Ionix Technology (IINX) 10-Q 11 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2018	Feb. 11, 2019
Entity Registrant Name	IONIX TECHNOLOGY, INC.
Entity Central Index Key	1,528,308
Document Type	10-Q
Trading Symbol	IINX
Document Period End Date	Dec. 31, 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	Q2
Document Fiscal Year Focus	2,019
Common Stock [Member]
Entity Common Stock, Shares Outstanding		114,003,000
Preferred Stock [Member]
Entity Common Stock, Shares Outstanding		5,000,000

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)		Dec. 31, 2018	Jun. 30, 2018
Current Assets:
Cash		$ 824,874	$ 111,462
Notes receivable		96,581
Accounts receivable - non-related parties		3,220,848	636,413
Accounts receivable - related parties		160,647	119,543
Inventory, net		3,415,851	226,839
Advances to suppliers - non-related parties		168,519	3,164
Advances to suppliers - related parties			206,194
Prepaid expenses and other current assets		78,047	20,592
Total Current Assets		7,965,367	1,324,207
Property, plant and equipment		6,633,132
Intangible assets		4,516,173
Deferred tax assets		58,071
Total Assets		19,172,743	1,324,207
Current Liabilities:
Short-term bank loan		2,622,683
Accounts payable - non-related parties		3,715,537	264,171
Accounts payable - related parties		55,829	248,543
Advance from customers		63,468	59,546
Due to related parties	[1]	6,771,273	212,557
Accrued expenses and other current liabilities		298,952	125,733
Total Current Liabilities		13,527,742	910,550
Deferred tax liability			15,242
Total Liabilities		13,527,742	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, 114,003,000 and 99,003,000 shares issued and outstanding as of December 31, 2018 and June 30, 2018, respectively		11,400	9,900
Additional paid in capital		5,235,746	237,246
Retained earnings		326,826	142,819
Accumulated other comprehensive income (loss)		(20,011)	7,950
Total Stockholders' Equity attributable to the Company		5,554,461	398,415
Noncontrolling interest		90,540
Total Stockholders' Equity		5,645,001	398,415
Total Liabilities and Stockholders' Equity		$ 19,172,743	$ 1,324,207
[1]	The liabilities were assumed from the acquisition of Fangguan Electronics.

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Dec. 31, 2018	Jun. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
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)	$ 0.0001	$ 0.0001
Common stock, authorized shares	195,000,000	195,000,000
Common stock, issued	114,003,000	99,003,000
Common stock, outstanding	114,003,000	99,003,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Total Revenues	$ 2,251,548	$ 750,944	$ 4,820,436	$ 1,132,485
Total Cost of Revenues	1,956,260	671,991	4,235,983	992,574
Gross profit	295,288	78,953	584,453	139,911
Operating expenses
Selling, general and administrative expense	232,917	61,475	295,906	131,028
Total operating expenses	232,917	61,475	295,906	131,028
Income from operations	62,371	17,478	288,547	8,883
Other income	16,285		17,688
Income before income tax provision	78,656	17,478	306,235	8,883
Income tax provision	71,802	7,764	122,228	9,373
Net income (loss)	6,854	9,714	184,007	(490)
Other comprehensive income (loss)
Foreign currency translation adjustment	(20,039)	4,931	(27,961)	8,619
Comprehensive income (loss)	$ (13,185)	$ 14,645	$ 156,046	$ 8,129
Income (Loss) Per Share - Basic and Diluted (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding - Basic and Diluted (in shares)	99,655,174	99,003,000	99,329,087	99,003,000
Non-Related Parties [Member]
Total Revenues	$ 2,229,489	$ 750,944	$ 4,704,539	$ 1,132,485
Total Cost of Revenues	541,912	64,971	1,041,824	113,903
Related parties [Member]
Total Revenues	22,059		115,897
Total Cost of Revenues	$ 1,414,348	$ 607,020	$ 3,194,159	$ 878,671

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 184,007	$ (490)
Adjustments required to reconcile net income (loss) to net cash used in operating activities:
Deferred taxes	(14,884)
Changes in operating assets and liabilities:
Accounts receivable - non related parties	144,264	214,351
Accounts receivable - related parties	(45,987)
Inventory	(294,434)	(197,363)
Advances to suppliers - non-related parties	355	120,004
Advances to suppliers - related parties	201,357	(89,483)
Prepaid expenses	3,925	(11,277)
Accounts payable - non-related parties	(257,973)	12,272
Accounts payable - related parties	(138,955)	(117,978)
Advance from customers	(17,820)	(39,455)
Accrued expenses and other current liabilities	27,524	(49,342)
Net cash used in operating activities	(208,621)	(158,761)
CASH FLOWS FROM INVESTING ACTIVITIES
Other receivables		148,947
Cash received from acquisition	687,591
Net cash provided by investing activities	687,591	148,947
CASH FLOWS FROM FINANCING ACTIVITIES
Notes receivable	(29,518)
Acquisition of office equipment	(2,163)
Proceeds from (repayment of) loans from related parties	269,974	(109,413)
Net cash provided by (used in) financing activities	238,293	(109,413)
Effect of exchange rate changes on cash	(3,851)	3,727
Net increase (decrease) in cash	713,412	(115,500)
Cash, beginning of period	111,462	186,767
Cash, end of period	824,874	71,267
Supplemental disclosure of cash flow information:
Cash paid for income tax	141,749	5,163
Cash paid for interests
Non-cash investing activities
Issuance of 15,000,000 shares of common stock in exchange for 95.14% ownership rights of a variable interest entity	$ 5,000,000

