Loan Payables

3 Months Ended

Sep. 30, 2017

Loan Payables [Abstract]

LOAN PAYABLES

NOTE 9- LOAN PAYABLES

As of September 30, 2017, the short-term loan payables consisted of four loans which mature on dates ranging from October 25, 2017 through July 30, 2018 with interest rates ranging from 5.22% to 6.31%. Loan No. 2 in the table below is guaranteed with parent company’s credit from Jinong: Loans No. 1 and 2 below are collateralized by Tianjuyuan’s land use right and building ownership right.

No.	Payee	Loan period per agreement	Interest Rate			September 30, 2016
1	Postal Saving Bank of China - Pinggu Branch	March 24, 2017 – March 5, 2018		6.31	%	$	4,509,000
2	Bank of Beijing - Pinggu Branch	June 9, 2017-June 8, 2018		5.22	%		1,503,000
3	Beijing Agriculture Investment -small loan	August 1, 2017-July 30, 2018		5.50	%		150,300
4	Bank of China-Anhui	November 25, 2016-October 25, 2017		LPR	*		165,330
	Total					$	6,327,630

*LPR stands for Loan Prime Rate. The LPR rate is a 1-year lending rate used by commercial banks to their top grade borrowers whose credit are comparable to the interbank borrowing creditworthiness in China. The LPR rate is a variable rate and is published along with Shanghai Interbank Offer Rates daily.

Gufeng repaid RMB10,000,000 ($1,503,000) bank loan to Beijing Bank in July 2017, and borrowed RMB1,000,000 ($150,300) from Beijing Agriculture Investment in August 2017.

As of June 30, 2017, the short-term loan payables consisted of four loans which mature on dates ranging from July 28, 2017 through June 8, 2018 with interest rates ranging from 5.22% to 6.31%. Loans No. 2 to 3 in the table below are guaranteed with parent company’s credit from Jinong; Loans No. 1 and 2 below are collateralized by Tianjuyan’s land use right and building ownership right.

No.	Payee	Loan period per agreement	Interest Rate			June 30, 2017
1	Postal Saving Bank of China - Pinggu Branch	March 24, 2017 – March 5, 2018		6.31	%		4,507,080
2	Bank of Beijing - Pinggu Branch	June 9, 2017-June 8, 2018		5.22	%		1,502,360
3	Bank of Beijing - Pinggu Branch	June 28,  2016 -July 28, 2017		5.22	%	$	1,502,360
4	Bank of China-Anhui	November 25, 2016-October25, 2017		LPR	*	$	166,311
	Total					$	7,678,111

*LPR stands for Loan Prime Rate. The LPR rate is a 1-year lending rate used by commercial banks to their top grade borrowers whose credit are comparable to the interbank borrowing creditworthiness in China. The LPR rate is a variable rate and is published along with Shanghai Interbank Offer Rates daily.

The interest expense from short-term loans was $179,575 and $138,545 for the three months ended September 30, 2017 and 2016, respectively.