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Note 7 - Investment Properties

12 Months Ended

Jun. 30, 2022

Investment Property In China [Text Block]

7. INVESTMENT PROPERTIES

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 Date	Investment Amount (RMB)			Investment Amount (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”	Jul 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”	Jul 01, 2018		2,822			410
Reclassification from “Assets held for sale”	Mar 31, 2019		(1,029	)		(143	)
			(5,730	)		(855	)
Net investment in property – China			3,919			585

The following table presents the Company’s investment in properties in China as of June 30, 2021. The exchange rate is based on the market rate as of June 30, 2021.

	Investment Date / Reclassification Date	Investment Amount (RMB)			Investment Amount (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”	Jul 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			-			(36	)
Gross investment in rental property			9,649			1,493
Accumulated depreciation on rental property	Jun 30, 2020		(7,040	)		(1,079	)
Reclassified as “Assets held for sale”	Jul 01, 2018		2,822			410
Reclassification from “Assets held for sale”	Mar 31, 2019		(1,029	)		(143	)
			(5,247	)		(812	)
Net investment in property – China			4,402			681

Rental Property I - MaoYe Property

During the 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 lease agreement was entered into on February 10, 2022 for a period of 4 years at a monthly rate of RMB14, or approximately $2, after termination of the previous agreement. Pursuant to the agreement, monthly rental will increase by 5% each year.

Property purchased from MaoYe generated a rental income of $4 and $9 for the years ended June 30, 2022 and 2021, respectively.

Depreciation expense for MaoYe was $16 and $15 for the years ended June 30, 2022 and 2021, respectively.

Rental Property II - JiangHuai

During the year ended June 30, 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 June 30, 2022, 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 it 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 years ended June 30, 2022 or 2021.

Depreciation expense for JiangHuai was $28 and $27 for the years ended June 30, 2022 and 2021, respectively.

Rental Property III – FuLi

During the year ended June 30, 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 the year ended June 30, 2014.

One of the two commercial properties was leased by TTCQ to a third party under a two-year lease to rent out the 154.49 square meter space at a monthly rate of RMB9, or approximately $1, commencing from May 21, 2021 to May 23, 2023. This agreement was prematurely terminated in May 2022.

TTCQ is actively searching for tenants to occupy the two commercial properties, which are vacant as of the date of this Annual Report.

Properties purchased from FuLi generated a rental income of $21 and $19 for the years ended June 30, 2022 and 2021, respectively.

Depreciation expense for FuLi was $31 and $30 for the years ended June 30, 2022 and 2021, respectively.

Summary

Total rental income for all investment properties in China was $25 and $28 for Fiscal 2022 and 2021, respectively.

Depreciation expense for all investment properties in China was $75 and $72 for Fiscal 2022 and 2021, respectively .