Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2022 | Nov. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 333-227526 | |
Entity Registrant Name | SHENGDA NETWORK TECHNOLOGY, INC. | |
Entity Central Index Key | 0001753931 | |
Entity Tax Identification Number | 35-2606208 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | Floor 6, Building 6 | |
Entity Address, Address Line Two | LuGang WebMall Town | |
Entity Address, Address Line Three | Chou Jiang, YiWu | |
Entity Address, City or Town | Jinhau City, Zhejiang Province | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 322000 | |
City Area Code | (778) | |
Local Phone Number | 888-2886 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SOLQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,009,945 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) |
Current Assets | ||
Cash | $ 608,550 | $ 405,786 |
Account receivable, net | 2,715,697 | 2,191,278 |
Account receivable - related parties, net | 263,079 | 279,395 |
Inventories | 559,245 | 98,831 |
Advances to suppliers - current | 2,458,417 | 3,725,143 |
Other receivable | 61,018 | |
Other receivable from related party | 196,809 | 209,014 |
Total Current Assets | 6,862,815 | 6,909,447 |
Advance to supplier - non-current | 5,576,252 | 5,922,077 |
Right of use asset - operating | 2,109 | 3,359 |
Equipment, net | 44,959 | 51,405 |
Total Assets | 12,486,135 | 12,886,288 |
Current Liabilities | ||
Accounts payable | 99,185 | 137,418 |
Accrued expenses and other payables | 236,809 | 303,553 |
Advance from customers | 48,748 | |
Advance from customers - related party | 20,371 | |
Total Current Liabilities | 384,742 | 461,342 |
Total Liabilities | 384,742 | 461,342 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred Stock, $0.001 par value, 20,000,000 shares authorized; 50,000 shares issued and outstanding | 50 | 50 |
Common Stock, $0.001 par value, 1,000,000,000 shares authorized; 14,009,945 shares issued and outstanding | 14,010 | 14,010 |
Additional paid-in capital | 10,535,909 | 10,535,909 |
Retained earnings | 1,941,278 | 1,527,422 |
Accumulated other comprehensive income (loss) | (396,003) | 346,846 |
Total Shengda Stockholders’ Equity | 12,095,244 | 12,424,237 |
Non-controlling interests | 6,149 | 709 |
Total Stockholders’ Equity | 12,101,393 | 12,424,946 |
Total Liabilities and Stockholders’ Equity | $ 12,486,135 | $ 12,886,288 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 14,009,945 | 14,009,945 |
Common stock, shares outstanding | 14,009,945 | 14,009,945 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Total Revenue | $ 2,903,014 | $ 743,677 |
Cost of Revenue | 2,378,556 | 702,858 |
Gross Profit | 524,458 | 40,819 |
Operating Expenses | ||
Professional fees | 43,918 | 35,685 |
General and administrative | 37,939 | 31,640 |
Total Operating Expenses | 81,857 | 67,325 |
Income (Loss) from Operations | 442,601 | (26,506) |
Other Income (Expense) | (300) | (93) |
Income (Loss) before Income Taxes | 442,301 | (26,599) |
Income Tax Expense | 23,466 | 2,774 |
Net Income (loss) after Tax | 418,835 | (29,373) |
Less: Net Income (Loss) after Tax attributable to non-controlling interests | 4,979 | |
Net Income (Loss) after Tax attributable to Shengda Network Technology, Inc | 413,856 | (29,373) |
Other Comprehensive Income | ||
Foreign currency translation gain (loss) | (742,388) | 17,406 |
Comprehensive Loss | (323,553) | (11,967) |
Less: Comprehensive Income after Tax attributable to non-controlling interests | 461 | |
Total Comprehensive Loss attributable to Shengda Network Technology, Inc | $ (324,014) | $ (11,967) |
Basic and Diluted Net Income (Loss) per Common Share | $ 0.03 | $ 0 |
Weighted-average Number of Common Shares Outstanding | 14,009,945 | 14,009,945 |
Product and Service, Other [Member] | ||
Total Revenue | $ 2,605,046 | $ 743,677 |
Cost of Revenue | 2,364,008 | |
Gross Profit | 241,038 | |
Service [Member] | ||
Total Revenue | 297,968 | |
Cost of Revenue | 14,548 | |
Gross Profit | $ 283,420 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total Shengda Stockholders' Equity [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Jun. 30, 2021 | $ 50 | $ 14,010 | $ 10,515,935 | $ (2,796,477) | $ 820,706 | $ 8,554,174 | $ 8,554,174 | |
Beginning balance, shares at Jun. 30, 2021 | 50,000 | 14,009,945 | ||||||
Net income | (29,373) | (29,373) | (29,373) | |||||
Foreign currency translation adjustment | 17,406 | 17,406 | 17,406 | |||||
Forgiveness of debt | 19,974 | 19,974 | 19,974 | |||||
Ending balance, value at Sep. 30, 2021 | $ 50 | $ 14,010 | 10,535,909 | (2,825,850) | 838,112 | 8,562,181 | 8,562,181 | |
Ending balance, shares at Sep. 30, 2021 | 50,000 | 14,009,945 | ||||||
Beginning balance, value at Jun. 30, 2022 | $ 50 | $ 14,010 | 10,535,909 | 1,527,422 | 346,846 | 12,424,237 | 709 | 12,424,946 |
Beginning balance, shares at Jun. 30, 2022 | 50,000 | 14,009,945 | ||||||
Net income | 413,856 | 413,856 | 4,979 | 418,835 | ||||
Foreign currency translation adjustment | (742,849) | (742,849) | 461 | (742,388) | ||||
Ending balance, value at Sep. 30, 2022 | $ 50 | $ 14,010 | $ 10,535,909 | $ 1,941,278 | $ (396,003) | $ 12,095,244 | $ 6,149 | $ 12,101,393 |
Ending balance, shares at Sep. 30, 2022 | 50,000 | 14,009,945 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income (Loss) | $ 418,835 | $ (29,373) |
Adjustments to Reconcile Net Cash (Used in) Provided by Operating Activities | ||
Depreciation and amortization | 4,670 | 4,692 |
Forgiveness of debt | (19,974) | |
Changes in Operating Assets and Liabilities: | ||
Account receivable | (677,278) | (840,354) |
Account receivable - related parties | 772,809 | |
Inventories | (483,977) | |
Advance to suppliers - current | 1,089,233 | |
Other receivable | (61,018) | |
Accounts payable | (38,040) | 38,422 |
Accrued expenses and other payables | (55,818) | (11,070) |
Advance from customers | 50,609 | |
Advance from customers - related party | (19,914) | |
Advances and deposits | (30,912) | |
Net Cash Provided by (Used in) Operating Activities | 227,302 | (115,760) |
Effect of Exchange Rate Fluctuation on Cash | (24,538) | 14,855 |
Net Increase (Decrease) in Cash | 202,764 | (100,905) |
Cash - Beginning of Period | 405,786 | 143,933 |
Cash - End of Period | 608,550 | 43,028 |
Cash paid during the period for: | ||
Income tax | 14,901 | 10,544 |
Interest | $ 60 |
Organization and Operations, an
