Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 10, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | China Health Industries Holdings, Inc. | |
Entity Central Index Key | 0001309057 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 65,539,737 | |
Entity File Number | 000-51060 | |
Entity Incorporation State Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 36,675,831 | $ 35,507,535 |
Accounts receivable, net | 3,257,259 | 1,987,505 |
Inventory | 843,076 | 857,239 |
Other receivables, net | 28,105 | 28,435 |
Advances to suppliers | 221,863 | 8,619 |
Prepayments | 15,868 | |
Total current assets | 41,026,134 | 38,405,201 |
Property, plants and equipment, net | 3,923,779 | 3,719,424 |
Intangible assets, net | 2,513,928 | 2,782,869 |
Construction in progress | 517,201 | 835,452 |
Prepayments - Non-Current | 9,709 | |
Deferred tax assets | 2,206 | 2,235 |
Total assets | 47,983,248 | 45,754,890 |
Current liabilities | ||
Accounts payable and accrued expenses | 465,556 | 497,084 |
Other payables | 22,616 | 74,121 |
Advances from customers | 181,319 | 153,613 |
Related party debts | 7,209,075 | 6,962,520 |
Wages payable | 353,950 | 265,686 |
Taxes payable | 878,100 | 619,403 |
Total current liabilities | 9,110,616 | 8,572,427 |
Equity | ||
Common stock, ($0.0001 par value per share, 300,000,000 shares authorized, 65,539,737 and 65,539,737 shares issued and outstanding as of December 31, 2019 and June 30, 2019, respectively) | 6,554 | 6,554 |
Additional paid-in capital | 521,987 | 521,987 |
Accumulated other comprehensive income | (1,086,643) | (593,654) |
Statutory reserves | 38,679 | 38,679 |
Retained earnings | 39,392,055 | 37,208,897 |
Total stockholders’ equity | 38,872,632 | 37,182,463 |
Total liabilities and equity | $ 47,983,248 | $ 45,754,890 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 65,539,737 | 65,539,737 |
Common stock, shares outstanding | 65,539,737 | 65,539,737 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
REVENUE | $ 3,421,988 | $ 2,714,157 | $ 5,475,912 | $ 4,855,982 |
COST OF GOODS SOLD | (686,510) | (688,076) | (1,195,406) | (1,161,817) |
GROSS PROFIT | 2,735,478 | 2,026,081 | 4,280,506 | 3,694,165 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 633,303 | 406,305 | 1,000,291 | 1,020,295 |
Depreciation and amortization expenses | 150,752 | 142,758 | 289,916 | 284,280 |
Total operating expenses | (784,055) | (549,063) | (1,290,207) | (1,304,575) |
INCOME (LOSS) FROM OPERATIONS | 1,951,423 | 1,477,018 | 2,990,299 | 2,389,590 |
OTHER INCOME/(EXPENSES) | ||||
Interest income | 31,293 | 26,590 | 62,041 | 54,716 |
Interest expense | (1) | (1) | (3) | |
Other income/(expenses), net | 1 | 15,973 | (416) | 15,597 |
Bank charges | (237) | (274) | (362) | (709) |
Total other income, net | 31,057 | 42,288 | 61,262 | 69,601 |
INCOME/(LOSS) BEFORE INCOME TAXES | 1,982,480 | 1,519,306 | 3,051,561 | 2,459,191 |
Provision for income taxes | (555,896) | (402,041) | (868,403) | (709,710) |
NET INCOME (LOSS) | 1,426,584 | 1,117,267 | 2,183,158 | 1,749,481 |
Foreign currency translation gain (loss) | 1,000,316 | (44,931) | (492,989) | (1,343,058) |
COMPREHENSIVE INCOME | $ 2,426,900 | $ 1,072,336 | $ 1,690,169 | $ 406,423 |
Basic & diluted income (loss) per share | $ 0.0218 | $ 0.017 | $ 0.0333 | $ 0.0267 |
Weighted average shares outstanding: | ||||
Basic & diluted weighted average shares outstanding | 65,539,737 | 65,539,737 | 65,539,737 | 65,539,737 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) | Common Shares | Additional Paid-in Capital | Retained Earnings | Statutory Reserve | Accumulated Other Comprehensive Income (loss) | Total |
Balance at Jun. 30, 2018 | $ 6,554 | $ 521,987 | $ 33,901,858 | $ 38,679 | $ 775,302 | $ 35,244,380 |
Balance, shares at Jun. 30, 2018 | 65,539,737 | |||||
Net income | 1,749,481 | 1,749,481 | ||||
Other comprehensive loss - Translation adjustment | (1,343,058) | (1,343,058) | ||||
Balance at Dec. 31, 2018 | $ 6,554 | 521,987 | 35,651,339 | 38,679 | (567,756) | 35,650,803 |
Balance, shares at Dec. 31, 2018 | 65,539,737 | |||||
Balance at Sep. 30, 2018 | $ 6,554 | 521,987 | 34,534,072 | 38,679 | (522,825) | 34,578,467 |
Balance, shares at Sep. 30, 2018 | 65,539,737 | |||||
Net income | 1,117,267 | 1,117,267 | ||||
Other comprehensive loss - Translation adjustment | (44,931) | (44,931) | ||||
Balance at Dec. 31, 2018 | $ 6,554 | 521,987 | 35,651,339 | 38,679 | (567,756) | 35,650,803 |
Balance, shares at Dec. 31, 2018 | 65,539,737 | |||||
Balance at Jun. 30, 2019 | $ 6,554 | 521,987 | 37,208,897 | 38,679 | (593,654) | 37,182,463 |
Balance, shares at Jun. 30, 2019 | 65,539,737 | |||||
Net income | 2,183,158 | 2,183,158 | ||||
Other comprehensive loss - Translation adjustment | (492,989) | (492,989) | ||||
Balance at Dec. 31, 2019 | $ 6,554 | 521,987 | 39,392,055 | 38,679 | (1,086,643) | 38,872,632 |
Balance, shares at Dec. 31, 2019 | 65,539,737 | |||||
Balance at Sep. 30, 2019 | $ 6,554 | 521,987 | 37,965,471 | 38,679 | (2,086,959) | 36,445,732 |
Balance, shares at Sep. 30, 2019 | 65,539,737 | |||||
Net income | 1,426,584 | 1,426,584 | ||||
Other comprehensive loss - Translation adjustment | 1,000,316 | 1,000,316 | ||||
Balance at Dec. 31, 2019 | $ 6,554 | $ 521,987 | $ 39,392,055 | $ 38,679 | $ (1,086,643) | $ 38,872,632 |
Balance, shares at Dec. 31, 2019 | 65,539,737 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income (loss) from operations | $ 2,183,158 | $ 1,749,481 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expenses | 389,647 | 388,576 |
Provisions for doubtful accounts | (35,925) | 13 |
Provision for inventories | (154,767) | |
Deferred taxes loss/(gain) | (1) | (337) |
Changes in operating assets and liabilities, | ||
Accounts receivable | (1,253,232) | (1,279,100) |
Other receivables | (58) | 2,079 |
Inventory | 2,447 | (231,096) |
Advances to suppliers and prepaid expenses | (186,707) | 54,401 |
Accounts payables and accrued expenses | (24,592) | 115,066 |
Advances from customers and other payables | (20,534) | 231,888 |
Amounts due to related parties | 332,431 | 248,961 |
Wages payable | 91,193 | 64,401 |
Taxes payable | 250,639 | 360,982 |
Net cash provided by operating activities | 1,728,466 | 1,550,548 |
Cash Flows from Investing Activities | ||
Purchases of property, plants and equipment | (24,713) | (112,055) |
Expenditures in construction in progress | (130,964) | (82,709) |
Disposal of property, plant and equipment | 5,832 | |
Net cash provided by (used in) investing activities | (149,845) | (194,764) |
Cash Flows from Financing Activities | ||
Proceeds from related party debts | ||
Net cash provided by financing activities | ||
Effect of exchange rate changes on cash and cash equivalents | (410,325) | (1,221,789) |
Net decrease in cash and cash equivalents | 1,168,296 | 133,995 |
Cash and cash equivalents, beginning balance | 35,507,535 | 32,614,910 |
Cash and cash equivalents, ending balance | 36,675,831 | 32,748,905 |
Supplemental cash flow information | ||
Cash paid for income taxes | 654,004 | 420,968 |
Cash paid for interest expenses | ||
Non-cash activities: | ||
Loan from related party for the construction of a facility | $ 701,623 | $ 584,147 |
Organization and Business Backg
Organization and Business Background | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS BACKGROUND | Note 1 - ORGANIZATION AND BUSINESS BACKGROUND China Health Industries Holdings, Inc. ("China Health US") was incorporated in the State of Arizona on July 11, 1996, and is the successor to the business known as Arizona Mist, Inc., which was incorporated in 1989. On May 9, 2005, China Health US entered into a stock purchase agreement and share exchange (effecting a reverse merger) with Edmonds 6, Inc., a Delaware corporation ("Edmonds 6"), and changed its name to Universal Fog, Inc. Pursuant to this agreement, Universal Fog, Inc. (which has been in continuous operation since 1996) became a wholly-owned subsidiary of Edmonds 6. China Health Industries Holdings Limited ("China Health HK") was incorporated on July 20, 2007, in Hong Kong, under the Companies Ordinance as a limited liability company. China Health HK was formed for the purpose of seeking and consummating a merger or acquisition with a business entity organized as a private corporation, partnership, or sole proprietorship, as defined by Financial Accounting Standards Board ("FASB") ACS Topic 915. Harbin Humankind Biology Technology Co., Limited ("Humankind") was incorporated in Harbin City, Heilongjiang Province, the People's Republic of China (the "PRC"), on December 14, 2003, as a limited liability company under the PRC Company Law. Humankind is engaged in the manufacturing and sale of health products. On August 20, 2007, the sole shareholder of China Health HK entered into a share purchase agreement (the "Share Purchase Agreement") with the owners of Humankind. Pursuant to the Share Purchase Agreement, China Health HK purchased 100% of the equity interest in Humankind for cash consideration of $60,408 (the "Share Purchase"). Subsequent to the completion of the Share Purchase, Humankind became a wholly-owned subsidiary of China Health HK. Since the owner of Humankind owned a majority of the outstanding shares of China Health HK's common stock immediately following the execution of the Share Purchase Agreement, it was deemed to be the accounting acquirer in the reverse merger and the Share Purchase was accounted for as a "reverse merger". Consequently, the assets, liabilities and historical operations that were reflected in the financial statements for the periods prior to the Share Purchase are those of Humankind and have been recorded at historical cost basis. After the completion of the Share Purchase, China Health HK's consolidated financial statements include the assets and liabilities of both China Health HK and Humankind, the historical operations of Humankind, and the operations of China Health HK and its subsidiaries from the closing date of the Share Purchase onward. On October 14, 2008, Humankind formed a 99% owned subsidiary, Harbin Huimeijia Medicine Company ("Huimeijia"), in the PRC. Huimeijia's primary business is the manufacturing and distribution of pharmaceuticals. Mr. Xin Sun, the majority owner of China Health US, owned 1% of Huimeijia. On December 31, 2008, China Health HK entered into a reverse merger with Universal Fog, Inc. (the "Transaction"). China Health HK was the acquirer in the Transaction, and the Transaction has been treated as a recapitalization of China Health US. Following the Transaction and a subsequent 20:1 reverse stock split, Mr. Xin Sun owned 61,203,088 shares of common stock of China Health US, representing 98.3% of the 62,234,737 total outstanding shares of common stock. On April 7, 2009, Mr. Sun transferred 28,200,000 shares of common stock to 296 individuals, leaving him with 33,003,088 shares of common stock of China Health US, or approximately 53.03% of the total outstanding shares of common stock. Universal Fog, Inc. changed its name to China Health Industries Holdings, Inc. on February 19, 2009. On November 22, 2013, Humankind completed the acquisition of Heilongjiang Huimeijia Pharmaceutical Co., Ltd. ("HLJ Huimeijia") for a total purchase price of $16,339,869 (RMB100,000,000). HLJ Huimeijia was formed on October 30, 2003, in the PRC and is engaged in the manufacturing and distribution of tinctures, ointments, rub-in therapeutic pastes, topical solutions, suppositories, enemas, orally-administered liquids, and liniments, including traditional Chinese medicine extractions. HLJ Huimeijia's predecessor is Heilongjiang Xue Du Pharmaceutical Co., Ltd., which established its brand by supplying high quality medical products. HLJ Huimeijia is categorized as a "high and new technology" enterprise by the Science Technology Department of Heilongjiang Province. HLJ Huimeijia has 21 products that have been