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Condensed Financial Information of the Parent Company

6 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

17. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

The Company performed a test on the restricted net assets of its consolidated subsidiaries, VIE, and VIE’s subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial information for the parent company only.

The subsidiaries did not pay any dividend to the Company for the years presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company.

As of December 31, 2021, the Company did not have significant capital commitments and other significant commitments, or guarantees, except for those which have been separately disclosed in the consolidated financial statements.

PARENT COMPANY BALANCE SHEETS

		As of December 31,				As of June 30,
		2021				2021
ASSETS
Cash		$	25,256,901			$	4,260
Prepaid expenses and other current assets			1,207,417				679,266
Due from related party			71				-
TOTAL CURRENT ASSETS			26,464,389				683,526
Investments in subsidiaries, consolidated VIE and VIE’s subsidiaries			27,390,107				18,869,579
TOTAL ASSETS			53,854,496				19,553,105

LIABILITIES AND SHAREHOLDERS’ EQUITY
Other Payable		$	70,000			$	-
Due to a related party			-				225,000
TOTAL CURRENT LIABILITIES		$	70,000			$	225,000
TOTAL LIABILITIES			70,000				225,000

SHAREHOLDERS’ EQUITY
Ordinary shares (par value $0.001 per share; 44,000,000 Class A ordinary shares authorized as of June 30, 2020 and 2021; 11,021,834 and 12,086,923 Class A ordinary shares issued and outstanding as of June 30, 2020 and 2021 respectively; 6,000,000 Class B ordinary shares authorized, 5,763,077 Class B ordinary shares issued and outstanding as of June 30 2020 and 2021 respectively) *			24,050				17,850
Subscription receivable			(15,441	)			(15,441	)
Additional paid-in capital			40,706,356				6,643,118
Retained earnings			12,186,391				11,739,756
Accumulated other comprehensive (loss) income			883,140				942,822
TOTAL SHAREHOLDERS’ EQUITY			53,784,496				19,328,105
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	53,714,496			$	19,553,105

*	Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13).

PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME

		For the Six Months Ended December 31,
		2021				2020

General and administrative expenses		$	1,052,619			$	234,000
Financial expenses			(43	)			911
Loss from operation			1,052,576				234,911
Other income:
Share of income of subsidiaries, consolidated VIE and VIE’s subsidiaries			1,499,211				2,437,070

Income before income tax expense			446,635				2,202,159
Income tax expense							-
Net income		$	446,635			$	2,202,159
Other Comprehensive loss
Foreign currency translation (loss) income			(59,682	)			1,147,991
Total comprehensive income		$	386,953			$	3,350,150

PARENT COMPANY STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

		Ordinary shares								Subscription				Additional paid-in				Retained				Accumulated other comprehensive				Total Shareholders’
		Shares*				Amount				receivable				capital				earnings				(loss) income				Equity

Balance as of June 30, 2019			13,425,911			$	13,426			$	(13,426	)		$	2,142,518			$	5,036,393			$	(141,346	)		$	7,037,565
Issuance of additional shares			3,359,000				3,359				(2,015	)			3,671,227				-				-				3,672,571
Net income			-				-				-				-				2,435,821				-				2,435,821
Foreign currency translation adjustment			-				-				-				-				-				(226,235	)			(226,235	)
Balance as of June 30, 2020			16,784,911			$	16,785			$	(15,441	)		$	5,813,745			$	7,472,214			$	(367,581	)		$	12,919,722
Acquisition of Non-controlling interests			1,065,089				1,065				-				829,373				-				(25,354	)			805,084
Net income for the period			-				-				-				-				4,267,542				-				4,267,542
Foreign currency translation adjustment			-				-				-				-				-				1,335,757				1,335,757
Balance as of June 30, 2021			17,850,000			$	17,850			$	(15,441	)		$	6,643,118			$	11,739,756			$	942,822			$	19,328,105
Acquisition of Non-controlling interests			6,200,000				6,200				-				34,063,238				-				-				34,069,438
Net income for the period			-				-				-				-				446,635				-				446,635
Foreign currency translation adjustment			-				-				-				-				-				(59,682	)			(59,682	)
Balance as of December 31, 2021			24,050,000			$	24,050			$	(15,411	)		$	40,706,356			$	12,186,391			$	883,140			$	53,784,496

*	Certain shares are presented on a retroactive basis to reflect the reorganization (see Note 13).

PARENT COMPANY STATEMENTS OF CASH FLOWS

		For the Six Months Ended December 31,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities		$	(1,207,576	)			(204,982	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in a subsidiary			(7,081,000	)			(600,000	)
Net cash used in investing activities			(7,081,000	)			(600,000	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Contribution from shareholders			34,069,438				-
Payment for deferred offering costs			(528,221	)			(247,681	)
Net cash provided by (used in) financing activities			33,541,217				(247,681	)

Effect of exchange rate changes							-

Net increase (decrease) in cash			25,252,641				(1,052,663	)
Cash at beginning of period			4,260				1,139,229
Cash at end of period		$	25,256,901				86,566