Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Jun. 30, 2016 | Nov. 11, 2016 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | Delta Technology Holdings Ltd | |
Entity Central Index Key | 1,543,268 | |
Current Fiscal Year End Date | --06-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | DELT | |
Entity Common Stock, Shares Outstanding | 9,618,852 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 63,149 | $ 217,612 |
Restricted cash | 89,225 | 26,552,715 |
Trade and other receivables | 116,228,901 | 120,374,988 |
Inventories | 5,880,881 | 9,751,596 |
Total current assets | 122,262,156 | 156,896,911 |
Non-current assets | ||
Property, plant and equipment, net | 51,064,565 | 65,260,454 |
Land use rights | 2,125,665 | 2,833,833 |
Deferred tax assets | 691,764 | 733,588 |
Total Non current assets | 53,881,994 | 68,827,875 |
Total assets | 176,144,150 | 225,724,786 |
Current liabilities | ||
Trade and other payables | 21,194,399 | 45,279,369 |
Advances from customers | 6,225,058 | 2,233,691 |
Bank borrowings | 68,313,619 | 73,986,211 |
Income tax payables | 191,284 | 962,072 |
Deferred tax liabilities | 667,851 | 1,948,948 |
Dividends payable | 35,000,000 | 35,000,000 |
Warrants liabilities | 1,049,847 | 7,906,529 |
Total current liabilities | 132,642,058 | 167,316,820 |
Total liabilities | 132,642,058 | 167,316,820 |
Capital and reserves | ||
Ordinary shares, $0.0001 par value per share, 150,000,000 shares authorized 9,618,852 and 8,720,994 shares issued and outstanding at June 30, 2016 and 2015 respectively | 962 | 872 |
Preferred shares, par value $0.0001 per share, 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Additional paid-in capital | 45,540,719 | 41,427,773 |
Statutory reserves | 7,180,500 | 7,180,500 |
Accumulated losses | (6,962,585) | (206,982) |
Accumulated other comprehensive income | (2,257,504) | 10,005,803 |
Total equity | 45,502,092 | 58,407,966 |
Total liabilities and equity | $ 176,144,150 | $ 225,724,786 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 9,618,852 | 8,720,994 |
Common stock, shares outstanding | 9,618,852 | 8,720,994 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | $ 53,418,112 | $ 202,009,160 | $ 175,327,717 |
Cost of sales | (48,713,456) | (182,692,715) | (157,904,729) |
Gross profit | 4,704,656 | 19,316,445 | 17,422,988 |
Operating expenses: | |||
Selling expenses | (2,251,997) | (2,384,459) | (2,306,021) |
General and administrative expenses | (5,376,137) | (3,474,472) | (3,304,848) |
Bad debts provision | (7,509,470) | (1,199,110) | (177,179) |
Total operating expenses | (15,137,604) | (7,058,041) | (5,788,048) |
Other income (expenses): | |||
Interest expenses | (3,710,945) | (5,295,616) | (4,000,626) |
Interest income | 336,623 | 5,433,346 | 1,948,743 |
Change in fair value of convertible bonds | 0 | 0 | (156,199) |
Change in fair value of warrants | 6,856,682 | (7,906,529) | 0 |
Gain on disposal of a subsidiary | 435,488 | 1,178,093 | 0 |
Other gains (loss) - net | (1,043,130) | (531,941) | 7,929 |
Total other income (expenses) | 2,874,718 | (7,122,647) | (2,200,153) |
Income before income taxes | (7,558,230) | 5,135,757 | 9,434,787 |
Income taxes | 802,627 | (3,729,238) | (2,606,479) |
Net (loss) income | (6,755,603) | 1,406,519 | 6,828,308 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments | (12,263,307) | 3,966,141 | 316,439 |
Total other comprehensive income | (12,263,307) | 3,966,141 | 316,439 |
Comprehensive (loss) income | $ (19,018,910) | $ 5,372,660 | $ 7,144,747 |
(Loss) / Earnings per share attributable to Equity holders of the Company - Basic (in dollars per share) | $ (1.46) | $ 1.44 | $ 1.53 |
(Loss) / Earnings per share attributable to Equity holders of the Company - Diluted (in dollars per share) | $ (1.46) | $ 1.44 | $ 1.53 |
Weighted average shares used in calculating earnings per ordinary share - Basic (in shares) | 9,323,108 | 6,462,577 | 4,560,000 |
Weighted average shares used in calculating earnings per ordinary share - Diluted (in shares) | 9,323,108 | 6,462,577 | 4,560,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Balance at Jun. 30, 2013 | $ 48,314,627 | $ 456 | $ 8,852,257 | $ 3,219,995 | $ 30,518,696 | $ 5,723,223 |
Balance (in shares) at Jun. 30, 2013 | 4,560,000 | |||||
Net income (loss) for the year | 6,828,308 | $ 0 | 0 | 0 | 6,828,308 | 0 |
Foreign currency translation adjustment | 316,439 | 0 | 0 | 0 | 0 | 316,439 |
Appropriation to statutory reserves | 0 | 0 | 0 | 2,976,954 | (2,976,954) | 0 |
Balance at Jun. 30, 2014 | 55,459,374 | $ 456 | 8,852,257 | 6,196,949 | 34,370,050 | 6,039,662 |
Balance (in shares) at Jun. 30, 2014 | 4,560,000 | |||||
Dividends distribution | (35,000,000) | $ 0 | 0 | 0 | (35,000,000) | 0 |
Reverse acquisition | 32,575,750 | $ 234 | 32,575,516 | 0 | 0 | 0 |
Reverse acquisition (in shares) | 2,337,059 | |||||
Exercise of warrants | 182 | $ 182 | 0 | 0 | 0 | 0 |
Exercise of warrants (in shares) | 1,823,935 | |||||
Net income (loss) for the year | 1,406,519 | $ 0 | 0 | 0 | 1,406,519 | 0 |
Foreign currency translation adjustment | 3,966,141 | 0 | 0 | 0 | 0 | 3,966,141 |
Appropriation to statutory reserves | 0 | 0 | 0 | 983,551 | (983,551) | 0 |
Balance at Jun. 30, 2015 | 58,407,966 | $ 872 | 41,427,773 | 7,180,500 | (206,982) | 10,005,803 |
Balance (in shares) at Jun. 30, 2015 | 8,720,994 | |||||
Exercise of warrants | 4,113,036 | $ 90 | 4,112,946 | 0 | 0 | 0 |
Exercise of warrants (in shares) | 897,858 | |||||
Net income (loss) for the year | (6,755,603) | $ 0 | 0 | 0 | (6,755,603) | 0 |
Foreign currency translation adjustment | (12,263,307) | 0 | 0 | 0 | (12,263,307) | |
Balance at Jun. 30, 2016 | $ 45,502,092 | $ 962 | $ 45,540,719 | $ 7,180,500 | $ (6,962,585) | $ (2,257,504) |
Balance (in shares) at Jun. 30, 2016 | 9,618,852 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (6,755,603) | $ 1,406,519 | $ 6,828,308 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Change in fair value of warrants | (6,856,682) | 7,906,529 | 0 |
Change in fair value of convertible bonds | 0 | 0 | 156,199 |
Depreciation of property and Equipment | 5,883,313 | 6,452,324 | 4,816,403 |
Amortization of land use rights | 67,131 | 79,353 | 41,600 |
Gain on disposals of property, plant and equipment | (90,700) | (14,002) | (113,953) |
Gain on disposals of a subsidiary | (435,488) | (1,178,093) | 0 |
Deferred income taxes | (23,939) | 848,541 | 822,200 |
Allowance for doubtful accounts | 7,509,470 | 1,199,110 | 177,179 |
Allowance for Obsolete Stock | 423,588 | 0 | 0 |
Impairment losses recognized on plant & equipment | 2,599,980 | 0 | 0 |
Changes in assets and liabilities, net of effects of acquisitions and disposals: | |||
Trade and other receivables | (7,101,570) | (46,117,191) | (16,343,386) |
Inventories | 2,671,325 | 4,290,812 | (191,049) |
Trade and other payables | (20,539,601) | 9,384,469 | 8,428,337 |
Advances from customers | 4,169,072 | 454,930 | (665,038) |
Income tax payables | (675,952) | 147,329 | (91,200) |
Net cash provided by (used in) operating activities | (19,195,656) | (15,139,370) | 3,865,600 |
Cash flows from investing activities: | |||
Acquisitions of - Land use rights | 0 | (5,695) | (478,184) |
Acquisitions of - Property, plant and equipment and construction in progress | (929,108) | (4,154,726) | (23,957,404) |
Disposals of property and equipment | (1,516,850) | 8,829,460 | 359,012 |
Proceeds from disposal of a subsidiary | 1,535,243 | 10,518,189 | 0 |
Net cash provided by (used in) investing activities | (910,715) | 15,187,228 | (24,076,576) |
Cash flows from financing activities: | |||
Cash received from capital contribution | 0 | 5,210,000 | 0 |
Proceeds from bank borrowings | 115,610,739 | 52,751,379 | 129,232,006 |
Repayment of bank borrowings | (121,283,331) | (60,142,218) | (108,797,261) |
Due to a shareholder | 0 | (2,844,070) | 2,857,432 |
Change in restricted cash | 24,351,052 | (3,680,317) | 2,011,673 |
Net cash provided by (used in) financing activities | 18,678,460 | (8,705,226) | 25,303,850 |
Effect of exchange rate changes on cash | 1,273,448 | (170,970) | 6,941 |
(Decrease) increase in cash and cash equivalents | (154,463) | (8,828,338) | 5,099,815 |
Cash and cash equivalents at beginning of year | 217,612 | 9,045,950 | 3,946,135 |
Cash and cash equivalents at end of year | 63,149 | 217,612 | 9,045,950 |
Supplemental disclosures of cash flow information | |||
Interest paid | 3,710,945 | 5,433,346 | 2,240,872 |
Tax paid | 1,207,434 | 2,693,055 | 5,109,044 |
Major non cash transactions: | |||
Warrant exercise | $ 90 | $ 182 | $ 0 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 - Organization and Business Operations Delta Technology Holdings Limited (formerly known as CIS Acquisition Limited, the “Company,” or “Delta Technology,” or “we”) was formed on November 28, 2011, under the laws of the British Virgin Islands. We were formed to acquire, through a merger, stock exchange, asset acquisition, stock purchase or similar acquisition transaction, one or more operating businesses. Although we were not limited to a particular geographic region or industry, we intended to focus on operating businesses with primary operations in Russia and Eastern Europe. We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act. On December 21, 2012, our IPO of 4,000,000 10.00 40,000,000 0.0001 10.00 4,500,000 0.75 136,000 2,720 41,600,000 3,375,000 On September 16, 2014, a Stock Purchase Agreement (the “Purchase Agreement”) was entered into by and among Delta Technology, Elite Ride Limited, a British Virgin Islands corporation (“Elite”), Delta Advanced Materials Limited, a Hong Kong corporation (“Delta”) and the shareholders of Elite (the “Elite Shareholders”). Upon closing of the Purchase Agreement on September 19, 2014, Delta Technology acquired all of the shares of Elite from Elite Shareholders in exchange for the issuance to Elite Shareholders an aggregate of 6,060,000 4,560,000 1,500,000 The Earnout Payment Shares, if any, will be issued as follows: (a) 500,000 shares shall be issued if the Company achieves Adjusted Net Income (as defined in the stock purchase agreement) of at least $8 million for the period starting July 1, 2014 and ending