SHORT-TERM BORROWINGS DUE TO RELATED PARTIES

3 Months Ended

Sep. 30, 2015

NOTE 12. SHORT-TERM BORROWINGS DUE TO RELATED PARTIES

Short-term borrowings due to related	June 30, 2015		September 30, 2015		September 30, 2015
parties:	RMB		RMB		U.S. Dollars
Short-term borrowing from a Founder, 7.2% annual interest, due on October 20, 2015(A)		6,013,200		1,800,000		283,295
Short-term borrowing from a Founder, 6.0% annual interest, due on October 2, 2015 (B)		3,403,431		914		144
Short-term borrowing from a Founder, 5.13% annual interest, due on October 12, 2015.(C)		1,600,274		1,604,800		252,573
Short-term borrowing from a Founder's family member, no interest, due on various dates		5,700,000		4,200,000		661,022
Short-term borrowing from a Founder, 7.2% annual interest, due on September 25, 2016		-		1,800,000		283,295
Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co. Ltd., no interest, due on November 14, 2015		200,000		-		-
Total short-term borrowings due to related parties	¥	16,916,905	¥	9,405,714	$	1,480,329

(A)

On October 20, 2015, ¥ 1,800,000 ($283,295) was paid back.

(B)

On September 30, 2015, the principle of ¥3,400,000 ($535,113) was paid back, and the interest was paid as scheduled on October 2, 2015.

(C)

On October 12, 2015, the Company repaid ¥1,600,000 ($251,818) of short-term borrowing with an interest of ¥5,749 ($905).

Interest expense for short-term borrowings due to related parties was ¥84,333 and ¥171,448 ($26,984) for the three months ended September 30, 2014 and 2015, respectively.