Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 18, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ORANCO INC | |
Entity Central Index Key | 0001098996 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,948,757 | |
Entity Filer Number | 000-28181 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | |
RMB | |||||
Current assets | |||||
Cash and cash equivalents | ¥ | ¥ 73,595,652 | ¥ 53,163,966 | |||
Trade receivables | ¥ | 33,391,117 | 32,053,899 | |||
Inventories | ¥ | 6,827,485 | 6,900,988 | |||
Deposits, prepayments and other receivables | ¥ | 37,561,514 | 45,610,523 | |||
Prepaid land lease and other lease | ¥ | 1,381,624 | 547,180 | |||
Total current assets | ¥ | 152,757,392 | 138,276,556 | |||
Non-current assets | |||||
Investment | ¥ | 1,000,000 | 1,000,000 | |||
Property, plant and equipment | ¥ | 3,061,590 | 3,124,224 | |||
Prepaid land lease and other lease | ¥ | 9,193,360 | 9,362,240 | |||
Total non-current assets | ¥ | 13,254,950 | 13,486,464 | |||
Total assets | ¥ | 166,012,342 | 151,763,020 | |||
Current liabilities | |||||
Trade payables | ¥ | 339,120 | 247,685 | |||
Receipts in advance, accruals and other payables | ¥ | 7,846,109 | 5,698,168 | |||
Amount due to Director | ¥ | 16,218,437 | 13,392,777 | |||
Current tax liabilities | ¥ | 3,938,273 | 3,406,187 | |||
Bank borrowings | ¥ | [1] | 850,000 | 2,250,000 | ||
Total current liabilities | ¥ | 29,191,939 | 24,994,817 | |||
Non-Current liabilities | |||||
Amount due to Director | ¥ | 81,781,805 | 81,781,805 | |||
Total liabilities | ¥ | 110,973,744 | 106,776,622 | |||
Shareholders' equity | |||||
Share capital | ¥ | 2,765,228 | 2,765,228 | |||
Retained earnings | ¥ | 52,273,370 | 42,221,170 | |||
Total shareholders' equity | ¥ | 55,038,598 | 44,986,398 | |||
Total liabilities and shareholders' equity | ¥ | ¥ 166,012,342 | ¥ 151,763,020 | |||
USD | |||||
Current assets | |||||
Cash and cash equivalents | $ | $ 10,296,410 | $ 7,744,205 | |||
Trade receivables | $ | 4,671,589 | 4,669,177 | |||
Inventories | $ | 955,200 | 1,005,242 | |||
Deposits, prepayments and other receivables | $ | 5,255,049 | 6,643,922 | |||
Prepaid land lease and other lease | $ | 193,296 | 79,706 | |||
Total current assets | $ | 21,371,544 | 20,142,252 | |||
Non-current assets | |||||
Investment | $ | 139,905 | 145,666 | |||
Property, plant and equipment | $ | 428,332 | 455,095 | |||
Prepaid land lease and other lease | $ | 1,286,199 | 1,363,764 | |||
Total non-current assets | $ | 1,854,436 | 1,964,525 | |||
Total assets | $ | 23,225,980 | 22,106,777 | |||
Current liabilities | |||||
Trade payables | $ | 47,445 | 36,079 | |||
Receipts in advance, accruals and other payables | $ | 1,097,711 | 830,032 | |||
Amount due to Director | $ | 2,269,043 | 1,950,878 | |||
Current tax liabilities | $ | 550,985 | 496,167 | |||
Bank borrowings | $ | [1] | 118,919 | 327,749 | ||
Total current liabilities | $ | 4,084,103 | 3,640,905 | |||
Non-Current liabilities | |||||
Amount due to Director | $ | 11,441,695 | 11,912,863 | |||
Total liabilities | $ | 15,525,798 | 15,553,768 | |||
Shareholders' equity | |||||
Share capital | $ | 386,870 | 402,801 | |||
Retained earnings | $ | 7,313,312 | 6,150,208 | |||
Total shareholders' equity | $ | 7,700,182 | 6,553,009 | |||
Total liabilities and shareholders' equity | $ | $ 23,225,980 | $ 22,106,777 | |||
[1] | Three loans from financial institutions bear fixed interest rates ranging from 5% to 5.59% per annum and mature on October 29, 2019, December 18, 2019, and March 14, 2020, respectively. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 41,948,748 | 41,948,748 |
Common stock, shares outstanding | 41,948,748 | 41,948,748 |
Common stock, shares to be issued | ||
USD | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) | 3 Months Ended | ||
Sep. 30, 2019CNY (¥)¥ / shares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018CNY (¥)¥ / shares | |
RMB | |||
Revenue | ¥ | ¥ 25,667,997 | ¥ 23,962,454 | |
Cost of sales | ¥ | 7,413,971 | 6,068,934 | |
Selling and distribution expenses | ¥ | 877,871 | 979,639 | |
Administrative expenses | ¥ | 3,412,079 | 2,876,592 | |
Total | ¥ | 11,703,921 | 9,925,165 | |
Other income | ¥ | 45,852 | 19,037 | |
Interest and other financial charges | ¥ | 19,455 | 3,172 | |
Income before income taxes | ¥ | 13,990,473 | 14,053,154 | |
Income taxes | ¥ | 3,938,273 | 4,167,483 | |
Net Income | ¥ | 10,052,200 | 9,885,671 | |
Attributable to: | |||
Equity holders of the Company | ¥ | 10,052,200 | 9,885,671 | |
Former non-controlling interests | ¥ | |||
Total | ¥ | ¥ 10,052,200 | ¥ 9,885,671 | |
Earnings per share: | |||
Basic and diluted earnings per share | ¥ / shares | ¥ 0.24 | ¥ 0.24 | |
USD | |||
Revenue | $ | $ 3,591,085 | ||
Cost of sales | $ | 1,037,253 | ||
Selling and distribution expenses | $ | 122,819 | ||
Administrative expenses | $ | 477,367 | ||
Total | $ | 1,637,439 | ||
Other income | $ | 6,415 | ||
Interest and other financial charges | $ | 2,722 | ||
Income before income taxes | $ | 1,957,339 | ||
Income taxes | $ | 550,985 | ||
Net Income | $ | 1,406,354 | ||
Attributable to: | |||
Equity holders of the Company | $ | 1,406,354 | ||
Former non-controlling interests | $ | |||
Total | $ | $ 1,406,354 | ||
Earnings per share: | |||
Basic and diluted earnings per share | $ / shares | $ 0.03 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) | Common StockCNY (¥) | Common StockUSD ($) | Retained Earnings / Accumulated DeficitCNY (¥) | Retained Earnings / Accumulated DeficitUSD ($) | RMBCNY (¥) | USDUSD ($) |
Balance at Jun. 30, 2018 | ¥ 2,765,228 | ¥ 2,240,740 | ¥ 5,005,968 | |||
Total comprehensive income for the period | 9,885,671 | 9,885,671 | ||||
Balance at Sep. 30, 2018 | 2,765,228 | 12,126,411 | 14,891,639 | |||
Balance at Jun. 30, 2019 | 2,765,228 | 42,221,170 | 44,986,398 | |||
Total comprehensive income for the period | ¥ 10,052,200 | 10,052,200 | ||||
Balance at Sep. 30, 2019 | $ 386,870 | $ 7,313,312 | ¥ 55,038,598 | $ 7,700,182 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) | 3 Months Ended | ||
Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018CNY (¥) | |
RMB | |||
Operating activities | |||
Net income | ¥ | ¥ 10,052,200 | ¥ 9,885,671 | |
Adjustments to reconcile net income to cash generated from operating activities: | |||
Depreciation and amortization | ¥ | 173,388 | 84,657 | |
Changes in working capital: | |||
Inventories | ¥ | 73,503 | 1,997,249 | |
Trade receivables | ¥ | (1,337,218) | (841,033) | |
Deposits, prepayments and other receivables | ¥ | 8,049,008 | 10,136,341 | |
Trade payables | ¥ | 91,435 | 2,361,868 | |
Receipts in advance, accruals and other payables | ¥ | 1,371,624 | (145,329) | |
Current tax liabilities | ¥ | 532,086 | 1,349,492 | |
Amount due to Director | ¥ | 925,660 | (3,013,126) | |
Cash generated from operating activities | ¥ | 19,931,686 | 27,842,042 | |
Investing activities | |||
Acquisition of interest in an associate | ¥ | (50,000) | ||
Cash used in investing activities | ¥ | (50,000) | ||
Financing activities | |||
Proceeds from bank borrowings | ¥ | 500,000 | 1,400,000 | |
Cash used in financing activities | ¥ | 500,000 | 1,400,000 | |
Effect of exchange rate on cash | ¥ | |||
Increase in cash and cash equivalents | ¥ | 20,431,686 | 29,192,042 | |
Cash and cash equivalents, beginning of the period | ¥ | 53,163,966 | 26,504,962 | |
Cash and cash equivalents, end of the period | ¥ | 73,595,652 | 55,697,004 | |
Supplemental disclosure of cash flows information | |||
Cash paid during the year for interest | ¥ | (19,455) | (3,172) | |
Cash paid during the year for income taxes | ¥ | ¥ (3,404,793) | ¥ (2,817,991) | |
USD | |||
Operating activities | |||
Net income | $ | $ 1,406,354 | ||
Adjustments to reconcile net income to cash generated from operating activities: | |||
Depreciation and amortization | $ | 24,258 | ||
Changes in working capital: | |||
Inventories | $ | 10,283 | ||
Trade receivables | $ | (187,084) | ||
Deposits, prepayments and other receivables | $ | 1,126,098 | ||
Trade payables | $ | 12,792 | ||
Receipts in advance, accruals and other payables | $ | 191,897 | ||
Current tax liabilities | $ | 74,442 | ||
Amount due to Director | $ | 129,505 | ||
Cash generated from operating activities | $ | 2,788,544 | ||
Investing activities | |||
Acquisition of interest in an associate | $ | |||
Cash used in investing activities | $ | |||
Financing activities | |||
Proceeds from bank borrowings | $ | 69,953 | ||
Cash used in financing activities | $ | 69,953 | ||
Effect of exchange rate on cash | $ | 306,293 | ||
Increase in cash and cash equivalents | $ | 2,552,205 | ||
Cash and cash equivalents, beginning of the period | $ | 7,744,205 | ||
Cash and cash equivalents, end of the period | $ | 10,296,410 | ||
Supplemental disclosure of cash flows information | |||
Cash paid during the year for interest | $ | (2,722) | ||
