Ionix Technology (IINX) 10-Q 14 Nov 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Nov. 14, 2018
Entity Registrant Name	IONIX TECHNOLOGY, INC.
Entity Central Index Key	1,528,308
Document Type	10-Q
Trading Symbol	IINX
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Common Stock [Member]
Entity Common Stock, Shares Outstanding		99,003,000
Preferred Stock [Member]
Entity Common Stock, Shares Outstanding		5,000,000

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Current Assets:
Cash	$ 304,583	$ 111,462
Accounts receivable - non-related parties	464,553	636,413
Accounts receivable - related parties		119,543
Inventory	507,440	226,839
Advances to suppliers - non-related parties	2,257	3,164
Advances to suppliers - related parties	268,388	206,194
Prepaid expenses and other current assets	29,981	20,592
Total Current Assets	1,577,202	1,324,207
Total Assets	1,577,202	1,324,207
Current Liabilities:
Accounts payable - non-related parties	110,275	264,171
Accounts payable - related parties	399,522	248,543
Advance from customers	34,117	59,546
Due to related parties	349,829	212,557
Accrued expenses and other current liabilities	105,265	125,733
Total Current Liabilities	999,008	910,550
Deferred tax liability	10,548	15,242
Total Liabilities	1,009,556	925,792
COMMITMENT AND CONTINGENCIES
Stockholders' Equity:
Preferred stock, $.0001 par value, 5,000,000 shares authorized 5,000,000 shares issued and outstanding	500	500
Common stock, $.0001 par value, 195,000,000 shares authorized 99,003,000 shares issued and outstanding	9,900	9,900
Additional paid in capital	237,246	237,246
Retained earnings	319,972	142,819
Accumulated other comprehensive income	28	7,950
Total Stockholders' Equity	567,646	398,415
Total Liabilities and Stockholders' Equity	$ 1,577,202	$ 1,324,207

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ .0001	$ .0001
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued	5,000,000	5,000,000
Preferred stock, outstanding	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ .0001	$ .0001
Common stock, authorized shares	195,000,000	195,000,000
Common stock, issued	99,003,000	99,003,000
Common stock, outstanding	99,003,000	99,003,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Total Revenues	$ 2,568,888	$ 381,541
Cost of revenues
Non-related parties	499,912	48,932
Related parties	1,779,811	271,651
Total Cost of Revenues	2,279,723	320,583
Gross profit	289,165	60,958
Operating expenses
Selling, general and administrative expense	62,989	69,553
Total operating expenses	62,989	69,553
Income (loss) from operations	226,176	(8,595)
Other income	1,403
Income (loss) before income tax	227,579	(8,595)
Income tax	50,426	1,609
Net income (loss)	177,153	(10,204)
Other comprehensive income (loss)
Foreign currency translation adjustment	(7,922)	3,688
Comprehensive income (loss)	$ 169,231	$ (6,516)
Income (Loss) Per Share - Basic and Diluted	$ 0	$ 0
Weighted average number of common shares outstanding - Basic and Diluted	99,003,000	99,003,000
Non-related parties [Member]
Total Revenues	$ 2,475,050	$ 381,541
Non-Related Parties [Member]
Total Revenues	$ 93,838

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 177,153	$ (10,204)
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred taxes	(4,555)
Changes in operating assets and liabilities:
Accounts receivable - non related parties	165,960	293,992
Accounts receivable - related parties	118,902
Inventory	(284,534)	(221,917)
Advances to suppliers - non-related parties	878	117,348
Advances to suppliers - related parties	(64,737)	(88,375)
Prepaid expenses	(9,530)	(7,501)
Accounts payable - non-related parties	(151,889)	12,137
Accounts payable - related parties	154,452	(155,528)
Advance from customers	(24,927)	(5,029)
Accrued expenses and other current liabilities	(19,564)	(60,514)
Net cash provided by (used in) operating activities	57,609	(125,591)
CASH FLOWS FROM INVESTING ACTIVITIES
Other receivables		148,947
Net cash provided by investing activities		148,947
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (repayment of) loans from related parties	137,292	(136,600)
Net cash provided by (used in) financing activities	137,292	(136,600)
Effect of exchange rate changes on cash	(1,780)	1,961
Net increase (decrease) in cash	193,121	(111,283)
Cash, beginning of period	111,462	186,767
Cash, end of period	304,583	75,484
Supplemental disclosure of cash flow information:
Cash paid for income tax	70,558	1,951
Cash paid for interests

