COMMITMENTS AND CONTINGENCIES AND UNCERTAINTIES

12 Months Ended

Jun. 30, 2015

Leases of Lessee Disclosure [Text Block]

NOTE 14- COMMITMENTS AND CONTINGENCIES AND UNCERTAINTIES

On June 29, 2014, Jinong signed an office lease with Kingtone Information. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provided for a two-year term effective as of July 1, 2014 with monthly rent of $4,007 (RMB 24,480).

In February 2004, Tianjuyuan signed a fifty-year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of $484 (RMB 2,958).

Accordingly, the Company recorded an aggregate of $53,636, $63,606 and $63,371 as rent expenses for the years ended June 30, 2015, 2014 and 2013, respectively. Rent expenses for the next five years ended June 30, are as follows:

Year Ended June 30,
2016	$	53,636
2017		5,783
2018		5,783
2019		5,783
2020		5,783

In the next two to three years, China’s growth performance could deteriorate because of the overhang of its real estate bubble, massive manufacturing overcapacity, and the lack of new growth engines. The International Monetary Fund and UBS estimate that the Chinese economy will grow by 6.8% in 2015. If China’s economy is further slowing down, it may negatively affect the Company’s business operation and financial results.

Furthermore, as the Company relies entirely on revenues earned in the PRC, any significant revaluation of RMB may materially and adversely affect its cash flows, revenues and financial condition. The value of the RMB against the U.S. dollar and other currencies may fluctuate and is affected by changes in the PRC's political and economic conditions. In August 2015, the PRC Government devalued its currency by approximately 3%, represented the largest yuan depreciation for 20 years. Concerns remain that China’s slowing economy, and in particular its exports, will need a stimulus that can only come from further cuts in the exchange rate. Very limited hedging transactions are available in China to reduce the Company’s exposure to exchange rate fluctuations. To date, the Company have not entered into any hedging transactions.