Winha International (WINH) 10-Q 20 Nov 17 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2017	Nov. 20, 2017
Document and Entity Information:
Entity Registrant Name	WINHA INTERNATIONAL GROUP LTD
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Trading Symbol	winh
Amendment Flag	false
Entity Central Index Key	1,584,057
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		49,989,500
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Apr. 15, 2013

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Mar. 31, 2017
ASSETS
Cash and cash equivalents	$ 1,192,141
Equity investment	14,596,559	$ 13,042,386
Total Assets	15,788,700	13,042,386
Current liabilities:
Accounts payable	75,863	57,045
Accrued expenses	22,000	30,000
Loan from stockholder	168,680	118,680
Total current liabilities	266,543	205,725
Commitments and contingent liabilities
Stockholders' equity:
Common stock, $0.001 par value per share, 200,000,000 shares authorized; 49,989,500 shares issued and outstanding as of September 30, 2017 and March 31, 2017	49,990	49,990
Additional paid-in capital	16,021,164	16,021,164
(Deficit)	(1,114,148)	(3,235,951)
Other comprehensive (loss) income	565,151	1,458
Total stockholders' equity	15,522,157	12,836,661
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 15,788,700	$ 13,042,386

CONSOLIDATED BALANCE SHEETS PAR

CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares	Jun. 30, 2017	Mar. 31, 2017
CONSOLIDATED BALANCE SHEETS PARENTHETICAL
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	49,989,500	49,989,500
Common stock shares outstanding	49,989,500	49,989,500

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Revenues		$ 14,866,148		$ 28,783,982
Cost of revenues		8,570,699		14,993,435
Gross profit		6,295,449		13,790,547
Operating expenses:
Selling and marketing		431,058		991,670
General and administrative	$ 37,424	557,733	$ 60,818	1,080,076
Financial expenses		6,689		16,232
Total operating expenses	37,424	995,480	60,818	2,087,978
(Loss) income from operations	(37,424)	5,299,969	(60,818)	11,702,569
(Loss) income of equity investment	(81,131)		2,182,621
Non-operating income (expense):
Other non-operating income		975		5,057
Other non-operating (expenses)		(456,365)		(456,365)
Total non-operating income (expense)	(81,131)	(455,390)	2,182,621	(451,308)
(Loss) income before provision for income taxes	(118,555)	4,844,579	2,121,803	11,251,261
Provision for income taxes		1,416,852		2,947,995
Net (loss) income before noncontrolling interest	(118,555)	3,427,727	2,121,803	8,303,266
Noncontrolling interest		1,371,091		3,321,307
Net (loss) income attributable to common stockholders	$ (118,555)	$ 2,056,636	$ 2,121,803	$ 4,981,959
Earnings per common share, basic and diluted		$ 0.04	$ 0.04	$ 0.10
Weighted average shares outstanding, basic and diluted	49,989,500	49,989,500	49,989,500	49,989,500
Other Comprehensive income:
Net (loss) income	$ (118,555)	$ 3,427,727	$ 2,121,803	$ 8,303,266
Foreign currency translation adjustment	290,865	(76,011)	563,693	(702,747)
Comprehensive (loss) income	172,310	3,351,716	2,685,496	7,600,519
Comprehensive income attributable to noncontrolling interest		1,340,403		3,040,207
Comprehensive (loss) income attributable to common stockholders	$ 172,310	$ 2,011,313	$ 2,685,496	$ 4,560,312

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Jun. 30, 2017 - USD ($)	Common stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Other Comprehensive (Loss)	Total
Balance at Mar. 31, 2017	$ 49,990	$ 16,021,164	$ (3,235,951)	$ 1,458	$ 12,836,661
Net income			2,121,803	563,693	2,685,496
Balance at Jun. 30, 2017	$ 49,990	$ 16,021,164	$ (1,114,148)	$ 565,151	$ 15,522,157

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 2,121,803	$ 8,303,266
(Loss) of equity investment	(2,182,621)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Write off deferred registration costs	0	212,312
Write off of website	0	46,167
Decrease in deferred tax assets	0	26,552
Depreciation and amortization		231,303
Changes in operating assets and liabilities:
(Increase) in accounts receivable		(2,460,650)
Decrease in inventories		942,652
Decrease in advances to suppliers		69,948
(Increase) in prepaid expenses		(5,525,358)
Increase (decrease) in accounts payable	18,818	(8,108)
Accounts payable paid by shareholder	50,000	0
(Decrease) in advances from customers		(739,182)
(Decrease) in taxes payable		(42,727)
(Decrease) in accrued expenses	(8,000)	(104,875)
Net cash provided by operating activities		951,300
Cash flows from investing activities:
Dividends received from investment	1,192,141	0
Purchase of fixed assets		(10,397,016)
Net cash provided by (used in) investing activities	1,192,141	(10,397,016)
Cash flows from financing activities:
Proceeds from stockholder loan-net		370,605
Repayment of redeemable convertible notes		(5,435,466)
Net cash (used in) financing activities		(5,064,861)
Effect of exchange rate changes on cash		(474,275)
Net change in cash	1,192,141	(14,984,852)
Cash, beginning of year		21,548,630
Cash, end of year	1,192,141	6,563,778
Supplemental disclosure of cash flow information:
Cash paid for interest		191,844
Cash paid for income taxes		2,921,604
Noncash financing activities:
Payment of accrued expenses and other payables by shareholder in the form of a loan	$ 50,000	$ 60,000