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - shares	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Number of shares issued	15,000,000
Ownership rights of a variable interest entity	95.14%

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Dec. 31, 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 and an entity controlled through VIE agreements in China, the Company sells the high-end intelligent electronic equipment, which includes portable power banks for electronic devices and LCD screens in China. Acquisition On December 27, 2018, Ionix Technology, Inc. (the “Company”) entered into a Share Purchase Agreement (the “Purchase Agreement”) with Jialin Liang and Xuemei Jiang, each of whom are shareholders (the “Shareholders”) of Changchun Fangguan Electronics Technology Co., Ltd. (“Fangguan Electronics”). Pursuant to the terms of the Purchase Agreement, the Shareholders, who together own 95.14% of the ownership rights in Fangguan Electronics, agreed to execute and deliver the Business Operation Agreement dated December 27, 2018, the Equity Interest Pledge Agreement dated December 27, 2018, the Equity Interest Purchase Agreement dated December 27, 2018, the Exclusive Technical Support Service Agreement dated December 27, 2018 (the “Services Agreement”) and the Power of Attorney dated December 27, 2018, all together are referred to the “VIE Transaction Documents”, to the Company in exchange for the issuance of an aggregate of 15,000,000 shares of the Company’s common stock, par value $.0001 per share (the “Common Stock”), thereby causing Fangguan Electronics to become the Company’s variable interest entity. The entirety of the transaction will hereafter be referred to as the “Transaction”. As a result of the Transaction, the Company are able to exert effective control over Fangguan Electronics and receive 100% of the net profits or net losses derived from the business operations of Fangguan Electronics. Fangguan Electronics manufactures and sells LCD screens in China based in Changchun City, Jilin Province, People’s Republic of China. (See Note 4). The Transaction was accounted for as a business combination using the acquisition method of accounting. The assets, liabilities and the operations of Fangguan Electronics subsequent to the Transaction date were included in the Company’s consolidated financial statements.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Dec. 31, 2018
Going Concern
GOING CONCERN	NOTE 2 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company had a working capital deficiency of $5,562,375 at December 31, 2018 and did not generate cash from operations for the six months ended December 31, 2018 and 2017. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company plans to rely on the proceeds from loans from both unrelated and related parties to provide the resources necessary to fund the development of the business plan and operations. However, no assurance can be given that the Company will be successful in raising additional capital.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 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 December 31, 2018 and the results of operations and cash flows for the periods ended December 31, 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 and six months ended December 31, 2018 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending June 30, 2019 or for any subsequent periods. 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, its wholly owned subsidiaries and an entity which the Company controls 95.14% through VIE agreements. All significant inter-company balances and transactions have been eliminated upon consolidation. Use of Estimates The Company’s financial statements have been prepared in accordance with US GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Repairs and maintenance costs are normally expensed as incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statement of comprehensive income (loss) in the reporting period of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: Buildings 10 – 20 years Machinery and equipment 5 – 10 years Office equipment 5 years Automobiles 5 years Intangible assets Land use right is recorded as cost less accumulated amortization. Land use rights represent the prepayments for the use of the parcels of land in the PRC where the Company’s production facilities are located, and are charged to expense over their respective lease periods of 50 years. According to the laws of the PRC, the government owns all of the land in the PRC. Company or individuals are authorized to use the land only through land use rights granted by the PRC government for a certain period (usually 50 years). Purchased intangible assets are recognized and measured at fair value upon acquisition. Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Amortization for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives. Alternatively, intangible assets with indefinite useful lives are carried at cost less any subsequent accumulated impairment losses. The estimated useful lives of the intangible assets are as follows: Land use right 50 years Computer software 5 years Gains or losses arising from derecognition of the intangible asset are measured at the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of comprehensive income (loss) when the asset is disposed. Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. 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: December 31, 2018 June 30, 2018 Balance sheet items, except for equity accounts 6.8632 6.6166 Six Months Ended December 31, 2018 2017 Items in statements of comprehensive income (loss) and 6.7756 6.6404 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.

ACQUISITION

ACQUISITION	6 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
ACQUISITION	NOTE 4 – ACQUISITION On December 27, 2018, the Company entered into VIE agreements with two shareholders of Fangguan Electronics to control 95.14% of the ownership rights and receive 100% of the net profit or net losses derived from the business operations of Fangguan Electronis. In exchange for VIE agreements, the Company issued 15 million shares of common stock to two shareholders of Frnagguan Electronics. (See Note 1) The Transaction was accounted for as a business combination using the acquisition method of accounting. The assets, liabilities and the operations of Fangguan Electronics subsequent to the Transaction date were included in the Company’s consolidated financial statements. The purchase price was allocated to the fair value of the tangible and intangible assets acquired and liabilities assumed. The Company has estimated the fair value of the assets acquired and liabilities assumed as of the acquisition date and will adjust these estimates accordingly within the one year measurement period once the appraisal report is completed. The preliminary purchase price allocated to assets acquired and liabilities assumed as of the acquisition was as follows: Amounts Cash $ 687,591 Notes receivable 67,441 Accounts receivable 2,749,723 Accounts receivable from related parties 46,603 Inventories 2,906,489 Advances to suppliers 165,819 Other receivables 61,900 Property, plant and equipment 6,630,997 Intangible assets, net 4,516,173 Deferred tax assets 58,071 Short-term bank loan (2,622,683 ) Accounts payable (3,715,537 ) Advance from customers (23,654 ) Due to related parties (6,288,886 ) Accrued expenses and other current liabilities (149,507 ) Noncontrolling interest (90,540 ) Total consideration $ 5,000,000