approved by, and have received approval numbers issued by, the China State Food and Drug Administration (the "CFDA"). In addition, HLJ Huimeijia is the holder of one patent for a utility model, five patents for external design, and three trademarks in the PRC, including the Chinese brand name "Xue Du", which has an established reputation among customers in the northeastern PRC. On December 24, 2014, Humankind entered into a stock transfer agreement (the "Original Agreement") with Xiuzheng Pharmaceutical Group Co., Ltd., a company incorporated under the laws of the PRC and located in Jilin province ("Xiuzheng Pharmacy" or the "Buyer"), Mr. Xin Sun, the CEO of the Company, and Huimeijia, which was 99% owned by Humankind and 1% owned by Mr. Xin Sun. Pursuant to the Original Agreement, Humankind and Mr. Xin Sun (the "Equity Holders"), sold their respective equity interests in Huimeijia to Xiuzheng Pharmacy. On October 12, 2016, the four parties agreed to rescind the Supplementary Agreement and entered into a supplementary agreement (the "October 2016 Supplementary Agreement"), pursuant to which the four parties agreed to execute the transfer of the equity interests based on the Original Agreement and the Equity Holders agreed to sell their respective equity interests in Huimeijia to Xiuzheng Pharmacy. The transfer of 100% of the equity interests of Huimeijia to the Buyer was for total cash consideration of RMB 8,000,000 (approximately $1,306,186) (the "Purchase Price") to the Equity Holders. Pursuant to the October 2016Supplementary Agreement, 40% of the Purchase Price is due within 10 business days after the signing of such agreement; 40% of the Purchase Price is due within 10 business days after the completion of the changes in business registration described in the Original Agreement and Xiuzheng Pharmacy obtaining documents evidencing its ownership of Huimeijia; 15% of the Purchase Price is due within 10 business days after the transfer of all of the Assets is approved by the Heilongjiang FDA; and 5% of the Purchase Price is due within 10 business days after all of the Assets have been transferred to Xiuzheng Pharmacy, or its designee, and Humankind and Mr. Xin Sun have instructed Xiuzheng Pharmacy to complete the three-batches production of all forms of the drugs included in the Assets. As of the date of this report, 80% of the Purchase Price has been paid, because the Company has completed changes in its business registration, Xiuzheng Pharmacy has obtained a business license to Huimeijia that was issued by the local State Administration of Industry and Commerce in Harbin ("Harbin SAIC") that reflects the recording of the ownership of Huimeijia as being held by Xiuzheng Pharmacy and with Harbin SAIC and the legal representative, a person that is authorized to take most of the corporate actions on behalf of a company under the corporate laws in China, of Huimeijia has been appointed by the Buyer.. China Health US, China Health HK, Humankind, and HLJ Huimeijia are collectively referred to herein as the "Company". As of December 31, 2019, the Company's corporate structure was as follows: |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Note 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This summary of the Company's significant accounting policies is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management ("Management"), which is responsible for the integrity and objectivity of the financial statements and notes. These accounting policies conform to generally accepted accounting principles in the United States ("US GAAP") and have been consistently applied in the preparation of the unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted as allowed by such rules and regulations, and Management believes that the disclosures are sufficient so that the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 2019. These unaudited condensed consolidated financial statements include all adjustments which, in the opinion of Management, are necessary for a fair presentation of the financial position and the results of operations of the Company. All such adjustments are of a normal and recurring nature. The results of operations of the Company for the Six months ended December 31, 2019 may not be indicative of results that may be expected for the year ended June 30, 2020. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include China Health US and its three subsidiary companies, namely China Health HK, Humankind, and HLJ Huimeijia. All significant intercompany balances and transactions have been eliminated in consolidation. On November 22, 2013, China Health US, through its wholly owned subsidiary Humankind, completed the acquisition of HLJ Huimeijia. HLJ Huimeijia and Humankind were and are under the common control of Mr. Xin Sun, the CEO of China Health US, before and after the date of transfer. Humankind's accounting policy adopted the guidance in ASC 805-50-05-5 for the transfer of net assets between entities under common control to apply an accounting method similar to the pooling-of-interests method. Under this method, the financial statements of Humankind shall report results of operations for the period in which the transfer occurs as though the transfer of net assets had occurred at the beginning of the period. Results of operations for that period will thus comprise both those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. Similarly, Humankind shall present statements of financial position and other financial information as of the beginning of the period as though the assets and liabilities had been transferred at that date. Financial statements and financial information of Humankind presented for prior years shall also be retrospectively adjusted to furnish comparative information. Segment Reporting FASB Accounting Standard Codification ("ASC") Topic 280, "Segment Reporting", established standards for reporting information about operating segments on a basis consistent with a company's internal organizational structure, as well as information about geographical areas, business segments, and major customers in financial statements for details on the Company's business segments. The Company has three reportable operating segments: Humankind, HLJ Huimeijia, and "Others". The segments are grouped based on the types of products provided. Fair Value of Financial Instruments The provisions of FASB ASC Topic 820 accounting guidance that apply to the Company require all entities to disclose the fair value of financial instruments, including both assets and liabilities recognized and those not recognized on the balance sheets, for which it is practicable to estimate fair value, and defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. Fair Value Measurements FASB ASC Topic 820, "Fair Value Measurements and Disclosures", clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the fair value of the Company's debt. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. These inputs are summarized in the three broad levels listed below: Level 1 – observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.. Level 3 – significant unobservable inputs, including the Company's own assumptions in determining the fair value of investments. The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or a nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. The Company had no financial assets or liabilities carried and measured on a recurring basis during the reporting periods. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors, including the type of instrument, whether the instrument is actively traded, and other characteristics particular to the transaction. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant discretion of Management. For other financial instruments, pricing inputs are less observable in the market and may require judgment of Management. Translation of Foreign Currencies Humankind and HLJ Huimeijia maintain their books and accounting records in the PRC currency "Renminbi" ("RMB"), which has been determined to be the Company's functional currency. Transactions denominated in currencies other than RMB are translated into RMB at the exchange rates prevailing on the dates of the respective transactions, as quoted by the Federal Reserve Board. Foreign currency exchange gains and losses resulting from these transactions are included in operations. Humankind and HLJ Huimeijia's financial statements are translated into the reporting currency, the United States Dollar ("USD"). Assets and liabilities of the aforementioned entities are translated at the prevailing exchange rate at the end date of each reporting period. Contributed capital accounts are translated using the historical rate of exchange when capital is injected. Income and expense accounts are translated at the average rate of exchange during the reporting period. Translation adjustments resulting from the translation of these financial statements are reflected as accumulated other comprehensive income in shareholders' equity and non-controlling interests. Statement of Cash Flows In accordance with Statement FASB ASC Topic 230, "Statement of Cash Flows", cash flow from the Company's operations is calculated based upon the local currencies and translated to the reporting currency using an average foreign exchange rate for the reporting period. As a result, amounts related to assets and liabilities reported in the statement of cash flows will not necessarily be the same as the corresponding balances on the balance sheets. Use of Estimates and Assumptions The preparation of financial statements in conformity with US GAAP requires Management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company's operating environment changes. Significant estimates and assumptions by Management include, among others, useful life of long-lived assets and intangible assets, valuation of inventory, accounts receivable and notes receivable, impairment analysis of long-lived assets, construction in progress, intangible assets, and deferred taxes. While Management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits in banks with maturities of three months or less, and all highly liquid investments which are unrestricted as to withdrawal or use and which have original maturities of three months or less at the time of purchase. As of December 31, 2019 and June 30, 2019, the Company's uninsured bank balances were mainly maintained at financial institutions located in the PRC and Hong Kong. The uninsured bank balances were $36,675,831 and $35,507,535 as of December 31, 2019 and June 30, 2019, respectively. The Company had no insured bank balances as of December 31, 2019 and June 30, 2019. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business, but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and determined based on Management's assessment of known requirements, aging of receivables, payment and bad debt history, the customer's current credit worthiness, changes in customer payment patterns and the economic environment. From November 1, 2013, the Company changed its credit policy by offering ninety (90) day payment terms for sales agents. As of December 31, 2019 and June 30, 2019, the balances of accounts receivable were $3,257,259 and $1,987,505, respectively. The Company determines the allowance based on aging data, historical collection experience, customer specific facts, and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company evaluated the nature of all accounts receivable then provided allowance for doubtful accounts. The Company has determined that an allowance of $34,534 and $71,713 was appropriate as of December 31, 2019 and June 30, 2019, respectively. Advances to Suppliers The Company periodically makes advances to certain vendors for purchases of raw materials or to service providers for services relating to construction plans for its plants, equipment and production lines for GMP upgrading, and records these payments as advances to suppliers. As of December 31, 2019 and June 30, 2019, advances to suppliers amounted to $221,863 and $8,619, respectively. The increase by $213,244 was mainly attributable to a new equipment Humankind bought which was still in transit as of December 31, 2019. Inventory Inventory consists of raw materials, work in progress, and finished goods or manufactured products. Inventory is stated at the lower of either cost or market value and consists of materials, labor and overhead. HLJ Huimeijia uses the weighted average method for inventory valuation. The other subsidiaries of the Company use the first-in, first-out ("FIFO") method for inventory valuation. Overhead costs included in finished goods include direct labor costs and other costs directly applicable to the manufacturing process. The Company evaluates inventory for excess, slow moving, and obsolete inventory, as well as inventory the value of which is in excess of its net realizable value. This evaluation includes analysis of sales levels by product and projections of future demand. If future demand or market conditions are less favorable than the Company's projections, a write-down of inventory may be required, and would be reflected in cost of goods sold in the period the revision is made. The inventory allowance in the amounts of $nil and $nil were provided for as of December 31, 2019 and June 30, 2019, respectively. Impairment of Long-Lived Assets The Company's long-lived assets and other assets are reviewed for impairment in accordance with the guidance of the FASB ASC Topic 360-10, "Property, Plant, and Equipment", and FASB ASC Topic 205, "Presentation of Financial Statements". The Company tests for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve Management's estimates on asset useful life and future cash flows. Actual useful life and cash flows could be different from those estimated by Management, which could have a material effect on the Company's reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. As of December 31, 2019 and June 30, 2019, the Company had not experienced impairment losses on its long-lived assets. However, there can be no assurances that demand for the Company's products or services will continue, which could result in an impairment of long-lived assets in the future. Property, Plants and Equipment Property, plants and equipment are carried at the lower of either cost or fair value. Maintenance, repairs and minor renewals are expensed as incurred, and major renewals and improvements that extend the life or increases the capacity of plant assets are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are included in the results of operations in the reporting period of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. The depreciable life applied are: Buildings, Warehouses and Improvements 20 to 30 years Office Equipment 3 to 7 years Vehicles 5 to15 years Machinery and Equipment 7 to 15 years Intangible Assets The Company evaluates intangible assets in accordance with FASB ASC Topic 350, "Intangibles — Goodwill and Other". Intangible assets deemed to have indefinite life are not amortized, but are subject to annual impairment tests. If the assumptions and estimates used to allocate the purchase price are not correct, or if business conditions change, purchase price adjustments or future asset impairment charges could be required. The value of the Company's intangible assets could be impacted by future adverse changes such as: (i) any future declines in the Company's operating results, (ii) a decline in the valuation of technology, including the valuation of the Company's common stock, (iii) a significant slowdown in the worldwide economy, or (iv) any failure to meet the performance projections included in the Company's forecasts of future operating results. In accordance with FASB ASC Topic 350, the Company tests intangible assets for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist. Impairment evaluations involve Management's estimates of asset useful life and future cash flows. Significant judgment of Management is required in the forecasts of future operating results that are used in the evaluations. It is possible, however, that the plans and estimates used may be incorrect. If the Company's actual results, or the plans and estimates used in future impairment analysis, are lower than the original estimates used to assess the recoverability of these assets, the Company could incur additional impairment charges in a future period. Based on such evaluations, there was no impairment recorded for intangible assets, for the six months ended December 31, 2019 and 2018. Construction in Progress Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company's plant facilities. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are placed into service. The Company reviews the carrying value of construction in progress for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value of the assets, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of the assets. The factors considered by Management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on this assessment, there was no impairments recorded for construction in progress, for the six months ended December 31, 2019 and 2018. Revenue Recognition The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company's products net sales, control transfers when products are shipped. The majority of the Company's revenue relates to the sale of inventory to customers, and revenue is recognized when control of the products or services is transferred to its customers. Given the nature of the Company's business and the applicable rules guiding revenue recognition, the Company's revenue recognition practices do not contain estimates that materially affect the results of operations. The Company records revenue at the discounted selling price and allows its customers to return products for exchange or credit subject to certain limitations. A provision for such returns is recorded based upon historical experience. There has been no provision recorded for returns based upon historical experience for the six months ended December 31, 2019 and 2018, respectively. Cost of Goods Sold Cost of goods sold consists primarily of the costs of raw materials, freight charges, direct labor, depreciation of plants and machinery, warehousing and overhead costs associated with the manufacturing process, and commission expenses. Income Taxes The Company has adopted FASB ASC Topic 740, "Income Taxes", which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years based on the differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In July 2006, the FASB issued FIN 48(ASC 740-10), "Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109 (ASC 740)", which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48(ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. As a result of the implementation of FIN 48 (ASC 740-10), the Company undertook a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or stockholders' equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company's financial statements. The application of tax laws and regulations is subject to legal and factual interpretation, judgment, and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations, and court rulings. Therefore, the actual liability may be materially different from the Company's estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. Enterprise Income Tax Under the Provisional Regulations of the PRC Concerning Income Tax on Enterprises promulgated by the PRC (the "EIT Law"), income tax is payable by enterprises at a rate of 25% of their taxable income. Value Added Tax The Provisional Regulations of the PRC Concerning Value Added Tax promulgated by the State Council came into effect on January 1, 1994. Under these regulations and the Implementing Rules of the Provisional Regulations of the PRC Concerning Value Added Tax, value added tax ("VAT") is imposed on goods sold in, or imported into, the PRC, and on processing, repair and replacement services provided within the PRC. VAT payable in the PRC is charged on an aggregated basis at a rate of 13% or 16% (depending on the type of goods involved) on the full price collected for the goods sold, in the case of taxable services provided, at a rate of 16% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of VAT included in the price or charges, and less any deductible VAT already paid by the taxpayer on purchases of goods and services in the same financial year. As of December 31, 2019 and June 30, 2019, VAT payables were $163,770 and $120,114, respectively. Sales-Related Taxes Pursuant to the tax law and regulations of the PRC, the Company is obligated to pay 7% and 5% of the annual aggregate VAT paid by the Company as taxes for the purposes of maintaining and building cities and educational facilities, which fees are included as sales-related taxes. Sales-related taxes are recorded when sales revenue is recognized. Sales-related taxes were $30,516 and $28,688 for the six months ended December 31, 2019 and 2018, respectively. Concentrations of Business and Credit Risks All of the Company's manufacturing takes place in the PRC. There can be no assurance that the Company will be able to successfully continue to manufacture its products and failure to do so would have a material adverse effect on the Company's financial position, results of operations, and cash flows. Also, the success of the Company's operations is subject to numerous contingencies, some of which are beyond Management's control. These contingencies include general economic conditions, prices of raw materials, competition, governmental and political conditions, and changes in regulations. Since the Company is dependent on trade in the PRC, the Company is subject to various additional political, economic, and other uncertainties. Among other risks, the Company's operations will be subject to the risks of restrictions on transfer of funds, domestic customs, changing taxation policies, foreign exchange restrictions, and political and governmental regulations. The Company operates in the PRC, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between U.S. dollars and RMB. The results of operations denominated in foreign currency are translated at the average rate of exchange during the reporting periods. Earnings Per Share Basic earnings per common share are computed by dividing net earnings applicable to common shareholders by the weighted-average number of common shares outstanding during the period. When applicable, diluted earnings per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. For the six months ended December 31, 2019 and 2018, the Company had no potential dilutive common stock equivalents outstanding. Potential common shares issued are calculated using the treasury stock method, which recognizes the use of proceeds that could be obtained upon the exercise of options and warrants in computing diluted earnings per share. It assumes that any proceeds would be used to purchase common stock at the average market price of the common stock during the period. FASB ASC Topic 260, "Earnings Per Share", requires a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The main objective of the standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In issuing this standard, the FASB is responding to criticism that today's guidance delays recognition of credit losses. The standard will replace today's "incurred loss" approach with an "expected loss" model. The new model, referred to as the current expected credit loss ("CECL") model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. The standard is applicable to loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, loan commitments and certain other off-balance sheet credit exposures, debt securities (including those held-to-maturity) and other financial assets measured at fair value through other comprehensive income, and beneficial interests in securitized financial assets. The CECL model does not apply to available-for-sale debt securities. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. Accordingly, the new methodology will be utilized when assessing the Company's financial instruments for impairment. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity's assumptions, models, and methods for estimating the allowance for loan and lease losses. ASU 2016-13 is effective for years beginning after December 15, 2019, including interim periods within those fiscal years under a modified retrospective approach. Early adoption is permitted for the periods beginning after December 15, 2018.The Company plans to adopt the guidance from July 1, 2020. The Company finalized its analysis and believes the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements and its internal controls over financial reporting. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13), which modifies the disclosure requirements on fair value measurements, including removing the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 also added new disclosures including the requirement to disclose (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019 and early adoption is permitted. This standard will only impact the disclosures pertaining to fair value measurements. The Company plans to adopt the guidance from July 1, 2020. The Company finalized its analysis and believes the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements and its internal controls over financial reporting. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 3 - ACCOUNTS RECEIVABLE The Company's accounts receivables were $3,257,259 and $1,987,505, net of allowances for doubtful accounts amounting to $34,534 and $71,713, as of December 31, 2019 and June 30, 2019, respectively. |
Inventory
Inventory | 6 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | NOTE 4 - INVENTORY Inventory consisted of following: December 31, June 30, 2019 2019 Raw Materials $ 104,934 $ 320,334 Supplies and Packing Materials 273,757 91,110 Work-in-Progress 79,291 85,191 Finished Goods 385,094 360,604 Total $ 843,076 $ 857,239 The inventory allowance in the amounts of $nil and $nil were provided for as of December 31, 2019 and June 30, 2019, respectively. |
Construction in Progress
Construction in Progress | 6 Months Ended |
Dec. 31, 2019 | |
Construction in Progress [Abstract] | |
CONSTRUCTION IN PROGRESS | NOTE 5 - CONSTRUCTION IN PROGRESS Construction in progress of the Company consisted of the following: December 31, June 30, 2019 2019 Plant - HLJ Huimeijia $ 517,201 $ 806,612 Factory Maintenance - Humankind - 28,840 Total $ 517,201 $ 835,452 On April 6, 2012, HLJ Huimeijia entered into an agreement with a contractor for construction of the HLJ Huimeijia plant. The estimated total cost of construction was approximately $1.86 million (RMB 12,800,000). As of December 31, 2019, 77% of construction has been completed, $ 517,201 892,213 6,211,409 |
Property, Plants and Equipment
Property, Plants and Equipment | 6 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANTS AND EQUIPMENT | NOTE 6 - PROPERTY, PLANTS AND EQUIPMENT Property, plants and equipment consisted of the following: December 31, June 30, 2019 2019 Building, Warehouses and Improvements $ 3,797,881 $ 3,474,056 Machinery and Equipment 1,754,873 1,876,174 Office Equipment 75,392 76,435 Vehicles 209,558 212,456 Others 926,204 910,178 Less: Accumulated Depreciation (2,840,129 ) (2,829,875 ) Total $ 3,923,779 $ 3,719,424 Depreciation expenses were $160,788.03 and $154,199 for the six months ended December 31, 2019 and 2018, respectively. Depreciation expenses charged to operations were $61,057 and $49,903 for the six months ended December 31, 2019 and 2018, respectively. Depreciation expenses charged to cost of goods sold were $99,731 and $104,296 for the six months ended December 31, 2019 and 2018, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 - INTANGIBLE ASSETS The following is a summary of intangible assets of the Company: December 31, 2019 June 30, 2019 Land Use Rights – Humankind $ 910,394 $ 922,990 Health Supplement Product Patents – Humankind 4,309,231 4,368,847 Pharmaceutical Patents - HLJ Huimeijia 375,502 380,697 Land Use Rights - HLJ Huimeijia 622,696 631,311 Less: Accumulated Amortization (3,703,895 ) (3,520,976 ) Total $ 2,513,928 $ 2,782,869 All land in the PRC belongs to the government of the PRC. Enterprises and individuals can pay the PRC government a fee to obtain the right to use a piece of land for commercial purposes or residential purposes for an initial period of 50 years or 70 years. These land use rights can be sold, purchased, and exchanged in the market. The successive owner of the land use right will have the right to use the land for the time remaining on the initial period. Amortization expenses was $228,859 and $234,377 for the six months ended December 31, 2019 and 2018, respectively. |
Related Party Debts
Related Party Debts | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY DEBTS | NOTE 8 - RELATED PARTY DEBTS Related party debts, which represent temporary short-term loans from Mr. Xin Sun and Mr. Kai Sun, consisted of the following: December 31, 2019 June 30, 2019 Mr. Xin Sun $ 7,175,486 $ 6,928,467 Mr. Kai Sun 33,589 34,053 Total $ 7,209,075 $ 6,962,520 These loans are unsecured, non-interest bearing, and have no fixed terms of repayment; therefore, they are deemed payable on demand. Mr. Kai Sun is a PRC citizen and a family member of Mr. Xin Sun, the CEO of the Company. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES (a) Corporate income taxes United States China Health US was organized in the United States. China Health US had no taxable income for US income tax purposes for the six months ended December 31, 2019 and 2018. As of December 31, 2019, China Health US had a net operating loss carry forward for United States income tax purposes. Net operating loss carry forwards is available to reduce future years' taxable income. Management believes that the realization of the benefits from these losses appears uncertain due to the Company's operating history and the continued losses of its US entity. Accordingly, the Company has provided a 100% valuation allowance on the deferred tax asset to reduce the asset to zero. There were no changes in the valuation allowance for the six months ended December 31, 2019 and 2018. Management reviews this valuation allowance periodically and makes adjustments accordingly. Hong Kong China Health HK was incorporated in Hong Kong and is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provision for income taxes have been made because China Health HK had no taxable income in Hong Kong. People's Republic of China Under the EIT Law, the standard EIT rate is 25%. The PRC subsidiaries of the Company are subject to PRC income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which they operate. The provision for income taxes of the Company consisted of the following for the six months ended December 31, 2019 and 2018: For the Three Months Ended For the Six Months Ended December 31, December 31, 2019 2018 2019 2018 Current provision: USA $ - $ - $ - $ - China 555,896 402,041 868,403 709,710 Total current provision 555,896 402,041 868,403 709,710 Deferred provision: - - - - USA - - - - China - - - - Total deferred provision - - - - Total $ 555,896 $ 402,041 $ 868,403 $ 709,710 Significant components of deferred tax assets of the Company were as follows: December 31, June 30, 2018 2019 Deferred tax assets Net operating loss carry forward $ 968,614 $ 869,502 Allowances for doubtful accounts 8,634 17,928 Valuation allowance (975,042 ) (885,195 ) Total $ 2,206 $ 2,235 (b) Uncertain tax positions There were no unrecognized tax benefits as of December 31, 2019 and June 30, 2019. Management does not anticipate any potential future adjustments in the next twelve months which would result in a material change to its tax positions. For the six months ended December 31, 2019 and 2018, the Company did not incur any interest or penalties arising from its tax payments. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS/(LOSS) PER SHARE | NOTE 10 - EARNINGS PER SHARE Basic earnings per common share is computed by dividing net earnings applicable to common shareholders by the weighted-average number of common shares outstanding during the period. When applicable, diluted earnings per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. Potential common shares issued are calculated using the treasury stock method, which recognizes the use of proceeds that could be obtained upon the exercise of options and warrants in computing dilutive earnings per share. It assumes that any proceeds would be used to purchase common stock at the average of the market price of the common stock during the period. FASB ASC Topic 260, Earnings Per Share, requires a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations. For the six months ended December 31, 2019 and 2018, the Company did not have potential dilutive shares. The following table sets forth the computation of basic and diluted net income per share: For the Three Months For the Six Months December 31, December 31, 2019 2018 2019 2018 Net income/(loss) attributable to China Health Industries Holdings $ 1,426,584 $ 1,117,265 $ 2,183,158 $ 1,749,481 Net income/(loss) per share: Basic & diluted $ 0.0218 $ 0.0170 $ 0.0333 0.0267 Weighted average shares outstanding: Basic & diluted 65,539,737 65,539,737 65,539,737 65,539,737 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES The Company's assets are located in the PRC and revenues are derived from operations in the PRC. In terms of industry regulations and policies, the economy of the PRC has been transitioning from a planned economy to market oriented economy. Although in recent years the Chinese government has implemented measures emphasizing the utilization of market forces for economic reforms, the reduction of state ownership of productive assets and the establishment of sound corporate governance in business enterprises, a substantial portion of productive assets in the PRC is still owned by the Chinese government. For example, all land is state owned and leased to business entities or individuals through the government's granting of Land Use Rights. The granting process is typically based on government policies at the time of granting and can be lengthy and complex. This process may adversely affect the Company's future manufacturing expansions. The Chinese government also exercises significant control over the PRC's economic growth through the allocation of resources and providing preferential treatment to particular industries or companies. Uncertainties may arise with changing of governmental policies and measures. The Company faces a number of risks and challenges not typically associated with companies in North America and Western Europe, since its assets exist solely in the PRC, and its revenues are derived from its operations therein. The PRC is a developing country with an early stage market economic system, overshadowed by the state. Its political and economic systems are very different from the more developed countries and are in a state of change. The PRC also faces many social, economic and political challenges that may produce major shocks, instabilities and even crises, in both its domestic arena and in its relationships with other countries, including the United States. Such shocks, instabilities and crises may in turn significantly and negatively affect the Company's performance. The Company had no rental commitment as of December 31, 2019. |
