Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 15, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ORANCO INC | |
Entity Central Index Key | 0001098996 | |
Trading Symbol | ORNC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Entity Emerging Growth Company | true | |
Entity Common Stock, Shares Outstanding | 98,191,480 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | ¥ 57,394,020 | ¥ 26,504,962 |
Trade receivables | 67,286,738 | 33,933,857 |
Inventories | 7,671,629 | 7,346,549 |
Deposits, prepayments and other receivables | 21,304,062 | 33,249,590 |
Prepaid land lease | 109,680 | 109,680 |
Total current assets | 153,766,129 | 101,144,638 |
Non-current assets | ||
Investment in an associate | 1,000,000 | |
Property, plant and equipment | 3,132,158 | 3,296,146 |
Prepaid land lease | 4,827,160 | 4,909,420 |
Total non-current assets | 8,959,318 | 8,205,566 |
Total assets | 162,725,447 | 109,350,204 |
Current liabilities | ||
Trade payables | 144,093 | 44,636 |
Receipts in advance, accruals and other payables | 6,633,402 | 5,140,025 |
Amount due to Director | 11,894,851 | 96,231,368 |
Current tax liabilities | 5,527,130 | 2,928,207 |
Bank borrowings | 2,250,000 | |
Total current liabilities | 26,449,476 | 104,344,236 |
Non-current liability | ||
Amount due to director | 84,781,805 | |
Shareholders' equity | ||
Share capital | 638,708 | 638,708 |
Fully paid shares to be issued | 2,126,520 | 2,126,520 |
Retained earnings | 48,728,938 | 2,240,740 |
Equity attributable to equity holders of the Company | 51,494,166 | 5,005,968 |
Non-controlling interest | ||
Total shareholders' equity | 51,494,166 | 5,005,968 |
Total liabilities and shareholders' equity | ¥ 162,725,447 | ¥ 109,350,204 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 98,191,480 | 98,191,480 |
Common stock, shares outstanding | 98,191,480 | 98,191,480 |
Common stock, shares to be issued | 321,296,000 | 321,296,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - CNY (¥) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | ¥ 32,654,876 | ¥ 26,085,393 | ¥ 96,037,641 | ¥ 83,258,237 |
Cost of sales | 8,801,480 | 6,914,306 | 24,395,247 | 23,002,777 |
Selling and distribution expenses | 884,727 | 1,010,459 | 3,020,324 | 3,338,043 |
Administrative expenses | 1,338,458 | 769,741 | 6,159,429 | 3,686,062 |
Total | 11,024,665 | 8,694,506 | 33,575,000 | 30,026,882 |
Other income | 32,471 | 11,289 | 90,807 | 131,447 |
Interest and other financial charges | 7,198 | 9,395 | 41,238 | 1,768,720 |
Income before income taxes | 21,655,484 | 17,392,781 | 62,512,210 | 51,594,082 |
Income taxes | 5,432,298 | 4,775,792 | 16,024,012 | 12,623,911 |
Net Income | 16,223,186 | 12,616,989 | 46,488,198 | 38,970,171 |
Attributable to: | ||||
Equity holders of the Company | 16,223,186 | 12,205,233 | 46,488,198 | 37,862,781 |
Former non-controlling interests | 411,756 | 1,107,390 | ||
Total | ¥ 16,223,186 | ¥ 12,616,989 | ¥ 46,488,198 | ¥ 38,970,171 |
Earnings per share: | ||||
Basic and diluted earnings per share | ¥ 0.04 | ¥ 2.86 | ¥ 0.11 | ¥ 8.87 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - CNY (¥) | Share capital | Shares to be issued | Additional paid-in capital | Retained Earnings | Attributable to the Company | Non-controlling interests | Total |
Balance at Jun. 30, 2017 | ¥ 27,775 | ¥ (27,774) | ¥ 52,253,435 | ¥ 52,253,436 | ¥ 2,882,756 | ¥ 55,136,192 | |
Total comprehensive income for the year | 37,862,781 | 37,862,781 | 1,107,390 | 38,970,171 | |||
Balance at Mar. 31, 2018 | 27,775 | (27,774) | 90,116,216 | 90,116,217 | 3,990,146 | 94,106,363 | |
Balance at Dec. 31, 2017 | 27,775 | (27,774) | 77,910,983 | 77,910,984 | 3,578,390 | 81,489,374 | |
Total comprehensive income for the year | 12,205,233 | 12,205,233 | 411,756 | 12,616,989 | |||
Balance at Mar. 31, 2018 | 27,775 | (27,774) | 90,116,216 | 90,116,217 | 3,990,146 | 94,106,363 | |
Balance at Jun. 30, 2018 | 638,708 | 2,126,520 | 2,240,740 | 5,005,968 | 5,005,968 | ||
Total comprehensive income for the year | 46,488,198 | 46,488,198 | 46,488,198 | ||||
Balance at Mar. 31, 2019 | 638,708 | 2,126,520 | 48,728,938 | 51,494,166 | 51,494,166 | ||
Balance at Dec. 31, 2018 | 638,708 | 2,126,520 | 32,505,752 | 35,270,980 | 35,270,980 | ||
Total comprehensive income for the year | 16,223,186 | 16,223,186 | 16,223,186 | ||||
Balance at Mar. 31, 2019 | ¥ 638,708 | ¥ 2,126,520 | ¥ 48,728,938 | ¥ 51,494,166 | ¥ 51,494,166 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - CNY (¥) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | ¥ 46,488,198 | ¥ 38,970,171 |
Adjustments to reconcile net income to cash generated from operating activities: | ||
Depreciation and amortization | 246,248 | 255,635 |
Changes in working capital: | ||
Inventories | (325,080) | 16,238 |
Trade receivables | (33,352,881) | (1,228,086) |
Deposits, prepayments and other receivables | 11,945,528 | 17,736,741 |
Trade payables | 99,457 | 410,493 |
Receipts in advance, accruals and other payables | 743,376 | (8,114,271) |
Current tax liabilities | 2,598,923 | (2,148,514) |
Amount due to Director | 445,288 | (1,240,888) |
Cash generated from operating activities | 28,889,057 | 44,657,519 |
Investing activities | ||
Acquisition of interest in an associate | (250,000) | |
Payments for acquisition of property, plant and equipment | (407,687) | |
Cash used in investing activities | (250,000) | (407,687) |
Financing activities | ||
Repayment of bank borrowings | (27,000,000) | |
Proceeds of bank borrowings | 2,250,000 | |
Cash used in financing activities | 2,250,000 | (27,000,000) |
Increase in cash and cash equivalents | 30,889,057 | 17,249,832 |
Cash and cash equivalents, beginning of the period | 26,504,962 | 6,607,407 |
Cash and cash equivalents, end of the period | 57,394,020 | 23,857,239 |
Supplemental disclosure of cash flows information | ||
Cash paid during the year for interest | (34,040) | (1,768,720) |
Cash paid during the year for income taxes | ¥ (13,427,680) | ¥ (10,475,397) |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (a) Description of Business Oranco, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on June 16, 1977. The Company has been in the business of the development of mineral deposits. During 1983 all activities were abandoned, and the Company had remained inactive until June 29, 2018 when it acquired the business of Reliant Galaxy International Limited (“Reliant”). The Company and its subsidiaries (the “Group”) are principally engaged in the trading of spirits in the People’s Republic of China (the “PRC”). As disclosed in the Form 8-K filed with the Securities and Exchange Commission on October 19, 2018, the Company entered into a business agreement with Guangzhou Silicon Technology Co., Ltd. on August 20, 2018 to have Guangzhou Silicon Technology Co., Ltd. develop an anti-counterfeiting laser recognition proprietary system using blockchain technology. Details of the subsidiaries are set out in note 20 to the consolidated financial statements. (b) The basis of consolidation and presentation The Consolidated Financial Statements include the Financial Statements of Oranco, Inc. and the Financial Statements of its wholly-owned subsidiaries. Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The accompanying financial statements have been prepared in accordance with the U.S. generally accepted accounting principles or GAAP. The Company operates in one reportable segment and solely within the PRC. Accordingly, no segment or geographic information has been presented. Non-controlling interests are shown as a component of shareholders’ equity on the consolidated balance sheet and the share of the net income attributable to non-controlling interests is shown as a component of net income in the consolidated statements of operations. Business Combinations The acquisition of other subsidiaries that meet the criteria for business combinations is accounted for using the acquisition method of accounting. The consideration transferred for the acquisition is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. Any contingent consideration to be transferred by the Group are recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognized, either in the Statement of Operations or as a change to other comprehensive income. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the identifiable net assets acquired and liabilities assumed. (c) Financial instruments Financial instruments of the Group primarily consist of cash and cash equivalents, trade receivables, deposits, prepayments and other receivables, prepaid land lease, trade payables, receipts in advance, accruals and other payables, and bank borrowings. The carrying values of the Group’s financial instruments approximate their fair values, principally because of the short-term maturity of these instruments or their terms. The Group has no derivative financial instruments. (d) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. (e) Revenue recognition The Group’s revenues are derived from sales of products recorded net of value added tax (“VAT”). Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery of the products has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. These criteria are related to each of the following major revenue generating activities described below. (i) Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, provided that the Group maintains neither managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. This is usually taken as the time when the goods are delivered and the customers have accepted the goods. The Company adopted ASU 2014-09, Revenue from Contracts with Customers, on July 1, 2018. The Company recognizes revenue when (or as) services are transferred to clients. Revenue is recognized based on the amount of consideration that management expects to receive in exchange for these services in accordance with the client. To determine the amount and timing of revenue recognition, the Company must (1) identify the contract with the client, (2) identify the performance obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the Company satisfies a performance obligation. (ii) interest income is recognized on an accrual basis using the effective interest method. (f) Trade receivables and allowance for doubtful accounts Trade receivables are stated at the amount the Group expects to collect. The Group maintains allowances for doubtful accounts for estimated losses. Management considers the following factors when determining the collectability of specific accounts: historical experience, creditworthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. Allowance for doubtful accounts is made and recorded into general and administrative expenses based on the aging of trade receivables and on any specifically identified receivables that may become uncollectible. Trade receivables which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. There is no allowance for doubtful accounts in these consolidated financial statements. (g) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. The components of inventories include raw materials, processing cost of finished goods and purchase cost of products. The Group routinely evaluate the net realizable value of the inventories in light of current market conditions and market trends and record a write-down against the cost of inventories should the net realizable value falls below the cost. (h) Property, plant and equipment and depreciation Property, plant and equipment are carried at cost less accumulated depreciation and any recorded impairment. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Category Estimated useful life Estimated residual values Building 20 years 0-10% Computer and office equipment 3 years 0-10% Repairs and maintenance are expensed as incurred and asset improvements are capitalized. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amounts of the property, plant and equipment. The indication could be an unfavorable development of a business or severe economic slowdown as well as reorganization of the operation. In assessing value in use, the estimated future cash flows are discounted to their present value, based on the time value of money and the risks specific to the country where the assets are located. (i) VAT and VAT refund VAT on sales is charged at 17% on revenue from product sales and is subsequently paid to the PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is recognized in other payables, and the excess of input VAT over output VAT is recognized in other receivables in the consolidated balance sheets. (j) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods. (k) Foreign currency translation Substantially all of the Group’s operations are conducted in China and as a result, the functional and reporting currency of the Group is the Chinese Renminbi. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Transactions in currencies other than the functional currency are converted into the functional currency at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. In translating the financial statements of the Company’s subsidiaries outside the PRC into the reporting currency, assets and liabilities are translated from the subsidiaries’ functional currencies to the reporting currency at the exchange rate at the balance sheet date. Equity amounts are translated at historical exchange rates; revenues, expenses, and other gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income/(loss) in the consolidated statements of operations. During 2018 and 2017, such translation adjustments were not material. (l) Income taxes Income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit of the related tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. On December 22, 2017, the United States enacted TCJA which instituted fundamental changes to the taxation of multinational corporations, including a reduction the U.S. corporate income tax rate to 21% beginning in 2018. The TCJA also requires a one-time transition tax on the mandatory deemed repatriation of the cumulative earnings of the Company’s foreign subsidiary as of December 31, 2017. To determine the amount of this transition tax, the Company must determine the amount of earnings generated since inception by the relevant foreign subsidiary, as well as the amount of non-U.S. income taxes paid on such earnings, in addition to potentially other factors. The Company acquired the foreign operations on 29 June 2018, hence the Company does not have any qualifying earnings or profits from its foreign subsidiary under the transition tax calculation thus no transition tax is payable. (m) Fair value measurement The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Group’s financial instruments include cash and cash equivalents, term deposits, trade and other receivables, and trade and other payables. The Group considers the carrying amounts approximate fair value because of the short maturity of these financial instruments. (n) Business combinations In a business combination achieved in stages, the Group remeasures its previously held equity interest in the acquire immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in earnings. (o) Transactions between entities under common control When accounting for a transfer of assets or exchange of shares between entities under common control of the Group, the carrying amounts of the assets and liabilities transferred shall remain unchanged subsequent to the transaction, and no gain or loss shall be recorded in the Group’s consolidated statements of operations. (p) Commitments and contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (q) Adoption of new accounting standards On July 1, 2018, we adopted ASU No. 2014-09, “Revenue from Contracts with Customers” and the related amendments using the modified retrospective method. The adoption of ASC 606 had no impact on total reported revenues, costs and net income. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations: Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017, and early adoption is permitted. The Company adopted this standard on July 1, 2018 and will apply the standard to any future business combinations. The adoption of the standard in the consolidated financial statements for the financial year ended June 30, 2019 will have no significant impact to the provision for income taxes and will have no impact to the net cash used in, or generated by, operating, investing, or financing activities in the Group’s consolidated statements of cash flows. (r) Recently issued accounting pronouncements not yet adopted In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The standard provides new authoritative guidance addressing eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The standard is effective for the Group in the first quarter of the fiscal year 2019. The Company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases. The standard increases transparency and comparability among organizations by requiring companies to recognize leased assets and related liabilities on the balance sheet and disclose key information about leasing arrangements. This standard is effective for the Group in the first quarter of the fiscal year 2020. The Group is evaluating the impact the adoption of this standard will have on its consolidated financial statements. The Group is finalizing the impact of the standard on its consolidated financial statements and disclosures, as well as changes to its systems, processes, and internal controls. The Company’s preliminary assessments are subject to change. |
