10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2016

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from ____________ to ____________

Commission File Number 001-34260

CHINA GREEN AGRICULTURE, INC.

(Exact name of registrant as specified in its charter)

Nevada	36-3526027
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

3rd floor, Borough A, Block A. No. 181, South Taibai

Road,Xi’an, Shaanxi province, PRC 710065

(Address of principal executive offices) (Zip Code)

+86-29-88266368

(Issuer's telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x
( Do not check if a smaller reporting company )

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 36,978,605 shares of common stock, $.001 par value, as of May 9, 2016.

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION	3
Item 1.	Financial Statements	3
	Consolidated Condensed Balance Sheets As of March 31, 2016 and June 30, 2015 (Unaudited)	3
	Consolidated Condensed Statements of Income and Comprehensive Income For the Three and Nine Months Ended March 31, 2016 and 2015 (Unaudited)	4
	Consolidated Condensed Statements of Cash Flows For the Nine Months Ended March 31, 2016 and 2015 (Unaudited)	5
	Notes to Consolidated Condensed Financial Statements As of March 31, 2016 (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	35
PART II	OTHER INFORMATION	35
Item 6.	Exhibits	35
Signatures		36
Exhibits/Certifications		37

2  

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2016		June 30, 2015
ASSETS
Current Assets
Cash and cash equivalents	$	90,470,157	$	92,982,564
Accounts receivable, net		74,730,414		68,528,598
Amount due from related parties		613,452		-
Inventories		108,506,803		101,302,947
Prepaid expenses and other current assets		482,232		459,400
Advances to suppliers, net		37,331,983		40,910,837
Total Current Assets		312,135,041		304,184,346
Plant, Property and Equipment, Net		39,578,484		44,634,194
Other Receivables, Net of current portion		-		-
Deferred Asset, Net		21,661,860		51,527,209
Other Assets		122,353		185,480
Intangible Assets, Net		21,433,707		23,805,746
Goodwill		4,970,063		5,245,643
Total Assets	$	399,901,508	$	429,582,618
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	2,599,720	$	2,372,130
Customer deposits		5,380,817		19,129,853
Accrued expenses and other payables		5,334,105		4,952,977
Amount due to related parties		2,206,144		2,068,102
Taxes payable		3,850,312		4,504,542
Short term loans		4,808,100		23,605,540
Total Current Liabilities		24,179,198		56,633,144
Commitment and Contingencies
Stockholders' Equity
Preferred Stock, $.001 par value,  20,000,000 shares authorized, zero shares issued and outstanding		-		-
Common stock, $.001 par value, 115,197,165 shares authorized,  36,978,605 and 35,905,198 shares issued and outstanding as of March 31, 2016 and June 30, 2015, respectively		36,978		35,905
Additional paid-in capital		126,373,464		123,360,384
Statutory reserve		26,708,547		25,030,688
Retained earnings		216,901,378		198,814,259
Accumulated other comprehensive income		5,701,943		25,708,238
Total Stockholders' Equity		375,722,310		372,949,474
Total Liabilities and Stockholders' Equity	$	399,901,508	$	429,582,618

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3  

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended  March 31						Nine Months Ended March 31,
	2016			2015			2016			2015
Sales
Jinong	$	31,602,239		$	33,289,393		$	97,612,604		$	98,946,251
Gufeng		43,762,058			45,022,730			85,576,564			82,787,611
Yuxing		3,274,177			1,175,092			6,599,577			3,106,317
Net sales		78,638,474			79,487,215			189,788,745			184,840,179
Cost of goods sold
Jinong		13,353,222			13,623,964			41,328,293			39,318,627
Gufeng		38,109,311			36,814,676			72,567,833			67,448,840
Yuxing		2,441,652			858,058			4,334,600			2,298,767
Cost of goods sold		53,904,185			51,296,698			118,230,726			109,066,234
Gross profit		24,734,289			28,190,517			71,558,019			75,773,945
Operating expenses
Selling expenses		3,441,511			2,054,025			11,070,369			4,770,727
Selling expenses - amortization of deferred asset		8,780,893			10,604,586			27,158,360			31,587,102
General and administrative expenses		2,204,771			2,606,749			7,864,395			8,920,360
Total operating expenses		14,427,175			15,265,360			46,093,124			45,278,189
Income from operations		10,307,114			12,925,157			25,464,895			30,495,756
Other income (expense)
Other income (expense)		(2,473	)		10,651			(6,307	)		57,355
Interest income		263,768			161,625			416,700			229,979
Interest expense		(211,734	)		(363,958	)		(943,413	)		(1,179,617	)
Total other income (expense)		49,561			(191,682	)		(533,020	)		(892,283	)
Income before income taxes		10,356,675			12,733,475			24,931,875			29,603,473
Provision for income taxes		2,104,904			2,817,281			5,166,897			6,372,760
Net income		8,251,771			9,916,194			19,764,978			23,230,713
Other comprehensive income (loss)
Foreign currency translation gain (loss)		2,722,073			1,534,901			(20,006,295	)		2,161,055
Comprehensive income (loss)	$	10,973,844		$	11,451,095		$	(241,317	)	$	25,391,768
Basic weighted average shares outstanding		36,962,166			34,783,456			36,610,131			33,471,214
Basic net earnings per share	$	0.22		$	0.29		$	0.54		$	0.69
Diluted weighted average shares outstanding		36,962,166			34,783,456			36,610,131			33,471,214
Diluted net earnings per share		0.22			0.29			0.54			0.69

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4  

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended March 31,
	2016			2015
Cash flows from operating activities
Net income	$	19,764,978		$	23,230,713
Adjustments to reconcile net income to net cash provided by operating activities
Issuance of common stock and stock options for compensation		3,014,153			4,344,098
Depreciation and amortization		31,245,614			35,902,903
Loss on disposal of property, plant and equipment		1,375			26,152
Changes in operating assets
Accounts receivable		(9,877,811	)		17,421,141
Amount due from related parties		(618,198	)
Other current assets		(52,579	)		(122,023	)
Inventories		(12,622,730	)		(47,471,638	)
Advances to suppliers		1,440,660			16,603,898
Other assets		53,797			(96,445	)
Changes in operating liabilities
Accounts payable		343,579			938,026
Customer deposits		(12,842,647	)		248,937
Tax payables		(420,814	)		6,385,762
Accrued expenses and other payables		456,970			505,846
Amount due to related parties		-			-
Net cash provided by operating activities		19,886,347			57,917,370
Cash flows from investing activities
Purchase of plant, property, and equipment		(16,608	)		(415,768	)
Proceeds from other receivables		-			1,968,670
Deferred assets		-			(9,228,043	)
Net cash used in investing activities		(16,608	)		(7,675,141	)
Cash flows from financing activities
Proceeds from the sale of common stock		-			1,872,593
Proceeds from loans		5,626,800			19,702,970
Repayment of loans		(23,319,960	)		(22,403,790	)
Payment of dividends		-			(2,161,904	)
Advance from related party		200,000			300,400
Net cash used in financing activities		(17,493,160	)		(2,689,731	)
Effect of exchange rate change on cash and cash equivalents		(4,888,986	)		343,032
Net increase in cash and cash equivalents		(2,512,407	)		47,895,530
Cash and cash equivalents, beginning balance		92,982,564			26,890,321
Cash and cash equivalents, ending balance	$	90,470,157		$	74,785,851
Supplement disclosure of cash flow information		-
Interest expense paid	$	943,413		$	1,179,637
Income taxes paid	$	583,304		$	836,913

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5  

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

China Green Agriculture, Inc. (the “Company”, “Parent Company” or “Green Nevada”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production and distribution of agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings.

Unless the context indicates otherwise, as used in the notes to the financial statements of the Company, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the PRC controlled by Jinong through contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), and (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”).

The Company’s corporate structure as of March 31, 2016 is set forth in the diagram below:

The unaudited consolidated financial statements were prepared by Company pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) were omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K. The results for the nine months ended March 31, 2016, are not necessarily indicative of the results to be expected for the year ending June 30, 2016.

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NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan and VIE Yuxing. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Cash and cash equivalents and concentration of cash

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the People’s Republic of China (“PRC”) and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in two banks in China. The aggregate cash in such accounts and on hand as of March 31, 2016 and June 30, 2015 was $90,470,157 and $92,982,564, respectively. There is no insurance securing these deposits in China over $77,000 (RMB 500,000). In addition, the Company also had $47,972 and $306,376 in cash in two banks in the United States as of March 31, 2016 and June 30, 2015, respectively, with $500,000 secured by the U.S. Federal Deposit Insurance Corporation. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

Deferred assets

Deferred assets represent amounts that the distributors owed to the Company in their marketing efforts and developing standard stores to expand the competitiveness and market shares of the Company’s products . The amount owed to the Company will be expensed over three years which is the term as stated in the cooperation agreement, as long as the distributors are actively selling the Company’s products. For the nine months ended March 31, 2016 and 2015, the Company amortized $31,245,614 and $35,902,903, respectively of the deferred assets. If a distributor breaches, defaults, or terminates the agreement with the Company within the three-year period, the outstanding unamortized portion of the amount owed will become payable to the Company immediately. The Company’s Chairman, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from distributors.

The deferred assets consist of items inside the distributors’ stores such as furniture, racks, cabinets, and display units, and items outside or attached to the distributors’ stores such as signage and billboards. These types of assets would be capitalized as fixed assets if the Company actually owned the stores or utilized the assets for its own operations. These assets would also be capitalized as leasehold improvements if the Company leased these stores from the distributors. Therefore, the Company believes that under the U.S. Generally Accepted Accounting Principles (G.A.A.P), these types of assets purchases are properly capitalized. In addition, the Company believes that these assets are properly classified as deferred assets because if a distributor breaches, defaults, or terminates the agreement with the Company within a three-year period, a proportionate amount expended by the Company is to be repaid by the distributor. The Chairman of the Board of Directors of the Company guaranteed to the Company of amounts remaining unpaid due from distributors.

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The assets inside the distributors’ stores are custom made to fit the layout of each individual store and the signage and billboards are also custom designed to fit the specific location. The assets were purchased by the Company directly from the manufacturers and installed in the distributors’ stores. The Company wants to maintain control over the quality of the items being purchased as well as making them uniform among all the distributor locations.

Earnings per share

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share consist of the following:

	Nine Months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	19,764,978	$	13,314,519
Basic Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Basic	$	0.54	$	0.41
Net Income for Diluted Earnings Per Share	$	19,764,978	$	13,314,519
Diluted Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Diluted	$	0.54	$	0.41
	Three months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	8,251,771	$	9,916,194
Basic Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Basic	$	0.22	$	0.29
Net Income for Diluted Earnings Per Share	$	8,251,771	$	9,916,194
Diluted Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Diluted	$	0.22	$	0.29

Reclassification

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2015 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported.

Recent accounting pronouncements

FASB Accounting Standards Update No. 2014-09

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) , which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard beginning January 1, 2017.

8  

FASB Accounting Standards Update No. 2015-01

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement – Extraordinary and Unusual items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01).  The amendment eliminates from U.S. GAAP the concept of extraordinary items.  This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted and allows the Company to apply the amendment prospectively or retrospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

FASB Accounting Standards Update No. 2015-02

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This amendment provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning December 15, 2015. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted.

FASB Accounting Standards Update No. 2015-14

In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment defers the effective date of ASU No. 2014-09 for all entities for one year. The guidance in ASU 2014-09 will now apply to public business entities, certain not-for-profit entities, and certain employee benefit plans from annual reporting periods beginning December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods after December 31, 2016, including interim reporting periods with that reporting period.

FASB Accounting Standards Update No. 2015-16

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). ASU No. 2015-16 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The adoption of ASU 2015-016 is not expected to have a material effect on the Company’s consolidated financial statements.

In November 2015, FASB issued ASU No. 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). The amendments in this update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of the guidance is not expected to have significant impact on the Group’s consolidated financial statements.

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Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

NOTE 3 – INVENTORIES

Inventories consisted of the following:

	March 31,		June 30,
	2016		2015
Raw materials	$	77,093,013	$	48,294,614
Supplies and packing materials	$	618,972	$	529,398
Work in progress	$	420,671	$	348,670
Finished goods	$	30,374,147	$	52,130,265
Total	$	108,506,803	$	101,302,947

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	March 31,			June 30,
	2016			2015
Building and improvements	$	41,979,732		$	43,699,066
Auto		603,230			900,562
Machinery and equipment		21,620,797			23,173,209
Agriculture assets		789,395			833,165
Total property, plant and equipment		64,993,155			68,606,002
Less: accumulated depreciation		(25,414,671	)		(23,971,808	)
Total	$	39,578,484		$	44,634,194

NOTE 5 - INTANGIBLE ASSETS

Intangible assets consisted of the following:

	March 31,		June 30,
	2016		2015
Land use rights, net	$	10,760,822	$	11,554,776
Technology patent, net		59,455		251,008
Customer relationships, net		4,300,860		5,337,372
Trademarks		6,312,570		6,662,590
Total	$	21,433,707	$	23,805,746

LAND USE RIGHT

On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $11,350,977). The intangible asset is being amortized over the grant period of 50 years using the straight line method.

10  

On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1,045,950 (or $162,227). The intangible asset is being amortized over the grant period of 50 years using the straight line method.

On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land & Resources Bureau of Yangling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB7,285,099 (or $1,129,919). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consisted of the following:

	March 31,			June 30,
	2016			2015
Land use rights	$	12,643,123		$	13,344,160
Less: accumulated amortization		(1,882,301	))		(1,789,384	)
Total land use rights, net	$	10,760,822		$	11,554,776

TECHNOLOGY PATENT

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired technology patent was estimated to be RMB 9,200,000 (or $1,426,920) and is amortized over the remaining useful life of six years using the straight line method.

The technology know-how consisted of the following:

	March 31,			June 30,
	2016			2015
Technology know-how	$	2,338,143		$	2,467,789
Less: accumulated amortization		(2,278,688	))		(2,216,781	)
Total technology know-how, net	$	59,455		$	251,008

CUSTOMER RELATIONSHIP

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $10,081,500) and is amortized over the remaining useful life of ten years.

	March 31,			June 30,
	2016			2015
Customer relationships	$	10,081,500		$	10,640,500
Less: accumulated amortization		(5,780,640	))		(5,303,128	)
Total customer relationships, net	$	4,300,860		$	5,337,372

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be RMB40,700,000 (or $6,312,570) and is subject to an annual impairment test.

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AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next five twelve months periods ended March 31, 2016, are as follows:

AMORTIZATION TABLE
Year Ends	Expense ($)
March 31, 2016		1,320,467
March 31, 2017		1,261,012
March 31, 2018		1,261,012
March 31, 2019		1,261,012
March 31, 2020		504,899

NOTE 6 - ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consisted of the following:

	March 31,		June 30,
	2016		2015
Payroll payable	$	8,647	$	18,451
Welfare payable		159,232		168,061
Accrued expenses		4,058,550		3,554,733
Other payables		977,911		1,098,705
Other levy payable		129,765		113,027
Total	$	5,334,105	$	4,952,977

NOTE 7 - RELATED PARTIES TRANSACTIONS

As of March 31, 2016 and June 30, 2015, the amount due from related parties was $613,452 and $0, respectively.  As of March 31, 2016, $613,452 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 December 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 25,500,000 (approximately $3,955,050). For the nine months ended March 31, 2016, Yuxing has sold approximately $613,452 products to 900LH.com.

As of March 31, 2016 and June 30, 2015, the amount due to related parties was $2,206,144 and $2,068,102, respectively.  As of March 31, 2016 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 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 $3,797).

NOTE 8- LOAN PAYABLES

As of March 31, 2016, the short-term loan payables consisted of three loans which mature on dates ranging from April 29, 2016 through January 17, 2017 with interest rates ranging from 5.00% to 5.82%. The loans No. 1 and 3 below are collateralized by Tianjuyan’s land use right and building ownership right. The loans No. 2 is guaranteed by Jinong’s credit.

12  

No.	Payee	Loan Period per agreement	Interest Rate			March 31, 2016
1	Agriculture Bank of China-Pinggu Branch	May 12, 2015 – Apr. 29, 2016		5.80	%	$	2,016,300
2	Bank of Tianjin- Beijing Branch	Aug. 11, 2015 – Aug. 2, 2016		5.82	%		1,551,000
3	Agriculture Bank of China-Pinggu Branch	Jan. 19, 2016 – Jan. 17, 2017		5	%		1,240,800
	Total					$	4,808,100

As of June 30, 2015, the short-term loan payables consisted of ten loans which mature on dates ranging from August 5, 2015 through April 29, 2016 with interest rates ranging from 5.60% to 7.80%. The loans No. 6 and 10 were collateralized by Tianjuyuan’s land use right and building ownership right. The loan No. 8 was collateralized by Gufeng’s deposit. The loan No.7 was collateralized by Jinong’s land use right and Jinong’s credit. The loans No. 2 and 9 were guaranteed by Jinong’s credit. The loans No. 3, 4 and 5 were guaranteed by a bonding company in Zhongguancun Beijing, and counter guaranteed by Jinong’s credit. The loan No. 1 was guaranteed by Jinong and Tianjuyuan’s deposit.

No.	Payee	Loan period per agreement	Interest Rate			June 30, 2015
1	Beijing Bank – Pinggu Branch	Aug. 6, 2014 – Aug. 5, 2015		6.72	%	$	1,637,000
2	China Merchants Bank – Chaoyang Branch	Aug. 27, 2014 – Aug. 26, 2015		7.80	%		1,637,000
3	Beijing International Trust Co., Ltd	Sep. 24, 2014 – Sep. 23, 2015		7.80	%		1,637,000
4	Beijing International Trust Co., Ltd	Oct. 28, 2014 – Oct. 27, 2015		7.80	%		1,637,000
5	Beijing International Trust Co., Ltd	Dec. 26, 2014 – Dec. 15, 2015		7.28	%		1,637,000
6	Agriculture Bank of China-Pinggu Branch	Jan. 21, 2015 – Jan. 20, 2016		6.16	%		1,309,600
7	Tianjin Bank – Beijing Branch	Feb. 3, 2015 – Jan. 27, 2016		6.16	%		6,548,000
8	Tianjin Bank – Beijing Branch	Feb. 11, 2015 – Feb. 10, 2016		5.60	%		4,616,340
9	China Merchants Bank – Chaoyang Branch	Mar. 16, 2015 – Mar. 15, 2016		6.96	%		818,500
10	Agriculture Bank of China-Pinggu Branch	May 12, 2015 – Apr. 29, 2016		5.89	%		2,128,100
	Total					$	23,605,540

The interest expense from short-term loans were $943,413 and $1,179,617 for the nine months ended March 31, 2016 and 2015, respectively.

