INTANGIBLE ASSETS

9 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 8 - INTANGIBLE ASSETS

Intangible assets consist of the following as of March 31, 2012 and June 30, 2011:

	March 31,		June 30,
	2012		2011
Land use rights, net	$	12,017,812	$	11,814,149
Technology patent, net		1,031,588		1,188,969
Customer relationships, net		8,488,838		9,045,858
Non-compete agreement		135,821		163,363
Trademarks		6,319,106		6,296,290
Total	$	27,993,165	$	28,508,629

LAND USE RIGHTS

On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB 73,184,895 (or $11,585,169). The intangible asset is being amortized over the grant period of 50 years.

On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB 1,045,950 (or $165,574). The intangible asset is being amortized over the grant period of 50 years.

On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land & Resources Bureau of Yanling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB 7,285,099 (or $1,153,230). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consist of the following as of March 31, 2012 and June 30, 2011:

	March 31,			June 30,
	2012			2011
Land use rights	$	12,903,974		$	12,452,801
Less: accumulated amortization		(886,162	)		(638,652	)
Total land use rights, net	$	12,017,812		$	11,814,149

TECHNOLOGY PATENT

On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $930,023). The intangible asset is being amortized over the patent period of 10 years. On November 24, 2010, Jinong renewed this technology patent for another 10-year term.

The technology know-how consisted of the following as of March 31, 2012 and June 30, 2011:

	March 31,			June 30,
	2012			2011
Technology know-how	$	2,386,383		$	2,332,113
Less: accumulated amortization		(1,354,795	)		(1,143,144	)
Total technology know-how, net	$	1,031,588		$	1,188,969

CUSTOMER RELATIONSHIP

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired customer relationships was estimated to be RMB 65,000,000 (or $10,289,500) and is amortized over the remaining useful life of ten years.

	March 31,			June 30,
	2012			2011
Customer relationships	$	10,289,500		$	10,096,418
Less: accumulated amortization		(1,800,662	)		(1,050,560	)
Total customer relationships, net	$	8,488,838		$	9,045,858

NON-COMPETE AGREEMENT

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired non-compete agreement was estimated to be RMB1,320,000 (or $208,956) and is amortized over the remaining useful life of five years using the straight line method.

	March 31,			June 30,
	2012			2011
Non-compete agreement	$	208,956		$	204,204
Less: accumulated amortization		(73,135	)		(40,841	)
Total non-compete agreement, net	$	135,821		$	163,363

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be $6,319,106 and is subject to an annual impairment test.

Total amortization expenses of intangible assets for the three months ended March 31, 2012 and 2011 amounted to $507,250 and $305,054, respectively. Total amortization expenses of intangible assets for the nine months ended March 31, 2012 and 2011 amounted to $1,170,692 and $786,007, respectively.

AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next five (5) twelve-month periods-ended March 31, are as follows:

March 31, 2013	$	1,664,550
March 31, 2014		1,664,550
March 31, 2015		1,664,550
March 31, 2016		1,664,550
March 31, 2017		1,664,550