7 Short-term Borrowing

12 Months Ended

Jun. 30, 2015

Notes

7 Short-term Borrowing

7                SHORT-TERM BORROWING

Short-term borrowing consists of the following:

	June 30,
	2015			2014
Shijiazhuang Finance Bureau (a)		$	81,582		$	81,199
Shijiazhuang Construction Investment Group Co., Ltd (b)			5,058,086			3,247,966
Hebei Chuangyu Investment Group Co., Ltd (c)			-			1,948,780
Hebei Hengrui Sunshine Pharmacy Co., Ltd (d)			-			3,247,966
Mr. Liu Shujun (e)			-			260,519
Mr. Li Hui (f)			2,304			538,208
Shijiazhuang Red Property Management Co., Ltd (g)			-			2,073,826
Hebei Henghui Investment Management Co., Ltd (h)			3,263,282			-
TianJin Heng Xing Mirco Finance Bureau (i)			4,079,102			-
Total		$	12,484,356		$	11,398,464

(a) A non-interest bearing note payable to Shijiazhuang Finance Bureau, an agency of a local government, due on demand.

(b) A one-year loan from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The notes bear an annual interest rate of 12%. $1,957,969 was due on October 25, 2015 and $3,100,117 was due on July 12, 2015 and extended to October 27, 2015. On October 9, 2015, another extension agreement was signed. $1,957,969 was extended to April 24, 2016 and $3,100,117 was extended to April 26, 2016. The notes are secured by certain registered trademarks and renewal certificates relating to Aoxing’s Zhongtongan capsule.

(c) A four months term loan from Hebei Chuangyu Investment Group Co., Ltd. The note bears an annual interest rate of 15% and was due on November 22, 2014.

(d) A one-year term loan from Hebei Hengrui Sunshine Pharmacy Co., Ltd. The note bears an annual interest rate of 15% and was due on April 17, 2015.

(e) A one-year term loan from Mr. Liu Shujun. The note bears an annual interest rate of 15% and was due on May 21, 2015.

(f) On December 21, 2012, the Company obtained RMB2,000,000 (approximately $324,797) term loan from Mr. Li Hui. The note bears an annual interest rate of 27.6% and was due on December 31, 2014. On March 1, 2013, the Company further obtained RMB1,314,120 (approximately $213,411) term loan from Mr. Li Hui. The note bears an annual interest rate of 20% and was due on February 28, 2015. The balance of $2,304 as at June 30, 2015 represents unpaid portion of interests.

(g) A one-year term loan from Shijiazhuang Red Property Management Co., Ltd. The note bears an annual interest rate of 15% and was due on April 17, 2015.

(h) A six-month term loan from Hebei Henghui Investment Management Co., Ltd. The note bears an annual interest rate of 10% and was due on September 17, 2015. The loan was subsequently extended to October 17, 2015. On September 30, 2015, the Company repaid $656,250 of the loan and the remainder of the loan was extended to April 16, 2016.

(i) A two-month term loan from TianJin Heng Xing Mirco finance Bureau. The note bears an annual interest rate of 20.04%, due on January 21, 2015 and was extended to March 17, 2016.