Revenue and Other Income
Revenue and Other Income | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND OTHER INCOME | 2. REVENUE AND OTHER INCOME Revenue represents the invoiced spirits products sold to the external customers less discounts, returns, and surcharges. (unaudited) (unaudited) Revenue 96,037,641 83,258,237 Other income 90,807 131,447 96,128,448 83,389,684 All revenue is derived in China. A concentration analysis of the revenue is as follows: (unaudited) (unaudited) Customer A 13 % 19 % Customer B 12 % 19 % Customer C 12 % 11 % Customer D 11 % 11 % Customer E 11 % 10 % Customer F 10 % 8 % Others 32 % 21 % 100 % 100 % An analysis of other income is as follows: (unaudited) (unaudited) Bank interest income 58,336 42,658 Written back of other payables - 77,500 58,336 120,158 |
Selling and Distribution Expens
Selling and Distribution Expenses | 9 Months Ended |
Mar. 31, 2019 | |
Selling and Distribution Expenses [Abstract] | |
SELLING AND DISTRIBUTION EXPENSES | 3. SELLING AND DISTRIBUTION EXPENSES The following expenses are included in the selling and distribution expenses: (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Freight 16,209 36,303 Packaging cost 147,716 931,652 163,925 967,955 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 4. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consist of the following: March 31, 2019 June 30, Computer and office equipment 268,550 268,550 Building 3,754,625 3,754,625 4,023,175 4,023,175 Less: accumulated depreciation (891,017 ) (727,029 ) Property, plant and equipment, net, 3,132,158 3,296,146 |
Prepaid Land Lease, Net
Prepaid Land Lease, Net | 9 Months Ended |
Mar. 31, 2019 | |
Prepaid Land Lease, Net [Abstract] | |
PREPAID LAND LEASE, NET | 5. PREPAID LAND LEASE, NET Prepaid land lease, net, consists of the following: March 31, 2019 June 30, Prepaid land lease 5,412,120 5,412,120 Less: accumulated amortization (475,280 ) (393,020 ) Prepaid land lease, net 4,936,840 5,019,000 The carrying amounts of the prepaid land lease are analyzed as: March 31, 2019 June 30, Current assets 109,680 109,680 Non-current assets 4,827,160 4,909,420 4,936,840 5,019,000 Prepaid land lease represents the cost of the rights of the use of the land in respect of leasehold land in the People’s Republic of China, on which the Group’s buildings are situated. The lease term is 70 years, ending in 2082. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES Inventories consist of the following: March 31, 2019 June 30, Raw materials 3,702,029 4,451,541 Finished goods 3,785,667 2,622,873 Packaging material 183,933 272,135 7,671,629 7,346,549 |
Trade Receivables
Trade Receivables | 9 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
TRADE RECEIVABLES | 7. TRADE RECEIVABLES March 31, 2019 June 30, Trade receivables 67,286,738 33,933,857 67,286,738 33,933,857 No allowance for doubtful debts has been made for both years. The Group normally allows credit terms to well-established customers ranging from 30 to 150 days. The Group seeks to maintain strict control over its trade receivables. Overdue trade receivables are reviewed regularly by the Board of Directors. |
Deposits, Prepayments and Other
Deposits, Prepayments and Other Receivables | 9 Months Ended |
Mar. 31, 2019 | |
Deposits, Prepayments and Other Receivables [Abstract] | |
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES | 8. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES March 31, 2019 June 30, Prepaid expenses 20,706,252 23,571,363 Deposits - 9,000,000 Other receivables 597,810 678,227 21,304,062 33,249,590 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 9. CASH AND CASH EQUIVALENTS March 31, 2019 June 30, Cash on hand 199,553 394,082 Cash held in banks 57,194,467 26,110,880 57,394,020 26,504,962 Cash held in banks earns interest at floating rates based on daily bank deposit rates. |
Trade Payables
Trade Payables | 9 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
TRADE PAYABLES | 10. TRADE PAYABLES March 31, 2019 June 30, Trade payables 144,093 44,636 144,093 44,636 For the larger suppliers, the Group makes payment in advance for the inventories. For the smaller suppliers, the Group obtains credit terms ranging from 30 to 90 days. A concentration analysis of the suppliers based on the purchases made during the six-month periods is as follows: (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Supplier A 56 % 40 % Supplier B 22 % 16 % Supplier C 10 % 10 % Supplier D 3 % 9 % Supplier E 3 % 9 % Supplier F 1 % 8 % Others 5 % 8 % 100 % 100 % |
Receipts in Advance, Accruals a
Receipts in Advance, Accruals and Other Payables | 9 Months Ended |
Mar. 31, 2019 | |
Receipts in Advance, Accruals and Other Payables [Abstract] | |
RECEIPTS IN ADVANCE, ACCRUALS AND OTHER PAYABLES | 11. RECEIPTS IN ADVANCE, ACCRUALS AND OTHER PAYABLES Receipts in advance, accruals and other payables consist of the following: March 31, 2019 June 30, Accrued payroll and bonus 2,064,024 2,560,883 Other payables 887,706 734,122 Other tax payables 1,174,043 623,868 Receipt in advance 2,507,629 1,221,152 6,633,402 5,140,025 |
Amount Due to a Director
Amount Due to a Director | 9 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
AMOUNT DUE TO A DIRECTOR | 12. AMOUNT DUE TO A DIRECTOR March 31, 2019 June 30, Amount due to a director 96,676,656 96,231,368 96,676,656 96,231,368 March 31, 2019 June 30, Classified as: Non-current liabilities 84,781,805 - Current liabilities 11,894,851 96,231,368 96,676,656 96,231,368 The amount due to a director is interest-free, unsecured and not repayable on demand. Renminbi 94,051,934 of the amount due to a director relates to Reliant's acquisition of Sure Rich Investment (Group) Limited. The amount is due to the seller of Sure Rich Investment (Group) Limited, who is also a director of Reliant and the Company. |
Bank Borrowings
Bank Borrowings | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
BANK BORROWINGS | 13. BANK BORROWINGS March 31, 2019 June 30, Secured - at amortized cost Loans from bank – Note (i) 2,250,000 - 2, 250,000 - Classified as: Current liabilities 2, 250,000 - 2, 250,000 - Note: (i) Loan from the bank is bearing a fixed interest rate ranging from 5.44% per annum. |
Share Capital and Capital Manag
Share Capital and Capital Management | 9 Months Ended |
Mar. 31, 2019 | |
Share Capital and Capital Management [Abstract] | |
SHARE CAPITAL AND CAPITAL MANAGEMENT | 14. SHARE CAPITAL AND CAPITAL MANAGEMENT Issued and fully paid Shares to be issued Company Number of shares value US$ value RMB Number of shares value US$ value RMB At June 30, 2018 98,191,480 98,191 638,708 321,296,000 321,296 2,126,520 Common stock conversion Conversion of amount due to a director Shares issued for cash Shares issued as consideration for business acquisition Shares to be issued as consideration for business acquisition Reverse merger At March 31, 2019 98,191,480 98,191 638,708 321,296,000 321,296 2,126,520 Each share has a nominal value of US$0.001 per share. The shares to be issued as consideration for business acquisition are the 321,296,000 new shares at $0.001 per share as part of the consideration of the acquisition of Reliant Galaxy International Limited. The aggregated nominal value of the shares is US$321,296. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES The Company is subject to taxes in the USA. The Company has had no taxable income under Federal or State tax laws. The Company has loss carryforwards totaling $359,065 that may be offset against future federal income taxes. If not used, the carryforwards will expire 20 years after they are incurred. The Company's subsidiary in the BVI is not subject to taxation. The Company's Hong Kong subsidiary is subject to taxes in Hong Kong. The Hong Kong subsidiary has had no taxable income. The Company's PRC subsidiaries are subject to taxes in China. The applicable PRC statutory income tax rate is 25% according to the Enterprise Income Tax Law. A reconciliation of the income tax expenses in China is set out below: (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Profit before income tax 62,512,210 51,594,082 Taxation at the applicable tax rate of 25% 15,768,870 12,898,521 Tax effect on non-taxable income (285,732 ) - Tax effects of expense that are not deductible 540,874 15,469 (Over)/under-provision in respect of previous year - (290,079 ) Income taxes 16,024,012 12,623,911 |