June 30, 2015; (b) 500,000 shares shall be issued if the Company achieves Adjusted Net Income of at least $9.2 million for the period starting July 1, 2015 and ending June 30, 2016; (c) 500,000 shares shall be issued if the Company achieves Adjusted Net Income of at least $10.6 million for the period starting July 1, 2016 and ending June 30, 2017 As a result of the consummation of the Acquisition, Elite is now our wholly subsidiary. Elite was incorporated under British Virgin Islands law on September 13, 2014 solely in contemplation of the Acquisition. It is currently the holding company of all the shares of Delta Advanced Materials Limited, a Hong Kong corporation (“Delta”), which, in turn, holds all the equity interests in four operating subsidiaries in the PRC: Jiangsu Yangtze Delta Fine Chemical Co., Ltd (“Jiangsu Delta”), Jiangsu Zhengxin New Material Research and Development Co., Ltd (“Jiangsu Zhengxin”), Jiangsu Delta Logistics Co., Ltd (“Jiangsu Logistics”), and Binhai Deda Chemical Co., Ltd (“Binhai Deda”) (collectively, the “PRC Subsidiaries”). The Acquisition was accounted for as a reverse acquisition in accordance with US GAAP. Under this method of accounting, Delta Technology was treated as the “acquired” company for financial reporting purposes. This determination was primarily based on Elite comprising the ongoing operations of the combined entity, Elite senior management comprising the senior management of the combined company, and the former holders of Elite having a controlling interest in terms of the voting power of the combined entity. In accordance with guidance applicable to these circumstances, the Acquisition was considered to be a capital transaction in substance. Accordingly, for accounting purposes, the Acquisition was treated as the equivalent of Elite issuing stock for the net assets of Delta Technology, accompanied by a recapitalization. The net assets of Delta Technology will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Acquisition will be those of Elite. Delta (formerly known as China Deltachem Holdings Limited) was incorporated in Hong Kong on June 17, 2010. The address of its registered office is Suite D, 19th Floor, Ritz Plaza, 122 Austin Road, Hong Kong. The reporting currency of Delta is the United States Dollar (“$”).The principal activity of Delta is investment holding and currently operates two wholly-owned subsidiaries in the People’s Republic of China (“PRC”): Jiangsu Delta and Binhai Deda. Jiangsu Delta is the principal operating subsidiary of the Company and is engaged in the production of fine specialty chemicals. On June 15, 2007, Jiangsu Delta was established by S&S International Investment Holding (HK) Limited (“S&S International”), a Hong Kong based investment holding company, as a wholly foreign-owned enterprise (with an initial registered capital of $ 42 28.8 Pursuant to a share transfer agreement entered into on April 13, 2008, Mr. Xin Chao acquired the entire equity interest in Jiangsu Delta from S&S International through Zhengxin International Investment Limited, a Hong Kong corporation (“Zhengxin International”) and became the controller of Jiangsu Delta since then. On May 21, 2008, the acquisition of Jiangsu Delta by Zhengxin International was approved by the Jiangsu Foreign Trade and Economic Cooperation Department in accordance with “The Approval of Alteration of Equities in and Amendment of the Articles of Association of Jiangsu Yantze River Delta Fine Chemical Co, Ltd.” issued by the same authority. As part of corporate restructuring, Delta acquired Jiangsu Delta for a consideration of $ 28.8 10,000 10,000 1.00 68,640,000 8,800,000 6,863 On August 30, 2010, the acquisition of Jiangsu Delta by Delta was approved by the Jiangsu Foreign Trade and Economic Cooperation Department in accordance with “The Approval of Share Transfer of and Amendment of the Articles of Association of Jiangsu Chang San Jiao Chemical Co., Ltd.” issued by the same authority. On May 26, 2011, Delta carried out a bonus share issue, whereby an additional 39,990,000 1.00 39,990,000 40 40 1.00 Delta entered into a series of Securities Purchase Agreements dated January 31, 2011, May 16, 2011 and June 30, 2011, respectively, with the funds managed by Korea Investment Partners Co. Ltd. And Kleiner, Perkins, Caufield & Byers (the “Bondholders”), pursuant to which it issued convertible bonds (“Convertible Bonds”) for an aggregate principal amount of US$ 18 6.00 15.00 On March 28, 2015, Zhenjiang Xinshun Chemical Trading Company Ltd and Jiangsu Delta entered into a sale and purchase agreement, pursuant to which the entire equity interest of Jiangsu Zhengxin R&D was sold to Zhenjiang Xinshun at a consideration of $ 10,518,189 64.555 On January 8 , 2016, Mr. Yang Yi and Jiangsu Logistics entered into a sale and purchase agreement, pursuant to which the entire equity interest of Jiangsu Logistics was sold to Mr. Yang Yi at a consideration of approximately $ 1,505,140 10 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 - Summary of Significant Accounting Policies The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 period. Actual results could materially differ from those estimates. The Company operates in one business and geographical segment of manufacturing and sales of organic compounds in the PRC. ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Given the economic characteristics of the similar nature of the products sold, the type of customer and the method of distribution, the Company operates as one reportable segment as defined by ASC 280, Segment Reporting. The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting currency and functional currency. The Company’s subsidiaries in the PRC use Renminbi (“RMB”) as their functional currencies. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange ruling at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of income. In accordance with ASC 830, Foreign Currency Matters, the Company translated the assets and liabilities into US$ using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation are recorded in shareholders’ equity as part of accumulated other comprehensive income. Revenue principally represents organic compound sale revenue. Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities and is recorded net of value added tax (“VAT”). Consistent with the criteria of ASC 605 “Revenue Recognition” (“ASC 605”), the Company recognizes revenue when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been provided, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from the sale of goods is recognized upon delivery when the significant risks and rewards of ownership of goods have transferred to the buyer, continuing managerial involvement usually associated with ownership and effective control have ceased and the coasts incurred or to be incurred in respect of the transaction can be measured reliably. Interest income is recognized on a time-proportion basis using the effective interest method. Borrowing costs are recognised in profit or loss using the effective interest method except for those costs that are directly attributable to assets under construction. Borrowing costs on general borrowings are capitalised by applying a capitalization rate to construction or expenditures that are financed by general borrowings. Borrowing costs on general financing during the years ended June 30, 2016, 2015 and 2014 were capitalized at a rate of 5.2 7.11 7.11 The Company accounts for its leases under the provisions of ASC 840, Leases. Certain of the Company’s operating leases provide for minimum annual payments that change over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for minimum step rents when the amount of rent expense exceeds the actual lease payments and it reduces the deferred rent liability when the actual lease payments exceeds the amount of straight-line rent expense. Rent holidays and tenant improvement allowances for store remodels are amortized on the straight-line basis over the initial term of the lease and any option period that is reasonably assured of being exercised. Restricted cash are cash deposited in fixed deposit accounts maintained in the PRC and Hong Kong for the purpose of securing bank borrowings. Trade receivables 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 managements’ assessment of known requirements, aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. Inventories are carried at the lower of cost and net realizable value. Cost is determined using the monthly average cost method, except for materials-in-transit. The cost of finished goods comprises raw materials, direct labor, other direct costs and related production overheads (based on normal operating capacity) but excludes costs of idle plant and abnormal waste. Net realizable value is the estimated selling price in the ordinary course of business, less the applicable variable selling expenses. Property, plant and equipment are recorded at cost. The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating the manner intended by management. Significant additions or improvements extending useful lives of assets are capitalized. Maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives as follows: Buildings 10 20 Machinery 10 20 Vehicles 4 Plant and equipment 3 5 Software 5 Construction in progress represents buildings and related premises under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation and amortization of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated income statements. According to the laws of the PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through the land use rights granted by the government. The land use rights represent cost of the rights to use the land in respect of properties located in the PRC. Land use rights are carried at cost and amortized on a straight-line basis over the period of rights of 50 52 The Company reviews long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows, usually at the store level. The carrying amount of a long-lived asset is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. If the asset is determined not to be recoverable, then it is