NOTE 9 – TAXES PAYABLE

Enterprise Income Tax

Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two year tax exemption and three year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, as a result of the expiration of its tax exemption on December 31, 2007. Accordingly, it made provision for income taxes for the nine months ended March 31, 2016 and 2015 of $2,701,887 and $3,581,931, respectively, which is mainly due to the operating income from Jinong. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $2,465,010 and $2,790,829 for the nine months ended March 31, 2016 and 2015, respectively.

13  

Value-Added Tax

All of the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “ Exemption of VAT for Organic Fertilizer Products ”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. On August 10, 2015 and August 28, 2015, the SAT released Notice #90. “ Reinstatement of VAT for Fertilizer Products ”, and Notice #97, “ Supplementary Reinstatement of VAT for Fertilizer Products ”, which restore the VAT of 13% of the gross sales price on certain fertilizer products starting from September 1, 2015, but granted tax payers a reduced rate of 3% from September 1, 2015 through June 30, 2016.

Income Taxes and Related Payables

Taxes payable consisted of the following:

	March 31,		June 30,
	2016		2015
VAT provision	$	48,938	$	27,251
Income tax payable		3,123,472		3,778,339
Other levies		677,902		698,952
Total	$	3,850,312	$	4,504,542

Tax Rate Reconciliation

Our effective tax rates were approximately 24.7% and 23.3% for the nine months ended March 31, 2016 and 2015, respectively. Substantially all of the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the nine months ended March 31, 2016 and 2015, as shown in the following tables:

March 31, 2016

	China					United States
	15% - 25%					34%					Total
Pretax income (loss)	$	24,931,875				$	(3,973,888	)			$	20,957,987
Expected income tax expense (benefit)		6,232,969		25	%		(1,351,122	)	34.0	%		4,881,847
High-tech income benefits on Jinong		(1,729,430	)	(6.94	)%		-		-			(1,729,430	)
Losses from subsidiaries in which no benefit is recognized		663,358		2.66	%		-		-			663,358
Change in valuation allowance on deferred tax asset from US tax benefit		-					1,351,122		(34.0	)%		1,351,122
Actual tax expense	$	5,166,897		21	%	$	-		-	%	$	3,061,993		24.7	%

14  

March 31, 2015

	China					United States
	15% - 25%					34%					Total
Pretax income (loss)	$	35,186,323				$	(7,472,676	)			$	27,713,647
Expected income tax expense (benefit)		8,796,581		25.0	%		(2,540,710	)	34.0	%		6,255,871
High-tech income benefits on Jinong		(2,305,732	)	(6.6	)%		-		-			(2,305,732	)
Losses from subsidiaries in which no benefit is recognized		(40,527	)	(0.1	)%		-		-			(40,527	)
Change in valuation allowance on deferred tax asset from US tax benefit		-					2,540,170		(34.0	)%		2,540,710
Actual tax expense	$	6,450,322		18.3	%	$	-		-%		$	6,540,322		23.3	%

NOTE 10 – STOCKHOLDERS’ EQUITY

Common Stock

On September 12, 2014, the Company’ Compensation Committee, approved the issuance of 87,719 shares of common stock to its ten employees under the Company’s Amended and Restated 2012 Employee Stock Purchase Plan for a cash contribution of a total of $200,000. The issuance is at the closing price $2.28 per share on September 11, 2014.

On September 30, 2014, the Company granted an aggregate of 1,750,000 shares of restricted stock under the 2009 Equity Incentive Plan (the “2009 Plan”) to certain executive officers, directors and employees, among which (i) 240,000 shares of restricted stock to Mr. Tao Li, the CEO; (ii) 100,000 shares of restricted stock to Mr. Ken Ren, the CFO, (iii) 40,000 shares of restricted stock to Mr. Yizhao Zhang, 30,000 shares of restricted stock to Ms. Yiru Shi, and 20,000 shares of restricted stock to Mr. Lianfu Liu, each an independent director of the Company; and (iv) 1,320,000 shares of restricted stock to key employees. The stock grants are subject to time-based vesting schedules, vesting in various installments until March 31, 2015 for the CFO and the three independent directors, until June 30, 2015 for the CEO and until December 31, 2016 for the employees. The value of the restricted stock awards was $3,675,000 and is based on the fair value of the Company’s common stock on the grant date. This amount is being amortized to compensation expense over the vesting periods for the various awards.

On September 28, 2015, the Company granted an aggregate of 1,000,000 shares of restricted stock under the 2009 Plan to certain key employees. The stock grants are subject to time-based vesting schedules, vesting in various installments until June 30, 2016. The value of the restricted stock awards was $1,660,000 and is based on the fair value of the Company’s common stock on the grant date. This amount is being amortized to compensation expense over the vesting periods for the various awards.

The following table sets forth changes in compensation-related restricted stock awards during nine months ended March 31, 2016:

							Grant Date
	Number of			Fair Value of			Fair Value
	Shares			Shares			Per share
Outstanding (unvested) at June 30, 2015		1,708,000		$	1,797,992
Granted		1,000,000			1,660,000		$	1.66
Forfeited		-			-
Vested		(1,716,000	)		(2,899,390	)
Outstanding (unvested) at March 31, 2016		992,000		$	558,602

As of March 31, 2016, the unamortized expense related to the grant of restricted shares of common stock of $558,602 will be amortized into expense through December 31, 2016. The fair value of the restricted common stock awards was based on the closing price of the Company’s common stock on the grant date. The fair value of the common stock awarded is amortized over the various vesting terms of each grant.

15  

Dividend

On October 1, 2014, the Company's Board of Directors declared a cash dividend of $0.10 per share to the Company's stockholders of common stock. The dividend payable represented a total payment to the stockholders of $3,296,156. The cash dividend of $2,161,904 was paid on January 30, 2015 to stockholders of record as of the close of business on the record date of October 31, 2014. Certain stockholders, including the Company’s Chairman, Mr. Li, elected to waive the dividend payment due to them and directed the Company to retain the funds for working capital purposes.

Preferred Stock

Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

As of March 31, 2016, the Company had 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding.

NOTE 11 –CONCENTRATIONS AND LITIGATION

Market Concentration

All of the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

Vendor and Customer Concentration

There was one vendor from which the Company purchased 14.2% of its raw materials for the three months ended March 31, 2016. Total purchase from this vendor amounted to $11,174,000 as of March 31, 2016.

There were three vendors from which the Company purchased 17.0%, 12.4% and 11.6% of its raw materials for the three months ended March 31, 2015. Total purchase from these three venders amounted to $9,322,106 as of March 31, 2015.

There was one customer accounted for 37.8% of the Company’s sales for the three months ended March 31, 2016.

There was one customer accounted over 28.0% of the total sales of fertilizer products as of three months ended March 31, 2015.

NOTE 12 – SEGMENT REPORTING

As of March 31, 2016, the Company was organized into three main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), and Yuxing (agricultural products production). Each of the three operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment.

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	Three months ended March 31,							Nine months ended March 31,
	2016			2015				2016			2015
Revenues from unaffiliated customers:							Revenues from unaffiliated customers:
Jinong	$	31,602,239		$	33,289,393		Jinong	$	97,612,604		$	98,946,251
Gufeng		43,762,058			45,022,730		Gufeng		85,576,564			82,787,611
Yuxing		3,274,177			1,175,092		Yuxing		6,599,577			3,106,317
Consolidated	$	78,638,474		$	79,487,215		Consolidated	$	189,788,745		$	184,840,179
Operating income :							Operating income :
Jinong	$	5,854,750		$	7,263,622		Jinong	$	17,509,024		$	23,322,997
Gufeng		4,805,591			6,999,283		Gufeng		10,468,423			12,126,494
Yuxing		543,855			125,021		Yuxing		1,461,365			535,592
Reconciling item (1)		0			0		Reconciling item (1)		0			0
Reconciling item (2)		(41,454	)		(381,644	)	Reconciling item (2)		(261,208	)		(1,338,332	)
Reconciling item (2)—stock compensation		(855,628	)		(1,081,125	)	Reconciling item (2)—stock compensation		(3,712,709	)		(4,150,995	)
Consolidated	$	10,307,114		$	12,925,157		Consolidated	$	25,464,895		$	30,495,756
Net income:							Net income:
Jinong	$	5,023,016		$	6,202,243		Jinong	$	15,023,381		$	19,849,731
Gufeng		3,577,278			5,048,243		Gufeng		7,247,542			8,223,840
Yuxing		548,559			128,397		Yuxing		1,467,943			646,347
Reconciling item (1)		0			80		Reconciling item (1)		29			122
Reconciling item (2)		(897,082	)		(1,462,769	)	Reconciling item (2)		(3,973,917	)		(5,489,327	)
Consolidated	$	8,251,771		$	9,916,194		Consolidated	$	19,764,978		$	23,230,713
Depreciation and Amortization:							Depreciation and Amortization:
Jinong	$	8,723,607		$	10,831,046		Jinong	$	28,015,696		$	32,319,450
Gufeng		747,160			840,225		Gufeng		2,221,221			2,539,935
Yuxing		328,956			349,952		Yuxing		1,008,697			1,043,518
Consolidated	$	9,799,723		$	12,021,223		Consolidated	$	31,245,614		$	35,902,903
Interest expense:							Interest expense:
Gufeng		211,734			363,958		Gufeng		943,413			1,179,617
Consolidated	$	211,734		$	363,958		Consolidated	$	943,413		$	1,179,617
Capital Expenditure:							Capital Expenditure:
Jinong	$	616		$	9,893		Jinong	$	7,259		$	9,232,410
Gufeng		1,962			544		Gufeng		1,962			13,578
Yuxing		938			27,630		Yuxing		7,387			397,823
Consolidated	$	3,516		$	38,067		Consolidated	$	16,608		$	9,643,811

17  

	As of			As of
	March 31,			June 30,
	2016			2015
Identifiable assets:
Jinong	$	200,739,190		$	219,259,401
Gufeng		152,211,833			165,267,975
Yuxing		46,902,443			44,745,889
Reconciling item (1)		50,921			312,198
Reconciling item (2)		(2,879	)		(2,845	)
Consolidated	$	399,901,508		$	348,728,342

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

18  

NOTE 13 - COMMITMENTS AND CONTINGENCIES

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 $3,797 (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 $480 (RMB 3,119).

Accordingly, the Company recorded an aggregate of $16,898 and $5,505 as rent expenses for the nine months ended March 31, 2016 and 2015, respectively. Rent expenses for the next five years ended March 31, are as follows:

Years ending March 31,
2017	$	16,896
2018		5,505
2019		5,505
2020		5,505
2021		5,505

NOTE 14 VARIABLE INTEREST ENTITIES

In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013.

The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly-owned subsidiary, Jinong, absorbs a majority of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

As a result of the VIE Agreements, Green Nevada is able to exercise control over Yuxing and is entitled to substantially all of the economic benefits of Yuxing through its subsidiary, Jinong. Therefore, Green Nevada consolidates Yuxing in accordance with ASC 810-10 (“Consolidation of Variable Interest Entities”) since the date of the VIE Agreements.

The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of March 31, 2016 and June 30, 2015:

	March 31		June 30,
	2016		2015
ASSETS
Current Assets
Cash and cash equivalents	$	235,350	$	79,867
Accounts receivable, net		135,092		72,748
Inventories		18,677,259		18,138,137
Other current assets		665,289		48,845
Advances to suppliers		3,222,535		61,739
Total Current Assets		22,935,525		18,401,336
Plant, Property and Equipment, Net		14,045,185		15,692,975
Construction In Progress		65,301		68,921
Intangible Assets, Net		9,856,432		10,582,657
Total Assets	$	46,902,443	$	44,745,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	280,490	$	159,730
Accrued expenses and other payables		311,108		222,871
Amount due to related parties		44,305,540		43,488,198
Total Current Liabilities		44,616,648		43,870,799
Stockholders' equity		2,285,795		875,090
Total Liabilities and Stockholders' Equity	$	46,902,443	$	44,745,889

	Three months ended March 31,				Nine months ended March 31,
	2016		2015		2016		2015
Revenue	$	3,274,177	$	1,175,092	$	6,599,577	$	3,106,317
Expenses		2,725,619		1,046,695		5,131,634		2,459,970
Net income (loss)	$	548,558	$	128,397	$	1,467,943	$	646,347

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those financial statements appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as the slow-down of the macro-economic environment in China and its impact on economic growth in general, the competition in the fertilizer industry and the impact of such competition on pricing, revenues and margins, the weather conditions in the areas where our customers are based, the cost of attracting and retaining highly skilled personnel, the prospects for future acquisitions, and the factors set forth elsewhere in this report, our actual results may differ materially from those anticipated in these forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will in fact occur. You should not place undue reliance on the forward-looking statements contained in this report.

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by U.S. federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Further, the information about our intentions contained in this report is a statement of our intention as of the date of this report and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, and our assumptions as of such date. We may change our intentions, at any time and without notice, based upon any changes in such factors, in our assumptions or otherwise.

Unless the context indicates otherwise, as used in the following discussion, “Company”, “we,” “us,” and “our,” refer to (i) China Green Agriculture, Inc. (“Green Nevada”), a corporation incorporated in the State of Nevada; (ii) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada incorporated in the State of New Jersey; (iii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iv) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) controlled by Jinong in the PRC; (v) Beijing Gufeng Chemical Products Co., Ltd. (“Gufeng”), a wholly-owned subsidiary of Jinong in the PRC, and (vi) Beijing Tianjuyuan Fertilizer Co., Ltd. (“Tianjuyuan”), a wholly-owned subsidiary of Gufeng in the PRC. 

Unless the context otherwise requires, all references to (i) “PRC” and “China” are to the People’s Republic of China; (ii) “U.S. dollar,” “$” and “US$” are to United States dollars; and (iii) “RMB”, “Yuan” and Renminbi are to the currency of the PRC or China.

Overview

We are engaged in the research, development, production and sale of various types of fertilizers and agricultural products in the PRC through our wholly-owned Chinese subsidiaries, Jinong and Gufeng (including Gufeng’s subsidiary Tianjuyuan), and our VIE, Yuxing. Our primary business is fertilizer products, specifically humic-acid based compound fertilizer produced by Jinong and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizer, highly-concentrated water-soluble fertilizer and mixed organic-inorganic compound fertilizer produced by Gufeng. In addition, through Yuxing, we develop and produce various agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings. For financial reporting purposes, our operations are organized into three business segments: fertilizer products (Jinong), fertilizer products (Gufeng) and agricultural products (Yuxing).

Fertilizer Products

The fertilizer business conducted by Jinong and Gufeng generated approximately 96.5% and 98.5% of our total revenues for the nine months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, we had developed and produced a total of 462 different fertilizer products in use, of which 130 were developed and produced by Jinong and 332 by Gufeng.

20  

Below is a table that shows the metric tons of fertilizer sold by Jinong and Gufeng and the revenue per ton for the periods indicated:

	Three Months Ended March 31,				Change 2015 to 2016
	2016		2015		Amount			%
	(metric tons)
Jinong		8,932		15,147		(6,215	)		(41	)%
Gufeng		121,668		103,135		18,533			18	%
		130,600		118,282		12,318			10.4	%
	Three Months Ended March 31,
	2016		2015
	(revenue per ton)
Jinong	$	3,538	$	2,198
Gufeng		360		437
	Nine Months Ended March 31,				Change 2015 to 2016
	2016		2015		Amount			%
	(metric tons)
Jinong		28,535		60,374		(31,839	)		(52.7	)%
Gufeng		230,065		179,291		50,774			28.3	%
		258,600		239,665		18,935			7.9	%
	Nine Months Ended March 31,
	2016		2015
	(revenue per ton)
Jinong	$	3,420	$	1,639
Gufeng		372		462

For the three months ended March 31, 2016, we sold approximately 130,600 metric tons of fertilizer products, as compared to 118,282 metric tons for the three months ended March 31, 2015. For the three months ended March 31, 2016, Jinong sold approximately 8,932 metric tons of fertilizer products, as compared to 15,147 metric tons for the three months ended March 31, 2015. The decrease was due to Jinong’s implementation of its new sales strategy that focuses on producing high-margin liquid fertilizer during the last three months. For the three months ended March 31, 2016, Gufeng sold approximately 121,668 metric tons of fertilizer products, as compared to 103,135 metric tons for the three months ended March 31, 2015. The increase was mainly attributable to the expanding of Gufeng’s marketing strategy.

For the nine months ended March 31, 2016, we sold approximately 258,600 metric tons of fertilizer products, as compared to 239,665 metric tons for the nine months ended March 31, 2015. For the nine months ended March 31, 2016, Jinong sold approximately 28,535 metric tons of fertilizer products, as compared to 60,374 metric tons for the nine months ended March 31, 2015. The decrease was due to Jinong’s implementation of its new sales strategy that focuses on producing high-margin liquid fertilizer during the last nine months. For the nine months ended March 31, 2016, Gufeng sold approximately 230,065 metric tons of fertilizer products, as compared to 179,291 metric tons for the nine months ended March 31, 2015.  The increase was mainly attributable to the expanding of Gufeng’s marketing strategy.

Our sales of fertilizer products to five provinces accounted for approximately 62.7% of our fertilizer revenue for the three months ended March 31, 2016.   Specifically, the provinces and their respective percentage contributed to our fertilizer revenues were: Beijing (39.3%), Shaanxi (8.8%), Hebei (7.5%), Heilongjiang (3.9%), and Liaoning (3.2%).

21  

As of March 31, 2016, we had a total of 1,363 distributors covering 27 provinces, four autonomous regions and three central government-controlled municipalities in China. Jinong had 1,064 distributors in China. Jinong’s sales are not dependent on any single distributor or any group of distributors. Jinong’s top five distributors accounted for 1.6% of its fertilizer revenues for the three months ended March 31, 2016. Gufeng had 299 distributors, including some large state-owned enterprises. Gufeng’s top five distributors accounted for 84.1% of its revenues for the three months ended March 31, 2016.

