Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 19, 2016 | Mar. 31, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | General Agriculture Corp | ||
Entity Central Index Key | 1,519,894 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 11,170,675 | ||
Trading Symbol | GELT | ||
Entity Common Stock, Shares Outstanding | 15,918,940 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Current Assets: | ||
Cash | $ 621,402 | $ 464,046 |
Inventory | 5,289,608 | 5,469,102 |
Advance payments | 2,717,989 | 4,778,733 |
Prepaid leases | 5,753,849 | 4,360,899 |
Other current assets | 5,863 | 162,326 |
Total Current Assets | 14,388,711 | 15,235,106 |
Property and equipment, net | 10,810,753 | 12,427,415 |
Other Assets | ||
Intangibles, net | 135,019 | 145,183 |
Prepaid leases, net of current portion | 41,397,448 | 27,143,650 |
Total Other Assets | 41,532,467 | 27,288,833 |
TOTAL ASSETS | 66,731,931 | 54,951,354 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 247,302 | 215,422 |
Due to related parties | 524,686 | 154,571 |
Other current liabilities | 65,559 | 61,759 |
Total Current Liabilities | 837,547 | 431,752 |
Commitments | ||
Stockholders' Equity | ||
Common stock $0.0001 par value, 200,000,000 shares authorized 15,918,940 shares issued and outstanding at September 30, 2016 and 2015, respectively | 1,592 | 1,592 |
Additional paid-in capital | 4,909,572 | 4,909,572 |
Statutory reserves | 2,599,363 | 2,572,619 |
Retained earnings | 60,697,555 | 46,512,259 |
Accumulated other comprehensive income (loss) | (2,313,698) | 523,560 |
Total stockholders' equity | 65,894,384 | 54,519,602 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 66,731,931 | $ 54,951,354 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Sep. 30, 2016 | Sep. 30, 2015 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 15,918,940 | 15,918,940 |
Common stock, shares outstanding | 15,918,940 | 15,918,940 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Sales | $ 27,417,779 | $ 22,463,365 |
Cost of sales | 12,146,821 | 10,013,073 |
Gross profit | 15,270,958 | 12,450,292 |
Operating expenses | ||
Selling expenses | 291,661 | 140,829 |
General and administrative expenses | 734,190 | 1,146,228 |
Total operating expenses | 1,025,851 | 1,287,057 |
Income from operations | 14,245,107 | 11,163,235 |
Other income (expenses): | ||
Interest income | 31,063 | 19,366 |
Interest expense | (67,316) | (239,922) |
Other income, net | 3,186 | 57,944 |
Total other expenses | (33,067) | (162,612) |
Income before provision for income taxes | 14,212,040 | 11,000,623 |
Provision for income taxes | 0 | 0 |
Net income | 14,212,040 | 11,000,623 |
Other comprehensive loss | ||
Foreign currency translation adjustment | (2,837,258) | (1,872,132) |
Total comprehensive income | $ 11,374,782 | $ 9,128,491 |
Earnings per share: | ||
Basic and diluted | $ 0.89 | $ 0.69 |
Weighted average number of common stock outstanding | ||
Basic and diluted | 15,918,940 | 15,918,940 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Sep. 30, 2014 | $ 45,391,111 | $ 1,592 | $ 4,909,572 | $ 2,539,170 | $ 35,545,085 | $ 2,395,692 |
Balance (in shares) at Sep. 30, 2014 | 15,918,940 | |||||
Comprehensive income: | ||||||
Net income | 11,000,623 | $ 0 | 0 | 0 | 11,000,623 | 0 |
Foreign currency translation loss | (1,872,132) | 0 | 0 | 0 | 0 | (1,872,132) |
Statutory reserve | 0 | 0 | 0 | 33,449 | (33,449) | 0 |
Balance at Sep. 30, 2015 | 54,519,602 | $ 1,592 | 4,909,572 | 2,572,619 | 46,512,259 | 523,560 |
Balance (in shares) at Sep. 30, 2015 | 15,918,940 | |||||
Comprehensive income: | ||||||
Net income | 14,212,040 | $ 0 | 0 | 0 | 14,212,040 | 0 |
Foreign currency translation loss | (2,837,258) | 0 | 0 | 0 | 0 | (2,837,258) |
Statutory reserve | 0 | 0 | 0 | 26,744 | (26,744) | 0 |
Balance at Sep. 30, 2016 | $ 65,894,384 | $ 1,592 | $ 4,909,572 | $ 2,599,363 | $ 60,697,555 | $ (2,313,698) |
Balance (in shares) at Sep. 30, 2016 | 15,918,940 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net Income | $ 14,212,040 | $ 11,000,623 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Amortization of prepaid leases | 4,247,716 | 3,383,507 |
Depreciation and amortization | 1,071,520 | 1,171,590 |
Loss on disposal of property and equipment | 6,643 | 75,225 |
Provision for bad debts | 0 | 22,395 |
Changes in current assets and current liabilities: | ||
Accounts receivable | 0 | (22,395) |
Inventory | (75,357) | (697,879) |
Advance payments | 1,878,700 | (2,743,469) |
Prepaid leases | (21,719,306) | (8,782,228) |
Other current assets | 152,126 | (155,930) |
Accounts payable and accrued expenses | 37,958 | (56,892) |
Other current liabilities | 6,830 | 1,950 |
Net cash provided by (used in) operating activities | (181,130) | 3,196,495 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (11,284) | (22,475) |
Net cash used in investing activities | (11,284) | (22,475) |
Cash flows from financing activities: | ||
Repayment from short-term bank loans | 0 | (4,541,600) |
Proceeds from (Repayment to) related parties, net | 374,119 | (1,426,518) |
Net cash provided by (used in) financing activities | 374,119 | (5,968,118) |
Effect of exchange rate changes on cash | (24,349) | (93,901) |
