XML 23 R14.htm IDEA: XBRL DOCUMENT

Note 7 - Investment Properties

9 Months Ended

Mar. 31, 2023

Investment Property In China [Text Block]

7. INVESTMENT PROPERTIES

The following table presents the Company’s investment in properties in China as of March 31, 2023. The exchange rate is based on the market rate as of March 31, 2023.

	Investment Date / Reclassification	Investment Amount			Investment Amount
	Date	(RMB)			(U.S. Dollars)

Purchase of rental property – Property I – MaoYe Property	Jan 04, 2008		5,554			894
Currency translation			-			(87	)
Reclassification as “Assets held for sale”	July 01, 2018		(5,554	)		(807	)
Reclassification from “Assets held for sale”	Mar 31, 2019		2,024			301
			2,024			301
Purchase of rental property – Property II - JiangHuai	Jan 06, 2010		3,600			580
Purchase of rental property – Property III - FuLi	Apr 08, 2010		4,025			648
Currency translation			-			(125	)
Gross investment in rental property			9,649			1,404

Accumulated depreciation on rental property	Mar 31, 2023		(7,884	)		(1,153	)
Reclassified as “Assets held for sale”- MaoYe Property	July 01, 2018		2,822			410
Reclassification from “Assets held for sale”- MaoYe Property	Mar 31, 2019		(1,029	)		(143	)
			(6,091	)		(886	)
Net investment in property – China			3,558			517

The following table presents the Company’s investment in properties in China as of June 30, 2022. The exchange rate is based on the market rate as of June 30, 2022.

	Investment Date / Reclassification	Investment Amount			Investment Amount
	Date	(RMB)			(U.S. Dollars)

Purchase of rental property – Property I – MaoYe Property	Jan 04, 2008		5,554			894
Currency translation			-			(87	)
Reclassification as “Assets held for sale”	July 01, 2018		(5,554	)		(807	)
Reclassification from “Assets held for sale”	Mar 31, 2019		2,024			301
			2,024			301
Purchase of rental property – Property II - JiangHuai	Jan 06, 2010		3,600			580
Purchase of rental property – Property III - FuLi	Apr 08, 2010		4,025			648
Currency translation			-			(89	)
Gross investment in rental property			9,649			1,440

Accumulated depreciation on rental property	Jun 30, 2022		(7,523	)		(1,122	)
Reclassified as “Assets held for sale”- MaoYe Property	July 01, 2018		2,822			410
Reclassification from “Assets held for sale”- MaoYe Property	Mar 31, 2019		(1,029	)		(143	)
			(5,730	)		(855	)
Net investment in property – China			3,919			585

Rental Property I - MaoYe Property

In the fiscal year ended June 30, 2008, TTCQ purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”) for a total cash purchase price of RMB 5,554, or approximately $894. During the year ended June 30, 2019, the Company sold thirteen of the fifteen units constituting the MaoYe Property. Management has decided not to sell the remaining two units of MaoYe properties in the near future, due to current conditions of the property market in China. A new tenancy agreement has been secured for the property during the quarter and will be effective from February 1, 2023 for a period of 4 years at a monthly rate of RMB15, or approximately $2. Pursuant to the agreement, monthly rental will increase by 5% each year from the third year onwards.

Property purchased from MaoYe generated a rental income of $nil and $8 during the three and nine months ended March 31, 2023, as compared to $nil and $4 for the same period in Fiscal 2022.

Depreciation expense for MaoYe was $4 and $12 during the three and nine months ended March 31, 2023, as compared to $4 and $12 for the same period in Fiscal 2022.

Rental Property II - JiangHuai

During the year ended June 30, 2010 (“Fiscal 2010”), TTCQ purchased eight units of commercial property in Chongqing, China from Chongqing JiangHuai Real Estate Development Co. Ltd. (“JiangHuai”) for a total purchase price of RMB 3,600, or approximately $580. As of March 31, 2023, TTCQ had not received the title deed for properties purchased from JiangHuai. While the above is not expected to affect the property’s market value, the COVID-19 pandemic and current economic situation is likely to cause delays in court to consummate the execution of the sale.

Property purchased from JiangHuai did not generate any rental income for the three and nine months ended March 31, 2023 and 2022.

Depreciation expense for JiangHuai was $7 and $20 during the three and nine months ended March 31, 2023, as compared to $7 and $21 for the same period in Fiscal 2022.

Rental Property III – FuLi

In Fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing FuLi Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“Office Space”) located in Jiang Bei District Chongqing. The total purchase price committed and paid was RMB 4,025, or approximately $648. The development was completed, the property was transferred to TTCQ in April 2013 and the title deed was received during the third quarter of Fiscal 2014.

In August 2022, TTCQ signed a new tenancy agreement for one of the two commercial properties for a period of 1 year at a monthly rate of RMB6, or approximately $1. TTCQ is actively searching for tenants to occupy the other commercial property, which is vacant as of the date of this Report.

Properties purchased from FuLi generated a rental income of $3 and $7 during the three and nine months ended March 31, 2023, as compared to $4 and $19 for the same period in Fiscal 2022.

Depreciation expense for FuLi was $7 and $22 during the three and nine months ended March 31, 2023, as compared to $8 and $23 for the same period in Fiscal 2022.

Summary

Total rental income for all investment properties in China was $3 and $15 during the three and nine months ended March 31, 2023, as compared to $4 and $23 for the same period in Fiscal 2022.

Depreciation expenses for all investment properties in China were $18 and $54 during the three and nine months ended March 31, 2023, as compared to $19 and $54 for the same period in Fiscal 2022.