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Concentrations and Litigation
9 Months Ended
Mar. 31, 2023
Concentrations and Litigation [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 were six vendors from which the Company purchased more than 10% of its raw materials, with the total of 65.2% of its raw materials for the nine months ended March 31, 2023. Total purchase from these vendors were $45,878,286 for the nine-month period ended March 31, 2023.

 

There were six vendors from which the Company purchased more than 10% of its raw materials, with the total of 66.4% of its raw materials for the nine months ended March 31, 2022. Total purchase from these vendors were $75,165,338 for the nine-month period ended March 31, 2022.

 

There were six customers counted over 10% of the Company’s sales, with the total of 76.2% of the Company’s sales for the nine months ended March 31, 2023. Total sale to this customer was $68,038,782 for the nine-month period ended March 31, 2023.

 

There was only one customer counted over 10% of the Company’s sales, with the total of 10.1% of the Company’s sales for the nine months ended March 31, 2022. Total sale to this customer was $13,345,924 for the nine-month period ended March 31, 2022.

 

Litigation

 

There are no other actions, suits, proceedings, inquiries or investigations before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.