Contribution Plan in the PRC
Contribution Plan in the PRC | 9 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
CONTRIBUTION PLAN IN THE PRC | 16. CONTRIBUTION PLAN IN THE PRC As stipulated by the PRC state regulations, the subsidiaries in the PRC participate in the state-run defined contribution retirement scheme. All employees are entitled to an annual pension payment equal to a fixed proportion of the average basic salary of the geographical area of their last employment at their retirement date. The PRC subsidiaries are required to make contributions to the local social security bureau at 29.4% to 37.4% of the previous year's average basic salary amount of the geographical area where the employees are under employment with the PRC subsidiaries. The Group has no obligation for the payment of pension benefits beyond the annual contributions as set out above. According to the relevant rules and regulations of the PRC, the PRC subsidiaries and their employees are each required to make contributions to an accommodation fund at 9% of the salaries and wages of the employees which are administered by the Public Accumulation Funds Administration Centre. There is no further obligation for the Group except for such contributions to the accommodation fund. The Group had no significant obligation apart from the contributions as stated above. |
Operating Lease Arrangement
Operating Lease Arrangement | 9 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
OPERATING LEASE ARRANGEMENT | 17. OPERATING LEASE ARRANGEMENT The Group has total future minimum lease payments under non-cancellable operating lease payable as follows: (unaudited) Nine months ended March 31, 2019 June 30, Within 1 year 454,331 134,294 After 1 year but within 2 years 75,985 18,000 After 2 years but within 3 years - 9,000 After 3 years - - 530,316 161,294 The Group is the lessee of a few office premises and staff residence held under operating leases. The leases typically run for an initial period of one to five years. |
Related Party Balances and Tran
Related Party Balances and Transactions | 9 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 18. RELATED PARTY BALANCES AND TRANSACTIONS The Group made sales to Fuqing Jing Hong Trading Co., Ltd, the director of which was a family member of the CEO Mr. Yang Peng. The family resigned from Fuqing Jing Hong Trading Co., Ltd on June 28, 2018, hence Fuqing Jing Hong ceased to be a related party on June 28, 2018. (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Revenue - 14,394,218 - 14,394,218 Management is of the opinion that these related party transactions were conducted in the normal course of business of the Group with standard sales terms and conditions. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | 19. CONTINGENT LIABILITIES At the end of each reporting period, neither the Group nor the Company had any significant contingent liabilities. |
Details of Subsidiaries
Details of Subsidiaries | 9 Months Ended |
Mar. 31, 2019 | |
Details of Subsidiaries [Abstract] | |
DETAILS OF SUBSIDIARIES | 20. DETAILS OF SUBSIDIARIES Company name Place and date of incorporation Capital Attributable Equity Principal activities Reliant Galaxy International Limited Established in British Virgin Islands on January 3, 2017 Registered and 100 % Investment holding Sure Rich Investment Established in Share capital 100 % Investment holding (Group) Limited Hong Kong RMB 1 Fujian Jinou Trading Co., Ltd. Established in the PRC Registered and 100 % Investment holding and Trading of spirit Fenyang Huaxin Spirit Development Co., Ltd. Established in the PRC Registered and 100 % Trading of spirit Fenyang Jinqiang Spirit Co., Ltd. Established in the PRC Registered and 100 % Trading of spirit Beijing Huaxin Tianchuang Enterprise Management Consulting Co., Ltd. Established in the PRC Registered and 51 Note % (i) Dormant Notes: (i) The subsidiary was registered with payable share capital and the Company committed to pay up its share of the issued capital in the amount of RMB 510,000 on March 31, 2038, which is 20 years from the date of incorporation permitted by the Regulation of the People's Republic of China on Company Registration. The amount due to the subsidiary is interest-free and unsecured. |
Details of an Assocaite
Details of an Assocaite | 9 Months Ended |
Mar. 31, 2019 | |
Details of an Assocaite [Abstract] | |
DETAILS OF AN ASSOCAITE | 21. DETAILS OF AN ASSOCAITE Company name Place and date of incorporation Capital Attributable Equity interest Principal activities Guangzhou Silicon Technology Co., Ltd Established in the PRC on September 8, 2015 Registered and issued capital of RMB5,000,000 20 Note % (i) Development, sale and provision of software solutions Notes: (i) On September 1, 2018, Fenyang Huaxin Spirit Development Co., Ltd acquired shares of 20% of the associate Guangzhou Silicon Technology Co., Ltd which then became an associate of the Company. The associate's results were not material to the Group in the period to March 31, 2019. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | (a) Description of Business Oranco, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on June 16, 1977. The Company has been in the business of the development of mineral deposits. During 1983 all activities were abandoned, and the Company had remained inactive until June 29, 2018 when it acquired the business of Reliant Galaxy International Limited (“Reliant”). The Company and its subsidiaries (the “Group”) are principally engaged in the trading of spirits in the People’s Republic of China (the “PRC”). As disclosed in the Form 8-K filed with the Securities and Exchange Commission on October 19, 2018, the Company entered into a business agreement with Guangzhou Silicon Technology Co., Ltd. on August 20, 2018 to have Guangzhou Silicon Technology Co., Ltd. develop an anti-counterfeiting laser recognition proprietary system using blockchain technology. Details of the subsidiaries are set out in note 20 to the consolidated financial statements. |
The basis of consolidation and presentation | (b) The basis of consolidation and presentation The Consolidated Financial Statements include the Financial Statements of Oranco, Inc. and the Financial Statements of its wholly-owned subsidiaries. Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. The accompanying financial statements have been prepared in accordance with the U.S. generally accepted accounting principles or GAAP. The Company operates in one reportable segment and solely within the PRC. Accordingly, no segment or geographic information has been presented. Non-controlling interests are shown as a component of shareholders’ equity on the consolidated balance sheet and the share of the net income attributable to non-controlling interests is shown as a component of net income in the consolidated statements of operations. Business Combinations The acquisition of other subsidiaries that meet the criteria for business combinations is accounted for using the acquisition method of accounting. The consideration transferred for the acquisition is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. Any contingent consideration to be transferred by the Group are recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognized, either in the Statement of Operations or as a change to other comprehensive income. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the identifiable net assets acquired and liabilities assumed. |
Financial instruments | (c) Financial instruments Financial instruments of the Group primarily consist of cash and cash equivalents, trade receivables, deposits, prepayments and other receivables, prepaid land lease, trade payables, receipts in advance, accruals and other payables, and bank borrowings. The carrying values of the Group’s financial instruments approximate their fair values, principally because of the short-term maturity of these instruments or their terms. The Group has no derivative financial instruments. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. |