NATURE OF OPERATIONS

NATURE OF OPERATIONS	3 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1 - NATURE OF OPERATIONS Ionix Technology, Inc. (the “Company” or “Ionix”) is a Nevada corporation that was formed on March 11, 2011. By and through its wholly owned subsidiaries in China, the Company sells the high-end intelligent electronic equipment, which includes portable power banks for electronic devices and LCD screens in China.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Sep. 30, 2018
Going Concern
GOING CONCERN	NOTE 2 - GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has not generated sufficient cash flow from its operating activities for the past three years and did not have enough cash to support future operating plans. These circumstances, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company may need to raise additional capital from external sources or obtain loans from officers and shareholders in order to continue the long-term efforts contemplated under its business plan. The Company is pursuing other revenue streams which could include strategic acquisitions or possible joint ventures of other business segments.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2018 and the results of operations and cash flows for the periods ended September 30, 2018 and 2017. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended September 30, 2018 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending June 30, 2019. The balance sheet at June 30, 2018 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended June 30, 2018 as included in our Annual Report on Form 10-K as filed with the SEC on October 11, 2018. Basis of consolidation The consolidated financial statements include the accounts of Ionix Technology Inc. and its subsidiaries: Well Best International Investment Limited (“Well Best”), Revenue recognition The Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers, and all the related amendments (new revenue standard) to all contracts using the modified retrospective method beginning on July 1, 2018. The adoption will not result in an adjustment to the retained earnings as of June 30, 2018. The comparative information will not be restated and will continue to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard will have no impact on either reported sales to customers or net earnings. The Company will continue to recognize revenue from product sales as goods are shipped or delivered to the customer, as control of goods occurs at the same time. Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss). The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2018 June 30, 2018 Balance sheet items, except for equity accounts 6.6879 6.6166 Three Months Ended September 30, 2018 2017 Items in statements of comprehensive income (loss) and cash 6.6523 6.7138 Recent accounting pronouncements From time to time, new accounting pronouncements are issues by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4 - INVENTORIES Inventories are stated at the lower of cost (determined using the weighted average cost method) or net realizable value. September 30, 2018 June 30, 2018 Raw materials $ 109,926 $ 105,879 Finished goods 397,514 120,960 Total inventories $ 507,440 $ 226,839 Inventories consist of the following:

