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Note 13 - Major Customer and Vendor
12 Months Ended
Mar. 31, 2018
Notes  
Note 13 - Major Customer and Vendor

NOTE 13 - MAJOR CUSTOMERS AND VENDORS

 

The Company sold products mostly through ten distributors during the years ended March 31, 2018 and 2017. Sales to four distributors represented 17%, 16%, 12% and 12% of total sales for the year ended March 31, 2018. Sales to four distributors represented 18%, 13%, 12% and 11% of total sales for the year ended March 31, 2017.

 

The Company sold 11 and 14 products during the years ended March 31, 2018 and 2017. Sales of two products represented 40% and 19% of total sales for the year ended March 31, 2018.  Sales of three products represented 44%, 19% and 14% of total sales for the year ended March 31, 2017.

 

The Company purchases its products from Shandong Yongchuntang, a related party, according to the purchase contract signed between the Company and Shandong Yongchuntang. Pursuant to the renewed one year contract dated February 20, 2017, the Company agreed to purchase nine products from Shandong Yongchuntang at fixed prices. On February 21, 2018, the Company further renewed the purchase contract with Shandong Yongchuntang for a term of one year ending on February 25, 2019.  Pursuant to this most recently renewed one year contract, the Company continue to purchases the nine products from Shandong Yongchuntang at fixed prices without changes in any terms of the previous contract. Total purchases from Shandong Yongchuntang represented 42% and 36% of our total purchases during the years ended March 31, 2018 and 2017, respectively. The revenue from sale of products purchased from Shandong Yongchuntang represented 41% and 36% of total revenue for the years ended March 31, 2018 and 2017, respectively.  The purchases from two other vendors represented 25% and 16% of the Company's total purchases for the year ended March 31, 2018. The purchases from three other vendors represented 24%, 15% and 12% of the Company's total purchases for the year ended March 31, 2017.