Major Suppliers and Customers
Major Suppliers and Customers | 6 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
MAJOR SUPPLIERS AND CUSTOMERS | NOTE 12 - MAJOR SUPPLIERS AND CUSTOMERS For the six months ended December 31, 2019, the Company had three suppliers that in the aggregate accounted for 75% of the Company's purchases, with each supplier accounting for 35%, 20%, and 20%, respectively. For the six months ended December 31, 2018, the Company had three suppliers that in the aggregate accounted for 76% of the Company's purchases for operations, with each supplier accounting for 46%, 16%, and 14%, respectively. For the six months ended December 31, 2019, the Company had six customers that in the aggregate accounted for 81% of the Company's total sales, with each customer accounting for 20%, 16%, 15%, 11%, 11%, and 8%, respectively. For the six months ended December 31, 2018, the Company had six customers that in the aggregate accounted for 84% of the Company's total sales for operations, with each customer accounting for 21%, 17%, 15%, 12%, 11% and 8%, respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 13 - SEGMENT REPORTING The Company is organized into the following three main business segments based on the types of products being provided to customers: HLJ Huimeijia, Humankind, and "Others". Each of the three aforementioned operating segments has separate and distinct general ledgers. The chief operating decision maker ("CODM") receives financial information, including information regarding revenue, gross margin, operating income, and net income, from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income (loss) by segment. The following tables present summary information by segment for the three and six months ended December 31, 2019 and 2018, respectively: For the Three Months Ended For the Three Months Ended HLJ HLJ Huimeijia Humankind Others Consolidated Huimeijia Humankind Others Consolidated Revenues $ 8,894 $ 3,413,094 $ - $ 3,421,988 $ 29,272 $ 2,684,885 $ - $ 2,714,157 Cost of revenues (4,528 ) (681,982 ) - (686,510 ) (34,919 ) (653,157 ) - (688,076 ) Gross profit 4,366 2,731,112 - 2,735,478 (5,647 ) 2,031,728 - 2,026,081 Interest expense - - - - - - (1 ) (1 ) Depreciation and amortization (21,451 ) (129,301 ) - (150,752 ) (11,823 ) (130,935 ) - (142,758 ) Income tax - (555,896 ) - (555,896 ) (402,041 ) (402,041 ) Net income (loss) (163,903 ) 1,667,687 (77,200 ) 1,426,584 (77,027 ) 1,206,114 (11,822 ) 1,117,265 Total capital expenditures (1 ) (22,435 ) (22,434 ) (72,974 ) (20,719 ) - (93,963 ) Total assets $ 3,530,191 $ 45,384,617 $ (931,560 ) $ 47,983,248 $ 3,610,890 $ 40,480,428 $ (24 ) $ 44,091,294 For the Six Months Ended For the Six Months Ended HLJ HLJ Huimeijia Humankind Others Consolidated Huimeijia Humankind Others Consolidated Revenues $ 35,829 $ 5,440,083 $ - $ 5,475,912 $ 45,589 $ 4,810,393 $ - $ 4,855,982 Cost of revenues (39,536 ) (1,155,870 ) - (1,195,406 ) (55,384 ) (1,106,433 ) - (1,161,817 ) Gross profit (3,707 ) 4,284,213 - 4,280,506 (9,795 ) 3,703,960 - 3,694,165 Interest expense - - (3 ) (3 ) - - (3 ) (3 ) Depreciation and amortization (30,772 ) (259,144 ) - (289,916 ) 18,828 265,452 - 284,280 Income tax (868,403 ) - (868,403 ) 709,710 - 709,710 Net income (loss) (262,198 ) 2,605,207 (159,851 ) 2,183,158 (230,972 ) 2,130,480 (150,027 ) 1,749,481 ) Total capital expenditures (572 ) (130,964 ) - (131,536 ) 45,589 4,810,393 - 4,855,982 Total assets $ 3,530,191 $ 45,384,617 $ (931,560 ) $ 47,983,248 $ 55,384 1,106,433 - 1,161,817 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 - SUBSEQUENT EVENTS The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there are no additional items to disclose. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation This summary of the Company's significant accounting policies is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management ("Management"), which is responsible for the integrity and objectivity of the financial statements and notes. These accounting policies conform to generally accepted accounting principles in the United States ("US GAAP") and have been consistently applied in the preparation of the unaudited condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted as allowed by such rules and regulations, and Management believes that the disclosures are sufficient so that the information presented is not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 2019. These unaudited condensed consolidated financial statements include all adjustments which, in the opinion of Management, are necessary for a fair presentation of the financial position and the results of operations of the Company. All such adjustments are of a normal and recurring nature. The results of operations of the Company for the Six months ended December 31, 2019 may not be indicative of results that may be expected for the year ended June 30, 2020. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include China Health US and its three subsidiary companies, namely China Health HK, Humankind, and HLJ Huimeijia. All significant intercompany balances and transactions have been eliminated in consolidation. On November 22, 2013, China Health US, through its wholly owned subsidiary Humankind, completed the acquisition of HLJ Huimeijia. HLJ Huimeijia and Humankind were and are under the common control of Mr. Xin Sun, the CEO of China Health US, before and after the date of transfer. Humankind's accounting policy adopted the guidance in ASC 805-50-05-5 for the transfer of net assets between entities under common control to apply an accounting method similar to the pooling-of-interests method. Under this method, the financial statements of Humankind shall report results of operations for the period in which the transfer occurs as though the transfer of net assets had occurred at the beginning of the period. Results of operations for that period will thus comprise both those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. Similarly, Humankind shall present statements of financial position and other financial information as of the beginning of the period as though the assets and liabilities had been transferred at that date. Financial statements and financial information of Humankind presented for prior years shall also be retrospectively adjusted to furnish comparative information. |
Segment Reporting | Segment Reporting FASB Accounting Standard Codification ("ASC") Topic 280, "Segment Reporting", established standards for reporting information about operating segments on a basis consistent with a company's internal organizational structure, as well as information about geographical areas, business segments, and major customers in financial statements for details on the Company's business segments. The Company has three reportable operating segments: Humankind, HLJ Huimeijia, and "Others". The segments are grouped based on the types of products provided. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The provisions of FASB ASC Topic 820 accounting guidance that apply to the Company require all entities to disclose the fair value of financial instruments, including both assets and liabilities recognized and those not recognized on the balance sheets, for which it is practicable to estimate fair value, and defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. |
Fair Value Measurements | Fair Value Measurements FASB ASC Topic 820, "Fair Value Measurements and Disclosures", clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosures about the use of fair value measurements. Various inputs are considered when determining the fair value of the Company's debt. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. These inputs are summarized in the three broad levels listed below: Level 1 – observable market inputs that are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc.. Level 3 – significant unobservable inputs, including the Company's own assumptions in determining the fair value of investments. The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or a nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. The Company had no financial assets or liabilities carried and measured on a recurring basis during the reporting periods. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors, including the type of instrument, whether the instrument is actively traded, and other characteristics particular to the transaction. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant discretion of Management. For other financial instruments, pricing inputs are less observable in the market and may require judgment of Management. |
Translation of Foreign Currencies | Translation of Foreign Currencies Humankind and HLJ Huimeijia maintain their books and accounting records in the PRC currency "Renminbi" ("RMB"), which has been determined to be the Company's functional currency. Transactions denominated in currencies other than RMB are translated into RMB at the exchange rates prevailing on the dates of the respective transactions, as quoted by the Federal Reserve Board. Foreign currency exchange gains and losses resulting from these transactions are included in operations. Humankind and HLJ Huimeijia's financial statements are translated into the reporting currency, the United States Dollar ("USD"). Assets and liabilities of the aforementioned entities are translated at the prevailing exchange rate at the end date of each reporting period. Contributed capital accounts are translated using the historical rate of exchange when capital is injected. Income and expense accounts are translated at the average rate of exchange during the reporting period. Translation adjustments resulting from the translation of these financial statements are reflected as accumulated other comprehensive income in shareholders' equity and non-controlling interests. |
Statement of Cash Flows | Statement of Cash Flows In accordance with Statement FASB ASC Topic 230, "Statement of Cash Flows", cash flow from the Company's operations is calculated based upon the local currencies and translated to the reporting currency using an average foreign exchange rate for the reporting period. As a result, amounts related to assets and liabilities reported in the statement of cash flows will not necessarily be the same as the corresponding balances on the balance sheets. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with US GAAP requires Management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions of future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company's operating environment changes. Significant estimates and assumptions by Management include, among others, useful life of long-lived assets and intangible assets, valuation of inventory, accounts receivable and notes receivable, impairment analysis of long-lived assets, construction in progress, intangible assets, and deferred taxes. While Management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits in banks with maturities of three months or less, and all highly liquid investments which are unrestricted as to withdrawal or use and which have original maturities of three months or less at the time of purchase. As of December 31, 2019 and June 30, 2019, the Company's uninsured bank balances were mainly maintained at financial institutions located in the PRC and Hong Kong. The uninsured bank balances were $36,675,831 and $35,507,535 as of December 31, 2019 and June 30, 2019, respectively. The Company had no insured bank balances as of December 31, 2019 and June 30, 2019. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business, but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and determined based on Management's assessment of known requirements, aging of receivables, payment and bad debt history, the customer's current credit worthiness, changes in customer payment patterns and the economic environment. From November 1, 2013, the Company changed its credit policy by offering ninety (90) day payment terms for sales agents. As of December 31, 2019 and June 30, 2019, the balances of accounts receivable were $3,257,259 and $1,987,505, respectively. The Company determines the allowance based on aging data, historical collection experience, customer specific facts, and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company evaluated the nature of all accounts receivable then provided allowance for doubtful accounts. The Company has determined that an allowance of $34,534 and $71,713 was appropriate as of December 31, 2019 and June 30, 2019, respectively. |