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND BALANCES	3 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND BALANCES	NOTE 5 - RELATED PARTY TRANSACTIONS AND BALANCES Manufacture – related party On September 1, 2016, Baileqi Electronic entered into a manufacturing agreement with Shenzhen Baileqi Science and Technology Co., Ltd. (“Shenzhen Baileqi S&T”) to manufacture products for Baileqi Electronic. The owner of Shenzhen Baileqi S&T is also a stockholder of the Company who owns approximately 1.5% of the Company’s outstanding common stock as of September 30, 2018. The manufacturing costs incurred with Shenzhen Baileqi S&T was $0 and $192,103 for the three months ended September 30, 2018 and 2017, respectively, and the amount of $0 and $44,167 respectively were included in cost of revenue. Purchase from related party During the three months ended September 30, 2018, the Company purchased $676,379 and $450,505 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s stockholders who own approximately 2% and 1.5% respectively of the Company’s outstanding common stock as of September 30, 2018. The amount of $676,379 and $340,026 were included in the cost of revenue. During the three months ended September 30, 2017, the Company purchased $63,645 and $174,465 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s stockholders who own approximately 2% and 1.5% respectively of the Company’s outstanding common stock. The amount of $63,645 and $163,839 were included in the cost of revenue. During the three months ended September 30, 2018, the Company purchased $792,282 from Fangguan Electronic Science and Technology Co., Ltd. (“Fangguan S&T”). The president of Fangguan S&T was the president and a member of the board of directors of Fangguan Photoelectric before he resigned and left Fangguan Photoelectric in October 2018. The amount of $763,406 was included in the cost of revenue. Advances to suppliers - related parties The Company made advances of $268,388 and $206,194 to Keenest for future purchases as of September 30, 2018 and June 30, 2018, respectively. Accounts payable - related parties The trade balance payable to Fangguan S&T was $367,779 and $248,543 as of September 30, 2018 and June 30, 2018, respectively. The trade balance payable to Shenzhen Baileqi S&T were $31,743 and $0 as of September 30, 2018 and June 30, 2018, respectively. Sales to related party During the three months ended September 30, 2018, Baileqi Electronic sold materials of $93,838 to Shenzhen Baileqi S&T. Accounts receivable - related parties The sales-related balance receivable from Shenzhen Baileqi S&T were zero and $119,543 as of September 30, 2018 and June 30, 2018, respectively. Due to related parties Due to related parties represents certain advances to the Company or its subsidiaries by related parties. The amounts are non-interest bearing, unsecured and due on demand. Due to related parties consists of the following: September 30, June 30, Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (2) 196,839 70,458 Xin Sui (3) 1,992 1,992 Baozhen Deng (4) 4,216 (3,685 ) Baozhu Deng (5) 2,990 - $ 349,829 $ 212,557 (1) Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc. (2) Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc. (3) Xin Sui is a member of the board of directors of Welly Surplus. (4) Baozhen Deng is a stockholder of the Company, who owns approximately 1.5% of the Company’s outstanding common stock, and the owner of Shenzhen Baileqi S&T. (5) Baozhu Deng is a relative of Baozhen Deng, a stockholder of the Company. During the three months ended September 30, 2018, Yubao Liu advanced $126,381 to Well Best. Baileqi Electronic borrowed $2,990 from Baozhu Deng. In addition, Baozhen Deng refunded $7,903 to Baileqi Electronic. During the three months ended September 30, 2017, Welly Surplus refunded $5,000 to Xin Sui. Baileqi Electronic refunded $7,671 to Shenzhen Baileqi S&T. Lisite Science refunded $122,820 to Changyong Yang.