considered to be impaired and the impairment to be recognized is the amount by which the carrying amount of the asset exceeds the fair value of the asset, determined using discounted cash flow valuation techniques, as defined in ASC 360, Property, Plant, and Equipment. The Company determined the sum of the undiscounted cash flows expected to result from the use of the asset by projecting future revenue and operating expense for each store under consideration for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. The Company’s evaluation resulted in no long-lived asset impairment charges during the years ended June 30, 2016, 2015 and 2014. The Company allocates goodwill to reporting units based on the reporting unit expected to benefit from the business combination. The Company evaluates their reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, we perform a quantitative impairment test. The Company’s evaluation resulted in goodwill impairment charges of nil, nil and nil respectively during the years ended June 30, 2016, 2015 and 2014. We determine whether to disclose or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable, and whether it can be reasonably estimated. We analyze, if any, our litigation and regulatory matters based on available information to assess the potential liabilities. Our assessment is developed based on an analysis of possible outcomes under various strategies. We accrue for loss contingencies when such amounts are probable and reasonably estimable. If a contingent liability is only reasonably possible, we will disclose the potential range of the loss, if estimable. We record losses related to contingencies in cost of operations or selling, general and administrative expenses, depending on the nature of the underlying transaction leading to the loss contingency. Convertible bonds are presented as current liabilities unless the Company has an unconditional right to defer settlement for at least 12 months after the balance sheet date, in which case they are presented as non-current liabilities. On issuance of convertible foreign currency bonds, the proceeds from convertible bonds issued are allocated to the liability component presented on the balance sheet. The liability component including the conversion option is recognised initially at its fair value, determined using the Binomial Valuation Model. It is subsequently carried at its fair value with fair value changes recognised in profit or loss. When the conversion option is exercised, the carrying amount of the liability component is derecognised with a corresponding recognition of share capital. Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company accounts the mandated defined contribution plan under the vested benefit obligations approach based on the guidance of ASC 715, Compensation-Retirement Benefits. The income of the Company’s PRC subsidiaries is distributable to their shareholder after transfer to reserves as required by relevant PRC laws and regulations and the subsidiary’s Articles of Association. As stipulated by the relevant laws and regulations in the PRC, these PRC subsidiaries are required to maintain reserves which are non-distributable to shareholders. Appropriations to the reserves are approved by the respective boards of directors. Reserves include statutory reserves and discretionary reserves. Statutory reserves can be used to make good previous years’ losses, if any, and may be converted into capital in proportion to the existing equity interests of shareholders, provided that the balance after such conversion is not less than 25% of the registered capital. The appropriation to the statutory reserves must not be less than 10% of net profit after taxation. Such appropriation may cease to apply if the balance of the fund is equal to 50% of the entity’s registered capital. Research and development costs are expensed as incurred. The research and development costs were not material for the years ended June 30, 2016, 2015 and 2014. Advertising expenses are expensed as incurred. The advertising expenses were not material for the years ended June 30, 2016, 2015 and 2014. The Company follows ASC 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 of 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. The Company adopted ASC 740-10-25, which provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax position. The Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company did not recognize any additional liabilities for uncertain tax positions as a result of the implementation of ASC 740-10-25. Cash and cash equivalents consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use the Company maintained accounts at banks. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the U.S. Federal depository insurance coverage of $250,000, or other limits of protection if held in financial institutions outside of the U.S., such as Government securities coverage of HK$500,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Goods and services received or acquired in an equity-settled share based payment transaction, which do not qualify for recognition as assets, are recognised as expenses with a corresponding increase in equity. The Company measures the goods and services received at fair value of the goods and services received, unless that fair value cannot be estimated reliably. The Company has adopted FASB Accounting Standard Codification Topic 220 (“ASC 220”) “Comprehensive income” (formerly known as SFAS No. 130, “Reporting Comprehensive Income”), which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Accumulated other comprehensive income represents the accumulated balance of foreign currency translation adjustments of the Company. ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: · Level 1 Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company holds. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. · Level 2 Valuation based on quoted prices in markets that are not active for which all significant inputs are observable, either directly or indirectly. · Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company adopted ASC 820, Fair Value Measurements and Disclosures, on January 1, 2008 for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis (at least annually). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company has also adopted ASC 820, on January 1, 2009 for non financial assets and non financial liabilities, as these items are not recognized at fair value on a recurring basis. The adoption of ASC 820 for all financial assets and liabilities and non-financial assets and non-financial liabilities did not have any impact on the Company’s consolidated financial statements. Financial instruments include cash, accounts receivable, prepayments and other receivables, short-term borrowings from banks, accounts payable and accrued expenses and other payables. The carrying amounts of cash, accounts receivable, prepayments and other receivables, short-term loans, accounts payable and accrued expenses approximate their fair value due to the short term maturities of these instruments. See footnote 17 regarding the fair value of the Company’s warrants, which are classified as Level 3 liabilities in the fair value hierarchy. The fair values of the convertible bonds are determined using Binomial Valuation Model. The fair values of current financial assets and liabilities carried at amortized cost approximate their carrying amounts. Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. In accordance with ASC No. 450 Subtopic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Recently Issued Accounting Guidance In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance makes targeted improvements to existing U.S. GAAP by: (1) Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; (3) Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and. (4) Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the new guidance becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the existing guidance for lease accounting, “Leases (Topic 840).” ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments.” The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. The amendments clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. All other entities must apply the new requirements for fiscal years beginning after December 15, 2017 and interim periods within fiscal years beginning after December 15, 2018. All entities have the option of adopting the new requirements early, including adoption in an interim period. If an entity early adopts the new requirements in an interim period, it must reflect any adjustments as of the beginning of the fiscal year that includes that interim period. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In April 2016, the FASB released ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. 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 clarify 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 does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. 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 unaudited condensed consolidated financial statements and related disclosures. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Going concern
