NOTE 19 – RESTRICTED NET ASSETS

The Company’s operations are primarily conducted through its PRC subsidiaries, which can only pay dividends out of their retained earnings determined in accordance with the accounting standards and regulations in the PRC and after it has met the PRC requirements for appropriation to statutory reserves. In addition, the Company’s businesses and assets are primarily denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. These currency exchange control procedures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiaries to transfer their net assets to the Parent Company through loans, advances or cash dividends.

The Company’s PRC subsidiaries net assets as of June 30, 2017 and 2016 exceeded 25% of the Company’s consolidated net assets. Accordingly, condensed Parent Company financial statements have been prepared in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X, and are as follows.

Parent Company Financial Statements

PARENT COMPANY FINANCIAL INFORMATION OF CHINA GREEN AGRICULTURE, INC.

Condensed Balance Sheets	As of June 30,
	2017			2016
ASSETS
Current Assets:
Cash and cash equivalents	$	139,969		$	167,495
Other current assets		71			70
Total Current Assets		140,040			167,565

Long-term equity investment		404,406,925			376,321,912
Total long-term assets		404,406,925			376,321,912
Total Assets	$	404,546,965		$	376,489,477

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		1,988,743			1,388,743
Other payables and accrued expenses		4,815,649			4,401,882
Total Current Liabilities		7,018,913			6,005,145

Stockholders’ Equity
Common stock, $.001 par value, 115,197,165 shares authorized, 37,648,605 and 35,905,198, shares issued and outstanding as of June 30, 2016 and 2015, respectively		38,551			37,648
Additional paid in capital		128,915,651			127,593,932
Accumulated other comprehensive income		(5,127,444	)		(5,696,388	)
Retained earnings		273,701,295			248,549,140
Total Stockholders’ Equity		397,528,052			370,484,332
Total Liabilities and Stockholders’ Equity	$	404,546,965		$	376,489,477

Condensed Statements of Operations	Year ended June 30,
	2017		2016
Revenue	$	-	$	-
General and administrative expenses		2,364,598		5,768,770
Interest income		15		30
Equity investment in subsidiaries		27,516,737		30,472,933
Net income	$	25,152,153	$	24,704,193

Condensed Statements of Cash Flows	Year Ended June 30,
	2017			2016
Net cash provided by (used in) operating activities	$	(627,526	)	$	(138,881	)
Net cash provided by investing activities		-			-
Net cash provided by financing activities		600,000			-
Cash and cash equivalents, beginning balance		167,495			306,376
Cash and cash equivalents, ending balance	$	139,969		$	167,495

Notes to Condensed Parent Company Financial Information

As of June 30, 2017, and 2016, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except as separately disclosed in the Consolidated Financial Statements, if any. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.