Note 1. Organization

Note 1. Organization	6 Months Ended
	Sep. 30, 2017
Notes
Note 1. Organization	1. ORGANIZATION AND BUSINESS Winha International Group Limited (“Winha International”) was incorporated in Nevada on April 15, 2013. The subsidiaries of the Company and their principal activities are described as follows: As of January 4, 2017, WINHA International’s subsidiary’s investment in WINHA Commerce and Trade International Limited (“Australian WINHA”) was reduced to 44.87% from 60% with the sale of shares by Australian WINHA. Accordingly, this investment has been deconsolidated and WINHA International now recognizes its shares of the earnings (loss) on the equity basis of accounting. Prior to the deconsolidation, WINHA International operated as follows: Winha International and its subsidiaries are collectively referred to as the “Company”. The Company retails local specialty products, including locally-produced food, beverages, and arts and crafts, from different regions across China through its subsidiaries. The Company provides customers with access to a variety of local products that can typically only be found in local stores or markets in specific regions of China. Initially, the Company operated its business through a variable interest entity, Zhongshan Winha Electronic Commerce Company Limited (“Zhongshan Winha”) which has two wholly owned limited liability subsidiaries, Zhongshan Supermarket Limited (“Zhongshan Supermarket”) and Zhongshan Winha Catering Management Co., Ltd. (“Winha Catering”), as well as three incorporated branches. The Company had the controlling interest in Zhongshan Winha via its wholly owned subsidiary Shenzhen Winha Information Technologies Company Ltd. (“Shenzhen Winha”) through a series of contractual arrangements. On November 27, 2015, the shareholders of Zhongshan Winha transferred their stock to Shenzhen Winha, upon the exercise of its option to purchase all of the registered equity. Zhongshan Winha is now a wholly owned subsidiary of Shenzhen Winha. The purchase price was $0.16. In May 2015, C&V International Company Limited, a wholly owned subsidiary of Winha International, set up a wholly owned subsidiary, Australian Winha. From February through May 2016, Winha International effected a reorganization of its subsidiaries, with the result that Australian Winha became the indirect owner, through subsidiaries, of Zhongshan Winha, the Company's operating subsidiary. In March 2016, 29% of the outstanding shares of Australian Winha were transferred to the following individuals and entities, each of which has a direct or indirect relationship with the major shareholder and consultants of the Company. Percentage of Shares Bonus shares issued Zhuowei Zhong 7% 5,040,000 Beijing Ruihua Future Investment Management Co. Ltd. 5% 3,600,000 Donghe Group Limited 5% 3,600,000 Xinxi Zhong. 5% 3,600,000 Zhifei Huang 4% 2,880,000 Chun Yan Winne Lam 3% 2,160,000 Total 29% 20,880,000 In addition, 11 individuals, suppliers of Zhongshan Winha, were each sold 1% of Australian Winha shares for $0.0001 per share as follows: The effect of these transactions was to reduce the interest of the Company in its Australian subsidiary by 40%. The Company used the Australian Winha offering price for its initial public offering in Australia to approximate the fair value of the 40% stock issued. The Company recognized stock compensation of $21,882,816 during the year ended March 31, 2016. On January 4, 2017, the Company’s 60% owned subsidiary, Australian Winha, was admitted to the ASX Limited Exchange in Australia and there were 24,271,191 ordinary shares issued at an issue price of AUD$0.35 per share to yield net proceeds of AUD$8,494,917 (approximately USD$6,123,000). As a result of the offering, the Company’s 60% ownership of Australian Winha was diluted to 44.87%. Because the Company’s ownership of Australia Winha was reduced to less than 50%, the Company was required to deconsolidate Australia Winha and recognize its share of the earnings (loss) reported by Australian Winha on the equity basis of accounting (See Notes 2 and 5).

