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Note 5 - Major Customer and Vendor
9 Months Ended
Dec. 31, 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 nine months ended December 31, 2015 and 2014. Sales to two distributors represented 23% and 19% of total sales for the three months ended December 31, 2015 and sales to three distributors represented 40%, 22%, and 17% of total sales for the three months ended December 31, 2014, respectively.

 

The Company's sales through two distributors represented 27% and 21% of total sales for the nine months ended December 31, 2015, and sales through three distributors represented 30%, 27%, and 17% of total sales for the nine months ended December 31, 2014, respectively.

 

The Company sold 6 and 11 products during the three months ended December 31, 2015 and 2014. Sales of three products represented 51%, 17%, and 11% of total sales for the three months ended December 31, 2015. Sales of one product represented 73% of total sales for the three months ended December 31, 2014.

 

The Company sold 16 and 11 products during the nine months ended December 31, 2015 and 2014. Sales of two products represented 57% and 12% of total sales for the nine months ended December 31, 2015.  Sales of one product represented 70% of total sales for the nine months ended December 31, 2014.

 

The Company purchases its products from Shandong Yong Chun Tang Biotechnology Co., Ltd ("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 could 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 agreed to purchase and sell four new products without changes in other terms of the previous contract. The Company can purchase these four new products from Shandong YCT at fixed prices. Total purchases from Shandong YCT represented 37% and 24% of our total purchases during the three months ended December 31, 2015 and 2014, respectively.  The purchases from two other vendors represented 32% and 16% of the Company's total purchases for the three months ended December 31, 2015. The purchases from two other vendors represented 41% and 28% of the Company's total purchases for the three months ended December 31, 2014. Total purchases from Shandong YCT represented 34% and 21% of our total purchases during the nine months ended December 31, 2015 and 2014, respectively.  The purchases from two other vendors represented 31% and 20% of the Company's total purchases for the nine months ended December 31, 2015. The purchases from two other vendors represented 22% and 15% of the Company's total purchases for the nine months ended December 31, 2014.