Net increase (decrease) in cash | 157,356 | (2,887,999) |
Cash - beginning of year | 464,046 | 3,352,045 |
Cash - ending of year | 621,402 | 464,046 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 67,316 | $ 239,922 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 ORGANIZATION AND NATURE OF BUSINESS General Agriculture Corporation (“GELT”), formerly Geltology Inc., was established under the laws of the State of Delaware on March 24, 2010. On July 12, 2013, GELT filed with the Secretary of State of Delaware a Certificate of Amendment to change its name to General Agriculture Corporation. Through a series of reorganizations, GELT currently owns 100 100 On January 13, 2010, Greater China International formed Nanchang Hanxin Agriculture Technology Co., Ltd, a wholly foreign-owned enterprise (the “WFOE”) in the city of Nanchang, Jiangxi Province, the People’s Republic of China (“PRC”). On February 5, 2010, the WFOE acquired all the shares of Xingguo General Fruit Industry Development Co., Ltd (“General Fruit”) through essentially a capital recapitalization transaction. General Fruit was formed in Xingguo County, Jiangxi Province, under the corporate laws of PRC on March 5, 2003. The primary business of General Fruit is to grow and sell navel oranges. General Fruit owns 100 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the accounts of GELT and its wholly owned subsidiaries (collectively referred to as the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s operations are seasonal based on the maturity stage of its products. Sales are concentrated during the months from October through March, corresponding to the Company’s product maturity cycle which begins in the month of October when the products mature and are ready for sale. The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). Greater China International’s functional currency is Hong Kong Dollar (“HKD”) and Nanchang Hanxin Agriculture Technology Co., Ltd, General Fruit and General Preservation’s functional currency is Chinese Yuan Renminbi (“RMB”). All assets and liabilities were translated at the current exchange rate, at respective balance sheets dates, stockholders’ equity is translated at the historical rates and income statement items are translated at the average exchange rate for the reporting periods. The resulting translation adjustments are reported as other comprehensive income (loss) and accumulated other comprehensive income in stockholders’ equity in accordance with the Codification ASC 220, Comprehensive Income. The significant foreign translation losses reported is a result of the sharp depreciation of the RMB to USD during the year. Cash flows from the Company’s operations included in the statement of cash flows are calculated based upon the functional currency using the average translation rate. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with arithmetical changes in the corresponding balances on the consolidated balance sheets. Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. There were no material transaction gains or losses in the periods presented. September 30, 2016 2015 Year end RMB:USD exchange rate 0.1499 0.1572 Average Yearly RMB:USD exchange rate 0.1531 0.1622 Year end HKD:USD exchange rate 0.1290 0.1290 Average Yearly HKD:USD exchange rate 0.1289 0.1290 The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Actual results could differ from these estimates. Significant items subject to such estimates and assumptions include the recoverability of the carrying amounts of recorded assets and liabilities, estimated useful life of property and equipment and inventory obsolescence. Inventory is stated at the lower of cost or market. Cost is determined using the weighted-average cost method. Provisions are made for excess, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable values, if any. Management continually evaluates the recoverability based on assumptions about customer demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Company’s gross margin and operating results. As of September 30, 2016 and 2015, no provisions were deemed necessary. Estimated Useful Life Electronic equipment5 years Vehicles10 years Machinery and equipment5 to 15 years Buildings and improvements5 to 20 years Navel orange orchards11 to 30 years Construction in progress primarily represents the construction costs of buildings, machinery, equipment and agricultural improvements made to orchards. Costs incurred are capitalized and transferred to property and equipment upon completion, at which time depreciation commences. Navel orange orchards consist of orchards the Company planted and acquired from local farmers and include costs related to land leveling, saplings, fertilizer, labor and facilities on orchard lands. The planting costs were capitalized. From year of 2008 to 2016, the Company directly acquired certain navel orange trees from local farmers, which were also capitalized. Cost of repairs and maintenance is expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the statements of income and comprehensive income. Long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. As of September 