Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2016shares | |
Document And Entity Information | |
Entity Registrant Name | Wins Finance Holdings Inc. |
Entity Central Index Key | 1,640,251 |
Document Type | 20-F |
Document Period End Date | Jun. 30, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Is Entity a Well-known Seasoned Issuer | No |
Is Entity a Voluntary Filer | No |
Is Entity's Reporting Status Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 20,041,647 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
ASSETS | ||
Cash | $ 47,163,965 | $ 9,883,091 |
Restricted cash | 27,962,846 | 28,494,217 |
Short-term investment | 149,841,838 | 184,160,555 |
Guarantee paid on behalf of guarantee service customers | 2,039,684 | 633,313 |
Interest receivable | 1,021,306 | 247,912 |
Net investment in direct financing leases | 74,705,647 | 25,829,055 |
Deferred tax assets, net | 428,524 | 414,479 |
Property and equipment, net | 854,719 | 915,416 |
Other assets | 608,751 | 427,386 |
TOTAL ASSETS | 304,627,280 | 251,005,424 |
Liabilities | ||
Bank loans for capital lease business | 43,308,617 | 511,825 |
Interest payable | 208,947 | 49,719 |
Income tax payable | 2,510,847 | 3,067,757 |
Unearned income from financial guarantee services | 423,801 | 3,659,062 |
Other liabilities | 10,099,055 | 4,067,343 |
Due to related party | 464,000 | |
Allowance on financial guarantee services | 3,079,684 | 1,261,868 |
Deferred income tax liability | 477,398 | 1,123,742 |
Total Liabilities | 60,572,349 | 13,741,316 |
Stockholders' Equity | ||
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 20,041,647 and 16,800,000 shares issued and outstanding at June 30, 2016 and 2015, respectively) | 2,004 | 1,680 |
Additional paid-in capital | 213,400,296 | 199,365,902 |
Statutory reserve | 2,364,245 | 325 |
Retained earnings | 43,244,044 | 33,490,567 |
Accumulated other comprehensive (loss)/income | (14,955,658) | 4,405,634 |
Total Stockholders' Equity | 244,054,931 | 237,264,108 |
TOTAL LIABILITIES AND EQUITY | $ 304,627,280 | $ 251,005,424 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Oct. 26, 2015 | Jun. 30, 2015 |
Statement of Financial Position [Abstract] | |||
Common stock, par value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 20,041,647 | 21,526,747 | 16,800,000 |
Common stock, shares outstanding | 20,041,647 | 21,526,747 | 16,800,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS)/INCOME - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Guarantee service income | ||
Commissions and fees on financial guarantee services | $ 6,193,225 | $ 7,860,629 |
(Provision)/reversal of provision on financial guarantee services | (2,907,999) | 576,456 |
Commission and fees on guarantee services, net | 3,285,226 | 8,437,085 |
Direct financing lease income | ||
Direct financing lease interest income | 3,164,317 | 3,547,273 |
Interest expense for direct financing lease | (746,615) | (454,002) |
Provision for lease payment receivable | (597,444) | (70,467) |
Net direct financing lease interest income after provision for receivables | 1,820,258 | 3,022,804 |
Financial advisory and lease agency income | 402,800 | 3,386,586 |
Net revenue | 5,508,284 | 14,846,475 |
Non-interest income | ||
Interest on short-term investment | 13,958,540 | 16,657,246 |
Total non-interest income | 13,958,540 | 16,657,246 |
Non-interest expense | ||
Business taxes and surcharge | (167,867) | (200,223) |
Salaries and employees surcharge | (1,524,720) | (424,872) |
Rental expenses | (271,357) | (190,239) |
Other operating expenses | (4,621,038) | (1,468,741) |
Total non-interest expense | (6,584,982) | (2,284,075) |
Income before taxes | 12,881,842 | 29,219,646 |
Income tax expense | (1,387,373) | (3,662,488) |
Deferred tax benefit | 622,928 | 515,495 |
NET INCOME | 12,117,397 | 26,072,653 |
Other comprehensive income | ||
Foreign currency translation adjustment | (19,361,292) | 1,757,840 |
COMPREHENSIVE (LOSS) INCOME | $ (7,243,895) | $ 27,830,493 |
Weighted-average ordinary shares outstanding - basic and diluted | 20,012,356 | 16,800,000 |
Earnings per share - Basic and diluted | $ 0.61 | $ 1.55 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated other Comprehensive (Loss)/Income [Member] | Statutory Reserve [Member] | Retained Earnings /(Deficits) [Member] | Total |
Beginning Balance at Jun. 30, 2014 | $ 1,680 | $ 199,365,902 | $ 2,647,794 | $ 325 | $ 7,417,914 | $ 209,433,615 |
Beginning Balance, shares at Jun. 30, 2014 | 16,800,000 | |||||
Net income | 26,072,653 | 26,072,653 | ||||
Foreign currency translation adjustment | 1,757,840 | 1,757,840 | ||||
Beginning Balance at Jun. 30, 2015 | $ 1,680 | $ 199,365,902 | $ 4,405,634 | $ 325 | $ 33,490,567 | $ 237,264,108 |
Beginning Balance, shares at Jun. 30, 2015 | 16,800,000 | |||||
Shares issued in reverse acquisition | 473 | 29,668,692 | 29,669,165 | |||
Shares issued in reverse acquisition, shares | 4,726,747 | |||||
Share repurchase | $ (149) | $ (17,524,031) | $ (17,524,180) | |||
Share repurchase, shares | (1,485,100) | |||||
Share based compensation | 1,889,733 | 1,889,733 | ||||
Statutory Reserve | 2,363,920 | 2,363,920 | ||||
Net income | 9,753,477 | 9,753,477 | ||||
Foreign currency translation adjustment | (19,361,292) | (19,361,292) | ||||
Beginning Balance at Jun. 30, 2016 | $ 2,004 | $ 213,400,296 | $ (14,955,658) | $ 2,364,245 | $ 43,244,044 | $ 244,054,931 |
Beginning Balance, shares at Jun. 30, 2016 | 20,041,647 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 12,117,397 | $ 26,072,653 |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | ||
Depreciation | 411,635 | 257,464 |
Share-based compensation | 1,889,733 | |
Interest expense for convertible debt | 113,644 | |
Loss on sale of property, plant and equipment | 4,706 | |
Provision for lease payment receivables | 597,444 | 70,467 |
Deferred tax assets benefit | (622,928) | (515,495) |
Reversal of/(provision for) guarantee | 2,907,999 | (576,456) |
Changes in assets and liabilities: | ||
Net investment in direct financing leases | (53,059,622) | (2,594,907) |
Commission receivable | 5,538,846 | |
Guarantee paid on behalf of guarantee service customers | (2,432,997) | (109,809) |
Interest receivable | (783,680) | 1,247,794 |
Other assets | (330,841) | 2,657,313 |
Lease receivables in lease agency transactions | 475,764 | |
Lease payables in lease agency transactions | (466,938) | |
Interest payable | 168,109 | 49,492 |
Income tax payable | (324,831) | 2,613,867 |
Unearned income | (3,036,771) | (3,946,241) |
Other liabilities | 6,773,728 | 402,089 |
Net Cash (Used in)/Provided by Operating Activities | (35,611,981) | 31,180,609 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of short-term investments | (23,873,645) | (183,299,389) |
Proceeds from maturities of short-term investments | 44,287,804 | 143,380,854 |
Deposit paid to banks for financial guarantee services | (28,814,613) | (28,360,974) |
Deposit released from banks for financial guarantee services | 27,049,045 | 16,271,836 |
Purchase of property, plant and equipment | (418,999) | (251,832) |
Loan repaid by owners | 47,619,902 | |
Loan lent to owners | (21,568,398) | |
Net Cash Provided by/(Used in) Investing Activities | 18,229,592 | (26,208,001) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Capital paid in by owners | 29,669,019 | |
Proceeds from bank loans | 44,141,961 | (102,103) |
Proceeds of convertible debt | 8,500,000 | |
Repayment of convertible debt | (8,613,644) | |
Repayment of share repurchase | (17,060,180) | |
Proceeds from short term loans | 25,580,448 | |
Repayment of short term loans | (25,580,448) | |
Loan repaid to owners | (420,316) | |
Loan borrowed from owners | 40,733 | |
Net Cash Provided by/(Used in) Financing Activities | 56,637,156 | (481,686) |
EFFECT OF FOREIGN CURRENCY TRANSLATION ON CASH | (1,973,893) | 62,715 |
NET INCREASE IN CASH | 37,280,874 | 4,553,637 |
Cash and cash equivalent at beginning of year | 9,883,091 | 5,329,454 |
Cash and cash equivalent at end of year | 47,163,965 | 9,883,091 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 1,535,840 | 1,049,197 |
Cash paid for interest expense | $ 606,322 | $ 404,516 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1. ORGANIZATION AND PRINCIPAL ACTIVITIES The accompanying consolidated financial statements include the financial statements of Wins Finance Holdings Inc. (“Wins Finance”) and its subsidiaries, Wins Holdings LLC(“WHL”),Wins Finance Group Limited (“WFG”), Full Shine Capital Resources Limited (“Full Shine”), Jinshang International Financial Leasing Co., Ltd. (“Jinshang Leasing”), Tianjin Jinshang Jiaming Financial Leasing Co. Ltd. (“Tianjin Jiaming”), Shanxi Jinchen Agriculture Co., Ltd. (“Jinchen Agriculture) and Shanxi Dongsheng Finance Guarantee Co., Ltd. (“Dongsheng Guarantee”). Wins Finance and its subsidiaries are collectively referred to as the "Company". WFG was incorporated under the laws of British Virgin Islands on July 27, 2014 and was initially owned 100% by Mr. Wang Hong. On October 23, 2014, WFG acquired a wholly-owned subsidiary, Full Shine, which is a shell Company incorporated in the laws of the Hong Kong Special Administrative Region (the “HKSAR” or “Hong Kong”), for $1. On December 2, 2014, WFG, through Full Shine, acquired 100% of the equity capital of Jinshang Leasing, a PRC Company, by means of a share exchange (the “Jinshang Leasing Share Exchange”) pursuant to which WFG issued 30,000,000 ordinary shares to a personal holding Company owned by Mr. Wang Hong in exchange for Mr. Wang Hong’s transferring 100% of the equity capital of Jinshang Leasing to Full Shine. The share exchange among WFG, Full Shine and Mr. Wang Hong is considered in substance to be a capital transaction, rather than a business combination transaction, because prior to the share exchange WFG and Full Shine did not have any operations, had an immaterial amount of assets, and were controlled by the same owner as Jinshang Leasing. WFG’s financial statements as of and for the year ended June 30, 2015 consolidate WFG, Full Shine, Jinshang Leasing, and Jinshang Leasing’s direct and indirect wholly-owned PRC subsidiaries Jinchen Agriculture, Dongsheng Guarantee and Tianjin Jiaming. Following the completion of the capital transaction, WFG conducted business operations primarily through Jinshang Leasing and Dongsheng Guarantee. Jinshang Leasing was incorporated on May 18, 2009 in Beijing, the People’s Republic of China (the “PRC”) under the laws of PRC and engages primarily in providing financing lease services to small and medium-sized companies and related financing consulting services in the PRC. Tianjin Jiaming was incorporated on April 23, 2014 as a wholly-owned subsidiary of Jinshang Leasing. Tianjin Jiaming did not conduct any business activities from its inception through September 30, 2015. Jinchen Agriculture was incorporated on February 29, 2012 in Jinzhong City. Shangxi Province, PRC under the laws of PRC. Jinchen Agriculture did not conduct any business activities from its inception through September 30, 2015. Dongsheng Guarantee was incorporated on February 22, 2006 in Jinzhong City, Shangxi Province, PRC under the laws of PRC and is mainly engaged in providing credit guarantees to small and medium-sized companies and related consulting finance services in the PRC. On October 26, 2015, Wins Finance consummated the transactions contemplated by the Agreement and Plan of Reorganization (the “Merger Agreement”), dated as of April 24, 2015 and amended on May 5, 2015, by and among Wins Finance, Sino Mercury Acquisition Corp. (“Sino”), WFG and the shareholders of WFG (the “WFG Shareholders”). Upon the closing of the transactions contemplated by the Merger Agreement (the “Closing”), (i) Sino merged with and into Wins Finance with Wins Finance surviving the merger (the “Merger”) and (ii) the WFG Shareholders exchanged 100% of the ordinary shares of WFG for cash and ordinary shares of Wins Finance (the “Share Exchange” together with the Merger, the “Transactions”). WFG is an integrated financing solution provider with operations located primarily in Jinzhong City, Shanxi Province and Beijing, China. WFG’s goal is to assist Chinese small & medium enterprises, including microenterprises, which have limited access to financing, in improving their overall fund-raising capability and enable them to obtain funding for business development. As a result of the Transactions, the former members of WFG own approximately 78.0% of the stock of Wins Finance and the former stockholders of Sino own the remaining 22.0%. The Transactions are accounted for as a “reverse merger” and recapitalization at the date of the consummation of the Transactions since the former members of WFG owned a majority of common stock of the Company and WFG’s operations will be the operations of Sino following the Transactions. Accordingly, WFG is deemed to be the accounting acquirer in the Transactions and, consequently, the Transactions are treated as a recapitalization of WFG. As a result, the assets and liabilities and the historical operations that will be reflected in the Sino’s financial statements after consummation of the Transactions will be those of WFG and will be recorded at the historical cost basis of WFG. Sino’s assets, liabilities and results of operations will be consolidated with the assets, liabilities and results of operations of WFG upon consummation of the Transactions. As such, WFG is the continuing entity for financial reporting purpose. SEC Manual requires that in a reverse acquisition of historical shareholder’s equity of the accounting acquirer prior to the merger is retroactively reclassified (a recapitalization) for the equivalent number of shares received in the merger after giving effect to any difference in par value of the registrant’s and the accounting acquirer’s stock by an offset in paid-in-capital. Therefore, the financial statements have been prepared as if WFG had always been the reporting company and then on the share exchange date, had changed its name and reorganized its capital stock. WHL was incorporated on November 10, 2015 in New York and was disposed on June 30, 2016. WHL did not conduct any business activities from its inception. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation and principle of consolidation The consolidated financial statements of and its subsidiaries are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the financial statements of Wins Finance, its subsidiaries, including the wholly-foreign owned enterprises ("WFOEs") in the PRC. A subsidiary is an entity in which Wins Finance (i) directly or indirectly controls more than 50% of the voting power; or (ii) has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. All significant inter-Company transactions and balances have been eliminated upon consolidation. (b) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using information then currently available. Changes in facts and circumstances may cause Wins Finance to revise its estimates. Material estimates that are particularly susceptible to significant change in the near-term include the determination of the allowances for doubtful accounts receivable and for guarantee losses. Significant accounting estimates reflected in the financial statements include: (i) the allowance for doubtful receivables; (ii) estimates of losses on unexpired contracts and financial guarantee service contracts; (iii) accrual of estimated liabilities; (iv) useful lives of long-lived assets; (v) impairment of long-lived assets; (vi) valuation allowance for deferred tax assets; and (vii) contingencies. (c) Operating segments ASC 280, Segment Reporting, requires companies to report financial and descriptive information about their reportable operating segments, including segment profit or loss, certain specific revenue and expense items, and segment assets. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. The Company’s chief operating decision-maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for both the financing lease business and the guarantee business. The Company’s net revenues are all generated from customers in the PRC. Hence, The Company operates and manages its business within one reportable segment, which is to provide financial services in the PRC domestic market. For the year ended June 30, 2016, there was no customer that accounted for more than 10% of the Company’s revenue. For the year ended June 30, 2015, there were three customers that accounted for more than 10% of the Companies’ revenue. As of June 30, 2016, Dongsheng Guarantee 11.4% of such aggregate balances. (d) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash in banks and all highly liquid investments with original maturities of three months or less that are unrestricted as to withdrawal and use. (e) Restricted Cash Restricted cash represents cash pledged to banks by Wins Finance’s subsidiary Dongsheng Guarantee, as guarantor for guarantee business customers. The banks providing loans to the Company’s guarantee service customers generally require Dongsheng Guarantee, as the guarantor of the loans, to pledge a cash deposit of 10% to 20% of the guaranteed amount to an escrow account that is restricted from use. The deposit is released after the guaranteed bank loan is paid off and Dongsheng Guarantee’s guarantee obligations expire, which is usually within 12 months from the time the loan and guarantee are initiated. (f) Short-term investments Investments in non-marketable asset management products issued by banks and financial institutions (the issuers) with original maturities of one year to five years that could be redeemed or are transferrable at any time are classified as short-term investments under the cost method. The Company’s asset management products are managed by banks and financial institutions and invested in fixed-income financial products that are permitted by the China Securities Regulatory Commission (“SRC”), such as government bonds, corporate bonds and central bank notes. The investment portfolios of these products are not disclosed to the Company by the banks or financial institutions. If the banks and financial institutions are required to redeem these investments, they will redeem them at a price equal to the outstanding principal plus accrued and unpaid interest. The Company carries these cost method investments at cost and only adjusts for other-than-temporary impairments and distributions of earnings. Management regularly evaluates the impairment of theses cost method investments at the individual security level. If the fair value of an investment is less than its amortized cost basis at the balance sheet date of the report period for which impairment is being assessed, management will determine whether the decline in fair value is temporary or permanent. If the decline in fair value is other than temporary, the cost basis of the individual security is written down to fair value as the new cost basis, and the amount of the write-down is included in current earnings. There is no impairment noted for either of the reporting periods presented herein. Interest income from short-term investments is recognized when the Company’s right to receive payment is established. Accrued but unpaid interest income is recorded as interest receivable in the accompanying unaudited consolidated balance sheets. (g) Financial guarantee service contracts The Company’s financial guarantee service contracts protect lenders by providing Dongsheng Guarantee’s agreement to pay an obligor’s obligations to a holder of the debt if the obligor fails to pay the obligations when they become due. The contract amounts reflect the extent of involvement the Company has in the guarantee transaction and also represents Dongsheng Guarantee’s maximum exposure to credit loss. Under PRC regulations, the maximum amount Dongsheng Guarantee may provide to its financial guarantee customers is 10 times its net assets. As of June 30, 2016, the net assets of Dongsheng Guarantee were $195 million. Dongsheng Guarantee is a party to off-balance-sheet financial instruments in the normal course of business to meet the financing needs of its customers. Financial instruments whose contract amounts represent credit risk are as follows: June 30, 2016 June 30, 2015 Guarantee $ 86,289,058 $ 126,186,812 (h) Guarantee paid on behalf of guarantee service customers As guarantor of guarantee service customers’ loans from banks and financial institutions, Dongsheng Guarantee is obligated to repay to the banks or financial institutions for the unpaid principal and accrued interest of the loans when customers default on their loans. Repayments on behalf of guarantee service customers are recorded as guarantees paid on behalf of guarantee service customers in the Company’s consolidated balance sheets. As of June 30, 2016 and June 30, 2015, uncollected guarantees paid on behalf of guarantee service customers from guarantee service customers on whose behalf Dongsheng Guarantee had repaid the loans were $2,039,684 and $633,313, respectively. (i) Provision for guarantee losses A provision for possible losses to be absorbed by Dongsheng Guarantee for financial guarantees it provides is recorded as an accrued liability when the guarantees are made and recorded as “Allowance on financial guarantee services” in the consolidated balance sheets. This accrued liability represents probable losses and is increased or decreased by accruing a “Provision/(reversal of provision) on financial guarantee services” against commission and fee income from guarantee services throughout the terms of the guarantees as necessary when additional relevant information becomes available. The methodology used to estimate the liability for possible guarantee losses considers the guarantee contract amounts and a variety of factors, which include, depending on the counterparty, the latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collateral or guarantees the costumers or third parties offered, and other economic conditions, such as economic trends in the area and the country. The estimates are based upon information available at the time the estimates are made. It is possible that prior experience and default history of the borrowers are not indicative of future losses on guarantees made. Any increase or decrease in the provision would affect the Company’s consolidated income statements in future years. Dongsheng Guarantee provides “Specific Allowance” for the financial guarantee services if any specific collectability risk is identified, and a “General Allowance”, based on total guarantee contract amount of those transactions with no specific risk identified, to be used to cover unidentified probable loss. Dongsheng Guarantee performs periodic and systematic detailed reviews to identify credit risks and to assess the overall collectability, and may adjust its estimates on allowance when new circumstances arise. Dongsheng Guarantee made reversals of its guarantee in the amount of $355,313 and $576,456 the years ended June 30, 2016 and 2015, respectively. made $3,263,312 and nil for the years ended June 30, 2016 and 2015 respectively. $932,375 and nil were written-off during the (j) Net investment in direct financing leases Lease contracts that Jinshang Leasing enters with financing lease customers transfer substantially all the rewards and risks of ownership of the leased assets, other than legal title, to the customers. These financing lease contracts are accounted for as direct financing leases in accordance with ASC 840-10-25 and ASC 840-40-25. At the inception of a transaction, the cost of the leased property is capitalized at the present value of the minimum lease payment receivables and the unguaranteed residual value of the property at the end of the lease. The difference between the sum of (i) the minimum lease payment receivables and the unguaranteed residual value and (ii) the cost of the leased property is recognized as unearned income. Unearned income is recognized over the period of the lease using the effective interest rate method. Net investment in direct financing leases is recorded at net realizable value consisting of minimum lease payments to be received less allowance for uncollectible, as needed, and less the unearned income. The allowance for lease payment receivable losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on Jinshang Leasing’s loss history, known and inherent risks in the transactions, adverse situations that may affect the lessee’s ability to repay, the estimated value of any underlying asset, current economic conditions and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. Jinshang Leasing provides “Specific Allowance” for the lease payment receivable of lease transactions if any specific collectability risk is identified, and a “General Allowance”, based on total minimum lease payment receivable balance of those transactions with no specific risk identified, to be used to cover unidentified probable loss. Jinshang Leasing performs periodic and systematic detailed reviews to identify credit risks and to assess the overall collectability, and may adjust its estimates on allowance when new circumstances arise. The General Allowance Jinshang Leasing provided as of June 30, 2016 and 2015 were $858,362 and $302,401, respectively; and Specific Allowance were both nil. Jinshang Leasing made $597,444 and $70,467 provision for General Allowance during the year ended June 30, 2016 and 2015, respectively. Nil and $1,011,999 were written off against Specific Allowance during the year ended June 30, 2016 and 2015, respectively. (k) Revenue recognition Revenue is recognized when there are probable economic benefits to the Company and when the revenue can be measured reliably, on the following: Commission income and evaluation income on guarantee service Commission income on guarantee services is recognized when guarantee contracts have been made whereby the related guarantee obligations have been accepted, the economic benefits associated with the guarantee contracts will probably be realized, and the amount of revenue associated with the guarantee contracts can be measured reliably. Commission income is determined based on the total fees provided for in the guarantee contracts, is recorded in full at inception as unearned income and is recognized as commission income in the income statement over the period of the guarantee using the straight-line method. The agreed commission is generally 2% to 6% of the guaranteed amount for 12 months, which represents the estimated fair value of the non-contingent guarantee liability at the inception of the guarantee. Dongsheng Guarantee charges its financial guarantee customers a one-time fee for evaluations. Dongsheng Guarantee performs as to the likelihood that customers are qualified to apply for loans from banks and other financial institutions. Evaluation income is recognized upon the completion of the evaluation. Direct financing lease interest income Direct financing lease interest income is recognized on an accrual basis using the effective interest method over the term of the lease by applying the rate that discounts the estimated future minimum lease payment receivables through the period of the lease to the amount of the net investment in the direct financing lease at inception. The accrual of financing lease interest income is discontinued when a customer becomes 90 days or more past due on its lease or interest payments to Jinshang Leasing, unless WFG believes the interest is otherwise recoverable. Leases may be placed on non-accrual earlier if WFG has significant doubt about the ability of the customer to meet its lease obligations, as evidenced by consistent delinquency, deterioration in the customer’s financial condition or other relevant factors. Payments received while the lease is on non-accrual are applied to reduce the amount of the recorded value. WFG resumes accruing the interest income when WFG determines that the interest has again become recoverable, as, for example, if the customer resumes payment of the previous interest, and shows material improvement in its operating performance, financial position, and similar indicators. Financial advisory and agency income Jinshang Leasing and Dongsheng Guarantee provide financing solutions to customers and receive advisory fees as compensation. The advisory fees are recognized as income during the service period as the related service obligations are completed. As a licensed finance lease Company, Jinshang Leasing acts as agent in finance lease