Organization and Operations, and Going Concern | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations, and Going Concern | Note 1 – Organization and Operations, and Going Concern In these notes, the terms “us”, “we”, “it”, “its”, “Shengda”, the “Company” or “our” refer to Shengda Network Technology, Inc. and its subsidiaries. Shengda was incorporated under the laws of the State of Nevada on March 14, 2018 under the name Soltrest, Inc. and changed its name to Shengda Network Technology Inc on October 16, 2020. The Company’s principal business is to provide a portal for the sale of products offered by reliable manufacturers and merchants at competitive prices. Products run the gamut from electronics to daily consumables, food and clothing. On April 20, 2020, the Company purchased 10,000 1,330 100 On August 28, 2020, Zhejiang Jingmai Electronic Commerce Ltd set up a 99 99 99 99 99 On August 15, 2022, the Company’s Board was increased to five members. Mr. Yizhong Chen, Mr. Hanguo Li, Mr. Manu Ohri and Mr. Yanfeng Wang were appointed as independent directors of the Board, effective the same date. In addition, effective the same date, the Board created an Audit, Nominating, and Compensation Committees and also adopted a Code of Business Conduct and Ethics. The Company also adopted amended and restated bylaws. Risk and Uncertainty Concerning COVID-19 Pandemic COVID-19 in January 2020 posed great impact in China. However, the COVID-19 outbreak has had There might be outbreaks of COVID-19 in various cities in China in the future, and the Chinese government may take measures to keep COVID-19 under control. If there is not a material recovery in the COVID-19 situation, or the situation further deteriorates in China, our business, results of operations and financial condition could be materially and adversely affected. While the potential downturn brought by and the duration of the COVID-19 outbreak is difficult to assess or predict and the full impact of the virus on our operations will depend on many factors beyond our control. Our business, results of operations, financial condition and prospects could be materially adversely affected to the extent that COVID-19 persists in China or harms the Chinese and global economy in general. Since Anhui Province has been successful on its efforts containing the spread of the virus, we haven’t observed significant impacts concerning the matters relating to logistics, suppliers, and price of raw materials. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 – Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements included herein were The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker”, Peaker’s wholly owned subsidiary Jiangxi Zansheng Information Industry Co., Ltd, Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd or “Jingmai Electronic”, and Jingmai Electronic’s five 99% owned subsidiaries Zhejiang Xiaojing e-commerce Co., Ltd, Yiwu Tianqi Enterprise Management Co., Ltd, Zhejiang Jingtao Supply Chain Co., Ltd, Zhejiang Jingmai e-commerce Co., Ltd, Zhejiang Mengxiang Enterprise Management Co., Ltd and Zhejiang Shubei Supply Chain Co., Ltd, in China. All significant inter-company accounts and transactions were eliminated in consolidation. Non-Controlling Interest Non-controlling interest represents the portion of equity that is not attributable to the Company. The net income (loss) attributable to non-controlling interests is separately presented in the accompanying statements of operations and comprehensive income (loss). Losses attributable to non-controlling interests in a subsidiary may exceed the interest in the subsidiary’s equity. The related non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit of the non-controlling interest balance. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the consolidated financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash Cash consists of petty cash on hand and cash held in banks, which are highly liquid and are unrestricted as to withdrawal or use. Accounts Receivable, net Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts, and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible. The Company establishes a credit and collection policy based on collection history The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded an allowance for doubtful accounts of $ 11,598 12,317 Inventories Inventories are valued at the lower of cost or market. Inventories consist of finished goods. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of September 30, 2022 and June 30, 2022 (audited), the Company had no Equipment Equipment is stated at cost. Straight-line depreciation is used to compute depreciation over the estimated useful lives of the assets, as follows: Schedule of Estimated Useful Lives of Assets Items Useful life Vehicles 5 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses. Long-lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the estimated future undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss equal to the excess of the carrying value over the assets fair market value is recognized when the carrying amount exceeds the undiscounted cash flows. The impairment loss is recorded as an expense and a direct write-down of the asset. No Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of September 30, 2022 and June 30, 2022, the Company did not have any finance lease. Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 8, “Leases,” for additional information. Revenue Recognition The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled for those goods or services. In that determination, under ASC 606, Revenue From Contracts With Customers Online Marketing and Sales, and Technology Consulting Service The Company generates revenue through providing consulting services to customers. The consulting services provided include online marketing and sales consulting services and technology services. The Company typically satisfies its performance obligations in contracts with customers upon render of the services. Service revenue is recognized when promised services are transferred to the customer in an amount that reflects the consideration expected in exchange for those services. Revenues for services are recognized on a straight line basis over the contract. Online Networking Sales The Company generates revenue through online networking sales. Shengda Network Technology is not involved in production. The Company mainly sells products through a significant number of registered companies to members of its sales portal. The Company offers products through offline stores and customer service