Note 16. RELATED PARTY TRANSACTIONS

As of March 31, 2017 and June 30, 2016, the outstanding amounts due from related parties consist of the following:

	March 31,		June 30,
	2017		2016

Tianjin Zhiyuan Investment Group Co., Ltd.	$	1,195,130	$	1,622,519
Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd.		3,211,056		-
Total	$	4,406,186	$	1,622,519

In June 2013, the Company signed a five-year global logistic service agreement with Tianjin Zhiyuan 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 potential commodities loss during the transportation process. As a result of the inland transportation management services provided to Zhiyuan, the Company generated revenue of $762,777 (28% of the Company’s total revenue) and $556,948 (47% of the Company’s total revenue) for the three months ended March 31, 2017 and 2016, respectively. The Company generated revenue of $2,229,180 (33% of the Company’s total revenue) and $1,916,510 (35% of the Company’s total revenue) for the nine months ended March 31, 2017 and 2016, respectively. The amount due from Zhiyuan Investment Group at June 30, 2016 was $1,622,519. During the nine months ended March 31, 2017, the Company continued to provide inland transportation management services to Zhiyuan and also collected approximately $2.7 million from Zhiyuan to reduce the outstanding accounts receivable. As of March 31, 2017, the amount due from Zhiyuan was $1,195,130, the aging of which is less than 180 days.

On February 18, 2017, Trans Pacific Beijing (subsidiary) and Sino China (VIE) (collectively, the “Seller”), a subsidiary and VIE of the Company, entered into a Cooperative Transportation Agreement (the “Agreement”) with Zhiyuan International Investment & Holding Group (Hong Kong) Co., Ltd. (the “Buyer” or “Zhiyuan Hong Kong”). The Buyer is also invested by Mr. Zhang, the largest shareholder of the Company. Pursuant to the Agreement, the Buyer in joint entity with China Minmetals Corporation and China Metallurgical Group Corporation acts as the general designer, general equipment provider and general service contractor in the upgrade and renovation project of Perwaja Steel Indonesia which locate in Malaysia (the “Project”). The Seller shall be appointed as general agent to handle all related logistics and transportation occurring in the Project, ranging from equipment manufacturing, assembling, processing to installment as referenced in the Agreement. The Seller agrees to make certain advance transportation payments during the Project on the basis of current practice in China transportation agency industry; while the Buyer agrees to repay the advances to the Seller at any time as requested and instructed by the Seller, to satisfy the security repayment test in light of the Seller’s listed company profile. The Seller is contracted to provide high-quality services including detailed transportation plan design, plan execution and necessary supervision of the execution at the Buyer’s demand, and shall receive from the Buyer 1% - 1.25% of the total transportation expense incurred in the Project as commission for its professional design and execution of transportation plan as the general agent. As of March 31, 2017, the amount due from Zhiyuan Hong Kong was $3,211,056 (see Note 1).

As of March 31, 2017 and June 30, 2016, the outstanding amounts due to related parties consist of the following:

	March 31,		June 30,
	2017		2016

ACH Logistic Inc.	$	104,779	$	-
Jetta Global Logistics Inc.		52,062		-
Total	$	156,841	$	-

In December 2016, the Company entered into a joint venture agreement with Jetta Global to form ACH Trucking Center to provide short-haul trucking transportation and logistics services to customers located in the New York and New Jersey areas. ACH Logistic Inc. (ACH Logistic) and Jetta Global are invested by the same owner and both of the companies provided freight logistic service and container trucking service to the Company. For the three and nine months ended March 31, 2017, ACH Logistic and Jetta Global provided services in the amount of $146,879 and $61,062 to the Company, respectively. As of March 31, 2017, the amount due to ACH Logistic and Jetta Global was $104,779 and $52,062, respectively.