Revenue recognition | (e) Revenue recognition The Group’s revenues are derived from sales of products recorded net of value added tax (“VAT”). Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery of the products has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. These criteria are related to each of the following major revenue generating activities described below. (i) Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, provided that the Group maintains neither managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. This is usually taken as the time when the goods are delivered and the customers have accepted the goods. The Company adopted ASU 2014-09, Revenue from Contracts with Customers, on July 1, 2018. The Company recognizes revenue when (or as) services are transferred to clients. Revenue is recognized based on the amount of consideration that management expects to receive in exchange for these services in accordance with the client. To determine the amount and timing of revenue recognition, the Company must (1) identify the contract with the client, (2) identify the performance obligations in the contracts, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the Company satisfies a performance obligation. (ii) interest income is recognized on an accrual basis using the effective interest method. |
Trade receivables and allowance for doubtful accounts | (f) Trade receivables and allowance for doubtful accounts Trade receivables are stated at the amount the Group expects to collect. The Group maintains allowances for doubtful accounts for estimated losses. Management considers the following factors when determining the collectability of specific accounts: historical experience, creditworthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. Allowance for doubtful accounts is made and recorded into general and administrative expenses based on the aging of trade receivables and on any specifically identified receivables that may become uncollectible. Trade receivables which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. There is no allowance for doubtful accounts in these consolidated financial statements. |
Inventories | (g) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. The components of inventories include raw materials, processing cost of finished goods and purchase cost of products. The Group routinely evaluate the net realizable value of the inventories in light of current market conditions and market trends and record a write-down against the cost of inventories should the net realizable value falls below the cost. |
Property, plant and equipment and depreciation | (h) Property, plant and equipment and depreciation Property, plant and equipment are carried at cost less accumulated depreciation and any recorded impairment. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Category Estimated useful life Estimated residual values Building 20 years 0-10% Computer and office equipment 3 years 0-10% Repairs and maintenance are expensed as incurred and asset improvements are capitalized. Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amounts of the property, plant and equipment. The indication could be an unfavorable development of a business or severe economic slowdown as well as reorganization of the operation. In assessing value in use, the estimated future cash flows are discounted to their present value, based on the time value of money and the risks specific to the country where the assets are located. |
VAT and VAT refund | (i) VAT and VAT refund VAT on sales is charged at 17% on revenue from product sales and is subsequently paid to the PRC tax authorities after netting input VAT on purchases. The excess of output VAT over input VAT is recognized in other payables, and the excess of input VAT over output VAT is recognized in other receivables in the consolidated balance sheets. |
Operating leases | (j) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods. |
Foreign currency translation | (k) Foreign currency translation Substantially all of the Group’s operations are conducted in China and as a result, the functional and reporting currency of the Group is the Chinese Renminbi. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Transactions in currencies other than the functional currency are converted into the functional currency at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized in the consolidated statements of operations. In translating the financial statements of the Company’s subsidiaries outside the PRC into the reporting currency, assets and liabilities are translated from the subsidiaries’ functional currencies to the reporting currency at the exchange rate at the balance sheet date. Equity amounts are translated at historical exchange rates; revenues, expenses, and other gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income/(loss) in the consolidated statements of operations. During 2018 and 2017, such translation adjustments were not material. |
Income taxes | (l) Income taxes Income taxes are provided for in accordance with the laws and regulations applicable to the Group as enacted by the relevant tax authorities. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit of the related tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. On December 22, 2017, the United States enacted TCJA which instituted fundamental changes to the taxation of multinational corporations, including a reduction the U.S. corporate income tax rate to 21% beginning in 2018. The TCJA also requires a one-time transition tax on the mandatory deemed repatriation of the cumulative earnings of the Company’s foreign subsidiary as of December 31, 2017. To determine the amount of this transition tax, the Company must determine the amount of earnings generated since inception by the relevant foreign subsidiary, as well as the amount of non-U.S. income taxes paid on such earnings, in addition to potentially other factors. The Company acquired the foreign operations on 29 June 2018, hence the Company does not have any qualifying earnings or profits from its foreign subsidiary under the transition tax calculation thus no transition tax is payable. |
Fair value measurement | (m) Fair value measurement The Group defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Group’s financial instruments include cash and cash equivalents, term deposits, trade and other receivables, and trade and other payables. The Group considers the carrying amounts approximate fair value because of the short maturity of these financial instruments. |
Business combinations | (n) Business combinations In a business combination achieved in stages, the Group remeasures its previously held equity interest in the acquire immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in earnings. |
Transactions between entities under common control | (o) Transactions between entities under common control When accounting for a transfer of assets or exchange of shares between entities under common control of the Group, the carrying amounts of the assets and liabilities transferred shall remain unchanged subsequent to the transaction, and no gain or loss shall be recorded in the Group’s consolidated statements of operations. |
Commitments and contingencies | (p) Commitments and contingencies In the normal course of business, the Group is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Adoption of new accounting standards | (q) Adoption of new accounting standards On July 1, 2018, we adopted ASU No. 2014-09, “Revenue from Contracts with Customers” and the related amendments using the modified retrospective method. The adoption of ASC 606 had no impact on total reported revenues, costs and net income. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations: Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017, and early adoption is permitted. The Company adopted this standard on July 1, 2018 and will apply the standard to any future business combinations. The adoption of the standard in the consolidated financial statements for the financial year ended June 30, 2019 will have no significant impact to the provision for income taxes and will have no impact to the net cash used in, or generated by, operating, investing, or financing activities in the Group’s consolidated statements of cash flows. |