Agricultural Products

Through Yuxing, we develop, produce and sell high-quality flowers, green vegetables and fruits to local marketplaces and various horticulture and planting companies. We also use certain of Yuxing’s greenhouse facilities to conduct research and development activities for our fertilizer products. The three PRC provinces that accounted for 80.1% of our agricultural products revenue for the three months ended March 31, 2016 were Shaanxi (72.1%), Gansu (4.1%), and Shanghai (3.6%).     

Recent Developments

New Products and Distributors

During the three months ended March 31, 2016, Jinong launched one new fertilizer product which generated approximately $3,088 for the three months ended March 31, 2016. Jinong added 20 new distributors, which accounted for approximately$118,316 for the three months ended March 31, 2016.

During the three months ended March 31, 2016, Gufeng added nine new distributors, which accounted for approximately $158,978.

Results of Operations

Three months ended March 31, 2016 Compared to the Three months ended March 31, 2015.

22  

	Three Months Ended  March 31
	2016			2015			Change			%
Sales
Jinong	$	31,602,239		$	33,289,393		$	(1,687,154	)		-5.1	%
Gufeng		43,762,058			45,022,730			(1,260,672	)		-2.8	%
Yuxing		3,274,177			1,175,092			2,099,085			178.6	%
Net sales		78,638,474			79,487,215			(848,741	)		-1.1	%
Cost of goods sold								-
Jinong		13,353,222			13,623,964			(270,742	)		-2.0	%
Gufeng		38,109,311			36,814,676			1,294,635			3.5	%
Yuxing		2,441,652			858,058			1,583,594			184.6	%
Cost of goods sold		53,904,185			51,296,698			2,607,487			5.1	%
Gross profit		24,734,289			28,190,517			(3,456,228	)		-12.3	%
Operating expenses								-
Selling expenses		3,441,511			2,054,025			1,387,486			67.5	%
Selling expenses - amortization of deferred asset		8,780,893			10,604,586			(1,823,693	)		-17.2	%
General and administrative expenses		2,204,771			2,606,749			(401,978	)		-15.4	%
Total operating expenses		14,427,175			15,265,360			(838,185	)		-5.5	%
Income from operations		10,307,114			12,925,157			(2,618,043	)		-20.3	%
Other income (expense)								-
Other income (expense)		(2,473	)		10,651			(13,124	)		-123.2	%
Interest income		263,768			161,625			102,143			63.2	%
Interest expense		(211,734	)		(363,958	)		152,224			-41.8	%
Total other income (expense)		49,561			(191,682	)		241,243			-125.9	%
Income before income taxes		10,356,675			12,733,475			(2,376,800	)		-18.7	%
Provision for income taxes		2,104,904			2,817,281			(712,377	)		-25.3	%
Net income		8,251,771			9,916,194			(1,664,423	)		-16.8	%
Other comprehensive income (loss)								-
Foreign currency translation gain (loss)		2,722,073			1,534,901			1,187,172			77.3	%
Comprehensive income (loss)	$	10,973,844		$	11,451,095		$	(477,251	)		-4.2	%
								-
Basic weighted average shares outstanding		36,962,166			34,783,456			2,178,710			6.3	%
Basic net earnings per share	$	0.22		$	0.29		$	(0.06	)		-21.7	%
Diluted weighted average shares outstanding		36,962,166			34,783,456			2,178,710			6.3	%
Diluted net earnings per share		0.22			0.29			(0.06	)		-21.7	%

Net Sales

Total net sales for the three months ended March 31, 2016 were $78,638,474, a decrease of $848,741, or 1.1%, from $79,487,215 for the three months ended March 31, 2015. This decrease was due to decrease in Gufeng’s and Jinong’s net sales.

For the three months ended March 31, 2016, Jinong’s net sales decreased $1,687,154, or 5.1%, to $31,602,239 from $33,289,393 for the three months ended March 31, 2015. This decrease was mainly attributable to the decrease in Jinong’s sales volume during the three months ended March 31, 2016.

23  

For the three months ended March 31, 2016, net sales at Gufeng were $43,762,058, a decrease of $1,260,672, or 2.8% from $45,022,731 for the three months ended March 31, 2015. This decrease was mainly attributable to Gufeng’s lowering selling prices to answer to market demand during the three months ended March 31, 2016.

For the three months ended March 31, 2016, Yuxing’s net sales were $3,274,177, an increase of $2,099,085 or 178.6%, from $1,175,092 during the three months ended March 31, 2015. The increase was mainly attributable to the increase in market demand on Yuxing’s top grade flowers during the last three months.

Cost of Goods Sold

Total cost of goods sold for the three months ended March 31, 2016 was $53,904,185, an increase of $2,607,487, or 5.1%, from $51,296,698 for the three months ended March 31, 2015. This increase was mainly due to higher raw material cost and packaging cost.  

Cost of goods sold by Jinong for the three months ended March 31, 2016 was $13,353,222, a decrease of $270,742, or 2.0%, from $13,623,964 for the three months ended March 31, 2015. The decrease in cost of goods was primarily caused by Jinong’s lower net sales.

Cost of goods sold by Gufeng for the three months ended March 31, 2016 was $36,814,676, an increase of $5,555,791, or 17.8%, from $36,814,676 for the three months ended March 31, 2015. This increase was primarily attributable to an increase in the cost of raw materials. 

For the three months ended March 31, 2016, cost of goods sold by Yuxing was $2,441,652, an increase of $1,583,594, or 184.6%, from $858,058 for the three months ended March 31, 2015. This increase was mainly due to the significant increase in Yuxing’s net sales. 

Gross Profit

Total gross profit for the three months ended March 31, 2016 decreased by $3,456,228, or 12.3% to $2,441,652, as compared to $28,190,517 for the three months ended March 31, 2015. Gross profit margin was 31.5% and 35.5% for the three months ended March 31, 2016 and 2015, respectively.

Gross profit generated by Jinong decreased by $1,416,412, or 7.2%, to $18,249,017 for the three months ended March 31, 2016 from $19,655,429 for the three months ended March 31, 2015. Gross profit margin from Jinong’s sales was approximately 57.7% and 59.1% for the three months ended March 31, 2016 and 2015, respectively. The decrease in gross profit margin was mainly due to the increase in product costs.

For the three months ended March 31, 2016, gross profit generated by Gufeng was $5,652,747, decrease of $2,555,307, or 31.1%, from $8,208,054 for the three months ended March 31, 2015. Gross profit margin from Gufeng’s sales was approximately 12.9% and 18.2% for the three months ended March 31, 2016 and 2015, respectively. The decrease in gross profit percentage was mainly due to the increased weight for lower-margin products sales in Gufeng’s total sales answering to market demand.

For the three months ended March 31, 2016, gross profit generated by Yuxing was $832,525, an increase of $515,491, or 162.6% from $317,034 for the three months ended March 31, 2015.  The gross profit margin was approximately 25.4% and 27.0% for the three months ended March 31, 2016 and 2015, respectively. The decrease in gross profit margin was mainly due to an increase in the cost of raw materials for the three months ended March 31, 2016, compared to the same period in 2015.

Selling Expenses

Our selling expenses consisted primarily of salaries of sales personnel, advertising and promotion expenses, freight-out costs and related compensation. Selling expenses were $3,441,511, or 4.4%, of net sales for the three months ended March 31, 2016, as compared to $2,054,025 or 2.6% of net sales for the three months ended March 31, 2015, an increase of $1,387,486, or 67.5%. The selling expenses of Yuxing were $47,110 or 1.4% of Yuxing’s net sales for the three months ended March 31, 2016, as compared to $11,615 or 1.0% of Yuxing’s net sales for the three months ended March 31, 2015. The selling expenses of Gufeng were $186,626 or 0.4% of Gufeng’s net sales for the three months ended March 31, 2016, as compared to $435,347 or 1.0% of Gufeng’s net sales for the three months ended March 31, 2015. The selling expenses of Jinong for the three months ended March 31, 2016 were $3,207,775 or 10.2% of Jinong’s net sales, as compared to selling expenses of $1,607,063 or 4.8% of Jinong’s net sales for the three months ended March 31, 2015. The increase in Jinong’s selling expenses was due to Jinong’s expanded marketing efforts and the increase in shipping costs.

24  

Selling Expenses – amortization of deferred assets

Our selling expenses - amortization of our deferred assets were $8,780,893, or 11.2%, of net sales for the three months ended March 31, 2016, as compared to $10,604,586, or 13.3% of net sales for the three months ended March 31, 2015, a decrease of $1,823,693, or 17.2%. This decrease was due to the fact that some of the deferred assets were fully amortized and therefore no amortization was recorded on the fully amortized assets during the three months ended March 31, 2016.  

General and Administrative Expenses

General and administrative expenses consisted primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigations. General and administrative expenses were $2,204,771, or 2.8% of net sales for the three months ended March 31, 2016, as compared to $2,606,749, or 3.3% of net sales for the three months ended March 31, 2015, a decrease of $401,978, or 15.4%. The decrease in general and administrative expenses was mainly due to the related expenses in the stock compensation awarded to the employees which amounted to $580,388 for the three months ended March 31, 2016 as compared to $1,081,125 for the three months ended March 31, 2015.

Total Other Income (Expenses)

Total other expenses consisted of income from subsidies received from the PRC government, interest income, interest expenses and bank charges. The total other income for the three months ended March 31, 2016 was $49,561, as compared to total other expense of $191,682 for the three months ended March 31, 2015. Interest income during the three months ended March 31, 2016 was $263,768, as compared to $161,625 during the three months ended March 31, 2015, an increase of $102,143 or 63.2%. This increase was due to the increased deposit in the banks. Interest expenses during the three months ended March 31, 2016 was $211,734, as compared to $363,958 during the three months ended March 31, 2015, a decrease of $152,224 or 41.8%. This decrease is due to a lesser amount of short term loans outstanding in 2016 as compared to 2015.

Income Taxes

Jinong is subject to a preferred tax rate of 15% as a result of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law (“EIT”) that became effective on January 1, 2008. Jinong incurred income tax expenses of $896,220 for the three months ended March 31, 2016, as compared to $1,119,876 for the three months ended March 31, 2015, a decrease of $223,656, or 20.0%.

Gufeng, subject to a tax rate of 25%, incurred income tax expenses of $1,208,685 for the three months ended March 31, 2016, as compared to $1,697,405 for the three months ended March 31, 2015, a decrease of $488,720, or 28.8%.

Yuxing has no income tax for the three months ended March 31, 2016 as a result of being exempted from paying income tax due to the fact its products fall into the tax exemption list set out in the EIT.

Net Income

Net income for the three months ended March 31, 2016 was $8,251,771, a decrease of $1,664,423, or 16.8%, compared to $9,916,194 for the three months ended March 31, 2015. The decrease was attributable to the increased selling expenses and lower net sales in the quarter ended March 31, 2016. Net income as a percentage of total net sales was approximately 10.5% and 12.5% for the three months ended March 31, 2016 and 2015, respectively.

25  

Nine months ended March 31, 2016 Compared to the Nine months ended March 31, 2015.

	Nine Months Ended March 31,
	2016			2015			Change			%
Sales
Jinong	$	97,612,604		$	98,946,251		$	(1,333,647	)		-1.3	%
Gufeng		85,576,564			82,787,611			2,788,953			3.4	%
Yuxing		6,599,577			3,106,317			3,493,260			112.5	%
Net sales		189,788,745			184,840,179			4,948,566			2.7	%
Cost of goods sold								-
Jinong		41,328,293			39,318,627			2,009,666			5.1	%
Gufeng		72,567,833			67,448,840			5,118,993			7.6	%
Yuxing		4,334,600			2,298,767			2,035,833			88.6	%
Cost of goods sold		118,230,726			109,066,234			9,164,492			8.4	%
Gross profit		71,558,019			75,773,945			(4,215,926	)		-5.6	%
Operating expenses								-
Selling expenses		11,070,369			4,770,727			6,299,642			132.0	%
Selling expenses - amortization of deferred asset		27,158,360			31,587,102			(4,428,742	)		-14.0	%
General and administrative expenses		7,864,395			8,920,360			(1,055,965	)		-11.8	%
Total operating expenses		46,093,124			45,278,189			814,935			1.8	%
Income from operations		25,464,895			30,495,756			(5,030,861	)		-16.5	%
Other income (expense)								-
Other income (expense)		(6,307	)		57,355			(63,662	)		-111.0	%
Interest income		416,700			229,979			186,721			81.2	%
Interest expense		(943,413	)		(1,179,617	)		236,204			-20.0	%
Total other income (expense)		(533,020	)		(892,283	)		359,263			-40.3	%
Income before income taxes		24,931,875			29,603,473			(4,671,598	)		-15.8	%
Provision for income taxes		5,166,897			6,372,760			(1,205,863	)		-18.9	%
Net income		19,764,978			23,230,713			(3,465,735	)		-14.9	%
Other comprehensive income (loss)								-
Foreign currency translation gain (loss)		(20,006,295	)		2,161,055			(22,167,350	)		-1025.8	%
Comprehensive income (loss)	$	(241,317	)	$	25,391,768		$	(25,633,085	)		-101.0	%
								-
Basic weighted average shares outstanding		36,610,131			33,471,214			3,138,917			9.4	%
Basic net earnings per share	$	0.54		$	0.69		$	(0.15	)		-22.2	%
Diluted weighted average shares outstanding		36,610,131			33,471,214			3,138,917			9.4	%
Diluted net earnings per share		0.54			0.69			(0.15	)		-22.2	%

Net Sales

Total net sales for the nine months ended March 31, 2016 were $189,788,745, an increase of $4,948,566 or 2.7%, from $184,840,179 for the nine months ended March 31, 2015. This increase was largely due to the increase in Gufeng’s and Yuxing’s net sales.

26  

For the nine months ended March 31, 2016, Jinong’s net sales decreased by $1,333,647, or 1.3%, to $97,612,604 from $98,946,250 for the nine months ended March 31, 2015. This decrease was mainly attributable to the decrease in Jinong’s sales volume during the nine months ended March 31, 2016.

For the nine months ended March 31, 2016, net sales at Gufeng were $85,576,564, an increase of $2,788,953, or 3.4%, from $82,787,612 for the nine months ended March 31, 2015. The increase was mainly attributable to Gufeng’s expanded marketing promotion strategy, especially one large amount sale to Sino-agri Group during the last nine months. 

For the nine months ended March 31, 2016, Yuxing’s net sales were $6,599,577, an increase of $3,493,260, or 112.5%, from $3,106,317 during the nine months ended March 31, 2015. The increase was mainly due to the increase in sales demand on Yuxing’s top-grade flowers during the last nine months. 

Cost of Goods Sold

Total cost of goods sold for the nine months ended March 31, 2016 was $118,230,726, an increase of $9,164,492, or 8.4%, from $109,066,234 for the nine months ended March 31, 2015. This increase was mainly due to the 2.7% increase in net sales and an increase in the cost of raw materials.  

Cost of goods sold by Jinong for the nine months ended March 31, 2016 was $41,328,293, an increase of $2,009,666, or 5.1%, from $39,318,627 for the nine months ended March 31, 2015. The increase was primarily attributable to its higher raw material cost.

Cost of goods sold by Gufeng for the nine months ended March 31, 2016 was $72,567,833, an increase of $5,118,993, or 7.6%, from $67,448,840 for the nine months ended March 31, 2015. This increase was primarily attributable to an increase in the cost of raw materials and an increase in the sales of fertilizer products.

For the nine months ended March 31, 2016, cost of goods sold by Yuxing was $4,334,600, an increase of $2,035,833, or 88.6%, from $2,298,767 for the nine months ended March 31, 2015. This increase was mainly due to the significant increase in Yuxing’s net sales. 

Gross Profit

Total gross profit for the nine months ended March 31, 2016 decreased by $4,215,926 to $71,558,019, as compared to $75,773,945 for the nine months ended March 31, 2015. Gross profit margin was 37.7% and 41.0% for the nine months ended March 31, 2016 and 2015, respectively.

Gross profit generated by Jinong decreased by $3,343,313, or 5.6%, to $56,284,311 for the nine months ended March 31, 2016 from $59,627,624 for the nine months ended March 31, 2015. Gross profit margin from Jinong’s sales was approximately 57.7% and 60.3% for the nine months ended March 31, 2016 and 2015, respectively. The decrease in gross profit margin was mainly due to higher raw material cost and packaging cost.  

For the nine months ended March 31, 2016, gross profit generated by Gufeng was $13,008,731, a decrease of $2,330,040, or 15.2%, from $15,338,771 for the nine months ended March 31, 2015. Gross profit margin from Gufeng’s sales was approximately 15.2% and 18.5% for the nine months ended March 31, 2016 and 2015, respectively. The decrease in gross profit percentage was mainly due to the increased weight for lower-margin products sales in Gufeng’s total sales answering to market demand.

For the nine months ended March 31, 2016, gross profit generated by Yuxing was $2,264,977, an increase of $1,457,427, or 180.5% from $807,550 for the nine months ended March 31, 2015.  The gross profit margin was approximately 34.3% and 26.0% for the nine months ended March 31, 2016 and 2015, respectively. This increase in gross profit percentage was mainly due to the higher priced top grade flowers that Yuxing sold during the nine months ended March 31, 2016, compared to the same period in 2015.

27  

Selling Expenses

Our selling expenses consisted primarily of salaries of sales personnel, advertising and promotion expenses, freight-out costs and related compensation. Selling expenses were $11,070,727, or 5.8%, of net sales for the nine months ended March 31, 2016, as compared to $4,770,727 or 2.6% of net sales for the nine months ended March 31, 2015, an increase of $6,299,642, or 132.0%. The selling expenses of Yuxing were $190,281 or 2.9% of Yuxing’s net sales for the nine months ended March 31, 2016, as compared to $32,688 or 1.1% of Yuxing’s net sales for the nine months ended March 31, 2015.The selling expenses of Gufeng were $450,283 or 0.5% of Gufeng’s net sales for the nine months ended March 31, 2016, as compared to $849,813 or 1.0% of Gufeng’s net sales for the nine months ended March 31, 2015. The selling expenses of Jinong for the nine months ended March 31, 2016 were $10,429,805 or 10.7% of Jinong’s net sales, as compared to selling expenses of $3,888,226 or 3.9% of Jinong’s net sales for the nine months ended March 31, 2015. The increase in Jinong’s selling expenses was due to Jinong’s expanded marketing efforts and the increase in shipping costs.

