RELATED PARTY TRANSACTIONS AND BALANCES

6 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 7 - RELATED PARTY TRANSACTIONS AND BALANCES

 

As of December 31, 2015 and June 30, 2015, the amount due from related parties was $150,396 and $0, respectively. As of December 31, 2015, $150,396 were due from the Company’s affiliate, 900LH.com Food Co., Ltd. ("900LH.com", previously announced as Xi'an Gem Grain Co., Ltd) to Yuxing, representing a balance that 900LH.com would pay to Yuxing according to the Sales Agreement (as defined below) between Yuxing and 900LH.com.

At the end of September 2015, Yuxing entered into a sales agreement with 900LH.com pursuant to which Yuxing is to supply various vegetables to 900LH.com for its incoming seasonal sales at the holidays and year ends (the “Sales Agreement”). The contingent contracted value of  the Sales Agreement is RMB 4,500,000 (approximately $693,000). As of December 31, 2015, the contract had been fulfilled with an exceeded sales amount of $732,947. 900LH.com had paid Yuxing a total of $582,551 with an amount due of $150,396 as of December 31, 2015.

As of December 31, 2015 and June 30, 2015, the amount due to related parties was $2,198,219 and $2,068,102, respectively.  As of December 31, 2015 and June 30, 2015, $1,116,743 and $1,184,643, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science & Technology Industry (Group) Co. Ltd., a company controlled by Mr. Tao Li, Chairman and CEO of the Company, representing unsecured, non-interest bearing loans that are due on demand.  These loans are not subject to written agreements.

On June 29, 2014, Jinong signed an office lease with Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”), where Mr. Tao Li, Chairman and CEO of the Company, serves as its Chairman. 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 RMB24,480 (approximately $3,770).