Going concern | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Substantial Doubt about Going Concern [Text Block] | Note 3: Going concern As shown in the accompanying consolidated financial statements, the Company has generated a net loss of $6,755,603 and an accumulated deficit of $2,257,504 as of June 30, 2016. The Company also experienced insufficient cash flows from operations and will be required continuous financial support from the shareholders. The Company will need to raise capital to fund its operations until it is able to generate sufficient revenue to support the future development. Moreover, the Company may be continuously raising capital through the sale of debt and equity securities. The Company’s ability to achieve these objectives cannot be determined at this stage. If the Company is unsuccessful in its endeavors, it may be forced to cease operations. These consolidated financial statements do not include any adjustments that might result from this uncertainty which may include adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors have raised substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be able to obtain adequate financing or achieve profitability. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | Note 4 - Concentration of Credit Risk The Company maintains cash in bank deposit accounts in PRC and Hong Kong. The Company performs ongoing evaluations of this institution to limit its concentration risk exposure. The Company sells organic compound principally in the PRC. Because of this, the Company is subject to regional risks, such as the economy, regional financial conditions and unemployment, weather conditions, power outages, and other natural disasters specific to the region in which the Company operates. Sales Trade receivables 2016 2015 2016 2015 Customer A 6.46 % 15.7 % 21.83 % 2.87 % Customer B 11.61 % 7.7 % 0.00 % 0.00 % Customer C 20.81 % 6.2 % 16.89 % 9.61 % Customer D 29.52 % 3.56 % 12.31 % 0.00 % Details of suppliers accounting for 10% or more of the Company’s purchases or trade payables are as follows: Purchases Trade payables 2016 2015 2016 2015 Supplier A 16.3 % 20.4 % 0.00 % 0.29 % Supplier B 46 % 20.0 % 38.7 % 0.00 % Supplier C 0.00 % 11.2 % 27.76 % 11.66 % |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5 - Trade and Other Receivables 2016 2015 Notes receivable 438,314 2,553,350 Trade receivables 57,978,341 56,339,927 Less: Allowance for doubtful accounts (7,852,062) (2,521,648) Trade receivables net 50,126,279 53,818,279 Other receivables 53,799,508 41,376,604 Prepayments and deposits 11,864,800 22,626,755 $ 116,228,901 $ 120,374,988 Bank borrowings are secured on trade receivables of the Company with carrying amounts of nil, nil and $ 6,983,127 2016 2015 Within 3 months $ 11,693,858 $ 54,555,488 From 3 to 6 months 13,267,620 52,203,130 Past due over 6 months 91,267,423 13,616,370 $ 116,228,901 $ 120,374,988 |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 6 - Inventories 2016 2015 Finished goods $ 1,960,063 $ 6,213,300 Raw materials 3,920,818 3,538,296 $ 5,880,881 $ 9,751,596 The cost of inventories recognized as an expense and included in cost of sales amounts to $ 44,722,232 151,232,213 116,976,856 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 7 - Property, Plant and Equipment 2016 2015 Buildings $ 13,108,283 $ 13,480,382 Machinery 57,207,298 53,540,780 Vehicles 329,540 1,911,054 Plant and equipment 4,454,496 13,409,412 Software 83,221 97,151 Construction in progress 484,552 4,000,155 75,667,390 86,438,934 Less: Accumulated depreciation (24,602,825) (21,178,480) Property, plant and equipment, net $ 51,064,565 $ 65,260,454 Borrowing costs capitalized during the years ended June 30, 2016, 2015 and 2014 were nil, nil and $ 824,669 Buildings with net book value of approximately $ 258,922 379,902 313,286 The depreciation expenses for the years ended June 30, 2016, 2015 and 2014 were $ 5,883,313 6,452,324 4,816,403 The impairment losses recognized on plant and equipment which were no more use for future production for the years ended June 30, 2 0 0 2,599,980 |
Land Use Rights
Land Use Rights | 12 Months Ended |
Jun. 30, 2016 | |
Land Use Rights Disclosure [Abstract] | |
Land Use Rights Disclosure [Text Block] | Note 8 - Land Use Rights 2016 2015 Land use rights $ 2,551,395 $ 3,222,872 Less: Accumulated amortization (425,730) (389,039) Land use rights - net $ 2,125,665 $ 2,833,833 Land use rights with net book value of approximately $ 1,667,055 1,898,402 2,394,716 The Company has disposed Land use rights during the period, the consideration received was $ 452,955 447,366 5,589 67,131 79,353 41,600 Twelve months ending June 30, 2017 $ 49,333 2018 49,333 2019 49,333 2020 49,333 2021 49,333 Thereafter 1,879,000 Total $ 2,125,665 |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | Note 9 - Trade and Other Payables 2016 2015 Notes payable $ 30,135 $ 24,626,954 Trade payables 17,869,460 6,658,065 Accruals 432,030 358,747 Other taxes payable 1,367,037 2,364,945 Other payables 1,495,737 11,270,658 $ 21,194,399 $ 45,279,369 |
Bank Borrowings
Bank Borrowings | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | Note 10 - Bank Borrowings Borrowings primarily consist of loans denominated in Renminbi, and U.S. dollars. Bank borrowings are secured over certain bank deposits, certain trade receivables, certain plant and machinery, and certain land use rights. The bank borrowings are guaranteed by a number of unrelated parties, and Mr. Chao Xin, our Chief Executive Officer, Chairman and a shareholder of the Company. The Bank borrowing as of years ended June 30, 2016 and 2015 were $ 68,313,619 73,986,211 |
Dividends Payable
Dividends Payable | 12 Months Ended |
Jun. 30, 2016 | |
Dividends Payable [Abstract] | |
Dividends Payable [Text Block] | Note 11 - Dividends Payable On September 13, 2014, the directors of Delta approved a resolution for a cash dividends distribution of $ 35,000,000 392,000 392,000 34,216,000 The directors of Delta are reviewing the cash position of the Company periodically to decide when to pay for the dividend. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 12 - Income Taxes 2016 2015 2014 Current income tax expense $ (776,109) $ 2,876,710 $ 1,784,278 Deferred taxation (26,518) 852,528 822,200 $ (802,627) $ 3,729,238 $ 2,606,478 2016 2015 2014 Income (loss) before income taxes $ (7,558,230) $ 5,135,757 $ 9,434,787 Income tax computed at statutory EIT rate (25%) - 1,283,939 2,358,696 Effect of different tax rates available to different jurisdictions - 123,830 23,964 Non-deductible expenses 6,755,603 1,976,633 25,773 Change in valuation allowance and others - 344,836 198,046 Income tax expenses $ (802,627) $ 3,729,238 $ 2,606,479 Deferred income taxes are recognised for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carryforwards. Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. 2016 2015 Deferred tax assets (liabilities) Current portion: Operating loss carryforward $ 207,868 $ 207,868 Accrued receivable 3,861,729 525,720 Corporation Income Tax in accordance with the PRC State Administration of Taxation (4,045,684) 1,948,948 Net deferred tax (liabilities) assets $ 23,913 $ (1,215,360) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 13 - Earnings Per Share The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Potentially dilutive common shares consist of convertible bonds (using the if-converted method) and exercisable warrants. 2016 2015 2014 Numerator: Net (loss)/ income attributable to ordinary shareholders for computing net income per ordinary share basic $ (6,755,603) $ 1,406,519 $ 6,828,308 Gain on valuation of convertible bonds - - 156,199 (Gain)/ loss on valuation of warrants (6,856,682) 7,906,529 - Net (loss)/ income attributable to ordinary shareholders for computing net income per ordinary share diluted $ (13,612,285) $ 9,313,048 $ 6,984,507 Denominator: Weighted average number of shares used in calculating net income per ordinary share basic 9,323,108 6,462,577 4,560,000 Weighted average number of shares used in calculating net income per ordinary share diluted 9,323,108 6,462,577 4,560,000 The 6,175,710 Net/(loss) income per ordinary share - basic $ (1.46) $ 1.44 $ 1.53 Net/(loss) income per ordinary share - diluted $ (1.46) $ 1.44 $ 1.53 |
Operating Lease
Operating Lease | 12 Months Ended |
Jun. 30, 2016 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | Note 14 Operating Lease The Company did not have any operating lease as of June 30, 2016, 2015 and 2014. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 15 Related Party Transactions In addition to the information disclosed elsewhere in the financial statements, the following transaction took place between the Company and related parties at terms agreed between the parties: Guarantees in favour of the Company’s bank borrowings were received from Mr. Chao Xin, our Chief Executive Officer, Chairman and a shareholder for year ended June 30, 2016. |
Disposal of wholly owned subsid
Disposal of wholly owned subsidiary | 12 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 16 Disposal of wholly owned subsidiary On January 6, 2016, Mr. Yang Yi and Jiangsu Logistics entered into a sale and purchase agreement, pursuant to which the entire equity interest of Jiangsu Logistics was sold to Mr. Yang Yi at a consideration of approximately $ 1,505,140 10 435,488 The disposal was completed on 29 February 2016. Assets and liabilities at the date of disposal: Cash and cash equivalents $ 779 Trade and other receivables 1,019,345 Property, plant and equipment 156,722 Trade and other payable (88,917) Tax payables (18,277) Net Assets $ (1,069,652) Consideration received $ 1,505,140 Gain on disposal $ 435,488 On March 28, 2015, Zhenjiang Xinshun Chemical Trading Company Ltd and Jiangsu Delta entered into a sale and purchase agreement, pursuant to which the entire equity interest of Jiangsu Zhengxin R&D was sold to Zhenjiang Xinshun at a consideration of $ 10,518,189 64.555 Cash and cash equivalents $ 4,154 Trade and other receivables 1,012,013 Property, plant and equipment 9,297,970 Land use right 2,850,240 Trade and other payables (13,879,652) Net Liabilities $ (715,275) Consideration received $ 10,518,189 Less: Amount required repaying to Danyang Beijiate (10,055,371) Gain on disposal $ 1,178,093 |
Warrants
Warrants | 12 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 17 - Warrants On December 21, 2012, the company issued 4,000,000 10.00 The public warrants may be redeemed by the Company at a price of $ 0.01 30 15.00 In connection with the Private Placement, on December 21, 2012, the founders (CIS Acquisition Holding Co Ltd) and certain of their designees purchased 4,500,000 0.75 3,375,000 As of June 30, 2016, there were 6,175,570 679,312 |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Disclosure [Text Block] | Note 18 - Commitments 2016 2015 Capital expenditures contracted for are analyzed as follows: Contracted but not provided for: Property, plant and equipment $ 2,644,636 $ 3,337,864 |
Legal Proceeding