CONCENTRATION

CONCENTRATION	3 Months Ended
	Sep. 30, 2018
Risks and Uncertainties [Abstract]
CONCENTRATION	NOTE 6 - CONCENTRATION Major customers Customers who accounted for 10% or more of the Company’s revenues for the three months ended September 30, 2018 and 2017 respectively and its outstanding balance of accounts receivable as of September 30, 2018 and 2017 respectively are presented as follows: For the three months ended As of September 30, 2018 Revenue Percentage of Accounts Percentage of Customer A $ 738,893 29 % $ - - % Customer B 1,028,423 40 % 272,761 59 % Total $ 1,767,316 69 % $ 272,761 59 % For the three months ended As of September 30, 2017 Revenue Percentage of Accounts Percentage of Customer A $ 65,637 17 % $ - - % Customer B 91,692 24 % - - % Customer C 45,514 12 % - - % Total $ 202,843 53 % $ - - % All customers are located in the PRC. Major suppliers The suppliers who accounted for 10% or more of the Company’s total purchases (materials and services) for the three months ended September 30, 2018 and 2017 respectively and its outstanding balance of accounts payable as of September 30, 2018 and 2017 respectively are presented as follows: For the three months ended As of September 30, 2018 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 676,379 26 % $ - - % Supplier B - related party 450,505 18 % 31,743 6 % Supplier C - related party 792,282 31 % 367,779 72 % Supplier D 536,708 21 % - - % Total $ 2,455,874 96 % $ 399,522 78 % For the three months ended As of September 30, 2017 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 63,645 12 % $ - - % Supplier B - related party 366,568 68 % 5,828 5 % Total $ 430,213 80 % $ 5,828 5 % All suppliers of the Company are located in the PRC.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 - INCOME TAXES The effective tax rate in the periods presented is the result of the mix of income earned and losses incurred in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: United States of America, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America The Company is registered in the State of Nevada and is subject to the tax laws of United States of America. The Company has shown losses since inception. As a result, it has incurred no income tax. Under normal circumstances, the Internal Revenue Service is authorized to audit income tax returns during a three year period after the returns are filed. In unusual circumstances, the period may be longer. Tax returns for the year ended June 30, 2011 and after were still open to audit as of September 30, 2018. The Company received a penalty assessment from the IRS in the amount of $10,000 for failure to provide information with respect to certain foreign owned US Corporations on Form 5472 - Information Return of a 25% Foreign Owned US Corporation for the tax period ended June 30, 2013. The Company disputed this claim and is working to reverse the penalty. The Company believes that the payment of this penalty is remote and did not accrue this liability as of September 30, 2018. Hong Kong The Well Best and Welly Surplus are registered in Hong Kong and subject to income tax rate of 16.5%. for the three months ended September 30, 2018 and 2017, there is no assessable income chargeable to profit tax in Hong Kong. The PRC Lisite Science, Fangguan Photoelectric, Baileqi Electronic and Shizhe New Energy are operating in the PRC and is subject to the Corporate Income Tax Law of the People’s Republic of China at a unified income tax rate of 25%. The reconciliation of income tax expense at the U.S. statutory rates of 21% and 35% to the Company’s effective tax rate is as follows: For the three months ended September 30, 2018 2017 21% 35% Tax at U.S. statutory rate $ 47,792 $ (3,008 ) Tax rate difference between (1,408 ) 1,125 Change in valuation allowance 2,424 3,492 Permanent difference 1,618 - Effective tax $ 50,426 $ 1,609 The provisions for income taxes are summarized as follows: For the three months ended September 30, 2018 2017 Current $ 54,981 $ 1,609 Deferred (4,555) - Total $ 50,426 $ 1,609 As of September 30, 2018, the Company has approximately $388,000 net operating loss carryforwards available in the U.S. and Hong Kong to reduce future taxable income which will begin to expire from 2035. It is more likely than not that the deferred tax assets cannot be utilized in the future because there will not be significant future earnings from the entity which generated the net operating loss. Therefore, the Company recorded a full valuation allowance on its deferred tax assets. The Company has not provided deferred taxes on unremitted earnings attributable to international companies that have been considered to be reinvested indefinitely. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the income tax liability that would be payable if such earnings were not indefinitely reinvested. In accordance with ASC Topic 740, interest associated with unrecognized tax benefits is classified as income tax and penalties are classified in selling, general and administrative expenses in the statements of operations. The extent of the Company’s operations involves dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. Since the Company’s foreign subsidiaries had not generated accumulated earnings as of December 31, 2017, the Company believes that Tax Act will not have significant impact on the Company’s consolidated financial statements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 - SUBSEQUENT EVENTS The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2018 and the results of operations and cash flows for the periods ended September 30, 2018 and 2017. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three months ended September 30, 2018 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending June 30, 2019. The balance sheet at June 30, 2018 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended June 30, 2018 as included in our Annual Report on Form 10-K as filed with the SEC on October 11, 2018.
Basis of consolidation	Basis of consolidation The consolidated financial statements include the accounts of Ionix Technology Inc. and its subsidiaries: Well Best International Investment Limited (“Well Best”),
Revenue recognition	Revenue recognition The Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers, and all the related amendments (new revenue standard) to all contracts using the modified retrospective method beginning on July 1, 2018. The adoption will not result in an adjustment to the retained earnings as of June 30, 2018. The comparative information will not be restated and will continue to be reported under the accounting standards in effect for those periods. The adoption of the new revenue standard will have no impact on either reported sales to customers or net earnings. The Company will continue to recognize revenue from product sales as goods are shipped or delivered to the customer, as control of goods occurs at the same time.
Foreign currencies translation	Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of comprehensive income (loss). The reporting currency of the Company is the United States Dollar (“US$”). The Company’s subsidiaries in the People’s Republic of China (“PRC”) maintain their books and records in their local currency, the Renminbi Yuan (“RMB”), which is the functional currency as being the primary currency of the economic environment in which these entities operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not the US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. Stockholders’ equity is translated at historical rates. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of stockholders’ equity. The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2018 June 30, 2018 Balance sheet items, except for equity accounts 6.6879 6.6166 Three Months Ended September 30, 2018 2017 Items in statements of comprehensive income (loss) and cash 6.6523 6.7138
Recent accounting pronouncements	Recent accounting pronouncements From time to time, new accounting pronouncements are issues by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of exchange rates	The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2018 June 30, 2018 Balance sheet items, except for equity accounts 6.6879 6.6166 Three Months Ended September 30, 2018 2017 Items in statements of comprehensive income (loss) and cash 6.6523 6.7138

