Segment Reporting

12 Months Ended

Jun. 30, 2017

NOTE 15 – SEGMENT REPORTING

As of June 30, 2017, the Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and the sales VIEs. Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment.

	Years Ended June 30,
Revenues from unaffiliated customers:	2017			2016
Jinong	$	106,642,032		$	125,716,937
Gufeng		104,446,239			134,661,420
Yuxing		8,517,231			8,406,663
Sales VIEs		65,607,538			0
Consolidated	$	285,213,040		$	268,785,020

Operating income :
Jinong	$	22,562,310		$	22,942,976
Gufeng		8,286,761			13,952,983
Yuxing		(2,376,007	)		1,464,728
Sales VIEs		5,869,291			0
Reconciling item (1)		0			0
Reconciling item (2)		(1,082,505	)		(1,648,240	)
Reconciling item (2) --stock compensation		(1,282,079	)		(4,120,528	)
Consolidated	$	31,977,771		$	32,591,919

Net income:
Jinong	$	18,699,889		$	19,637,155
Gufeng		6,264,392			9,364,364
Yuxing		(2,375,961	)		1,471,412
Sales VIEs		4,925,927			-
Reconciling item (1)		15			30
Reconciling item (2)		(2,364,598	)		(5,768,768	)
Consolidated	$	25,152,153		$	24,704,193

Depreciation and Amortization:
Jinong	$	13,358,370		$	35,924,393
Gufeng		2,302,047			2,920,960
Yuxing		1,366,840			1,465,836
Sales VIEs		380,863			-
Consolidated	$	17,408,120		$	40,311,189

Interest expense:
Gufeng		290,126			995,959
Gufeng		251,064			-
Sales VIEs		8,460
Consolidated	$	549,650		$	995,959

Capital Expenditure:
Jinong	$	9,582		$	7,894
Gufeng		12,273			3,239
Yuxing		6,210			8,059
Sales VIEs		14,217			-
Consolidated	$	42,283		$	19,192

	As of
	June 30,			June 30,
	2017			2016
Identifiable assets:
Jinong	$	213,355,900		$	198,599,977
Gufeng		156,648,924			149,891,328
Yuxing		40,965,345			45,448,157
Sales VIEs		45,063,273			24,675,497

Reconciling item (1)		142,919			170,444
Reconciling item (2)		(2,879	)		(2,876	)
Consolidated	$	456,173,481		$	418,782,527

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

Total revenues from exported products currently accounted for less than 1% of the Company’s total fertilizer revenues for the years ended June 30, 2017 and 2016, respectively.