XML 26 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Related Parties Transactions
3 Months Ended
Sep. 30, 2018
Related Parties Transactions [Abstract]  
RELATED PARTIES TRANSACTIONS

NOTE 8 - RELATED PARTIES TRANSACTIONS

 

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 $3,712,800). For the three months ended September 30, 2018 and 2017, Yuxing has sold approximately $71,962 and $133,690 products to 900LH.com.

 

The amount due from 900LH.com to Yuxing was $249,087 and $235,551 as of September 30, 2018 and June 30, 2018, respectively.

 

As of September 30, 2018, and June 30, 2018, the amount due to related parties was $3,232,715 and $3,271,619, respectively.  As of September 30, 2018, and June 30, 2018, $1,019,200 and $1,057,000, respectively were amounts that Gufeng borrowed from a related party, Xi’an Techteam Science & Technology Industry (Group) Co. Ltd., a company controlled by Mr. Zhuoyu 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.

 

As of September 30, 2018, and June 30, 2018, the Company’s subsidiary, Jinong, owed 900LH.com $431,907 and $393,565, respectively.

 

On June 29, 2016, Jinong signed an office lease with Kingtone Information Technology Co., Ltd. (“Kingtone Information”), of which Mr. Tao Li, former Chairman and CEO of the Company, serves as Chairman of its board of directors. Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provides for a two-year term effective as of July 1, 2016 with monthly rent of RMB24,480 (approximately $3,564)