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Note 5 - Major Customer and Vendor
6 Months Ended
Sep. 30, 2015
Notes  
Note 5 - Major Customer and Vendor

NOTE 5 - MAJOR CUSTOMER AND VENDOR

 

The Company sold products through ten distributors during the three and six months ended September 30, 2015 and 2014. Sales to three distributors represented 26%, 19%, and 8% of total sales for the three months ended September 30, 2015 and sales to two distributors represented 37% and 29% of total sales for the three months ended September 30, 2014, respectively.

 

The Company’s sales through three distributors represented 28%, 22%, and 10% of total sales for the six months ended September 30, 2015, and sales through three distributors represented 37%, 16%, and 15% of total sales for the six months ended September 30, 2014, respectively.

 

The Company sold 6 and 11 products during the three months ended September 30, 2015 and 2014. Sales of two products represented 53% and 22% of total sales for the three months ended September 30, 2015. Sales of one product represented 69% of total sales for the three months ended September 30, 2014.

 

The Company sold 16 and 11 products during the six months ended September 30, 2015 and 2014. Sales of two products represented 60% and 12% of total sales for the six months ended September 30, 2015.  Sales of one product represented 69% of total sales for the six months ended September 30, 2014.

 

The Company purchases its products from Shandong Yong Chun Tang (“Shandong YCT”) according to the contract signed on December 26, 2006 between the Company and Shandong YCT. On February 9, 2010 and February 26, 2015, the Company renewed the Purchase and Sale Contract with Shandong YCT for a term of five years ending on February 28, 2015 and for a term of two years ending on February 28, 2017, respectively. Pursuant to the contract renewed on February 26, 2015, the Company can purchase 10 products from Shandong YCT at fixed prices. On June 25, 2015, the Company made an amendment to the renewed Purchase and Sale Contract with Shandong YCT. Pursuant to the amended Purchase and Sale Contract with Shandong YCT, the Company no longer purchases and sells the 10 products included in the contract renewed on February 26, 2015 and starts to purchase and sell 4 new products without changes in other terms of the previous contract. The Company can purchase these 4 new products from Shandong YCT at fixed prices. Total purchases from Shandong YCT represented 39% and 29% of our total purchases during the three months ended September 30, 2015 and 2014, respectively.   The purchases from three other vendors represented 23%, 20%, and 10% of the Company’s total purchases for the three months ended September 30, 2015. The purchases from two other vendors represented 44% and 26%  of the Company’s total purchases for the three months ended September 30, 2014. Total purchases from Shandong YCT represented 33% and 34% of our total purchases during the six months ended September 30, 2015 and 2014, respectively.  The purchases from two other vendors represented 30% and 21% of the Company’s total purchases for the six months ended September 30, 2015. The purchases from two other vendors represented 32% and 23% of the Company’s total purchases for the six months ended September 30, 2014.