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, 2018 and 2017 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,
	2018			2017
ASSETS
Current Assets:
Cash and cash equivalents	$	16,952		$	139,969
Other current assets		71			71
Total Current Assets		17022			140,040

Long-term equity investment		400,248,804			404,406,925
Total long-term assets		400,248,804			404,406,925
Total Assets	$	400,248,804		$	404,546,965

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		2,183,756			1,988,743
Other payables and accrued expenses		5,319,763			4,815,649
Total Current Liabilities		7,718,039			7,018,913

Stockholders’ Equity
Common stock, $.001 par value, 115,197,165 shares authorized, 38,896,945 and 38,551,265 shares issued and outstanding as of June 30, 2018 and June 30, 2017, respectively		38,897			38,551
Additional paid in capital		129,337,035			128,915,651
Accumulated other comprehensive income		(3,598,215	)		(5,127,444	)
Retained earnings		266,770,070			273,701,295
Total Stockholders’ Equity		392,547,787			397,528,052
Total Liabilities and Stockholders’ Equity	$	400,265,826		$	404,546,965

Condensed Statements of Operations	Year ended June 30,
	2018			2017
Revenue	$	-		$	-
General and administrative expenses		1,417,855			2,364,598
Interest income		6			15
Provision for tax		29,010,535			0
Equity investment in subsidiaries		23,497,159			27,516,737
Net income	$	(6,931,225	)	$	25,152,153

Condensed Statements of Cash Flows	Year Ended June 30,
	2018			2017
Net cash provided by (used in) operating activities	$	(29,438,540	)	$	(627,526	)
Net cash provided by investing activities		-			-
Net cash provided by financing activities		195,013			600,000
Cash and cash equivalents, beginning balance		139,969			167,495
Cash and cash equivalents, ending balance	$	(29,103,559	)	$	139,969

Notes to Condensed Parent Company Financial Information

As of June 30, 2018, and 2017, 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.