Selling Expenses – amortization of deferred assets

Our selling expenses - amortization of our deferred assets were $27,158,360, or 14.3%, of net sales for the nine months ended March 31, 2016, as compared to $31,587,102, or 17.1% of net sales for the nine months ended March 31, 2015, a decrease of $4,428,742, or 14.0%. This decrease was due to the fact that some of the deferred assets were fully amortized and therefore no amortization was recorded on the fully amortized assets during the nine months ended March 31, 2016.

General and Administrative Expenses

General and administrative expenses consisted primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigations. General and administrative expenses were $7,864,395, or 4.1% of net sales for the nine months ended March 31, 2016, as compared to $8,920,360, or 4.8%, of net sales for the nine months ended March 31, 2015, a decrease of $1,055,965, or 11.8%. The decrease in general and administrative expenses was mainly due to the decreased related expenses in the stock compensation awarded to the employees which amounted to $2,899,390 for the nine months ended March 31, 2016 as compared to $4,150,995 for the nine months ended March 31, 2015.

Total Other Expenses

Total other expenses consisted of income from subsidies received from the PRC government, interest income, interest expenses and bank charges. The total other expense for the nine months ended March 31, 2016 was $533,020, as compared to $892,283 for the nine months ended March 31, 2015, a decrease of $359,263, or 40.3%. Interest income during the nine months ended March 31, 2016 was $416,700, as compared to $229,979 during the nine months ended March 31, 2015, an increase of $186,721 or 81.2%. This increase was due to the increased deposit in the banks as a result of our increased net income. Interest expenses during the nine months ended March 31, 2016 was $943,413, as compared to $1,179,617 during the nine months ended March 31, 2015, an decrease of $236,204 or 20.0%. This decrease is due to lesser amount of short term loans as compared to 2015.

Income Taxes

Jinong is subject to a preferred tax rate of 15% as a result of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law (“EIT”) that became effective on January 1, 2008. Jinong incurred income tax expenses of $2,701,887 for the nine months ended March 31, 2016, as compared to $3,581,931 for the nine months ended March 31, 2015, a decrease of $880,044, or 24.6%.

Gufeng, subject to a tax rate of 25%, incurred income tax expenses of $2,465,010 for the nine months ended March 31, 2016, as compared to $2,790,829 for the nine months ended March 31, 2015, a decrease of $325,819, or 11.7%.

Yuxing has no income tax for the nine months ended March 31, 2016 as a result of being exempted from paying income tax due to its products fall into the tax exemption list set out in the EIT.

28  

Net Income

Net income for the nine months ended March 31, 2016 was $19,764,978, a decrease of $3,465,735, or 14.9%, compared to $23,230,713 for the nine months ended March 31, 2015. The decrease was attributable to the increase in net sales offset by an increase in selling expenses and the higher cost of good sold. Net income as a percentage of total net sales was approximately 10.4% and 12.6% for the nine months ended March 31, 2016 and 2015, respectively.

Discussion of Segment Profitability Measures

As of March 31, 2016, we were engaged in the following businesses: the production and sale of fertilizers through Jinong and Gufeng and the production and sale of high-quality agricultural products by Yuxing. For financial reporting purpose, our operations were organized into three main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production). Each of the segments has its own annual budget with regard to development, production and sales.

Each of the three operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) makes decisions with respect to resources allocation and performance assessment upon receiving financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems; however, net income by segment is the principal benchmark to measure profit or loss adopted by the CODM.

For Jinong, the net income decreased by $4,826,350 or 24.3% to $15,023,381 for the nine months ended March 31, 2016 from $19,849,731 for the nine months ended March 31, 2015. The decrease was principally due to the higher selling expenses.

For Gufeng, the net income decreased by $976,297 or 11.9% to $7,247,543 for the nine months ended March 31, 2016 from $8,223,840 for the nine months ended March 31, 2015. The decrease was principally due to the higher cost of good sold.

For Yuxing, the net income increased by $821,596 or 127.1% to $1,467,943 for the nine months ended March 31, 2016 from $646,347 for the nine months ended March 31, 2015. The increase was mainly due to the higher net sales and Yuxing’s more cost-efficient measures taken for the nine months ended March 31, 2016, compare to the same period a year before.

Liquidity and Capital Resources

Our principal sources of liquidity include cash from operations, borrowings from local commercial banks and net proceeds of offerings of our securities consummated in July 2009 and November/December 2009 (collectively the “Public Offerings”).

As of March 31, 2016, cash and cash equivalents were $90,470,157, a decrease of $2,512,407, or 2.7%, from $92,982,564 as of June 30, 2015.

We intend to use our working capital to acquire new businesses, upgrade production lines and complete Yuxing’s new greenhouse facilities for agriculture products located on 88 acres of land in Hu County, 18 kilometers southeast of Xi’an city. Our liquidity needs have generally consisted of working capital necessary to finance receivables, raw material and finished goods inventory. We believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions. However, if events or circumstances occur and we do not meet our operating plan as expected, we may be required to seek additional capital and/or to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives. Notwithstanding the foregoing, we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous, which may include additional debt and/or equity financings. There can be no assurance that any additional financing will be available on acceptable terms, if at all. Any equity financing may result in dilution to existing stockholders and any debt financing may include restrictive covenants.

29  

The following table sets forth a summary of our cash flows for the periods indicated: 

	Nine Months Ended March 31,
	2016			2015
Net cash provided by operating activities	$	19,886,347		$	57,917,370
Net cash used in investing activities		(16,608	)		(7,675,141	)
Net cash provided by financing activities		(17,493,160	)		(2,689,731	)
Effect of exchange rate change on cash and cash equivalents		(4,888,986	)		343,032
Net increase (decrease) in cash and cash equivalents		(2,512,407	)		47,895,530
Cash and cash equivalents, beginning balance		92,982,564			26,890,321
Cash and cash equivalents, ending balance	$	90,470,157		$	74,785,851

Operating Activities

Net cash provided by operating activities was $19,886,347 for the nine months ended March 31, 2016, a decrease of $38,031,023 compared to $57,917,370 for the nine months ended March 31, 2015. The decrease was mainly attributable to the decrease in net income, account receivable and advances to suppliers, and a decrease in taxes payable, offset by a decrease in inventories and customer deposits during the nine months ended March 31, 2016 as compared to the same period in 2015.

Investing Activities

Net cash used in investing activities for the nine months ended March 31, 2016 was $16,608, a decrease of $7,658,533, or 99.8% from $7,675,141 for the nine months ended March 31, 2015. Jinong assisted its distributors in marketing to expand its competitive product advantage and market share by advancing them $9,228,043 during the nine months ended March 31, 2015 compared to $0 during the nine months ended March 31, 2016.  In addition, during the nine months ended March 31, 2015, we received $1,968,670 from the payment on other receivables compared to $0 during the nine months ended March 31, 2016.

Financing Activities

Net cash used in financing activities for the nine months ended March 31, 2016 was $17,493,160, an increase of $14,803,429 or 550.4% compared to cash provided by financing activities of $2,689,731 for the nine months ended March 31, 2015. During the nine months ended March 31, 2016, we received $5,626,800 from the proceeds from loans and repaid loans of $23,319,960 compared to $19,702,970 of proceeds and $22,403,790 repayments during the nine months ended March 31, 2015.  In addition, during the nine months ended March 31, 2016, we did not have any proceeds from the sale of our common stock while we received proceeds of $1,872,593 from the sale of our common stock during the nine months ended March31, 2015.

As of March 31, 2016 and June 30, 2015, our loans payable were as follows:

	March 31, 2016		June 30, 2015
Short term loans payable:	$	4,808,100	$	23,605,540
Total	$	4,808,100	$	23,605,540

Accounts Receivable

We had accounts receivable of $74,730,414 as of March 31, 2016, as compared to $68,528,598 as of June 30, 2015, an increase of $6,201,816 or 9.0%, which is mainly attributable to Gufeng. As of March 31, 2016, Gufeng had accounts receivable of $7,292,866, an increase of $6,397,286, comparing to $895,580 as of June 30, 2015, which is mainly attributable to a large amount sale of approximately 5.7 million to Sino-argi Group during the first quarter of fiscal year of 2016 and this amount has not paid up as of March 31, 2016.

30  

Allowance for doubtful accounts in accounts receivable for the nine months ended March 31, 2016 was $508,314, an increase of $200,391 or 65.1% from $307,923 as of June 30, 2015. The allowance for doubtful accounts as a percentage of accounts receivable was 0.68% as of March 31, 2016 and 0.45% as of June 30, 2015. The increase in the allowance of doubtful accounts were mainly due to the increase in the balance of accounts receivables  and the gradual aging in the balance of historical outstanding receivables.

Deferred assets

We had deferred assets of $21,661,860 as of March 31, 2016, as compared to $51,527,209 as of June 30, 2015. We have been assisting our distributors in certain marketing efforts and developing standard stores to enhance our competitive advantages and market shares since December 31, 2013. Based on the cooperation agreements with our distributors, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years as long as the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the realization of contractual terms, the unamortized portion of the amount owed by the distributor has to be refunded to us immediately. The Company’s Chairman and CEO, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from the distributors.

Inventories

We had an inventory of $108,506,803 as of March 31, 2016, as compared to $101,302,947 as of June 30, 2015, an increase of $7,203,856, or 7.1%. The increase is mainly due to Gufeng’s $88,450,367 inventory as of March 31, 2016. Such seasonal increase was largely attributable to the preparatory replenishment of raw material at a lower price for the expected large production of fertilizer in the incoming season to meet the anticipated large orders, as well as the accumulation of finished fertilizer products in expecting a huge demand in the near future.

Advances to Suppliers

We had advances to suppliers of $37,331,983 as of March 31, 2016 as compared to $40,910,837 as of June 30, 2015, representing a decrease of $3,578,854 or 8.7%.The decrease in the amount of advances to suppliers is a result of Gufeng’s higher inventory level. Gufeng’s compound fertilizer business is seasonal, which may result in carrying significant amounts of inventory and seasonal variations in working capital. To ensure our ability to deliver compound fertilizer to the distributor timely prior to the planting season, we need to have sufficient raw material in stock to stabilize the production. To build up the inventory, we typically make advance payment to the suppliers to secure the supply of raw material of basic fertilizer. Our inventory level may fluctuate from time to time, depending how fast the raw material gets consumed and replenished during the production process, and how fast the finished goods get sold. The replenishment of raw material relies on the management’s estimate of numerous factors, including but not limited to, the raw material’s future price, and spot price along with their volatility, as well as the seasonal demand and future price of finished fertilizer products. Such estimate may not be accurate, and the purchase decision of raw materials based on the estimate can cause excessive inventories in slow sales and insufficient inventories in peak times.

Accounts Payable

We had accounts payable of $2,599,720 as of March 31, 2016 as compared to $2,372,130 as of June 30, 2015, representing an increase of $227,590, or 9.6%. The increase was mainly attributable to late payments on packing material caused by late receipt of invoices. 

Unearned Revenue (Customer Deposits)

We had unearned revenue of $5,380,817 as of March 31, 2016 as compared to $19,129,853 as of June 30, 2015, representing a decrease of $13,749,036, or 71.9%. This decrease was seasonal fluctuation and we expect to deliver products to our customers during the next three months at which time we will recognize the revenue.

31  

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See Note 2 to our consolidated financial statements, “Basis of Presentation and Summary of Significant Accounting Policies.” We believe that the following paragraphs reflect the most critical accounting policies that currently affect our financial condition and results of operations:

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

Revenue recognition

Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, we have no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discounts are normally not granted after products are delivered.

Cash and cash equivalents

For statement of cash flows purposes, we consider all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Accounts receivable

Our policy is to maintain reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Any accounts receivable of Jinong and Gufeng that is outstanding for more than 180 days will be accounted as allowance for bad debts, and any accounts receivable of Yuxing that is outstanding for more than 90 days will be accounted as allowance for bad debts.

32  

Deferred assets

Deferred assets represent amounts the Company advanced to the distributors in their marketing and stores development to expand our competitive advantage and market shares. Based on the cooperation agreements with our distributors, the amount owed by the distributors in certain marketing efforts and store development will be expensed over three years as long as the distributors are actively selling our products. If a distributor defaults, breaches, or terminates the agreement with us earlier than the realization the contractual terms, the unamortized portion of the amount owed by the distributor has to be refunded to us immediately. The Company’s Chairman and CEO, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from the distributors.  

Segment reporting

FASB ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

As of March 31, 2016, we were organized into three main business segments: Jinong (fertilizer production), Gufeng (fertilizer production) and Yuxing (agricultural products production).

33  

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Disclosures About Market Risk

We may be exposed to changes in financial market conditions in the normal course of business. Market risk generally represents the risk that losses may occur as a result of movements in interest rates and equity prices. We currently do not, in the normal course of business, use financial instruments that are subject to changes in financial market conditions.

Currency Fluctuations and Foreign Currency Risk

Substantially all of our revenues and expenses are denominated in RMB. However, we use U.S. dollar for financial reporting purposes. Conversion of RMB into foreign currencies is regulated by the People’s Bank of China through a unified floating exchange rate system. Although the PRC government has stated its intention to support the value of RMB, there can be no assurance that such exchange rate will not again become volatile or that RMB will not devalue significantly against U.S. dollar. Exchange rate fluctuations may adversely affect the value, in U.S. dollar terms, of our net assets and income derived from our operations in the PRC.

Our reporting currency is U.S. dollar. Except for U.S. holding companies, all of our consolidated revenues, consolidated costs and expenses, and our assets are denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between U.S. dollars and RMB. If RMB depreciates against U.S. dollar, the value of our RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated at the exchange rates as of the balance sheet dates, revenues and expenses are translated at the average exchange rates, and shareholders’ equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in determining other comprehensive income, a component of shareholders’ equity. As of March 31, 2016, our accumulated other comprehensive income was $11 million. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk. The value of RMB against U.S. dollar and other currencies is affected by, among other things, changes in the PRC’s political and economic conditions. In 2015, China’s currency dropped by a cumulative 5% against the U.S. dollar. The effect on trade can be substantial. It is difficult to predict how long such depreciation of RMB against the U.S. dollar may last. However, any significant depreciation in the exchange rates of the RMB against the U.S. dollar could adversely affect the value of any dividends paid by us to our shareholders, which would be funded by RMB but paid in U.S. dollars. There can be no assurance that any future movements in the exchange rate of the RMB against the U.S. dollar or other foreign currencies will not adversely affect our results of operations and financial condition (including our ability to pay dividends). Moreover, it is possible that, in the future, PRC authorities may lift restrictions on fluctuations in RMB exchange rate and lessen intervention in the foreign exchange market.

Interest Rate Risk

We deposit surplus funds with Chinese banks earning daily interest. We do not invest in any instruments for trading purposes. All of our outstanding debt instruments carry fixed rates of interests. The amount of short-term debt outstanding as of March 31, 2016 and June 30, 2015 was $4.8 million and $23.6 million, respectively. We are exposed to interest rate risk primarily with respect to our short-term bank loans. Although the interest rates, which are based on the banks’ prime rates with respect to our short-term loans, are fixed for the terms of the loans, the terms are typically three to twelve months for short-term bank loans and interest rates are subject to change upon renewal. There were no material changes in interest rates for short-term bank loans renewed during the three months ended March 31, 2016. The original loan term on average is one year, and the remaining average life of the short term-loans is approximately five months.

Management monitors the banks’ prime rates in conjunction with our cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered into any hedging transactions in an effort to reduce our exposure to interest rate risk.

Credit Risk

We have not experienced significant credit risk, as most of our customers are long-term customers with superior payment records. Our receivables are monitored regularly by our credit managers.

Inflation Risk

Inflationary factors such as increases in the cost of our products and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenues if the selling prices of our products do not increase with these increased costs.

 34

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

At the conclusion of the period ended March 31, 2016 we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, our CEO and CFO concluded that as of the end of the period covered by this Quarterly Report, our disclosure controls and procedures were effective and adequately designed to ensure that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that such information was accumulated and communicated to our management, including our CEO and CFO, in a manner that allowed for timely decisions regarding required disclosure.

(b) Changes in internal controls

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the quarter ended March 31, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 6. Exhibits

The exhibits required by this item are set forth in the Exhibit Index attached hereto.

