RELATED PARTY TRANSACTIONS

12 Months Ended

Jun. 30, 2016

Note 18. RELATED PARTY TRANSACTIONS

In June 2013, the Company signed a five-year global logistic service agreement with TEWOO Chemical & Light Industry Zhiyuan Trade Co., Ltd. and TianJin Zhi Yuan Investment Group Co., Ltd. (together, “Zhiyuan”). TianJin Zhi Yuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) is owned by Mr. Zhang, the largest shareholder of the Company. In September 2013, the Company executed an inland transportation management service contract with the Zhiyuan Investment Group whereby it would provide certain advisory services and help control its potential commodities loss during the transportation process. As a result of the inland transportation management services provided to Zhiyuan, the Company generated revenue of $2,269,346 (31% of the Company’s total revenue in 2016) and $2,545,009 (22.5% of the Company’s total revenue in 2015) for the years ended June 30, 2016 and 2015, respectively. The net amount due from Zhiyuan Investment Group was $2,609,831 at June 30, 2015. During the year ended June 30, 2016, the Company continued to provide inland transportation management services to Zhiyuan and also collected approximately $3.3 million (RMB 22.2 million) from Zhiyuan to reduce the outstanding accounts receivable. As of June 30, 2016, the net amount due from Zhiyuan was $1,622,519. The Company subsequently collected back RMB 2.28 million (equivalent to $396,923) from Zhiyuan in August 2016. Management expects the remaining receivable will be substantially collected in the second half of the calendar year of 2016.

At June 30, 2015, the Company was owed $174,759 from Sino-G Trading Inc. (“Sino-G”), an entity that is owned by the former brother-in-law of the Company’s CEO. Sino-G previously served as a funds transfer agent for the Company’s services in Tianjin, PRC. During the fourth quarter of the fiscal year 2016, the Company fully collected the balance from Sino-G.