Segment Reporting

12 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

Note 18. SEGMENT REPORTING

ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in consolidated financial statements for detailing the Company’s business segments. 

The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. The Company has determined that it has four operating segments: (1) shipping agency and management services; (2) inland transportation management services; (3) freight logistics services and (4) container trucking services.

The following tables present summary information by segment for the years ended June 30, 2020 and 2019, respectively:

	For the Year Ended June 30, 2020
	Shipping Agency and Management Services			Inland Transportation Management Services			Freight Logistics Services			Container Trucking Services			Total
Revenues
- Related party	$	-		$	-		$	-		$	-		$	-
- Third parties	$	2,105,651		$	-		$	4,368,596	*	$	61,709		$	6,535,956
Total revenues	$	2,105,651		$	-		$	4,368,596		$	61,709		$	6,535,956
Cost of revenues	$	827,690		$	-		$	2,795,859	*	$	55,314		$	3,678,863
Gross profit	$	1,277,961		$	-		$	1,572,737		$	6,395		$	2,857,093
Depreciation and amortization	$	340,421		$	-		$	7,684		$	54,189		$	402,294
Total capital expenditures	$	6,984		$	-		$	-		$	-		$	6,984
Gross margin%		60.7	%		-	%		36.0	%		10.4	%		43.7	%

* For certain freight logistics contracts that the Company entered into with customers starting from first quarter of fiscal year 2020, the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, revenues related to these contracts are presented net of related costs. For the year ended June 30, 2020, gross revenues and gross cost of revenues related to these contracts amounted to approximately $25.8 million and $24.3 million, respectively.

	For the Year Ended June 30, 2019
	Shipping Agency Services			Inland Transportation Management Services			Freight Logistics Services			Container Trucking Services			Total
Revenues
- Related party	$	-		$	433,383		$	-		$	-		$	433,383
- Third parties	$	2,093,680		$	1,036,416		$	37,725,136		$	482,432		$	41,337,664
Total revenues	$	2,093,680		$	1,469,799		$	37,725,136		$	482,432		$	41,771,047
Cost of revenues	$	1,894,332		$	128,624		$	33,556,109		$	427,445		$	36,006,510
Gross profit	$	199,348		$	1,341,175		$	4,169,027		$	54,987		$	5,764,537
Depreciation and amortization	$	-		$	110,821		$	1,902		$	18,197		$	130,920
Total capital expenditures	$	-		$	-		$	125,817		$	17,675		$	143,492
Gross margin%		9.5	%		91.2	%		11.1	%		11.4	%		13.8	%

Total assets as of:

	June 30,		June 30,
	2020		2019
Shipping Agency and Management Services	$	2,531,074	$	3,549,093
Freight Logistic Services		3,176,165		17,017,695
Container Trucking Services		30,863		32,215
Total Assets	$	5,738,102	$	20,599,003

The Company’s operations are primarily based in the PRC, U.S, and Hong Kong, where the Company derives all of their revenues. Management also review consolidated financial results by business locations.

Disaggregated information of revenues by geographic locations are as follows:

	June 30,		June 30,
	2020		2019
PRC	$	4,368,596	$	37,755,310
U.S.		2,167,360		1,922,057
Hong Kong		-		2,093,680
Total revenues	$	6,535,956	$	41,771,047