 35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHINA GREEN AGRICULTURE, INC.
Date: May 13, 2016	By:	/s/ Tao Li
	Name:	Tao Li
	Title:	President and Chief Executive Officer
		(principal executive officer)
Date: May 13, 2016	By:	/s/ Ken Ren
	Name:	Ken Ren
	Title:	Chief Financial Officer
		(principal financial officer and principal accounting officer)

 36

EXHIBIT INDEX

No.	Description
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

 37

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Tao Li certify that:

1. I have reviewed this Quarterly Report on Form 10-Q (this “Report”) of China Green Agriculture, Inc.;

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this Report based on such evaluation; and

(d) Disclosed in this Report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 13, 2016

/s/ Tao Li

Name: Tao Li

Title: President and Chief Executive Officer

(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Ken Ren, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q (this “Report”) of China Green Agriculture, Inc.;

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this Report based on such evaluation; and

(d) Disclosed in this Report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 13, 2016

/s/ Ken Ren

Name: Ken Ren

Title: Chief Financial Officer

(principal financial officer and principal accounting officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, each in his capacity as an executive officer of China Green Agriculture, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

1. The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 as filed with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 13, 2016

/s/ Tao Li

Name: Tao Li

Title: President and Chief Executive Officer

(principal executive officer)

/s/ Ken Ren

Name: Ken Ren

Title: Chief Financial Officer

(principal financial officer and principal accounting officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Exchange Act, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Registrant Name	China Green Agriculture, Inc.
Entity Central Index Key	0000857949
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CGA
Entity Common Stock, Shares Outstanding		36,978,605

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Current Assets
Cash and cash equivalents	$ 90,470,157	$ 92,982,564
Accounts receivable, net	74,730,414	68,528,598
Amount due from related parties	613,452	0
Inventories	108,506,803	101,302,947
Prepaid expenses and other current assets	482,232	459,400
Advances to suppliers, net	37,331,983	40,910,837
Total Current Assets	312,135,041	304,184,346
Plant, Property and Equipment, Net	39,578,484	44,634,194
Other Receivables, Net of current portion	0	0
Deferred Asset, Net	21,661,860	51,527,209
Other Assets	122,353	185,480
Intangible Assets, Net	21,433,707	23,805,746
Goodwill	4,970,063	5,245,643
Total Assets	399,901,508	429,582,618
Current Liabilities
Accounts payable	2,599,720	2,372,130
Customer deposits	5,380,817	19,129,853
Accrued expenses and other payables	5,334,105	4,952,977
Amount due to related parties	2,206,144	2,068,102
Taxes payable	3,850,312	4,504,542
Short term loans	4,808,100	23,605,540
Total Current Liabilities	$ 24,179,198	$ 56,633,144
Commitment and Contingencies
Stockholders' Equity
Preferred Stock, $.001 par value, 20,000,000 shares authorized, zero shares issued and outstanding	$ 0	$ 0
Common stock, $.001 par value, 115,197,165 shares authorized, 36,978,605 and 35,905,198 shares issued and outstanding as of March 31, 2016 and June 30, 2015, respectively	36,978	35,905
Additional paid-in capital	126,373,464	123,360,384
Statutory reserve	26,708,547	25,030,688
Retained earnings	216,901,378	198,814,259
Accumulated other comprehensive income	5,701,943	25,708,238
Total Stockholders' Equity	375,722,310	372,949,474
Total Liabilities and Stockholders' Equity	$ 399,901,508	$ 429,582,618

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	115,197,165	115,197,165
Common stock, shares issued	36,978,605	35,905,198
Common stock, shares, outstanding	36,978,605	35,905,198

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Sales
Net sales	$ 78,638,474	$ 79,487,215	$ 189,788,745	$ 184,840,179
Cost of goods sold
Cost of goods sold	53,904,185	51,296,698	118,230,726	109,066,234
Gross profit	24,734,289	28,190,517	71,558,019	75,773,945
Operating expenses
Selling expenses	3,441,511	2,054,025	11,070,369	4,770,727
Selling expenses - amortization of deferred asset	8,780,893	10,604,586	27,158,360	31,587,102
General and administrative expenses	2,204,771	2,606,749	7,864,395	8,920,360
Total operating expenses	14,427,175	15,265,360	46,093,124	45,278,189
Income from operations	10,307,114	12,925,157	25,464,895	30,495,756
Other income (expense)
Other income (expense)	(2,473)	10,651	(6,307)	57,355
Interest income	263,768	161,625	416,700	229,979
Interest expense	(211,734)	(363,958)	(943,413)	(1,179,617)
Total other income (expense)	49,561	(191,682)	(533,020)	(892,283)
Income before income taxes	10,356,675	12,733,475	24,931,875	29,603,473
Provision for income taxes	2,104,904	2,817,281	5,166,897	6,372,760
Net income	8,251,771	9,916,194	19,764,978	23,230,713
Other comprehensive income (loss)
Foreign currency translation gain (loss)	2,722,073	1,534,901	(20,006,295)	2,161,055
Comprehensive income (loss)	$ 10,973,844	$ 11,451,095	$ (241,317)	$ 25,391,768
Basic weighted average shares outstanding (in shares)	36,962,166	34,783,456	36,610,131	33,471,214
Basic net earnings per share (in dollars per share)	$ 0.22	$ 0.29	$ 0.54	$ 0.69
Diluted weighted average shares outstanding (in shares)	36,962,166	34,783,456	36,610,131	33,471,214
Diluted net earnings per share (in dollars per share)	$ 0.22	$ 0.29	$ 0.54	$ 0.69
Jinong [Member]
Sales
Net sales	$ 31,602,239	$ 33,289,393	$ 97,612,604	$ 98,946,251
Cost of goods sold
Cost of goods sold	13,353,222	13,623,964	41,328,293	39,318,627
Operating expenses
Income from operations	5,854,750	7,263,622	17,509,024	23,322,997
Other income (expense)
Net income	5,023,016	6,202,243	15,023,381	19,849,731
Gufeng [Member]
Sales
Net sales	43,762,058	45,022,730	85,576,564	82,787,611
Cost of goods sold
Cost of goods sold	38,109,311	36,814,676	72,567,833	67,448,840
Operating expenses
Income from operations	4,805,591	6,999,283	10,468,423	12,126,494
Other income (expense)
Interest expense	(211,734)	(363,958)	(943,413)	(1,179,617)
Net income	3,577,278	5,048,243	7,247,542	8,223,840
Yuxing [Member]
Sales
Net sales	3,274,177	1,175,092	6,599,577	3,106,317
Cost of goods sold
Cost of goods sold	2,441,652	858,058	4,334,600	2,298,767
Operating expenses
Income from operations	543,855	125,021	1,461,365	535,592
Other income (expense)
Net income	$ 548,559	$ 128,397	$ 1,467,943	$ 646,347

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income	$ 19,764,978	$ 23,230,713
Adjustments to reconcile net income to net cash provided by operating activities
Issuance of common stock and stock options for compensation	3,014,153	4,344,098
Depreciation and amortization	31,245,614	35,902,903
Loss on disposal of property, plant and equipment	1,375	26,152
Changes in operating assets
Accounts receivable	(9,877,811)	17,421,141
Amount due from related parties	(618,198)	0
Other current assets	(52,579)	(122,023)
Inventories	(12,622,730)	(47,471,638)
Advances to suppliers	1,440,660	16,603,898
Other assets	53,797	(96,445)
Changes in operating liabilities
Accounts payable	343,579	938,026
Customer deposits	(12,842,647)	248,937
Tax payables	(420,814)	6,385,762
Accrued expenses and other payables	456,970	505,846
Amount due to related parties	0	0
Net cash provided by operating activities	19,886,347	57,917,370
Cash flows from investing activities
Purchase of plant, property, and equipment	(16,608)	(415,768)
Proceeds from other receivables	0	1,968,670
Deferred assets	0	(9,228,043)
Net cash used in investing activities	(16,608)	(7,675,141)
Cash flows from financing activities
Proceeds from the sale of common stock	0	1,872,593
Proceeds from loans	5,626,800	19,702,970
Repayment of loans	(23,319,960)	(22,403,790)
Payment of dividends	0	(2,161,904)
Advance from related party	200,000	300,400
Net cash used in financing activities	(17,493,160)	(2,689,731)
Effect of exchange rate change on cash and cash equivalents	(4,888,986)	343,032
Net increase in cash and cash equivalents	(2,512,407)	47,895,530
Cash and cash equivalents, beginning balance	92,982,564	26,890,321
Cash and cash equivalents, ending balance	90,470,157	74,785,851
Supplement disclosure of cash flow information
Interest expense paid	943,413	1,179,637
Income taxes paid	$ 583,304	$ 836,913

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ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Nature of Operations [Text Block]

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

China Green Agriculture, Inc. (the “Company”, “Parent Company” or “Green Nevada”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production and distribution of agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings.

Unless the context indicates otherwise, as used in the notes to the financial statements of the Company, the following are the references herein of all the subsidiaries of the Company (i) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada incorporated in the State of New Jersey; (ii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iii) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a Variable Interest Entity (“VIE”) in the PRC controlled by Jinong through contractual agreements; (iv) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), and (v) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”).

The Company’s corporate structure as of March 31, 2016 is set forth in the diagram below:

The unaudited consolidated financial statements were prepared by Company pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) were omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K. The results for the nine months ended March 31, 2016, are not necessarily indicative of the results to be expected for the year ending June 30, 2016.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan and VIE Yuxing. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Cash and cash equivalents and concentration of cash

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the People’s Republic of China (“PRC”) and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in two banks in China. The aggregate cash in such accounts and on hand as of March 31, 2016 and June 30, 2015 was $90,470,157 and $92,982,564, respectively. There is no insurance securing these deposits in China over $77,000 (RMB 500,000). In addition, the Company also had $47,972 and $306,376 in cash in two banks in the United States as of March 31, 2016 and June 30, 2015, respectively, with $500,000 secured by the U.S. Federal Deposit Insurance Corporation. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

Deferred assets

Deferred assets represent amounts that the distributors owed to the Company in their marketing efforts and developing standard stores to expand the competitiveness and market shares of the Company’s products . The amount owed to the Company will be expensed over three years which is the term as stated in the cooperation agreement, as long as the distributors are actively selling the Company’s products. For the nine months ended March 31, 2016 and 2015, the Company amortized $31,245,614 and $35,902,903, respectively of the deferred assets. If a distributor breaches, defaults, or terminates the agreement with the Company within the three-year period, the outstanding unamortized portion of the amount owed will become payable to the Company immediately. The Company’s Chairman, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from distributors.

The deferred assets consist of items inside the distributors’ stores such as furniture, racks, cabinets, and display units, and items outside or attached to the distributors’ stores such as signage and billboards. These types of assets would be capitalized as fixed assets if the Company actually owned the stores or utilized the assets for its own operations. These assets would also be capitalized as leasehold improvements if the Company leased these stores from the distributors. Therefore, the Company believes that under the U.S. Generally Accepted Accounting Principles (G.A.A.P), these types of assets purchases are properly capitalized. In addition, the Company believes that these assets are properly classified as deferred assets because if a distributor breaches, defaults, or terminates the agreement with the Company within a three-year period, a proportionate amount expended by the Company is to be repaid by the distributor. The Chairman of the Board of Directors of the Company guaranteed to the Company of amounts remaining unpaid due from distributors.

The assets inside the distributors’ stores are custom made to fit the layout of each individual store and the signage and billboards are also custom designed to fit the specific location. The assets were purchased by the Company directly from the manufacturers and installed in the distributors’ stores. The Company wants to maintain control over the quality of the items being purchased as well as making them uniform among all the distributor locations.

Earnings per share

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share consist of the following:

	Nine Months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	19,764,978	$	13,314,519
Basic Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Basic	$	0.54	$	0.41
Net Income for Diluted Earnings Per Share	$	19,764,978	$	13,314,519
Diluted Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Diluted	$	0.54	$	0.41

	Three months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	8,251,771	$	9,916,194
Basic Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Basic	$	0.22	$	0.29
Net Income for Diluted Earnings Per Share	$	8,251,771	$	9,916,194
Diluted Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Diluted	$	0.22	$	0.29

Reclassification

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2015 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported.

Recent accounting pronouncements

FASB Accounting Standards Update No. 2014-09

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) , which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard beginning January 1, 2017.

FASB Accounting Standards Update No. 2015-01

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement – Extraordinary and Unusual items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01).  The amendment eliminates from U.S. GAAP the concept of extraordinary items.  This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted and allows the Company to apply the amendment prospectively or retrospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

FASB Accounting Standards Update No. 2015-02

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This amendment provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning December 15, 2015. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted.

FASB Accounting Standards Update No. 2015-14

In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment defers the effective date of ASU No. 2014-09 for all entities for one year. The guidance in ASU 2014-09 will now apply to public business entities, certain not-for-profit entities, and certain employee benefit plans from annual reporting periods beginning December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods after December 31, 2016, including interim reporting periods with that reporting period.

FASB Accounting Standards Update No. 2015-16

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). ASU No. 2015-16 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The adoption of ASU 2015-016 is not expected to have a material effect on the Company’s consolidated financial statements.

In November 2015, FASB issued ASU No. 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes  (“ASU 2015-17”). The amendments in this update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of the guidance is not expected to have significant impact on the Group’s consolidated financial statements.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

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INVENTORIES

9 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 3 – INVENTORIES

Inventories consisted of the following:

	March 31,		June 30,
	2016		2015
Raw materials	$	77,093,013	$	48,294,614
Supplies and packing materials	$	618,972	$	529,398
Work in progress	$	420,671	$	348,670
Finished goods	$	30,374,147	$	52,130,265
Total	$	108,506,803	$	101,302,947

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PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	March 31,		June 30,
	2016		2015
Building and improvements	$	41,979,732	$	43,699,066
Auto		603,230		900,562
Machinery and equipment		21,620,797		23,173,209
Agriculture assets		789,395		833,165
Total property, plant and equipment		64,993,155		68,606,002
Less: accumulated depreciation		(25,414,671)		(23,971,808)
Total	$	39,578,484	$	44,634,194

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INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5 - INTANGIBLE ASSETS

Intangible assets consisted of the following:

	March 31,		June 30,
	2016		2015
Land use rights, net	$	10,760,822	$	11,554,776
Technology patent, net		59,455		251,008
Customer relationships, net		4,300,860		5,337,372
Trademarks		6,312,570		6,662,590
Total	$	21,433,707	$	23,805,746

LAND USE RIGHT

On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB73,184,895 (or $11,350,977). The intangible asset is being amortized over the grant period of 50 years using the straight line method.

On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1,045,950 (or $162,227). The intangible asset is being amortized over the grant period of 50 years using the straight line method.

On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land & Resources Bureau of Yangling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB7,285,099 (or $1,129,919). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consisted of the following:

	March 31,			June 30,
	2016			2015
Land use rights	$	12,643,123		$	13,344,160
Less: accumulated amortization		(1,882,301)	)		(1,789,384)
Total land use rights, net	$	10,760,822		$	11,554,776

TECHNOLOGY PATENT

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired technology patent was estimated to be RMB 9,200,000 (or $1,426,920) and is amortized over the remaining useful life of six years using the straight line method.

The technology know-how consisted of the following:

	March 31,			June 30,
	2016			2015
Technology know-how	$	2,338,143		$	2,467,789
Less: accumulated amortization		(2,278,688)	)		(2,216,781)
Total technology know-how, net	$	59,455		$	251,008

CUSTOMER RELATIONSHIP

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $10,081,500) and is amortized over the remaining useful life of ten years.

	March 31,			June 30,
	2016			2015
Customer relationships	$	10,081,500		$	10,640,500
Less: accumulated amortization		(5,780,640)	)		(5,303,128)
Total customer relationships, net	$	4,300,860		$	5,337,372

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be RMB40,700,000 (or $6,312,570) and is subject to an annual impairment test.

AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next five twelve months periods ended March 31, 2016, are as follows:

AMORTIZATION TABLE
Year Ends	Expense ($)
March 31, 2016		1,320,467
March 31, 2017		1,261,012
March 31, 2018		1,261,012
March 31, 2019		1,261,012
March 31, 2020		504,899

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ACCRUED EXPENSES AND OTHER PAYABLES

9 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Accrued Expenses and Other Payables Disclosure [Text Block]

NOTE 6 - ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consisted of the following:

	March 31,		June 30,
	2016		2015
Payroll payable	$	8,647	$	18,451
Welfare payable		159,232		168,061
Accrued expenses		4,058,550		3,554,733
Other payables		977,911		1,098,705
Other levy payable		129,765		113,027
Total	$	5,334,105	$	4,952,977

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RELATED PARTIES TRANSACTIONS

9 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 7 - RELATED PARTIES TRANSACTIONS

As of March 31, 2016 and June 30, 2015, the amount due from related parties was $613,452 and $0, respectively.  As of March 31, 2016, $613,452 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 December 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 25,500,000 (approximately $3,955,050). For the nine months ended March 31, 2016, Yuxing has sold approximately $613,452 products to 900LH.com.

As of March 31, 2016 and June 30, 2015, the amount due to related parties was $2,206,144 and $2,068,102, respectively.  As of March 31, 2016 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 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 $3,797).

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LOAN PAYABLES

9 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Short-term Debt [Text Block]

NOTE 8- LOAN PAYABLES

As of March 31, 2016, the short-term loan payables consisted of three loans which mature on dates ranging from April 29, 2016 through January 17, 2017 with interest rates ranging from 5.00% to 5.82%. The loans No. 1 and 3 below are collateralized by Tianjuyan’s land use right and building ownership right. The loans No. 2 is guaranteed by Jinong’s credit.

 

No.	Payee	Loan Period per agreement	Interest Rate			March 31, 2016
1	Agriculture Bank of China-Pinggu Branch	May 12, 2015 – Apr. 29, 2016		5.80	%	$	2,016,300
2	Bank of Tianjin- Beijing Branch	Aug. 11, 2015 – Aug. 2, 2016		5.82	%		1,551,000
3	Agriculture Bank of China-Pinggu Branch	Jan. 19, 2016 – Jan. 17, 2017		5	%		1,240,800
	Total					$	4,808,100

As of June 30, 2015, the short-term loan payables consisted of ten loans which mature on dates ranging from August 5, 2015 through April 29, 2016 with interest rates ranging from 5.60% to 7.80%. The loans No. 6 and 10 were collateralized by Tianjuyuan’s land use right and building ownership right. The loan No. 8 was collateralized by Gufeng’s deposit. The loan No.7 was collateralized by Jinong’s land use right and Jinong’s credit. The loans No. 2 and 9 were guaranteed by Jinong’s credit. The loans No. 3, 4 and 5 were guaranteed by a bonding company in Zhongguancun Beijing, and counter guaranteed by Jinong’s credit. The loan No. 1 was guaranteed by Jinong and Tianjuyuan’s deposit.

 

No.	Payee	Loan period per agreement	Interest Rate			June 30, 2015
1	Beijing Bank – Pinggu Branch	Aug. 6, 2014 – Aug. 5, 2015		6.72	%	$	1,637,000
2	China Merchants Bank – Chaoyang Branch	Aug. 27, 2014 – Aug. 26, 2015		7.80	%		1,637,000
3	Beijing International Trust Co., Ltd	Sep. 24, 2014 – Sep. 23, 2015		7.80	%		1,637,000
4	Beijing International Trust Co., Ltd	Oct. 28, 2014 – Oct. 27, 2015		7.80	%		1,637,000
5	Beijing International Trust Co., Ltd	Dec. 26, 2014 – Dec. 15, 2015		7.28	%		1,637,000
6	Agriculture Bank of China-Pinggu Branch	Jan. 21, 2015 – Jan. 20, 2016		6.16	%		1,309,600
7	Tianjin Bank – Beijing Branch	Feb. 3, 2015 – Jan. 27, 2016		6.16	%		6,548,000
8	Tianjin Bank – Beijing Branch	Feb. 11, 2015 – Feb. 10, 2016		5.60	%		4,616,340
9	China Merchants Bank – Chaoyang Branch	Mar. 16, 2015 – Mar. 15, 2016		6.96	%		818,500
10	Agriculture Bank of China-Pinggu Branch	May 12, 2015 – Apr. 29, 2016		5.89	%		2,128,100
	Total					$	23,605,540

The interest expense from short-term loans were $943,413 and $1,179,617 for the nine months ended March 31, 2016 and 2015, respectively.