transactions between other finance lessors and lessees, or between banks and lessees. Jinshang Leasing neither receives the benefit of receiving the lease payments nor assumes the repayment obligations in these transactions. The lease agency income and advisory fees received in these transactions are recognized as income on a net basis during the service period as the related service obligations are completed. Jinshang Leasing acts as a financing agency between other financial leasing companies that need capital and financial institutions that are willing to provide capital. Other financial leasing companies factor to Jinshang Leasing their right to collect capital lease receivables in order to obtain capital from Jinshang Leasing, and Jinshang Leasing factors to other financial institutions its right to collect debts from these financial lease companies in order to finance a portion of the capital that Jinshang Leasing provides to other financial lease companies. All of these factoring transactions are structured with recourse rights to the assignor of the receivables. Financial agency income that Jinshang Leasing earns from factoring transactions is accrued monthly as net interest income and payments that Jinshang Leasing makes on factoring loans from financial institutions are accrued monthly as interest cost, in each case in accordance with the terms of the factoring loan contracts. (l) Property and equipment Plant and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, with 3% to 5% salvage value. The average estimated useful lives of property and equipment are discussed in Note 7. The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the corresponding accounts and includes any gain or loss in the statements of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and improvements of equipment are capitalized. (m) Impairment of long-lived assets The Company applies the provisions of ASC No. 360 Sub topic 10, “Impairment or Disposal of Long-Lived Assets” (ASC 360-10) issued by the Financial Accounting Standards Board (“FASB”). ASC 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property and equipment and finite-lived intangible assets, for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount of the assets is greater than their fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows at the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses on long-lived assets in the years ended June 30, 2016 and 2015. (n) Fair value measurements ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information for financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all non-financial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of June 30, 2016 and June 30, 2015, financial instruments of the Company primarily consisted of cash, restricted cash, accounts receivables, other receivables, and bank loans, loans receivable and loans payable which were carried at cost on the consolidated balance sheets, and carrying amounts approximated their fair values because of their generally short maturities. (o) Foreign currency translation The Company’s functional currency is the United States Dollar (“USD”). The functional currency of Jinshang Leasing Jinchen Agriculture and Dongsheng Guarantee is the Chinese Yuan, or Renminbi (“RMB”). For financial reporting purposes, the financial statements of Jinshang Leasing and Dongsheng Guarantee are prepared using RMB and translated into the Company’s functional USD currency at the exchange rates quoted by www.oanda.com. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders' equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity. June 30, 2016 June 30, 2015 Balance sheet items, except for equity accounts 6.6312 6.1088 For the years ended June 30, 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.4352 6.1375 (p) Interest expense Interest expense derived from the loans providing funds for financial leasing contracts is classified as where in the statements of income. (q) Non-interest expenses Non-interest expenses primarily consist of salary and benefits for employees, travel cost, entertainment expense, depreciation of equipment, office rental expense, professional service fees, office supplies, and similar items. (r) Income taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” ASC 740 requires a Company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment of the changes. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the Corporate Income Tax Law of the PRC and related regulations (collectively, (the “CIT Law”), small business credit guarantee institutions are allowed to deduct from taxable income an allowance for guarantee losses as follows: (i) Guarantee Compensation Reserve - up to 1% of the balance of liabilities guaranteed by the Company as of the end of each year; the Guarantee Compensation Reserve of the end of the previous year is required to be added to the current year’s taxable income. (ii) Unexpired Liability Reserve - up to 50% of the current year’s guarantee income; the Unexpired Liability Reserve as of the end previous year is required to be added to the current year’s taxable income (iii) Actual guarantee compensation losses incurred by small business credit guarantee institutions are required to be first applied as a write-off of the Guarantee Compensation Reserve, and any amount in excess of the Guarantee Compensation Reserve deductible from the current year’s taxable income. (s) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of operations and comprehensive income. Accumulated other comprehensive income, as presented on the balance sheets, represents cumulative foreign currency translation adjustments. (t) Operating leases The Company leases its principal offices under lease agreements that qualify as operating leases. The Company records the rental under the lease agreements in operating expenses when due. (u) Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among other things, government investigations and tax matters. In accordance with ASC No. 450 Sub topic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. (v) Recently issued accounting pronouncements There were various accounting standards and updates recently issued, none of which are expected to have a material impact on the Company's financial position, operations, or cash flows. |
RISKS
RISKS | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
RISKS | NOTE 3. RISKS (a) Credit risk Credit risk is one of the most significant risks for the Company’s business. Credit risk exposure arises principally in financial guarantees that are off-balance sheet financial instruments. Credit risk is controlled by the application of credit approvals, limits on the amounts guaranteed and monitoring procedures. The Company manages credit risk through its risk control system based upon a “business circle” of core Small and Medium Enterprises (“SMEs”), which commences with the establishment of overall risk management strategies, pre-transaction due diligence and assessment, in-transaction risk evaluation, product design, determination of risk-adjusted pricing, design of counter-guarantee requirements and ongoing post-transaction monitoring. To minimize credit risk, the Company requires collateral in the form of rights to cash, securities or property and equipment. The Company (b) Liquidity risk The Company (c) Foreign currency risk A majority of the Company’s operating activities and a significant portion of the Company’s assets and liabilities are denominated in the RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (the “PBOC”) or other authorized financial institutions at exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. (d) Concentration risk As of June 30, 2016 and 2015, the Company held cash and restricted cash of $75,126,811 and $38,377,308, respectively, that was not insured by any governmental authority. To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits only with large financial institutions in the PRC with acceptable credit ratings. The Company’s operations are carried out in the PRC through its direct and indirect WFOEs. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. The Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Jun. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 4. RESTRICTED CASH Restricted cash represents cash pledged to banks as guarantor deposits by Dongsheng Guarantee to its guarantee service customers, in the amounts to $23.4 and $28.1 million, respectively, as of June 30, 2016 and 2015, respectively; and cash deposited with banks for Jinshang LeasingÂ’s bank loans for the capital lease business, in the amount of to $4.5 and $0.4 million as of June 30, 2016 and 2015, respectively. The banks providing loans to Dongsheng GuaranteeÂ’s guarantee service customers generally require Dongsheng Guarantee as the guarantor of the loans, to pledge a cash deposit usually in the range of 10% to 20% of the guaranteed amount. The deposits are released after the guaranteed bank loans are paid off and Dongsheng GuaranteeÂ’s guarantee obligation expires which is usually within 12 months. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Jun. 30, 2016 | |
Short-term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | NOTE 5. SHORT-TERM INVESTMENTS Short-term investments as of June 30, 2016 and 2015 represented transactional mutual debt fund products that Dongsheng Guarantee, Jinshang Leasing and Tianjin Jiaming purchased from other financial institutions. The term for the investments is one year, three or five years, and Dongsheng Guarantee, Jinshang Leasing and Tianjin Jiaming were entitled to redeem or transfer the investments at any time during the term. Interest from the investments varies from 5% to 15% annually, with deduction of a management fee, and was receivable quarterly, annually or upon maturity. The balances at June 30, 2016 and 2015, by contractual maturity, were due in one year, three or five years. Actual maturities may differ from contractual maturities because of the CompanyÂ’s WFOEsÂ’ rights to redeem. Contractual maturity of the balances at June 30, 2016 and 2015 were as follow: June 30, 2016 June 30, 2015 Maturing within one year $ 23,167,933 $ 46,654,007 Maturing within three years 13,572,204 14,732,844 Maturing within five years 113,101,701 122,773,704 Total $ 149,841,838 $ 184,160,555 Interest income from short-term investments was $13,958,540 and $16,657,246 for the years ended June 30, 2016 and 2015, respectively. Earned but uncollected interests were $1,021,306 and $247,912 as of June 30, 2016 and 2015, respectively. |
NET INVESTMENT IN DIRECT FINANC
NET INVESTMENT IN DIRECT FINANCING LEASES | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
NET INVESTMENT IN DIRECT FINANCING LEASES | NOTE 6. NET INVESTMENT IN DIRECT FINANCING LEASES Jinshang Leasing’s leasing operations consist principally of leasing high value equipment under direct financing leases expiring in 1-5 years as of the balance sheets dates. The leases bear effective interest rate of 5% - 10%per annum. Future minimum lease receipts under non-cancellable direct financing lease arrangements are as follows: June 30, 2016 Within 1 year $ 30,392,835 2 years 29,717,258 3 years 20,862,739 4 years 2,592,227 5 years 2,271,173 Total minimum lease receipts 85,836,232 Less: amount representing interest (10,272,223 ) Present value of minimum lease receivable $ 75,564,009 Following is a summary of the components of the Jinshang Leasing’s net investment in direct financing leases at June 30, 2016 and 2015: June 30, 2016 June 30, 2015 Total minimum lease payments to be received $ 85,836,232 $ 30,240,137 Less: Amounts representing estimated executory costs - - Minimum lease payments receivable 85,836,232 30,240,137 Less: Allowance for uncollectible receivables (858,362 ) (302,401 ) Net minimum lease payment receivable 84,977,870 29,937,736 Estimated residual value of leased property - - Less: unearned income (10,272,223 ) (4,108,681 ) Net investment in direct financing leases $ 74,705,647 $ 25,829,055 As of June 30, 2016 and 2015, there were no recorded investment in direct finance leases on nonaccrual status, and no recorded investment in direct finance leases past due 90 days or more and still accruing. The allowance for uncollectible and minimum lease payments receivables in direct financing leases for the years ended June 30, 2016 and 2015 were as following: For the years ended June 30, 2016 June 30, 2015 Allowance for uncollectible at the beginning of period $ 302,401 $ 1,238,685 Provision for lease payment receivable 597,444 70,467 Direct write-downs charged against the allowance - (1,011,999 ) Allowance to charge off direct financing lease interest income - - Recoveries of amounts previously charged off - - Effect of foreign currency translation (41,483 ) 5,248 Allowance for uncollectible at the end of year $ 858,362 $ 302,401 Individually evaluated for impairment $ - $ - Collectively evaluated for impairment 858,362 302,401 Allowance for uncollectible at the end of year $ 858,362 $ 302,401 Minimum lease payments receivable collectively evaluated for impairment $ 85,836,232 $ 30,240,137 Individually evaluated for impairment - - Ending balance $ 85,836,232 $ 30,240,137 As of June 30, 2016 and 2015, there was no impaired minimum lease payments receivable that caused the Company to evaluate individually for impairment. The allowance for credit losses provides coverage for probable and estimable losses in the Company’s investment in direct financing leases. The allowance recorded is based on a quarterly review. The determination of the appropriate amount of any provision is highly dependent on management’s judgment at that time and takes into consideration all known relevant internal and external factors, including levels of nonperforming leases, customers’ financial condition, leased property values and collateral values as well as general economic conditions. When a direct financing lease receivable is determined uncollectible, for example, the customer declares bankruptcy, or the Company reaches agreement of debt restructuring with the customer, the direct financing lease would be written off from the investment in direct finance leases. As of June 30, 2016 and 2015, no direct financing lease receivables were past due over 90 days. Credit Quality of Investment in Direct Financing Lease: The Company performs a quarterly review on the credit quality of its investments in direct financial leases, by evaluating a variety of factors, including dependence on the counterparties, latest financial position and performance of the customers, actual defaults, estimated future defaults, historical loss experience, leased property values or collateral values, and other economic conditions such as economic trends in the area or country. In cases where heightened risk is detected as a result of factors indicating that a customer is having difficulty repaying the underlying financing, such as a default in making interest payments, material changes to the customer’s business, and deterioration of financial condition and cash flow support, the Company classifies the contracts as “abnormal contracts,” contracts without such heightened risk indicators are classified as “normal contracts”. For those contracts, the Company’s WFOE generally initiates negotiations with the customer about possible improvement or remediation measures, such as an improvement plan for cash flow management, third-party support, extension plans and similar measure, and implement close supervision of the remediation measures adopted. The risk classification of direct financing lease receivables is as follows: June 30, 2016 June 30, 2015 Normal $ 85,836,232 $ 30,240,137 Abnormal - - Total $ 85,836,232 $ 30,240,137 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 7. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: Useful life (years) Salvage Value June 30, 2016 June 30, 2015 Leasehold improvements 3-5 3 % $ 393,985 $ 34,817 Vehicles 4-5 3%-5 % 1,151,482 1,249,952 Office equipment 3-5 3 % 173,984 102,522 Electric equipment 3 3 % 24,528 64,442 Less: accumulated depreciation (889,260 ) (536,317 ) Property and equipment, net $ 854,719 $ 915,416 Depreciation expense totaled $411,635 and $257,464 for the years ended June 30, 2016 and 2015, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 8. OTHER ASSETS Other assets as of June 30, 2016 and 2015 consisted of: June 30, 2016 June 30, 2015 Advanced payment to third party companies $ 78,523 $ 391,075 Prepaid of insurance cost 175,000 - Receivable for disposal of fix assets 270,000 - Other receivables 85,228 36,311 $ 608,751 $ 427,386 Advance payment to the third party companies as of June 30, 2016 represented an amount Jinshang Leasing and Dongsheng Guarantee prepaid for expense related car and office rentals. Advanced payment to the third party companies as of June 30, 2015 represented an amount Jinshang Leasing and Dongsheng Guarantee prepaid for office decoration and software development. |
BANK LOAN FOR CAPITAL LEASE BUS
BANK LOAN FOR CAPITAL LEASE BUSINESS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
BANK LOAN FOR CAPITAL LEASE BUSINESS | NOTE 9. BANK LOAN FOR CAPITAL LEASE BUSIENSS Bank loan of $43,308,617 as of June 30, 2016 represented loans Jinshang Leasing obtained for Shuguang and Yancheng project from Huaxia Bank and CITIC Bank. The loan bears interest for Shuguang project at the fixed rate of 5.5% and the term of the loan is three years when it matures in 2019, pledged with time deposit certificates and guaranteed by SG Automotive Group. The loan bears interest for Yancheng project at the fixed of 5.8% as of June 30, 2016 and the term of the loan started from April 3, 2015 with maturity date on February 12, 2020. Bank loan of $511,825 as of June 30, 2015 represented a loan Jinshang Leasing obtained by a mortgage contract from CITIC Bank. The loan bears interest at the fixed rate of 5.8% as of June 30, 2015 and the term of the loan started from April 3, 2015 with maturity date on February12, 2020. Interest expense incurred on the loan for the years ended June 30, 2016 and 2015 were $524,409 and $188,173, respectively. |
UNEARNED INCOME FROM FINANCIAL
UNEARNED INCOME FROM FINANCIAL GUARANTEE SERVICES | 12 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
UNEARNED INCOME FROM FINANCIAL GUARANTEE SERVICES | NOTE 10. UNEARNED INCOME FROM FINANCIAL GUARANTEE SERVICES Dongsheng Guarantee receives guarantee commissions in full at the inception and records unearned income before amortizing it throughout the guarantee service life. Unearned income from guarantee services were $423,801 and $3,659,062 as of June 30, 2016 and 2015, respectively. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities [Abstract] | |
OTHER LIABILITIES | NOTE 11. OTHER LIABILITIES Other liabilities as of June 30, 2016 and 2015 consisted of: June 30, 2016 June 30, 2015 Deposit from direct financing lessees $ 9,134,946 $ 3,038,012 Payable to an equipment provider for initial investment in direct financing lease 407,679 467,465 Accrued payroll 42,898 41,741 Other tax payable 510,147 299,533 Other payables 3,385 220,592 $ 10,099,055 $ 4,067,343 Payable to an equipment provider for initial investment in direct financing lease as of June 30, 2016 and 2015 represented the portion of unpaid initial investment by the lessor to the equipment provider in the direct financing lease transaction for which Jinshang Leasing acted as lease agent. |
SHARE- BASED COMPENSATION
SHARE- BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE- BASED COMPENSATION | NOTE 12. SHARE- BASED COMPENSATION 2015 Long-Term Incentive Equity Plan On October 20, 2015, the Company adopted the 2015 Long-Term Incentive Equity Plan, or the “Plan”, under which the Group may grant options to purchase ordinary shares of the Company to its employees, officers, directors and consultants. The Plan shall be administered by the Board or a Committee. If administered by a Committee, such Committee shall be composed of at least two directors, all of whom are “outside directors” within the meaning of the regulations issued under Section 162(m) of the Code and “non-employee” directors within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as amended. Committee members shall serve for such term as the Board may in each case determine and shall be subject to removal at any time by the Board. The term of each Option shall be fixed by the Committee; provided, however, that an Incentive Option may be granted only within the ten-year period commencing from the Effective Date and may only be exercised within ten years of the date of grant (or five years in the case of an Incentive Option granted to an optionee who, at the time of grant, owns Ordinary Shares possessing more than 10% of the total combined voting power of all classes of voting shares of the Company (“10% Shareholder”). The exercise price per Ordinary Share purchasable under an Option shall be determined by the Committee at the time of grant and may not be less than 100% of the Fair Market Value on the date of grant (or, if greater, the par value of the Ordinary Shares); provided, however, that the exercise price of an Incentive Option granted to a 10% Shareholder will not be less than 110% of the Fair Market Value on the date of grant. The Plan was approved and unless terminated by the Board, it shall continue to remain effective until such time as no further awards may be granted and all awards granted under the Plan are no longer outstanding. Notwithstanding the foregoing, grants of Incentive Options may be made only during the ten-year period beginning on the Effective Date. The following table summarizes stock award activity and related information for all of Wins Finance’s Equity Plans for the year ended June 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term In Years $ Outstanding, July 1, 2015 - - - Granted 1,450,000 12 3 Exercised - - - Forfeited (180,000 ) - - Canceled - - - Outstanding, June 30, 2016 1,270,000 12 2.42 Exercisable, June 30, 2016 - 12 2.42 Vested and expected to vest, June 30, 2016 1,000,000 12 2.42 The aggregate intrinsic value of options vested and expected to vest as of June 30, 2016 was zero. Intrinsic value is calculated as the amount by which the current market value of a share of common stock exceeds the exercise price multiplied by the number of option shares. During the year ended June 30, 2016, the Company granted options to purchase 1,450,000 shares of common stock to eight employees at a weighted average exercise price of $12 per share. The options will vest and become exercisable in three (3) equal annual installments on each of the first, second and third dates of the Grant Date and the options will expire on the fifth anniversary of the Grant Date. The Company measures compensation cost related to share options based on the grant-date fair value of the award using the Binomial Model. The weighted-average assumptions used in the Binomial Model calculation for option grants during the year ended June 30, 2016 were as follows: Expected volatility 51.5 % Risk-free interest rates 1.77 % Expected terms 5.0 years Dividend yields 0 % Sub-Optimal behavior multiple 2.80 Fair Value per share of options granted $ 5.27~$5.44 The expected volatility assumption is based on historical weekly volatility of peer companies’ share price. The Company utilized peer Company data due to Wins Finance’s limited history of publicly traded shares. During the year ended June 30, 2016, the expected term assumption represents the remaining life of the option at the grant date. The risk-free interest rates used are based on the USD Treasury Activities (IYC25) Zero Coupon Yield. The estimated fair value of share-based compensation to employees is recognized as a charge against income on a ratable basis over the requisite service period, which is generally the vesting period of the award. As of June 30, 2016, the gross amount of unrecognized share-based compensation expense relating to unvested share-based awards held by employees was approximately $3,410,935 which the Company anticipates recognizing as a charge against income over a weighted average period of 2.42 years. In connection with the grant of stock options to employees, the Company recorded share-based compensation charges of $1,889,733 and $nil, respectively, for the years ended June 30, 2016 and 2015. |
CAPITALIZATION
CAPITALIZATION | 12 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
CAPITALIZATION | NOTE 13. CAPITALIZATION Common Stock As of October 26, 2015, Wins Finance is authorized to issue up to 100,000,000 ordinary shares with a par value of $0.0001, there were 21,526,747 shares of Common Stock issued and outstanding. There were issued 16,800,000 and 4,726,747 ordinary shares to WFG's shareholders and former stockholders of Sino. On June 28, 2016, the Company repurchased 5,100 of its ordinary shares from Bradley Reifler, a former director of the Company, for $60,180, and 1,480,000 shares from Bluesky LLC for $17,464,000. Of the amounts payable to Bluesky, $17 million was paid and the Company expects to pay the remaining $464,000 no later than June 30, 2017. Bluesky LLC is a limited liability Company owned and controlled by Bluesky Family Trust, a family trust benefitting the family of Jianming Hao, the CompanyÂ’s Co-Chief Executive Officer. As of June 30, 2016, there were 20,041,647 shares of Common Stock issued and outstanding. |
STATUTORY RESERVE
STATUTORY RESERVE | 12 Months Ended |
Jun. 30, 2016 | |
Statutory Reserve [Abstract] | |
STATUTORY RESERVE | NOTE 14. STATUTORY RESERVE In accordance with the PRC regulations on enterprises and the articles of association of the Company, enterprises established in the PRC are required to provide statutory reserve before any dividend distribution, which is appropriated from net profit as reported in the enterpriseÂ’s PRC statutory accounts for the calendar year. Before making any dividend distribution, an enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterpriseÂ’s PRC statutory accounts. The statutory reserve can only be used for specific purposes and is not distributable as cash dividends. Jinshang Leasing and Dongsheng Guarantee did not provide any statutory reserve for the years ended June 30, 2016 and 2015 since neither has an intent to distribute dividends. |
EMPLOYEE RETIREMENT BENEFIT
EMPLOYEE RETIREMENT BENEFIT | 12 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE RETIREMENT BENEFIT | NOTE 15. EMPLOYEE RETIREMENT BENEFIT The Company has made employee benefit contributions in accordance with Chinese relevant regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and birth insurance. The Company recorded the contribution in the salary and employee charges when incurred. The contributions made by the Company were $107,970 and $52,374 for the years ended June 30, 2016 and 2015, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the years ended June 30, 2016 and 2015, respectively: For the years ended June 30, 2016 June 30, 2015 Net income attributable to the common shareholders $ 12,117,397 $ 26,072,653 Basic weighted-average common shares outstanding 20,012,356 16,800,000 Effect of dilutive securities - - Diluted weighted-average common shares outstanding 20,012,356 16,800,000 Earnings per share – Basic and diluted 0.61 1.55 Basic earnings per share are computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share were the same as basic earnings per share due to the lack of dilutive items in the Company year ended June 30, 2016 and 2015. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17. INCOME TAXES The CIT Law of the PRC stipulates that domestically-owned enterprises and foreign-invested enterprises (the “FIEs”) are subject to a uniform tax rate of 25%. While the CIT Law sets equalized the tax rates for domestically-owned enterprises and FIEs, preferential tax treatment may be given to companies in certain encouraged sectors and to entities classified as high-technology companies, regardless of whether they were domestically-owned enterprises or FIEs. Jinshang Leasing and Dongsheng Guarantee are both subject to income tax at a rate of 25% for the year ending June 30, 2016 and were subject to the same rate for the year end June 30, 2015. Under the CIT Law, investment income from security funds is exempted from enterprise income tax. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits of the position, and measures the unrecognized benefits associated with the tax position. For year ended June 30, 2016 and 2015, the Company The Company The Company’s WFOEs are subject to income taxes in China and are subject to routine corporate income tax audits. Management believes that the WFOEs’ tax return positions are fully supported, but tax authorities may challenge certain positions, which may not be fully sustained. Determining the income tax expense for these potential assessments and recording the related effects requires management judgments and estimates. The amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in the Company’s income tax expense and, therefore, could have a material impact on the Company’s provision for income tax, net income and cash flows. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty and the timing of the resolution and/or closure of audits is not certain. If any issues addressed in tax audits of the Company's WFOEs are resolved in a manner not consistent with management's expectations, the Company Income tax payable comprises: June 30, 2016 June 30, 2015 Dongsheng Guarantee $ 2,083,683 $ 1,621,710 Jinshang Leasing 427,164 1,446,042 Jinchen Agriculture - 5 $ 2,510,847 $ 3,067,757 Income tax payable represented enterprise income tax at a rate of 25% of taxable income the Company accrued but not paid as of June 30, 2016 and 2015.The effective tax rate for the years ended June 30, 2016 and 2015 were 6.2% and 10.7%, respectively. The reconciliation between the effective income tax rate and the PRC statutory income tax rate of 25% is as follows: For the years ended June 30, 2016 June 30, 2015 PRC statutory tax 25.0 % 25.0 % Effect of non-deductible expenses 0.0 % 0.0 % Effect of non-taxable income (28.5 )% (14.3 )% Others 9.7 % 0.0 % Effective tax rate 6.2 % 10.7 % Deferred tax arose from the difference in tax and accounting base of the deductible allowance for guarantee loss and lease payment receivable loss and difference in direct financing lease income recognition between PRC and U.S. GAAP. As of June 30, 2016 and 2015, the Company had net deferred tax assets of $428,524 and $414,479, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The management considered all available evidence, both positive and negative, in determining the realizability of deferred tax assets at June 30, 2016. Management considered carry back availability, the scheduled reversals of deferred tax liabilities, projected future taxable income during the reversal periods, and tax planning strategies in making this assessment. Management also considered recent history of taxable income, trends in the Company’s earnings and tax rate, positive financial ratios, and the impact of the downturn in the current economic environment (including the impact of credit on allowance and provision for guarantee and direct financing lease losses; and the impact on funding levels) on the Company. Based upon its assessment, management believes that a valuation allowance was not necessary as of June 30, 2016. June 30, 2016 June 30, 2015 Deferred income tax assets Provision for direct financing lease 208,215 75,600 Direct financing lease incomes 220,309 338,879 Total deferred income tax assets 428,524 414,479 Less: Valuation allowance - - Net total deferred income tax assets 428,524 414,479 Deferred income tax liabilities Direct financing lease losses - - Allowance for guarantee 477,398 969,094 Other difference - 154,648 Total Deferred income tax liabilities 477,398 1,123,742 As of June 30, 2016 and 2015, the Company intends to permanently reinvest the undistributed earnings of its operating subsidiaries to fund future operations. For the years ended June 30, 2016, we have not been selected for examination by the applicable tax authority and no resolution of tax audits were expected to be material to the financial statements. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | NOTE 18. RELATED PARTY TRANSACTIONS AND BALANCES Related party balances Related party balances as of June 30, 2016 consisted of: June 30, 2016 June 30, 2015 Due to related party Bluesky LLC $ 464,000 - $ 464,000 - Bluesky LLC is a limited liability Company owned and controlled by Bluesky Family Trust, a family trust benefitting the family of Jianming Hao, the Company’s Co-Chief Executive Officer. Related party transactions Related party transactions for the years ended June 30, 2016 and 2015 consisted of: For the years ended June 30, 2016 June 30, 2015 Amount lent to owners Dongsheng International Investment Group Co., Ltd $ - $ 13,148,677 Dongsheng international investment Ltd (HK) - 8,419,721 $ - $ 21,568,398 Amount repaid from owners Dongsheng International Investment Group Co., Ltd $ - $ 30,474,032 Dongsheng international investment Ltd (HK) - 10,628,558 Wang Hong - 6,517,312 $ - $ 47,619,902 Amount repaid to owners Wang Hong $ - $ 244,399 Tian Wenjun - 175,917 $ - $ 420,316 Amount borrowed from owners Wang Hong $ - $ 16,293 Tian Wenjun - 24,440 $ - $ 40,733 Share repurchase Bluesky LLC 17,464,000 - $ 17,464,000 $ - Convertible debt Bluesky LLC 8,500,000 - $ 8,500,000 $ - The loans from owners and to owners were all interest free and due on demand. Due from owners were fully repaid before December 31, 2014 and no balance as of June 30, 2015. On December 28, 2015, the Company issued an $8,500,000 promissory note (the “Note”) to Bluesky LLC, an entity controlled by Jianming Hao, the Company’s Chairman and Co-Chief Executive Officer. The notes bear interest at 4% per year and mature on December 28, 2016. The note was repaid in advance on April 28, 2016. The Notes are convertible into the Company’s ordinary shares at a price of $12.00 per share. Martel Capital, LLC is the placement agent for the offering and will receive a commission equal to 1% of the gross proceeds of the offering. On June 30, 2016, the Company repurchased1, 480,000 ordinary shares from Bluesky LLC at a price of 11.8 per share. On June 28, 2016, the Company paid $17,000,000 to Bluesky LLC, $464,000 will be paid before June 30, 2017. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19. COMMITMENTS AND CONTINGENCIES Commitments Lease Commitments The Company leased their principal offices under lease agreements. The following table sets forth the CompanyÂ’s contractual obligations as of June 30, 2016 in future periods: For the year ending June 30, Rental payments 2017 $ 272,720 2018 182,271 $ 454,991 Guarantee Commitments Guarantees terminate upon payment or cancellation of the guaranteed obligation. Dongsheng GuaranteeÂ’s obligations to make payments under guarantees are triggered by the failure of the parties for which the guarantees are provided to fulfill their guaranteed obligations. The terms from inception to termination of the guarantees provided generally range from 6 to 12 months. Contingencies In the past, Dongsheng Guarantee failed to comply with PRC regulations that provide that the aggregate balance of liabilities guaranteed by a financing guarantee Company for any single guaranteed party may not exceed 10% of the net assets of the guarantee Company and also failed to make required social insurance and provident housing fund contributions for some of its employees. During the three months ended June 30, 2016, Dongsheng Guarantee did not provide guarantees for loans in excess of 10% of its net assets to any single customer and made all required social insurance and provident housing fund contributions, and as of June 30, 2016, Dongsheng Guarantee had not received any notice from any relevant government authorities regarding its prior non-compliance with these requirements. However, it is possible that relevant regulatory authorities will impose penalties and/or bring legal action against Dongsheng Guarantee retrospectively. Any such penalties or legal action could have an adverse effect on the CompanyÂ’s business, and management is unable to make any estimate of the amounts of any such possible penalties. Neither the Company nor any of its subsidiaries is currently a party to any legal proceeding, investigation or claim which, in the opinion of the management, is likely to have material adverse effect on the CompanyÂ’s business, financial condition or results of operations. As of June 30, 2016, there were no claims, lawsuits, investigations and proceedings, including unasserted claims that are probable to be assessed, that have in the recent past had, or to the CompanyÂ’s knowledge, are reasonably possible to have, a material effect on the CompanyÂ’s financial position, results of operations or cash flows. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20. SUBSEQUENT EVENTS The Company has evaluated the impact of events that have occurred subsequent to June 30, 2016, through the date of issuance of this consolidated financial statements. Based on this evaluation, other than as recorded or disclosed within these consolidated financial statements and related notes, the Company has determined none of these events were required to be recognized or disclosed. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation and principle of consolidation | (a) Basis of presentation and principle of consolidation The consolidated financial statements of and its subsidiaries are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the financial statements of Wins Finance, its subsidiaries, including the wholly-foreign owned enterprises ("WFOEs") in the PRC. A subsidiary is an entity in which Wins Finance (i) directly or indirectly controls more than 50% of the voting power; or (ii) has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. All significant inter-Company transactions and balances have been eliminated upon consolidation. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using information then currently available. Changes in facts and circumstances may cause Wins Finance to revise its estimates. Material estimates that are particularly susceptible to significant change in the near-term include the determination of the allowances for doubtful accounts receivable and for guarantee losses. Significant accounting estimates reflected in the financial statements include: (i) the allowance for doubtful receivables; (ii) estimates of losses on unexpired contracts and financial guarantee service contracts; (iii) accrual of estimated liabilities; (iv) useful lives of long-lived assets; (v) impairment of long-lived assets; (vi) valuation allowance for deferred tax assets; and (vii) contingencies. |
Operating segments | (c) Operating segments ASC 280, Segment Reporting, requires companies to report financial and descriptive information about their reportable operating segments, including segment profit or loss, certain specific revenue and expense items, and segment assets. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. The Company’s chief operating decision-maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for both the financing lease business and the guarantee business. The Company’s net revenues are all generated from customers in the PRC. Hence, The Company operates and manages its business within one reportable segment, which is to provide financial services in the PRC domestic market. For the year ended June 30, 2016, there was no customer that accounted for more than 10% of the Company’s revenue. For the year ended June 30, 2015, there were three customers that accounted for more than 10% of the Companies’ revenue. As of June 30, 2016, Dongsheng Guarantee 11.4% of such aggregate balances. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash in banks and all highly liquid investments with original maturities of three months or less that are unrestricted as to withdrawal and use. |
Restricted Cash | (e) Restricted Cash Restricted cash represents cash pledged to banks by Wins FinanceÂ’s subsidiary Dongsheng Guarantee, as guarantor for guarantee business customers. The banks providing loans to the CompanyÂ’s guarantee service customers generally require Dongsheng Guarantee, as the guarantor of the loans, to pledge a cash deposit of 10% to 20% of the guaranteed amount to an escrow account that is restricted from use. The deposit is released after the guaranteed bank loan is paid off and Dongsheng GuaranteeÂ’s guarantee obligations expire, which is usually within 12 months from the time the loan and guarantee are initiated. |
Short-term investments | (f) Short-term investments Investments in non-marketable asset management products issued by banks and financial institutions (the issuers) with original maturities of one year to five years that could be redeemed or are transferrable at any time are classified as short-term investments under the cost method. The Company’s asset management products are managed by banks and financial institutions and invested in fixed-income financial products that are permitted by the China Securities Regulatory Commission (“SRC”), such as government bonds, corporate bonds and central bank notes. The investment portfolios of these products are not disclosed to the Company by the banks or financial institutions. If the banks and financial institutions are required to redeem these investments, they will redeem them at a price equal to the outstanding principal plus accrued and unpaid interest. The Company carries these cost method investments at cost and only adjusts for other-than-temporary impairments and distributions of earnings. Management regularly evaluates the impairment of theses cost method investments at the individual security level. If the fair value of an investment is less than its amortized cost basis at the balance sheet date of the report period for which impairment is being assessed, management will determine whether the decline in fair value is temporary or permanent. If the decline in fair value is other than temporary, the cost basis of the individual security is written down to fair value as the new cost basis, and the amount of the write-down is included in current earnings. There is no impairment noted for either of the reporting periods presented herein. Interest income from short-term investments is recognized when the Company’s right to receive payment is established. Accrued but unpaid interest income is recorded as interest receivable in the accompanying unaudited consolidated balance sheets. |
