CONCENTRATIONS AND LITIGATION

9 Months Ended

Mar. 31, 2016

Concentration and Litigation [Text Block]

NOTE 11 –CONCENTRATIONS AND LITIGATION

Market Concentration

All of the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

Vendor and Customer Concentration

There was one vendor from which the Company purchased 14.2% of its raw materials for the three months ended March 31, 2016. Total purchase from this vendor amounted to $11,174,000 as of March 31, 2016.

There were three vendors from which the Company purchased 17.0%, 12.4% and 11.6% of its raw materials for the three months ended March 31, 2015. Total purchase from these three venders amounted to $9,322,106 as of March 31, 2015.

There was one customer accounted for 37.8% of the Company’s sales for the three months ended March 31, 2016.

There was one customer accounted over 28.0% of the total sales of fertilizer products as of three months ended March 31, 2015.