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TAXES PAYABLE

9 Months Ended

Mar. 31, 2016

Taxes Payable [Abstract]

Disclosure of Taxes Payable [Text Block]

NOTE 9 – TAXES PAYABLE

Enterprise Income Tax

Effective January 1, 2008, the Enterprise Income Tax (“EIT”) law of the PRC replaced the tax laws for Domestic Enterprises (“DEs”) and Foreign Invested Enterprises (“FIEs”). The EIT rate of 25% replaced the 33% rate that was applicable to both DEs and FIEs. The two year tax exemption and three year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, as a result of the expiration of its tax exemption on December 31, 2007. Accordingly, it made provision for income taxes for the nine months ended March 31, 2016 and 2015 of $2,701,887 and $3,581,931, respectively, which is mainly due to the operating income from Jinong. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $2,465,010 and $2,790,829 for the nine months ended March 31, 2016 and 2015, respectively.

Value-Added Tax

All of the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “ Exemption of VAT for Organic Fertilizer Products ”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. On August 10, 2015 and August 28, 2015, the SAT released Notice #90. “ Reinstatement of VAT for Fertilizer Products ”, and Notice #97, “ Supplementary Reinstatement of VAT for Fertilizer Products ”, which restore the VAT of 13% of the gross sales price on certain fertilizer products starting from September 1, 2015, but granted tax payers a reduced rate of 3% from September 1, 2015 through June 30, 2016.

Income Taxes and Related Payables

Taxes payable consisted of the following:

	March 31,		June 30,
	2016		2015
VAT provision	$	48,938	$	27,251
Income tax payable		3,123,472		3,778,339
Other levies		677,902		698,952
Total	$	3,850,312	$	4,504,542

Tax Rate Reconciliation

Our effective tax rates were approximately 24.7% and 23.3% for the nine months ended March 31, 2016 and 2015, respectively. Substantially all of the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the nine months ended March 31, 2016 and 2015, as shown in the following tables:

March 31, 2016

	China				United States
	15% - 25%				34%				Total
Pretax income (loss)	$	24,931,875			$	(3,973,888)			$	20,957,987
Expected income tax expense (benefit)		6,232,969	25	%		(1,351,122)	34.0	%		4,881,847
High-tech income benefits on Jinong		(1,729,430)	(6.94)	%		-	-			(1,729,430)
Losses from subsidiaries in which no benefit is recognized		663,358	2.66	%		-	-			663,358
Change in valuation allowance on deferred tax asset from US tax benefit		-				1,351,122	(34.0)	%		1,351,122
Actual tax expense	$	5,166,897	21	%	$	-	-	%	$	3,061,993	24.7	%

 March 31, 2015

	China				United States
	15% - 25%				34%				Total
Pretax income (loss)	$	35,186,323			$	(7,472,676)			$	27,713,647
Expected income tax expense (benefit)		8,796,581	25.0	%		(2,540,710)	34.0	%		6,255,871
High-tech income benefits on Jinong		(2,305,732)	(6.6)	%		-	-			(2,305,732)
Losses from subsidiaries in which no benefit is recognized		(40,527)	(0.1)	%		-	-			(40,527)
Change in valuation allowance on deferred tax asset from US tax benefit		-				2,540,170	(34.0)	%		2,540,710
Actual tax expense	$	6,450,322	18.3	%	$	-	-	%	$	6,540,322	23.3	%

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STOCKHOLDERS' EQUITY

9 Months Ended

Mar. 31, 2016

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 10 – STOCKHOLDERS’ EQUITY

Common Stock

On September 12, 2014, the Company’ Compensation Committee, approved the issuance of 87,719 shares of common stock to its ten employees under the Company’s Amended and Restated 2012 Employee Stock Purchase Plan for a cash contribution of a total of $200,000. The issuance is at the closing price $2.28 per share on September 11, 2014.

On September 30, 2014, the Company granted an aggregate of 1,750,000 shares of restricted stock under the 2009 Equity Incentive Plan (the “2009 Plan”) to certain executive officers, directors and employees, among which (i) 240,000 shares of restricted stock to Mr. Tao Li, the CEO; (ii) 100,000 shares of restricted stock to Mr. Ken Ren, the CFO, (iii) 40,000 shares of restricted stock to Mr. Yizhao Zhang, 30,000 shares of restricted stock to Ms. Yiru Shi, and 20,000 shares of restricted stock to Mr. Lianfu Liu, each an independent director of the Company; and (iv) 1,320,000 shares of restricted stock to key employees. The stock grants are subject to time-based vesting schedules, vesting in various installments until March 31, 2015 for the CFO and the three independent directors, until June 30, 2015 for the CEO and until December 31, 2016 for the employees. The value of the restricted stock awards was $3,675,000 and is based on the fair value of the Company’s common stock on the grant date. This amount is being amortized to compensation expense over the vesting periods for the various awards.

On September 28, 2015, the Company granted an aggregate of 1,000,000 shares of restricted stock under the 2009 Plan to certain key employees. The stock grants are subject to time-based vesting schedules, vesting in various installments until June 30, 2016. The value of the restricted stock awards was $1,660,000 and is based on the fair value of the Company’s common stock on the grant date. This amount is being amortized to compensation expense over the vesting periods for the various awards.

The following table sets forth changes in compensation-related restricted stock awards during nine months ended March 31, 2016:

					Grant Date
	Number of		Fair Value of		Fair Value
	Shares		Shares		Per share
Outstanding (unvested) at June 30, 2015		1,708,000	$	1,797,992
Granted		1,000,000		1,660,000	$	1.66
Forfeited		-		-
Vested		(1,716,000)		(2,899,390)
Outstanding (unvested) at March 31, 2016		992,000	$	558,602

As of March 31, 2016, the unamortized expense related to the grant of restricted shares of common stock of $558,602 will be amortized into expense through December 31, 2016. The fair value of the restricted common stock awards was based on the closing price of the Company’s common stock on the grant date. The fair value of the common stock awarded is amortized over the various vesting terms of each grant.

Dividend

On October 1, 2014, the Company's Board of Directors declared a cash dividend of $0.10 per share to the Company's stockholders of common stock. The dividend payable represented a total payment to the stockholders of $3,296,156. The cash dividend of $2,161,904 was paid on January 30, 2015 to stockholders of record as of the close of business on the record date of October 31, 2014. Certain stockholders, including the Company’s Chairman, Mr. Li, elected to waive the dividend payment due to them and directed the Company to retain the funds for working capital purposes.

Preferred Stock

Under the Company’s Articles of Incorporation, the Board has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

As of March 31, 2016, the Company had 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding.

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CONCENTRATIONS AND LITIGATION

9 Months Ended

Mar. 31, 2016

Risks and Uncertainties [Abstract]

Concentration and Litigation [Text Block]

NOTE 11 –CONCENTRATIONS AND LITIGATION

Market Concentration

All of the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

Vendor and Customer Concentration

There was one vendor from which the Company purchased 14.2% of its raw materials for the three months ended March 31, 2016. Total purchase from this vendor amounted to $11,174,000 as of March 31, 2016.

There were three vendors from which the Company purchased 17.0%, 12.4% and 11.6% of its raw materials for the three months ended March 31, 2015. Total purchase from these three venders amounted to $9,322,106 as of March 31, 2015.

There was one customer accounted for 37.8% of the Company’s sales for the three months ended March 31, 2016.

There was one customer accounted over 28.0% of the total sales of fertilizer products as of three months ended March 31, 2015.

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SEGMENT REPORTING

9 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 12 – SEGMENT REPORTING

As of March 31, 2016, the Company was organized into three main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), and Yuxing (agricultural products production). Each of the three operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment. 

	Three months ended March 31,					Nine months ended March 31,
	2016		2015			2016		2015
Revenues from unaffiliated customers:					Revenues from unaffiliated customers:
Jinong	$	31,602,239	$	33,289,393	Jinong	$	97,612,604	$	98,946,251
Gufeng		43,762,058		45,022,730	Gufeng		85,576,564		82,787,611
Yuxing		3,274,177		1,175,092	Yuxing		6,599,577		3,106,317
Consolidated	$	78,638,474	$	79,487,215	Consolidated	$	189,788,745	$	184,840,179
Operating income :					Operating income :
Jinong	$	5,854,750	$	7,263,622	Jinong	$	17,509,024	$	23,322,997
Gufeng		4,805,591		6,999,283	Gufeng		10,468,423		12,126,494
Yuxing		543,855		125,021	Yuxing		1,461,365		535,592
Reconciling item (1)		0		0	Reconciling item (1)		0		0
Reconciling item (2)		(41,454)		(381,644)	Reconciling item (2)		(261,208)		(1,338,332)
Reconciling item (2)—stock compensation		(855,628)		(1,081,125)	Reconciling item (2)—stock compensation		(3,712,709)		(4,150,995)
Consolidated	$	10,307,114	$	12,925,157	Consolidated	$	25,464,895	$	30,495,756
Net income:					Net income:
Jinong	$	5,023,016	$	6,202,243	Jinong	$	15,023,381	$	19,849,731
Gufeng		3,577,278		5,048,243	Gufeng		7,247,542		8,223,840
Yuxing		548,559		128,397	Yuxing		1,467,943		646,347
Reconciling item (1)		0		80	Reconciling item (1)		29		122
Reconciling item (2)		(897,082)		(1,462,769)	Reconciling item (2)		(3,973,917)		(5,489,327)
Consolidated	$	8,251,771	$	9,916,194	Consolidated	$	19,764,978	$	23,230,713
Depreciation and Amortization:					Depreciation and Amortization:
Jinong	$	8,723,607	$	10,831,046	Jinong	$	28,015,696	$	32,319,450
Gufeng		747,160		840,225	Gufeng		2,221,221		2,539,935
Yuxing		328,956		349,952	Yuxing		1,008,697		1,043,518
Consolidated	$	9,799,723	$	12,021,223	Consolidated	$	31,245,614	$	35,902,903
Interest expense:					Interest expense:
Gufeng		211,734		363,958	Gufeng		943,413		1,179,617
Consolidated	$	211,734	$	363,958	Consolidated	$	943,413	$	1,179,617
Capital Expenditure:					Capital Expenditure:
Jinong	$	616	$	9,893	Jinong	$	7,259	$	9,232,410
Gufeng		1,962		544	Gufeng		1,962		13,578
Yuxing		938		27,630	Yuxing		7,387		397,823
Consolidated	$	3,516	$	38,067	Consolidated	$	16,608	$	9,643,811

	As of		As of
	March 31,		June 30,
	2016		2015
Identifiable assets:
Jinong	$	200,739,190	$	219,259,401
Gufeng		152,211,833		165,267,975
Yuxing		46,902,443		44,745,889
Reconciling item (1)		50,921		312,198
Reconciling item (2)		(2,879)		(2,845)
Consolidated	$	399,901,508	$	348,728,342

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2016

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

NOTE 13 - COMMITMENTS AND CONTINGENCIES

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 $3,797 (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 $480 (RMB 3,119).

Accordingly, the Company recorded an aggregate of $16,898 and $5,505 as rent expenses for the nine months ended March 31, 2016 and 2015, respectively. Rent expenses for the next five years ended March 31, are as follows:

Years ending March 31,
2017	$	16,896
2018		5,505
2019		5,505
2020		5,505
2021		5,505

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VARIABLE INTEREST ENTITIES

9 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity Disclosure [Text Block]

NOTE 14 VARIABLE INTEREST ENTITIES

In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013.

The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly-owned subsidiary, Jinong, absorbs a majority of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

As a result of the VIE Agreements, Green Nevada is able to exercise control over Yuxing and is entitled to substantially all of the economic benefits of Yuxing through its subsidiary, Jinong. Therefore, Green Nevada consolidates Yuxing in accordance with ASC 810-10 (“Consolidation of Variable Interest Entities”) since the date of the VIE Agreements.

The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of March 31, 2016 and June 30, 2015:

	March 31		June 30,
	2016		2015
ASSETS
Current Assets
Cash and cash equivalents	$	235,350	$	79,867
Accounts receivable, net		135,092		72,748
Inventories		18,677,259		18,138,137
Other current assets		665,289		48,845
Advances to suppliers		3,222,535		61,739
Total Current Assets		22,935,525		18,401,336
Plant, Property and Equipment, Net		14,045,185		15,692,975
Construction In Progress		65,301		68,921
Intangible Assets, Net		9,856,432		10,582,657
Total Assets	$	46,902,443	$	44,745,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	280,490	$	159,730
Accrued expenses and other payables		311,108		222,871
Amount due to related parties		44,305,540		43,488,198
Total Current Liabilities		44,616,648		43,870,799
Stockholders' equity		2,285,795		875,090
Total Liabilities and Stockholders' Equity	$	46,902,443	$	44,745,889

	Three months ended March 31,				Nine months ended March 31,
	2016		2015		2016		2015
Revenue	$	3,274,177	$	1,175,092	$	6,599,577	$	3,106,317
Expenses		2,725,619		1,046,695		5,131,634		2,459,970
Net income (loss)	$	548,558	$	128,397	$	1,467,943	$	646,347

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Gufeng, Tianjuyuan and VIE Yuxing. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents and concentration of cash

For statement of cash flows purposes, the Company considers all cash on hand and in banks, certificates of deposit with state owned banks in the People’s Republic of China (“PRC”) and banks in the United States, and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains large sums of cash in two banks in China. The aggregate cash in such accounts and on hand as of March 31, 2016 and June 30, 2015 was $90,470,157 and $92,982,564, respectively. There is no insurance securing these deposits in China over $77,000 (RMB 500,000). In addition, the Company also had $47,972 and $306,376 in cash in two banks in the United States as of March 31, 2016 and June 30, 2015, respectively, with $500,000 secured by the U.S. Federal Deposit Insurance Corporation. Cash overdraft as of balance sheet date will be reflected as liabilities in the balance sheet. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts.

Deferred Charges, Policy [Policy Text Block]

Deferred assets

Deferred assets represent amounts that the distributors owed to the Company in their marketing efforts and developing standard stores to expand the competitiveness and market shares of the Company’s products . The amount owed to the Company will be expensed over three years which is the term as stated in the cooperation agreement, as long as the distributors are actively selling the Company’s products. For the nine months ended March 31, 2016 and 2015, the Company amortized $31,245,614 and $35,902,903, respectively of the deferred assets. If a distributor breaches, defaults, or terminates the agreement with the Company within the three-year period, the outstanding unamortized portion of the amount owed will become payable to the Company immediately. The Company’s Chairman, Mr. Li, guaranteed to the Company of amounts remaining unpaid due from distributors.

The deferred assets consist of items inside the distributors’ stores such as furniture, racks, cabinets, and display units, and items outside or attached to the distributors’ stores such as signage and billboards. These types of assets would be capitalized as fixed assets if the Company actually owned the stores or utilized the assets for its own operations. These assets would also be capitalized as leasehold improvements if the Company leased these stores from the distributors. Therefore, the Company believes that under the U.S. Generally Accepted Accounting Principles (G.A.A.P), these types of assets purchases are properly capitalized. In addition, the Company believes that these assets are properly classified as deferred assets because if a distributor breaches, defaults, or terminates the agreement with the Company within a three-year period, a proportionate amount expended by the Company is to be repaid by the distributor. The Chairman of the Board of Directors of the Company guaranteed to the Company of amounts remaining unpaid due from distributors.

The assets inside the distributors’ stores are custom made to fit the layout of each individual store and the signage and billboards are also custom designed to fit the specific location. The assets were purchased by the Company directly from the manufacturers and installed in the distributors’ stores. The Company wants to maintain control over the quality of the items being purchased as well as making them uniform among all the distributor locations.

Earnings Per Share, Policy [Policy Text Block]

Earnings per share

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share consist of the following:

	Nine Months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	19,764,978	$	13,314,519
Basic Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Basic	$	0.54	$	0.41
Net Income for Diluted Earnings Per Share	$	19,764,978	$	13,314,519
Diluted Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Diluted	$	0.54	$	0.41

	Three months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	8,251,771	$	9,916,194
Basic Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Basic	$	0.22	$	0.29
Net Income for Diluted Earnings Per Share	$	8,251,771	$	9,916,194
Diluted Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Diluted	$	0.22	$	0.29

Reclassification, Policy [Policy Text Block]

Reclassification

Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2015 consolidated financial statement presentation. Such reclassifications did not affect total revenues, operating income or net income or cash flows as previously reported.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements

FASB Accounting Standards Update No. 2014-09

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) , which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard beginning January 1, 2017.

FASB Accounting Standards Update No. 2015-01

In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement – Extraordinary and Unusual items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01).  The amendment eliminates from U.S. GAAP the concept of extraordinary items.  This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted and allows the Company to apply the amendment prospectively or retrospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

FASB Accounting Standards Update No. 2015-02

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. This amendment provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). ASU 2015-02 is effective for periods beginning December 15, 2015. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s consolidated financial statements. Early adoption is permitted.

FASB Accounting Standards Update No. 2015-14

In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment defers the effective date of ASU No. 2014-09 for all entities for one year. The guidance in ASU 2014-09 will now apply to public business entities, certain not-for-profit entities, and certain employee benefit plans from annual reporting periods beginning December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods after December 31, 2016, including interim reporting periods with that reporting period.

FASB Accounting Standards Update No. 2015-16

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805). ASU No. 2015-16 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The adoption of ASU 2015-016 is not expected to have a material effect on the Company’s consolidated financial statements.

In November 2015, FASB issued ASU No. 2015-17, Income Taxes-Balance Sheet Classification of Deferred Taxes  (“ASU 2015-17”). The amendments in this update simplify the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in ASU 2015-17 are effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of the guidance is not expected to have significant impact on the Group’s consolidated financial statements.

