NOTE 14 – SEGMENT REPORTING

As of March 31, 2018, the Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and the sales VIEs. Each of the four 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,
	2018			2017			2018			2017
Revenues from unaffiliated customers:
Jinong	$	27,490,333		$	26,316,821		$	80,475,373		$	84,570,215
Gufeng		38,932,597			30,858,499			81,602,384			67,734,572
Yuxing		3,041,891			2,781,003			6,788,282			6,590,728
VIES		13,086,062			21,349,305			40,416,989			43,039,748
Consolidated	$	82,550,883		$	81,305,628		$	209,283,028		$	201,935,263

Operating income:
Jinong	$	5,704,281		$	5,960,846		$	18,047,510		$	18,080,850
Gufeng		3,210,959			2,457,008			7,866,697			5,448,907
Yuxing		(951,474	)		244,978			(553,726	)		732,788
VIES		2,067,194			1,242,773			2,146,824			3,683,537
Reconciling item (1)		0			0			0			0
Reconciling item (2)		(404,960	)		(209,917	)		(1,035,731	)		(209,917	)
Reconciling item (3)--stock compensation					(1,801	)		0			(1,858,071	)
Consolidated	$	9,625,999		$	9,693,887		$	26,471,574		$	25,878,094

Net income:
Jinong	$	4,778,486		$	4,852,889		$	15,238,735		$	15,048,662
Gufeng		2,310,042			2,160,630			5,526,873			4,145,555
Yuxing		(951,805	)		245,239			(553,314	)		732,828
VIES		1,892,425			1,144,635			1,693,616			3,190,209
Reconciling item (1)		0			-			4			-
Reconciling item (2)		(404,960	)		(211,718	)		(1,035,731	)		(2,067,988	)
Reconciling item (3)		2,844						(322,214	)
Consolidated	$	7,627,033		$	8,191,675		$	20,547,969		$	21,049,266

Depreciation and Amortization:
Jinong	$	226,678		$	1,764,443		$	1,502,805		$	11,752,674
Gufeng		574,120			578,525			1,674,176			1,836,875
Yuxing		327,729			302,729			955,530			922,855
VIES		195,922			159,942			626,327			409,144
Consolidated	$	1,324,449		$	2,805,639		$	4,758,838		$	14,921,548

Interest expense:
Jinong		74,270			188,003			216,553			301,355
Gufeng		105,299			44,636			311,667			163,075
Yuxing		0			0			0			0
Sales VIEs		(97,559	)		0			(172,048	)		0
Consolidated	$	82,010		$	232,639		$	356,172		$	464,430

Capital Expenditure:
Jinong	$	537		$	1,186		$	4,686		$	2,979
Gufeng		(11,286	)		2,300			2,878			7,299
Yuxing		350			-			5,122			6,226
VIES		20,520			14,252			20,520			14,252
Consolidated	$	10,120		$	17,738		$	33,207		$	30,756

	As of
	March 31,			June 30,
	2018			2017
Identifiable assets:
Jinong	$	239,634,153		$	213,355,900
Gufeng		170,849,066			156,648,924
Yuxing		42,118,634			40,965,345
Sales VIES		45,628,711			44,571,422
Reconciling item (1)		482,949			142,918
Reconciling item (2)		(2,879	)		(2,879	)
Consolidated	$	498,710,634		$	455,681,630

(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.