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Note 9 - Major Customer and Vendor
6 Months Ended
Sep. 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 and six months ended September 30, 2018 and 2017. Sales to five distributors represented 17%, 14%, 12%, 11%, and 11% of total sales for the three months ended September 30, 2018. Sales to four distributors represented 19%, 16%, 15% and 13% of total sales for the three months ended September 30, 2017.

 

The Company's sales through six distributors represented 16%, 14%, 12%, 12%, 11% and 10% of total sales for the six months ended September 30, 2018. Sales to four distributors represented 17%, 17%, 13% and 13% of total sales for the six months ended September 30, 2017.

 

The Company sold 11 products during the three months ended September 30, 2018 and 2017, respectively. Sales of three products represented 38%, 25%, and 14% of total sales for the three months ended September 30, 2018.  Sales of three products represented 50%, 10%, and 10% of total sales for the three months ended September 30, 2017.   

The Company sold 11 products during the six months ended September 30, 2018 and 2017, respectively. Sales of three products represented 37%, 25%, and 12% of total sales for the six months ended September 30, 2018.  Sales of four products represented 43%, 14%, 10% and 10% of total sales for the six months ended September 30, 2017.

 

The Company purchases certain of its products from Shandong Yongchuntang, a related party, according to the purchase contract signed between the Company and Shandong Yongchuntang. Pursuant to the 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 continues to purchase  the nine products from Shandong Yongchuntang at fixed prices without changes in any terms of the previous contract. Total purchases from Shandong Yongchuntang represented 43% and 43% of our total purchases during the three months ended September 30, 2018 and 2017, respectively. The purchases from three other vendors represented 20%, 13% and 12% of the Company's total purchases for the three months ended September 30, 2018. The purchases from three other vendors represented 20%, 17% and 10% of the Company's total purchases for the three months ended September 30, 2017.

 

Total purchases from Shandong Yongchuntang represented 40% and 49% of our total purchases during the six months ended September 30, 2018 and 2017, respectively.  The purchases from three other vendors represented 26%, 11%, and 11% of the Company's total purchases for the six months ended September 30, 2018. The purchases from two other vendors represented 20% and 16% of the Company's total purchases for the six months ended September 30, 2017.