INVENTORIES

INVENTORIES	6 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 5 – INVENTORIES Inventories are stated at the lower of cost (determined using the weighted average cost method) or net realizable value. December 31, 2018 June 30, 2018 Raw materials $ 691,779 $ 105,879 Work-in-process 797,802 - Finished goods 1,926,270 120,960 Total Inventories $ 3,415,851 $ 226,839

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 6 – PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment were as follows: December 31, 2018 June 30, 2018 Buildings $ 4,264,801 $ - Machinery and equipment 2,274,837 - Office equipment 33,906 - Automobiles 59,588 - Property, plant and equipment $ 6,633,132 $ - As of December 31, 2018, buildings were pledged as collateral for bank loans (See Note 8).

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 7 – INTANGIBLE ASSETS Intangible assets consist of the following: December 31, 2018 June 30, 2018 Land use right $ 4,516,003 $ - Computer software 170 - Intangible assets $ 4,516,173 $ - Fangguan Electronics acquired the land use right from the local government in August 2012 which expires on August 15, 2062. As of December 31, 2018, land use right was pledged as collateral for bank loans (See Note 8).

SHORT-TERM BANK LOAN

SHORT-TERM BANK LOAN	6 Months Ended
	Dec. 31, 2018
Short-term Bank Loan
SHORT-TERM BANK LOAN	NOTE 8 – SHORT-TERM BANK LOAN On November 12, 2018, Fangguan Electronics entered into a short-term loan agreement with Industrial Bank to borrow approximately US$2.6 million (RMB 18 million) for a year with annual interest rate of 5.27%. The borrowing was collateralized by the Company’s buildings and land use right. In addition, the borrowing was guaranteed by the Company’s shareholder and CEO of Fangguan Electronics, Mr. Jialin Liang, and his wife Ms. Dongjiao Su.

RELATED PARTY TRANSACTIONS AND

RELATED PARTY TRANSACTIONS AND BALANCES	6 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS AND BALANCES	NOTE 9 - RELATED PARTY TRANSACTIONS AND BALANCES Manufacture – related party On September 1, 2016, the Company’s subsidiary, Baileqi Electronic, entered into a manufacturing agreement with Shenzhen Baileqi Science and Technology Co., Ltd. (“Shenzhen Baileqi S&T”) to manufacture products. 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 December 31, 2018. The manufacturing costs incurred with Shenzhen Baileqi S&T was $0 and $271,186 for the six months ended December 31, 2018 and 2017, respectively, and the amount of $0 and $123,035 respectively were included in cost of revenue. The manufacturing costs incurred with Shenzhen Baileqi S&T was $0 and $79,083 for the three months ended December 31, 2018 and 2017, respectively, and the amount of $0 and $78,868 respectively were included in cost of revenue. Purchase from related party During the six months ended December 31, 2018, the Company’s subsidiaries, Lisite Science and Baileqi Electronic, purchased $1,610,058 and $517,262 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 December 31, 2018. The amount of $1,610,058 and $454,049 were included in the cost of revenue for the six months ended December 31, 2018. During the six months ended December 31, 2018, the Company’s subsidiary, Fangguan Photoelectric, purchased $1,498,744 from Fangguan Electronics before Fangguan Electronics became a variable interest entity of the Company as of December 27, 2018 (See Note 1 and Note 4). The president of Fangguan Electronics 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 $1,130,052 was included in the cost of revenue for the six months ended December 31, 2018. During the six months ended December 31, 2017, Lisite Science and Baileqi Electronic purchased $391,804 and $410,976 from Keenest and Shenzhen Baileqi S&T which were owned by the Company’s shareholders who own approximately 2% and 1.5% respectively of the Company’s outstanding common stock. The amount of $391,804 and $363,832 were included in the cost of revenue for the six months ended December 31, 2017. During the three months ended December 31, 2018, Lisite Science and Baileqi Electronic purchased $933,679 and $66,757 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 December 31, 2018. The amount of $933,679 and $114,023 were included in the cost of revenue for the three months ended December 31, 2018. During the three months ended December 31, 2018, Fangguan Photoelectric purchased $706,462 from Fangguan Electronics before Fangguan Electronics became a variable interest entity of the Company as of December 27, 2018 (See Note 1 and Note 4). The president of Fangguan Electronics 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 $366,646 was included in the cost of revenue for the three months ended December 31, 2018. During the three months ended December 31, 2017, Lisite Science and Baileqi Electronic purchased $328,159 and $236,511 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 $328,159 and $199,993 were included in the cost of revenue for the three months ended December 31, 2017. Advances to suppliers - related parties Lisite Science made advances of $0 and $206,194 to Keenest for future purchases as of December 31, 2018 and June 30, 2018, respectively. Accounts payable - related parties The trade balance payable to Fangguan Electronics was $0 and $248,543 as of December 31, 2018 and June 30, 2018, respectively. The trade balance payable to Keenest were $55,829 and $0 as of December 31, 2018 and June 30, 2018, respectively. Sales to related party During the three and six months ended December 31, 2018, Baileqi Electronic sold materials of $0 and $93,838 to Shenzhen Baileqi S&T, respectively. During the three and six months ended December 31, 2018, Fangguan Photoelectric sold products of $22,059 to Fangguan Electronics. Accounts receivable - related parties The sales-related balance receivable from Shenzhen Baileqi S&T were $160,647 and $119,543 as of December 31, 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: December 31, June 30, Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (2) 318,756 70,458 Xin Sui (3) 1,992 1,992 Baozhen Deng (4) 3,906 (3,685 ) Baozhu Deng (5) 2,914 - Jialin Liang (6)(10) 5,767,264 - Xuemei Jiang (7)(10) 521,623 - Liang Zhang (8) 5,887 - Zijian Yang (9) 5,139 - $ 6,771,273 $ 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. (6) Jialin Liang is the president, CEO, and director of Fangguan Electronics. (7) Xuemei Jiang is the vice president and director of Fangguan Electronics. (8) Liang Zhang is the legal representative of Shizhe New Energy. (9) Zijian Yang is the General Manager of Shizhe New Energy. (10) The liabilities were assumed from the acquisition of Fangguan Electronics. During the six months ended December 31, 2018, Yubao Liu advanced $248,298 to Well Best. Baileqi Electronic borrowed $2,914 from Baozhu Deng. In addition, Baozhen Deng refunded $7,591 to Baileqi Electronic. Liang Zhang and Zijian Yang advanced $5,887 and $5,139 to Shizhe New Energy, respectively. During the six months ended December 31, 2017, Welly Surplus paid $5,000 to Xin Sui for loan repayment. Baileqi Electronic paid $9,111 to Shenzhen Baileqi S&T to reduce the loan balance. Lisite Science paid $122,820 to Changyong Yang for loan repayment. In addition, Yubao Liu advanced $29,998 to Well Best.

