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Note 9 - Major Customer and Vendor
3 Months Ended
Jun. 30, 2018
Notes  
Note 9 - Major Customer and Vendor

NOTE 9 - MAJOR CUSTOMERS AND VENDORS

 

 The Company sold products through ten distributors during the three months ended June 30, 2018 and 2017. Sales to six distributors represented 15%, 14%, 12%, 12%, 10%, and 10% of total sales for the three months ended June 30, 2018. Sales to four distributors represented 19%, 16%, 11% and 11% of total sales for the three months ended June 30, 2017.

 

The Company sold 11 and 10 products during the three months ended June 30, 2018 and 2017, respectively.  Sales of three products represented 37%, 25%, and 11% of total sales for the three months ended June 30, 2018.  Sales of four products represented 37%, 17%, 11%, and 11% of total sales for the three months ended June 30, 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 purchase the nine products from Shandong Yongchuntang at fixed prices without changes in any terms of the previous contract. Total purchases from Shandong YCT represented 37% and 54% of our total purchases during the three months ended June 30, 2018 and 2017, respectively. The purchases from three other vendors represented 31%, 10% and 10% of the Company's total purchases for the three months ended June 30, 2018. The purchases from two other vendors represented 19% and 14% of the Company's total purchases for the three months ended June 30, 2017.