30, 2016 and 2015, there was no impairment of long-lived assets. Intangible assets consist of mainly land use rights, which are amortized using the straight-line method over their estimated useful life of 50 The Company derives its revenue primarily from sale of navel oranges. Revenue is recognized in accordance with the provisions of ASC Topic 605, which provides that revenue is recognized when products are shipped, title and risk of loss is passed to the customers and collection is reasonably assured. Payments received before the above criteria are satisfied are recorded as advances from customers. The Company applies the provisions of FASB ASC 740-10, Accounting For Uncertainty In Income Taxes All of the Company’s income is generated in the PRC, and accordingly, its income tax provision is calculated based on the applicable tax rates and existing legislation, interpretation and practices in respect thereof. The Company is subject to a value added tax (“VAT”) of 13 17 Comprehensive income is defined as the change in equity of a company from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the Company, comprehensive income includes net income and foreign currency translation adjustments. The Company expenses all advertising expenses as incurred. Advertising expenses included in selling expenses were $ 961 66,598 All shipping and handling costs are expensed as incurred and included in selling expenses. The Company sells primarily to large distributors. Most of the shipping and handling costs are typically borne by customers. Total shipping and handling expenses incurred by the Company were only $ 0 21,653 Pursuant to the applicable laws in the PRC, the Company makes appropriations to two non-distributable reserve funds, the statutory surplus reserve and the statutory public welfare reserve. The appropriations are based on after-tax net earnings as determined in accordance with the PRC generally accepted accounting principles, after offsetting any prior years’ losses. Appropriation to the statutory surplus reserve is based on an amount at least equal to 10% of after-tax net earnings until the reserve is equal to 50% of the entity's registered capital. Appropriation to the statutory public welfare fund is based on 5% to 10% of after-tax net earnings and is not mandatory. The Company does not make appropriations to the discretionary surplus reserve fund. As of September 30, 2016 and 2015, the Company had appropriated $ 2,599,363 2,572,619 Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease term. Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. As of September 30, 2016 and 2015, the Company’s cash was with banks in the PRC and Hong Kong, where there is currently no rule or regulation mandated on obligatory insurance of bank accounts. For the year ended September 30, 2016, no customer accounted for more than 10 14 12 For the year ended September 30, 2016 and 2015, the outsourced navel oranges accounted for 31 23 100 The Company has categorized its assets and liabilities at fair value based upon the fair value hierarchy specified by FASB ASC 820. The levels of fair value hierarchy are as follows: i. Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. ii. Level 2 inputs utilize other-than-quoted prices that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs such as interest rates and yield curves that are observable at commonly quoted intervals. iii. Level 3 inputs are unobservable and are typically based on our own assumptions, including situations where there is little, if any, market activity. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. As of September 30, 2016 and 2015, the carrying amounts of financial assets and liabilities, such as cash, advance payments, accounts payable, due to related parties and other payables approximate their fair values because of the short-term maturities of these instruments. The Company reports earnings per share in accordance with the provisions of ASC 260.10, "Earnings Per Share”. ASC 260.10 requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock using the treasury method. As of September 30, 2016 and 2015, there are no potentially dilutive securities outstanding. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers." The purpose of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The amendments in ASU 2014-09 require a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 (fiscal year 2018 for the Company) and early adoption is not permitted. Subsequently, in August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date," that moves the effective date out one year (fiscal 2019 for the Company). Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company has not yet determined the potential effects of the adoption of ASU 2014-09 and ASU 2015-14 on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be presented as noncurrent on the balance sheet. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2015 (fiscal year 2017 for the Company). The Company early adopted this guidance, prospectively, as of November 30, 2015, and, accordingly, prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarity the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In May 2016, FASB issued ASU No. 2016-12Revenue from Contracts with Customers (Topic 606); Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is assessing the impact of the adoption of the ASU on its consolidated financial statements, disclosure requirements and methods of adoption. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
