3. Going Concern	9 Months Ended
Mar. 31, 2017
Notes
3. Going Concern	3 GOING CONCERN We have incurred operating losses in the past and had an accumulated deficit of $55.9-55858980 million as of March 31, 2017. In addition, we had negative working capital of $9.29,200,000 million as of March 31, 2017, Compared to the negative working capital of $10.910,900,000 million as of June 30, 2016. Currently and historically, the Company has managed to operate the business with negative net working capital. The Company has funded its accumulated deficits with both equity financing and debt financing. As a result of short-term bank loans used to finance part of the accumulated deficit, the Company has negative working capital. The Company is able to operate with negative net working capital because of loans from banks and related parties that are rolled-over or replaced as needed. The Company believes future positive operating cash flows, continued support from related parties, and the ability to continue to roll over short-term debt, taken together, provide adequate resources to fund ongoing operations in the foreseeable future. The Company may also seek equity financing to replace both short-term and long-term debts. The Company believes that the market demand for its main product will recover in the near term and the sales from several new products in future years will produce substantial positive cash flow. Management of the Company believes that the Company's large negative working capital will continue to improve going forward. Management expects the improvement to come from improved operating results, by extending short term into longer term loans, and by selling equity and converting debt to equity. Management anticipates that these improvements will enable the Company to reduce current high interest expenses and fund on-going operations. The management of the Company will continue to address this situation in order for the Company to achieve a sound financial position going forward.

3. Going Concern

9 Months Ended

Mar. 31, 2017

3 GOING CONCERN

We have incurred operating losses in the past and had an accumulated deficit of $55.9-55858980 million as of March 31, 2017. In addition, we had negative working capital of $9.29,200,000 million as of March 31, 2017, Compared to the negative working capital of $10.910,900,000 million as of June 30, 2016. Currently and historically, the Company has managed to operate the business with negative net working capital. The Company has funded its accumulated deficits with both equity financing and debt financing. As a result of short-term bank loans used to finance part of the accumulated deficit, the Company has negative working capital.

The Company is able to operate with negative net working capital because of loans from banks and related parties that are rolled-over or replaced as needed. The Company believes future positive operating cash flows, continued support from related parties, and the ability to continue to roll over short-term debt, taken together, provide adequate resources to fund ongoing operations in the foreseeable future. The Company may also seek equity financing to replace both short-term and long-term debts. The Company believes that the market demand for its main product will recover in the near term and the sales from several new products in future years will produce substantial positive cash flow.

Management of the Company believes that the Company's large negative working capital will continue to improve going forward. Management expects the improvement to come from improved operating results, by extending short term into longer term loans, and by selling equity and converting debt to equity. Management anticipates that these improvements will enable the Company to reduce current high interest expenses and fund on-going operations. The management of the Company will continue to address this situation in order for the Company to achieve a sound financial position going forward.