centers. When the customer receives the product, the control of the products is transferred to the customer. Fair Value Measurements The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 Fair Value Measurement, ● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. ● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the People’s Republic of China (“PRC”) and is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the U.S. The Company’s bank account in the United States is protected by FDIC insurance. As of September 30, 2022 and June 30, 2022 (audited), the Company’s bank account in the United States had no balances exceeding FDIC insurance of $ 250,000 The Company’s bank account in the PRC is protected by the People’s Bank of China Financial Stability Bureau (“FSD”) insurance. As of September 30, 2022 and June 30, 2022 (audited), the Company’s bank account in PRC had $ 390,615 247,930 500,000 Major Customers The Company has two customers Company A and Company B that accounted for 72 10 19 19 17 Major Vendors The Company has four vendors Company A, Company B, Company C, and Company D that accounted for 18 15 12 11 100 Commitment and Contingencies In April 2022, t he Company agreed to purchase $ 25,303,999 (RMB 180 million) from a supplier over the next three years. As of September 30, 2022, the Company had 7,011,558 (RMB 50 million) to the supplier, of which $ 5,576,252 (RMB 39,666,667 ) is recorded as advance to supplier – non-current. The advance is interest free and without collateral. The reasons for making such advance are that the Company started to provide products to clients which are in the internet live broadcasting business. The Company carries minimal inventory, and the supplier directly delivers goods to customers according to purchase orders with the supplier. The advances are refundable and there is no penalty for the Company if it does not purchase the entire RMB 180 million of inventory. The Company had fully paid for the operating lease and expects $ 0 The Company has no legal proceedings and claims. Events or operations that are uncertain may also result in a cash outflow or inflow for the Company are known as contingencies. Contingencies are not guaranteed, and they heavily rely on the occurrence or lack thereof, of uncertain future events. Value Added Tax (“VAT”) The Company is subject to VAT for providing services and sales of goods, ranging from 9 13 Revenue from providing services and sales of products is generally subject to VAT at applicable tax rates, and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other payables. The Company reports revenue net of PRC’s VAT for all the periods presented in the Consolidated Statements of Operations and Comprehensive Income (loss). VAT returns of the Company are subject to examination by the tax authorities for five years from the date of filing. Income Tax Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income taxes are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions. Deferred income tax assets and liabilities are computed on differences between the consolidated financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not. Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgment, the more-likely-than-not threshold is met, but the position does not rise to the level of certain based upon the technical merits of the position. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the three months ended September 30, 2022 and 2021, respectively, and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from September 30, 2022. The effective income tax rate (benefit) 5.3 10.4 Schedule of Effective Income Tax rate 2022 2021 Three Months Ended September 30, 2022 2021 Net income (loss) before income tax $ 442,301 $ (26,599 ) Computed tax expense (benefit) at statutory rate 92,883 (5,586 ) Taxes in foreign jurisdictions with rates different than US 19,451 363 Effect of lower income tax rate of PRC entities (98,104 ) 503 Valuation allowance of US parent company 9,236 7,494 Income tax expense $ 23,466 $ 2,774 Two of the Company’s subsidiairies in China is subject to preferrential income tax rate as being a small e-commerce company in China. The preferrential income tax rate is lower than the statutory income tax of 25% Foreign Currency Translation The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss). The value of RMB against US$ fluctuates. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates used in creating the CFS in this report: Schedule of Foreign Currencies Translation September 30, June 30, (audited) Period-end spot rate US $1=RMB 7.1135 US $1=RMB 6.6981 Three Months Ended September 30, Three Months Ended September 30, Average rate US $1=RMB 6.8520 US $1=RMB 6.4699 Earnings (Loss) Per Share The Company computes net earnings (loss) per share in accordance with ASC 260, “ Earnings per Share” Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), ASU 2019-12, “ Simplifying the Accounting for Income Taxes.” Income Taxes In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the re cognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. For public business entities, the amendments in this Update require that an entity disclose current-period gross write offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. For entities that have adopted the amendments in Update 2016-13, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in Update 2016-13, the effective dates for the amendments in this Update are the same as the effective dates in Update 2016-13. The amendments in this Update should be applied prospectively, except as provided in the next sentence. For the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption of the amendments in this Update is permitted if an entity has adopted the amendments in Update 2016-13, including adoption in an interim period. If an entity elects to early adopt the amendments in this Update in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company evaluated the impact of the adoption of ASU 2022-02, and it did not have any impact on its consolidated financial statements. The Company will adopt ASU 2022-02 effective for fiscal years beginning after December 15, 2022. |
Advance to Suppliers
Advance to Suppliers | 3 Months Ended |
Sep. 30, 2022 | |
Advance To Suppliers | |