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future financial statements.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The components of basic and diluted earnings per share consist of the following:

	Nine Months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	19,764,978	$	13,314,519
Basic Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Basic	$	0.54	$	0.41
Net Income for Diluted Earnings Per Share	$	19,764,978	$	13,314,519
Diluted Weighted Average Number of Shares		36,610,131		32,829,357
Net Income Per Share – Diluted	$	0.54	$	0.41

	Three months Ended March 31,
	2016		2015
Net Income for Basic Earnings Per Share	$	8,251,771	$	9,916,194
Basic Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Basic	$	0.22	$	0.29
Net Income for Diluted Earnings Per Share	$	8,251,771	$	9,916,194
Diluted Weighted Average Number of Shares		36,962,166		34,783,456
Net Income Per Share – Diluted	$	0.22	$	0.29

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INVENTORIES (Tables)

9 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consisted of the following:

	March 31,		June 30,
	2016		2015
Raw materials	$	77,093,013	$	48,294,614
Supplies and packing materials	$	618,972	$	529,398
Work in progress	$	420,671	$	348,670
Finished goods	$	30,374,147	$	52,130,265
Total	$	108,506,803	$	101,302,947

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PROPERTY, PLANT AND EQUIPMENT (Tables)

9 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property, plant and equipment consisted of the following:

	March 31,		June 30,
	2016		2015
Building and improvements	$	41,979,732	$	43,699,066
Auto		603,230		900,562
Machinery and equipment		21,620,797		23,173,209
Agriculture assets		789,395		833,165
Total property, plant and equipment		64,993,155		68,606,002
Less: accumulated depreciation		(25,414,671)		(23,971,808)
Total	$	39,578,484	$	44,634,194

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INTANGIBLE ASSETS (Tables)

9 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Impaired Intangible Assets [Table Text Block]

Intangible assets consisted of the following:

	March 31,		June 30,
	2016		2015
Land use rights, net	$	10,760,822	$	11,554,776
Technology patent, net		59,455		251,008
Customer relationships, net		4,300,860		5,337,372
Trademarks		6,312,570		6,662,590
Total	$	21,433,707	$	23,805,746

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated amortization expenses of intangible assets for the next five twelve months periods ended March 31, 2016, are as follows:

AMORTIZATION TABLE
Year Ends	Expense ($)
March 31, 2016		1,320,467
March 31, 2017		1,261,012
March 31, 2018		1,261,012
March 31, 2019		1,261,012
March 31, 2020		504,899

Use Rights [Member]

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Impaired Intangible Assets [Table Text Block]

The Land Use Rights consisted of the following:

	March 31,			June 30,
	2016			2015
Land use rights	$	12,643,123		$	13,344,160
Less: accumulated amortization		(1,882,301)	)		(1,789,384)
Total land use rights, net	$	10,760,822		$	11,554,776

Developed Technology Rights [Member]

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Impaired Intangible Assets [Table Text Block]

The technology know-how consisted of the following:

	March 31,			June 30,
	2016			2015
Technology know-how	$	2,338,143		$	2,467,789
Less: accumulated amortization		(2,278,688)	)		(2,216,781)
Total technology know-how, net	$	59,455		$	251,008

Customer Relationships [Member]

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Impaired Intangible Assets [Table Text Block]

The fair value on the acquired customer relationships was estimated to be RMB65,000,000 (or $10,081,500) and is amortized over the remaining useful life of ten years.

	March 31,			June 30,
	2016			2015
Customer relationships	$	10,081,500		$	10,640,500
Less: accumulated amortization		(5,780,640)	)		(5,303,128)
Total customer relationships, net	$	4,300,860		$	5,337,372

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ACCRUED EXPENSES AND OTHER PAYABLES (Tables)

9 Months Ended

Mar. 31, 2016

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accrued expenses and other payables consisted of the following:

	March 31,		June 30,
	2016		2015
Payroll payable	$	8,647	$	18,451
Welfare payable		159,232		168,061
Accrued expenses		4,058,550		3,554,733
Other payables		977,911		1,098,705
Other levy payable		129,765		113,027
Total	$	5,334,105	$	4,952,977

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LOAN PAYABLES (Tables)

9 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

As of March 31, 2016, the short-term loan payables consisted of three loans which mature on dates ranging from April 29, 2016 through January 17, 2017 with interest rates ranging from 5.00% to 5.82%. The loans No. 1 and 3 below are collateralized by Tianjuyan’s land use right and building ownership right. The loans No. 2 is guaranteed by Jinong’s credit.

 

No.	Payee	Loan Period per agreement	Interest Rate			March 31, 2016
1	Agriculture Bank of China-Pinggu Branch	May 12, 2015 – Apr. 29, 2016		5.80	%	$	2,016,300
2	Bank of Tianjin- Beijing Branch	Aug. 11, 2015 – Aug. 2, 2016		5.82	%		1,551,000
3	Agriculture Bank of China-Pinggu Branch	Jan. 19, 2016 – Jan. 17, 2017		5	%		1,240,800
	Total					$	4,808,100

As of June 30, 2015, the short-term loan payables consisted of ten loans which mature on dates ranging from August 5, 2015 through April 29, 2016 with interest rates ranging from 5.60% to 7.80%. The loans No. 6 and 10 were collateralized by Tianjuyuan’s land use right and building ownership right. The loan No. 8 was collateralized by Gufeng’s deposit. The loan No.7 was collateralized by Jinong’s land use right and Jinong’s credit. The loans No. 2 and 9 were guaranteed by Jinong’s credit. The loans No. 3, 4 and 5 were guaranteed by a bonding company in Zhongguancun Beijing, and counter guaranteed by Jinong’s credit. The loan No. 1 was guaranteed by Jinong and Tianjuyuan’s deposit.

 

No.	Payee	Loan period per agreement	Interest Rate			June 30, 2015
1	Beijing Bank – Pinggu Branch	Aug. 6, 2014 – Aug. 5, 2015		6.72	%	$	1,637,000
2	China Merchants Bank – Chaoyang Branch	Aug. 27, 2014 – Aug. 26, 2015		7.80	%		1,637,000
3	Beijing International Trust Co., Ltd	Sep. 24, 2014 – Sep. 23, 2015		7.80	%		1,637,000
4	Beijing International Trust Co., Ltd	Oct. 28, 2014 – Oct. 27, 2015		7.80	%		1,637,000
5	Beijing International Trust Co., Ltd	Dec. 26, 2014 – Dec. 15, 2015		7.28	%		1,637,000
6	Agriculture Bank of China-Pinggu Branch	Jan. 21, 2015 – Jan. 20, 2016		6.16	%		1,309,600
7	Tianjin Bank – Beijing Branch	Feb. 3, 2015 – Jan. 27, 2016		6.16	%		6,548,000
8	Tianjin Bank – Beijing Branch	Feb. 11, 2015 – Feb. 10, 2016		5.60	%		4,616,340
9	China Merchants Bank – Chaoyang Branch	Mar. 16, 2015 – Mar. 15, 2016		6.96	%		818,500
10	Agriculture Bank of China-Pinggu Branch	May 12, 2015 – Apr. 29, 2016		5.89	%		2,128,100
	Total					$	23,605,540

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TAXES PAYABLE (Tables)

9 Months Ended

Mar. 31, 2016

Taxes Payable [Abstract]

Schedule of Tax Payable [Table Text Block]

Taxes payable consisted of the following:

	March 31,		June 30,
	2016		2015
VAT provision	$	48,938	$	27,251
Income tax payable		3,123,472		3,778,339
Other levies		677,902		698,952
Total	$	3,850,312	$	4,504,542

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the nine months ended March 31, 2016 and 2015, as shown in the following tables:

March 31, 2016

	China				United States
	15% - 25%				34%				Total
Pretax income (loss)	$	24,931,875			$	(3,973,888)			$	20,957,987
Expected income tax expense (benefit)		6,232,969	25	%		(1,351,122)	34.0	%		4,881,847
High-tech income benefits on Jinong		(1,729,430)	(6.94)	%		-	-			(1,729,430)
Losses from subsidiaries in which no benefit is recognized		663,358	2.66	%		-	-			663,358
Change in valuation allowance on deferred tax asset from US tax benefit		-				1,351,122	(34.0)	%		1,351,122
Actual tax expense	$	5,166,897	21	%	$	-	-	%	$	3,061,993	24.7	%

 March 31, 2015

	China				United States
	15% - 25%				34%				Total
Pretax income (loss)	$	35,186,323			$	(7,472,676)			$	27,713,647
Expected income tax expense (benefit)		8,796,581	25.0	%		(2,540,710)	34.0	%		6,255,871
High-tech income benefits on Jinong		(2,305,732)	(6.6)	%		-	-			(2,305,732)
Losses from subsidiaries in which no benefit is recognized		(40,527)	(0.1)	%		-	-			(40,527)
Change in valuation allowance on deferred tax asset from US tax benefit		-				2,540,170	(34.0)	%		2,540,710
Actual tax expense	$	6,450,322	18.3	%	$	-	-	%	$	6,540,322	23.3	%

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STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Mar. 31, 2016

Statement of Stockholders' Equity [Abstract]

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

The following table sets forth changes in compensation-related restricted stock awards during nine months ended March 31, 2016:

					Grant Date
	Number of		Fair Value of		Fair Value
	Shares		Shares		Per share
Outstanding (unvested) at June 30, 2015		1,708,000	$	1,797,992
Granted		1,000,000		1,660,000	$	1.66
Forfeited		-		-
Vested		(1,716,000)		(2,899,390)
Outstanding (unvested) at March 31, 2016		992,000	$	558,602

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SEGMENT REPORTING (Tables)

9 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

As of March 31, 2016, the Company was organized into three main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), and Yuxing (agricultural products production). Each of the three operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment. 

	Three months ended March 31,					Nine months ended March 31,
	2016		2015			2016		2015
Revenues from unaffiliated customers:					Revenues from unaffiliated customers:
Jinong	$	31,602,239	$	33,289,393	Jinong	$	97,612,604	$	98,946,251
Gufeng		43,762,058		45,022,730	Gufeng		85,576,564		82,787,611
Yuxing		3,274,177		1,175,092	Yuxing		6,599,577		3,106,317
Consolidated	$	78,638,474	$	79,487,215	Consolidated	$	189,788,745	$	184,840,179
Operating income :					Operating income :
Jinong	$	5,854,750	$	7,263,622	Jinong	$	17,509,024	$	23,322,997
Gufeng		4,805,591		6,999,283	Gufeng		10,468,423		12,126,494
Yuxing		543,855		125,021	Yuxing		1,461,365		535,592
Reconciling item (1)		0		0	Reconciling item (1)		0		0
Reconciling item (2)		(41,454)		(381,644)	Reconciling item (2)		(261,208)		(1,338,332)
Reconciling item (2)—stock compensation		(855,628)		(1,081,125)	Reconciling item (2)—stock compensation		(3,712,709)		(4,150,995)
Consolidated	$	10,307,114	$	12,925,157	Consolidated	$	25,464,895	$	30,495,756
Net income:					Net income:
Jinong	$	5,023,016	$	6,202,243	Jinong	$	15,023,381	$	19,849,731
Gufeng		3,577,278		5,048,243	Gufeng		7,247,542		8,223,840
Yuxing		548,559		128,397	Yuxing		1,467,943		646,347
Reconciling item (1)		0		80	Reconciling item (1)		29		122
Reconciling item (2)		(897,082)		(1,462,769)	Reconciling item (2)		(3,973,917)		(5,489,327)
Consolidated	$	8,251,771	$	9,916,194	Consolidated	$	19,764,978	$	23,230,713
Depreciation and Amortization:					Depreciation and Amortization:
Jinong	$	8,723,607	$	10,831,046	Jinong	$	28,015,696	$	32,319,450
Gufeng		747,160		840,225	Gufeng		2,221,221		2,539,935
Yuxing		328,956		349,952	Yuxing		1,008,697		1,043,518
Consolidated	$	9,799,723	$	12,021,223	Consolidated	$	31,245,614	$	35,902,903
Interest expense:					Interest expense:
Gufeng		211,734		363,958	Gufeng		943,413		1,179,617
Consolidated	$	211,734	$	363,958	Consolidated	$	943,413	$	1,179,617
Capital Expenditure:					Capital Expenditure:
Jinong	$	616	$	9,893	Jinong	$	7,259	$	9,232,410
Gufeng		1,962		544	Gufeng		1,962		13,578
Yuxing		938		27,630	Yuxing		7,387		397,823
Consolidated	$	3,516	$	38,067	Consolidated	$	16,608	$	9,643,811

	As of		As of
	March 31,		June 30,
	2016		2015
Identifiable assets:
Jinong	$	200,739,190	$	219,259,401
Gufeng		152,211,833		165,267,975
Yuxing		46,902,443		44,745,889
Reconciling item (1)		50,921		312,198
Reconciling item (2)		(2,879)		(2,845)
Consolidated	$	399,901,508	$	348,728,342

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Mar. 31, 2016

Leases [Abstract]

Schedule of Rent Expense [Table Text Block]

Rent expenses for the next five years ended March 31, are as follows:

Years ending March 31,
2017	$	16,896
2018		5,505
2019		5,505
2020		5,505
2021		5,505

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VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities [Table Text Block]

The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of March 31, 2016 and June 30, 2015:

	March 31		June 30,
	2016		2015
ASSETS
Current Assets
Cash and cash equivalents	$	235,350	$	79,867
Accounts receivable, net		135,092		72,748
Inventories		18,677,259		18,138,137
Other current assets		665,289		48,845
Advances to suppliers		3,222,535		61,739
Total Current Assets		22,935,525		18,401,336
Plant, Property and Equipment, Net		14,045,185		15,692,975
Construction In Progress		65,301		68,921
Intangible Assets, Net		9,856,432		10,582,657
Total Assets	$	46,902,443	$	44,745,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	280,490	$	159,730
Accrued expenses and other payables		311,108		222,871
Amount due to related parties		44,305,540		43,488,198
Total Current Liabilities		44,616,648		43,870,799
Stockholders' equity		2,285,795		875,090
Total Liabilities and Stockholders' Equity	$	46,902,443	$	44,745,889

	Three months ended March 31,				Nine months ended March 31,
	2016		2015		2016		2015
Revenue	$	3,274,177	$	1,175,092	$	6,599,577	$	3,106,317
Expenses		2,725,619		1,046,695		5,131,634		2,459,970
Net income (loss)	$	548,558	$	128,397	$	1,467,943	$	646,347

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Net Income for Basic Earnings Per Share	$ 8,251,771	$ 9,916,194	$ 19,764,978	$ 23,230,713
Basic Weighted Average Number of Shares (in shares)	36,962,166	34,783,456	36,610,131	33,471,214
Net Income Per Share - Basic (in dollars per share)	$ 0.22	$ 0.29	$ 0.54	$ 0.69
Net Income for Diluted Earnings Per Share (in shares)	$ 8,251,771	$ 9,916,194	$ 19,764,978	$ 13,314,519
Diluted Weighted Average Number of Shares (in shares)	36,962,166	34,783,456	36,610,131	33,471,214
Net Income Per Share - Diluted (in dollars per share)	$ 0.22	$ 0.29	$ 0.54	$ 0.69

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	9 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2016 CNY (¥)	Jun. 30, 2015 USD ($)
Amortization of Deferred Assets	$ 31,245,614	$ 35,902,903
Deposits, Total	77,000		¥ 500,000
China Banks [Member]
Interest-bearing Deposits in Banks and Other Financial Institutions	90,470,157			$ 92,982,564
United States Banks [Member]
Interest-bearing Deposits in Banks and Other Financial Institutions	47,972			$ 306,376
Cash, FDIC Insured Amount	$ 500,000

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INVENTORIES (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Inventory [Line Items]
Raw materials	$ 77,093,013	$ 48,294,614
Supplies and packing materials	618,972	529,398
Work in progress	420,671	348,670
Finished goods	30,374,147	52,130,265
Total	$ 108,506,803	$ 101,302,947

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PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 64,993,155	$ 68,606,002
Less: accumulated depreciation	(25,414,671)	(23,971,808)
Total	39,578,484	44,634,194
Building and improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	41,979,732	43,699,066
Auto [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	603,230	900,562
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	21,620,797	23,173,209
Agricultural Assets [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 789,395	$ 833,165

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INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 21,433,707	$ 23,805,746
Land use rights, net [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	10,760,822	11,554,776
Technology patent, net [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	59,455	251,008
Customer relationships, net [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	4,300,860	5,337,372
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	$ 6,312,570	$ 6,662,590

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INTANGIBLE ASSETS (Details 1) - Use Rights [Member] - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Land use rights	$ 12,643,123	$ 13,344,160
Less: accumulated amortization	(1,882,301)	(1,789,384)
Total land use rights, net	$ 10,760,822	$ 11,554,776

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INTANGIBLE ASSETS (Details 2) - Patented Technology [Member] - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Technology know-how	$ 2,338,143	$ 2,467,789
Less: accumulated amortization	(2,278,688)	(2,216,781)
Total technology know-how, net	$ 59,455	$ 251,008

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INTANGIBLE ASSETS (Details 3) - Customer Relationships [Member] - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Customer relationships	$ 10,081,500	$ 10,640,500
Less: accumulated amortization	(5,780,640)	(5,303,128)
Total customer relationships, net	$ 4,300,860	$ 5,337,372

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INTANGIBLE ASSETS (Details 4)	Mar. 31, 2016 USD ($)
Finite-Lived Intangible Assets [Line Items]
March 31, 2016	$ 1,320,467
March 31, 2017	1,261,012
March 31, 2018	1,261,012
March 31, 2019	1,261,012
March 31, 2020	$ 504,899