CONCENTRATION

CONCENTRATION	6 Months Ended
	Dec. 31, 2018
Risks and Uncertainties [Abstract]
CONCENTRATION	NOTE 10 – CONCENTRATION Major customers Customers who accounted for 10% or more of the Company’s revenues for the three and six months ended December 31, 2018 and 2017, respectively, and its outstanding balance of accounts receivable as of December 31, 2018 and 2017, respectively, are presented as follows: For the six months ended As of December 31, 2018 Revenue Percentage Accounts Percentage of Customer A $ 1,472,404 31 % $ 417,851 12 % Customer B 1,917,298 40 % - - % Total $ 3,389,702 71 % $ 417,851 12 % For the six months ended As of December 31, 2017 Revenue Percentage Accounts Percentage of Customer A $ 293,260 26 % $ - - % Customer B 174,278 15 % 79,400 93 % Total $ 467,538 41 % $ 79,400 93 % For the three months ended As of December 31, 2018 Revenue Percentage Accounts Percentage of Customer A $ 733,511 33 % $ 417,851 12 % Customer B 358,983 16 % - - % Customer C 888,875 39 % - - % Total $ 1,981,369 88 % $ 417,851 12 % For the three months ended As of December 31, 2017 Revenue Percentage Accounts Percentage of Customer A $ 293,260 39 % $ - - % Customer B 173,883 23 % 79,400 93 % Total $ 467,143 62 % $ 79,400 93 % 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 and six months ended December 31, 2018 and 2017, respectively, and its outstanding balance of accounts payable as of December 31, 2018 and 2017, respectively, are presented as follows: For the six months ended As of December 31, 2018 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 1,610,058 36 % $ 55,829 1 % Supplier B – related party 517,262 11 % - - % Supplier C – related party 1,498,744 33 % - - % Supplier D 785,316 17 % - - % Total $ 4,411,380 97 % $ 55,829 1 % For the six months ended As of December 31, 2017 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 391,804 33 % $ - - % Supplier B – related party 682,162 57 % 46,040 29 % Total $ 1,073,966 90 % $ 46,040 29 % For the three months ended As of December 31, 2018 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 933,679 47 % $ 55,829 1 % Supplier B – related party 706,462 36 % - - % Supplier C 248,609 13 % - - % Total $ 1,888,750 96 % $ 55,829 1 % For the three months ended As of December 31, 2017 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 328,159 51 % $ - - % Supplier B – related party 315,594 49 % 46,040 29 % Total $ 643,753 100 % $ 46,040 29 % All suppliers of the Company are located in the PRC.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 11 - INCOME TAXES The effective tax rate in the periods presented is the result of the mix of income earned 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 December 31, 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 December 31, 2018. Hong Kong The Company’s subsidiaries in Hong Kong are subject to income tax rate of 16.5%. For the six months ended December 31, 2018 and 2017, there is no assessable income chargeable to profit tax in Hong Kong. The PRC The Company’s subsidiaries in China are subject to a unified income tax rate of 25%. Fanguguan Electronics was certified as high-tech enterprises for three years from November 2016 to November 2019 and is taxed at a unified income tax rate of 15%. 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 six months ended December 31, 2018 2017 21% 35% Tax at U.S. statutory rate $ 64,310 $ 3,109 Tax rate difference between 25,739 (2,222 ) Change in valuation allowance 30,442 8,486 Permanent difference 1,737 - Effective tax $ 122,228 $ 9,373 The provisions for income taxes are summarized as follows: For the six months ended December 31, 2018 2017 Current $ 137,112 $ 9,373 Deferred (14,884 ) - Total $ 122,228 $ 9,373 As of December 31, 2018, the Company has approximately $558,000 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 comprehensive income (loss). 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 have 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	6 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 - 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)	6 Months Ended
	Dec. 31, 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 December 31, 2018 and the results of operations and cash flows for the periods ended December 31, 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 and six months ended December 31, 2018 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending June 30, 2019 or for any subsequent periods. 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, its wholly owned subsidiaries and an entity which the Company controls 95.14% through VIE agreements. All significant inter-company balances and transactions have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The Company’s financial statements have been prepared in accordance with US GAAP and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but are not limited to, the allowance for doubtful accounts receivable, provision for staff benefit, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates and such differences may be material to our consolidated financial statements.
Property, plant and equipment	Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Repairs and maintenance costs are normally expensed as incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statement of comprehensive income (loss) in the reporting period of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets after taking into account their respective estimated residual value. The estimated useful life of the assets is as follows: Buildings 10 – 20 years Machinery and equipment 5 – 10 years Office equipment 5 years Automobiles 5 years
Intangible assets	Intangible assets Land use right is recorded as cost less accumulated amortization. Land use rights represent the prepayments for the use of the parcels of land in the PRC where the Company’s production facilities are located, and are charged to expense over their respective lease periods of 50 years. According to the laws of the PRC, the government owns all of the land in the PRC. Company or individuals are authorized to use the land only through land use rights granted by the PRC government for a certain period (usually 50 years). Purchased intangible assets are recognized and measured at fair value upon acquisition. Intangible assets acquired separately and with finite useful lives are carried at costs less accumulated amortization and any accumulated impairment losses. Amortization for intangible assets with finite useful lives is provided on a straight-line basis over their estimated useful lives. Alternatively, intangible assets with indefinite useful lives are carried at cost less any subsequent accumulated impairment losses. The estimated useful lives of the intangible assets are as follows: Land use right 50 years Computer software 5 years Gains or losses arising from derecognition of the intangible asset are measured at the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of comprehensive income (loss) when the asset is disposed.
Impairment of long-lived assets	Impairment of long-lived assets In accordance with the provisions of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property, plant and equipment held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets.
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: December 31, 2018 June 30, 2018 Balance sheet items, except for equity accounts 6.8632 6.6166 Six Months Ended December 31, 2018 2017 Items in statements of comprehensive income (loss) and cash flows 6.7756 6.6404
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)	6 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Schedule of estimated useful life of the assets	The estimated useful life of the assets is as follows: Buildings 10 – 20 years Machinery and equipment 5 – 10 years Office equipment 5 years Automobiles 5 years
Schedule of estimated useful lives of the intangible assets	The estimated useful lives of the intangible assets are as follows: Land use right 50 years Computer software 5 years
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: December 31, 2018 June 30, 2018 Balance sheet items, except for equity accounts 6.8632 6.6166 Six Months Ended December 31, 2018 2017 Items in statements of comprehensive income (loss) and 6.7756 6.6404