INVENTORY
INVENTORY | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3 Inventory September 30, 2016 September 30, 2015 Raw materials $ 24,218 $ 49,405 Work in process 5,265,390 5,419,697 Total $ 5,289,608 $ 5,469,102 Work in process consists of depreciation, amortization of prepaid leases of navel orange orchards, rental, salary, fertilizer, utility, and labor spent in cultivating and producing navel oranges. Work in process is reclassified to finished goods after the navel oranges are harvested. The harvest season of navel oranges usually starts in October. |
ADVANCE PAYMENTS
ADVANCE PAYMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Advance Payments [Abstract] | |
Advance Payments Disclosure [Text Block] | Note 4 ADVANCE PAYMENTS Advance payments represent payments made to suppliers for goods and materials that have not been received. Advance payments are also reviewed periodically by the Company to determine whether their carrying value has become impaired. Historically, the Company has not experienced any losses as a result of these advances. As of September 30, 2016 and 2015, the Company had $ 2,717,989 4,778,733 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 5 Property and Equipment September 30, 2016 September 30, 2015 Office equipment $ 144,846 $ 141,513 Vehicles 191,472 239,374 Machinery and equipment 1,971,452 2,065,967 Buildings and improvements 7,188,772 7,537,854 Navel orange orchards 9,970,446 10,454,603 Subtotal 19,466,989 20,439,311 Less: Accumulated depreciation 8,656,236 8,011,896 Total $ 10,810,753 $ 12,427,415 Depreciation expense was $ 1,068,006 1,167,868 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 6 Intangible Assets September 30, 2016 September 30, 2015 Land use rights $ 171,999 $ 180,351 Less: Accumulated amortization 36,980 35,168 Total $ 135,019 $ 145,183 Amortization expense was $ 3,514 3,722 |
PREPAID LEASES
PREPAID LEASES | 12 Months Ended |
Sep. 30, 2016 | |
Leases, Operating [Abstract] | |
Prepaid Leases [Text Block] | Note 7 Prepaid Leases In order to secure long-term supplies and to control resources, starting in early 2011, General Fruit has been trying to locate suitable naval orange orchards in the region and entering into various long-term lease contracts with owners of those orchards, with a typical lease term of 10 Prior to the fiscal year ended September 30, 2015, the Company has entered into a total of six lease contracts with various individual and cooperative owners, with an aggregate lease amount of RMB 277,410,900 45,299,243 In August and September, 2016, General Fruit entered into additional lease contracts with five individual orchard owners. Pursuant to the contracts, General Fruit was authorized to operate the orchards for 10 December 31, 2026 141,845,000 21,265,402 As of September 30, 2016, the Company leased a total of 1,077,098 419,255,900 66,564,645 These leases are accounted for as operating leases in accordance with ASC 840-20 and the aggregate lease amounts will be expensed each year on a straight-line basis over the lease terms. The net prepaid lease amount as of September 30, 2016 is $ 47,151,297 41,397,448 4,247,716 3,383,507 Twelve months ended September 30: 2017 $ 5,876,664 2018 6,419,646 2019 6,419,646 2020 6,419,646 2021 4,910,594 Thereafter 17,105,101 $ 47,151,297 |
DUE TO RELATED PARTY
DUE TO RELATED PARTY | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 8 Due to Related Party As of September 30, 2016 and 2015, the Company owed Hua Mei Investments Limited (“Hua Mei”), a related party (controlled by Mr. HouXingping, CEO of the Company), $ 524,686 154,571 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 9 Income Taxes GELT and its U.S. subsidiary, GRH, (collectively referred to as the “US entities”) are each subject to US tax and file US federal income tax returns. The US entities are Delaware corporations and conduct all of their businesses through their Chinese subsidiaries. No provision for US federal income taxes were made for the years ended September 30, 2016 and 2015 as the US entities incurred losses. GELT’s offshore subsidiary, Han Glory, is not subject to tax on income or capital gains under the laws of the British Virgin Islands. Another offshore subsidiary, Greater China International, did not earn any income that was derived in Hong Kong for the years ended September 30, 2016 and 2015, and therefore was not subject to Hong Kong Profit tax. Under the Corporate Income Tax Law of the PRC, the corporate income tax rate is 25 The GELT Company had net operating losses (“NOL”) amounting to approximately $ 395,000 711,000 As of September 30, 2016, the Company had net operating loss carryforwards of approximately $2.6 million that expire between 2018 and 2036. 