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INTANGIBLE ASSETS (Details Textual)	1 Months Ended
	Sep. 25, 2009 USD ($) a	Aug. 13, 2003 USD ($) a	Aug. 16, 2001 USD ($)	Jul. 02, 2010 USD ($)	Jul. 02, 2010 CNY (¥)	Sep. 25, 2009 CNY (¥) a	Aug. 13, 2003 CNY (¥) a	Aug. 16, 2001 CNY (¥)
Use Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets Land Use Right	88	11				88	11
Finite-lived Intangible Assets, Fair Value Disclosure	$ 11,350,977	$ 162,227	$ 1,129,919			¥ 73,184,895	¥ 1,045,950	¥ 7,285,099
Finite-Lived Intangible Assets, Remaining Amortization Period	50 years	50 years	50 years
Patented Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets, Fair Value Disclosure				$ 1,426,920	¥ 9,200,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets, Fair Value Disclosure				10,081,500	65,000,000
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets, Fair Value Disclosure				$ 6,312,570	¥ 40,700,000

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ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Accrued Expenses And Other Payables [Line Items]
Payroll payable	$ 8,647	$ 18,451
Welfare payable	159,232	168,061
Accrued expenses	4,058,550	3,554,733
Other payables	977,911	1,098,705
Other levy payable	129,765	113,027
Total	$ 5,334,105	$ 4,952,977

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RELATED PARTIES TRANSACTIONS (Details Textual)	1 Months Ended		9 Months Ended
	Jun. 29, 2014 USD ($) m²	Jun. 29, 2014 CNY (¥) m²	Mar. 31, 2016 USD ($)	Mar. 31, 2016 CNY (¥)	Jun. 30, 2015 USD ($)	Jun. 29, 2014 ft²
Operating Leased Assets [Line Items]
Due to Related Parties, Current			$ 2,206,144		$ 2,068,102
Due from Related Parties, Current			613,452		0
Revenue from Related Parties			613,452
900LHCom [Member]
Operating Leased Assets [Line Items]
Total Contracted Value of Agreement			3,955,050	¥ 25,500,000
Yuxing [Member]
Operating Leased Assets [Line Items]
Due from Related Parties, Current			613,452
Xian Techteam Science and Technology Industry Group Co [Member] | Gufeng [Member]
Operating Leased Assets [Line Items]
Due to Related Parties, Current			$ 1,116,743		$ 1,184,643
Kingtone Information [Member]
Operating Leased Assets [Line Items]
Date Of New Lease Agreement Entered	Jul. 01, 2014	Jul. 01, 2014
Land Subject to Ground Leases	612	612				6,588
Monthly Rent Expenses	$ 3,797	¥ 24,480

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LOAN PAYABLES (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Short-term Debt [Line Items]
Short term loans	$ 4,808,100	$ 23,605,540
Bank of Beijing Pinggu Branch [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Aug. 06, 2014
Debt Instrument, Maturity Date Range, End		Aug. 05, 2015
Debt Instrument, Interest Rate, Stated Percentage		6.72%
Short term loans		$ 1,637,000
China Merchants Bank Chaoyangmen Branch [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Aug. 27, 2014
Debt Instrument, Maturity Date Range, End		Aug. 26, 2015
Debt Instrument, Interest Rate, Stated Percentage		7.80%
Short term loans		$ 1,637,000
Beijing International Trust Co Ltd [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Sep. 24, 2014
Debt Instrument, Maturity Date Range, End		Sep. 23, 2015
Debt Instrument, Interest Rate, Stated Percentage		7.80%
Short term loans		$ 1,637,000
Beijing International Trust Co Ltd 1 [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Oct. 28, 2014
Debt Instrument, Maturity Date Range, End		Oct. 27, 2015
Debt Instrument, Interest Rate, Stated Percentage		7.80%
Short term loans		$ 1,637,000
Beijing International Trust Co Ltd 2 [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Dec. 26, 2014
Debt Instrument, Maturity Date Range, End		Dec. 15, 2015
Debt Instrument, Interest Rate, Stated Percentage		7.28%
Short term loans		$ 1,637,000
Agriculture Bank of China Pinggu Branch [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start	May 12, 2015	Jan. 21, 2015
Debt Instrument, Maturity Date Range, End	Apr. 29, 2016	Jan. 20, 2016
Debt Instrument, Interest Rate, Stated Percentage	5.80%	6.16%
Short term loans	$ 2,016,300	$ 1,309,600
Bank of Tianjin Beijing Branch [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start	Aug. 11, 2015	Feb. 03, 2015
Debt Instrument, Maturity Date Range, End	Aug. 02, 2016	Jan. 27, 2016
Debt Instrument, Interest Rate, Stated Percentage	5.82%	6.16%
Short term loans	$ 1,551,000	$ 6,548,000
Bank of Tianjin Beijing Branch 1 [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Feb. 11, 2015
Debt Instrument, Maturity Date Range, End		Feb. 10, 2016
Debt Instrument, Interest Rate, Stated Percentage		5.60%
Short term loans		$ 4,616,340
China Merchants Bank Chaoyangmen Branch 1 [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start		Mar. 16, 2015
Debt Instrument, Maturity Date Range, End		Mar. 15, 2016
Debt Instrument, Interest Rate, Stated Percentage		6.96%
Short term loans		$ 818,500
Agriculture Bank of China Pinggu Branch 1 [Member]
Short-term Debt [Line Items]
Debt Instrument, Maturity Date Range, Start	Jan. 19, 2016	May 12, 2015
Debt Instrument, Maturity Date Range, End	Jan. 17, 2017	Apr. 29, 2016
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.89%
Short term loans	$ 1,240,800	$ 2,128,100

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LOAN PAYABLES (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Interest Expense, Short-term Borrowings	$ 943,413	$ 1,179,617
Loans Payable [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	5.00%		5.60%
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum	5.82%		7.80%

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TAXES PAYABLE (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Taxes Payable [Line Items]
VAT provision	$ 48,938	$ 27,251
Income tax payable	3,123,472	3,778,339
Other levies	677,902	698,952
Total	$ 3,850,312	$ 4,504,542

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TAXES PAYABLE (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Taxes Payable [Line Items]
Pretax income (loss)	$ 10,356,675	$ 12,733,475	$ 24,931,875	$ 29,603,473
Expected income tax expense (benefit)			4,881,847	6,255,871
High-tech income benefits on Jinong			(1,729,430)	(2,305,732)
Losses from subsidiaries in which no benefit is recognized			663,358	(40,527)
Change in valuation allowance on deferred tax asset from US tax benefit			1,351,122	2,540,710
Actual tax expense	$ 2,104,904	$ 2,817,281	$ 5,166,897	$ 6,372,760
Actual tax expense, Percentage			24.70%	23.30%
CHINA
Taxes Payable [Line Items]
Pretax income (loss)			$ 24,931,875	$ 35,186,323
Expected income tax expense (benefit)			6,232,969	8,796,581
High-tech income benefits on Jinong			(1,729,430)	(2,305,732)
Losses from subsidiaries in which no benefit is recognized			663,358	(40,527)
Change in valuation allowance on deferred tax asset from US tax benefit			0	0
Actual tax expense			$ 5,166,897	$ 6,450,322
Expected income tax expense (benefit), Percentage			25.00%	25.00%
High-tech income benefits on Jinong, Percentage			(6.94%)	(6.60%)
Losses from subsidiaries in which no benefit is recognized, Percentage			2.66%	(0.10%)
Actual tax expense, Percentage			21.00%	18.30%
CHINA | Minimum [Member]
Taxes Payable [Line Items]
Actual tax expense, Percentage			15.00%	15.00%
CHINA | Maximum [Member]
Taxes Payable [Line Items]
Actual tax expense, Percentage			25.00%	25.00%
UNITED STATES
Taxes Payable [Line Items]
Pretax income (loss)			$ (3,973,888)	$ (7,472,676)
Expected income tax expense (benefit)			(1,351,122)	(2,540,710)
High-tech income benefits on Jinong			0	0
Losses from subsidiaries in which no benefit is recognized			0	0
Change in valuation allowance on deferred tax asset from US tax benefit			1,351,122	2,540,170
Actual tax expense			$ 0	$ 0
Expected income tax expense (benefit), Percentage			34.00%	34.00%
High-tech income benefits on Jinong, Percentage			0.00%	0.00%
Losses from subsidiaries in which no benefit is recognized, Percentage			0.00%	0.00%
Change in valuation allowance on deferred tax asset from US tax benefit, Percentage			(34.00%)	(34.00%)
Actual tax expense, Percentage			0.00%	0.00%

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TAXES PAYABLE (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2008	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Taxes Payable [Line Items]
Income Tax Expense (Benefit)		$ 2,104,904	$ 2,817,281	$ 5,166,897	$ 6,372,760
Value Added Tax Rate				13.00%
Effective Income Tax Rate Reconciliation, Percent				24.70%	23.30%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				34.00%	34.00%
Enterprise Income Tax [Member]
Taxes Payable [Line Items]
New Enterprise Income Tax Rate	25.00%
Existing Enterprise Income Tax Rate	33.00%
Income Tax Rate Reconciliation Tax Holidays	50.00%
High Tech Income Tax Rate	15.00%
Enterprise Income Tax [Member] | Jinong [Member]
Taxes Payable [Line Items]
Income Tax Expense (Benefit)				$ 2,701,887	$ 3,581,931
Enterprise Income Tax [Member] | Gufeng [Member]
Taxes Payable [Line Items]
Income Tax Expense (Benefit)				$ 2,465,010	$ 2,790,829
Effective Income Tax Rate Reconciliation, Percent				25.00%

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STOCKHOLDERS' EQUITY (Details) - Restricted Stock [Member]	9 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Outstanding (unvested) | shares	1,708,000
Granted | shares	1,000,000
Forfeited | shares	0
Vested | shares	(1,716,000)
Outstanding (unvested) | shares	992,000
Fair Value, Outstanding (unvested) | $	$ 1,797,992
Fair Value, Granted | $	1,660,000
Fair Value, Forfeited | $	0
Fair Value, Vested | $	(2,899,390)
Fair Value, Outstanding (unvested) | $	$ 558,602
Grand Date Fair Value Per share, Granted | $ / shares	$ 1.66

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STOCKHOLDERS' EQUITY (Details Textual) - USD ($)			1 Months Ended
	Sep. 30, 2014	Sep. 12, 2014	Sep. 28, 2015	Jan. 30, 2015	Mar. 31, 2016	Jun. 30, 2015	Oct. 01, 2014
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	3,675,000		1,660,000
Preferred Stock, Shares Authorized					20,000,000	20,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)					$ 0.001	$ 0.001
Dividends Payable, Amount Per Share							$ 0.10
Dividends Payable							$ 3,296,156
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options					$ 558,602
Cash Dividends Paid to Parent Company				$ 2,161,904
Equity Incentive Plan 2009 [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	1,750,000		1,000,000
Ten Employee [Member] | Common Stock [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Value, Employee Stock Purchase Plan		$ 200,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans		87,719
Share Price		$ 2.28
Mr Tao Li [Member] | Equity Incentive Plan 2009 [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	240,000
Mr Ken Ren [Member] | Equity Incentive Plan 2009 [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	100,000
Mr Yizhao Zhang [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	40,000
Ms Yiru Shi [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	30,000
Mr Lianfu Liu [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	20,000
Other Employees [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	1,320,000

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CONCENTRATIONS AND LITIGATION (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Accounts Payable, Trade, Current	$ 11,174,000	$ 9,322,106
Supplier Concentration Risk [Member] | Vendor One [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	14.20%	17.00%
Supplier Concentration Risk [Member] | Vendor Two [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		12.40%
Supplier Concentration Risk [Member] | Vendor Three [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		11.60%
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	37.80%	28.00%

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SEGMENT REPORTING (Details) - USD ($)		3 Months Ended		9 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated		$ 78,638,474	$ 79,487,215	$ 189,788,745	$ 184,840,179
Operating income :
Operating income Consolidated		10,307,114	12,925,157	25,464,895	30,495,756
Stock compensation				(3,014,153)	(4,344,098)
Net income:
Net income Consolidated		8,251,771	9,916,194	19,764,978	23,230,713
Depreciation and Amortization:
Depreciation and Amortization Consolidated		9,799,723	12,021,223	31,245,614	35,902,903
Interest expense:
Interest expense Consolidated		211,734	363,958	943,413	1,179,617
Capital Expenditure:
Capital Expenditure Consolidated		3,516	38,067	16,608	9,643,811
Identifiable assets:
Identifiable assets Consolidated		399,901,508		399,901,508		$ 429,582,618
Jinong [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated		31,602,239	33,289,393	97,612,604	98,946,251
Operating income :
Operating income Consolidated		5,854,750	7,263,622	17,509,024	23,322,997
Net income:
Net income Consolidated		5,023,016	6,202,243	15,023,381	19,849,731
Depreciation and Amortization:
Depreciation and Amortization Consolidated		8,723,607	10,831,046	28,015,696	32,319,450
Capital Expenditure:
Capital Expenditure Consolidated		616	9,893	7,259	9,232,410
Identifiable assets:
Identifiable assets Consolidated		200,739,190		200,739,190		219,259,401
Gufeng [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated		43,762,058	45,022,730	85,576,564	82,787,611
Operating income :
Operating income Consolidated		4,805,591	6,999,283	10,468,423	12,126,494
Net income:
Net income Consolidated		3,577,278	5,048,243	7,247,542	8,223,840
Depreciation and Amortization:
Depreciation and Amortization Consolidated		747,160	840,225	2,221,221	2,539,935
Interest expense:
Interest expense Consolidated		211,734	363,958	943,413	1,179,617
Capital Expenditure:
Capital Expenditure Consolidated		1,962	544	1,962	13,578
Identifiable assets:
Identifiable assets Consolidated		152,211,833		152,211,833		165,267,975
Yuxing [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated		3,274,177	1,175,092	6,599,577	3,106,317
Operating income :
Operating income Consolidated		543,855	125,021	1,461,365	535,592
Net income:
Net income Consolidated		548,559	128,397	1,467,943	646,347
Depreciation and Amortization:
Depreciation and Amortization Consolidated		328,956	349,952	1,008,697	1,043,518
Capital Expenditure:
Capital Expenditure Consolidated		938	27,630	7,387	397,823
Identifiable assets:
Identifiable assets Consolidated		46,902,443		46,902,443		44,745,889
Green New Jersey [Member] | Segment Reconciling Items [Member]
Operating income :
Operating income Consolidated	[1]	0	0	0	0
Net income:
Net income Consolidated	[1]	0	80	29	122
Identifiable assets:
Identifiable assets Consolidated	[1]	50,921		50,921		312,198
Parent Company [Member] | Segment Reconciling Items [Member]
Operating income :
Operating income Consolidated	[2]	(41,454)	(381,644)	(261,208)	(1,338,332)
Stock compensation	[2]	(855,628)	(1,081,125)	(3,712,709)	(4,150,995)
Net income:
Net income Consolidated	[2]	(897,082)	$ (1,462,769)	(3,973,917)	$ (5,489,327)
Identifiable assets:
Identifiable assets Consolidated	[2]	$ (2,879)		$ (2,879)		$ (2,845)

[1] Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

[2] Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

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COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2016 USD ($)
Operating Leased Assets [Line Items]
2017	$ 16,896
2018	5,505
2019	5,505
2020	5,505
2021	$ 5,505

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COMMITMENTS AND CONTINGENCIES (Details Textual)	1 Months Ended				9 Months Ended
	Jun. 29, 2014 USD ($) m²	Jun. 29, 2014 CNY (¥) m²	Feb. 29, 2004 USD ($)	Feb. 29, 2004 CNY (¥)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Jun. 29, 2014 ft²
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense					$ 16,898	$ 5,505
Village Committee of Dong Gao Village and Zhen Nan Zhang Dai Village [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense			$ 480	¥ 3,119
Lease Term			50 years	50 years
Kingtone Information [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 3,797	¥ 24,480
Land Subject to Ground Leases	612	612					6,588
Lease Term	2 years	2 years
Date Of New Lease Agreement Entered	Jul. 01, 2014	Jul. 01, 2014

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VARIABLE INTEREST ENTITIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Current Assets
Cash and cash equivalents	$ 90,470,157	$ 74,785,851	$ 90,470,157	$ 74,785,851	$ 92,982,564	$ 26,890,321
Accounts receivable, net	74,730,414		74,730,414		68,528,598
Inventories	108,506,803		108,506,803		101,302,947
Advances to suppliers	37,331,983		37,331,983		40,910,837
Total Current Assets	312,135,041		312,135,041		304,184,346
Plant, Property and Equipment, Net	39,578,484		39,578,484		44,634,194
Intangible Assets, Net	21,433,707		21,433,707		23,805,746
Total Assets	399,901,508		399,901,508		429,582,618
Current Liabilities
Accounts payable	2,599,720		2,599,720		2,372,130
Amount due to related parties	2,206,144		2,206,144		2,068,102
Total Current Liabilities	24,179,198		24,179,198		56,633,144
Stockholders' equity	375,722,310		375,722,310		372,949,474
Total Liabilities and Stockholders' Equity	399,901,508		399,901,508		429,582,618
Revenue	78,638,474	79,487,215	189,788,745	184,840,179
Expenses	14,427,175	15,265,360	46,093,124	45,278,189
Net income (loss)	8,251,771	9,916,194	19,764,978	23,230,713
Variable Interest Entity, Primary Beneficiary [Member]
Current Assets
Cash and cash equivalents	235,350		235,350		79,867
Accounts receivable, net	135,092		135,092		72,748
Inventories	18,677,259		18,677,259		18,138,137
Other current assets	665,289		665,289		48,845
Advances to suppliers	3,222,535		3,222,535		61,739
Total Current Assets	22,935,525		22,935,525		18,401,336
Plant, Property and Equipment, Net	14,045,185		14,045,185		15,692,975
Construction In Progress	65,301		65,301		68,921
Intangible Assets, Net	9,856,432		9,856,432		10,582,657
Total Assets	46,902,443		46,902,443		44,745,889
Current Liabilities
Accounts payable	280,490		280,490		159,730
Accrued expenses and other payables	311,108		311,108		222,871
Amount due to related parties	44,305,540		44,305,540		43,488,198
Total Current Liabilities	44,616,648		44,616,648		43,870,799
Stockholders' equity	2,285,795		2,285,795		875,090
Total Liabilities and Stockholders' Equity	46,902,443		46,902,443		$ 44,745,889
Revenue	3,274,177	1,175,092	6,599,577	3,106,317
Expenses	2,725,619	1,046,695	5,131,634	2,459,970
Net income (loss)	$ 548,558	$ 128,397	$ 1,467,943	$ 646,347