ACQUISITION (Tables)

ACQUISITION (Tables)	6 Months Ended
	Dec. 31, 2018
Business Combinations [Abstract]
Schedule of purchase price allocated	The preliminary purchase price allocated to assets acquired and liabilities assumed as of the acquisition was as follows: Amounts Cash $ 687,591 Notes receivable 67,441 Accounts receivable 2,749,723 Accounts receivable from related parties 46,603 Inventories 2,906,489 Advances to suppliers 165,819 Other receivables 61,900 Property, plant and equipment 6,630,997 Intangible assets, net 4,516,173 Deferred tax assets 58,071 Short-term bank loan (2,622,683 ) Accounts payable (3,715,537 ) Advance from customers (23,654 ) Due to related parties (6,288,886 ) Accrued expenses and other current liabilities (149,507 ) Noncontrolling interest (90,540 ) Total consideration $ 5,000,000

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Dec. 31, 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. December 31, 2018 June 30, 2018 Raw materials $ 691,779 $ 105,879 Work-in-process 797,802 - Finished goods 1,926,270 120,960 Total Inventories $ 3,415,851 $ 226,839

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	The components of property, plant and equipment were as follows: December 31, 2018 June 30, 2018 Buildings $ 4,264,801 $ - Machinery and equipment 2,274,837 - Office equipment 33,906 - Automobiles 59,588 - Property, plant and equipment $ 6,633,132 $ -

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets consist of the following: December 31, 2018 June 30, 2018 Land use right $ 4,516,003 $ - Computer software 170 - Intangible assets $ 4,516,173 $ -

RELATED PARTY TRANSACTIONS AN_2

RELATED PARTY TRANSACTIONS AND BALANCES (Tables)	6 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Schedule of due to related parties	Due to related parties consists of the following: December 31, June 30, Ben Wong (1) $ 143,792 $ 143,792 Yubao Liu (2) 318,756 70,458 Xin Sui (3) 1,992 1,992 Baozhen Deng (4) 3,906 (3,685 ) Baozhu Deng (5) 2,914 - Jialin Liang (6)(10) 5,767,264 - Xuemei Jiang (7)(10) 521,623 - Liang Zhang (8) 5,887 - Zijian Yang (9) 5,139 - $ 6,771,273 $ 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. (6) Jialin Liang is the president, CEO, and director of Fangguan Electronics. (7) Xuemei Jiang is the vice president and director of Fangguan Electronics. (8) Liang Zhang is the legal representative of Shizhe New Energy. (9) Zijian Yang is the General Manager of Shizhe New Energy. (10) The liabilities were assumed from the acquisition of Fangguan Electronics.