Cash paid during the year for income taxes | $ | $ (476,348) |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Sep. 30, 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 had been in the business of developing mineral deposits. During the year 1983, all activities were abandoned, and the Company 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 marketing and wholesaling of self-branded spirits and imported wines 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) Basis of consolidation and presentation The Consolidated Financial Statements include the Financial Statements of Oranco, Inc. and 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 statement of 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 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 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 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), to update the financial reporting requirements for revenue recognition. Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This guidance became effective for the Group beginning on July 1, 2018, and the Group has the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. We adopted this standard using the modified retrospective approach on July 1, 2018. In preparation for adoption of the standard, we have completed our impact assessment of implementing this guidance. We have evaluated each of the five steps in Topic 606, which are as follows: 1) identify the contract with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) performance obligations are satisfied. Revenue was not affected materially in any period due to the adoption of ASC Topic 606 because: (1) we identified similar performance obligations under ASC Topic 606 as compared with deliverables and separate units of account previously identified; our performance obligation is to deliver the spirits and wine; (2) we determined the transaction price to be consistent; and (3) we recorded revenue at the same point in time, upon delivery under both ASC Topic 605 and ASC Topic 606, as applicable under the terms of the contract with the customer. Additionally, the accounting for fulfillment costs or costs incurred to obtain a contract were not affected materially in any period due to the adoption of Topic 606. There are also certain considerations related to accounting policies, business processes and internal control over financial reporting that are associated with implementing Topic 606. We have evaluated our policies, processes, and control framework for revenue recognition, and identified and implemented the changes needed in response to the new guidance. Lastly, disclosure requirements under the new guidance in Topic 606 have been significantly expanded in comparison to the disclosure requirements under the current guidance, including disclosures related to disaggregation of revenue into appropriate categories, performance obligations, the judgments made in revenue recognition determinations, adjustments to revenue which relate to activities from previous quarters or years, any significant reversals of revenue, and costs to obtain or fulfill contracts. We conclude that the adoption of the standard has no material impact on our revenue recognition policy. (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. 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% Leasehold improvement Over the shorter of lease term or the estimated useful lives of the assets 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 13% 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 Right-of-use (ROU) Assets represent the Company's right to control the use of an identified asset for a period of time, or term, in exchange for consideration, and Lease Liabilities represent its obligation to make lease payments arising from the aforementioned right. The Company determines if an arrangement is, or contains, a lease at the inception date, and the Company measures and records a non-current ROU Asset and corresponding Lease Liabilities, classified as current and non-current, on its consolidated balance sheet at the lease commencement date for all leases except for short-term leases with a term of 12 months or less. ROU Assets and Lease Liabilities are initially recorded based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease when it is reasonably certain at the commencement date that such options will be exercised. As the rate implicit for each of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date in determining the present value of its expected lease payments. The ROU Asset also includes any initial direct costs and any lease payments made prior to the lease commencement date and is reduced by any lease incentives received. The ROU Asset is amortized on a straight-line basis as the operating lease cost over the lease term on the consolidated statements of income. ROU Asset amortization, referred to as noncash lease expense, along with the change in the operating lease liabilities are separately presented within the cash flows from operating activities on the consolidated statements of cash flows. ASC 842 provides various optional transition practical expedients. Upon transition to ASC 842, the Company elected the use of the package of practical expedients to not reassess: whether a contract is or contains a lease, lease classification and indirect costs. The Company did not elect the hindsight practical expedient in transition. The Company has elected to not separate lease and non-lease components. See Note 17—Leases for additional information. (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 2019 and 2018, such translation adjustments were not material. The Group uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive loss, a component of shareholders' deficits. Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB 6.8680 on September 28, 2018 and RMB 7.1477 on September 30, 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. (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. (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, trade and other payables and bank borrowings. The Group considers the carrying amounts approximate fair value because of the short maturity of these financial instruments. (n) 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. (o) 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 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors remains similar to pre-existing U.S. GAAP. Subsequent accounting standards updates have been issued, which amend and/or clarify the application of ASU 2016-02. The Company adopted Topic 842 effective January 1, 2019. See Note 17, operating leases arrangement for further details. The adoption of the standard in the consolidated financial statements for the financial period ended September 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), amending existing guidance on the accounting for credit losses on financial instruments within its scope. The guidance introduces an expected loss model for estimating credit losses, replacing the incurred loss model. The new guidance also changes the impairment model for available-for-sale debt securities, requiring the use of an allowance to record estimated credit losses (and subsequent recoveries). The new guidance is effective for the Company beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework. The purpose of the update is to improve the effectiveness of the fair value measurement disclosures that allow for clear communication of information that is most important to the users of financial statements. There were certain required disclosures that have been removed or modified. In addition, the update added the following disclosures: (i) changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The standard will become effective for the Company for its periods beginning after December 15, 2019; early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 on its condensed consolidated financial statements. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or not significant to the condensed consolidated financial statements of the Company. |
Revenue and Other Income
Revenue and Other Income | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND OTHER INCOME | 2. REVENUE AND OTHER INCOME Revenue represents the invoiced spirits and wine products sold to customers less discounts, returns, and surcharges. September 30, 2019 September 30, 2018 RMB US$ RMB Revenue 25,667,997 3,591,085 23,962,454 Other income 45,852 6,415 19,037 25,713,849 3,597,500 23,981,491 All revenue is derived in China. A concentration analysis of the revenue is as follows: September 30, 2019 September 30, 2018 Customer A 16 % 12 % Customer B 16 % 11 % Customer C 42 % 11 % Customer D 12 % 10 % Customer E 12 % 10 % Customer F 10 % 9 % Others 21 % 37 % 100 % 100 % |
Selling and Distribution Expens
Selling and Distribution Expenses | 3 Months Ended |
Sep. 30, 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: September 30, 2019 September 30, 2018 RMB US$ RMB Freight 9,700 1,357 280 Packaging cost - - 143,216 9,700 1,357 143,496 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Sep. 30, 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: September 30, 2019 June 30, RMB US$ RMB US$ Computer and office equipment 334,631 46,817 268,550 39,119 Building 3,754,625 525,291 3,754,625 546,923 Add: Computer and leasehold improvement - - 66,081 9,626 4,089,256 572,108 4,089,256 595,668 Less: accumulated depreciation (1,027,666 ) (143,776 ) (965,032 ) (140,573 ) Property, plant and equipment, net, 3,061,590 428,332 3,124,224 455,095 |
Prepaid Land Lease and Other Le
Prepaid Land Lease and Other Lease, Net | 3 Months Ended |
Sep. 30, 2019 | |
Prepaid Land Lease, Net [Abstract] | |