Note 2. Summary of Significant

Note 2. Summary of Significant Accounting Policies	6 Months Ended
	Sep. 30, 2017
Notes
Note 2. Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Presentation The unaudited interim consolidated financial statements of the Company as of September 30, 2017 and for the three and six months ended September 30, 2017 and 2016, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The interim consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K filed with the SEC. The results of operations for the three and six months ended September 30, 2017 are not necessarily indicative of the results to be expected for future quarters or for the year ending March 31, 2018. All significant inter-company accounts and transactions have been eliminated in consolidation. All consolidated financial statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$” or “$”). The accounting policies disclosed hereafter principally relate to the operations previously consolidated by the Company until the date of deconsolidation on January 4, 2017. Deconsolidation of Australian Winha and Equity Method on Investment On January 4, 2017, the Company’s 60% owned subsidiary, Australian Winha issued 24,271,191 ordinary shares in connection with its public offering in Australia. After the offering, the Company’s 60% ownership of Australian Winha was diluted to 44.87%. In our financial statements, we consolidated Australian Winha until January 3, 2017. Since January 4, 2017, Winha International accounts for its investment in Australian Winha as an equity method investment subsequent to the deconsolidation. Foreign Currency Translation Until the deconsolidation on January 3, 2017, almost all Company assets and operations were located in the PRC. Subsequent to January 3, 2017, the Company’s investment is in Australia Winha, which consolidates all the operating entities principally in the PRC. The functional currency for the majority of the Company’s operations is the Renminbi (“RMB”). For Winha International Investment Holdings Company, the functional currency for the majority of its operations is the Hong Kong Dollar (“HKD”). For Australian Winha, the functional currency is the Australian Dollar (“AUD”). The Company uses the United States Dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes. The financial statements of the Company have been translated into US dollars in accordance with FASB ASC 830, “Foreign Currency Matters.” All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of operations, changes in stockholders’ equity and cash flow amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s financial statements are recorded as other comprehensive income (loss). The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the financial statements are as follows: September 30, 2017 March 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity, as of period end N/A $ 0.1451 For the three months ended September 30, 2017 2016 (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity N/A $ 0.1500 For the six months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity N/A $ 0.1515 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2017 March 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity, as of period end $ 0.7844 $ 0.7644 For the three months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity $ 0.7894 $ 0.7577 For the six months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity $ 0.7704 $ 0.7517 For the three and six months ended September 30, 2017 and 2016, foreign currency translation adjustments of $290,865 and $(76,011), respectively, $563,693 and $(702,747), respectively, have been reported as other comprehensive (loss). Pursuant to ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” Although government regulations in China now allow convertibility of the RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate. The value of the RMB against the Australian, US dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of the RMB may materially affect the Company’s financial condition in terms of US dollar reporting. Vulnerability Due to Operations in PRC The Company’s investment may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent, effective or continue. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Revenue Recognition The Company’s revenue recognition policies comply with FASB ASC 605 “Revenue Recognition.” The Company recognizes product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price paid by the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. The Company recognizes revenue from the following channels: 1. Retail stores - The Company recognizes sales revenue from its retail stores, net of sales taxes and estimated sales returns at the time it sells merchandise to the customer. Customer purchases of shopping cards are not recognized as revenue until the card is redeemed when the customer purchases merchandise by using the shopping card. When the fiscal year 2017 began, the Company was operating seven retail stores. During the three months ended September 30, 2016, the Company assigned the operation of six of its retail stores in Sanshui, Shunde, Chancheng, Xiaolan, Dongguan and Guangzhou to six independent individuals. Subsequently, revenues have been derived from the sale of food products to these six stores and one store that the Company operates. The Company recognizes revenue for product sales upon transfer of title to the six stores. Purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any store acceptance requirements, when applicable, are used to verify product delivery. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment During the three and six months ended September 30, 2016, wholesale revenue of $1,867,379 was generated from these six stores. 2. Custom-made sales - The target customers are commercial customers who can order online or in the Company’s local stores and make full payment on site. All orders are forwarded to Zhongshan Winha immediately, which arranges the delivery. Revenue from the sale of products is recognized upon delivery to customers provided that there are no uncertainties regarding customer acceptance, there is persuasive evidence of an arrangement, and the sales price is fixed and determinable. Revenue generated from custom-made sales was $9,880,153 and $19,696,330, respectively, for three and six months ended September 30, 2016. 3. Franchise and management fees During the three months ended September 30, 2015, the Company commenced franchising the use of the Company's trademark, name identification and other business resources. The franchisee is required to pay franchise fees and management fees to Zhongshan Winha. Franchise fee revenue from franchise sales is recognized only when all material services or conditions relating to the sale have been substantially performed or satisfied by the Company. The franchise and management fees recognized by the Company was $1,792,979 and $3,285,710, respectively, for the three and six months ended September 30, 2016 and are included in revenue. Zhongshan Winha grants certain commercial customers limited rights to return products and provides price protection for inventories held by resellers at the time of published price reductions. Zhongshan Winha establishes an estimated allowance for future product returns based upon historical return experience when the related revenue is recorded and provides for appropriate price protection reserves when pricing adjustments are approved. Zhongshan Winha’s return policy allows customers to return their merchandise in the original box and/or packaging within 7 days of purchase. The Company has not experienced material returns or price adjustments Fair Value of Financial Instruments FASB ASC 820, “Fair Value Measurement,” Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of September 30, 2017 and March 31, 2017, none of the Company’s assets and liabilities were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including accounts payable, accrued expenses and loan from stockholder approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on the de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with these tax positions. As of September 30, 2017 and March 31, 2017, the Company did not record any liabilities for unrecognized income tax benefits. The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows: United States The Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income tax in the United States has been made as the Company had no U.S. taxable income for the three and six months ended September 30, 2017 and 2016. Anguilla Sanmei International Investment Co, Ltd is incorporated in Anguilla and is governed by the income tax laws of Anguilla. According to current Anguilla income tax law, the applicable income tax rate for the Company is 0%. Australia Winha Commerce and Trade Limited is incorporated in Australia. Pursuant to the income tax laws of Australia, the Company is not subject to tax on non-Australian source income. Cayman Islands C&V International Holdings Company Limited is incorporated in Cayman Islands and is governed by the income tax laws of the Cayman Islands. According to current Cayman Islands income tax law, the applicable income tax rate for the Company is 0%. Hong Kong Winha International Investment Holdings Company Limited is incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non-Hong Kong source income. PRC Shenzhen Winha, Zhongshan Winha Electronic Commerce Company Limited together with Zhongshan Winha Catering Management Company Limited and Zhongshan Supermarket Limited are subject to an Enterprise Income Tax at 25% and each files its own tax return. Net Income (Loss) Per Common Share The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share” (“ASC 260”). Under the provisions of ASC 260, basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted income per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding plus the effect of any potential dilutive shares outstanding during the period. There were no dilutive shares outstanding during the three and six months ended September 30, 2017 and 2016. Accordingly, the number of weighted average shares outstanding as well as the amount of net income per share are the same for basic and diluted per share calculations for the periods reflected in the accompanying consolidated statements of operations and other comprehensive income. Statutory Reserve The Company’s China-based operation are required to make appropriations of retained earnings for certain non-distributable reserve funds. Pursuant to the China Foreign Investment Enterprises laws, the Company’s China-based subsidiaries, are required to make appropriations from their after-tax profit as determined under generally accepted accounting principles in the PRC (the “after-tax-profit under PRC GAAP”) to a general non-distributable reserve fund. Each year, at least 10% of each entities after-tax-profit under PRC GAAP is required to be set aside as a general reserve fund until the fund equals 50% of the registered capital of the applicable entity. The statutory reserve fund is restricted as to use and can only be used to offset against losses, expansion of production and operations and increasing registered capital of the respective company. The fund is not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor is it allowed for distribution except under liquidation. The required transfer to the statutory reserve fund was $30,027 and $306,465, respectively, for the three and six months ended September 30, 2016.

