Restricted Net Assets

12 Months Ended

Jun. 30, 2020

Disclosure Text Block Supplement [Abstract]

RESTRICTED NET ASSETS

NOTE 20 – 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, 2020 and 2019 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,
	2020			2019
ASSETS
Current Assets:
Cash and cash equivalents	$	65,520		$	78,406
Other current assets		169,071			71
Total Current Assets		234,590			78,476
Long-term equity investment		273,573,440			406,084,910
Total long-term assets		273,573,440			406,084,910
Total Assets	$	273,808,030		$	406,163,387
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	214,520		$	214,520
Amount due to related parties		3,192,986			2,592,986
Other payables and accrued expenses		7,594,602			6,800,194
Total Current Liabilities		11,002,108			9,607,701
Stockholders’ Equity
Common stock, $.001 par value, 115,197,165 shares authorized, 3,986,912 and 3,241,413 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively		6,350			3,987
Additional paid in capital		155,455,332			138,012,445
Accumulated other comprehensive income		(34,264,089	)		(19,821,211	)
Retained earnings		141,608,329			278,360,465
Total Stockholders’ Equity		262,805,922			396,555,686
Total Liabilities and Stockholders’ Equity	$	273,808,030		$	406,163,387

Condensed Statements of Operations

	Year ended June 30,
	2020			2019
Revenue	$	-		$	-
General and administrative expenses		1,555,269			1,807,010
Interest income		19			9
Provision for tax		-			-
Equity investment in subsidiaries		(135,196,887	)		13,397,397
Net income	$	(136,752,136	)	$	11,590,395

Condensed Statements of Cash Flows	Year Ended June 30,
	2020			2019
Net cash provided by (used in) operating activities	$	(10,864,886	)	$	(8,617,776	)
Net cash provided by (used in) investing activities		-			-
Net cash provided by (used in) financing activities		10,852,000			8,679,230
Cash and cash equivalents, beginning balance		78,405			(29,103,559	)
Cash and cash equivalents, ending balance	$	65,520		$	(29,042,104	)

Notes to Condensed Parent Company Financial Information

As of June 30, 2020, and 2019, 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.