100% September 30, 2016 September 30, 2015 Beginning balance $ 2,208,759 $ 1,497,945 Addition: Net operating loss 395,256 710,814 Total - Net operating loss carryforwards 2,604,015 2,208,759 Effective tax rate 35 % 35 % Deferred tax asset 911,405 773,066 Valuation allowance (911,405) (773,066) Ending balance - - For the Years Ended September 30, 2016 2015 U.S. Statutory rate 35 % 35 % Foreign income not recognized in the U.S. -35 % -35 % PRC statutory income tax rate 25 % 25 % Tax exemption -25 % -25 % Effective income tax rate - - |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the accounts of GELT and its wholly owned subsidiaries (collectively referred to as the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Seasonal Nature Of Operations [Policy Text Block] | Seasonal Nature of Operations The Company’s operations are seasonal based on the maturity stage of its products. Sales are concentrated during the months from October through March, corresponding to the Company’s product maturity cycle which begins in the month of October when the products mature and are ready for sale. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). Greater China International’s functional currency is Hong Kong Dollar (“HKD”) and Nanchang Hanxin Agriculture Technology Co., Ltd, General Fruit and General Preservation’s functional currency is Chinese Yuan Renminbi (“RMB”). All assets and liabilities were translated at the current exchange rate, at respective balance sheets dates, stockholders’ equity is translated at the historical rates and income statement items are translated at the average exchange rate for the reporting periods. The resulting translation adjustments are reported as other comprehensive income (loss) and accumulated other comprehensive income in stockholders’ equity in accordance with the Codification ASC 220, Comprehensive Income. The significant foreign translation losses reported is a result of the sharp depreciation of the RMB to USD during the year. Cash flows from the Company’s operations included in the statement of cash flows are calculated based upon the functional currency using the average translation rate. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with arithmetical changes in the corresponding balances on the consolidated balance sheets. Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. There were no material transaction gains or losses in the periods presented. September 30, 2016 2015 Year end RMB:USD exchange rate 0.1499 0.1572 Average Yearly RMB:USD exchange rate 0.1531 0.1622 Year end HKD:USD exchange rate 0.1290 0.1290 Average Yearly HKD:USD exchange rate 0.1289 0.1290 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods presented. Actual results could differ from these estimates. Significant items subject to such estimates and assumptions include the recoverability of the carrying amounts of recorded assets and liabilities, estimated useful life of property and equipment and inventory obsolescence. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is stated at the lower of cost or market. Cost is determined using the weighted-average cost method. Provisions are made for excess, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable values, if any. Management continually evaluates the recoverability based on assumptions about customer demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Company’s gross margin and operating results. As of September 30, 2016 and 2015, no provisions were deemed necessary. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Estimated Useful Life Electronic equipment5 years Vehicles10 years Machinery and equipment5 to 15 years Buildings and improvements5 to 20 years Navel orange orchards11 to 30 years Construction in progress primarily represents the construction costs of buildings, machinery, equipment and agricultural improvements made to orchards. Costs incurred are capitalized and transferred to property and equipment upon completion, at which time depreciation commences. Navel orange orchards consist of orchards the Company planted and acquired from local farmers and include costs related to land leveling, saplings, fertilizer, labor and facilities on orchard lands. The planting costs were capitalized. From year of 2008 to 2016, the Company directly acquired certain navel orange trees from local farmers, which were also capitalized. Cost of repairs and maintenance is expensed as incurred. Gain or loss on disposal of property and equipment, if any, is recognized in the statements of income and comprehensive income. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. As of September 30, 2016 and 2015, there was no impairment of long-lived assets. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets consist of mainly land use rights, which are amortized using the straight-line method over their estimated useful life of 50 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company derives its revenue primarily from sale of navel oranges. Revenue is recognized in accordance with the provisions of ASC Topic 605, which provides that revenue is recognized when products are shipped, title and risk of loss is passed to the customers and collection is reasonably assured. Payments received before the above criteria are satisfied are recorded as advances from customers. |