Recently issued accounting pronouncements not yet adopted | (r) Recently issued accounting pronouncements not yet adopted In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The standard provides new authoritative guidance addressing eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain transactions are presented and classified in the statement of cash flows. The standard is effective for the Group in the first quarter of the fiscal year 2019. The Company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases. The standard increases transparency and comparability among organizations by requiring companies to recognize leased assets and related liabilities on the balance sheet and disclose key information about leasing arrangements. This standard is effective for the Group in the first quarter of the fiscal year 2020. The Group is evaluating the impact the adoption of this standard will have on its consolidated financial statements. The Group is finalizing the impact of the standard on its consolidated financial statements and disclosures, as well as changes to its systems, processes, and internal controls. The Company’s preliminary assessments are subject to change. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Summary Of Business And Significant Accounting Policies [Abstract] | |
Schedule of a straight-line basis over the following estimated useful lives | Category Estimated useful life Estimated residual values Building 20 years 0-10% Computer and office equipment 3 years 0-10% |
Revenue and Other Income (Table
Revenue and Other Income (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Schedule of invoiced spirits products sold to the external customers less discounts, returns, and surcharges | (unaudited) (unaudited) Revenue 96,037,641 83,258,237 Other income 90,807 131,447 96,128,448 83,389,684 |
Schedule of other income | (unaudited) (unaudited) Bank interest income 58,336 42,658 Written back of other payables - 77,500 58,336 120,158 |
Revenue [Member] | |
Schedule of concentration analysis of the revenue | (unaudited) (unaudited) Customer A 13 % 19 % Customer B 12 % 19 % Customer C 12 % 11 % Customer D 11 % 11 % Customer E 11 % 10 % Customer F 10 % 8 % Others 32 % 21 % 100 % 100 % |
Selling and Distribution Expe_2
Selling and Distribution Expenses (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Selling and Distribution Expenses [Abstract] | |
Schedule of selling and distribution expenses | (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Freight 16,209 36,303 Packaging cost 147,716 931,652 163,925 967,955 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | March 31, 2019 June 30, Computer and office equipment 268,550 268,550 Building 3,754,625 3,754,625 4,023,175 4,023,175 Less: accumulated depreciation (891,017 ) (727,029 ) Property, plant and equipment, net, 3,132,158 3,296,146 |
Prepaid Land Lease, Net (Tables
Prepaid Land Lease, Net (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Prepaid Land Lease, Net [Abstract] | |
Schedule of prepaid land lease, net | March 31, 2019 June 30, Prepaid land lease 5,412,120 5,412,120 Less: accumulated amortization (475,280 ) (393,020 ) Prepaid land lease, net 4,936,840 5,019,000 |
Schedule of carrying amounts of prepaid land lease | March 31, 2019 June 30, Current assets 109,680 109,680 Non-current assets 4,827,160 4,909,420 4,936,840 5,019,000 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, 2019 June 30, Raw materials 3,702,029 4,451,541 Finished goods 3,785,667 2,622,873 Packaging material 183,933 272,135 7,671,629 7,346,549 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of trade receivables | March 31, 2019 June 30, Trade receivables 67,286,738 33,933,857 67,286,738 33,933,857 |
Deposits, Prepayments and Oth_2
Deposits, Prepayments and Other Receivables (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Deposits, Prepayments and Other Receivables [Abstract] | |
Schedule of deposits and prepaid expenses | March 31, 2019 June 30, Prepaid expenses 20,706,252 23,571,363 Deposits - 9,000,000 Other receivables 597,810 678,227 21,304,062 33,249,590 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | March 31, 2019 June 30, Cash on hand 199,553 394,082 Cash held in banks 57,194,467 26,110,880 57,394,020 26,504,962 |
Trade Payables (Tables)
Trade Payables (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Schedule of trade payables | March 31, 2019 June 30, Trade payables 144,093 44,636 144,093 44,636 |
Suppliers [Member] | |
Schedule of concentration analysis of the suppliers | (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Supplier A 56 % 40 % Supplier B 22 % 16 % Supplier C 10 % 10 % Supplier D 3 % 9 % Supplier E 3 % 9 % Supplier F 1 % 8 % Others 5 % 8 % 100 % 100 % |
Receipts in Advance, Accruals_2
Receipts in Advance, Accruals and Other Payables (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Receipts in Advance, Accruals and Other Payables [Abstract] | |
Schedule of receipts in advance, accruals and other payables | March 31, 2019 June 30, Accrued payroll and bonus 2,064,024 2,560,883 Other payables 887,706 734,122 Other tax payables 1,174,043 623,868 Receipt in advance 2,507,629 1,221,152 6,633,402 5,140,025 |
Amount Due to a Director (Table
Amount Due to a Director (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of amount due to a director | March 31, 2019 June 30, Amount due to a director 96,676,656 96,231,368 96,676,656 96,231,368 |
Schedule of amount due to a director classified | March 31, 2019 June 30, Classified as: Non-current liabilities 84,781,805 - Current liabilities 11,894,851 96,231,368 96,676,656 96,231,368 |
Bank Borrowings (Tables)
Bank Borrowings (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of bank borrowings | March 31, 2019 June 30, Secured - at amortized cost Loans from bank – Note (i) 2,250,000 - 2, 250,000 - Classified as: Current liabilities 2, 250,000 - 2, 250,000 - Note: (i) Loan from the bank is bearing a fixed interest rate ranging from 5.44% per annum. |
Share Capital and Capital Man_2
Share Capital and Capital Management (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Share Capital and Capital Management [Abstract] | |
Schedule of share capital and capital management | Issued and fully paid Shares to be issued Company Number of shares value US$ value RMB Number of shares value US$ value RMB At June 30, 2018 98,191,480 98,191 638,708 321,296,000 321,296 2,126,520 Common stock conversion Conversion of amount due to a director Shares issued for cash Shares issued as consideration for business acquisition Shares to be issued as consideration for business acquisition Reverse merger At March 31, 2019 98,191,480 98,191 638,708 321,296,000 321,296 2,126,520 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of the income tax expenses | (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Profit before income tax 62,512,210 51,594,082 Taxation at the applicable tax rate of 25% 15,768,870 12,898,521 Tax effect on non-taxable income (285,732 ) - Tax effects of expense that are not deductible 540,874 15,469 (Over)/under-provision in respect of previous year - (290,079 ) Income taxes 16,024,012 12,623,911 |
Operating Lease Arrangement (Ta
Operating Lease Arrangement (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of future minimum lease payments under non-cancellable operating lease payable | (unaudited) Nine months ended March 31, 2019 June 30, Within 1 year 454,331 134,294 After 1 year but within 2 years 75,985 18,000 After 2 years but within 3 years - 9,000 After 3 years - - 530,316 161,294 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of sales made to related party | (unaudited) Nine months ended March 31, 2019 (unaudited) Nine months ended March 31, 2018 Revenue - 14,394,218 - 14,394,218 |
Details of Subsidiaries (Tables
Details of Subsidiaries (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Details of Subsidiaries [Abstract] | |
Schedule of details of subsidiaries | Company name Place and date of incorporation Capital Attributable Equity Principal activities Reliant Galaxy International Limited Established in British Virgin Islands on January 3, 2017 Registered and 100 % Investment holding Sure Rich Investment Established in Share capital 100 % Investment holding (Group) Limited Hong Kong RMB 1 Fujian Jinou Trading Co., Ltd. Established in the PRC Registered and 100 % Investment holding and Trading of spirit Fenyang Huaxin Spirit Development Co., Ltd. Established in the PRC Registered and 100 % Trading of spirit Fenyang Jinqiang Spirit Co., Ltd. Established in the PRC Registered and 100 % Trading of spirit Beijing Huaxin Tianchuang Enterprise Management Consulting Co., Ltd. Established in the PRC Registered and 51 Note % (i) Dormant Notes: (i) The subsidiary was registered with payable share capital and the Company committed to pay up its share of the issued capital in the amount of RMB 510,000 on March 31, 2038, which is 20 years from the date of incorporation permitted by the Regulation of the People's Republic of China on Company Registration. The amount due to the subsidiary is interest-free and unsecured. |
