Description of Business and Organization (Tables)

9 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of consolidated financial statements activities

Entity Name	Background	Ownership
Renovation	● Incorporated in Hong Kong SAR on September 2, 2008	100%
Jiuxin Management	● Established in the PRC on October 14, 2008	100%
	● Deemed a wholly foreign owned enterprise ("WFOE") under PRC law
	● Registered capital of $14.5 million fully paid
Shouantang Technology	● Established in the PRC on July 16, 2010 by Renovation with registered capital of $20 million	100%
	● Registered capital requirement reduced by the SAIC to $11 million in July 2012 and is fully paid
	● Deemed a WFOE under PRC law
	● Invests and finances the working capital of Quannuo Technology
Qianhong Agriculture	● Established in the PRC on August 10, 2010 by Jiuxin Management	100%
	● Registered capital of RMB 10 million fully paid
	● Carries out herb farming business
Jiuzhou Pharmacy (1)	● Established in the PRC on September 9, 2003	VIE by contractual arrangements (2)
	● Registered capital of RMB 5 million fully paid
	● Operates the "Jiuzhou Grand Pharmacy" stores in Hangzhou
Jiuzhou Clinic (1)	● Established in the PRC as a general partnership on October 10, 2003	VIE by contractual arrangements (2)
	● Operates a medical clinic adjacent to one of Jiuzhou Pharmacy's  stores
Jiuzhou Service (1)	● Established in the PRC on November 2, 2005	VIE by contractual arrangements (2)
	● Registered capital of RMB 500,000 fully paid
	● Operates a medical clinic adjacent to one of Jiuzhou Pharmacy's stores
Jiuxin Medicine	● Established in PRC on December 31, 2003 ● Acquired by Jiuzhou Pharmacy in August 2011	VIE by contractual arrangements as a wholly-owned subsidiary of Jiuzhou Pharmacy (2)
	● 10% of shares sold
	● Registered capital of RMB 10 million fully paid
	● Carries out pharmaceutical distribution services
Jiutong Medical	● Established in the PRC on December 20, 2011 by Renovation	100%
	● Registered capital of $2.6 million fully paid
	● Currently has no operation

Entity Name	Background	Ownership
Shouantang Bio	● Established in the PRC in October, 2014 by Shouantang Technology	100%
	● 100% held by Shouantang Technology
	● Registered capital of RMB 1,000,000 fully paid
	● Sells nutritional supplements under its own brand name
Jiuyi Technology	● Established in the PRC on September 10, 2015	100%
	● 100% held by Renovation
	● Technical support to online pharmacy
Kahamadi Bio	● Established in the PRC in May 2016	49%
	● 49% held by Shouantang Bio
	● Registered capital of RMB 10 million
	● Develop brand name for nutritional supplements
Lin'An Jiuzhou	● Established in the PRC in March 31, 2017	100%
	● 100% held by Jiuxin Management
	● Registered capital of RMB 5 million
	● Explore retail pharmacy market in Lin'An City
Linjia Medical	● Established in the PRC in September 27, 2017 ● 51% held by Jiuzhou Pharmacy	VIE by contractual arrangements as a controlled subsidiary of Jiuzhou Pharmacy (2)
	● Registered capital of RMB 20 million
	● Operates local clinics
Ayi Health	● Established in the PRC in March 29, 2019 ● 51% held by Jiuzhou Pharmacy	VIE by contractual arrangements as a controlled subsidiary of Jiuzhou Pharmacy (2)
	● Registered capital of RMB 10 million
	● Provide technical Support for medial service

(1)

Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service had been under the common control of Mr. Lei Liu, Mr. Chong'an Jin and Ms. Li Qi, (the three shareholders, collectively, the "Owners") since their respective establishment dates, pursuant to agreements among the Owners to vote their interests in concert as memorialized in a voting rights agreement. Based on such voting agreement, the Company has determined that common control exists among these three companies. The Owners have operated these three companies in conjunction with one another since each company's respective establishment date. Jiuxin Medicine is also deemed under the common control of the Owners as a subsidiary of Jiuzhou Pharmacy.

(2)

To comply with certain foreign ownership restrictions of pharmacy and medical clinic operators, Jiuxin Management entered into a series of contractual arrangements with Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service on August 1, 2009. These contractual arrangements are comprised of five agreements: a consulting services agreement, operating agreement, equity pledge agreement, voting rights agreement and option agreement. Because such agreements obligate Jiuxin Management to absorb all of the risks of loss from the activities of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, and enable the Company (through Jiuxin Management) to receive all of their expected residual returns, the Company accounts for each of the three companies (as well as subsidiaries of Jiuzhou Pharmacy) as a variable interest entity ("VIE") under the accounting standards of the Financial Accounting Standards Board ("FASB"). Accordingly, the financial statements of Jiuzhou Pharmacy, Jiuzhou Clinic and Jiuzhou Service, as well as the subsidiary under the control of Jiuzhou Pharmacy, Jiuxin Medicine and Shouantang Bio are consolidated into the financial statements of the Company.