Income Tax, Policy [Policy Text Block] | Income Tax The Company applies the provisions of FASB ASC 740-10, Accounting For Uncertainty In Income Taxes All of the Company’s income is generated in the PRC, and accordingly, its income tax provision is calculated based on the applicable tax rates and existing legislation, interpretation and practices in respect thereof. |
Value Added Taxes [Policy Text Block] | Value-added-tax The Company is subject to a value added tax (“VAT”) of 13 17 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income is defined as the change in equity of a company from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. For the Company, comprehensive income includes net income and foreign currency translation adjustments. |
Advertising Costs, Policy [Policy Text Block] | Advertising Expense The Company expenses all advertising expenses as incurred. Advertising expenses included in selling expenses were $ 961 66,598 |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling All shipping and handling costs are expensed as incurred and included in selling expenses. The Company sells primarily to large distributors. Most of the shipping and handling costs are typically borne by customers. Total shipping and handling expenses incurred by the Company were only $ 0 21,653 |
Statutory Reserve Policy [Policy Text Block] | Statutory Reserves Pursuant to the applicable laws in the PRC, the Company makes appropriations to two non-distributable reserve funds, the statutory surplus reserve and the statutory public welfare reserve. The appropriations are based on after-tax net earnings as determined in accordance with the PRC generally accepted accounting principles, after offsetting any prior years’ losses. Appropriation to the statutory surplus reserve is based on an amount at least equal to 10% of after-tax net earnings until the reserve is equal to 50% of the entity's registered capital. Appropriation to the statutory public welfare fund is based on 5% to 10% of after-tax net earnings and is not mandatory. The Company does not make appropriations to the discretionary surplus reserve fund. As of September 30, 2016 and 2015, the Company had appropriated $ 2,599,363 2,572,619 |
Revenue Recognition Leases, Operating [Policy Text Block] | Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of income on a straight-line basis over the lease term. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited. As of September 30, 2016 and 2015, the Company’s cash was with banks in the PRC and Hong Kong, where there is currently no rule or regulation mandated on obligatory insurance of bank accounts. For the year ended September 30, 2016, no customer accounted for more than 10 14 12 For the year ended September 30, 2016 and 2015, the outsourced navel oranges accounted for 31 23 100 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value The Company has categorized its assets and liabilities at fair value based upon the fair value hierarchy specified by FASB ASC 820. The levels of fair value hierarchy are as follows: i. Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. ii. Level 2 inputs utilize other-than-quoted prices that are observable, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs such as interest rates and yield curves that are observable at commonly quoted intervals. iii. Level 3 inputs are unobservable and are typically based on our own assumptions, including situations where there is little, if any, market activity. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. As of September 30, 2016 and 2015, the carrying amounts of financial assets and liabilities, such as cash, advance payments, accounts payable, due to related parties and other payables approximate their fair values because of the short-term maturities of these instruments. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per share The Company reports earnings per share in accordance with the provisions of ASC 260.10, "Earnings Per Share”. ASC 260.10 requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock using the treasury method. As of September 30, 2016 and 2015, there are no potentially dilutive securities outstanding. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers." The purpose of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The amendments in ASU 2014-09 require a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 (fiscal year 2018 for the Company) and early adoption is not permitted. Subsequently, in August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date," that moves the effective date out one year (fiscal 2019 for the Company). Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company has not yet determined the potential effects of the adoption of ASU 2014-09 and ASU 2015-14 on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which simplifies the presentation of deferred taxes by requiring that deferred tax assets and liabilities be presented as noncurrent on the balance sheet. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2015 (fiscal year 2017 for the Company). The Company early adopted this guidance, prospectively, as of November 30, 2015, and, accordingly, prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarity the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In May 2016, FASB issued ASU No. 2016-12Revenue from Contracts with Customers (Topic 606); Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is assessing the impact of the adoption of the ASU on its consolidated financial statements, disclosure requirements and methods of adoption. In August 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4)Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; (6) Life Insurance Policies; (7) Distributions Received from Equity Method Investees; (8) Beneficial Interests in Securitization Transactions; and Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block] | The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements were as follows: September 30, 2016 2015 Year end RMB:USD exchange rate 0.1499 0.1572 Average Yearly RMB:USD exchange rate 0.1531 0.1622 Year end HKD:USD exchange rate 0.1290 0.1290 Average Yearly HKD:USD exchange rate 0.1289 0.1290 |
Property, Plant and Equipment, Estimated Useful Lives [Table Text Block] | Estimated Useful Life Electronic equipment5 years Vehicles10 years Machinery and equipment5 to 15 years Buildings and improvements5 to 20 years Navel orange orchards11 to 30 years |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory by major categories are summarized as follows: September 30, 2016 September 30, 2015 Raw materials $ 24,218 $ 49,405 Work in process 5,265,390 5,419,697 Total $ 5,289,608 $ 5,469,102 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consist of the following: September 30, 2016 September 30, 2015 Office equipment $ 144,846 $ 141,513 Vehicles 191,472 239,374 Machinery and equipment 1,971,452 2,065,967 Buildings and improvements 7,188,772 7,537,854 Navel orange orchards 9,970,446 10,454,603 Subtotal 19,466,989 20,439,311 Less: Accumulated depreciation 8,656,236 8,011,896 Total $ 10,810,753 $ 12,427,415 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consist of the following: September 30, 2016 September 30, 2015 Land use rights $ 171,999 $ 180,351 Less: Accumulated amortization 36,980 35,168 Total $ 135,019 $ 145,183 |
PREPAID LEASES (Tables)
PREPAID LEASES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Lease expense attributable to future periods is as follows: Twelve months ended September 30: 2017 $ 5,876,664 2018 6,419,646 2019 6,419,646 2020 6,419,646 2021 4,910,594 Thereafter 17,105,101 $ 47,151,297 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The summary of the deferred income tax asset for US entities is as follows: September 30, 2016 September 30, 2015 Beginning balance $ 2,208,759 $ 1,497,945 Addition: Net operating loss 395,256 710,814 Total - Net operating loss carryforwards 2,604,015 2,208,759 Effective tax rate 35 % 35 % Deferred tax asset 911,405 773,066 Valuation allowance (911,405) (773,066) Ending balance - - |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles the U.S. statutory rates to the Company’s effective tax rate as of the: For the Years Ended September 30, 2016 2015 U.S. Statutory rate 35 % 35 % Foreign income not recognized in the U.S. -35 % -35 % PRC statutory income tax rate 25 % 25 % Tax exemption -25 % -25 % Effective income tax rate - - |
ORGANIZATION AND NATURE OF BU23
ORGANIZATION AND NATURE OF BUSINESS (Details Textual) | Apr. 28, 2011 | Jan. 18, 2011 | Feb. 05, 2010 |
General Red Holdings, Inc. [Member] | Han Glory International Investment Limited [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
General Red Holdings, Inc. [Member] | General Agriculture Corporation [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||
General Red Navel Orange Preservation Company, Ltd [Member] | Xingguo General Fruit Industry Development Co., Ltd [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2016 | Sep. 30, 2015 |
Year end exchange rate [Member] | CNY [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 0.1499 | 0.1572 |
Year end exchange rate [Member] | HKD [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 0.129 | 0.129 |
Average exchange rate [Member] | CNY [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 0.1531 | 0.1622 |
Average exchange rate [Member] | HKD [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 0.1289 | 0.129 |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Sep. 30, 2016 | |
Electronic equipment [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 15 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Buildings and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 20 years |
Buildings and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Navel orange orchards [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 30 years |
Navel orange orchards [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 11 years |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Product Information [Line Items] | ||
Advertising Expense | $ 961 | $ 66,598 |
Shipping, Handling and Transportation Costs | 0 | 21,653 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 2,599,363 | $ 2,572,619 |