Legal Proceeding | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note 19 Legal Proceeding There had been no legal proceedings in which the Company is a party as at June 30, 2016. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 20 - Subsequent Event On September 27, 2016, the board of directors of the Company adopted the 2016 Equity Incentive Plan (“2016 Incentive Plan”), covering 1,442,827 ordinary shares, which represents approximately 15% of the total number of the Company’s current issued and outstanding ordinary shares. The shareholders approved the 2016 Incentive Plan at the special meeting held on October 31, 2016. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation and Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The consolidated financial statements include the financial statements of the Company, and its wholly-owned subsidiaries. All intercompany accounts, transactions, and profits have been eliminated upon consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 period. Actual results could materially differ from those estimates. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company operates in one business and geographical segment of manufacturing and sales of organic compounds in the PRC. ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Given the economic characteristics of the similar nature of the products sold, the type of customer and the method of distribution, the Company operates as one reportable segment as defined by ASC 280, Segment Reporting. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting currency and functional currency. The Company’s subsidiaries in the PRC use Renminbi (“RMB”) as their functional currencies. Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange ruling at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of income. In accordance with ASC 830, Foreign Currency Matters, the Company translated the assets and liabilities into US$ using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation are recorded in shareholders’ equity as part of accumulated other comprehensive income. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue principally represents organic compound sale revenue. Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities and is recorded net of value added tax (“VAT”). Consistent with the criteria of ASC 605 “Revenue Recognition” (“ASC 605”), the Company recognizes revenue when the following four revenue recognition criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been provided, (iii) the selling price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from the sale of goods is recognized upon delivery when the significant risks and rewards of ownership of goods have transferred to the buyer, continuing managerial involvement usually associated with ownership and effective control have ceased and the coasts incurred or to be incurred in respect of the transaction can be measured reliably. Interest income is recognized on a time-proportion basis using the effective interest method. |
Borrowing Costs [Policy Text Block] | Borrowing Costs Borrowing costs are recognised in profit or loss using the effective interest method except for those costs that are directly attributable to assets under construction. Borrowing costs on general borrowings are capitalised by applying a capitalization rate to construction or expenditures that are financed by general borrowings. Borrowing costs on general financing during the years ended June 30, 2016, 2015 and 2014 were capitalized at a rate of 5.2 7.11 7.11 |
Lease, Policy [Policy Text Block] | Leases The Company accounts for its leases under the provisions of ASC 840, Leases. Certain of the Company’s operating leases provide for minimum annual payments that change over the life of the lease. The aggregate minimum annual payments are expensed on the straight-line basis over the minimum lease term. The Company recognizes a deferred rent liability for minimum step rents when the amount of rent expense exceeds the actual lease payments and it reduces the deferred rent liability when the actual lease payments exceeds the amount of straight-line rent expense. Rent holidays and tenant improvement allowances for store remodels are amortized on the straight-line basis over the initial term of the lease and any option period that is reasonably assured of being exercised. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash are cash deposited in fixed deposit accounts maintained in the PRC and Hong Kong for the purpose of securing bank borrowings. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Trade Receivables Trade receivables 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 managements’ assessment of known requirements, aging of receivables, payment history, the customer’s current credit worthiness and the economic environment. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are carried at the lower of cost and net realizable value. Cost is determined using the monthly average cost method, except for materials-in-transit. The cost of finished goods comprises raw materials, direct labor, other direct costs and related production overheads (based on normal operating capacity) but excludes costs of idle plant and abnormal waste. Net realizable value is the estimated selling price in the ordinary course of business, less the applicable variable selling expenses. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are recorded at cost. The cost of an item of property, plant and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating the manner intended by management. Significant additions or improvements extending useful lives of assets are capitalized. Maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives as follows: Buildings 10 20 Machinery 10 20 Vehicles 4 Plant and equipment 3 5 Software 5 Construction in progress represents buildings and related premises under construction, which is stated at actual construction cost less any impairment loss. Construction in progress is transferred to the respective category of property and equipment when completed and ready for its intended use. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation and amortization of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the consolidated income statements. |
Land Use Rights Policy [Policy Text Block] | Land Use Rights According to the laws of the PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through the land use rights granted by the government. The land use rights represent cost of the rights to use the land in respect of properties located in the PRC. Land use rights are carried at cost and amortized on a straight-line basis over the period of rights of 50 52 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are reviewed for recoverability at the lowest level in which there are identifiable cash flows, usually at the store level. The carrying amount of a long-lived asset is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. If the asset is determined not to be recoverable, then it is considered to be impaired and the impairment to be recognized is the amount by which the carrying amount of the asset exceeds the fair value of the asset, determined using discounted cash flow valuation techniques, as defined in ASC 360, Property, Plant, and Equipment. The Company determined the sum of the undiscounted cash flows expected to result from the use of the asset by projecting future revenue and operating expense for each store under consideration for impairment. The estimates of future cash flows involve management judgment and are based upon assumptions about expected future operating performance. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. The Company’s evaluation resulted in no long-lived asset impairment charges during the years ended June 30, 2016, 2015 and 2014. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill The Company allocates goodwill to reporting units based on the reporting unit expected to benefit from the business combination. The Company evaluates their reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, we perform a quantitative impairment test. The Company’s evaluation resulted in goodwill impairment charges of nil, nil and nil respectively during the years ended June 30, 2016, 2015 and 2014. |
Accrual and Disclosure of Loss Contingencies [Policy Text Block] | We determine whether to disclose or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable, and whether it can be reasonably estimated. We analyze, if any, our litigation and regulatory matters based on available information to assess the potential liabilities. Our assessment is developed based on an analysis of possible outcomes under various strategies. We accrue for loss contingencies when such amounts are probable and reasonably estimable. If a contingent liability is only reasonably possible, we will disclose the potential range of the loss, if estimable. We record losses related to contingencies in cost of operations or selling, general and administrative expenses, depending on the nature of the underlying transaction leading to the loss contingency. |
Debt, Policy [Policy Text Block] | Convertible bonds Convertible bonds are presented as current liabilities unless the Company has an unconditional right to defer settlement for at least 12 months after the balance sheet date, in which case they are presented as non-current liabilities. On issuance of convertible foreign currency bonds, the proceeds from convertible bonds issued are allocated to the liability component presented on the balance sheet. The liability component including the conversion option is recognised initially at its fair value, determined using the Binomial Valuation Model. It is subsequently carried at its fair value with fair value changes recognised in profit or loss. When the conversion option is exercised, the carrying amount of the liability component is derecognised with a corresponding recognition of share capital. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Retirement Benefit Plans Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company accounts the mandated defined contribution plan under the vested benefit obligations approach based on the guidance of ASC 715, Compensation-Retirement Benefits. |