Advance to Suppliers | Note 3 - Advance to Suppliers On February 2, 2022, the Company entered into a purchase agreement with an unrelated party, which is the Company’s major supplier. The Company agreed to purchase $ 25,303,999 180 7,011,558 50 5,576,252 39,666,667 180 With advances to all suppliers, advance to suppliers – current was $ 2,458,417 3,725,143 5,576,252 5,922,077 Advance to suppliers – second supplier was $ 1,020,140 1,427,420 |
Account Receivable, net and Acc
Account Receivable, net and Account Receivable – Related Parties, net | 3 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Account Receivable, net and Account Receivable – Related Parties, net | Note 4 – Account Receivable, net and Account Receivable – Related Parties, net As of September 30, 2022 and June 30, 2022, accounts receivable and accounts receivable from related parties consisted of the following: Schedule of Accounts Receivable and Accounts Receivable from Related Parties As of September 30, As of June 30, Accounts receivable and accounts receivable – related parties $ 2,990,374 $ 2,482,990 Less: Allowance for doubtful accounts (11,598 ) (12,317 ) Accounts receivable, net and accounts receivable – related parties, net $ 2,978,776 $ 2,470,673 |
Other Receivable and Other Rece
Other Receivable and Other Receivable from Related Party | 3 Months Ended |
Sep. 30, 2022 | |
Other Receivable And Other Receivable From Related Party | |
Other Receivable and Other Receivable from Related Party | Note 5 – Other Receivable and Other Receivable from Related Party Other receivable was $ 61,018 0 advanced to the Company’s financial advisor; the advance ’s expenses related to professional service Other receivable from related party was $ 196,809 and $ 209,014 as of September 30, 2022 and June 30, 2022, respectively; resulting from payments made by the Company on behalf of Shengda Network Technology Co., Ltd., which is an entity 100 % owned by the Company’s CEO. |
Transfer of Business Ownership
Transfer of Business Ownership | 3 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Transfer of Business Ownership | Note 6 – Transfer of Business Ownership On August 25, 2022, Zhejiang Jingmai Electronic Commerce Ltd received transfer of 99 This transferred entities had no operation or accounting record since its inception until the Company received the 99 |
Equipment
Equipment | 3 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Equipment | Note 7 – Equipment Equipment consists of the following: Schedule of Equipment As of As of September 30, June 30, Vehicle $ 72,514 $ 77,012 Less: Accumulated depreciation (27,555 ) (25,607 ) Equipment, net $ 44,959 $ 51,405 For the three months ended September 30, 2022 and 2021 4,670 4,692 |
Right-Of-Use Assets And Operati
Right-Of-Use Assets And Operating Lease Liabilities | 3 Months Ended |
Sep. 30, 2022 | |
Right-of-use Assets And Operating Lease Liabilities | |
Right-Of-Use Assets And Operating Lease Liabilities | Note 8 – Right-Of-Use Assets And Operating Lease Liabilities On January 5, 2021, Jingmai Electronic leased an office in Zhejiang, China from January 5, 2021 to April 5, 2022. There was rent-free period from January 5, 2021 to April 5, 2021. 366 On March 20, 2022, Zhejiang Jingmai Electronic Commerce Ltd. leased an office in Zhejiang, China. The lease is from April 1, 2022 to March 30, 2023. 351 2,109 3,359 The operating lease is listed as a separate line item on the Company’s consolidated financial statements. The operating lease represents the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as a separate line item on the Company’s consolidated financial statements. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For the three months ended September 30, 2022 and 2021, the Company recorded $ 1,095 964 Information related to the Company’s operating right of use assets and related lease liabilities are as follows: Schedule of Operating ROU Assets and Lease liability Three Months ended September 30, 2022 Three Months ended September 30, 2021 Cash paid for operating lease liabilities $ - $ 4,822 Weighted-average remaining lease term 0.50 0.75 Weighted-average discount rate 5 % 5 % Minimum future lease payments $ - $ - |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 3 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Payables | Note 9 – Accrued Expenses and Other Payables Accrued expense and other payables consists of the following: Schedule of Accrued Expense and Other Payables As of As of September 30, June 30, Payroll payable $ 7,612 $ 8,085 Tax payable 148,116 198,992 Other payable 81,081 96,476 Total accrued expense and other payables $ 236,809 $ 303,553 The accrued expenses and other payable are mainly payroll payable, taxes payable and money borrowed from unrelated parties for operating purpose. These payables are without collateral, interest free, and due on demand. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 10 – Stockholders’ Equity Common Stock On July 1, 2021, the former President and Director of the Company forgave a working capital advance of $ 19,974 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11 – Related Party Transactions Related parties with whom the Company had transactions are: Schedule of Related Party Transaction Related Parties Relationship HangJin Chen President/CEO/CFO/Secretary/Director Youcheng Chen Father of CEO HangJin Chen Li Weiwei President/CEO/CFO/Secretary/Director (Former) Shengda Network Technology Co., Ltd Company controlled by management or affiliate Chengdu Tiantian Aixiu Culture Media Co., Ltd Company controlled by management or affiliate Zhejiang Malai Electronic Commerce Co., Ltd Company controlled by management or affiliate Other receivable from Shengda Network Technology Co., Ltd. was $ 196,809 209,014 Advances from Chengdu Tiantian Aixiu Culture Media Co., Ltd was $ 0 20,371 Sales were $ 0 0 263,073 279,389 Sales were $ 0 0 6 6 |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12 – Segment Information ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has two operating segments: products sales and service. The following tables present summary information by segment for the three months ended September 30, 2022 and 2021, respectively: Schedule of Segment Reporting Information For the Three Months Ended September 30, 2022 2021 Revenue - Products Sales $ 2,605,046 $ 743,677 Revenue - Service 297,968 - Total Revenue $ 2,903,014 $ 743,677 For the Three Months Ended September 30, 2022 Products Sales Service Total Revenue $ 2,605,046 $ 297,968 $ 2,903,014 Cost of revenue 2,364,008 14,548 2,378,556 Gross profit $ 241,038 $ 283,420 $ 524,458 Depreciation and amortization $ 4,670 $ - $ 4,670 As of September 30, As of June 30, Total