CONCENTRATION (Tables)

CONCENTRATION (Tables)	6 Months Ended
	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Schedule of concentration risk	Major customers Customers who accounted for 10% or more of the Company’s revenues for the three and six months ended December 31, 2018 and 2017, respectively, and its outstanding balance of accounts receivable as of December 31, 2018 and 2017, respectively, are presented as follows: For the six months ended As of December 31, 2018 Revenue Percentage Accounts Percentage of Customer A $ 1,472,404 31 % $ 417,851 12 % Customer B 1,917,298 40 % - - % Total $ 3,389,702 71 % $ 417,851 12 % For the six months ended As of December 31, 2017 Revenue Percentage Accounts Percentage of Customer A $ 293,260 26 % $ - - % Customer B 174,278 15 % 79,400 93 % Total $ 467,538 41 % $ 79,400 93 % For the three months ended As of December 31, 2018 Revenue Percentage Accounts Percentage of Customer A $ 733,511 33 % $ 417,851 12 % Customer B 358,983 16 % - - % Customer C 888,875 39 % - - % Total $ 1,981,369 88 % $ 417,851 12 % For the three months ended As of December 31, 2017 Revenue Percentage Accounts Percentage of Customer A $ 293,260 39 % $ - - % Customer B 173,883 23 % 79,400 93 % Total $ 467,143 62 % $ 79,400 93 %
Schedule of major suppliers	Major suppliers The suppliers who accounted for 10% or more of the Company’s total purchases (materials and services) for the three and six months ended December 31, 2018 and 2017, respectively, and its outstanding balance of accounts payable as of December 31, 2018 and 2017, respectively, are presented as follows: For the six months ended As of December 31, 2018 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 1,610,058 36 % $ 55,829 1 % Supplier B – related party 517,262 11 % - - % Supplier C – related party 1,498,744 33 % - - % Supplier D 785,316 17 % - - % Total $ 4,411,380 97 % $ 55,829 1 % For the six months ended As of December 31, 2017 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 391,804 33 % $ - - % Supplier B – related party 682,162 57 % 46,040 29 % Total $ 1,073,966 90 % $ 46,040 29 % For the three months ended As of December 31, 2018 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 933,679 47 % $ 55,829 1 % Supplier B – related party 706,462 36 % - - % Supplier C 248,609 13 % - - % Total $ 1,888,750 96 % $ 55,829 1 % For the three months ended As of December 31, 2017 Total Purchase Percentage Accounts Percentage of Supplier A – related party $ 328,159 51 % $ - - % Supplier B – related party 315,594 49 % 46,040 29 % Total $ 643,753 100 % $ 46,040 29 %

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Dec. 31, 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 six months ended December 31, 2018 2017 21% 35% Tax at U.S. statutory rate $ 64,310 $ 3,109 Tax rate difference between 25,739 (2,222 ) Change in valuation allowance 30,442 8,486 Permanent difference 1,737 - Effective tax $ 122,228 $ 9,373
Schedule of provisions for income taxes	The provisions for income taxes are summarized as follows: For the six months ended December 31, 2018 2017 Current $ 137,112 $ 9,373 Deferred (14,884 ) - Total $ 122,228 $ 9,373

NATURE OF OPERATIONS (Details N

NATURE OF OPERATIONS (Details Narrative) - Share Purchase Agreement [Member] - Fangguan Electronics Two Share Holders [Member]	Dec. 27, 2018$ / sharesshares
Percentage of voting interests acquired	95.14%
Number of shares issue | shares	15,000,000
Number of shares issue, par value (in dollars per share) | $ / shares	$ 0.0001
Description of ownership right acquire	The ownership rights and receive 100% of the net profit or net losses derived from the business operations of Fangguan Electronis.

GOING CONCERN (Details)

GOING CONCERN (Details)	Dec. 31, 2018USD ($)
Going Concern
Working capital deficiency	$ 5,562,375

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Dec. 31, 2018
Land Use Rights [Member]
Estimated useful life of intangible assets	50 years
Computer Software [Member]
Estimated useful life of intangible assets	5 years
Building [Member] | Minimum [Member]
Estimated useful life of tangible assets	10 years
Building [Member] | Maximum [Member]
Estimated useful life of tangible assets	20 years
Machinery and Equipment [Member] | Minimum [Member]
Estimated useful life of tangible assets	5 years
Machinery and Equipment [Member] | Maximum [Member]
Estimated useful life of tangible assets	10 years
Office Equipment [Member]
Estimated useful life of tangible assets	5 years
Automobiles [Member]
Estimated useful life of tangible assets	5 years

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Income and Cash Flow [Member]
Exchange rate	6.7756		6.6404
Balance Sheet [Member]
Exchange rate	6.8632	6.6166

BASIS OF PRESENTATION AND SUM_6

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Dec. 31, 2018	Dec. 27, 2018
Land Use Rights [Member]
Estimated useful life of intangible assets	50 years
Share Purchase Agreement [Member] | Fangguan Electronics Two Share Holders [Member]
Percentage of voting interests acquired		95.14%

ACQUISITION (Details)