Note 3. Recently Issued Account

Note 3. Recently Issued Accounting Standards	6 Months Ended
	Sep. 30, 2017
Notes
Note 3. Recently Issued Accounting Standards	3. RECENTLY ISSUED ACCOUNTING STANDARDS In February 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU requires all entities to derecognize a business or nonprofit activity in accordance with Topic 810, and also requires all entities derecognize an equity method investment in accordance with Topic 860. The amendments in this ASU eliminate the scope exceptions, and simplifies GAAP. This ASU is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within that reporting period. Public entities may apply the guidance earlier but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses the classification of certain specific cash flow issues including debt prepayment or extinguishment costs, settlement of certain debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of certain insurance claims and distributions received from equity method investees. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently evaluating the effect this ASU will have on its consolidated statement of cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard will be effective for the Company beginning January 1, 2020, with early application permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance supersedes current guidance on revenue recognition in Topic 605, Revenue Recognition. In addition, there are disclosure requirements related to the nature, amount, timing, and uncertainty of revenue recognition. In August 2015, the FASB issued ASU No.2015-14 to defer the effective date of ASU No. 2014-09 for all entities by one year. For public business entities that follow U.S. GAAP, the deferral results in the new revenue standard being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. There is no impact to the Company of adopting this standard on its consolidated financial statements. In May, 2016, the FASB issued ASU No. 2016-10, Revenue with Contracts with Customers: Narrow-scope Improvements and Practical Expedients, which is an amendment to ASU No. 2014-09 that clarifies the objective of the collectability criterion, to allow entities to exclude amounts collected from customers from all sales taxes from the transaction price, to specify the measurement date for noncash consideration is contract inception. Variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration, and clarification on contract modifications at transition. The implementation guidelines follow ASU No. 2014-09. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for the Company beginning April 1, 2020 and interim periods within that fiscal year. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company has no lease, so there is no impact to the Company.

Note 4. Equity Investment

Note 4. Equity Investment	6 Months Ended
	Sep. 30, 2017
Notes
Note 4. Equity Investment	4. EQUITY INVESTMENT On November 7, 2016, Australian Winha, entered into a series of contractual agreements (the "Acquisition Agreements") with Flavours Fruit & Veg Pty Ltd ("Flavours"), an Australia company, World of Flavours Pty Ltd ("World") and Select Providor Pty Ltd ("Select") (collectively "Flavours Shareholders"), to acquire 49% shares of Flavours. On January 4, 2017, the Company’s 60% owned subsidiary, Australian Winha issued 24,271,191 ordinary shares. After the offering, the Company’s 60% ownership of Australian Winha was reduced to 44.87%. Under the equity method, the Company's investment in Australian Winha was initially recognized at fair value of $13,141,799 and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income (loss) of Australian Winha. The market value of the investment on the ASX Limited Exchange as of September 30, 2017 was approximately $23,000,000. When determining the balance sheet value of the equity investment of the Company, the interest held in Australian Winha was not written up to fair value. Rather, the investment was determined at the book value of Australian Winha. The following table reconciles the investment income with equity investment for the six months ended September 30, 2017 and for the year ended March 31, 2017, respectively: September 30, 2017 March 31, 2017 (Unaudited) Equity investment - beginning $ 13,042,386 $ 13,141,799 Investment income (loss) 2,182,621 (103,635) Other comprehensive (loss) gain (504,188) 4,222 Dividend declared (approximately USD $0.026 per share) (1,166,554) - Equity investment - ending $ 13,554,265 $ 13,042,386 The following tables summarize the operations and balance sheet information of Australia Winha and subsidiaries: Six Months Ended Sept. 30, 2017 Year Ended March 31, 2017 (Unaudited) Revenues $ 36,088,453 $ 22,107,355 Gross profit $ 13,799,433 $ 8,825,839 Net income (loss) $ 4,864,321 $ (230,969) As at September 30, 2017 As at March 31, 2017 (Unaudited) Total assets $ 38,050,937 $ 43,293,241 Total liabilities $ 2,357,737 $ 3,438,626