Financial guarantee service contracts | (g) Financial guarantee service contracts The CompanyÂ’s financial guarantee service contracts protect lenders by providing Dongsheng GuaranteeÂ’s agreement to pay an obligorÂ’s obligations to a holder of the debt if the obligor fails to pay the obligations when they become due. The contract amounts reflect the extent of involvement the Company has in the guarantee transaction and also represents Dongsheng GuaranteeÂ’s maximum exposure to credit loss. Under PRC regulations, the maximum amount Dongsheng Guarantee may provide to its financial guarantee customers is 10 times its net assets. As of June 30, 2016, the net assets of Dongsheng Guarantee were $195 million. Dongsheng Guarantee is a party to off-balance-sheet financial instruments in the normal course of business to meet the financing needs of its customers. Financial instruments whose contract amounts represent credit risk are as follows: June 30, 2016 June 30, 2015 Guarantee $ 86,289,058 $ 126,186,812 |
Guarantee paid on behalf of guarantee service customers | (h) Guarantee paid on behalf of guarantee service customers As guarantor of guarantee service customersÂ’ loans from banks and financial institutions, Dongsheng Guarantee is obligated to repay to the banks or financial institutions for the unpaid principal and accrued interest of the loans when customers default on their loans. Repayments on behalf of guarantee service customers are recorded as guarantees paid on behalf of guarantee service customers in the CompanyÂ’s consolidated balance sheets. As of June 30, 2016 and June 30, 2015, uncollected guarantees paid on behalf of guarantee service customers from guarantee service customers on whose behalf Dongsheng Guarantee had repaid the loans were $2,039,684 and $633,313, respectively. |
Provision for Guarantee Losses | (i) Provision for guarantee losses A provision for possible losses to be absorbed by Dongsheng Guarantee for financial guarantees it provides is recorded as an accrued liability when the guarantees are made and recorded as “Allowance on financial guarantee services” in the consolidated balance sheets. This accrued liability represents probable losses and is increased or decreased by accruing a “Provision/(reversal of provision) on financial guarantee services” against commission and fee income from guarantee services throughout the terms of the guarantees as necessary when additional relevant information becomes available. The methodology used to estimate the liability for possible guarantee losses considers the guarantee contract amounts and a variety of factors, which include, depending on the counterparty, the latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collateral or guarantees the costumers or third parties offered, and other economic conditions, such as economic trends in the area and the country. The estimates are based upon information available at the time the estimates are made. It is possible that prior experience and default history of the borrowers are not indicative of future losses on guarantees made. Any increase or decrease in the provision would affect the Company’s consolidated income statements in future years. Dongsheng Guarantee provides “Specific Allowance” for the financial guarantee services if any specific collectability risk is identified, and a “General Allowance”, based on total guarantee contract amount of those transactions with no specific risk identified, to be used to cover unidentified probable loss. Dongsheng Guarantee performs periodic and systematic detailed reviews to identify credit risks and to assess the overall collectability, and may adjust its estimates on allowance when new circumstances arise. Dongsheng Guarantee made reversals of its guarantee in the amount of $355,313 and $576,456 the years ended June 30, 2016 and 2015, respectively. made $3,263,312 and nil for the years ended June 30, 2016 and 2015 respectively. $932,375 and nil were written-off during the |
Net investment in direct financing leases | (j) Net investment in direct financing leases Lease contracts that Jinshang Leasing enters with financing lease customers transfer substantially all the rewards and risks of ownership of the leased assets, other than legal title, to the customers. These financing lease contracts are accounted for as direct financing leases in accordance with ASC 840-10-25 and ASC 840-40-25. At the inception of a transaction, the cost of the leased property is capitalized at the present value of the minimum lease payment receivables and the unguaranteed residual value of the property at the end of the lease. The difference between the sum of (i) the minimum lease payment receivables and the unguaranteed residual value and (ii) the cost of the leased property is recognized as unearned income. Unearned income is recognized over the period of the lease using the effective interest rate method. Net investment in direct financing leases is recorded at net realizable value consisting of minimum lease payments to be received less allowance for uncollectible, as needed, and less the unearned income. The allowance for lease payment receivable losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on Jinshang Leasing’s loss history, known and inherent risks in the transactions, adverse situations that may affect the lessee’s ability to repay, the estimated value of any underlying asset, current economic conditions and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. While management uses the best information available upon which to base estimates, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used for the purposes of analysis. Jinshang Leasing provides “Specific Allowance” for the lease payment receivable of lease transactions if any specific collectability risk is identified, and a “General Allowance”, based on total minimum lease payment receivable balance of those transactions with no specific risk identified, to be used to cover unidentified probable loss. Jinshang Leasing performs periodic and systematic detailed reviews to identify credit risks and to assess the overall collectability, and may adjust its estimates on allowance when new circumstances arise. The General Allowance Jinshang Leasing provided as of June 30, 2016 and 2015 were $858,362 and $302,401, respectively; and Specific Allowance were both nil. Jinshang Leasing made $597,444 and $70,467 provision for General Allowance during the year ended June 30, 2016 and 2015, respectively. Nil and $1,011,999 were written off against Specific Allowance during the year ended June 30, 2016 and 2015, respectively. |
Revenue recognition | (k) Revenue recognition Revenue is recognized when there are probable economic benefits to the Company and when the revenue can be measured reliably, on the following: Commission income and evaluation income on guarantee service Commission income on guarantee services is recognized when guarantee contracts have been made whereby the related guarantee obligations have been accepted, the economic benefits associated with the guarantee contracts will probably be realized, and the amount of revenue associated with the guarantee contracts can be measured reliably. Commission income is determined based on the total fees provided for in the guarantee contracts, is recorded in full at inception as unearned income and is recognized as commission income in the income statement over the period of the guarantee using the straight-line method. The agreed commission is generally 2% to 6% of the guaranteed amount for 12 months, which represents the estimated fair value of the non-contingent guarantee liability at the inception of the guarantee. Dongsheng Guarantee charges its financial guarantee customers a one-time fee for evaluations. Dongsheng Guarantee performs as to the likelihood that customers are qualified to apply for loans from banks and other financial institutions. Evaluation income is recognized upon the completion of the evaluation. Direct financing lease interest income Direct financing lease interest income is recognized on an accrual basis using the effective interest method over the term of the lease by applying the rate that discounts the estimated future minimum lease payment receivables through the period of the lease to the amount of the net investment in the direct financing lease at inception. The accrual of financing lease interest income is discontinued when a customer becomes 90 days or more past due on its lease or interest payments to Jinshang Leasing, unless WFG believes the interest is otherwise recoverable. Leases may be placed on non-accrual earlier if WFG has significant doubt about the ability of the customer to meet its lease obligations, as evidenced by consistent delinquency, deterioration in the customerÂ’s financial condition or other relevant factors. Payments received while the lease is on non-accrual are applied to reduce the amount of the recorded value. WFG resumes accruing the interest income when WFG determines that the interest has again become recoverable, as, for example, if the customer resumes payment of the previous interest, and shows material improvement in its operating performance, financial position, and similar indicators. Financial advisory and agency income Jinshang Leasing and Dongsheng Guarantee provide financing solutions to customers and receive advisory fees as compensation. The advisory fees are recognized as income during the service period as the related service obligations are completed. As a licensed finance lease Company, Jinshang Leasing acts as agent in finance lease transactions between other finance lessors and lessees, or between banks and lessees. Jinshang Leasing neither receives the benefit of receiving the lease payments nor assumes the repayment obligations in these transactions. The lease agency income and advisory fees received in these transactions are recognized as income on a net basis during the service period as the related service obligations are completed. Jinshang Leasing acts as a financing agency between other financial leasing companies that need capital and financial institutions that are willing to provide capital. Other financial leasing companies factor to Jinshang Leasing their right to collect capital lease receivables in order to obtain capital from Jinshang Leasing, and Jinshang Leasing factors to other financial institutions its right to collect debts from these financial lease companies in order to finance a portion of the capital that Jinshang Leasing provides to other financial lease companies. All of these factoring transactions are structured with recourse rights to the assignor of the receivables. Financial agency income that Jinshang Leasing earns from factoring transactions is accrued monthly as net interest income and payments that Jinshang Leasing makes on factoring loans from financial institutions are accrued monthly as interest cost, in each case in accordance with the terms of the factoring loan contracts. |
Property and equipment | (l) Property and equipment Plant and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, with 3% to 5% salvage value. The average estimated useful lives of property and equipment are discussed in Note 7. The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the corresponding accounts and includes any gain or loss in the statements of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and improvements of equipment are capitalized. |
Impairment of long-lived assets | (m) Impairment of long-lived assets The Company applies the provisions of ASC No. 360 Sub topic 10, “Impairment or Disposal of Long-Lived Assets” (ASC 360-10) issued by the Financial Accounting Standards Board (“FASB”). ASC 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property and equipment and finite-lived intangible assets, for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount of the assets is greater than their fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows at the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses on long-lived assets in the years ended June 30, 2016 and 2015. |
Fair value measurements | (n) Fair value measurements ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information for financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all non-financial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of June 30, 2016 and June 30, 2015, financial instruments of the Company primarily consisted of cash, restricted cash, accounts receivables, other receivables, and bank loans, loans receivable and loans payable which were carried at cost on the consolidated balance sheets, and carrying amounts approximated their fair values because of their generally short maturities. |
Foreign currency translation | (o) Foreign currency translation The Company’s functional currency is the United States Dollar (“USD”). The functional currency of Jinshang Leasing Jinchen Agriculture and Dongsheng Guarantee is the Chinese Yuan, or Renminbi (“RMB”). For financial reporting purposes, the financial statements of Jinshang Leasing and Dongsheng Guarantee are prepared using RMB and translated into the Company’s functional USD currency at the exchange rates quoted by www.oanda.com. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders' equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity. June 30, 2016 June 30, 2015 Balance sheet items, except for equity accounts 6.6312 6.1088 For the years ended June 30, 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.4352 6.1375 |
Interest expense | (p) Interest expense Interest expense derived from the loans providing funds for financial leasing contracts is classified as where in the statements of income. |
Non-interest expenses | (q) Non-interest expenses Non-interest expenses primarily consist of salary and benefits for employees, travel cost, entertainment expense, depreciation of equipment, office rental expense, professional service fees, office supplies, and similar items. |