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories are stated at the lower of cost (determined using the weighted average cost method) or net realizable value. September 30, 2018 June 30, 2018 Raw materials $ 109,926 $ 105,879 Finished goods 397,514 120,960 Total inventories $ 507,440 $ 226,839

RELATED PARTY TRANSACTIONS AN_2

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)	3 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Schedule of due to related parties	Due to related parties consists of the following: September 30, 2018 June 30, 2018 Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (2) 196,839 70,458 Xin Sui (3) 1,992 1,992 Baozhen Deng (4) 4,216 (3,685 ) Baozhu Deng (5) 2,990 - $ 349,829 $ 212,557 (1) Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc. (2) Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc. (3) Xin Sui is a member of the board of directors of Welly Surplus. (4) Baozhen Deng is a stockholder of the Company, who owns approximately 1.5% of the Company’s outstanding common stock, and the owner of Shenzhen Baileqi S&T. (5) Baozhu Deng is a relative of Baozhen Deng, a stockholder of the Company.

CONCENTRATION (Tables)

CONCENTRATION (Tables)	3 Months Ended
	Sep. 30, 2018
Risks and Uncertainties [Abstract]
Schedule of concentration risk	Customers who accounted for 10% or more of the Company’s revenues for the three months ended September 30, 2018 and 2017 respectively and its outstanding balance of accounts receivable as of September 30, 2018 and 2017 respectively are presented as follows: For the three months ended As of September 30, 2018 Revenue Percentage of Accounts Percentage of Customer A $ 738,893 29 % $ - - % Customer B 1,028,423 40 % 272,761 59 % Total $ 1,767,316 69 % $ 272,761 59 % For the three months ended As of September 30, 2017 Revenue Percentage of Accounts Percentage of Customer A $ 65,637 17 % $ - - % Customer B 91,692 24 % - - % Customer C 45,514 12 % - - % Total $ 202,843 53 % $ - - %
Schedule of major suppliers	The suppliers who accounted for 10% or more of the Company’s total purchases (materials and services) for the three months ended September 30, 2018 and 2017 respectively and its outstanding balance of accounts payable as of September 30, 2018 and 2017 respectively are presented as follows: For the three months ended As of September 30, 2018 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 676,379 26 % $ - - % Supplier B - related party 450,505 18 % 31,743 6 % Supplier C - related party 792,282 31 % 367,779 72 % Supplier D 536,708 21 % - - % Total $ 2,455,874 96 % $ 399,522 78 % For the three months ended As of September 30, 2017 Total Purchase Percentage of Accounts Percentage of Supplier A - related party $ 63,645 12 % $ - - % Supplier B - related party 366,568 68 % 5,828 5 % Total $ 430,213 80 % $ 5,828 5 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of reconciliation of income tax expense	The reconciliation of income tax expense at the U.S. statutory rates of 21% and 35% to the Company’s effective tax rate is as follows: For the three months ended September 30, 2018 2017 21% 35% Tax at U.S. statutory rate $ 47,792 $ (3,008 ) Tax rate difference between (1,408 ) 1,125 Change in valuation allowance 2,424 3,492 Permanent difference 1,618 - Effective tax $ 50,426 $ 1,609
Schedule of provisions for income taxes	The provisions for income taxes are summarized as follows: For the three months ended September 30, 2018 2017 Current $ 54,981 $ 1,609 Deferred (4,555) - Total $ 50,426 $ 1,609