Statutory Accounting Practices, Statutory Capital and Surplus, Variations | The appropriations are based on after-tax net earnings as determined in accordance with the PRC generally accepted accounting principles, after offsetting any prior years losses. Appropriation to the statutory surplus reserve is based on an amount at least equal to 10% of after-tax net earnings until the reserve is equal to 50% of the entity's registered capital. Appropriation to the statutory public welfare fund is based on 5% to 10% of after-tax net earnings and is not mandatory. | |
Effective Vat Rate On Product | 13.00% | |
Effective Processing Rate On Product | 17.00% | |
Use Rights [Member] | ||
Product Information [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 50 years | |
Sales Revenue, Net [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 10.00% | |
One Customer [Member] | Sales Revenue, Net [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 14.00% | |
Two Customer [Member] | Sales Revenue, Net [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 12.00% | |
Supplier Concentration Risk [Member] | Navel Oranges [Member] | ||
Product Information [Line Items] | ||
Entity Wide Purchase Major Vendor Percentage | 31.00% | 23.00% |
Supplier Concentration Risk [Member] | Vendors One [Member] | ||
Product Information [Line Items] | ||
Entity Wide Purchase Major Vendor Percentage | 100.00% |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 24,218 | $ 49,405 |
Work in process | 5,265,390 | 5,419,697 |
Total | $ 5,289,608 | $ 5,469,102 |
ADVANCE PAYMENTS (Details Textu
ADVANCE PAYMENTS (Details Textual) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Advance Payments [Line Items] | ||
Advances on Inventory Purchases | $ 2,717,989 | $ 4,778,733 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 19,466,989 | $ 20,439,311 |
Less: Accumulated depreciation | 8,656,236 | 8,011,896 |
Total | 10,810,753 | 12,427,415 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 144,846 | 141,513 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 191,472 | 239,374 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,971,452 | 2,065,967 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 7,188,772 | 7,537,854 |
Navel orange orchards [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 9,970,446 | $ 10,454,603 |
PROPERTY AND EQUIPMENT (Detai30
PROPERTY AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 1,068,006 | $ 1,167,868 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - Rights [Member] - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Land use rights | $ 171,999 | $ 180,351 |
Less: Accumulated amortization | 36,980 | 35,168 |
Total | $ 135,019 | $ 145,183 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 3,514 | $ 3,722 |
PREPAID LEASES (Details)
PREPAID LEASES (Details) | Sep. 30, 2016USD ($) |
Twelve months ended September 30: | |
2,017 | $ 5,876,664 |
2,018 | 6,419,646 |
2,019 | 6,419,646 |
2,020 | 6,419,646 |
2,021 | 4,910,594 |
Thereafter | 17,105,101 |
Operating Leases, Future Minimum Payments Due | $ 47,151,297 |
PREPAID LEASES (Details Textual
PREPAID LEASES (Details Textual) | 12 Months Ended | |||
Sep. 30, 2016USD ($)Trees | Sep. 30, 2015USD ($) | Sep. 30, 2016CNY (¥)Trees | Sep. 30, 2015CNY (¥) | |
Operating Leased Assets [Line Items] | ||||
Lease Term | 10 years | |||
Lease Contract Aggregate Lease Amount | $ 66,564,645 | $ 45,299,243 | ¥ 419,255,900 | ¥ 277,410,900 |
Operating Leases, Rent Expense | 4,247,716 | 3,383,507 | ||
Prepaid Expense, Noncurrent | $ 41,397,448 | $ 27,143,650 | ||
Number Of Matured Navel Lease | Trees | 1,077,098 | 1,077,098 | ||
Operating Leases, Future Minimum Payments Due | $ 47,151,297 | |||
Xingguo General Fruit Industry Development Co., Ltd [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Lease Term | 10 years | |||
Lease Expiration Date | Dec. 31, 2026 | |||
Lease Contract Aggregate Lease Amount | $ 21,265,402 | ¥ 141,845,000 |
DUE TO RELATED PARTY (Details T
DUE TO RELATED PARTY (Details Textual) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 524,686 | $ 154,571 |
Hua Mei Investments Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 524,686 | $ 154,571 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Beginning balance | $ 2,208,759 | $ 1,497,945 |
Addition: Net operating loss | 395,256 | 710,814 |
Total - Net operating loss carryforwards | $ 2,604,015 | $ 2,208,759 |
Effective tax rate | 35.00% | 35.00% |
Deferred tax asset | $ 911,405 | $ 773,066 |
Valuation allowance | (911,405) | (773,066) |
Ending balance | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Contingency [Line Items] | ||
U.S. Statutory rate | 35.00% | 35.00% |
Foreign income not recognized in the U.S. | (35.00%) | (35.00%) |
PRC statutory income tax rate | 25.00% | 25.00% |
Tax exemption | (25.00%) | (25.00%) |
Effective income tax rate | 0.00% | 0.00% |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 25.00% | 25.00% |
Operating Loss Carryforwards | $ 2,600,000 | |
Valuation Allowance, Commentary | 100% | |
Operating Loss Carryforwards Commencing Year | 2,018 | |
Operating Loss Carryforwards Expiration Year | 2,036 | |
Deferred Tax Assets Operating Loss Addition | $ 395,256 | $ 710,814 |