assets: (audited) Products Sales $ 12,158,074 $ 12,839,205 Service 328,061 47,083 Total Assets $ 12,486,135 $ 12,886,288 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events In accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2022 to the date these consolidated financial statements were issued and has determined there were no significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements included herein were The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker”, Peaker’s wholly owned subsidiary Jiangxi Zansheng Information Industry Co., Ltd, Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd or “Jingmai Electronic”, and Jingmai Electronic’s five 99% owned subsidiaries Zhejiang Xiaojing e-commerce Co., Ltd, Yiwu Tianqi Enterprise Management Co., Ltd, Zhejiang Jingtao Supply Chain Co., Ltd, Zhejiang Jingmai e-commerce Co., Ltd, Zhejiang Mengxiang Enterprise Management Co., Ltd and Zhejiang Shubei Supply Chain Co., Ltd, in China. All significant inter-company accounts and transactions were eliminated in consolidation. |
Non-Controlling Interest | Non-Controlling Interest Non-controlling interest represents the portion of equity that is not attributable to the Company. The net income (loss) attributable to non-controlling interests is separately presented in the accompanying statements of operations and comprehensive income (loss). Losses attributable to non-controlling interests in a subsidiary may exceed the interest in the subsidiary’s equity. The related non-controlling interest continues to be attributed its share of losses even if that attribution results in a deficit of the non-controlling interest balance. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the consolidated financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash | Cash Cash consists of petty cash on hand and cash held in banks, which are highly liquid and are unrestricted as to withdrawal or use. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts, and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible. The Company establishes a credit and collection policy based on collection history The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded an allowance for doubtful accounts of $ 11,598 12,317 |
Inventories | Inventories Inventories are valued at the lower of cost or market. Inventories consist of finished goods. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary. As of September 30, 2022 and June 30, 2022 (audited), the Company had no |
Equipment | Equipment Equipment is stated at cost. Straight-line depreciation is used to compute depreciation over the estimated useful lives of the assets, as follows: Schedule of Estimated Useful Lives of Assets Items Useful life Vehicles 5 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses. |
Long-lived Assets | Long-lived Assets The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset compared to the estimated future undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss equal to the excess of the carrying value over the assets fair market value is recognized when the carrying amount exceeds the undiscounted cash flows. The impairment loss is recorded as an expense and a direct write-down of the asset. No |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of September 30, 2022 and June 30, 2022, the Company did not have any finance lease. Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 8, “Leases,” for additional information. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled for those goods or services. In that determination, under ASC 606, Revenue From Contracts With Customers Online Marketing and Sales, and Technology Consulting Service The Company generates revenue through providing consulting services to customers. The consulting services provided include online marketing and sales consulting services and technology services. The Company typically satisfies its performance obligations in contracts with customers upon render of the services. Service revenue is recognized when promised services are transferred to the customer in an amount that reflects the consideration expected in exchange for those services. Revenues for services are recognized on a straight line basis over the contract. Online Networking Sales The Company generates revenue through online networking sales. Shengda Network Technology is not involved in production. The Company mainly sells products through a significant number of registered companies to members of its sales portal. The Company offers products through offline stores and customer service centers. When the customer receives the product, the control of the products is transferred to the customer. |
Fair Value Measurements | Fair Value Measurements The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 Fair Value Measurement, ● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. ● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s other current financial assets and current financial liabilities have fair values that approximate their carrying values. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the People’s Republic of China (“PRC”) and is not protected by Federal Deposit Insurance Corporation (“FDIC”) insurance or any other similar insurance in the U.S. The Company’s bank account in the United States is protected by FDIC insurance. As of September 30, 2022 and June 30, 2022 (audited), the Company’s bank account in the United States had no balances exceeding FDIC insurance of $ 250,000 The Company’s bank account in the PRC is protected by the People’s Bank of China Financial Stability Bureau (“FSD”) insurance. As of September 30, 2022 and June 30, 2022 (audited), the Company’s bank account in PRC had $ 390,615 247,930 500,000 Major Customers The Company has two customers Company A and Company B that accounted for 72 10 19 19 17 Major Vendors The Company has four vendors Company A, Company B, Company C, and Company D that accounted for 18 15 12 11 100 |