Details of an Assocaite (Tables
Details of an Assocaite (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Details of an Assocaite [Abstract] | |
Schedule of details of an assocaite | Company name Place and date of incorporation Capital Attributable Equity interest Principal activities Guangzhou Silicon Technology Co., Ltd Established in the PRC on September 8, 2015 Registered and issued capital of RMB5,000,000 20 Note % (i) Development, sale and provision of software solutions Notes: (i) On September 1, 2018, Fenyang Huaxin Spirit Development Co., Ltd acquired shares of 20% of the associate Guangzhou Silicon Technology Co., Ltd which then became an associate of the Company. The associate's results were not material to the Group in the period to March 31, 2019. |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies (Details) | 9 Months Ended |
Mar. 31, 2019 | |
Building [Member] | |
Estimated useful life | 20 years |
Building [Member] | Minimum [Member] | |
Estimated residual values | 0.00% |
Building [Member] | Maximum [Member] | |
Estimated residual values | 10.00% |
Computer and office equipment [Member] | |
Estimated useful life | 3 years |
Computer and office equipment [Member] | Minimum [Member] | |
Estimated residual values | 0.00% |
Computer and office equipment [Member] | Maximum [Member] | |
Estimated residual values | 10.00% |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies (Details Textual) | 9 Months Ended |
Mar. 31, 2019 | |
Summary of Business and Significant Accounting Policies (Textual) | |
Percentage of VAT on sales | 17.00% |
Likelihood, description | An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |
U.S. corporate income tax rate | 21.00% |
Revenue and Other Income (Detai
Revenue and Other Income (Details) - CNY (¥) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue | ¥ 32,654,876 | ¥ 26,085,393 | ¥ 96,037,641 | ¥ 83,258,237 |
Other income | 58,336 | 120,158 | ||
Total | ¥ 96,128,448 | ¥ 83,389,684 |
Revenue and Other Income (Det_2
Revenue and Other Income (Details 1) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue [Member] | ||
Percentage of concentration analysis of the revenue | 100.00% | 100.00% |
Customer A [Member] | ||
Percentage of concentration analysis of the revenue | 13.00% | 19.00% |
Customer B [Member] | ||
Percentage of concentration analysis of the revenue | 12.00% | 19.00% |
Customer C [Member] | ||
Percentage of concentration analysis of the revenue | 12.00% | 11.00% |
Customer D [Member] | ||
Percentage of concentration analysis of the revenue | 11.00% | 11.00% |
Customer E [Member] | ||
Percentage of concentration analysis of the revenue | 11.00% | 10.00% |
Customer F [Member] | ||
Percentage of concentration analysis of the revenue | 10.00% | 8.00% |
Others [Member] | ||
Percentage of concentration analysis of the revenue | 32.00% | 21.00% |
Revenue and Other Income (Det_3
Revenue and Other Income (Details 2) - CNY (¥) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Bank interest income | ¥ 58,336 | ¥ 42,658 |
Written back of other payables | 77,500 | |
Other income | ¥ 58,336 | ¥ 120,158 |
Selling and Distribution Expe_3
Selling and Distribution Expenses (Details) - CNY (¥) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Selling and Distribution Expenses [Abstract] | ||
Freight | ¥ 16,209 | ¥ 36,303 |
Packaging cost | 147,716 | 931,652 |
Selling and distribution expenses | ¥ 163,925 | ¥ 967,955 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Property, plant and equipment, gross | ¥ 4,023,175 | ¥ 4,023,175 |
Less: accumulated depreciation | (891,017) | (727,029) |
Property, plant and equipment, net | 3,132,158 | 3,296,146 |
Computer and office equipment [Member] | ||
Property, plant and equipment, gross | 268,550 | 268,550 |
Building [Member] | ||
Property, plant and equipment, gross | ¥ 3,754,625 | ¥ 3,754,625 |
Prepaid Land Lease, Net (Detail
Prepaid Land Lease, Net (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Prepaid Land Lease, Net [Abstract] | ||
Prepaid land lease | ¥ 5,412,120 | ¥ 5,412,120 |
Less: accumulated amortization | (475,280) | (393,020) |
Prepaid land lease, net | ¥ 4,936,840 | ¥ 5,019,000 |
Prepaid Land Lease, Net (Deta_2
Prepaid Land Lease, Net (Details 1) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Prepaid Land Lease, Net [Abstract] | ||
Current assets | ¥ 109,680 | ¥ 109,680 |
Non-current assets | 4,827,160 | 4,909,420 |
Prepaid land lease, net | ¥ 4,936,840 | ¥ 5,019,000 |
Prepaid Land Lease, Net (Deta_3
Prepaid Land Lease, Net (Details Textual) | 9 Months Ended |
Mar. 31, 2019 | |
Prepaid Land Lease, Net (Textual) | |
Description of lease periods | 70 years, ending in 2082. |
Inventories (Details)
Inventories (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | ¥ 3,702,029 | ¥ 4,451,541 |
Finished goods | 3,785,667 | 2,622,873 |
Packaging material | 183,933 | 272,135 |
Inventories, net | ¥ 7,671,629 | ¥ 7,346,549 |
Trade Receivables (Details)
Trade Receivables (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Trade receivables | ¥ 67,286,738 | ¥ 33,933,857 |
Trade receivables [Member] | ||
Trade receivables | ¥ 67,286,738 | ¥ 33,933,857 |
Trade Receivables (Details Tex
Trade Receivables (Details Textual) | 9 Months Ended |
Mar. 31, 2019 | |
Trade Receivables (Textual) | |
Credit terms, description | The Group normally allows credit terms to well-established customers ranging from 30 to 150 days. |
Deposits, Prepayments and Oth_3
Deposits, Prepayments and Other Receivables (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Deposits, Prepayments and Other Receivables [Line Items] | ||
Prepaid expenses | ¥ 20,706,252 | ¥ 23,571,363 |
Deposits | 9,000,000 | |
Other receivables | 597,810 | 678,227 |
Total | ¥ 21,304,062 | ¥ 33,249,590 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash on hand | ¥ 199,553 | ¥ 394,082 | ||
Cash held in banks | 57,194,467 | 26,110,880 | ||
Cash and cash equivalents | ¥ 57,394,020 | ¥ 26,504,962 | ¥ 23,857,239 | ¥ 6,607,407 |
Trade Payables (Details)
Trade Payables (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | ||
Trade payables | ¥ 144,093 | ¥ 44,636 |
Total | ¥ 144,093 | ¥ 44,636 |
Trade Payables (Details 1)
Trade Payables (Details 1) - Purchases [Member] | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Concentration risk percentage | 100.00% | 100.00% |
Supplier A [Member] | ||
Concentration risk percentage | 56.00% | 40.00% |
Supplier B [Member] | ||
Concentration risk percentage | 22.00% | 16.00% |
Supplier C [Member] | ||
Concentration risk percentage | 10.00% | 10.00% |
Supplier D [Member] | ||
Concentration risk percentage | 3.00% | 9.00% |
Supplier E [Member] | ||
Concentration risk percentage | 3.00% | 9.00% |
Supplier F [Member] | ||
Concentration risk percentage | 1.00% | 8.00% |
Others [Member] | ||
Concentration risk percentage | 5.00% | 8.00% |
Trade Payables (Details Textual
Trade Payables (Details Textual) | 9 Months Ended |
Mar. 31, 2019 | |
Trade Payables (Textual) | |
Credit terms | For the smaller suppliers, the Group obtains credit terms ranging from 30 to 90 days. |
Receipts in Advance, Accruals_3
Receipts in Advance, Accruals and Other Payables (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Receipts in Advance, Accruals and Other Payables [Abstract] | ||
Accrued payroll and bonus | ¥ 2,064,024 | ¥ 2,560,883 |
Other payables | 887,706 | 734,122 |
Other tax payables | 1,174,043 | 623,868 |
Receipt in advance | 2,507,629 | 1,221,152 |
Total | ¥ 6,633,402 | ¥ 5,140,025 |
Amount Due to a Director (Detai
Amount Due to a Director (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | ||
Amount due to a director | ¥ 96,676,656 | ¥ 96,231,368 |
Total | ¥ 96,676,656 | ¥ 96,231,368 |
Amount Due to a Director (Det_2
Amount Due to a Director (Details 1) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Payables and Accruals [Abstract] | ||
Non-current liabilities | ¥ 84,781,805 | |
Current liabilities | 11,894,851 | 96,231,368 |
Total | ¥ 96,676,656 | ¥ 96,231,368 |
Amount Due to a Director (Det_3
Amount Due to a Director (Details Textual) | Mar. 31, 2019CNY (¥) |
Amount Due to A Director (Textual) | |
Amount due to director relates to acquisition | ¥ 94,051,934 |
Bank Borrowings (Details)