Advances to Suppliers | Advances to Suppliers The Company periodically makes advances to certain vendors for purchases of raw materials or to service providers for services relating to construction plans for its plants, equipment and production lines for GMP upgrading, and records these payments as advances to suppliers. As of December 31, 2019 and June 30, 2019, advances to suppliers amounted to $221,863 and $8,619, respectively. The increase by $213,244 was mainly attributable to a new equipment Humankind bought which was still in transit as of December 31, 2019. |
Inventory | Inventory Inventory consists of raw materials, work in progress, and finished goods or manufactured products. Inventory is stated at the lower of either cost or market value and consists of materials, labor and overhead. HLJ Huimeijia uses the weighted average method for inventory valuation. The other subsidiaries of the Company use the first-in, first-out ("FIFO") method for inventory valuation. Overhead costs included in finished goods include direct labor costs and other costs directly applicable to the manufacturing process. The Company evaluates inventory for excess, slow moving, and obsolete inventory, as well as inventory the value of which is in excess of its net realizable value. This evaluation includes analysis of sales levels by product and projections of future demand. If future demand or market conditions are less favorable than the Company's projections, a write-down of inventory may be required, and would be reflected in cost of goods sold in the period the revision is made. The inventory allowance in the amounts of $nil and $nil were provided for as of December 31, 2019 and June 30, 2019, respectively. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company's long-lived assets and other assets are reviewed for impairment in accordance with the guidance of the FASB ASC Topic 360-10, "Property, Plant, and Equipment", and FASB ASC Topic 205, "Presentation of Financial Statements". The Company tests for impairment losses on long-lived assets used in operations whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount of the asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value. Impairment evaluations involve Management's estimates on asset useful life and future cash flows. Actual useful life and cash flows could be different from those estimated by Management, which could have a material effect on the Company's reporting results and financial position. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. As of December 31, 2019 and June 30, 2019, the Company had not experienced impairment losses on its long-lived assets. However, there can be no assurances that demand for the Company's products or services will continue, which could result in an impairment of long-lived assets in the future. |
Property, Plants and Equipment | Property, Plants and Equipment Property, plants and equipment are carried at the lower of either cost or fair value. Maintenance, repairs and minor renewals are expensed as incurred, and major renewals and improvements that extend the life or increases the capacity of plant assets are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gains or losses are included in the results of operations in the reporting period of disposition. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. The depreciable life applied are: Buildings, Warehouses and Improvements 20 to 30 years Office Equipment 3 to 7 years Vehicles 5 to15 years Machinery and Equipment 7 to 15 years |
Intangible Assets | Intangible Assets The Company evaluates intangible assets in accordance with FASB ASC Topic 350, "Intangibles — Goodwill and Other". Intangible assets deemed to have indefinite life are not amortized, but are subject to annual impairment tests. If the assumptions and estimates used to allocate the purchase price are not correct, or if business conditions change, purchase price adjustments or future asset impairment charges could be required. The value of the Company's intangible assets could be impacted by future adverse changes such as: (i) any future declines in the Company's operating results, (ii) a decline in the valuation of technology, including the valuation of the Company's common stock, (iii) a significant slowdown in the worldwide economy, or (iv) any failure to meet the performance projections included in the Company's forecasts of future operating results. In accordance with FASB ASC Topic 350, the Company tests intangible assets for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist. Impairment evaluations involve Management's estimates of asset useful life and future cash flows. Significant judgment of Management is required in the forecasts of future operating results that are used in the evaluations. It is possible, however, that the plans and estimates used may be incorrect. If the Company's actual results, or the plans and estimates used in future impairment analysis, are lower than the original estimates used to assess the recoverability of these assets, the Company could incur additional impairment charges in a future period. Based on such evaluations, there was no impairment recorded for intangible assets, for the six months ended December 31, 2019 and 2018. |
Construction in Progress | Construction in Progress Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company's plant facilities. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are placed into service. The Company reviews the carrying value of construction in progress for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value of the assets, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of the assets. The factors considered by Management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on this assessment, there was no impairments recorded for construction in progress, for the six months ended December 31, 2019 and 2018. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its customers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company's products net sales, control transfers when products are shipped. The majority of the Company's revenue relates to the sale of inventory to customers, and revenue is recognized when control of the products or services is transferred to its customers. Given the nature of the Company's business and the applicable rules guiding revenue recognition, the Company's revenue recognition practices do not contain estimates that materially affect the results of operations. The Company records revenue at the discounted selling price and allows its customers to return products for exchange or credit subject to certain limitations. A provision for such returns is recorded based upon historical experience. There has been no provision recorded for returns based upon historical experience for the six months ended December 31, 2019 and 2018, respectively. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold consists primarily of the costs of raw materials, freight charges, direct labor, depreciation of plants and machinery, warehousing and overhead costs associated with the manufacturing process, and commission expenses. |
Income Taxes | Income Taxes The Company has adopted FASB ASC Topic 740, "Income Taxes", which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years based on the differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. In July 2006, the FASB issued FIN 48(ASC 740-10), "Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109 (ASC 740)", which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48(ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. As a result of the implementation of FIN 48 (ASC 740-10), the Company undertook a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or stockholders' equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company's financial statements. The application of tax laws and regulations is subject to legal and factual interpretation, judgment, and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations, and court rulings. Therefore, the actual liability may be materially different from the Company's estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance. |
Enterprise Income Tax | Enterprise Income Tax Under the Provisional Regulations of the PRC Concerning Income Tax on Enterprises promulgated by the PRC (the "EIT Law"), income tax is payable by enterprises at a rate of 25% of their taxable income. |
Value Added Tax | Value Added Tax The Provisional Regulations of the PRC Concerning Value Added Tax promulgated by the State Council came into effect on January 1, 1994. Under these regulations and the Implementing Rules of the Provisional Regulations of the PRC Concerning Value Added Tax, value added tax ("VAT") is imposed on goods sold in, or imported into, the PRC, and on processing, repair and replacement services provided within the PRC. VAT payable in the PRC is charged on an aggregated basis at a rate of 13% or 16% (depending on the type of goods involved) on the full price collected for the goods sold, in the case of taxable services provided, at a rate of 16% on the charges for the taxable services provided, but excluding, in respect of both goods and services, any amount paid in respect of VAT included in the price or charges, and less any deductible VAT already paid by the taxpayer on purchases of goods and services in the same financial year. As of December 31, 2019 and June 30, 2019, VAT payables were $163,770 and $120,114, respectively. |
Sales Related Taxes | Sales-Related Taxes Pursuant to the tax law and regulations of the PRC, the Company is obligated to pay 7% and 5% of the annual aggregate VAT paid by the Company as taxes for the purposes of maintaining and building cities and educational facilities, which fees are included as sales-related taxes. Sales-related taxes are recorded when sales revenue is recognized. Sales-related taxes were $30,516 and $28,688 for the six months ended December 31, 2019 and 2018, respectively. |
Concentrations of Business and Credit Risks | Concentrations of Business and Credit Risks All of the Company's manufacturing takes place in the PRC. There can be no assurance that the Company will be able to successfully continue to manufacture its products and failure to do so would have a material adverse effect on the Company's financial position, results of operations, and cash flows. Also, the success of the Company's operations is subject to numerous contingencies, some of which are beyond Management's control. These contingencies include general economic conditions, prices of raw materials, competition, governmental and political conditions, and changes in regulations. Since the Company is dependent on trade in the PRC, the Company is subject to various additional political, economic, and other uncertainties. Among other risks, the Company's operations will be subject to the risks of restrictions on transfer of funds, domestic customs, changing taxation policies, foreign exchange restrictions, and political and governmental regulations. The Company operates in the PRC, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility of foreign exchange rates between U.S. dollars and RMB. The results of operations denominated in foreign currency are translated at the average rate of exchange during the reporting periods. |