Income taxes | (r) Income taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes.” ASC 740 requires a Company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment of the changes. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the Corporate Income Tax Law of the PRC and related regulations (collectively, (the “CIT Law”), small business credit guarantee institutions are allowed to deduct from taxable income an allowance for guarantee losses as follows: (i) Guarantee Compensation Reserve - up to 1% of the balance of liabilities guaranteed by the Company as of the end of each year; the Guarantee Compensation Reserve of the end of the previous year is required to be added to the current year’s taxable income. (ii) Unexpired Liability Reserve - up to 50% of the current year’s guarantee income; the Unexpired Liability Reserve as of the end previous year is required to be added to the current year’s taxable income (iii) Actual guarantee compensation losses incurred by small business credit guarantee institutions are required to be first applied as a write-off of the Guarantee Compensation Reserve, and any amount in excess of the Guarantee Compensation Reserve deductible from the current year’s taxable income. |
Comprehensive income | (s) Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments. Comprehensive income is reported in the statements of operations and comprehensive income. Accumulated other comprehensive income, as presented on the balance sheets, represents cumulative foreign currency translation adjustments. |
Operating leases | (t) Operating leases The Company leases its principal offices under lease agreements that qualify as operating leases. The Company records the rental under the lease agreements in operating expenses when due. |
Commitments and contingencies | (u) Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among other things, government investigations and tax matters. In accordance with ASC No. 450 Sub topic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. |
Recently issued accounting pronouncements | (v) Recently issued accounting pronouncements There were various accounting standards and updates recently issued, none of which are expected to have a material impact on the Company's financial position, operations, or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Financial Instruments Whose Contract Amounts Represent Credit Risk | Financial instruments whose contract amounts represent credit risk are as follows: June 30, 2016 June 30, 2015 Guarantee $ 86,289,058 $ 126,186,812 |
Schedule of Adjustments Resulting from the Foreign Currency Translations | Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholdersÂ’ equity. June 30, 2016 June 30, 2015 Balance sheet items, except for equity accounts 6.6312 6.1088 For the years ended June 30, 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.4352 6.1375 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Short-term Investments [Abstract] | |
Schedule of Contractual Maturity of the Short-term Investments | Contractual maturity of the balances at June 30, 2016 and 2015 were as follow: June 30, 2016 June 30, 2015 Maturing within one year $ 23,167,933 $ 46,654,007 Maturing within three years 13,572,204 14,732,844 Maturing within five years 113,101,701 122,773,704 Total $ 149,841,838 $ 184,160,555 |
NET INVESTMENT IN DIRECT FINA30
NET INVESTMENT IN DIRECT FINANCING LEASES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Future Minimum Lease Receipts | Future minimum lease receipts under non-cancellable direct financing lease arrangements are as follows: June 30, 2016 Within 1 year $ 30,392,835 2 years 29,717,258 3 years 20,862,739 4 years 2,592,227 5 years 2,271,173 Total minimum lease receipts 85,836,232 Less: amount representing interest (10,272,223 ) Present value of minimum lease receivable $ 75,564,009 |
Summary of the Components of the Jinshang Leasing's Net Investment in Direct Financing Leases | Following is a summary of the components of the Jinshang LeasingÂ’s net investment in direct financing leases at June 30, 2016 and 2015: June 30, 2016 June 30, 2015 Total minimum lease payments to be received $ 85,836,232 $ 30,240,137 Less: Amounts representing estimated executory costs - - Minimum lease payments receivable 85,836,232 30,240,137 Less: Allowance for uncollectible receivables (858,362 ) (302,401 ) Net minimum lease payment receivable 84,977,870 29,937,736 Estimated residual value of leased property - - Less: unearned income (10,272,223 ) (4,108,681 ) Net investment in direct financing leases $ 74,705,647 $ 25,829,055 |
Schedule of Allowance for Uncollectible and Minimum Lease Payments Receivables | The allowance for uncollectible and minimum lease payments receivables in direct financing leases for the years ended June 30, 2016 and 2015 were as following: For the years ended June 30, 2016 June 30, 2015 Allowance for uncollectible at the beginning of period $ 302,401 $ 1,238,685 Provision for lease payment receivable 597,444 70,467 Direct write-downs charged against the allowance - (1,011,999 ) Allowance to charge off direct financing lease interest income - - Recoveries of amounts previously charged off - - Effect of foreign currency translation (41,483 ) 5,248 Allowance for uncollectible at the end of year $ 858,362 $ 302,401 Individually evaluated for impairment $ - $ - Collectively evaluated for impairment 858,362 302,401 Allowance for uncollectible at the end of year $ 858,362 $ 302,401 Minimum lease payments receivable collectively evaluated for impairment $ 85,836,232 $ 30,240,137 Individually evaluated for impairment - - Ending balance $ 85,836,232 $ 30,240,137 |
Summary of Risk Classification of Direct Financing Lease Receivables | The risk classification of direct financing lease receivables is as follows: June 30, 2016 June 30, 2015 Normal $ 85,836,232 $ 30,240,137 Abnormal - - Total $ 85,836,232 $ 30,240,137 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment consisted of the following: Useful life (years) Salvage Value June 30, 2016 June 30, 2015 Leasehold improvements 3-5 3 % $ 393,985 $ 34,817 Vehicles 4-5 3%-5 % 1,151,482 1,249,952 Office equipment 3-5 3 % 173,984 102,522 Electric equipment 3 3 % 24,528 64,442 Less: accumulated depreciation (889,260 ) (536,317 ) Property and equipment, net $ 854,719 $ 915,416 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets as of June 30, 2016 and 2015 consisted of: June 30, 2016 June 30, 2015 Advanced payment to third party companies $ 78,523 $ 391,075 Prepaid of insurance cost 175,000 - Receivable for disposal of fix assets 270,000 - Other receivables 85,228 36,311 $ 608,751 $ 427,386 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | Other liabilities as of June 30, 2016 and 2015 consisted of: June 30, 2016 June 30, 2015 Deposit from direct financing lessees $ 9,134,946 $ 3,038,012 Payable to an equipment provider for initial investment in direct financing lease 407,679 467,465 Accrued payroll 42,898 41,741 Other tax payable 510,147 299,533 Other payables 3,385 220,592 $ 10,099,055 $ 4,067,343 |
SHARE- BASED COMPENSATION (Tabl
SHARE- BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Award Activity | The following table summarizes stock award activity and related information for all of Wins FinanceÂ’s Equity Plans for the year ended June 30, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term In Years $ Outstanding, July 1, 2015 - - - Granted 1,450,000 12 3 Exercised - - - Forfeited (180,000 ) - - Canceled - - - Outstanding, June 30, 2016 1,270,000 12 2.42 Exercisable, June 30, 2016 - 12 2.42 Vested and expected to vest, June 30, 2016 1,000,000 12 2.42 |
Schedule of Weighted Average Assumptions Used to Value Options | The weighted-average assumptions used in the Binomial Model calculation for option grants during the year ended June 30, 2016 were as follows: Expected volatility 51.5 % Risk-free interest rates 1.77 % Expected terms 5.0 years Dividend yields 0 % Sub-Optimal behavior multiple 2.80 Fair Value per share of options granted $ 5.27~$5.44 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended June 30, 2016 and 2015, respectively: For the years ended June 30, 2016 June 30, 2015 Net income attributable to the common shareholders $ 12,117,397 $ 26,072,653 Basic weighted-average common shares outstanding 20,012,356 16,800,000 Effect of dilutive securities - - Diluted weighted-average common shares outstanding 20,012,356 16,800,000 Earnings per share – Basic and diluted 0.61 1.55 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Payable | Income tax payable comprises: June 30, 2016 June 30, 2015 Dongsheng Guarantee $ 2,083,683 $ 1,621,710 Jinshang Leasing 427,164 1,446,042 Jinchen Agriculture - 5 $ 2,510,847 $ 3,067,757 |
Schedule of Reconciliation Between the Effective Income Tax Rate and the PRC Statutory Income Tax Rate | The reconciliation between the effective income tax rate and the PRC statutory income tax rate of 25% is as follows: For the years ended June 30, 2016 June 30, 2015 PRC statutory tax 25.0 % 25.0 % Effect of non-deductible expenses 0.0 % 0.0 % Effect of non-taxable income (28.5 )% (14.3 )% Others 9.7 % 0.0 % Effective tax rate 6.2 % 10.7 % |
Schedule of Deferred Tax Assets and Liabilities | June 30, 2016 June 30, 2015 Deferred income tax assets Provision for direct financing lease 208,215 75,600 Direct financing lease incomes 220,309 338,879 Total deferred income tax assets 428,524 414,479 Less: Valuation allowance - - Net total deferred income tax assets 428,524 414,479 Deferred income tax liabilities Direct financing lease losses - - Allowance for guarantee 477,398 969,094 Other difference - 154,648 Total Deferred income tax liabilities 477,398 1,123,742 |
RELATED PARTY TRANSACTIONS AN37
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Balances | Related party balances as of June 30, 2016 consisted of: June 30, 2016 June 30, 2015 Due to related party Bluesky LLC $ 464,000 - $ 464,000 - |
Schedule of Related Party Transactions | Related party transactions for the years ended June 30, 2016 and 2015 consisted of: For the years ended June 30, 2016 June 30, 2015 Amount lent to owners Dongsheng International Investment Group Co., Ltd $ - $ 13,148,677 Dongsheng international investment Ltd (HK) - 8,419,721 $ - $ 21,568,398 Amount repaid from owners Dongsheng International Investment Group Co., Ltd $ - $ 30,474,032 Dongsheng international investment Ltd (HK) - 10,628,558 Wang Hong - 6,517,312 $ - $ 47,619,902 Amount repaid to owners Wang Hong $ - $ 244,399 Tian Wenjun - 175,917 $ - $ 420,316 Amount borrowed from owners Wang Hong $ - $ 16,293 Tian Wenjun - 24,440 $ - $ 40,733 Share repurchase Bluesky LLC 17,464,000 - $ 17,464,000 $ - Convertible debt Bluesky LLC 8,500,000 - $ 8,500,000 $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations | The following table sets forth the CompanyÂ’s contractual obligations as of June 30, 2016 in future periods: For the year ending June 30, Rental payments 2017 $ 272,720 2018 182,271 $ 454,991 |
ORGANIZATION AND PRINCIPAL AC39
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - USD ($) | 1 Months Ended | ||||||
Oct. 23, 2014 | Jun. 30, 2016 | Oct. 26, 2015 | Jun. 30, 2015 | Dec. 22, 2014 | Dec. 02, 2014 | Jul. 27, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Ordinary shares exchanged for cash | $ 100 | ||||||
Common stock, shares issued | 20,041,647 | 21,526,747 | 16,800,000 | ||||
VIRGIN ISLANDS, BRITISH | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 100.00% | ||||||
Holdco [Member] | Former Members [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 78.00% | ||||||
Sino [Member] | Former Stockholders [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 22.00% | ||||||
Common stock, shares issued | 4,726,747 | ||||||
Jinshang Leasing [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 100.00% | ||||||
Common stock, shares issued | 30,000,000 | ||||||
Jinchen Agriculture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 100.00% | ||||||
Full Shine [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Consideration amount | $ 1 | ||||||
Jinshang Leasing [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Number of reporting segments | 1 | |
Guarantee paid on behalf of guarantee service customers | $ 2,039,684 | $ 633,313 |
Reversal of provision on financial guarantee services | 355,313 | 576,456 |
Written-off Guarantee amount | 932,375 | |
Allowance for uncollectibles | 858,362 | 302,401 |
Provision for Specific Allowance | 3,263,312 | |
Provision for General Allowance | 597,444 | 70,467 |
Direct write-downs charged against the allowance | 1,011,999 | |
Commission rate percentage, minimum | 2.00% | |
Commission rate percentage, maximum | 6.00% | |
Impairment loss of long-lived assets | ||
Agreed guaranteed commission period | 12 months | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Salvage value | 3.00% | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Salvage value | 5.00% | |
Guaranteed loans [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.50% | 11.40% |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Financial guarantee service) (Details) - Dongsheng Guarantee [Member] - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
Guarantee | $ 86,289,058 | $ 126,186,812 |
Value of net assets held by Dongsheng Guarantee used to calculate maximum guarantee obligation to customers | $ 195,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Foreign currency translation) (Details) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | ||
Balance sheet items, except for equity accounts | 6.6312 | 6.1088 |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.4352 | 6.1375 |
RISKS (Details)
RISKS (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Risks and Uncertainties [Abstract] | ||
Cash and restricted cash | $ 75,126,811 | $ 38,377,308 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Minimum [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Pledged cash deposit range | 10.00% | |
Maximum [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Pledged cash deposit range | 20.00% | |
Jinshang Leasing [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash deposited with banks | $ 4,500,000 | $ 400,000 |
Dongsheng Guarantee [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash pledged with banks as guarantor deposits | $ 23,400,000 | $ 28,100,000 |
SHORT-TERM INVESTMENTS (Narrati
SHORT-TERM INVESTMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Cost-method Investments [Line Items] | ||
Interest income from short-term investments | $ 13,958,540 | $ 16,657,246 |
Earned uncollected interests | $ 1,021,306 | $ 247,912 |
Minimum [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Interest rate on investment | 5.00% | |