Bank Borrowings (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |||
Secured - at amortized cost Loans from bank | [1] | ¥ 2,250,000 | |
Bank Borrowings, total | 2,250,000 | ||
Current liabilities | 2,250,000 | ||
Bank Borrowings, total | ¥ 2,250,000 | ||
[1] | Loan from the bank is bearing a fixed interest rate ranging from 5.44% per annum. |
Bank Borrowings (Details Textua
Bank Borrowings (Details Textual) | Mar. 31, 2019 |
Bank Borrowings (Textual) | |
Loans from the financial institution are bearing fixed interest rate | 5.44% |
Share Capital and Capital Man_3
Share Capital and Capital Management (Details) | 9 Months Ended |
Mar. 31, 2019CNY (¥)shares | |
Issued and fully paid [Member] | |
Beginning At June 30, 2018 | ¥ 638,708 |
Common stock conversion | |
Conversion of amount due to a director | |
Shares issued for cash | |
Shares issued as consideration for business acquisition | |
Shares to be issued as consideration for business acquisition | |
Reverse merger | |
Ending At December 31, 2018 | 638,708 |
Issued and fully paid [Member] | USD [Member] | |
Beginning At June 30, 2018 | ¥ 98,191 |
Beginning At June 30, 2018, Shares | shares | 98,191,480 |
Common stock conversion | |
Common stock conversion, Shares | shares | |
Conversion of amount due to a director | |
Conversion of amount due to a director, Shares | shares | |
Shares issued for cash | |
Shares issued for cash, Shares | shares | |
Shares issued as consideration for business acquisition | |
Shares issued as consideration for business acquisition, Shares | shares | |
Shares to be issued as consideration for business acquisition | |
Shares to be issued as consideration for business acquisition, Shares | shares | |
Reverse merger | |
Ending At December 31, 2018 | ¥ 98,191 |
Ending At December 31, 2018, Shares | shares | 98,191,480 |
Shares to be issued [Member] | |
Beginning At June 30, 2018 | ¥ 2,126,520 |
Common stock conversion | |
Conversion of amount due to a director | |
Shares issued for cash | |
Shares issued as consideration for business acquisition | |
Shares to be issued as consideration for business acquisition | |
Reverse merger | |
Ending At December 31, 2018 | 2,126,520 |
Shares to be issued [Member] | USD [Member] | |
Beginning At June 30, 2018 | ¥ 321,296 |
Beginning At June 30, 2018, Shares | shares | 321,296,000 |
Common stock conversion | |
Conversion of amount due to a director | |
Shares issued for cash | |
Shares issued as consideration for business acquisition | |
Shares to be issued as consideration for business acquisition | |
Reverse merger | |
Ending At December 31, 2018 | ¥ 321,296 |
Ending At December 31, 2018, Shares | shares | 321,296,000 |
Share Capital and Capital Man_4
Share Capital and Capital Management (Details Textual) | 9 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share Capital and Capital Management (Textual) | |
Nominal value of per share | $ 0.001 |
Consideration for business acquisition | shares | 321,296,000 |
Nominal value | $ | $ 321,296 |
Business acquisition of per share | $ 0.001 |
Income Taxes (Details)
Income Taxes (Details) - CNY (¥) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Profit before income tax | ¥ 21,655,484 | ¥ 17,392,781 | ¥ 62,512,210 | ¥ 51,594,082 |
Taxation at the applicable tax rate of 25% | 15,768,870 | 12,898,521 | ||
Tax effect on non-taxable income | (285,732) | |||
Tax effects of expense that are not deductible | 540,874 | 15,469 | ||
(Over)/under-provision in respect of previous year | (290,079) | |||
Income taxes | ¥ 5,432,298 | ¥ 4,775,792 | ¥ 16,024,012 | ¥ 12,623,911 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 9 Months Ended |
Mar. 31, 2019CNY (¥) | |
Income Taxes (Textual) | |
Operating loss carryforwards | ¥ 359,065 |
Operating loss carryforward, description | The carryforwards will expire 20 years after they are incurred. |
PRC statutory income tax rate | 25.00% |
Contribution Plan in the PRC (D
Contribution Plan in the PRC (Details) | 9 Months Ended |
Mar. 31, 2019 | |
Contribution Plan in the PRC (Textual) | |
Contributions, description | The local social security bureau at 29.4% to 37.4% of the previous year’s average basic salary amount of the geographical area where the employees are under employment with the PRC subsidiaries. |
Contributions to an accommodation fund (salaries and wages of the employees), percentage | 9.00% |
Operating Lease Arrangement (De
Operating Lease Arrangement (Details) - CNY (¥) | Mar. 31, 2019 | Jun. 30, 2018 |
Leases [Abstract] | ||
Within 1 year | ¥ 454,331 | ¥ 134,294 |
After 1 year but within 2 years | 75,985 | 18,000 |
After 2 years but within 3 years | 9,000 | |
After 3 years | ||
Total future minimum lease payments | ¥ 530,316 | ¥ 161,294 |
Operating Lease Arrangement (_2
Operating Lease Arrangement (Details Textual) | 9 Months Ended |
Mar. 31, 2019 | |
Operating Lease Arrangement (Textual) | |
Operating lease initial period, description | An initial period of one to five years. |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - CNY (¥) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Revenue | ¥ 14,394,218 | |
Total | ¥ 14,394,218 |
Details of Subsidiaries (Detail
Details of Subsidiaries (Details) | 9 Months Ended | |
Mar. 31, 2019 | ||
Reliant Galaxy International Limited [Member] | ||
Attributable Equity interest | 100.00% | |
Reliant Galaxy International Limited [Member] | ||
Place and date of incorporation | Established in British Virgin Islands on January 3, 2017 | |
Capital | Registered and paid-in capital of RMB 69,100 | |
Principal activities | Investment holding | |
Sure Rich Investment (Group) Limited [Member] | ||
Place and date of incorporation | Established in Hong Kong On February 1, 2007 | |
Capital | Share capital RMB 1 | |
Attributable Equity interest | 100.00% | |
Principal activities | Investment holding | |
Fujian Jinou Trading Co., Ltd. [Member] | ||
Place and date of incorporation | Established in the PRC on July 5, 2004 | |
Capital | Registered and paid-in capital of US$ 1,650,000 | |
Attributable Equity interest | 100.00% | |
Principal activities | Investment holding and Trading of spirit | |
Fenyang Huaxin Spirit Development Co., Ltd. [Member] | ||
Place and date of incorporation | Established in the PRC on November 7, 2013 | |
Capital | Registered and Paid-in capital of RMB 1,000,000 | [1] |
Attributable Equity interest | 100.00% | |
Principal activities | Trading of spirit | |
Fenyang Jinqiang Spirit Co., Ltd. [Member] | ||
Place and date of incorporation | Established in the PRC on November 7, 2013 | |
Capital | Registered and Paid-in capital of RMB 5,000,000 | |
Attributable Equity interest | 100.00% | |
Principal activities | Trading of spirit | |
Beijing Huaxin Tianchuang Enterprise Management Consulting Co., Ltd. [Member] | ||
Place and date of incorporation | Established in the PRC on April 14, 2018 | |
Capital | Registered and issued capital of RMB1,000,000 | |
Attributable Equity interest | 51.00% | [1] |
Principal activities | Dormant | |
[1] | The subsidiary was registered with payable share capital and the Company committed to pay up its share of the issued capital in the amount of RMB 510,000 on March 31, 2038, which is 20 years from the date of incorporation permitted by the Regulation of the People's Republic of China on Company Registration. The amount due to the subsidiary is interest-free and unsecured. |
Details of Subsidiaries (Deta_2
Details of Subsidiaries (Details Textual) | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Details of Subsidiaries (Textual) | |
Issued capital amount | $ 510,000 |
Share issued date | Mar. 31, 2038 |
Incorporation date term | 20 years |
Details of an Assocaite (Detail
Details of an Assocaite (Details) - Guangzhou Silicon Technology Co., Ltd [Member] | 9 Months Ended |
Mar. 31, 2019 | |
Place and date of incorporation | Established in the PRC on September 8, 2015 |
Capital | Registered and issued capital of RMB5,000,000 |
Attributable Equity interest | 20.00% |
Principal activities | Development, sale and provision of software solutions |
Details of an Assocaite (Deta_2
Details of an Assocaite (Details Textual) | Sep. 01, 2018 | |
Details of an Assocaite (Textual) | ||
Acquired percentage | 20.00% | [1] |
[1] | On September 1, 2018, Fenyang Huaxin Spirit Development Co., Ltd acquired shares of 20% of the associate Guangzhou Silicon Technology Co., Ltd which then became an associate of the Company. The associate's results were not material to the Group in the period to March 31, 2019. |