PREPAID LAND LEASE AND OTHER LEASE, NET | 5. PREPAID LAND LEASE AND OTHER LEASE, NET Prepaid land lease and other lease, net, consists of the following: September 30, 2019 June 30, RMB US$ RMB US$ Prepaid land lease 10,412,120 1,456,709 5,412,120 788,364 Less: accumulated amortization (613,453 ) (85,825 ) (502,700 ) (73,227 ) Add: other lease asset-ROU – note 17 776,317 108,611 5,000,000 728,333 Prepaid land lease and other lease, net 10,574,984 1,479,495 9,909,420 1,443,470 The carrying amounts of the prepaid land lease and other lease are analyzed as: September 30, 2019 June 30, RMB US$ RMB US$ Current assets 1,381,624 193,296 547,180 79,706 Non-current assets 9,193,360 1,286,199 9,362,240 1,363,764 10,574,984 1,479,495 9,909,420 1,443,470 Prepaid land lease represents the costs of the land use rights in respect of leasehold land in the People's Republic of China, on which the Group's buildings are situated. Prepaid other lease represents the lease of a warehouse in the PRC. The prepaid land lease' terms are 70 years, ending in 2082 and other leases terms are 10 years, ending in 2029. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 6. INVENTORIES Inventories consist of the following: September 30, 2019 June 30, RMB US$ RMB US$ Raw materials 2,913,726 407,645 4,500,125 655,517 Finished goods 3,729,827 521,822 2,216,931 322,932 Packaging material 183,932 25,733 183,932 26,793 6,827,485 955,200 6,900,988 1,005,242 |
Trade Receivables
Trade Receivables | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
TRADE RECEIVABLES | 7. TRADE RECEIVABLES September 30, 2019 June 30, RMB US$ RMB US$ Trade receivables 33,391,117 4,671,589 32,053,899 4,669,177 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 | 3 Months Ended |
Sep. 30, 2019 | |
Deposits, Prepayments and Other Receivables [Abstract] | |
DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES | 8. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES September 30, 2019 June 30, RMB US$ RMB US$ Prepaid expenses 36,923,164 5,165,741 45,054,919 6,562,989 Other receivables 638,350 89,308 555,604 80,933 37,561,514 5,255,049 45,610,523 6,643,922 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 9. CASH AND CASH EQUIVALENTS September 30, 2019 June 30, RMB US$ RMB US$ Cash on hand 391,582 54,784 419,446 61,099 Cash held in banks 73,204,070 10,241,626 52,744,520 7,683,106 73,595,652 10,296,410 53,163,966 7,744,205 Cash held in banks earns interest at floating rates based on daily bank deposit rates. |
Trade Payables
Trade Payables | 3 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
TRADE PAYABLES | 10. TRADE PAYABLES September 30, 2019 June 30, RMB US$ RMB US$ Trade payables 339,120 47,445 247,685 36,079 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 year is as follows: September 30, September 30, Supplier A 52 % 59 % Supplier B 37 % 17 % Supplier C 8 % 11 % Supplier D 2 % 4 % Supplier E - % 4 % Supplier F - % 3 % Others - % 2 % 100 % 100 % |
Receipts in Advance, Accruals a
Receipts in Advance, Accruals and Other Payables | 3 Months Ended |
Sep. 30, 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: September 30, June 30, RMB US$ RMB US$ Accrued payroll and bonus 312,801 43,762 301,894 43,976 Accrued and other payables 5,493,320 768,544 3,430,703 499,738 Other tax payables 1,079,712 151,057 466,538 67,959 Receipts in advance 960,276 134,348 1,499,033 218,359 7,846,109 1,097,711 5,698,168 830,032 |
Amount Due to Director
Amount Due to Director | 3 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
AMOUNT DUE TO DIRECTOR | 12. AMOUNT DUE TO DIRECTOR September 30, June 30, RMB US$ RMB US$ Current-liabilities 16,218,437 2,269,043 13,392,777 1,950,878 Non-Current-liabilities 81,781,805 11,441,695 81,781,805 11,912,863 98,000,242 13,710,738 95,174,582 13,863,741 |
Bank Borrowings
Bank Borrowings | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
BANK BORROWINGS | 13. BANK BORROWINGS September 30, June 30, RMB US$ RMB US$ Loans from financial institutions – Note (i) 850,000 118,919 2,250,000 327,749 Classified as: Current liabilities 850,000 118,919 2,250,000 327,749 Note: (i) Three loans from financial institutions bear fixed interest rates ranging from 5% to 5.59% per annum and mature on October 29, 2019, December 18, 2019, and March 14, 2020, respectively. |
Share Capital and Capital Manag
Share Capital and Capital Management | 3 Months Ended |
Sep. 30, 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 Additional paid in capital Total share capital Company Number of value US$ value RMB Number of value US$ value RMB value US$ value RMB value RMB At June 30, 2017 and June 30, 2016 4,269,950 4,270 27,775 - - - (4,269 ) (27,774 ) 1 Common stock conversion 37,921,530 37,922 246,671 - - - - - 246,671 Conversion of amount due to a director 15,000,000 15,000 97,570 - - - 27,209 176,986 274,556 Shares issued for cash 13,000,000 13,000 84,561 - - - 91,000 591,925 676,486 Shares issued as consideration for business acquisition 28,000,000 28,000 182,131 - - - - - 182,131 Shares to be issued as consideration for business acquisition note 1 - - - 321,296,000 321,296 2,126,520 - - 2,126,520 Reverse merger - - - - - - (113,940 ) (741,137 ) (741,137 ) At June 30, 2018 98,191,40 98,191 638,708 321,296,000 321,296 2,126,520 - - 2,765,228 Shares reverse split on August 7, 2019 (88,372,332 ) - - (289,166,400 ) - - - - - Restated at June 30, 2018 and September 30, 2018 9,819,148 98,191 638,708 32,129,600 321,296 2,126,520 - - 2,765,228 Shares were issued as consideration for business acquisition note 1 32,129,600 321,296 2,126,520 (32,129,600 ) (321,296 ) (2,126,520 ) - - - Total at June 30, 2019 and September 30, 2019 41,948,748 419,487 2,765,228 - - - - - 2,765,228 Each share has a nominal value of US$0.001 per share. Note: 1. The 321,296,000 new shares, at $0.001 per share, are part of the consideration of the acquisition of Reliant Galaxy International Limited by the Company. The aggregated nominal value of the shares is US$321,296. 2. On July 22, 2019, the Company filed a Certificate of Amendment with the Secretary of State of Nevada to effect a reverse stock split of the issued and outstanding shares of its common stock at a ratio of one share for every 10 shares outstanding prior to the effective date of the reverse stock split. All current and historical information contained herein related to the share and per share information for the Company's common stock or stock equivalents reflects the 1-for-10 reverse stock split of the Company's outstanding shares of common stock that became market effective on August 7, 2019. There was no change in the number of the Company's authorized shares of common stock. 3. On August 7, 2019, the Company effected a decrease in the number of its authorized Common Stock from 500,000,000 to 50,000,000, with its Common Stock's par value unchanged at $0.001 per share. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 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 carry forwards totaling $24,581 that may be offset against future federal income taxes. If not used, the carry forwards will expire 20 years after they are incurred. The Company's BVI subsidiary is not subject to taxation. The Company's Hong Kong subsidiary is subject to taxes in Hong Kong. The Hong Kong subsidiary has had no taxable income. The Company's PRC subsidiaries are subject to taxes in China. The applicable PRC statutory income tax rate is 25% according to the Enterprise Income Tax Law. A reconciliation of the income tax expenses in China is set out below: September 30, September 30, 2018 RMB US$ RMB Profit before income tax 13,990,473 1,957,339 14,053,154 Taxation at the applicable tax rate of 25% 3,497,619 489,335 3,513,289 Tax effect on non-taxable income (11,464 ) (1,604 ) (4,759 ) Tax effects of expense that are not deductible 452,118 63,254 658,953 (Over)/under-provision in respect of previous year - - - Income taxes 3,938,273 550,985 4,167,483 |
Contribution Plan in the PRC
Contribution Plan in the PRC | 3 Months Ended |
Sep. 30, 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 | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
OPERATING LEASE ARRANGEMENT | 17. OPERATING LEASE ARRANGEMENT On September 30, 2019, the Company adopted ASU 2016-02 using the modified retrospective method as of the effective date of September 30, 2019 (the "effective date method"). Under the effective date method, financial results reported in periods prior to 2019 are unchanged. In transition to the new lease guidance, the Company elected the package of practical expedients permitted under the transition guidance within the new standard that allowed the Company to not reassess whether a contract is or contains a lease, lease classification and initial direct costs; however, the Company did not elect the hindsight transitional practical expedient. The Company has also elected the practical expedient to not account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the nonlease components. After assessment of the cumulative impact of adopting ASU 2016-02, it was determined that the cumulative effect adjustment required under the new guidance was immaterial and therefore the Company did not record a retrospective adjustment to the opening balance of retained earnings at September 30, 2019. The Company recognized additional operating lease right-of-use assets and lease liabilities of $0.7 million as of September 30, 2019. The Company is currently a lessee under a number of operating leases for offices and a warehouse. The Company's leases generally have remaining lease terms of 1 year to 5 years and some of which include options to terminate the leases within 1 year. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Supplemental information related to leases and the Company's Consolidated Financial Statements is as follows: September 30, Components of lease costs: Total operating lease costs 246,203 September 30, Weighted average remaining lease term (years) of operating leases: 1.25 Weighted average discount rate of operating leases: 2.9 % September 30, Other - right-of-use assets 774,727 Lease liabilities included in: Accrued expenses - current portion of lease liabilities (774,727 ) Total lease liabilities (774,727 ) The Group has total future minimum lease payments under non-cancellable operating lease payable as follows: September 30, September 30, RMB RMB Within 1 year 792,694 216,000 After 1 year but within 2 years 4,500 54,000 After 2 years but within 3 years - - After 3 years - - Total lease payments 797,194 270,000 Less: Interest (22,467 ) - Present value of lease liabilities 774,727 - The Group is the lessee under a number of operating leases for offices and a warehouse. The Company's leases generally have remaining lease terms of 1 year to 5 years and some of which include options to terminate the leases within 1 year. |