Note 5. Related Party Transacti

Note 5. Related Party Transactions	6 Months Ended
	Sep. 30, 2017
Notes
Note 5. Related Party Transactions	5. RELATED PARTY TRANSACTIONS The Company obtained demand loans from the chairman of the board, which are non-interest bearing. The loans of $118,680 as of September 30, 2017 and March 31, 2017 are reflected as loan from stockholder in the consolidated balance sheets.

Note 6. Income Taxes

Note 6. Income Taxes	6 Months Ended
	Sep. 30, 2017
Notes
Note 6. Income Taxes	6. INCOME TAXES The Company is required to file income tax returns in the United States and prior to deconsolidation in Australia and the PRC. Its operations in the United States have been insignificant and income taxes have not been accrued. The provision for income taxes consisted of the following for the three and six months ended September 30: Three Months Ended September 30, Six Months Ended September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ - $ 1,430,329 $ - $ 2,974,547 Deferred - (13,477) - (26,552) $ - $ 1,416,852 $ - $ 2,947,995 The following table reconciles the effective income tax rates with the statutory rates for the three and six months ended September 30, respectively: For the three months ended September 30, For the six months ended September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Statutory rate 34% 25.0% 34% 25.0% Change in valuation allowance (34%) 4.3% (34%) 1.2% Other - 0.5% - 0.2% Effective income tax rate - 29.8% - 26.4% During the three and six months ended September 30, 2016, the Company did not recognize any tax benefit related to Parent’s loss of approximately $(15,865,000) since it has no income. The stock compensation of approximately $15,865,000 would be deductible only to the U.S. Parent Company and accordingly there is no deferred tax benefit to be recognized. The stock compensation of approximately $6,017,000 cannot be deducted by the Operating Company under PRC tax laws. Deferred tax assets and liabilities are recognized for expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The laws of China permit the carry-forward of net operating losses for a period of five years. U.S. federal net operating losses can generally be carried forward twenty years. Deferred tax assets are comprised of the following: September 30, 2017 March 31, 2017 (Unaudited) Net operating loss carryforwards $ 7,239,616 $ 7,239,616 Less: valuation allowance (7,239,616) (7,239,616) Net deferred tax asset $ - $ - At both September 30, 2017 and March 31, 2017, the Company had unused operating loss carry-forwards of approximately $20,685,000, expiring in various years through 2037. As it is more likely than not that the benefit from the NOL carryforwards will not be realized, $7,239,616 valuation allowance has been recognized as of September 30, 2017 and March 31, 2017. The valuation allowance increased by approximately $936,000 during the year ended March 31, 2017. The carryforwards are principally in the United States. The Company’s tax filings are subject to examination by the tax authorities. The tax years ended March 31, 2016, 2015 and 2014 remain open to examination by the tax authorities in the PRC. The Company’s U.S. tax returns for the years ended March 31, 2016, 2015, and 2014 are subject to examination by the tax authorities.

Note 2. Summary of Significan13

Note 2. Summary of Significant Accounting Policies: Basis of Accounting and Presentation (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Basis of Accounting and Presentation	Basis of Accounting and Presentation The unaudited interim consolidated financial statements of the Company as of September 30, 2017 and for the three and six months ended September 30, 2017 and 2016, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. The interim consolidated financial information should be read in conjunction with the consolidated financial statements and the notes thereto, included in the Company’s Form 10-K filed with the SEC. The results of operations for the three and six months ended September 30, 2017 are not necessarily indicative of the results to be expected for future quarters or for the year ending March 31, 2018. All significant inter-company accounts and transactions have been eliminated in consolidation. All consolidated financial statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$” or “$”). The accounting policies disclosed hereafter principally relate to the operations previously consolidated by the Company until the date of deconsolidation on January 4, 2017.

Note 2. Summary of Significan14

Note 2. Summary of Significant Accounting Policies: Deconsolidation of Australian Winha and Equity Method On Investment (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Deconsolidation of Australian Winha and Equity Method On Investment	Deconsolidation of Australian Winha and Equity Method on Investment On January 4, 2017, the Company’s 60% owned subsidiary, Australian Winha issued 24,271,191 ordinary shares in connection with its public offering in Australia. After the offering, the Company’s 60% ownership of Australian Winha was diluted to 44.87%. In our financial statements, we consolidated Australian Winha until January 3, 2017. Since January 4, 2017, Winha International accounts for its investment in Australian Winha as an equity method investment subsequent to the deconsolidation.

