCENTRATIONS (Details Textual) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Supplier Two [Member] | Accounts Payable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 58.00% | 49.00% | |
Supplier Three [Member] | Accounts Payable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 43.00% | ||
Three Suppliers Concentration Risk [Member] | Accounts Payable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 60.00% | 61.00% | 67.00% |
China National Petroleum Corporation [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 45.00% | 72.00% | 75.00% |
China National Petroleum Corporation [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 29.00% | 42.00% | 59.00% |
Customer One [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 43.00% | 10.00% | |
Customer One [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 22.00% | 22.00% |
Customer Two [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 16.00% |
COMMITMENTS AND CONTINGENCY (De
COMMITMENTS AND CONTINGENCY (Details) - Jun. 30, 2018 | CNY (¥) | USD ($) |
Commitment and Contingencies [Line Items] | ||
2,019 | ¥ 2,623,077 | $ 396,247 |
2,020 | 1,332,923 | 201,354 |
Total | ¥ 3,956,000 | $ 597,601 |
COMMITMENTS AND CONTINGENCY (94
COMMITMENTS AND CONTINGENCY (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Commitment and Contingencies [Line Items] | ||||
Severance Costs | ¥ 2,000,000 | $ 300,000 | ||
Office Leases [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Operating Leases, Rent Expense | ¥ 28,596,809 | $ 432,008 | ¥ 1,664,128 | ¥ 1,323,170 |
RELATED PARTY TRANSACTIONS AN95
RELATED PARTY TRANSACTIONS AND BALANCES (Details) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Purchases from related parties | ¥ 0 | $ 0 | ¥ 0 | ¥ 927,756 |
Huanghua Heng Da Xiang Tong Manufacture Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | 0 | 0 | 0 | 338,862 |
Xiamen Huangsheng Hitek Computer Network Co. Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related parties | ¥ 0 | $ 0 | ¥ 0 | ¥ 588,894 |
RELATED PARTY TRANSACTIONS AN96
RELATED PARTY TRANSACTIONS AND BALANCES (Details 1) | 12 Months Ended | |
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | |
Monthly Payment [Member] | ||
Operating Leases, Rent Expense | ¥ 1,680,000 | $ 250,000 |
Bhd [Member] | ||
Lessee, Operating Lease, Period of Contract | January 1, 2018 - December 31, 2018 | January 1, 2018 - December 31, 2018 |
Recon BJ [Member] | ||
Lessee, Operating Lease, Period of Contract | July 1, 2016 - June 30, 2018 | July 1, 2016 - June 30, 2018 |
Yin Shenping [Member] | Nanjing Recon [Member] | ||
Lessee, Operating Lease, Period of Contract | April 1, 2018 - March 31, 2020 | April 1, 2018 - March 31, 2020 |
Yin Shenping [Member] | Nanjing Recon [Member] | Monthly Payment [Member] | ||
Operating Leases, Rent Expense | ¥ 60,000 | $ 9,064 |
Yin Shenping [Member] | Recon BJ [Member] | Monthly Payment [Member] | ||
Operating Leases, Rent Expense | ¥ 10,000 | $ 1,511 |
Chen Guangqiang [Member] | Bhd [Member] | ||
Lessee, Operating Lease, Period of Contract | January 1, 2018 - December 31, 2018 | January 1, 2018 - December 31, 2018 |
Chen Guangqiang [Member] | Bhd [Member] | Monthly Payment [Member] | ||
Operating Leases, Rent Expense | ¥ 22,500 | $ 3,399 |
Mr Chen Family Member [Member] | Bhd [Member] | Monthly Payment [Member] | ||
Operating Leases, Rent Expense | ¥ 47,500 | $ 7,175 |
RELATED PARTY TRANSACTIONS AN97
RELATED PARTY TRANSACTIONS AND BALANCES (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Short-term borrowings from related parties | ¥ 0 | $ 0 | ¥ 300,000 | |
Expenses Paid By Related Party | 2,767,349 | 418,041 | 3,062,709 | |
Monthly Payment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating Leases, Rent Expense | 1,680,000 | $ 250,000 | ||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Short-term borrowings from related parties | 9,018,065 | 1,362,287 | 10,168,008 | |
Long-term borrowings from related parties | 9,663,729 | $ 1,459,822 | ¥ 0 | |
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, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2016CNY (¥) | Jun. 30, 2015CNY (¥) |
Current Assets | ||||||
Cash and cash equivalents | ¥ 45,340,578 | $ 6,849,237 | ¥ 3,809,279 | $ 575,437 | ¥ 1,817,620 | ¥ 12,344,929 |
Notes receivable | 3,995,962 | 603,638 | 6,112,960 | |||
Trade accounts receivable, net | 24,254,007 | 3,663,858 | 39,425,911 | |||
Purchase advances, net | 12,654,546 | 1,911,621 | 11,476,000 | |||
Total current assets | 100,834,569 | 15,232,270 | 68,387,075 | |||
Total Assets | 121,807,517 | 18,400,484 | 71,155,045 | |||
LIABILITIES | ||||||
Trade accounts payable | 8,754,347 | 1,322,449 | 8,352,870 | |||
Taxes payable | 431,913 | 65,246 | 684,721 | |||
Other liabilities | 3,170,670 | 478,969 | 3,351,900 | |||
Total Current Liabilities | 25,991,921 | 3,926,393 | 29,445,757 | |||