Related Party Balances and Tran
Related Party Balances and Transactions | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 18. RELATED PARTY BALANCES AND TRANSACTIONS The Group had the following transactions with related party balance during the financial periods: September 30, June 30, RMB US$ RMB US$ Current-liabilities 16,218,437 2,269,043 13,392,777 1,950,878 Non-Current-liabilities 81,781,805 11,441,695 81,781,805 11,912,863 98,000,242 13,710,738 95,174,582 13,863,741 The balance represented the amount due to directors, Mr. Peng Yang for the three months period ended as at September 30, 2019. At the end of each reporting period, neither the Group nor the Company had any other related party transaction. |
Contingent Liabilities
Contingent Liabilities | 3 Months Ended |
Sep. 30, 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 | 3 Months Ended |
Sep. 30, 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 paid-in capital of RMB 69,100 100 % 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 on July 5, 2004 Registered and paid-in capital of US$ 1,650,000 100 % Investment holding and marketing self-owned brand and wholesaling of spirits Fenyang Huaxin Spirit Development Co., Ltd. Established in the PRC on November 7, 2013 Registered and Paid-in capital of RMB 1,000,000 100 % Marketing self-owned brand and wholesaling of spirits and wines Fenyang Jinqiang Spirit Co., Ltd. Established in the PRC on November 7, 2013 Registered capital 10,000,000 and Paid-in capital of RMB 5,000,000 100 % Marketing self-owned brand and wholesaling of spirits Beijing Huaxin Tianchuang Enterprise Management Consulting Co., Ltd. Established in the PRC on April 14, 2018 Registered and issued capital of RMB1,000,000 51 % (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, 2037, 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. |
Investment
Investment | 3 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT | 21. INVESTMENT Company name Place and date of incorporation Capital Attributable Equity Principal activities Guangzhou Silicon Technology Co., Ltd Established in the PRC on September 8, 2015 Registered and issued capital of RMB5,000,000 20 % Development, sale and provision of software solutions Notes: (i) On September 1, 2018, Fenyang Huaxin Spirit Development Co., Ltd acquired 20% of Guangzhou Silicon Technology Co., Ltd.. |
Reverse Merger
Reverse Merger | 3 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
REVERSE MERGER | 22. REVERSE MERGER On June 29, 2018, Oranco, Inc. acquired 100% of the issued capital of Reliant in a share for share exchange with the then shareholders of Reliant. Due to the relative size of the companies, the shareholders of Reliant became the majority shareholders in the consolidated group. Pursuant to the share for share exchange, Oranco issued an aggregated 349,296,000 new shares of common stock, with par value of $0.001 per share, of which 28,000,000 were issued on June 29, 2018, the closing date of the share exchange transaction. The remaining 321,296,000 shares were issued on May 29, 2019 following the completion of the increase of the Company's authorized shares on February 15, 2019. At the date of acquisition, Oranco, Inc. was a shell company with minimal assets and operations. The transaction has been treated as a group reconstruction and has been accounted for using the reverse merger accounting method. Accordingly, the consolidated financial statements have been treated as being a continuation of the consolidated financial statements of Reliant, with Oranco, Inc. being treated as the acquired entity for accounting purposed. Accordingly, the financial information for the previous period and comparatives reflects the consolidated operations of Reliant. |
Note to the Consolidated Statem
Note to the Consolidated Statement of Cash Flows | 3 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
NOTE TO THE CONSOLIDATED STATEMENT OF CASH FLOWS | 23. NOTE TO THE CONSOLIDATED STAETMENT OF CASH FLOWS Disclosure of non-cash item: (i) Mr. Yang Peng, the director of the Company settled a bank loan in the amount of RMB1,900,000 on behalf of Company for the period ended September 30, 2019. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 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 had been in the business of developing mineral deposits. During the year 1983, all activities were abandoned, and the Company 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 marketing and wholesaling of self-branded spirits and imported wines 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) Basis of consolidation and presentation The Consolidated Financial Statements include the Financial Statements of Oranco, Inc. and 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 statement of 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 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 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 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), to update the financial reporting requirements for revenue recognition. Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This guidance became effective for the Group beginning on July 1, 2018, and the Group has the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. We adopted this standard using the modified retrospective approach on July 1, 2018. In preparation for adoption of the standard, we have completed our impact assessment of implementing this guidance. We have evaluated each of the five steps in Topic 606, which are as follows: 1) identify the contract with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) performance obligations are satisfied. Revenue was not affected materially in any period due to the adoption of ASC Topic 606 because: (1) we identified similar performance obligations under ASC Topic 606 as compared with deliverables and separate units of account previously identified; our performance obligation is to deliver the spirits and wine; (2) we determined the transaction price to be consistent; and (3) we recorded revenue at the same point in time, upon delivery under both ASC Topic 605 and ASC Topic 606, as applicable under the terms of the contract with the customer. Additionally, the accounting for fulfillment costs or costs incurred to obtain a contract were not affected materially in any period due to the adoption of Topic 606. There are also certain considerations related to accounting policies, business processes and internal control over financial reporting that are associated with implementing Topic 606. We have evaluated our policies, processes, and control framework for revenue recognition, and identified and implemented the changes needed in response to the new guidance. Lastly, disclosure requirements under the new guidance in Topic 606 have been significantly expanded in comparison to the disclosure requirements under the current guidance, including disclosures related to disaggregation of revenue into appropriate categories, performance obligations, the judgments made in revenue recognition determinations, adjustments to revenue which relate to activities from previous quarters or years, any significant reversals of revenue, and costs to obtain or fulfill contracts. We conclude that the adoption of the standard has no material impact on our revenue recognition policy. |
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% Leasehold improvement Over the shorter of lease term or the estimated useful lives of the assets 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 13% 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 Right-of-use (ROU) Assets represent the Company's right to control the use of an identified asset for a period of time, or term, in exchange for consideration, and Lease Liabilities represent its obligation to make lease payments arising from the aforementioned right. The Company determines if an arrangement is, or contains, a lease at the inception date, and the Company measures and records a non-current ROU Asset and corresponding Lease Liabilities, classified as current and non-current, on its consolidated balance sheet at the lease commencement date for all leases except for short-term leases with a term of 12 months or less. ROU Assets and Lease Liabilities are initially recorded based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease when it is reasonably certain at the commencement date that such options will be exercised. As the rate implicit for each of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date in determining the present value of its expected lease payments. The ROU Asset also includes any initial direct costs and any lease payments made prior to the lease commencement date and is reduced by any lease incentives received. The ROU Asset is amortized on a straight-line basis as the operating lease cost over the lease term on the consolidated statements of income. ROU Asset amortization, referred to as noncash lease expense, along with the change in the operating lease liabilities are separately presented within the cash flows from operating activities on the consolidated statements of cash flows. ASC 842 provides various optional transition practical expedients. Upon transition to ASC 842, the Company elected the use of the package of practical expedients to not reassess: whether a contract is or contains a lease, lease classification and indirect costs. The Company did not elect the hindsight practical expedient in transition. The Company has elected to not separate lease and non-lease components. See Note 17—Leases for additional information. |