Note 2. Summary of Significan15

Note 2. Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Foreign Currency Translation	Foreign Currency Translation Until the deconsolidation on January 3, 2017, almost all Company assets and operations were located in the PRC. Subsequent to January 3, 2017, the Company’s investment is in Australia Winha, which consolidates all the operating entities principally in the PRC. The functional currency for the majority of the Company’s operations is the Renminbi (“RMB”). For Winha International Investment Holdings Company, the functional currency for the majority of its operations is the Hong Kong Dollar (“HKD”). For Australian Winha, the functional currency is the Australian Dollar (“AUD”). The Company uses the United States Dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes. The financial statements of the Company have been translated into US dollars in accordance with FASB ASC 830, “Foreign Currency Matters.” All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date. Equity accounts have been translated at their historical exchange rates when the capital transactions occurred. Statements of operations, changes in stockholders’ equity and cash flow amounts have been translated using the average exchange rate for the periods presented. Adjustments resulting from the translation of the Company’s financial statements are recorded as other comprehensive income (loss). The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the financial statements are as follows: September 30, 2017 March 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity, as of period end N/A $ 0.1451 For the three months ended September 30, 2017 2016 (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity N/A $ 0.1500 For the six months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity N/A $ 0.1515 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2017 March 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity, as of period end $ 0.7844 $ 0.7644 For the three months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity $ 0.7894 $ 0.7577 For the six months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity $ 0.7704 $ 0.7517 For the three and six months ended September 30, 2017 and 2016, foreign currency translation adjustments of $290,865 and $(76,011), respectively, $563,693 and $(702,747), respectively, have been reported as other comprehensive (loss). Pursuant to ASC 740-30-25-17, “Exceptions to Comprehensive Recognition of Deferred Income Taxes,” Although government regulations in China now allow convertibility of the RMB for current account transactions, significant restrictions still remain. Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate. The value of the RMB against the Australian, US dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of the RMB may materially affect the Company’s financial condition in terms of US dollar reporting.

Note 2. Summary of Significan16

Note 2. Summary of Significant Accounting Policies: Vulnerability Due To Operations in PRC (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Vulnerability Due To Operations in PRC	Vulnerability Due to Operations in PRC The Company’s investment may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent, effective or continue.

Note 2. Summary of Significan17

Note 2. Summary of Significant Accounting Policies: Use of Estimates (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Note 2. Summary of Significan18

Note 2. Summary of Significant Accounting Policies: Revenue Recognition (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Revenue Recognition	Revenue Recognition The Company’s revenue recognition policies comply with FASB ASC 605 “Revenue Recognition.” The Company recognizes product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the price paid by the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. The Company recognizes revenue from the following channels: 1. Retail stores - The Company recognizes sales revenue from its retail stores, net of sales taxes and estimated sales returns at the time it sells merchandise to the customer. Customer purchases of shopping cards are not recognized as revenue until the card is redeemed when the customer purchases merchandise by using the shopping card. When the fiscal year 2017 began, the Company was operating seven retail stores. During the three months ended September 30, 2016, the Company assigned the operation of six of its retail stores in Sanshui, Shunde, Chancheng, Xiaolan, Dongguan and Guangzhou to six independent individuals. Subsequently, revenues have been derived from the sale of food products to these six stores and one store that the Company operates. The Company recognizes revenue for product sales upon transfer of title to the six stores. Purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any store acceptance requirements, when applicable, are used to verify product delivery. The Company assesses whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment During the three and six months ended September 30, 2016, wholesale revenue of $1,867,379 was generated from these six stores. 2. Custom-made sales - The target customers are commercial customers who can order online or in the Company’s local stores and make full payment on site. All orders are forwarded to Zhongshan Winha immediately, which arranges the delivery. Revenue from the sale of products is recognized upon delivery to customers provided that there are no uncertainties regarding customer acceptance, there is persuasive evidence of an arrangement, and the sales price is fixed and determinable. Revenue generated from custom-made sales was $9,880,153 and $19,696,330, respectively, for three and six months ended September 30, 2016. 3. Franchise and management fees During the three months ended September 30, 2015, the Company commenced franchising the use of the Company's trademark, name identification and other business resources. The franchisee is required to pay franchise fees and management fees to Zhongshan Winha. Franchise fee revenue from franchise sales is recognized only when all material services or conditions relating to the sale have been substantially performed or satisfied by the Company. The franchise and management fees recognized by the Company was $1,792,979 and $3,285,710, respectively, for the three and six months ended September 30, 2016 and are included in revenue. Zhongshan Winha grants certain commercial customers limited rights to return products and provides price protection for inventories held by resellers at the time of published price reductions. Zhongshan Winha establishes an estimated allowance for future product returns based upon historical return experience when the related revenue is recorded and provides for appropriate price protection reserves when pricing adjustments are approved. Zhongshan Winha’s return policy allows customers to return their merchandise in the original box and/or packaging within 7 days of purchase. The Company has not experienced material returns or price adjustments

Note 2. Summary of Significan19

Note 2. Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Fair Value of Financial Instruments	Fair Value of Financial Instruments FASB ASC 820, “Fair Value Measurement,” Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of September 30, 2017 and March 31, 2017, none of the Company’s assets and liabilities were required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including accounts payable, accrued expenses and loan from stockholder approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