ACQUISITION (Details) - Fangguan Electronics [Member] - Share Purchase Agreement [Member]	Dec. 27, 2018USD ($)
Cash	$ 687,591
Notes receivable	67,441
Accounts receivable	2,749,723
Accounts receivable from related parties	46,603
Inventories	2,906,489
Advances to suppliers	165,819
Other receivables	61,900
Property, plant and equipment	6,630,997
Intangible assets, net	4,516,173
Deferred tax assets	58,071
Short-term bank loan	(2,622,683)
Accounts payable	(3,715,537)
Advance from customers	(23,654)
Due to related parties	(6,288,886)
Accrued expenses and other current liabilities	(149,507)
Noncontrolling interest	(90,540)
Total consideration	$ 5,000,000

ACQUISITION (Details Narrative)

ACQUISITION (Details Narrative) - Share Purchase Agreement [Member] - Fangguan Electronics Two Share Holders [Member]	Dec. 27, 2018$ / sharesshares
Percentage of voting interests acquired	95.14%
Number of shares issue | shares	15,000,000
Number of shares issue, par value (in dollars per share) | $ / shares	$ 0.0001
Description of ownership right acquire	The ownership rights and receive 100% of the net profit or net losses derived from the business operations of Fangguan Electronis.

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 691,779	$ 105,879
Work-in-process	797,802
Finished goods	1,926,270	120,960
Total Inventories	$ 3,415,851	$ 226,839

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Property, plant and equipment	$ 6,633,132
Building [Member]
Property, plant and equipment	4,264,801
Machinery and Equipment [Member]
Property, plant and equipment	2,274,837
Office Equipment [Member]
Property, plant and equipment	33,906
Automobiles [Member]
Property, plant and equipment	$ 59,588

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Intangible assets	$ 4,516,173
Computer Software [Member]
Intangible assets	170
Land Use Rights [Member]
Intangible assets	$ 4,516,003

SHORT-TERM BANK LOAN (Details)

SHORT-TERM BANK LOAN (Details) - Changchun Fangguan Electronic Science and Technology Co., Ltd [Member] - Short Term Loan Agreement [Member] - Industrial Bank [Member]	Nov. 12, 2018USD ($)
Borrowed amount	$ 2,600,000
Interest rate	5.27%
RMB
Borrowed amount	$ 18,000,000

RELATED PARTY TRANSACTIONS AN_3

RELATED PARTY TRANSACTIONS AND BALANCES (Details) - USD ($)		Dec. 31, 2018		Jun. 30, 2018
Due to related parties	[1]	$ 6,771,273		$ 212,557
Ben Wong [Member]
Due to related parties	[2]	143,792		143,792
Yubao Liu [Member]
Due to related parties	[3]	318,756		70,458
Xin Sui [Member]
Due to related parties	[4]	1,992		1,992
Baozhen Deng [Member]
Due to related parties	[5]	3,906		(3,685)
Baozhu Deng [Member]
Due to related parties	[6]	2,914
Jialin Liang [Member]
Due to related parties	[1],[7]	5,767,264
Xuemei Jiang [Member]
Due to related parties	[8]	521,623	[1]
Liang Zhang [Member]
Due to related parties	[9]	5,887
Zijian Yang [Member]
Due to related parties	[10]	$ 5,139
[1]	The liabilities were assumed from the acquisition of Fangguan Electronics.
[2]	Ben Wong was the controlling shareholder of Shinning Glory until April 20, 2017, which holds majority shares in Ionix Technology, Inc.
[3]	Yubao Liu is the controlling shareholder of Shinning Glory since April 20, 2017, which holds majority shares in Ionix Technology, Inc.
[4]	Xin Sui is a member of the board of directors of Welly Surplus.
[5]	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.
[6]	Baozhu Deng is a relative of Baozhen Deng, a stockholder of the Company.
[7]	Jialin Liang is the president, CEO, and director of Fangguan Electronics.
[8]	Xuemei Jiang is the vice president and director of Fangguan Electronics.
[9]	Liang Zhang is the legal representative of Shizhe New Energy.
[10]	Zijian Yang is the General Manager of Shizhe New Energy.

RELATED PARTY TRANSACTIONS AN_4

RELATED PARTY TRANSACTIONS AND BALANCES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Related Party Transaction [Line Items]
Advances from related parties			$ 269,974	$ (109,413)
Accounts payable - related parties	$ 55,829		55,829		$ 248,543
Revenue from related party	2,251,548	$ 750,944	4,820,436	1,132,485
Accounts receivable - related parties	160,647		160,647		119,543
Baozhen Deng [Member] | Baileqi Electronic [Member]
Related Party Transaction [Line Items]
Advances from related parties			7,591
Baileqi Electronic [Member] | Baozhu Deng [Member]
Related Party Transaction [Line Items]
Related party borrowed			2,914
Yubao Liu [Member] | Well Best [Member]
Related Party Transaction [Line Items]
Advances from related parties			248,298
Yubao Liu [Member] | Lisite Science [Member]
Related Party Transaction [Line Items]
Advances from related parties				$ 29,998
Changchun Fangguan Electronic Science and Technology Co., Ltd [Member]
Related Party Transaction [Line Items]
Accounts payable - related parties	$ 0		$ 0		248,543
Shenzhen Baileqi S&T [Member]
Related Party Transaction [Line Items]
Ownership percentage	1.50%	1.50%	1.50%	1.50%
Cost of revenue - purchases related party			$ 454,049
Manufacturing costs	$ 0	$ 79,083	0	$ 271,186
Cost of revenue - manufacturing related party	0	$ 78,868	0	123,035
Accounts payable - related parties	55,829		55,829		0
Revenue from related party	0		93,838
Accounts receivable - related parties	$ 160,647		$ 160,647		119,543
Shenzhen Baileqi S&T [Member] | Baileqi Electronic [Member]
Related Party Transaction [Line Items]
Advances from related parties				$ 9,111
Keenest [Member]
Related Party Transaction [Line Items]
Ownership percentage	2.00%	2.00%	2.00%	2.00%
Cost of revenue - purchases related party			$ 1,610,058
Advances from related parties			0		$ 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
Keenest And Shenzhen Baileqi S&T [Member] | Lisite Science Technology (Shenzhen) Co., Ltd [Member]
Related Party Transaction [Line Items]
Purchases from related party	$ 933,679	$ 328,159	1,610,058	391,804
Cost of revenue - purchases related party	933,679	328,159		391,804
Keenest And Shenzhen Baileqi S&T [Member] | Shenzhen Baileqi Electronic Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
Purchases from related party	66,757	236,511	517,262	410,976
Cost of revenue - purchases related party	114,023	$ 199,993		$ 363,832
Changchun Fangguan Electronics Technology Co., Ltd. [Member] | Changchun Fangguan Photoelectric Display Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
Purchases from related party	706,462		1,498,744
Cost of revenue - purchases related party	366,646		1,130,052
Revenue from related party	$ 22,059		22,059
Liang Zhang [Member] | Dalian Shizhe New Energy Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
Advances from related parties			5,887
Zijian Yang [Member] | Dalian Shizhe New Energy Technology Co., Ltd. [Member]
Related Party Transaction [Line Items]
Advances from related parties			$ 5,139