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 2019 and 2018, such translation adjustments were not material. The Group uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive loss, a component of shareholders' deficits. Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB 6.8680 on September 28, 2018 and RMB 7.1477 on September 30, 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. |
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. |
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, trade and other payables and bank borrowings. The Group considers the carrying amounts approximate fair value because of the short maturity of these financial instruments. |
Transactions between entities under common control | (n) 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 | (o) 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 In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors remains similar to pre-existing U.S. GAAP. Subsequent accounting standards updates have been issued, which amend and/or clarify the application of ASU 2016-02. The Company adopted Topic 842 effective January 1, 2019. See Note 17, operating leases arrangement for further details. The adoption of the standard in the consolidated financial statements for the financial period ended September 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), amending existing guidance on the accounting for credit losses on financial instruments within its scope. The guidance introduces an expected loss model for estimating credit losses, replacing the incurred loss model. The new guidance also changes the impairment model for available-for-sale debt securities, requiring the use of an allowance to record estimated credit losses (and subsequent recoveries). The new guidance is effective for the Company beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework. The purpose of the update is to improve the effectiveness of the fair value measurement disclosures that allow for clear communication of information that is most important to the users of financial statements. There were certain required disclosures that have been removed or modified. In addition, the update added the following disclosures: (i) changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The standard will become effective for the Company for its periods beginning after December 15, 2019; early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 on its condensed consolidated financial statements. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or not significant to the condensed consolidated financial statements of the Company. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 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% Leasehold improvement Over the shorter of lease term or the estimated useful lives of the assets |
Revenue and Other Income (Table
Revenue and Other Income (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of invoiced spirits products sold to the external customers less discounts, returns, and surcharges | September 30, 2019 September 30, 2018 RMB US$ RMB Revenue 25,667,997 3,591,085 23,962,454 Other income 45,852 6,415 19,037 25,713,849 3,597,500 23,981,491 |
Schedule of concentration analysis of the revenue | September 30, 2019 September 30, 2018 Customer A 16 % 12 % Customer B 16 % 11 % Customer C 42 % 11 % Customer D 12 % 10 % Customer E 12 % 10 % Customer F 10 % 9 % Others 21 % 37 % 100 % 100 % |
Selling and Distribution Expe_2
Selling and Distribution Expenses (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Selling and Distribution Expenses [Abstract] | |
Schedule of selling and distribution expenses | September 30, 2019 September 30, 2018 RMB US$ RMB Freight 9,700 1,357 280 Packaging cost - - 143,216 9,700 1,357 143,496 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | September 30, 2019 June 30, RMB US$ RMB US$ Computer and office equipment 334,631 46,817 268,550 39,119 Building 3,754,625 525,291 3,754,625 546,923 Add: Computer and leasehold improvement - - 66,081 9,626 4,089,256 572,108 4,089,256 595,668 Less: accumulated depreciation (1,027,666 ) (143,776 ) (965,032 ) (140,573 ) Property, plant and equipment, net, 3,061,590 428,332 3,124,224 455,095 |
Prepaid Land Lease and Other _2
Prepaid Land Lease and Other Lease, Net (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Prepaid Land Lease, Net [Abstract] | |
Schedule of prepaid land lease, net | September 30, 2019 June 30, RMB US$ RMB US$ Prepaid land lease 10,412,120 1,456,709 5,412,120 788,364 Less: accumulated amortization (613,453 ) (85,825 ) (502,700 ) (73,227 ) Add: other lease asset-ROU – note 17 776,317 108,611 5,000,000 728,333 Prepaid land lease and other lease, net 10,574,984 1,479,495 9,909,420 1,443,470 |
Schedule of carrying amounts of prepaid land lease | September 30, 2019 June 30, RMB US$ RMB US$ Current assets 1,381,624 193,296 547,180 79,706 Non-current assets 9,193,360 1,286,199 9,362,240 1,363,764 10,574,984 1,479,495 9,909,420 1,443,470 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, 2019 June 30, RMB US$ RMB US$ Raw materials 2,913,726 407,645 4,500,125 655,517 Finished goods 3,729,827 521,822 2,216,931 322,932 Packaging material 183,932 25,733 183,932 26,793 6,827,485 955,200 6,900,988 1,005,242 |
Trade Receivables (Tables)
Trade Receivables (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of trade receivables | September 30, 2019 June 30, RMB US$ RMB US$ Trade receivables 33,391,117 4,671,589 32,053,899 4,669,177 |
Deposits, Prepayments and Oth_2
Deposits, Prepayments and Other Receivables (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Deposits, Prepayments and Other Receivables [Abstract] | |
Schedule of deposits and prepaid expenses | September 30, 2019 June 30, RMB US$ RMB US$ Prepaid expenses 36,923,164 5,165,741 45,054,919 6,562,989 Other receivables 638,350 89,308 555,604 80,933 37,561,514 5,255,049 45,610,523 6,643,922 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | September 30, 2019 June 30, RMB US$ RMB US$ Cash on hand 391,582 54,784 419,446 61,099 Cash held in banks 73,204,070 10,241,626 52,744,520 7,683,106 73,595,652 10,296,410 53,163,966 7,744,205 |
Trade Payables (Tables)
Trade Payables (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of trade payables | September 30, 2019 June 30, RMB US$ RMB US$ Trade payables 339,120 47,445 247,685 36,079 |
Schedule of concentration analysis of the suppliers | September 30, September 30, Supplier A 52 % 59 % Supplier B 37 % 17 % Supplier C 8 % 11 % Supplier D 2 % 4 % Supplier E - % 4 % Supplier F - % 3 % Others - % 2 % 100 % 100 % |
Receipts in Advance, Accruals_2
Receipts in Advance, Accruals and Other Payables (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Receipts in Advance, Accruals and Other Payables [Abstract] | |
Schedule of receipts in advance, accruals and other payables | September 30, June 30, RMB US$ RMB US$ Accrued payroll and bonus 312,801 43,762 301,894 43,976 Accrued and other payables 5,493,320 768,544 3,430,703 499,738 Other tax payables 1,079,712 151,057 466,538 67,959 Receipts in advance 960,276 134,348 1,499,033 218,359 7,846,109 1,097,711 5,698,168 830,032 |
Amount Due to Director (Tables)
Amount Due to Director (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of amount due to a director | September 30, June 30, RMB US$ RMB US$ Current-liabilities 16,218,437 2,269,043 13,392,777 1,950,878 Non-Current-liabilities 81,781,805 11,441,695 81,781,805 11,912,863 98,000,242 13,710,738 95,174,582 13,863,741 |
Bank Borrowings (Tables)
Bank Borrowings (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of bank borrowings | September 30, June 30, RMB US$ RMB US$ Loans from financial institutions – Note (i) 850,000 118,919 2,250,000 327,749 Classified as: Current liabilities 850,000 118,919 2,250,000 327,749 Note: (i) Three loans from financial institutions bear fixed interest rates ranging from 5% to 5.59% per annum and mature on October 29, 2019, December 18, 2019, and March 14, 2020, respectively. |
Share Capital and Capital Man_2
Share Capital and Capital Management (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Share Capital and Capital Management [Abstract] | |
