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Concentrations and Litigation
9 Months Ended
Mar. 31, 2021
Risks and Uncertainties [Abstract]  
CONCENTRATIONS AND LITIGATION

NOTE 14 – CONCENTRATIONS AND LITIGATION


Market Concentration


All 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 only one vendor from which the Company purchased more than 10% of its raw materials, with the total of 11.2% of its raw materials for the Nine Months Ended March 31, 2021. Total purchase from this vendor is $13,506,092 for the nine-month period ended March 31, 2021.


None of the vendors accounted over 10% of the Company’s purchase of raw materials and supplies for the nine months ended March 31, 2020.


No customer accounted for over 10% of the Company’s sales for the Nine Months Ended March 31, 2021.


There were two customers, from which the Company sold 10.6% and 10.4% of its products during the year ended March 31, 2020. Total sales from these two customers was amounted to $33,957,707 as March 31, 2020. 


Litigation


On June 5, 2020, an individual filed suit pro se (as in, representing oneself without an attorney) in the Southern District of Florida federal court alleging violations of the Securities Exchange Act. The Company believes the action is without merit and vigorously opposed it. The company has moved to dismiss the litigation and for attorney’s fees from the plaintiff. The motions are pending.