Note 2. Summary of Significan20

Note 2. Summary of Significant Accounting Policies: Income Taxes (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on the de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with these tax positions. As of September 30, 2017 and March 31, 2017, the Company did not record any liabilities for unrecognized income tax benefits. The income tax laws of various jurisdictions in which the Company and its subsidiaries operate are summarized as follows: United States The Company is subject to United States tax at graduated rates from 15% to 35%. No provision for income tax in the United States has been made as the Company had no U.S. taxable income for the three and six months ended September 30, 2017 and 2016. Anguilla Sanmei International Investment Co, Ltd is incorporated in Anguilla and is governed by the income tax laws of Anguilla. According to current Anguilla income tax law, the applicable income tax rate for the Company is 0%. Australia Winha Commerce and Trade Limited is incorporated in Australia. Pursuant to the income tax laws of Australia, the Company is not subject to tax on non-Australian source income. Cayman Islands C&V International Holdings Company Limited is incorporated in Cayman Islands and is governed by the income tax laws of the Cayman Islands. According to current Cayman Islands income tax law, the applicable income tax rate for the Company is 0%. Hong Kong Winha International Investment Holdings Company Limited is incorporated in Hong Kong. Pursuant to the income tax laws of Hong Kong, the Company is not subject to tax on non-Hong Kong source income. PRC Shenzhen Winha, Zhongshan Winha Electronic Commerce Company Limited together with Zhongshan Winha Catering Management Company Limited and Zhongshan Supermarket Limited are subject to an Enterprise Income Tax at 25% and each files its own tax return.

Note 2. Summary of Significan21

Note 2. Summary of Significant Accounting Policies: Net Income (loss) Per Common Share (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Net Income (loss) Per Common Share	Net Income (Loss) Per Common Share The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share” (“ASC 260”). Under the provisions of ASC 260, basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted income per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding plus the effect of any potential dilutive shares outstanding during the period. There were no dilutive shares outstanding during the three and six months ended September 30, 2017 and 2016. Accordingly, the number of weighted average shares outstanding as well as the amount of net income per share are the same for basic and diluted per share calculations for the periods reflected in the accompanying consolidated statements of operations and other comprehensive income.

Note 2. Summary of Significan22

Note 2. Summary of Significant Accounting Policies: Statutory Reserve (Policies)	6 Months Ended
	Sep. 30, 2017
Policies
Statutory Reserve	Statutory Reserve The Company’s China-based operation are required to make appropriations of retained earnings for certain non-distributable reserve funds. Pursuant to the China Foreign Investment Enterprises laws, the Company’s China-based subsidiaries, are required to make appropriations from their after-tax profit as determined under generally accepted accounting principles in the PRC (the “after-tax-profit under PRC GAAP”) to a general non-distributable reserve fund. Each year, at least 10% of each entities after-tax-profit under PRC GAAP is required to be set aside as a general reserve fund until the fund equals 50% of the registered capital of the applicable entity. The statutory reserve fund is restricted as to use and can only be used to offset against losses, expansion of production and operations and increasing registered capital of the respective company. The fund is not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor is it allowed for distribution except under liquidation. The required transfer to the statutory reserve fund was $30,027 and $306,465, respectively, for the three and six months ended September 30, 2016.

Note 2. Summary of Significan23

Note 2. Summary of Significant Accounting Policies: Foreign Currency Translation: Schedule of Intercompany Foreign Currency Balances (Tables)	6 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Intercompany Foreign Currency Balances	September 30, 2017 March 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity, as of period end N/A $ 0.1451 For the three months ended September 30, 2017 2016 (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity N/A $ 0.1500 For the six months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity N/A $ 0.1515 The exchange rates used to translate amounts in AUD into US dollars for the purposes of preparing the consolidated financial statements are as follows: September 30, 2017 March 31, 2017 (Unaudited) Balance sheet items, except for stockholders’ equity, as of period end $ 0.7844 $ 0.7644 For the three months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity $ 0.7894 $ 0.7577 For the six months ended September 30, 2017 2016 (Unaudited) (Unaudited) Amounts included in the statements of operations and changes in stockholders’ equity $ 0.7704 $ 0.7517

Note 4. Equity Investment_ Equi

Note 4. Equity Investment: Equity Investments (Tables)	6 Months Ended
	Sep. 30, 2017
Tables/Schedules
Equity Investments	September 30, 2017 March 31, 2017 (Unaudited) Equity investment - beginning $ 13,042,386 $ 13,141,799 Investment income (loss) 2,182,621 (103,635) Other comprehensive (loss) gain (504,188) 4,222 Dividend declared (approximately USD $0.026 per share) (1,166,554) - Equity investment - ending $ 13,554,265 $ 13,042,386 The following tables summarize the operations and balance sheet information of Australia Winha and subsidiaries: Six Months Ended Sept. 30, 2017 Year Ended March 31, 2017 (Unaudited) Revenues $ 36,088,453 $ 22,107,355 Gross profit $ 13,799,433 $ 8,825,839 Net income (loss) $ 4,864,321 $ (230,969) As at September 30, 2017 As at March 31, 2017 (Unaudited) Total assets $ 38,050,937 $ 43,293,241 Total liabilities $ 2,357,737 $ 3,438,626