Schedule of share capital and capital management | Issued and fully paid Shares to be issued Additional paid in capital Total share capital Company Number of value US$ value RMB Number of value US$ value RMB value US$ value RMB value RMB At June 30, 2017 and June 30, 2016 4,269,950 4,270 27,775 - - - (4,269 ) (27,774 ) 1 Common stock conversion 37,921,530 37,922 246,671 - - - - - 246,671 Conversion of amount due to a director 15,000,000 15,000 97,570 - - - 27,209 176,986 274,556 Shares issued for cash 13,000,000 13,000 84,561 - - - 91,000 591,925 676,486 Shares issued as consideration for business acquisition 28,000,000 28,000 182,131 - - - - - 182,131 Shares to be issued as consideration for business acquisition note 1 - - - 321,296,000 321,296 2,126,520 - - 2,126,520 Reverse merger - - - - - - (113,940 ) (741,137 ) (741,137 ) At June 30, 2018 98,191,40 98,191 638,708 321,296,000 321,296 2,126,520 - - 2,765,228 Shares reverse split on August 7, 2019 (88,372,332 ) - - (289,166,400 ) - - - - - Restated at June 30, 2018 and September 30, 2018 9,819,148 98,191 638,708 32,129,600 321,296 2,126,520 - - 2,765,228 Shares were issued as consideration for business acquisition note 1 32,129,600 321,296 2,126,520 (32,129,600 ) (321,296 ) (2,126,520 ) - - - Total at June 30, 2019 and September 30, 2019 41,948,748 419,487 2,765,228 - - - - - 2,765,228 Each share has a nominal value of US$0.001 per share. Note: 1. The 321,296,000 new shares, at $0.001 per share, are part of the consideration of the acquisition of Reliant Galaxy International Limited by the Company. The aggregated nominal value of the shares is US$321,296. 2. On July 22, 2019, the Company filed a Certificate of Amendment with the Secretary of State of Nevada to effect a reverse stock split of the issued and outstanding shares of its common stock at a ratio of one share for every 10 shares outstanding prior to the effective date of the reverse stock split. All current and historical information contained herein related to the share and per share information for the Company's common stock or stock equivalents reflects the 1-for-10 reverse stock split of the Company's outstanding shares of common stock that became market effective on August 7, 2019. There was no change in the number of the Company's authorized shares of common stock. 3. On August 7, 2019, the Company effected a decrease in the number of its authorized Common Stock from 500,000,000 to 50,000,000, with its Common Stock's par value unchanged at $0.001 per share. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of the income tax expenses | September 30, September 30, 2018 RMB US$ RMB Profit before income tax 13,990,473 1,957,339 14,053,154 Taxation at the applicable tax rate of 25% 3,497,619 489,335 3,513,289 Tax effect on non-taxable income (11,464 ) (1,604 ) (4,759 ) Tax effects of expense that are not deductible 452,118 63,254 658,953 (Over)/under-provision in respect of previous year - - - Income taxes 3,938,273 550,985 4,167,483 |
Operating Lease Arrangement (Ta
Operating Lease Arrangement (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of leases and the Company's Consolidated Financial Statements | September 30, Components of lease costs: Total operating lease costs 246,203 September 30, Weighted average remaining lease term (years) of operating leases: 1.25 Weighted average discount rate of operating leases: 2.9 % September 30, Other - right-of-use assets 774,727 Lease liabilities included in: Accrued expenses - current portion of lease liabilities (774,727 ) Total lease liabilities (774,727 ) |
Schedule of future minimum lease payments under non-cancellable operating lease payable | September 30, September 30, RMB RMB Within 1 year 792,694 216,000 After 1 year but within 2 years 4,500 54,000 After 2 years but within 3 years - - After 3 years - - Total lease payments 797,194 270,000 Less: Interest (22,467 ) - Present value of lease liabilities 774,727 - |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of transactions with related parties balance | September 30, June 30, RMB US$ RMB US$ Current-liabilities 16,218,437 2,269,043 13,392,777 1,950,878 Non-Current-liabilities 81,781,805 11,441,695 81,781,805 11,912,863 98,000,242 13,710,738 95,174,582 13,863,741 |
Details of Subsidiaries (Tables
Details of Subsidiaries (Tables) | 3 Months Ended |
Sep. 30, 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 paid-in capital of RMB 69,100 100 % 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 on July 5, 2004 Registered and paid-in capital of US$ 1,650,000 100 % Investment holding and marketing self-owned brand and wholesaling of spirits Fenyang Huaxin Spirit Development Co., Ltd. Established in the PRC on November 7, 2013 Registered and Paid-in capital of RMB 1,000,000 100 % Marketing self-owned brand and wholesaling of spirits and wines Fenyang Jinqiang Spirit Co., Ltd. Established in the PRC on November 7, 2013 Registered capital 10,000,000 and Paid-in capital of RMB 5,000,000 100 % Marketing self-owned brand and wholesaling of spirits Beijing Huaxin Tianchuang Enterprise Management Consulting Co., Ltd. Established in the PRC on April 14, 2018 Registered and issued capital of RMB1,000,000 51 % (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, 2037, 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. |
Investment (Tables)
Investment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investment | Company name Place and date of incorporation Capital Attributable Equity Principal activities Guangzhou Silicon Technology Co., Ltd Established in the PRC on September 8, 2015 Registered and issued capital of RMB5,000,000 20 % Development, sale and provision of software solutions |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies (Details) | 3 Months Ended |
Sep. 30, 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% |
Computer and leasehold improvement [Member] | |
Property, Plant and equipment lease term | Over the shorter of lease term or the estimated useful lives of the assets |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies (Details Textual) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 28, 2018 | |
Summary of Business and Significant Accounting Policies (Textual) | ||
Percentage of VAT on sales | 13.00% | |
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. | |
RMB | ||
Summary of Business and Significant Accounting Policies (Textual) | ||
Convenience translation at noon buying rate | 7.1477 | 6.8680 |
USD | ||
Summary of Business and Significant Accounting Policies (Textual) | ||
Convenience translation at noon buying rate | 1 |
Revenue and Other Income (Detai
Revenue and Other Income (Details) | 3 Months Ended | ||
Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018CNY (¥) | |
RMB [Member] | |||
Revenue | ¥ | ¥ 25,667,997 | ¥ 23,962,454 | |
Other income | ¥ | 45,852 | 19,037 | |
Total | ¥ | ¥ 25,713,849 | ¥ 23,981,491 | |
USD [Member] | |||
Revenue | $ | $ 3,591,085 | ||
Other income | $ | 6,415 | ||
Total | $ | $ 3,597,500 |
Revenue and Other Income (Det_2
Revenue and Other Income (Details 1) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue [Member] | ||
Percentage of concentration analysis of the revenue | 100.00% | 100.00% |
Customer A [Member] | ||
Percentage of concentration analysis of the revenue | 16.00% | 12.00% |
Customer B [Member] | ||
Percentage of concentration analysis of the revenue | 16.00% | 11.00% |
Customer C [Member] | ||
Percentage of concentration analysis of the revenue | 42.00% | 11.00% |
Customer D [Member] | ||
Percentage of concentration analysis of the revenue | 12.00% | 10.00% |
Customer E [Member] | ||
Percentage of concentration analysis of the revenue | 12.00% | 10.00% |
Customer F [Member] | ||
Percentage of concentration analysis of the revenue | 10.00% | 9.00% |
Others [Member] | ||
Percentage of concentration analysis of the revenue | 21.00% | 37.00% |
Selling and Distribution Expe_3
Selling and Distribution Expenses (Details) | 3 Months Ended | ||
Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018CNY (¥) | |
RMB | |||
Freight | ¥ | ¥ 9,700 | ¥ 280 | |
Packaging cost | ¥ | 143,216 | ||
Selling and distribution expenses | ¥ | ¥ 9,700 | ¥ 143,496 | |
USD | |||
Freight | $ | $ 1,357 | ||
Packaging cost | $ | |||
Selling and distribution expenses | $ | $ 1,357 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Property, plant and equipment, gross | ¥ | ¥ 4,089,256 | ¥ 4,089,256 | ||
Less: accumulated depreciation | ¥ | (1,027,666) | (965,032) | ||
Property, plant and equipment, net | ¥ | 3,061,590 | 3,124,224 | ||
USD | ||||
Property, plant and equipment, gross | $ | $ 572,108 | $ 595,668 | ||
Less: accumulated depreciation | $ | (143,776) | (140,573) | ||
Property, plant and equipment, net | $ | 428,332 | 455,095 | ||
Computer and office equipment [Member] | RMB | ||||
Property, plant and equipment, gross | ¥ | 334,631 | 268,550 | ||
Computer and office equipment [Member] | USD | ||||
Property, plant and equipment, gross | $ | 46,817 | 39,119 | ||
Building [Member] | RMB | ||||
Property, plant and equipment, gross | ¥ | 3,754,625 | 3,754,625 | ||
Building [Member] | USD | ||||
Property, plant and equipment, gross | $ | 525,291 | 546,923 | ||
Computer and leasehold improvement [Member] | RMB | ||||
Property, plant and equipment, gross | ¥ | ¥ 66,081 | |||
Computer and leasehold improvement [Member] | USD | ||||
Property, plant and equipment, gross | $ | $ 9,626 |
Prepaid Land Lease and Other _3
Prepaid Land Lease and Other Lease, Net (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Prepaid land lease | ¥ | ¥ 10,412,120 | ¥ 5,412,120 | ||
Less: accumulated amortization | ¥ | (613,453) | (502,700) | ||
Add: other lease asset-ROU - note 17 | ¥ | 776,317 | 5,000,000 | ||
Prepaid land lease and other lease, net | ¥ | ¥ 10,574,984 | ¥ 9,909,420 | ||
USD | ||||
Prepaid land lease | $ | $ 1,456,709 | $ 788,364 | ||
Less: accumulated amortization | $ | (85,825) | (73,227) | ||
Add: other lease asset-ROU - note 17 | $ | 108,611 | 728,333 | ||
Prepaid land lease and other lease, net | $ | $ 1,479,495 | $ 1,443,470 |