Total Liabilities | 34,935,755 | 5,277,466 | 29,445,757 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Current Assets | ||||||
Cash and cash equivalents | 7,336,672 | 1,108,292 | 3,506,540 | |||
Notes receivable | 3,995,962 | 603,638 | 6,112,960 | |||
Trade accounts receivable, net | 24,254,007 | 3,663,858 | 39,425,911 | |||
Purchase advances, net | 12,654,546 | 1,911,621 | 11,476,000 | |||
Other assets | 14,281,461 | 2,157,386 | 7,450,483 | |||
Total current assets | 62,522,648 | 9,444,795 | 67,971,894 | |||
Non-current assets | 20,966,716 | 3,167,273 | 2,757,404 | |||
Total Assets | 83,489,364 | 12,612,068 | 70,729,298 | |||
LIABILITIES | ||||||
Trade accounts payable | 8,754,347 | 1,322,449 | 8,352,870 | |||
Taxes payable | 278,184 | 42,023 | 684,721 | |||
Other liabilities | 14,730,356 | 2,225,197 | 16,372,863 | |||
Total Current Liabilities | 23,762,887 | 3,589,669 | 25,410,454 | |||
Non-current liabilities | 8,943,834 | 1,351,073 | 0 | |||
Total Liabilities | ¥ 32,706,721 | $ 4,940,742 | ¥ 25,410,454 |
VARIABLE INTEREST ENTITIES (D99
VARIABLE INTEREST ENTITIES (Details Textual) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenues | ¥ 84,712,046 | $ 12,796,768 | ¥ 60,054,462 | ¥ 42,728,277 |
Operating expenses | 45,075,081 | 6,809,130 | 46,574,986 | 47,158,012 |
Net income (loss) | 44,072,321 | 6,657,652 | 31,445,147 | 40,882,577 |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revenues | 84,712,046 | 12,796,768 | 60,054,462 | 42,728,277 |
Operating expenses | 22,441,733 | 3,390,092 | 18,074,743 | 31,590,843 |
Net income (loss) | ¥ (22,734,249) | $ (3,434,280) | ¥ (2,757,013) | ¥ (25,481,256) |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Revenues | ¥ 84,712,046 | $ 12,796,768 | ¥ 60,054,462 | ¥ 42,728,277 |
Automation product and software [Member] | ||||
Revenues | 18,989,924 | 2,868,655 | 22,399,066 | 26,171,906 |
Equipment and accessories [Member] | ||||
Revenues | 63,960,425 | 9,661,988 | 26,658,094 | 14,221,914 |
Oilfield environmental protection [Member] | ||||
Revenues | ¥ 1,761,697 | $ 266,125 | ¥ 10,997,302 | ¥ 2,334,457 |
SEGMENT REPORTING (Details 1)
SEGMENT REPORTING (Details 1) | 12 Months Ended | |||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Revenue | ¥ 84,712,046 | $ 12,796,768 | ¥ 60,054,462 | ¥ 42,728,277 |
Cost of revenue and related tax | 80,561,861 | 12,169,833 | 44,090,960 | 35,481,394 |
Gross profit | 4,150,185 | 626,935 | 15,963,502 | 7,246,883 |
Depreciation and amortization | 1,119,049 | 169,046 | 856,735 | 955,083 |
Total capital expenditures | 12,022,482 | 638,119 | 181,075 | |
Automation product and software [Member] | ||||
Revenue | 18,989,924 | 2,868,655 | 22,399,066 | 26,171,906 |
Cost of revenue and related tax | 17,036,393 | 12,593,429 | 20,548,568 | |
Gross profit | 1,953,531 | 9,805,637 | 5,623,338 | |
Depreciation and amortization | 48,127 | 39,846 | 67,091 | |
Total capital expenditures | 100,327 | 75,809 | 6,477 | |
Equipment and accessories [Member] | ||||
Revenue | 63,960,425 | 9,661,988 | 26,658,094 | 14,221,914 |
Cost of revenue and related tax | 62,115,400 | 22,023,851 | 13,126,589 | |
Gross profit | 1,845,025 | 4,634,243 | 1,095,325 | |
Depreciation and amortization | 1,044,079 | 816,889 | 887,992 | |
Total capital expenditures | 1,403,083 | 562,310 | 174,598 | |
Oilfield environmental protection [Member] | ||||
Revenue | 1,761,697 | $ 266,125 | 10,997,302 | 2,334,457 |
Cost of revenue and related tax | 1,410,068 | 9,473,680 | 1,806,237 | |
Gross profit | 351,629 | 1,523,622 | 528,220 | |
Depreciation and amortization | 26,843 | 0 | 0 | |
Total capital expenditures | ¥ 10,519,072 | ¥ 0 | ¥ 0 |
SEGMENT REPORTING (Details 2)
SEGMENT REPORTING (Details 2) | Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) |
Assets [Abstract] | |||
Assets | ¥ 121,807,517 | $ 18,400,484 | ¥ 71,155,045 |
Automation product and software [Member] | |||
Assets [Abstract] | |||
Assets | 53,284,643 | 8,049,284 | 35,865,376 |
Equipment and accessories [Member] | |||
Assets [Abstract] | |||
Assets | 40,365,472 | 6,097,688 | 35,289,669 |
Oilfield environmental protection [Member] | |||
Assets [Abstract] | |||
Assets | ¥ 28,157,402 | $ 4,253,512 | ¥ 0 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Apr. 05, 2017 | Dec. 09, 2016 | Aug. 27, 2018 |
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 25,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4,063,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 1 year | |
Restricted Stock Units (RSUs) [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,956,000 | ||
Subsequent Event [Member] | 2015 Equity Incentive Plan [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Subsequent Event [Member] | Restricted Stock [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 32,000 | ||
Subsequent Event [Member] | Restricted Stock Units (RSUs) [Member] | 2015 Equity Incentive Plan [Member] | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,503,680 |