Commitment and Contingencies | Commitment and Contingencies In April 2022, t he Company agreed to purchase $ 25,303,999 (RMB 180 million) from a supplier over the next three years. As of September 30, 2022, the Company had 7,011,558 (RMB 50 million) to the supplier, of which $ 5,576,252 (RMB 39,666,667 ) is recorded as advance to supplier – non-current. The advance is interest free and without collateral. The reasons for making such advance are that the Company started to provide products to clients which are in the internet live broadcasting business. The Company carries minimal inventory, and the supplier directly delivers goods to customers according to purchase orders with the supplier. The advances are refundable and there is no penalty for the Company if it does not purchase the entire RMB 180 million of inventory. The Company had fully paid for the operating lease and expects $ 0 The Company has no legal proceedings and claims. Events or operations that are uncertain may also result in a cash outflow or inflow for the Company are known as contingencies. Contingencies are not guaranteed, and they heavily rely on the occurrence or lack thereof, of uncertain future events. |
Value Added Tax (“VAT”) | Value Added Tax (“VAT”) The Company is subject to VAT for providing services and sales of goods, ranging from 9 13 Revenue from providing services and sales of products is generally subject to VAT at applicable tax rates, and subsequently paid to PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is reflected in accrued expenses and other payables. The Company reports revenue net of PRC’s VAT for all the periods presented in the Consolidated Statements of Operations and Comprehensive Income (loss). VAT returns of the Company are subject to examination by the tax authorities for five years from the date of filing. |
Income Tax | Income Tax Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income taxes are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions. Deferred income tax assets and liabilities are computed on differences between the consolidated financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not. Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgment, the more-likely-than-not threshold is met, but the position does not rise to the level of certain based upon the technical merits of the position. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the three months ended September 30, 2022 and 2021, respectively, and also did not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from September 30, 2022. The effective income tax rate (benefit) 5.3 10.4 Schedule of Effective Income Tax rate 2022 2021 Three Months Ended September 30, 2022 2021 Net income (loss) before income tax $ 442,301 $ (26,599 ) Computed tax expense (benefit) at statutory rate 92,883 (5,586 ) Taxes in foreign jurisdictions with rates different than US 19,451 363 Effect of lower income tax rate of PRC entities (98,104 ) 503 Valuation allowance of US parent company 9,236 7,494 Income tax expense $ 23,466 $ 2,774 Two of the Company’s subsidiairies in China is subject to preferrential income tax rate as being a small e-commerce company in China. The preferrential income tax rate is lower than the statutory income tax of 25% |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss). The value of RMB against US$ fluctuates. Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates used in creating the CFS in this report: Schedule of Foreign Currencies Translation September 30, June 30, (audited) Period-end spot rate US $1=RMB 7.1135 US $1=RMB 6.6981 Three Months Ended September 30, Three Months Ended September 30, Average rate US $1=RMB 6.8520 US $1=RMB 6.4699 |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes net earnings (loss) per share in accordance with ASC 260, “ Earnings per Share” |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), ASU 2019-12, “ Simplifying the Accounting for Income Taxes.” Income Taxes In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the re cognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. For public business entities, the amendments in this Update require that an entity disclose current-period gross write offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. For entities that have adopted the amendments in Update 2016-13, the amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in Update 2016-13, the effective dates for the amendments in this Update are the same as the effective dates in Update 2016-13. The amendments in this Update should be applied prospectively, except as provided in the next sentence. For the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption of the amendments in this Update is permitted if an entity has adopted the amendments in Update 2016-13, including adoption in an interim period. If an entity elects to early adopt the amendments in this Update in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company evaluated the impact of the adoption of ASU 2022-02, and it did not have any impact on its consolidated financial statements. The Company will adopt ASU 2022-02 effective for fiscal years beginning after December 15, 2022. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Equipment is stated at cost. Straight-line depreciation is used to compute depreciation over the estimated useful lives of the assets, as follows: Schedule of Estimated Useful Lives of Assets Items Useful life Vehicles 5 |
Schedule of Effective Income Tax rate | Schedule of Effective Income Tax rate 2022 2021 Three Months Ended September 30, 2022 2021 Net income (loss) before income tax $ 442,301 $ (26,599 ) Computed tax expense (benefit) at statutory rate 92,883 (5,586 ) Taxes in foreign jurisdictions with rates different than US 19,451 363 Effect of lower income tax rate of PRC entities (98,104 ) 503 Valuation allowance of US parent company 9,236 7,494 Income tax expense $ 23,466 $ 2,774 |
Schedule of Foreign Currencies Translation | Schedule of Foreign Currencies Translation September 30, June 30, (audited) Period-end spot rate US $1=RMB 7.1135 US $1=RMB 6.6981 Three Months Ended September 30, Three Months Ended September 30, Average rate US $1=RMB 6.8520 US $1=RMB 6.4699 |
Account Receivable, net and A_2
Account Receivable, net and Account Receivable – Related Parties, net (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Schedule of Accounts Receivable and Accounts Receivable from Related Parties | As of September 30, 2022 and June 30, 2022, accounts receivable and accounts receivable from related parties consisted of the following: Schedule of Accounts Receivable and Accounts Receivable from Related Parties As of September 30, As of June 30, Accounts receivable and accounts receivable – related parties $ 2,990,374 $ 2,482,990 Less: Allowance for doubtful accounts (11,598 ) (12,317 ) Accounts receivable, net and accounts receivable – related parties, net $ 2,978,776 $ 2,470,673 |
Equipment (Tables)