Prepaid Land Lease and Other _4
Prepaid Land Lease and Other Lease, Net (Details 1) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Current assets | ¥ | ¥ 1,381,624 | ¥ 547,180 | ||
Non-current assets | ¥ | 9,193,360 | 9,362,240 | ||
Prepaid land lease, net | ¥ | ¥ 10,574,984 | ¥ 9,909,420 | ||
USD | ||||
Current assets | $ | $ 193,296 | $ 79,706 | ||
Non-current assets | $ | 1,286,199 | 1,363,764 | ||
Prepaid land lease, net | $ | $ 1,479,495 | $ 1,443,470 |
Prepaid Land Lease and Other _5
Prepaid Land Lease and Other Lease, Net (Details Textual) | 3 Months Ended |
Sep. 30, 2019 | |
Prepaid Land Lease and Other Lease, Net (Textual) | |
Description of lease periods | The prepaid land lease' terms are 70 years, ending in 2082 and other leases terms are 10 years, ending in 2029. |
Inventories (Details)
Inventories (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Raw materials | ¥ | ¥ 2,913,726 | ¥ 4,500,125 | ||
Finished goods | ¥ | 3,729,827 | 2,216,931 | ||
Packaging material | ¥ | 183,932 | 183,932 | ||
Inventories, net | ¥ | ¥ 6,827,485 | ¥ 6,900,988 | ||
USD | ||||
Raw materials | $ | $ 407,645 | $ 655,517 | ||
Finished goods | $ | 521,822 | 322,932 | ||
Packaging material | $ | 25,733 | 26,793 | ||
Inventories, net | $ | $ 955,200 | $ 1,005,242 |
Trade Receivables (Details)
Trade Receivables (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Trade receivables | ¥ | ¥ 33,391,117 | ¥ 32,053,899 | ||
USD | ||||
Trade receivables | $ | $ 4,671,589 | $ 4,669,177 |
Trade Receivables (Details Tex
Trade Receivables (Details Textual) | 3 Months Ended |
Sep. 30, 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) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Deposits, Prepayments and Other Receivables [Line Items] | ||||
Prepaid expenses | ¥ | ¥ 36,923,164 | ¥ 45,054,919 | ||
Other receivables | ¥ | 638,350 | 555,604 | ||
Total | ¥ | ¥ 37,561,514 | ¥ 45,610,523 | ||
USD | ||||
Deposits, Prepayments and Other Receivables [Line Items] | ||||
Prepaid expenses | $ | $ 5,165,741 | $ 6,562,989 | ||
Other receivables | $ | 89,308 | 80,933 | ||
Total | $ | $ 5,255,049 | $ 6,643,922 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | Sep. 30, 2018CNY (¥) | Jun. 30, 2018CNY (¥) |
RMB | ||||||
Cash on hand | ¥ | ¥ 391,582 | ¥ 419,446 | ||||
Cash held in banks | ¥ | 73,204,070 | 52,744,520 | ||||
Cash and cash equivalents | ¥ | ¥ 73,595,652 | ¥ 53,163,966 | ¥ 55,697,004 | ¥ 26,504,962 | ||
USD | ||||||
Cash on hand | $ | $ 54,784 | $ 61,099 | ||||
Cash held in banks | $ | 10,241,626 | 7,683,106 | ||||
Cash and cash equivalents | $ | $ 10,296,410 | $ 7,744,205 |
Trade Payables (Details)
Trade Payables (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Trade payables | ¥ | ¥ 339,120 | ¥ 247,685 | ||
USD | ||||
Trade payables | $ | $ 47,445 | $ 36,079 |
Trade Payables (Details 1)
Trade Payables (Details 1) - Purchases [Member] | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration risk percentage | 100.00% | 100.00% |
Supplier A [Member] | ||
Concentration risk percentage | 52.00% | 59.00% |
Supplier B [Member] | ||
Concentration risk percentage | 37.00% | 17.00% |
Supplier C [Member] | ||
Concentration risk percentage | 8.00% | 11.00% |
Supplier D [Member] | ||
Concentration risk percentage | 2.00% | 4.00% |
Supplier E [Member] | ||
Concentration risk percentage | 4.00% | |
Supplier F [Member] | ||
Concentration risk percentage | 3.00% | |
Others [Member] | ||
Concentration risk percentage | 2.00% |
Trade Payables (Details Textual
Trade Payables (Details Textual) | 3 Months Ended |
Sep. 30, 2019 | |
Trade Payables (Textual) | |
Credit terms, description | 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) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Accrued payroll and bonus | ¥ | ¥ 312,801 | ¥ 301,894 | ||
Accrued and other payables | ¥ | 5,493,320 | 3,430,703 | ||
Other tax payables | ¥ | 1,079,712 | 466,538 | ||
Receipt in advance | ¥ | 960,276 | 1,499,033 | ||
Total | ¥ | ¥ 7,846,109 | ¥ 5,698,168 | ||
USD | ||||
Accrued payroll and bonus | $ | $ 43,762 | $ 43,976 | ||
Accrued and other payables | $ | 768,544 | 499,738 | ||
Other tax payables | $ | 151,057 | 67,959 | ||
Receipt in advance | $ | 134,348 | 218,359 | ||
Total | $ | $ 1,097,711 | $ 830,032 |
Amount Due to Director (Details
Amount Due to Director (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Classified as: | ||||
Current liabilities | ¥ | ¥ 16,218,437 | ¥ 13,392,777 | ||
Non-current liabilities | ¥ | 81,781,805 | 81,781,805 | ||
Total | ¥ | ¥ 98,000,242 | ¥ 95,174,582 | ||
USD | ||||
Classified as: | ||||
Current liabilities | $ | $ 2,269,043 | $ 1,950,878 | ||
Non-current liabilities | $ | 11,441,695 | 11,912,863 | ||
Total | $ | $ 13,710,738 | $ 13,863,741 |
Bank Borrowings (Details)
Bank Borrowings (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) | |
RMB | |||||
Loans from financial institutions | ¥ | [1] | ¥ 850,000 | ¥ 2,250,000 | ||
Classified as: | |||||
Current liabilities | ¥ | ¥ 850,000 | ¥ 2,250,000 | |||
USD | |||||
Loans from financial institutions | $ | [1] | $ 118,919 | $ 327,749 | ||
Classified as: | |||||
Current liabilities | $ | $ 118,919 | $ 327,749 | |||
[1] | Three loans from financial institutions bear fixed interest rates ranging from 5% to 5.59% per annum and mature on October 29, 2019, December 18, 2019, and March 14, 2020, respectively. |
Bank Borrowings (Details Textua
Bank Borrowings (Details Textual) | 3 Months Ended |
Sep. 30, 2019 | |
Bank Borrowings (Textual) | |
Maturity term, description | Mature on October 29, 2019, December 18, 2019, and March 14, 2020, respectively. |
Maximum [Member] | |
Bank Borrowings (Textual) | |
Loans from the financial institution are bearing fixed interest rate | 5.59% |
Minimum [Member] | |
Bank Borrowings (Textual) | |
Loans from the financial institution are bearing fixed interest rate | 5.00% |
Share Capital and Capital Man_3
Share Capital and Capital Management (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019CNY (¥)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018CNY (¥)shares | Sep. 30, 2018USD ($)shares | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018USD ($)shares | ||
RMB | |||||||
Beginning Balance | ¥ 2,765,228 | ¥ 1 | |||||
Common stock conversion | 246,671 | ||||||
Conversion of amount due to a director | 274,556 | ||||||
Shares issued for cash | 676,486 | ||||||
Shares issued as consideration for business acquisition | 182,131 | ||||||
Shares issued as consideration for business acquisition, Shares | shares | |||||||
Shares to be issued as consideration for business acquisition | [1] | ¥ 2,126,520 | |||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | ||||||
Reverse merger | ¥ (741,137) | ||||||
Shares were issued as consideration for business acquisition | [1] | ||||||
Shares were issued as consideration for business acquisition, Shares | shares | |||||||
Ending Balance, Before reverse split | ¥ 2,765,228 | ||||||
Shares were reversed split | |||||||
Ending Balance | ¥ 2,765,228 | ||||||
Issued and fully paid [Member] | USD | |||||||
Beginning Balance | $ | $ 98,191 | $ 4,270 | |||||
Beginning Balance, Shares | shares | 9,819,148 | 9,819,148 | 4,269,950 | 4,269,950 | |||
Common stock conversion | $ | $ 37,922 | ||||||
Common stock conversion, Shares | shares | 37,921,530 | 37,921,530 | |||||
Conversion of amount due to a director | $ | $ 15,000 | ||||||
Conversion of amount due to a director, Shares | shares | 15,000,000 | 15,000,000 | |||||
Shares issued for cash | $ | $ 13,000 | ||||||
Shares issued for cash, Shares | shares | 13,000,000 | 13,000,000 | |||||
Shares issued as consideration for business acquisition | $ | $ 28,000 | ||||||
Shares issued as consideration for business acquisition, Shares | shares | 28,000,000 | 28,000,000 | |||||
Shares to be issued as consideration for business acquisition | $ | [1] | ||||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | ||||||
Shares were issued as consideration for business acquisition | $ | [1] | $ 321,296 | |||||
Shares were issued as consideration for business acquisition, Shares | shares | [1] | 32,129,600 | 32,129,600 | ||||
Ending Balance, Before reverse split | $ | $ 98,191 | ||||||
Ending Balance, Shares, Before reverse split | shares | 9,819,140 | 9,819,140 | |||||
Shares were reversed split, Shares | shares | (88,372,332) | (88,372,332) | |||||
Ending Balance | $ | $ 419,487 | ||||||
Ending Balance, Shares | shares | 41,948,748 | 41,948,748 | |||||
Issued and fully paid [Member] | RMB | |||||||
Beginning Balance | ¥ 638,708 | ¥ 27,775 | |||||
Common stock conversion | 246,671 | ||||||
Conversion of amount due to a director | 97,570 | ||||||
Shares issued for cash | 84,561 | ||||||
Shares issued as consideration for business acquisition | 182,131 | ||||||
Shares issued as consideration for business acquisition, Shares | shares | |||||||
Shares to be issued as consideration for business acquisition | [1] | ||||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | ||||||
Reverse merger | |||||||
Shares were issued as consideration for business acquisition | [1] | ¥ 2,126,520 | |||||
Shares were issued as consideration for business acquisition, Shares | shares | |||||||
Ending Balance, Before reverse split | ¥ 638,708 | ¥ 638,708 | |||||
Shares were reversed split | |||||||
Ending Balance | ¥ 2,765,228 | ||||||
Shares to be issued [Member] | USD | |||||||
Beginning Balance | $ | $ 321,296 | ||||||
Beginning Balance, Shares | shares | 32,129,600 | 32,129,600 | |||||