Retained Earnings Appropriated [Policy Text Block] | Retained Earnings - Appropriated The income of the Company’s PRC subsidiaries is distributable to their shareholder after transfer to reserves as required by relevant PRC laws and regulations and the subsidiary’s Articles of Association. As stipulated by the relevant laws and regulations in the PRC, these PRC subsidiaries are required to maintain reserves which are non-distributable to shareholders. Appropriations to the reserves are approved by the respective boards of directors. Reserves include statutory reserves and discretionary reserves. Statutory reserves can be used to make good previous years’ losses, if any, and may be converted into capital in proportion to the existing equity interests of shareholders, provided that the balance after such conversion is not less than 25% of the registered capital. The appropriation to the statutory reserves must not be less than 10% of net profit after taxation. Such appropriation may cease to apply if the balance of the fund is equal to 50% of the entity’s registered capital. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed as incurred. The research and development costs were not material for the years ended June 30, 2016, 2015 and 2014. |
Advertising Costs, Policy [Policy Text Block] | Advertising Expenses Advertising expenses are expensed as incurred. The advertising expenses were not material for the years ended June 30, 2016, 2015 and 2014. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company follows ASC 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 of 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. The Company adopted ASC 740-10-25, which provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax position. The Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company did not recognize any additional liabilities for uncertain tax positions as a result of the implementation of ASC 740-10-25. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use the Company maintained accounts at banks. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the U.S. Federal depository insurance coverage of $250,000, or other limits of protection if held in financial institutions outside of the U.S., such as Government securities coverage of HK$500,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share Based Payment Goods and services received or acquired in an equity-settled share based payment transaction, which do not qualify for recognition as assets, are recognised as expenses with a corresponding increase in equity. The Company measures the goods and services received at fair value of the goods and services received, unless that fair value cannot be estimated reliably. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income The Company has adopted FASB Accounting Standard Codification Topic 220 (“ASC 220”) “Comprehensive income” (formerly known as SFAS No. 130, “Reporting Comprehensive Income”), which establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Accumulated other comprehensive income represents the accumulated balance of foreign currency translation adjustments of the Company. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: ⋅ Level 1 Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company holds. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. ⋅ Level 2 Valuation based on quoted prices in markets that are not active for which all significant inputs are observable, either directly or indirectly. ⋅ Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company adopted ASC 820, Fair Value Measurements and Disclosures, on January 1, 2008 for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis (at least annually). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company has also adopted ASC 820, on January 1, 2009 for non financial assets and non financial liabilities, as these items are not recognized at fair value on a recurring basis. The adoption of ASC 820 for all financial assets and liabilities and non-financial assets and non-financial liabilities did not have any impact on the Company’s consolidated financial statements. Financial instruments include cash, accounts receivable, prepayments and other receivables, short-term borrowings from banks, accounts payable and accrued expenses and other payables. The carrying amounts of cash, accounts receivable, prepayments and other receivables, short-term loans, accounts payable and accrued expenses approximate their fair value due to the short term maturities of these instruments. See footnote 17 regarding the fair value of the Company’s warrants, which are classified as Level 3 liabilities in the fair value hierarchy. The fair values of the convertible bonds are determined using Binomial Valuation Model. The fair values of current financial assets and liabilities carried at amortized cost approximate their carrying amounts. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. In accordance with ASC No. 450 Subtopic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Guidance In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance makes targeted improvements to existing U.S. GAAP by: (1) Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; (3) Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and. (4) Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the new guidance becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the existing guidance for lease accounting, “Leases (Topic 840).” ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments.” The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. The amendments clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. All other entities must apply the new requirements for fiscal years beginning after December 15, 2017 and interim periods within fiscal years beginning after December 15, 2018. All entities have the option of adopting the new requirements early, including adoption in an interim period. If an entity early adopts the new requirements in an interim period, it must reflect any adjustments as of the beginning of the fiscal year that includes that interim period. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In March 2016, the FASB issued Accounting Standards Update No. 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Company does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. In April 2016, the FASB released ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. The ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. 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 clarify 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 does not anticipate that this adoption will have a significant impact on its financial position, results of operations, or cash flows. 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 unaudited condensed consolidated financial statements and related disclosures. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Public Utility Property, Plant, and Equipment [Table Text Block] | Depreciation is computed using the straight-line method over the estimated useful lives as follows: Buildings 10 20 Machinery 10 20 Vehicles 4 Plant and equipment 3 5 Software 5 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Fair Value, Concentration of Risk [Table Text Block] | Details of major customers accounting for 10% or more of the Company’s sales or trade receivables are as follows: Sales Trade receivables 2016 2015 2016 2015 Customer A 6.46 % 15.7 % 21.83 % 2.87 % Customer B 11.61 % 7.7 % 0.00 % 0.00 % Customer C 20.81 % 6.2 % 16.89 % 9.61 % Customer D 29.52 % 3.56 % 12.31 % 0.00 % Details of suppliers accounting for 10% or more of the Company’s purchases or trade payables are as follows: Purchases Trade payables 2016 2015 2016 2015 Supplier A 16.3 % 20.4 % 0.00 % 0.29 % Supplier B 46 % 20.0 % 38.7 % 0.00 % Supplier C 0.00 % 11.2 % 27.76 % 11.66 % |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Debt [Table Text Block] | 2016 2015 Notes receivable 438,314 2,553,350 Trade receivables 57,978,341 56,339,927 Less: Allowance for doubtful accounts (7,852,062) (2,521,648) Trade receivables net 50,126,279 53,818,279 Other receivables 53,799,508 41,376,604 Prepayments and deposits 11,864,800 22,626,755 $ 116,228,901 $ 120,374,988 |
Schedule Of Age Analysis Of Trade And Other Receivables [Table Text Block] | Age analysis of trade and other receivables: 2016 2015 Within 3 months $ 11,693,858 $ 54,555,488 From 3 to 6 months 13,267,620 52,203,130 Past due over 6 months 91,267,423 13,616,370 $ 116,228,901 $ 120,374,988 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | 2016 2015 Finished goods $ 1,960,063 $ 6,213,300 Raw materials 3,920,818 3,538,296 $ 5,880,881 $ 9,751,596 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | 2016 2015 Buildings $ 13,108,283 $ 13,480,382 Machinery 57,207,298 53,540,780 Vehicles 329,540 1,911,054 Plant and equipment 4,454,496 13,409,412 Software 83,221 97,151 Construction in progress 484,552 4,000,155 75,667,390 86,438,934 Less: Accumulated depreciation (24,602,825) (21,178,480) Property, plant and equipment, net $ 51,064,565 $ 65,260,454 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Land Use Rights Disclosure [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 2016 2015 Land use rights $ 2,551,395 $ 3,222,872 Less: Accumulated amortization (425,730) (389,039) Land use rights - net $ 2,125,665 $ 2,833,833 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The amortization expenses for the years ended June 30, 2016, 2015 and 2014 were $ 67,131 79,353 41,600 Twelve months ending June 30, 2017 $ 49,333 2018 49,333 2019 49,333 2020 49,333 2021 49,333 Thereafter 1,879,000 Total $ 2,125,665 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities [Table Text Block] | 2016 2015 Notes payable $ 30,135 $ 24,626,954 Trade payables 17,869,460 6,658,065 Accruals 432,030 358,747 Other taxes payable 1,367,037 2,364,945 Other payables 1,495,737 11,270,658 $ 21,194,399 $ 45,279,369 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The