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017
Income and Cash Flow [Member]
Exchange rate	6.6523		6.7138
Balance Sheet [Member]
Exchange rate	6.6879	6.6166

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 109,926	$ 105,879
Finished goods	397,514	120,960
Total inventories	$ 507,440	$ 226,839

RELATED PARTY TRANSACTIONS AN_3

RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($)		Sep. 30, 2018	Jun. 30, 2018
Due to related parties		$ 349,829	$ 212,557
Ben Wong [Member]
Due to related parties	[1]	143,792	143,792
Yubao Liu [Member]
Due to related parties	[2]	196,839	70,458
Xin Sui [Member]
Due to related parties	[3]	1,992	1,992
Baozhen Deng [Member]
Due to related parties	[4]	4,216	1,992
Baozhu Deng [Member]
Due to related parties	[5]	$ 2,990
[1]	Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc.
[2]	Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc.
[3]	Xin Sui is a member of the board of directors of Welly Surplus.
[4]	Baozhen Deng is a stockholder of the Company, who owns approximately 1.5% of the Company's outstanding common stock, and the owner of Shenzhen Baileqi S&T.
[5]	Baozhu Deng is a relative of Baozhen Deng, a stockholder of the Company.

RELATED PARTY TRANSACTIONS AN_4

RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Related Party Transaction [Line Items]
Advances from related parties	$ 137,292	$ (136,600)
Accounts payable - related parties	399,522		$ 248,543
Revenue from related party	2,568,888	381,541
Accounts receivable - related parties			119,543
Baozhen Deng [Member] | Baileqi Electronic [Member]
Related Party Transaction [Line Items]
Advances from related parties	7,903
Baileqi Electronic [Member] | Baozhu Deng [Member]
Related Party Transaction [Line Items]
Related party borrowed	2,990
Yubao Liu [Member] | Well Best [Member]
Related Party Transaction [Line Items]
Advances from related parties	126,381
Changchun Fangguan Electronic Science and Technology Co., Ltd [Member]
Related Party Transaction [Line Items]
Purchases from related party	792,282
Cost of revenue - purchases related party	763,406
Accounts payable - related parties	$ 367,779		248,543
Shenzhen Baileqi S&T [Member]
Related Party Transaction [Line Items]
Ownership percentage	1.50%
Purchases from related party	$ 450,505	174,465
Cost of revenue - purchases related party	340,026	163,839
Manufacturing costs	0	192,103
Cost of revenue - manufacturing related party	0	44,167
Accounts payable - related parties	31,743		0
Revenue from related party	93,838
Accounts receivable - related parties	$ 0		119,543
Shenzhen Baileqi S&T [Member] | Baileqi Electronic [Member]
Related Party Transaction [Line Items]
Advances from related parties		7,671
Keenest [Member]
Related Party Transaction [Line Items]
Ownership percentage	2.00%
Purchases from related party	$ 676,379	63,645
Cost of revenue - purchases related party	676,379	63,645
Advances from related parties	$ 268,388		$ 206,194
Xin Sui [Member] | Welly Surplus [Member]
Related Party Transaction [Line Items]
Advances from related parties		5,000
Changyong Yang [Member] | Lisite Science [Member]
Related Party Transaction [Line Items]
Advances from related parties		$ 122,820