Maximum [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Interest rate on investment | 15.00% |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Short-term Investments [Abstract] | ||
Maturing within one year | $ 23,167,933 | $ 46,654,007 |
Maturing within three years | 13,572,204 | 14,732,844 |
Maturing within five years | 113,101,701 | 122,773,704 |
Short-term investment | $ 149,841,838 | $ 184,160,555 |
NET INVESTMENT IN DIRECT FINA47
NET INVESTMENT IN DIRECT FINANCING LEASES (Schedule of Future Minimum Lease Receipts) (Details) | Jun. 30, 2016USD ($) |
Receivables [Abstract] | |
Within 1 year | $ 30,392,835 |
2 years | 29,717,258 |
3 years | 20,862,739 |
4 years | 2,592,227 |
5 years | 2,271,173 |
Total minimum lease receipts | 85,836,232 |
Less: amount representing interest | (10,272,223) |
Present value of minimum lease receivable | $ 75,564,009 |
NET INVESTMENT IN DIRECT FINA48
NET INVESTMENT IN DIRECT FINANCING LEASES (Summary of the Components of Net Investment in Direcet Financing Leases) (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Receivables [Abstract] | ||
Total minimum lease payments to be received | $ 85,836,232 | $ 30,240,137 |
Less: Amounts representing estimated executory costs | ||
Minimum lease payments receivable | 85,836,232 | 30,240,137 |
Less: Allowance for uncollectible receivables | (858,362) | (302,401) |
Net minimum lease payment receivable | 84,977,870 | 29,937,736 |
Estimated residual value of leased property | ||
Less: unearned income | (10,272,223) | (4,108,681) |
Net investment in direct financing leases | $ 74,705,647 | $ 25,829,055 |
NET INVESTMENT IN DIRECT FINA49
NET INVESTMENT IN DIRECT FINANCING LEASES (Schedule of Allowance for Uncollectible Lease Payments Receivables) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Receivables [Abstract] | ||
Allowance for uncollectible at the beginning of period | $ 302,401 | $ 1,238,685 |
Provision for lease payment receivable | (597,444) | (70,467) |
Direct write-downs charged against the allowance | (1,011,999) | |
Allowance to charge off direct financing lease interest income | ||
Recoveries of amounts previously charged off | ||
Effect of foreign currency translation | (41,483) | 5,248 |
Allowance for uncollectible at the end of year | 858,362 | 302,401 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 858,362 | 302,401 |
Minimum lease payments receivable | ||
Collectively evaluated for impairment | 85,836,232 | 30,240,137 |
Individually evaluated for impairment | ||
Ending balance | $ 85,836,232 | $ 30,240,137 |
NET INVESTMENT IN DIRECT FINA50
NET INVESTMENT IN DIRECT FINANCING LEASES (Summary of Risk Classification of Direct Financing Lease Receivables) (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 85,836,232 | $ 30,240,137 |
Normal [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 85,836,232 | 30,240,137 |
Abnormal [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (889,260) | $ (536,317) |
Property and equipment, net | 854,719 | 915,416 |
Depreciation | $ 411,635 | 257,464 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Salvage value | 3.00% | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Salvage value | 5.00% | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 393,985 | 34,817 |
Salvage value | 3.00% | |
Leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 5 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,151,482 | 1,249,952 |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 4 years | |
Salvage value | 3.00% | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 5 years | |
Salvage value | 5.00% | |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 173,984 | 102,522 |
Salvage value | 3.00% | |
Office equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years | |
Office equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 5 years | |
Electric equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 24,528 | $ 64,442 |
Salvage value | 3.00% | |
Electric equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (years) | 3 years |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Other Assets [Abstract] | ||
Advanced payment to third party companies | $ 78,523 | $ 391,075 |
Prepaid of insurance cost | 175,000 | |
Receivable for disposal of fix assets | 270,000 | |
Other receivables | 85,228 | 36,311 |
Total | $ 608,751 | $ 427,386 |
BANK LOAN FOR CAPITAL LEASE B53
BANK LOAN FOR CAPITAL LEASE BUSINESS (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||
Interest expense | $ 524,409 | $ 188,173 |
Jinshang Leasing [Member] | Bank Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 43,308,617 | |
Jinshang Leasing [Member] | Shuguang Project Bank Loan [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 5.50% | |
Term of loan | 3 years | |
Maturity date | Jun. 30, 2019 | |
Jinshang Leasing [Member] | Yancheng Project Bank Loan [Member] | ||
Debt Instrument [Line Items] | ||
Bearing interest rate | 5.80% | |
Maturity date | Feb. 12, 2020 | |
Jinshang Leasing [Member] | Mortgage Contract Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 511,825 | |
Bearing interest rate | 5.80% | |
Maturity date | Feb. 12, 2020 |
UNEARNED INCOME FROM FINANCIA54
UNEARNED INCOME FROM FINANCIAL GUARANTEE SERVICES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred Revenue Disclosure [Abstract] | ||
Unearned income from guarantee services | $ 423,801 | $ 3,659,062 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Other Liabilities [Abstract] | ||
Deposit from direct financing lessees | $ 9,134,946 | $ 3,038,012 |
Payable to an equipment provider for initial investment in direct financing lease | 407,679 | 467,465 |
Accrued payroll | 42,898 | 41,741 |
Other tax payable | 510,147 | 299,533 |
Other payables | 3,385 | 220,592 |
Total | $ 10,099,055 | $ 4,067,343 |
SHARE- BASED COMPENSATION (Narr
SHARE- BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense | $ 3,410,935 | |
Weighted average period | 2 years 5 months 1 day | |
Share-based compensation | $ 1,889,733 | |
Eight employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 1,450,000 | |
Options granted, weighted average exercise price per share | $ 12 | |
Four employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options forfeited | 450,000 |
SHARE- BASED COMPENSATION (Sche
SHARE- BASED COMPENSATION (Schedule of Stock Award Activity) (Details) - 2015 Long-Term Incentive Equity Plan [Member] | 12 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of Shares | |
Outstanding, July 1, 2015 | shares | |
Granted | shares | 1,450,000 |
Exercised | shares | |
Forfeited | shares | (180,000) |
Canceled | shares | |
Outstanding, June 30, 2016 | shares | 1,270,000 |
Exercisable, June 30, 2016 | shares | |
Vested and expected to vest, June 30, 2016 | shares | 1,000,000 |
Weighted Average Exercise Price | |
Outstanding, July 1, 2015 | $ / shares | |
Granted | $ / shares | 12 |
Exercised | $ / shares | |
Forfeited | $ / shares | |
Canceled | $ / shares | |
Outstanding, June 30, 2016 | $ / shares | 12 |
Exercisable, June 30, 2016 | $ / shares | 12 |
Vested and expected to vest, June 30, 2016 | $ / shares | $ 12 |
Weighted Average Remaining Contractual Term In Years | |
Granted | 3 years |
Outstanding, June 30, 2016 | 2 years 5 months 1 day |
Exercisable, June 30, 2016 | 2 years 5 months 1 day |
Vested and expected to vest, June 30, 2016 | 2 years 5 months 1 day |
SHARE- BASED COMPENSATION (Sc58
SHARE- BASED COMPENSATION (Schedule of Weighted Average Assumptions Used to Value Options) (Details) - 2015 Long-Term Incentive Equity Plan [Member] | 12 Months Ended |
Jun. 30, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 51.50% |
Risk-free interest rates | 1.77% |
Expected terms | 5 years |
Dividend yields | 0.00% |
Sub-Optimal behavior multiple | $ 2.80 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair Value per share of options granted | 5.27 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair Value per share of options granted | $ 5.44 |
CAPITALIZATION (Details)
CAPITALIZATION (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Oct. 26, 2015 | Jun. 30, 2015 | |
Class of Stock [Line Items] | |||
Common stock, par value per share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 20,041,647 | 21,526,747 | 16,800,000 |
Common stock, shares outstanding | 20,041,647 | 21,526,747 | 16,800,000 |
Ordinary shares repurchased, amount | $ 17,524,180 | ||
Due to related party | $ 464,000 | ||
Brad Reifler [Member] | |||
Class of Stock [Line Items] | |||
Ordinary shares repurchased, shares | 5,100 | ||
Ordinary shares repurchased, amount | $ 60,180 | ||
Bluesky LLC [Member] | |||
Class of Stock [Line Items] | |||
Ordinary shares repurchased, shares | 1,480,000 | ||
Ordinary shares repurchased, amount | $ 17,464,000 | ||
Amount paid to related party for repurchase of ordinary shares | 17,000,000 | ||
Due to related party | $ 464,000 | ||
Sino [Member] | Former Stockholders [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares issued | 4,726,747 |
STATUTORY RESERVE (Details)
STATUTORY RESERVE (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Statutory Reserve [Abstract] | |
Percentage allocation of annual after-tax profit to general reserve | 10.00% |
Limit of general reserve to distribute dividends | 50.00% |
EMPLOYEE RETIREMENT BENEFIT (De
EMPLOYEE RETIREMENT BENEFIT (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Employee benefit contributions | $ 107,970 | $ 52,374 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Net income attributable to the common shareholders | $ 12,117,397 | $ 26,072,653 |
Basic weighted-average common shares outstanding | 20,012,356 | 16,800,000 |
Effect of dilutive securities | ||
Diluted weighted-average common shares outstanding | 20,012,356 | 16,800,000 |
Earnings per share - Basic and diluted | $ 0.61 | $ 1.55 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statutory income tax rate | 25.00% | 25.00% |
Effective tax rate | 6.20% | 10.70% |
Jinshang Leasing [Member] | ||
Statutory income tax rate | 25.00% | 25.00% |
Dongsheng Guarantee [Member] | ||
Statutory income tax rate | 25.00% | 25.00% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Payable) (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Income tax payable | $ 2,510,847 | $ 3,067,757 |
Dongsheng Guarantee [Member] | ||
Income tax payable | 2,083,683 | 1,621,710 |
Jinshang Leasing [Member] | ||
Income tax payable | 427,164 | 1,446,042 |
Jinchen Agriculture [Member] | ||
Income tax payable | $ 5 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation Between the Effective Income Tax Rate and the PRC Statutory IncomeTax Rate) (Details) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
PRC statutory tax | 25.00% | 25.00% |
Effect of non-deductible expenses | 0.00% | 0.00% |
Effect of non-taxable income | (28.50%) | (14.30%) |
Others | 9.70% | 0.00% |
Effective tax rate | 6.20% | 10.70% |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred income tax assets | ||
Provision for direct financing lease | $ 208,215 | $ 75,600 |
Direct financing lease incomes | 220,309 | 338,879 |
Total deferred income tax assets | 428,524 | 414,479 |
Less: Valuation allowance | ||
Net total deferred income tax assets | 428,524 | 414,479 |
Deferred income tax liabilities | ||
Direct financing lease losses | ||
Allowance for guarantee | 477,398 | 969,094 |
Other difference | 154,648 | |
Total Deferred income tax liabilities | $ 477,398 | $ 1,123,742 |
RELATED PARTY TRANSACTIONS AN67
RELATED PARTY TRANSACTIONS AND BALANCES (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 28, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Due to related party | $ 464,000 | ||
Bluesky LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Ordinary shares repurchased | 1,480,000 | ||
Ordinary shares repurchased, price per share | $ 11.8 | ||
Amount paid to related party for repurchase of ordinary shares | $ 17,000,000 | ||
Due to related party | $ 464,000 | ||
Bluesky LLC [Member] | Convertible Notes Payable [Member] | |||
Related Party Transaction [Line Items] | |||
Debt instrument face amount | $ 8,500,000 | ||
Interest rate | 4.00% | ||
Maturity date | Dec. 28, 2016 | ||
Conversion price per share | $ 12 | ||
Commission percentage to placement agent | 1.00% |
RELATED PARTY TRANSACTIONS AN68
RELATED PARTY TRANSACTIONS AND BALANCES (Schedule of Related Party Balances) (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due to related party | $ 464,000 | |
Bluesky LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | $ 464,000 |
RELATED PARTY TRANSACTIONS AN69
RELATED PARTY TRANSACTIONS AND BALANCES (Schedule of Related Party Transactions) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transaction [Line Items] | ||
Amount lent to owners | $ 21,568,398 | |
Amount repaid from owners | 47,619,902 | |
Amount repaid to owners | 420,316 | |
Amount borrowed from owners | 40,733 | |
Share repurchase | 17,464,000 | |
Proceeds from convertible debt | 8,500,000 | |
Dongsheng International Investment Group Co., Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Amount lent to owners | 13,148,677 | |
Amount repaid from owners | 30,474,032 | |
Dongsheng international investment Ltd (HK) [Member] | ||
Related Party Transaction [Line Items] | ||
Amount lent to owners | 8,419,721 | |
Amount repaid from owners | 10,628,558 | |
Wang Hong [Member] | ||
Related Party Transaction [Line Items] | ||
Amount repaid from owners | 6,517,312 | |
Amount repaid to owners | 244,399 | |
Amount borrowed from owners | 16,293 | |
Tian Wenjun [Member] | ||
Related Party Transaction [Line Items] | ||
Amount repaid to owners | 175,917 | |
Amount borrowed from owners | 24,440 | |
Bluesky LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Share repurchase | 17,464,000 | |
Proceeds from convertible debt | $ 8,500,000 |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Minimum [Member] | |
Guarantor Obligations [Line Items] | |
Guarantee expiration term | 6 months |
Maximum [Member] | |
Guarantor Obligations [Line Items] | |
Guarantee expiration term | 12 months |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES (Schedule of Contractual Obligations) (Details) | Jun. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 272,720 |
2,018 | 182,271 |
Total | $ 454,991 |