income tax provision consisted of the following: 2016 2015 2014 Current income tax expense $ (776,109) $ 2,876,710 $ 1,784,278 Deferred taxation (26,518) 852,528 822,200 $ (802,627) $ 3,729,238 $ 2,606,478 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The difference between the income tax expenses and the expected income tax computed at statutory Enterprise Income Tax rate (“EIT”) of the PRC was as follows: 2016 2015 2014 Income (loss) before income taxes $ (7,558,230) $ 5,135,757 $ 9,434,787 Income tax computed at statutory EIT rate (25%) - 1,283,939 2,358,696 Effect of different tax rates available to different jurisdictions - 123,830 23,964 Non-deductible expenses 6,755,603 1,976,633 25,773 Change in valuation allowance and others - 344,836 198,046 Income tax expenses $ (802,627) $ 3,729,238 $ 2,606,479 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to the following approximate deferred tax assets and liabilities as of June 30, 2016 and 2015 are presented below: 2016 2015 Deferred tax assets (liabilities) Current portion: Operating loss carryforward $ 207,868 $ 207,868 Accrued receivable 3,861,729 525,720 Corporation Income Tax in accordance with the PRC State Administration of Taxation (4,045,684) 1,948,948 Net deferred tax (liabilities) assets $ 23,913 $ (1,215,360) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted net income per common share: 2016 2015 2014 Numerator: Net (loss)/ income attributable to ordinary shareholders for computing net income per ordinary share basic $ (6,755,603) $ 1,406,519 $ 6,828,308 Gain on valuation of convertible bonds - - 156,199 (Gain)/ loss on valuation of warrants (6,856,682) 7,906,529 - Net (loss)/ income attributable to ordinary shareholders for computing net income per ordinary share diluted $ (13,612,285) $ 9,313,048 $ 6,984,507 Denominator: Weighted average number of shares used in calculating net income per ordinary share basic 9,323,108 6,462,577 4,560,000 Weighted average number of shares used in calculating net income per ordinary share diluted 9,323,108 6,462,577 4,560,000 The 6,175,710 Net/(loss) income per ordinary share - basic $ (1.46) $ 1.44 $ 1.53 Net/(loss) income per ordinary share - diluted $ (1.46) $ 1.44 $ 1.53 |
Disposal of wholly owned subs37
Disposal of wholly owned subsidiary (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Jiangsu Zhengxin R&D [Member] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Assets and liabilities at the date of disposal: Cash and cash equivalents $ 4,154 Trade and other receivables 1,012,013 Property, plant and equipment 9,297,970 Land use right 2,850,240 Trade and other payables (13,879,652) Net Liabilities $ (715,275) Consideration received $ 10,518,189 Less: Amount required repaying to Danyang Beijiate (10,055,371) Gain on disposal $ 1,178,093 |
Jiangsu Logistics [Member] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Assets and liabilities at the date of disposal: Cash and cash equivalents $ 779 Trade and other receivables 1,019,345 Property, plant and equipment 156,722 Trade and other payable (88,917) Tax payables (18,277) Net Assets $ (1,069,652) Consideration received $ 1,505,140 Gain on disposal $ 435,488 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments [Table Text Block] | 2016 2015 Capital expenditures contracted for are analyzed as follows: Contracted but not provided for: Property, plant and equipment $ 2,644,636 $ 3,337,864 |
Organization and Business Ope39
Organization and Business Operations (Details Textual) HKD / shares in Units, $ / shares in Units, ¥ in Thousands | Jan. 08, 2016USD ($) | Jan. 08, 2016CNY (¥) | Mar. 28, 2015USD ($) | Mar. 28, 2015CNY (¥) | Sep. 19, 2014shares | Dec. 21, 2012USD ($)$ / sharesshares | May 20, 2010USD ($)shares | May 20, 2010HKDshares | Jun. 30, 2011 | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | May 26, 2011HKDHKD / sharesshares | May 20, 2010HKDHKD / shares | Jun. 15, 2007USD ($) |
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||||
Common Stock Held in Trust | $ | $ 41,600,000 | ||||||||||||||
Proceeds from Sale of Equity Method Investments | $ 1,505,140 | ¥ 10,000 | $ 10,518,189 | ¥ 64,555 | |||||||||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee, Total | $ | $ 435,488 | $ 1,178,093 | |||||||||||||
Convertible Debt [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Debt Instrument, Face Amount | $ | $ 18,000,000 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 15.00% | ||||||||||||||
Jiangsu Delta [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Sale of Stock, Price Per Share | HKD / shares | HKD 1 | ||||||||||||||
Sale of Stock, Consideration Received on Transaction | $ | $ 28,800,000 | ||||||||||||||
Sale of Stock, Consideration Received Per Transaction | HKD | HKD 10,000 | ||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 10,000 | 10,000 | |||||||||||||
Jiangsu Delta [Member] | Maximum [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Initial Registered Capital | $ | $ 42,000,000 | ||||||||||||||
Jiangsu Delta [Member] | Minimum [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Initial Registered Capital | $ | $ 28,800,000 | ||||||||||||||
Delta Advanced [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Shares Issued, Price Per Share | HKD / shares | HKD 1 | ||||||||||||||
Total Issued Subscription Price | $ 8,800,000 | HKD 68,640,000 | |||||||||||||
Premium Per Share On Share Issued | HKD / shares | HKD 6,863 | ||||||||||||||
Additional Shares Issued Through Bonus Shares | 39,990,000 | ||||||||||||||
Additional Value Issued Through Bonus Shares | HKD | HKD 39,990,000 | ||||||||||||||
British Virgin Islands Corporation [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 6,060,000 | ||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 4,560,000 | ||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,500,000 | ||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Description | Payment Shares, if any, will be issued as follows: (a) 500,000 shares shall be issued if the Company achieves Adjusted Net Income (as defined in the stock purchase agreement) of at least $8 million for the period starting July 1, 2014 and ending June 30, 2015; (b) 500,000 shares shall be issued if the Company achieves Adjusted Net Income of at least $9.2 million for the period starting July 1, 2015 and ending June 30, 2016; (c) 500,000 shares shall be issued if the Company achieves Adjusted Net Income of at least $10.6 million for the period starting July 1, 2016 and ending June 30, 2017 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 2,337,059 | ||||||||||||||
Common Class A [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | 2,720 | ||||||||||||||
Private Placement [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Proceeds from Issuance of Warrants | $ | $ 3,375,000 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,500,000 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.75 | ||||||||||||||
IPO [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 40,000,000 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | 4,000,000 | ||||||||||||||
Shares Issued, Price Per Share | (per share) | $ 10 | HKD 1 | |||||||||||||
Additional Shares Issued Through Bonus Shares | 40,000,000 | ||||||||||||||
Additional Value Issued Through Bonus Shares | HKD | HKD 40,000,000 | ||||||||||||||
IPO [Member] | Common Stock [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Shares Issued, Price Per Share | $ / shares | 10 | ||||||||||||||
IPO [Member] | Common Class A [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||||||||||||
Under Writers [Member] | Common Class A [Member] | |||||||||||||||
Organization Plan Of Business Operations Liquidity And Going Concern [Line Items] | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 136,000 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Plant and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Plant and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2016HKD | |
Accounting Policies [Line Items] | ||||
Subordinated Borrowing, Interest Rate | 5.20% | 7.11% | 7.11% | |
Cash, FDIC Insured Amount | $ 250,000 | HKD 500,000 | ||
Maximum [Member] | Use Rights [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 52 years | |||
Minimum [Member] | Use Rights [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 50 years |
Going concern (Details Textual)
Going concern (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income (Loss) Attributable to Parent, Total | $ (6,755,603) | $ 1,406,519 | $ 6,828,308 |
Retained Earnings (Accumulated Deficit), Total | $ (6,962,585) | $ (206,982) |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Customer A [Member] | Sales [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 6.46% | 15.70% |
Customer A [Member] | Trade receivables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 21.83% | 2.87% |
Customer B [Member] | Sales [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 11.61% | 7.70% |
Customer B [Member] | Trade receivables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Supplier A [Member] | Purchases [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 16.30% | 20.40% |
Supplier A [Member] | Trade payables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.29% |
Supplier B [Member] | Purchases [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 46.00% | 20.00% |
Supplier B [Member] | Trade payables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 38.70% | 0.00% |
Supplier C [Member] | Purchases [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 11.20% |
Supplier C [Member] | Trade payables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 27.76% | 11.66% |
Customer C [Member] | Sales [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 20.81% | 6.20% |
Customer C [Member] | Trade receivables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 16.89% | 9.61% |
Customer D [Member] | Sales [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 29.52% | 3.56% |
Customer D [Member] | Trade receivables [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 12.31% | 0.00% |
Trade and Other Receivables (De
