RELATED PARTY TRANSACTIONS

3 Months Ended

Sep. 30, 2016

Note 15. RELATED PARTY TRANSACTIONS

In June 2013, the Company signed a five-year global logistic service agreement with TianJin Zhi Yuan Investment Group Co., Ltd. (the “Zhiyuan Investment Group”) and TEWOO Chemical & Light Industry Zhiyuan Trade Co., Ltd. (together with Zhiyuan Investment Group, “Zhiyuan”). 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 $857,635 (44% of the Company’s total revenue) and $753,597 (28% of the Company’s total revenue) for the three months ended September 30, 2016 and 2015, respectively. The amount due from Zhiyuan Investment Group at June 30, 2016 was $1,622,519. During the three months ended September 30, 2016, the Company continued to provide inland transportation management services to Zhiyuan and also collected approximately $1.4 million from Zhiyuan to reduce the outstanding accounts receivable. As of September 30, 2016, the amount due from Zhiyuan was $1,117,695. Management expects the receivable will be substantially collected in the second half of fiscal year 2017.