Earnings Per Share | Earnings Per Share Basic earnings per common share are computed by dividing net earnings applicable to common shareholders by the weighted-average number of common shares outstanding during the period. When applicable, diluted earnings per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and warrants. For the six months ended December 31, 2019 and 2018, the Company had no potential dilutive common stock equivalents outstanding. Potential common shares issued are calculated using the treasury stock method, which recognizes the use of proceeds that could be obtained upon the exercise of options and warrants in computing diluted earnings per share. It assumes that any proceeds would be used to purchase common stock at the average market price of the common stock during the period. FASB ASC Topic 260, "Earnings Per Share", requires a reconciliation of the numerator and denominator of the basic and diluted earnings per share (EPS) computations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The main objective of the standard is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. In issuing this standard, the FASB is responding to criticism that today's guidance delays recognition of credit losses. The standard will replace today's "incurred loss" approach with an "expected loss" model. The new model, referred to as the current expected credit loss ("CECL") model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. The standard is applicable to loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, loan commitments and certain other off-balance sheet credit exposures, debt securities (including those held-to-maturity) and other financial assets measured at fair value through other comprehensive income, and beneficial interests in securitized financial assets. The CECL model does not apply to available-for-sale debt securities. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the credit losses will be recognized as allowances rather than reductions in the amortized cost of the securities. Accordingly, the new methodology will be utilized when assessing the Company's financial instruments for impairment. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity's assumptions, models, and methods for estimating the allowance for loan and lease losses. ASU 2016-13 is effective for years beginning after December 15, 2019, including interim periods within those fiscal years under a modified retrospective approach. Early adoption is permitted for the periods beginning after December 15, 2018.The Company plans to adopt the guidance from July 1, 2020. The Company finalized its analysis and believes the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements and its internal controls over financial reporting. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13), which modifies the disclosure requirements on fair value measurements, including removing the requirement to disclose (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels and (3) the valuation processes for Level 3 fair value measurements. ASU 2018-13 also added new disclosures including the requirement to disclose (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019 and early adoption is permitted. This standard will only impact the disclosures pertaining to fair value measurements. The Company plans to adopt the guidance from July 1, 2020. The Company finalized its analysis and believes the adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements and its internal controls over financial reporting. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of straight-line basis over the estimated useful life of assets | Buildings, Warehouses and Improvements 20 to 30 years Office Equipment 3 to 7 years Vehicles 5 to15 years Machinery and Equipment 7 to 15 years |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | December 31, June 30, 2019 2019 Raw Materials $ 104,934 $ 320,334 Supplies and Packing Materials 273,757 91,110 Work-in-Progress 79,291 85,191 Finished Goods 385,094 360,604 Total $ 843,076 $ 857,239 |
Construction in Progress (Table
Construction in Progress (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Construction in Progress [Abstract] | |
Schedule of construction in progress | December 31, June 30, 2019 2019 Plant - HLJ Huimeijia $ 517,201 $ 806,612 Factory Maintenance - Humankind - 28,840 Total $ 517,201 $ 835,452 |
Property, Plants and Equipment
Property, Plants and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | December 31, June 30, 2019 2019 Building, Warehouses and Improvements $ 3,797,881 $ 3,474,056 Machinery and Equipment 1,754,873 1,876,174 Office Equipment 75,392 76,435 Vehicles 209,558 212,456 Others 926,204 910,178 Less: Accumulated Depreciation (2,840,129 ) (2,829,875 ) Total $ 3,923,779 $ 3,719,424 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, 2019 June 30, 2019 Land Use Rights – Humankind $ 910,394 $ 922,990 Health Supplement Product Patents – Humankind 4,309,231 4,368,847 Pharmaceutical Patents - HLJ Huimeijia 375,502 380,697 Land Use Rights - HLJ Huimeijia 622,696 631,311 Less: Accumulated Amortization (3,703,895 ) (3,520,976 ) Total $ 2,513,928 $ 2,782,869 |
Related Party Debts (Tables)
Related Party Debts (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party debts | December 31, 2019 June 30, 2019 Mr. Xin Sun $ 7,175,486 $ 6,928,467 Mr. Kai Sun 33,589 34,053 Total $ 7,209,075 $ 6,962,520 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | For the Three Months Ended For the Six Months Ended December 31, December 31, 2019 2018 2019 2018 Current provision: USA $ - $ - $ - $ - China 555,896 402,041 868,403 709,710 Total current provision 555,896 402,041 868,403 709,710 Deferred provision: - - - - USA - - - - China - - - - Total deferred provision - - - - Total $ 555,896 $ 402,041 $ 868,403 $ 709,710 |
Schedule of components of deferred tax assets | December 31, June 30, 2018 2019 Deferred tax assets Net operating loss carry forward $ 968,614 $ 869,502 Allowances for doubtful accounts 8,634 17,928 Valuation allowance (975,042 ) (885,195 ) Total $ 2,206 $ 2,235 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of of basic and diluted net income per share | For the Three Months For the Six Months December 31, December 31, 2019 2018 2019 2018 Net income/(loss) attributable to China Health Industries Holdings $ 1,426,584 $ 1,117,265 $ 2,183,158 $ 1,749,481 Net income/(loss) per share: Basic & diluted $ 0.0218 $ 0.0170 $ 0.0333 0.0267 Weighted average shares outstanding: Basic & diluted 65,539,737 65,539,737 65,539,737 65,539,737 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of information by segment | For the Three Months Ended For the Three Months Ended HLJ HLJ Huimeijia Humankind Others Consolidated Huimeijia Humankind Others Consolidated Revenues $ 8,894 $ 3,413,094 $ - $ 3,421,988 $ 29,272 $ 2,684,885 $ - $ 2,714,157 Cost of revenues (4,528 ) (681,982 ) - (686,510 ) (34,919 ) (653,157 ) - (688,076 ) Gross profit 4,366 2,731,112 - 2,735,478 (5,647 ) 2,031,728 - 2,026,081 Interest expense - - - - - - (1 ) (1 ) Depreciation and amortization (21,451 ) (129,301 ) - (150,752 ) (11,823 ) (130,935 ) - (142,758 ) Income tax - (555,896 ) - (555,896 ) (402,041 ) (402,041 ) Net income (loss) (163,903 ) 1,667,687 (77,200 ) 1,426,584 (77,027 ) 1,206,114 (11,822 ) 1,117,265 Total capital expenditures (1 ) (22,435 ) (22,434 ) (72,974 ) (20,719 ) - (93,963 ) Total assets $ 3,530,191 $ 45,384,617 $ (931,560 ) $ 47,983,248 $ 3,610,890 $ 40,480,428 $ (24 ) $ 44,091,294 For the Six Months Ended For the Six Months Ended HLJ HLJ Huimeijia Humankind Others Consolidated Huimeijia Humankind Others Consolidated Revenues $ 35,829 $ 5,440,083 $ - $ 5,475,912 $ 45,589 $ 4,810,393 $ - $ 4,855,982 Cost of revenues (39,536 ) (1,155,870 ) - (1,195,406 ) (55,384 ) (1,106,433 ) - (1,161,817 ) Gross profit (3,707 ) 4,284,213 - 4,280,506 (9,795 ) 3,703,960 - 3,694,165 Interest expense - - (3 ) (3 ) - - (3 ) (3 ) Depreciation and amortization (30,772 ) (259,144 ) - (289,916 ) 18,828 265,452 - 284,280 Income tax (868,403 ) - (868,403 ) 709,710 - 709,710 Net income (loss) (262,198 ) 2,605,207 (159,851 ) 2,183,158 (230,972 ) 2,130,480 (150,027 ) 1,749,481 ) Total capital expenditures (572 ) (130,964 ) - (131,536 ) 45,589 4,810,393 - 4,855,982 Total assets $ 3,530,191 $ 45,384,617 $ (931,560 ) $ 47,983,248 $ 55,384 1,106,433 - 1,161,817 |
Organization and Business Bac_2
Organization and Business Background (Details) | Oct. 12, 2016USD ($) | Oct. 12, 2016CNY (¥) | Nov. 22, 2013USD ($) | Nov. 22, 2013CNY (¥) | Dec. 31, 2008shares | Aug. 20, 2007USD ($) | Dec. 31, 2019shares | Jun. 30, 2019shares | Dec. 24, 2014 | Apr. 07, 2009Individualsshares | Oct. 14, 2008 |
Organization and Operations (Textual) | |||||||||||
Common stock, shares outstanding | 65,539,737 | 65,539,737 | |||||||||
Harbin Huimeijia Medicines Company [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Majority ownership, percent | 1.00% | ||||||||||
Supplementary Agreement [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Equity interests, percentage | 100.00% | 100.00% | |||||||||
Total cash consideration | $ | $ 1,306,186 | ||||||||||
Purchase price, description | 40% of the Purchase Price is due within 10 business days after the completion of the changes in business registration described in the Original Agreement and Xiuzheng Pharmacy obtaining documents evidencing its ownership of Huimeijia; 15% of the Purchase Price is due within 10 business days after the transfer of all of the Assets is approved by the Heilongjiang FDA; and 5% of the Purchase Price is due within 10 business days after all of the Assets have been transferred to Xiuzheng Pharmacy, or its designee, and Humankind and Mr. Xin Sun have instructed Xiuzheng Pharmacy to complete the three-batches production of all forms of the drugs included in the Assets. | 40% of the Purchase Price is due within 10 business days after the completion of the changes in business registration described in the Original Agreement and Xiuzheng Pharmacy obtaining documents evidencing its ownership of Huimeijia; 15% of the Purchase Price is due within 10 business days after the transfer of all of the Assets is approved by the Heilongjiang FDA; and 5% of the Purchase Price is due within 10 business days after all of the Assets have been transferred to Xiuzheng Pharmacy, or its designee, and Humankind and Mr. Xin Sun have instructed Xiuzheng Pharmacy to complete the three-batches production of all forms of the drugs included in the Assets. | |||||||||
Percentage of purchase price paid | 80.00% | 80.00% | |||||||||
New Supplementary Agreement [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Purchase price, description | Pursuant to the October 2016Supplementary Agreement, 40% of the Purchase Price is due within 10 business days after the signing of such agreement | Pursuant to the October 2016Supplementary Agreement, 40% of the Purchase Price is due within 10 business days after the signing of such agreement | |||||||||
Mr. Xin Sun [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Ownership percent | 1.00% | ||||||||||
RMB [Member] | Supplementary Agreement [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Total cash consideration | ¥ | ¥ 8,000,000 | ||||||||||
Harbin Humankind Biology Technology Co., Limited [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Ownership percent | 100.00% | 99.00% | |||||||||
Total purchase price | $ | $ 60,408 | ||||||||||
Harbin Huimeijia Medicine Company [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Ownership percent | 99.00% | ||||||||||
