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Concentrations and Litigation
6 Months Ended
Dec. 31, 2019
Risks and Uncertainties [Abstract]  
CONCENTRATIONS AND LITIGATION

NOTE 13 – CONCENTRATIONS AND LITIGATION

 

Market Concentration

 

All the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

 

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

 

Vendor and Customer Concentration

 

There was only one vendor which the Company purchased more than 10% of its raw materials, with the total of 10.4% of its raw materials for the six months ended December 31, 2019. Total purchases from this vendor are $3,534,955 for the six-month period ended December 31, 2019.

 

There were three vendors from each of which the Company purchased more than 10% of its raw materials, with the total of 34.3% of its raw materials for the six months ended December 31, 2018. Total purchases from these three vendors amounted to $33,149,745 for the six-month period ended December 31, 2018.

 

No customer accounted for over 10% of the Company's sales for the six months Ended December 31, 2019 and 2018.

 

Litigation

 

On October 9, 2019, a lawsuit was filed against the Company and certain of our officers in the United States District Court for the District of Nevada (the "Nevada Federal Court") by Plaintiff Glenn Little. The complaint alleges breach of fiduciary duty and shareholder oppression. The Company believes the action is without merit and vigorously opposed it.

 

On December 31, 2019, the lawsuit was dismissed.