Equipment (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Equipment | Equipment consists of the following: Schedule of Equipment As of As of September 30, June 30, Vehicle $ 72,514 $ 77,012 Less: Accumulated depreciation (27,555 ) (25,607 ) Equipment, net $ 44,959 $ 51,405 |
Right-Of-Use Assets And Opera_2
Right-Of-Use Assets And Operating Lease Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Right-of-use Assets And Operating Lease Liabilities | |
Schedule of Operating ROU Assets and Lease liability | Information related to the Company’s operating right of use assets and related lease liabilities are as follows: Schedule of Operating ROU Assets and Lease liability Three Months ended September 30, 2022 Three Months ended September 30, 2021 Cash paid for operating lease liabilities $ - $ 4,822 Weighted-average remaining lease term 0.50 0.75 Weighted-average discount rate 5 % 5 % Minimum future lease payments $ - $ - |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expense and Other Payables | Accrued expense and other payables consists of the following: Schedule of Accrued Expense and Other Payables As of As of September 30, June 30, Payroll payable $ 7,612 $ 8,085 Tax payable 148,116 198,992 Other payable 81,081 96,476 Total accrued expense and other payables $ 236,809 $ 303,553 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transaction | Related parties with whom the Company had transactions are: Schedule of Related Party Transaction Related Parties Relationship HangJin Chen President/CEO/CFO/Secretary/Director Youcheng Chen Father of CEO HangJin Chen Li Weiwei President/CEO/CFO/Secretary/Director (Former) Shengda Network Technology Co., Ltd Company controlled by management or affiliate Chengdu Tiantian Aixiu Culture Media Co., Ltd Company controlled by management or affiliate Zhejiang Malai Electronic Commerce Co., Ltd Company controlled by management or affiliate |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present summary information by segment for the three months ended September 30, 2022 and 2021, respectively: Schedule of Segment Reporting Information For the Three Months Ended September 30, 2022 2021 Revenue - Products Sales $ 2,605,046 $ 743,677 Revenue - Service 297,968 - Total Revenue $ 2,903,014 $ 743,677 For the Three Months Ended September 30, 2022 Products Sales Service Total Revenue $ 2,605,046 $ 297,968 $ 2,903,014 Cost of revenue 2,364,008 14,548 2,378,556 Gross profit $ 241,038 $ 283,420 $ 524,458 Depreciation and amortization $ 4,670 $ - $ 4,670 As of September 30, As of June 30, Total assets: (audited) Products Sales $ 12,158,074 $ 12,839,205 Service 328,061 47,083 Total Assets $ 12,486,135 $ 12,886,288 |
Organization and Operations, _2
Organization and Operations, and Going Concern (Details Narrative) - USD ($) | Apr. 20, 2020 | Aug. 25, 2022 | Apr. 22, 2022 | Aug. 28, 2020 |
Zhejiang Xiaojing e-commerce Co., Ltd. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Ownership, percentage | 99% | |||
Yiwu Tianqi Enterprise Management Co., Ltd [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Ownership, percentage | 99% | |||
Zhejiang Jingmai e-commerce Co., Ltd [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Ownership, percentage | 99% | |||
Zhejiang Jingtao Supply Chain Co., Ltd. [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Ownership, percentage | 99% | |||
Zhejiang Mengxiang Enterprise Management Co., Ltd [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Ownership, percentage | 99% | |||
Peaker International Trade Group Limited [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of common stock purchased shares | 10,000 | |||
Consideration of common stock | $ 1,330 | |||
Shares purchased in transaction, percentage | 100% |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Assets (Details) | 3 Months Ended |
Sep. 30, 2022 | |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Schedule of Effective Income Ta
Schedule of Effective Income Tax rate (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||
Net income (loss) before income tax | $ 442,301 | $ (26,599) |
Computed tax expense (benefit) at statutory rate | 92,883 | (5,586) |
Taxes in foreign jurisdictions with rates different than US | 19,451 | 363 |
Effect of lower income tax rate of PRC entities | (98,104) | 503 |
Valuation allowance of US parent company | 9,236 | 7,494 |
Income tax expense | $ 23,466 | $ 2,774 |
Schedule of Foreign Currencies
Schedule of Foreign Currencies Translation (Details) | Sep. 30, 2022 | Jun. 30, 2022 |
Period End RMB [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Period-end spot rate | 0.071135 | 0.066981 |
Average Rate RMB [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Period-end spot rate | 0.068520 | 0.064699 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) | 1 Months Ended | 3 Months Ended | |||||||
Feb. 02, 2022 USD ($) | Feb. 02, 2022 CNY (¥) | Apr. 30, 2022 USD ($) | Apr. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | |
Product Information [Line Items] | |||||||||
Allowance for doubtful accounts | $ 11,598 | $ 12,317 | |||||||
Reserve for obsolete goods | 0 | 0 | |||||||
Impairment of long-lived assets disposed | 0 | $ 0 | |||||||
Cash at FDIC insurance | 250,000 | 250,000 | |||||||
Cash | 390,615 | 247,930 | |||||||
Cash fsd insured amount | ¥ | ¥ 500,000 | ||||||||
Proceeds from Repayment of Loans to Purchase Common Stock | $ 25,303,999 | ¥ 180,000,000 | $ 25,303,999 | ¥ 180,000,000 | |||||
[custom:AdvancePaymentofSupplierCurrent] | 7,011,558 | ¥ 50,000,000 | |||||||
[custom:AdvanceToSuppliersNoncurrent-0] | 5,576,252 | ¥ 39,666,667 | $ 5,922,077 | ||||||
[custom:RefundOfAdvancesForInventoryPurchase] | ¥ | ¥ 180,000,000 | ||||||||
Payment of operating lease costs | $ 0 | ||||||||
Effective income tax percentage | 5.30% | 5.30% | 10.40% | ||||||
Statutory income tax rate | 25% | 25% | |||||||
Minimum [Member] | |||||||||
Product Information [Line Items] | |||||||||
VAT percentage | 9% | 9% | |||||||
Maximum [Member] | |||||||||
Product Information [Line Items] | |||||||||