Heilongjiang Huimeijia Pharmaceutical Co., Ltd. [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Total purchase price | $ | $ 16,339,869 | ||||||||||
Heilongjiang Huimeijia Pharmaceutical Co., Ltd. [Member] | RMB [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Total purchase price | ¥ | ¥ 100,000,000 | ||||||||||
China Health Industries Holdings Limited [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Transaction and subsequent reverse stock split | 20:1 | ||||||||||
China Health Industries Holdings Limited [Member] | Mr. Xin Sun [Member] | |||||||||||
Organization and Operations (Textual) | |||||||||||
Number of shares held | 61,203,088 | 33,003,088 | |||||||||
Percentage of shares held | 98.30% | 53.03% | |||||||||
Common stock, shares outstanding | 62,234,737 | ||||||||||
Number of shares transferred | 28,200,000 | ||||||||||
Number of individuals | Individuals | 296 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) | 6 Months Ended |
Dec. 31, 2019 | |
Buildings, Warehouses and Improvements [Member] | Minimum [Member] | |
Estimated useful life | 20 years |
Buildings, Warehouses and Improvements [Member] | Maximum [Member] | |
Estimated useful life | 30 years |
Office Equipment [Member] | Minimum [Member] | |
Estimated useful life | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Estimated useful life | 7 years |
Vehicles [Member] | Minimum [Member] | |
Estimated useful life | 5 years |
Vehicles [Member] | Maximum [Member] | |
Estimated useful life | 15 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Estimated useful life | 7 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Estimated useful life | 15 years |
Significant Accounting Polici_5
Significant Accounting Policies (Details Textual) | 6 Months Ended | ||
Dec. 31, 2019USD ($)Segments | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | |
Significant Accounting Policies (Textual) | |||
Uninsured bank balances | $ 36,675,831 | $ 35,507,535 | |
Accounts receivable | 3,257,259 | 1,987,505 | |
Allowance | 34,534 | 71,713 | |
Advances to suppliers | 221,863 | 8,619 | |
Inventory allowance | |||
Percentage of enterprises tax rate | 25.00% | ||
VAT payables | $ 163,770 | $ 120,114 | |
Sales related taxes | $ 30,516 | $ 28,688 | |
Income tax services rate percentage | 16.00% | ||
Number of reportable operating segments | Segments | 3 | ||
Advances to suppliers, description | The increase by $213,244 was mainly attributable to a new equipment Humankind bought which was still in transit as of December 31, 2019. | ||
Maximum [Member] | |||
Significant Accounting Policies (Textual) | |||
Value added tax rate percentage | 16.00% | ||
Taxes on maintaining and building | 7.00% | ||
Minimum [Member] | |||
Significant Accounting Policies (Textual) | |||
Value added tax rate percentage | 13.00% | ||
Taxes on maintaining and building | 5.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Accounts Receivable (Textual) | ||
Accounts receivable | $ 3,257,259 | $ 1,987,505 |
Net of allowances for doubtful accounts | $ 34,534 | $ 71,713 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 104,934 | $ 320,334 |
Supplies and Packing Materials | 273,757 | 91,110 |
Work-in-Progress | 79,291 | 85,191 |
Finished Goods | 385,094 | 360,604 |
Total | $ 843,076 | $ 857,239 |
Inventory (Details Textual)
Inventory (Details Textual) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Inventory (Textual) | ||
Inventory allowance |
Construction in Progress (Detai
Construction in Progress (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Total | $ 517,201 | $ 835,452 |
Plant - HLJ Huimeijia [Member] | ||
Total | 517,201 | 806,612 |
Factory Maintenance - Humankind [Member] | ||
Total | $ 28,840 |
Construction in Progress (Det_2
Construction in Progress (Details Textual) | Dec. 31, 2019USD ($) |
Construction in Progress (Textual) | |
Estimated total cost of construction | $ 1,860,000 |
Construction in progress, percentage | 77.00% |
Cost of construction in progress | $ 517,201 |
Construction in progress amount | 892,213 |
RMB [Member] | |
Construction in Progress (Textual) | |
Estimated total cost of construction | 12,800,000 |
Cost of construction in progress | 3,600,649 |
Construction in progress amount | $ 6,211,409 |
Property, Plants and Equipmen_2
Property, Plants and Equipment (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Less: Accumulated Depreciation | $ (2,840,129) | $ (2,829,875) |
Property, plants and equipment, net | 3,923,779 | 3,719,424 |
Building, Warehouses and Improvements [Member] | ||
Property, plants and equipment, Gross | 3,797,881 | 3,474,056 |
Machinery and Equipment [Member] | ||
Property, plants and equipment, Gross | 1,754,873 | 1,876,174 |
Office Equipment [Member] | ||
Property, plants and equipment, Gross | 75,392 | 76,435 |
Vehicles [Member] | ||
Property, plants and equipment, Gross | 209,558 | 212,456 |
Others [Member] | ||
Property, plants and equipment, Gross | $ 926,204 | $ 910,178 |
Property, Plants and Equipmen_3
Property, Plants and Equipment (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plants and Equipment (Textual) | ||
Depreciation expense | $ 160,788 | $ 154,199 |
Depreciation expense charged to operations | 61,057 | 49,903 |
Depreciation expense charged to cost of goods sold | $ 99,731 | $ 104,296 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: Accumulated Amortization | $ (3,703,895) | $ (3,520,976) |
Total | 2,513,928 | 2,782,869 |
Land Use Rights [Member] | Humankind [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, gross | 910,394 | 922,990 |
Land Use Rights [Member] | HLJ Huimeijia [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, gross | 622,696 | 631,311 |
Health Supplement Product Patents [Member] | Humankind [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, gross | 4,309,231 | 4,368,847 |
Pharmaceutical Patents [Member] | HLJ Huimeijia [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, gross | $ 375,502 | $ 380,697 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets (Textual) | ||
Amortization expense | $ 228,859 | $ 234,377 |
Commercial Purposes [Member] | ||
Intangible Assets (Textual) | ||
Finite-Lived Intangible Asset, Useful Life | 50 years | |
Residential Purpose [Member] | ||
Intangible Assets (Textual) | ||
Finite-Lived Intangible Asset, Useful Life | 70 years |
Related Party Debts (Details)
Related Party Debts (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Related Party Debts (Textual) | ||
Total | $ 7,209,075 | $ 6,962,520 |
Mr. Xin Sun [Member] | ||
Related Party Debts (Textual) | ||
Total | 7,175,486 | 6,928,467 |
Mr. Kai Sun [Member] | ||
Related Party Debts (Textual) | ||
Total | $ 33,589 | $ 34,053 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current provision: | ||||
USA | ||||
China | 555,896 | 402,041 | 868,403 | 709,710 |
Total current provision | 555,896 | 402,041 | 868,403 | 709,710 |
Deferred provision: | ||||
USA | ||||
China | ||||
Total deferred provision | ||||
Total provision for income taxes | $ 555,896 | $ 402,041 | $ 868,403 | $ 709,710 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Deferred tax assets: | ||
Net operating loss carry forward | $ 968,614 | $ 869,502 |
Allowances for doubtful accounts | 8,634 | 17,928 |
Valuation allowance | (975,042) | (885,195) |
Total | $ 2,206 | $ 2,235 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 6 Months Ended |
Dec. 31, 2019USD ($) | |
Income Taxes (Textual) | |
Percentage of valuation allowance on deferred tax assets | 100.00% |
Valuation allowance on deferred tax asset to reduce asset | $ 0 |
Effective income tax rate | 25.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income/(loss) attributable to China Health Industries Holdings | $ 1,426,584 | $ 1,117,267 | $ 2,183,158 | $ 1,749,481 |
Net income/(loss) per share: | ||||
Basic & diluted | $ 0.0218 | $ 0.0170 | $ 0.0333 | $ 0.0267 |
Weighted average shares outstanding: | ||||
Basic & diluted | 65,539,737 | 65,539,737 | 65,539,737 | 65,539,737 |
Major Suppliers and Customers (
Major Suppliers and Customers (Details) | 6 Months Ended | |
Dec. 31, 2019SuppliersCustomers | Dec. 31, 2018SuppliersCustomers | |
Purchases [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 75.00% | 76.00% |
Number of suppliers | Suppliers | 3 | 3 |
Purchases [Member] | Supplier One [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 35.00% | 46.00% |
Purchases [Member] | Supplier Two [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 20.00% | 16.00% |
Purchases [Member] | Supplier Three [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 20.00% | 14.00% |
Total Sales [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 81.00% | 84.00% |
Number of customers | Customers | 6 | 6 |
Total Sales [Member] | Customer One [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 20.00% | 21.00% |
Total Sales [Member] | Customer Two [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 16.00% | 17.00% |
Total Sales [Member] | Customer Three [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 15.00% | 15.00% |
Total Sales [Member] | Customer Four [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 11.00% | 12.00% |
Total Sales [Member] | Customer Five [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 11.00% | 11.00% |
Total Sales [Member] | Customer Six [Member] | ||
Major Suppliers and Customers (Textual) | ||
Concentration risk, percentage | 8.00% | 8.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 3,421,988 | $ 2,714,157 | $ 5,475,912 | $ 4,855,982 |
Gross profit | 2,735,478 | 2,026,081 | 4,280,506 | 3,694,165 |
Interest expense | (1) | (1) | (3) | |
Depreciation and amortization | 389,647 | 388,576 | ||
Income tax | 555,896 | 402,041 | 868,403 | 709,710 |
Total capital expenditures | 24,713 | 112,055 | ||
HLJ Huimeijia [Member] | ||||
Revenues | 8,894 | 29,272 | 35,829 | 45,589 |
Cost of revenues | (4,528) | (34,919) | (39,536) | (55,384) |
Gross profit | 4,366 | (5,647) | (3,707) | (9,795) |
Interest expense | ||||
Depreciation and amortization | (21,451) | (11,823) | (30,772) | 18,828 |
Income tax | ||||
Net income (loss) | (163,903) | (77,027) | (262,198) | (230,972) |
Total capital expenditures | (1) | (72,974) | (572) | 45,589 |
Total assets | 3,530,191 | 3,610,890 | 3,530,191 | 55,384 |
Humankind [Member] | ||||
Revenues | 3,413,094 | 2,684,885 | 5,440,083 | 4,810,393 |
Cost of revenues | (681,982) | (653,157) | (1,155,870) | (1,106,433) |
Gross profit | 2,731,112 | 2,031,728 | 4,284,213 | 3,703,960 |
Interest expense | ||||
Depreciation and amortization | (129,301) | (130,935) | (259,144) | 265,452 |
Income tax | (555,896) | (402,041) | (868,403) | 709,710 |
Net income (loss) | 1,667,687 | 1,206,114 | 2,605,207 | 2,130,480 |
Total capital expenditures | (22,435) | (20,719) | (130,964) | 4,810,393 |
Total assets | 45,384,617 | 40,480,428 | 45,384,617 | 1,106,433 |
Others [Member] | ||||
Revenues | ||||
Cost of revenues | ||||
Gross profit | ||||
Interest expense | (1) | (3) | (3) | |
Depreciation and amortization | ||||
Income tax | ||||
Net income (loss) | (77,200) | (11,822) | (159,851) | (150,027) |
Total capital expenditures | ||||
Total assets | (931,560) | (24) | (931,560) | |
Consolidated from continuing operations [Member] | ||||
Revenues | 3,421,988 | 2,714,157 | 5,475,912 | 4,855,982 |
Cost of revenues | (686,510) | (688,076) | (1,195,406) | (1,161,817) |
Gross profit | 2,735,478 | 2,026,081 | 4,280,506 | 3,694,165 |
Interest expense | (1) | (3) | (3) | |
Depreciation and amortization | (150,752) | (142,758) | (289,916) | 284,280 |
Income tax | (555,896) | (402,041) | (868,403) | 709,710 |
Net income (loss) | 1,426,584 | 1,117,265 | 2,183,158 | 1,749,481 |
Total capital expenditures | (22,434) | (93,963) | (131,536) | 4,855,982 |
Total assets | $ 47,983,248 | $ 44,091,294 | $ 47,983,248 | $ 1,161,817 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | Dec. 31, 2019N |
Segment Reporting (Textual) | |
Number of business segments | 3 |