Amount Due to Related Parties

3 Months Ended

Sep. 30, 2016

Amount Due To Related Parties [Abstract]

AMOUNT DUE TO RELATED PARTIES

NOTE 7 - AMOUNT DUE TO RELATED PARTIES

As of September 30, 2016 and June 30, 2016, the amount due to related parties was $2,768,825 and $2,473,004, respectively.  As of September 30, 2016 and June 30, 2016, $1,088,183 and $1,092,243, 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. Company had other payable of $1.680,642, was an amount of advanced payable to our major shareholder.

At the end of December 2015, Yuxing entered into a sales agreement with the Company’s affiliate, 900LH.com Food Co., Ltd. ("900LH.com", previously announced as Xi'an Gem Grain Co., Ltd) 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 $3,822,450). For the three months ended September 30, 2016, Yuxing has sold approximately $694,259 products to 900LH.com.

On June 29, 2016, 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, 2016 with monthly rent of RMB26,684 (approximately $4,000).

At June 30, 2016, the Company’s subsidiary, Jinong, owed 900LH.com $43,737 and 900nong owned Jinong $13,518.

At June 30, 2016, the Company’s subsidiary, Gufeng, owned 900LH.com $7,738 and 900nong.com owed Gufeng $454,534.

At June 30, 2016, the Company’s variable interest entity, Xinyulei, owned 900LH.com $15,050 and 900LH.com owned Xinyulei $48,518.

At June 30, 2016, Mr Rujun Mo, the owner of Xinyulei and Xindeguo, had a bank loan of $301,000 under his personal term which is guaranteed by Xindeguo and Xinyulei. The purpose of this loan is to pay off the purchase of inventory for Xinyulei; At June 30, 2016, Mr. Mo had a personal loan of $316,050, which was borrowed from his family relatives. At June 30, 2016, Mr. Mo has paid $270,900 deposit for his membership card of 900LH.com. This member card shall enjoy free fixed amount of product and member service every month and it can withdraw at any time, but the membership and relevant services will be terminated.

At September 30, 2016, the Company’s subsidiary, Jinong, owed 900LH.com $42,259.

At September 30, 2016, the Company’s subsidiary, Gufeng, owned 900LH.com $6,064 and 900nong.com owed Gufeng $452,722.

At September 30, 2016, the Company’s variable interest entity, Xinyulei, owned 900LH.com $191,140.

At September 30, 2016, Mr Rujun Mo, the owner of Xinyulei and Xindeguo, had a bank loan of $299,800 under his personal term which is guaranteed by Xindeguo and Xinyulei. The purpose of this loan is to pay off the purchase of inventory for Xinyulei; At September 30, 2016, Mr. Mo had a personal loan of $314,790, which was borrowed from his family relatives. At September 30, 2016, Mr. Mo has paid $269,820 deposit for his membership card of 900LH.com. This member card shall enjoy free fixed amount of product and member service every month and it can withdraw at any time, but the membership and relevant services will be terminated.