VAT percentage | 13% | 13% | |||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Company A [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 72% | 72% | |||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Company B [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 10% | 10% | |||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Company C [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 19% | ||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Company D [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 19% | ||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Company E [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 17% | ||||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Company A [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 18% | 18% | |||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Company B [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 15% | 15% | |||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Company C [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 12% | 12% | |||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Company D [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 11% | 11% | |||||||
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Vendors [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentrations of credit risk, percentage | 100% |
Advance to Suppliers (Details N
Advance to Suppliers (Details Narrative) | 1 Months Ended | 3 Months Ended | ||||||
Feb. 02, 2022 USD ($) | Feb. 02, 2022 CNY (¥) | Apr. 30, 2022 USD ($) | Apr. 30, 2022 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Jun. 30, 2022 USD ($) | |
Purchase from unrelated party | $ 25,303,999 | ¥ 180,000,000 | $ 25,303,999 | ¥ 180,000,000 | ||||
Advance payment | $ 7,011,558 | ¥ 50,000,000 | ||||||
Advance to supplier, current | 5,576,252 | ¥ 39,666,667 | $ 5,922,077 | |||||
Refund of advances for inventory purchase | ¥ | ¥ 180,000,000 | |||||||
Advance to supplier, current | 2,458,417 | 3,725,143 | ||||||
Second Supplier [Member] | ||||||||
Advance to supplier | $ 1,020,140 | $ 1,427,420 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable and Accounts Receivable from Related Parties (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Credit Loss [Abstract] | ||
Accounts receivable and accounts receivable – related parties | $ 2,990,374 | $ 2,482,990 |
Less: Allowance for doubtful accounts | (11,598) | (12,317) |
Accounts receivable, net and accounts receivable – related parties, net | $ 2,978,776 | $ 2,470,673 |
Other Receivable and Other Re_2
Other Receivable and Other Receivable from Related Party (Details Narrative) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Other receivable | $ 61,018 | |
Accounts and Other Receivables, Net, Current | $ 196,809 | $ 209,014 |
Shengda Network Technology Co., Ltd [Member] | ||
Ownership interest | 100% |
Transfer of Business Ownership
Transfer of Business Ownership (Details Narrative) | Aug. 25, 2022 |
Zhejiang Mengxiang Enterprise Management Co., Ltd [Member] | |
Ownership, percentage | 99% |
Schedule of Equipment (Details)
Schedule of Equipment (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (27,555) | $ (25,607) |
Equipment, net | 44,959 | 51,405 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Vehicle | $ 72,514 | $ 77,012 |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Operating lease right of use assets amortization expenses | $ 4,670 | $ 4,692 |
Schedule of Operating ROU Asset
Schedule of Operating ROU Assets and Lease liability (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Right-of-use Assets And Operating Lease Liabilities | ||
Cash paid for operating lease liabilities | $ 4,822 | |
Weighted-average remaining lease term | 6 months | 9 months |
Weighted-average discount rate | 5% | 5% |
Minimum future lease payments |
Right-Of-Use Assets And Opera_3
Right-Of-Use Assets And Operating Lease Liabilities (Details Narrative) - USD ($) | 3 Months Ended | ||||
Mar. 20, 2022 | Jan. 05, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Operating lease right of use asset | $ 2,109 | $ 3,359 | |||
Operating lease costs | $ 1,095 | $ 964 | |||
Zhejiang Jingmai Electronic Commerce Ltd [Member] | |||||
Lessee operating lease description | The lease is from April 1, 2022 to March 30, 2023. | January 5, 2021 to April 5, 2022. There was rent-free period from January 5, 2021 to April 5, 2021. | |||
Rental expense | $ 351 | $ 366 |
Schedule of Accrued Expense and
Schedule of Accrued Expense and Other Payables (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Payables and Accruals [Abstract] | ||
Payroll payable | $ 7,612 | $ 8,085 |
Tax payable | 148,116 | 198,992 |
Other payable | 81,081 | 96,476 |
Total accrued expense and other payables | $ 236,809 | $ 303,553 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) | Jul. 02, 2021 USD ($) |
Former President and Director [Member] | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Forgiveness of debt | $ 19,974 |
Schedule of Related Party Trans
Schedule of Related Party Transaction (Details) | 3 Months Ended |
Sep. 30, 2022 | |
HangJin Chen [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director |
Youcheng Chen [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | Father of CEO HangJin Chen |
Li Weiwei [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | President/CEO/CFO/Secretary/Director (Former) |
Shengda Network Technology Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | Company controlled by management or affiliate |
Chengdu Tiantian Aixiu Culture Media Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | Company controlled by management or affiliate |
Zhejiang Malai Electronic Commerce Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Relationship with related parties | Company controlled by management or affiliate |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | |||
Other receivables | $ 196,809 | $ 209,014 | |
Advance from customers - related party | 20,371 | ||
Chengdu Tiantian Aixiu Culture Media Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from customers - related party | 0 | 20,371 | |
Revenue - Related Party | 0 | $ 0 | |
Due from related parties | 263,073 | 279,389 | |
Zhejiang Malai Electronic Commerce Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | $ 6 | $ 6 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 2,903,014 | $ 743,677 | |
Cost of revenue | 2,378,556 | 702,858 | |
Gross profit | 524,458 | 40,819 | |
Depreciation and amortization | 4,670 | 4,692 | |
Total Assets | 12,486,135 | $ 12,886,288 | |
Product and Service, Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue | 2,605,046 | 743,677 | |
Cost of revenue | 2,364,008 | ||
Gross profit | 241,038 | ||
Depreciation and amortization | 4,670 | ||
Total Assets | 12,158,074 | 12,839,205 | |
Service [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue | 297,968 | ||
Cost of revenue | 14,548 | ||
Gross profit | 283,420 | ||
Depreciation and amortization | |||
Total Assets | $ 328,061 | $ 47,083 |