CONCENTRATION (Details)

CONCENTRATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Revenues	$ 2,568,888	$ 381,541
Accounts payable	110,275		$ 264,171
Accounts Receivable [Member]
Accounts receivables	$ 272,761
Concentration risk percentage	59.00%
Accounts Receivable [Member] | Customer B [Member]
Accounts receivables	$ 272,761
Concentration risk percentage	59.00%
Accounts Receivable [Member] | Customer A [Member]
Accounts receivables
Concentration risk percentage
Accounts Receivable [Member] | Customer C [Member]
Accounts receivables
Concentration risk percentage
Revenue [Member]
Revenues	$ 1,767,316	$ 202,843
Concentration risk percentage	69.00%	53.00%
Revenue [Member] | Customer B [Member]
Revenues	$ 1,028,423	$ 91,692
Concentration risk percentage	40.00%	24.00%
Revenue [Member] | Customer A [Member]
Revenues	$ 738,893	$ 65,637
Concentration risk percentage	29.00%	17.00%
Revenue [Member] | Customer C [Member]
Revenues		$ 45,514
Concentration risk percentage		12.00%
Accounts Payable [Member]
Accounts payable	$ 399,522	$ 5,828
Concentration risk percentage	78.00%	5.00%
Accounts Payable [Member] | Supplier A [Member]
Accounts payable
Concentration risk percentage
Accounts Payable [Member] | Supplier B [Member]
Accounts payable	$ 31,743	$ 5,828
Concentration risk percentage	6.00%	5.00%
Accounts Payable [Member] | Supplier C [Member]
Accounts payable	$ 367,779
Concentration risk percentage	72.00%
Accounts Payable [Member] | Supplier D [Member]
Accounts payable
Concentration risk percentage
Purchases [Member]
Total Purchase	$ 2,455,874	$ 430,213
Concentration risk percentage	96.00%	80.00%
Purchases [Member] | Supplier A [Member]
Total Purchase	$ 676,379	$ 63,645
Concentration risk percentage	26.00%	12.00%
Purchases [Member] | Supplier B [Member]
Total Purchase	$ 450,505	$ 366,568
Concentration risk percentage	18.00%	68.00%
Purchases [Member] | Supplier C [Member]
Total Purchase	$ 792,282
Concentration risk percentage	31.00%
Purchases [Member] | Supplier D [Member]
Total Purchase	$ 536,708
Concentration risk percentage	21.00%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Tax at U.S. statutory rate	$ 47,792	$ (3,008)
Tax rate difference between foreign operation and U.S	(1,408)	1,125
Change in valuation allowance	2,424	3,492
Permanent difference	1,618
Effective tax	$ 50,426	$ 1,609

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Current	$ 54,981	$ 1,609
Deferred	(4,555)
Effective tax	$ 50,426	$ 1,609

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	3 Months Ended
	Sep. 30, 2018USD ($)
Penalty assessment	$ 10,000
Statutory rate	35.00%
Revised statutory rate	21.00%
Operating loss carryforwards	$ 388,000
Expiration year	2,035
Description of income tax rate on foreign subsidiary	<font style="font: 10pt Times New Roman, Times, Serif">The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings.</font></p>" id="sjs-B8">&lt;p style="margin: 0pt">&lt;font style="font: 10pt Times New Roman, Times, Serif">The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings.&lt;/font>&lt;/p>
Inland Revenue, Hong Kong [Member]
Foreign income tax rate	16.50%
CHINA
Foreign income tax rate	25.00%
UNITED STATES
Foreign income tax rate	25.00%