CONCENTRATION (Details)

CONCENTRATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2018
Revenues	$ 2,251,548	$ 750,944	$ 4,820,436	$ 1,132,485
Accounts payable	3,715,537		3,715,537		$ 264,171
Accounts Receivable [Member]
Accounts receivables	417,851	79,400	$ 417,851	$ 79,400
Concentration risk percentage			12.00%	93.00%
Accounts Receivable [Member] | Customer B [Member]
Accounts receivables		79,400		$ 79,400
Concentration risk percentage				93.00%
Accounts Receivable [Member] | Customer A [Member]
Accounts receivables	417,851		$ 417,851
Concentration risk percentage			12.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration risk percentage
Revenue [Member]
Revenues	$ 1,981,369	$ 467,143	$ 3,389,702	$ 467,538
Concentration risk percentage	88.00%	62.00%	71.00%	41.00%
Revenue [Member] | Customer B [Member]
Revenues	$ 358,983	$ 173,883	$ 1,917,298	$ 174,278
Concentration risk percentage	16.00%	23.00%	40.00%	15.00%
Revenue [Member] | Customer A [Member]
Revenues	$ 733,511	$ 293,260	$ 1,472,404	$ 293,260
Concentration risk percentage	33.00%	39.00%	31.00%	26.00%
Revenue [Member] | Customer C [Member]
Revenues	$ 888,875
Concentration risk percentage	39.00%
Accounts Payable [Member]
Accounts payable	$ 55,829	$ 46,040	$ 55,829	$ 46,040
Concentration risk percentage			1.00%	29.00%
Accounts Payable [Member] | Supplier A [Member]
Accounts payable	55,829		$ 55,829
Concentration risk percentage			1.00%
Accounts Payable [Member] | Supplier B [Member]
Accounts payable		46,040		$ 46,040
Concentration risk percentage				29.00%
Accounts Payable [Member] | Supplier C [Member]
Accounts payable
Concentration risk percentage
Accounts Payable [Member] | Supplier D [Member]
Accounts payable
Concentration risk percentage
Purchases [Member]
Total Purchase	$ 1,888,750	$ 643,753	$ 4,411,380	$ 1,073,966
Concentration risk percentage	96.00%	100.00%	97.00%	90.00%
Purchases [Member] | Supplier A [Member]
Total Purchase	$ 933,679	$ 328,159	$ 1,610,058	$ 391,804
Concentration risk percentage	47.00%	51.00%	36.00%	33.00%
Purchases [Member] | Supplier B [Member]
Total Purchase	$ 706,462	$ 315,594	$ 517,262	$ 682,162
Concentration risk percentage	36.00%	49.00%	11.00%	57.00%
Purchases [Member] | Supplier C [Member]
Total Purchase	$ 248,609		$ 1,498,744
Concentration risk percentage	13.00%		33.00%
Purchases [Member] | Supplier D [Member]
Total Purchase			$ 785,316
Concentration risk percentage			17.00%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Tax at U.S. statutory rate			$ 64,310	$ 3,109
Tax rate difference between foreign operations and U.S.			25,739	(2,222)
Change in valuation allowance			30,442	8,486
Permanent difference			1,737
Effective tax	$ 71,802	$ 7,764	$ 122,228	$ 9,373

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current			$ 137,112	$ 9,373
Deferred			(14,884)
Effective tax	$ 71,802	$ 7,764	$ 122,228	$ 9,373

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	6 Months Ended
	Dec. 31, 2018USD ($)
Penalty assessment	$ 10,000
Statutory rate	35.00%
Revised statutory rate	21.00%
Operating loss carryforwards	$ 558,000
Expiration year	2,035
Description of income tax rate on foreign subsidiary	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.
Inland Revenue, Hong Kong [Member]
Foreign income tax rate	16.50%
CHINA
Foreign income tax rate	25.00%
Unified income tax rate	15.00%
UNITED STATES
Foreign income tax rate	25.00%