Note 6. Income Taxes_ Schedule

Note 6. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	6 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)	Three Months Ended September 30, Six Months Ended September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current $ - $ 1,430,329 $ - $ 2,974,547 Deferred - (13,477) - (26,552) $ - $ 1,416,852 $ - $ 2,947,995

Note 6. Income Taxes_ Schedul26

Note 6. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	6 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	For the three months ended September 30, For the six months ended September 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Statutory rate 34% 25.0% 34% 25.0% Change in valuation allowance (34%) 4.3% (34%) 1.2% Other - 0.5% - 0.2% Effective income tax rate - 29.8% - 26.4%

Note 6. Income Taxes_ Schedul27

Note 6. Income Taxes: Schedule of Deferred Tax Assets (Tables)	6 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Deferred Tax Assets	September 30, 2017 March 31, 2017 (Unaudited) Net operating loss carryforwards $ 7,239,616 $ 7,239,616 Less: valuation allowance (7,239,616) (7,239,616) Net deferred tax asset $ - $ -

Note 1. Organization (Details)

Note 1. Organization (Details) - USD ($)	6 Months Ended	12 Months Ended
	Sep. 30, 2017	Mar. 31, 2016
Details
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Apr. 15, 2013
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures		$ 21,882,816

Note 2. Summary of Significan29

Note 2. Summary of Significant Accounting Policies: Foreign Currency Translation: Schedule of Intercompany Foreign Currency Balances (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
CHINA
Balance sheet items, except for stockholders' equity					0.1451
Amounts included in the statements of operations, statements of changes in stockholders' equity (deficit) and statements of cash flows		0.1500		0.1515
AUSTRALIA
Balance sheet items, except for stockholders' equity	0.7844		0.7844		0.7644
Amounts included in the statements of operations, statements of changes in stockholders' equity (deficit) and statements of cash flows	0.7894	0.7577	0.7704	0.7517

Note 2. Summary of Significan30

Note 2. Summary of Significant Accounting Policies: Foreign Currency Translation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Foreign currency translation adjustment	$ 290,865	$ (76,011)	$ 563,693	$ (702,747)

Note 2. Summary of Significan31

Note 2. Summary of Significant Accounting Policies: Revenue Recognition (Details) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Revenues	$ 14,866,148	$ 28,783,982
Retail Stores
Revenues	1,867,379	1,867,379
Custom-made sales
Revenues	9,880,153	19,696,330
Franchise and Management
Revenues	$ 1,792,979	$ 3,285,710

Note 2. Summary of Significan32

Note 2. Summary of Significant Accounting Policies: Statutory Reserve (Details) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Details
Transfer to Statutory Reserve	$ 30,027	$ 306,465

Note 4. Equity Investment (Deta

Note 4. Equity Investment (Details)	Mar. 31, 2017USD ($)
Details
Equity Method Investments, Fair Value Disclosure	$ 13,141,799

Note 4. Equity Investment_ Eq34

Note 4. Equity Investment: Equity Investments (Details) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Equity investment		$ 14,596,559				$ 13,042,386
Revenues			$ 14,866,148		$ 28,783,982
Gross profit			6,295,449		13,790,547
Net income	$ (118,555)	2,685,496	$ 3,427,727	$ 2,121,803	$ 8,303,266
Total Assets		$ 15,788,700				13,042,386
Australian Winha
Equity investment	13,554,265			13,554,265		13,042,386	$ 13,141,799
Investment Income (loss)				2,182,621		(103,635)
Other Comprehensive Income (Loss), before Tax				(504,188)		4,222
Other Comprehensive Income (Loss) - Dividend Declared				(1,166,554)
Revenues				36,088,453		22,107,355
Gross profit				13,799,433		8,825,839
Net income				4,864,321		(230,969)
Total Assets	38,050,937			38,050,937		43,293,241
Liabilities	$ 2,357,737			$ 2,357,737		$ 3,438,626

Note 5. Related Party Transac35

Note 5. Related Party Transactions (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Details
Loans and Leases Receivable, Related Parties	$ 118,680	$ 118,680

Note 6. Income Taxes_ Schedul36

Note 6. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Details
Current Income Tax Expense (Benefit)	$ 1,430,329	$ 2,974,547
Deferred Income Tax Expense (Benefit)	(13,477)	(26,552)
Provision for income taxes	$ 1,416,852	$ 2,947,995

Note 6. Income Taxes_ Schedul37

Note 6. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		29.80%		26.40%
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	(34.00%)	4.30%	(34.00%)	1.20%
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent		0.50%		0.20%
CHINA
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	25.00%	34.00%	25.00%

Note 6. Income Taxes_ Schedul38

Note 6. Income Taxes: Schedule of Deferred Tax Assets (Details) - USD ($)	Sep. 30, 2017	Mar. 31, 2017
Details
Net operating loss carryforwards	$ 7,239,616	$ 7,239,616
Valuation allowance	$ (7,239,616)	$ (7,239,616)

Note 6. Income Taxes (Details)

Note 6. Income Taxes (Details) - USD ($)	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2017
Details
Operating loss carryforwards		$ 20,685,000
Operating Loss Carryforwards, Valuation Allowance	$ 7,239,616	$ 7,239,616
Valuation Allowances and Reserves, Period Increase (Decrease)	$ 936,000