Trade and Other Receivables (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 438,314 | $ 2,553,350 |
Trade receivables | 57,978,341 | 56,339,927 |
Less: Allowance for doubtful accounts | (7,852,062) | (2,521,648) |
Trade receivables - net | 50,126,279 | 53,818,279 |
Other receivables | 53,799,508 | 41,376,604 |
Prepayments and deposits | 11,864,800 | 22,626,755 |
Trade and other receivables, Total | $ 116,228,901 | $ 120,374,988 |
Trade and Other Receivables (45
Trade and Other Receivables (Details 1) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other Receivables, Net, Current, Total | $ 116,228,901 | $ 120,374,988 |
Financing Receivables Within Three Months [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other Receivables, Net, Current, Total | 11,693,858 | 54,555,488 |
Financing Receivables From Three to Six Months [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other Receivables, Net, Current, Total | 13,267,620 | 52,203,130 |
Financing Receivables Past Due Over Six Months [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other Receivables, Net, Current, Total | $ 91,267,423 | $ 13,616,370 |
Trade and Other Receivables (46
Trade and Other Receivables (Details Textual) | Jun. 30, 2014USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 6,983,127 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Finished goods | $ 1,960,063 | $ 6,213,300 |
Raw materials | 3,920,818 | 3,538,296 |
Inventories, Total | $ 5,880,881 | $ 9,751,596 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Inventory [Line Items] | |||
Inventory for Long-term Contracts or Programs, Gross | $ 44,722,232 | $ 151,232,213 | $ 116,976,856 |
Property, Plant and Equipment49
Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 75,667,390 | $ 86,438,934 |
Less: Accumulated depreciation | (24,602,825) | (21,178,480) |
Property, plant and equipment, net | 51,064,565 | 65,260,454 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 13,108,283 | 13,480,382 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 57,207,298 | 53,540,780 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 329,540 | 1,911,054 |
Plant and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 4,454,496 | 13,409,412 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 83,221 | 97,151 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross, Total | $ 484,552 | $ 4,000,155 |
Property, Plant and Equipment50
Property, Plant and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Short-term Bank Loans and Notes Payable | $ 68,313,619 | $ 73,986,211 | |
Depreciation, Total | 5,883,313 | 6,452,324 | $ 4,816,403 |
Other Long-term Debt, Noncurrent | 0 | 0 | 824,669 |
Impairment of Long-Lived Assets to be Disposed of | 2,599,980 | 0 | 0 |
Building [Member] | |||
Short-term Bank Loans and Notes Payable | $ 258,922 | $ 379,902 | $ 313,286 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Land use rights | $ 2,551,395 | $ 3,222,872 |
Less: Accumulated amortization | (425,730) | (389,039) |
Land use rights - net | $ 2,125,665 | $ 2,833,833 |
Land Use Rights (Details 1)
Land Use Rights (Details 1) | Jun. 30, 2016USD ($) |
Twelve months ending June 30, | |
2,017 | $ 49,333 |
2,018 | 49,333 |
2,019 | 49,333 |
2,020 | 49,333 |
2,021 | 49,333 |
Thereafter | 1,879,000 |
Total | $ 2,125,665 |
Land Use Rights (Details Textua
Land Use Rights (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Short-term Bank Loans and Notes Payable | $ 68,313,619 | $ 73,986,211 | |
Amortization of Leased Asset | 67,131 | 79,353 | $ 41,600 |
Use Rights [Member] | |||
Short-term Bank Loans and Notes Payable | 1,667,055 | $ 1,898,402 | $ 2,394,716 |
Land Use Rights Sold | 452,955 | ||
Proceeds from Sale of Intangible Assets | 447,366 | ||
Gain (Loss) on Disposition of Intangible Assets | $ 5,589 |
Trade and Other Payables (Detai
Trade and Other Payables (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Notes payable | $ 30,135 | $ 24,626,954 |
Trade payables | 17,869,460 | 6,658,065 |
Accruals | 432,030 | 358,747 |
Other taxes payable | 1,367,037 | 2,364,945 |
Other payables | 1,495,737 | 11,270,658 |
Accounts Payable and Accrued Liabilities, Current, Total | $ 21,194,399 | $ 45,279,369 |
Bank Borrowings (Details Textua
Bank Borrowings (Details Textual) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||
Short-term Bank Loans and Notes Payable | $ 68,313,619 | $ 73,986,211 |
Dividends Payable (Details Text
Dividends Payable (Details Textual) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 13, 2014 |
Dividends Payable [Line Items] | |||
Dividends Payable, Current | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 |
Mr. Yan Hong [Member] | |||
Dividends Payable [Line Items] | |||
Dividends Payable, Current | 392,000 | ||
Mr. Shen Lei [Member] | |||
Dividends Payable [Line Items] | |||
Dividends Payable, Current | 392,000 | ||
Mr. Chao Xin [Member] | |||
Dividends Payable [Line Items] | |||
Dividends Payable, Current | $ 34,216,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current income tax expense | $ (776,109) | $ 2,876,710 | $ 1,784,278 |
Deferred taxation | (23,939) | 848,541 | 822,200 |
Income Tax Expense (Benefit) | $ (802,627) | $ 3,729,238 | $ 2,606,479 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income (loss) before income taxes | $ (7,558,230) | $ 5,135,757 | $ 9,434,787 |
Income tax computed at statutory EIT rate (25%) | 0 | 1,283,939 | 2,358,696 |
Effect of different tax rates available to different jurisdictions | 0 | 123,830 | 23,964 |
Non-deductible expenses | 6,755,603 | 1,976,633 | 25,773 |
Change in valuation allowance and others | 0 | 344,836 | 198,046 |
Income tax expenses | $ (802,627) | $ 3,729,238 | $ 2,606,479 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current portion: | ||
Operating loss carryforward | $ 207,868 | $ 207,868 |
Accrued receivable | 3,861,729 | 525,720 |
Corporation Income Tax in accordance with the PRC State Administration of Taxation | (4,045,684) | 1,948,948 |
Net deferred tax (liabilities) assets | $ 23,913 | $ (1,215,360) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | |||
Net (loss)/ income attributable to ordinary shareholders for computing net income per ordinary share - basic | $ (6,755,603) | $ 1,406,519 | $ 6,828,308 |
Gain on valuation of convertible bonds | 0 | 0 | (156,199) |
(Gain)/ loss on valuation of warrants | (6,856,682) | 7,906,529 | 0 |
Net (loss)/ income attributable to ordinary shareholders for computing net income per ordinary share - diluted | $ (13,612,285) | $ 9,313,048 | $ 6,984,507 |
Denominator: | |||
Weighted average number of shares used in calculating net income per ordinary share - basic | 9,323,108 | 6,462,577 | 4,560,000 |
Weighted average number of shares used in calculating net income per ordinary share - diluted | 9,323,108 | 6,462,577 | 4,560,000 |
Net/(loss) income per ordinary share - basic | $ (1.46) | $ 1.44 | $ 1.53 |
Net/(loss) income per ordinary share - diluted | $ (1.46) | $ 1.44 | $ 1.53 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) | 12 Months Ended |
Jun. 30, 2016shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,175,710 |
Disposal of wholly owned subs62
Disposal of wholly owned subsidiary (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Jiangsu Logistics [Member] | |
Disposal Of Wholly Owned Subsidiary [Line Items] | |
Cash and cash equivalents | $ 779 |
Trade and other receivables | 1,019,345 |
Property, plant and equipment | 156,722 |
Trade and other payables | (88,917) |
Tax payables | (18,277) |
Net Assets | (1,069,652) |
Consideration received | 1,505,140 |
Gain on disposal | 435,488 |
Jiangsu Zhengxin R and D [Member] | |
Disposal Of Wholly Owned Subsidiary [Line Items] | |
Cash and cash equivalents | 4,154 |
Trade and other receivables | 1,012,013 |
Property, plant and equipment | 9,297,970 |
Land use right | 2,850,240 |
Trade and other payables | (13,879,652) |
Net Liabilities | (715,275) |
Consideration received | 10,518,189 |
Less: Amount required repaying to Danyang Beijiate | (10,055,371) |
Gain on disposal | $ 1,178,093 |
Disposal of wholly owned subs63
Disposal of wholly owned subsidiary (Details Textual) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 06, 2016USD ($) | Jan. 06, 2016CNY (¥) | Mar. 28, 2015USD ($) | Mar. 28, 2015CNY (¥) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Disposal Of Wholly Owned Subsidiary [Line Items] | |||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | $ 1,535,243 | $ 10,518,189 | $ 0 | ||||
Gain (Loss) on Disposition of Business | $ 435,488 | $ 1,178,093 | $ 0 | ||||
Jiangsu Zhengxin R and D [Member] | |||||||
Disposal Of Wholly Owned Subsidiary [Line Items] | |||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | $ 10,518,189 | ||||||
Gain (Loss) on Disposition of Business | ¥ | ¥ 64,555 | ||||||
Jiangsu Logistics [Member] | |||||||
Disposal Of Wholly Owned Subsidiary [Line Items] | |||||||
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | $ 1,505,140 | ¥ 10,000 | |||||
Gain (Loss) on Disposition of Business | $ 435,488 |
Warrants (Details Textual)
Warrants (Details Textual) - USD ($) | 1 Months Ended | |
Dec. 21, 2012 | Jun. 30, 2016 | |
Private Placement [Member] | ||
Stock Issued During Period, Shares, New Issues | 4,500,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.75 | |
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants | $ 3,375,000 | |
Warrant [Member] | ||
Stock Issued During Period, Shares, New Issues | 4,000,000 | |
Investment Warrant Exercise Price | $ 10 | |
Reedemable Warrant [Member] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | |
Warrant Expiration Period | 30 days | |
Share Price | $ 15 | |
Public Warrant [Member] | ||
Class of Warrant or Right, Outstanding | 6,175,570 | |
Derivative Liability, Fair Value, Gross Liability | $ 679,312 |
Commitments (Details)
Commitments (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Contracted but not provided for: | ||
Property, plant and equipment | $ 2,644,636 | $ 3,337,864 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Subsequent Event [Member] - Incentive Plan 2016 [Member] | Sep. 27, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,442,827 |
Percentage Of Shares Held Under Plan | 15.00% |