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 | $ | [1] | $ 321,296 | |||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | 321,296,000 | 321,296,000 | ||||
Shares were issued as consideration for business acquisition | $ | [1] | $ (321,296) | |||||
Shares were issued as consideration for business acquisition, Shares | shares | [1] | (32,129,600) | (32,129,600) | ||||
Ending Balance, Before reverse split | $ | $ 321,296 | ||||||
Ending Balance, Shares, Before reverse split | shares | 321,296,000 | 321,296,000 | 321,296,000 | 321,296,000 | |||
Shares were reversed split | $ | |||||||
Shares were reversed split, Shares | shares | (289,166,400) | (289,166,400) | |||||
Ending Balance | $ 321,296 | ||||||
Ending Balance, Shares | shares | 32,129,600 | 32,129,600 | |||||
Shares to be issued [Member] | RMB | |||||||
Beginning Balance | 2,126,520 | ||||||
Beginning Balance, Shares | shares | |||||||
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 | [1] | ¥ 2,126,520 | |||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | ||||||
Shares were issued as consideration for business acquisition | [1] | ¥ (2,126,520) | |||||
Shares were issued as consideration for business acquisition, Shares | shares | |||||||
Ending Balance, Before reverse split | ¥ 2,126,520 | ¥ 2,126,520 | |||||
Shares were reversed split | |||||||
Ending Balance | 2,126,520 | ||||||
Additional paid in capital [Member] | USD | |||||||
Beginning Balance | $ | $ (4,269) | ||||||
Common stock conversion | $ | |||||||
Conversion of amount due to a director | $ | 27,209 | ||||||
Shares issued for cash | $ | 91,000 | ||||||
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 | $ | [1] | ||||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | ||||||
Reverse merger | $ | $ (113,940) | ||||||
Shares were issued as consideration for business acquisition | [1] | ||||||
Shares were issued as consideration for business acquisition, Shares | shares | |||||||
Shares were reversed split | |||||||
Ending Balance | |||||||
Additional paid in capital [Member] | RMB | |||||||
Beginning Balance | ¥ (27,774) | ||||||
Common stock conversion | |||||||
Conversion of amount due to a director | 176,986 | ||||||
Shares issued for cash | 591,925 | ||||||
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 | [1] | ||||||
Shares to be issued as consideration for business acquisition, Shares | shares | [1] | ||||||
Reverse merger | ¥ (741,137) | ||||||
Shares were issued as consideration for business acquisition | [1] | ||||||
Shares were issued as consideration for business acquisition, Shares | shares | |||||||
Ending Balance | |||||||
[1] | The 321,296,000 new shares, at $0.001 per share, are part of the consideration of the acquisition of Reliant Galaxy International Limited by the Company. The aggregated nominal value of the shares is US$321,296. |
Share Capital and Capital Man_4
Share Capital and Capital Management (Details Textual) - USD ($) | Aug. 07, 2019 | Jul. 22, 2019 | Jun. 29, 2018 | Sep. 30, 2019 | May 29, 2019 |
Share Capital and Capital Management (Textual) | |||||
Nominal value of per share | $ 0.001 | ||||
Consideration for business acquisition | 349,296,000 | 321,296,000 | 321,296,000 | ||
Business acquisition of per share | $ 0.001 | $ 0.001 | |||
Reverse stock split, description | The Company filed a Certificate of Amendment with the Secretary of State of Nevada to effect a reverse stock split of the issued and outstanding shares of its common stock at a ratio of one share for every 10 shares outstanding prior to the effective date of the reverse stock split. All current and historical information contained herein related to the share and per share information for the Company’s common stock or stock equivalents reflects the 1-for-10 reverse stock split of the Company’s outstanding shares of common stock that became market effective on August 7, 2019. There was no change in the number of the Company’s authorized shares of common stock. | ||||
Common stock, description | The Company effected a decrease in the number of its authorized Common Stock from 500,000,000 to 50,000,000, with its Common Stock’s par value unchanged at $0.001 per share. | ||||
USD | |||||
Share Capital and Capital Management (Textual) | |||||
Nominal value | $ 321,296 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | ||
Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018CNY (¥) | |
RMB | |||
Profit before income tax | ¥ | ¥ 13,990,473 | ¥ 14,053,154 | |
Taxation at the applicable tax rate of 25% | ¥ | 3,497,619 | 3,513,289 | |
Tax effect on non-taxable income | ¥ | (11,464) | (4,759) | |
Tax effects of expense that are not deductible | ¥ | 452,118 | 658,953 | |
(Over)/under-provision in respect of previous year | ¥ | |||
Income taxes | ¥ | ¥ 3,938,273 | ¥ 4,167,483 | |
USD | |||
Profit before income tax | $ | $ 1,957,339 | ||
Taxation at the applicable tax rate of 25% | $ | 489,335 | ||
Tax effect on non-taxable income | $ | (1,604) | ||
Tax effects of expense that are not deductible | $ | 63,254 | ||
(Over)/under-provision in respect of previous year | $ | |||
Income taxes | $ | $ 550,985 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Income Taxes (Textual) | |
Operating loss carryforward, description | The carry forwards will expire 20 years after they are incurred. |
PRC statutory income tax rate | 25.00% |
USD [Member] | |
Income Taxes (Textual) | |
Operating loss carryforwards | $ 24,581 |
Contribution Plan in the PRC (D
Contribution Plan in the PRC (Details) | 3 Months Ended |
Sep. 30, 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) - RMB - CNY (¥) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Components of lease costs: | ||
Total operating lease costs | ¥ 246,203 | |
Weighted average remaining lease term (years) of operating leases: | 1 year 2 months 30 days | |
Weighted average discount rate of operating leases: | 2.90% | |
Other - right-of-use assets | ¥ 774,727 | |
Lease liabilities included in: | ||
Accrued expenses - current portion of lease liabilities | (774,727) | |
Total lease liabilities | ¥ (774,727) |
Operating Lease Arrangement (_2
Operating Lease Arrangement (Details 1) - RMB - CNY (¥) | Sep. 30, 2019 | Sep. 30, 2018 |
Within 1 year | ¥ 792,694 | ¥ 216,000 |
After 1 year but within 2 years | 4,500 | 54,000 |
After 2 years but within 3 years | ||
After 3 years | ||
Total lease payments | 797,194 | 270,000 |
Less: Interest | (22,467) | |
Present value of lease liabilities | ¥ 774,727 |
Operating Lease Arrangement (_3
Operating Lease Arrangement (Details Textual) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Operating Lease Arrangement (Textual) | |
Operating lease initial period, description | The Company's leases generally have remaining lease terms of 1 year to 5 years and some of which include options to terminate the leases within 1 year. |
USD | |
Operating Lease Arrangement (Textual) | |
Additional operating lease right-of-use assets and lease liabilities | $ 700,000 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2019USD ($) |
RMB | ||||
Current-liabilities | ¥ | ¥ 16,218,437 | ¥ 13,392,777 | ||
Non-Current-liabilities | ¥ | 81,781,805 | 81,781,805 | ||
Total | ¥ | ¥ 98,000,242 | ¥ 95,174,582 | ||
USD | ||||
Current-liabilities | $ | $ 2,269,043 | $ 1,950,878 | ||
Non-Current-liabilities | $ | 11,441,695 | 11,912,863 | ||
Total | $ | $ 13,710,738 | $ 13,863,741 |
Details of Subsidiaries (Detail
Details of Subsidiaries (Details) | 3 Months Ended | |
Sep. 30, 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 marketing self-owned brand and wholesaling of spirits | |
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 | |
Attributable Equity interest | 100.00% | |
Principal activities | Marketing self-owned brand and wholesaling of spirits and wines | |
Fenyang Jinqiang Spirit Co., Ltd. [Member] | ||
Place and date of incorporation | Established in the PRC on November 7, 2013 | |
Capital | Registered capital 10,000,000 and Paid-in capital of RMB 5,000,000 | |
Attributable Equity interest | 100.00% | |
Principal activities | Marketing self-owned brand and wholesaling of spirits | |
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) | 3 Months Ended |
Sep. 30, 2019CNY (¥) | |
Details of Subsidiaries (Textual) | |
Share issued date | Mar. 31, 2037 |
Incorporation date term | 20 years |
RMB | |
Details of Subsidiaries (Textual) | |
Issued capital amount | ¥ 510,000 |
Investment (Details)
Investment (Details) - Guangzhou Silicon Technology Co., Ltd. [Member] | 3 Months Ended |
Sep. 30, 2019CNY (¥) | |
Place and date of incorporation | Established in the PRC on September 8, 2015 |
Attributable Equity interest | 20.00% |
Principal activities | Development, sale and provision of software solutions |
RMB | |
Capital | ¥ 5,000,000 |
Investment (Details Textual)
Investment (Details Textual) | Sep. 01, 2018 |
Fenyang Huaxin Spirit Development Co., Ltd. [Member] | |
Investment (Textual) | |
Acquired interest percentage | 20.00% |
Reverse Merger (Details)
Reverse Merger (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jun. 29, 2018 | Sep. 30, 2019 | May 29, 2019 | |
Reverse Merger (Textual) | |||
Issued capital, percentage | 100.00% | ||
New shares of common stock issued | 349,296,000 | 321,296,000 | 321,296,000 |
Par value, per share | $ 0.001 | $ 0.001 | |
Shares issued on closing date | 28,000,000 |
Note to the Consolidated Stat_2
Note to the Consolidated Statement of Cash Flows (Details) | 3 Months Ended |
Sep. 30, 2019CNY (¥) | |
RMB | |
Note to the Consolidated Statement of Cash Flows (Textual) | |
Director of the Company settled a bank loan | ¥ 1,900,000 |