VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Dec. 31, 2019

Schedule of information regarding consolidated VIEs

Summary information regarding consolidated VIEs is as follows:


	June 30, 2019		December 31, 2019		December 31, 2019
	RMB		RMB		U.S. Dollars
ASSETS
Current Assets
Notes receivable	¥	444,763	¥	10,119,685	$	1,452,309
Trade accounts receivable, net		3,073,680		4,060,506		582,736
Trade accounts receivable- related party, net		68,535,282		63,063,443		9,050,441
Inventories, net		3,409,912		3,409,912		489,368
Other receivables, net		1,270,523		1,796,411		257,809
Loans to third parties		5,496,813		4,610,732		661,701
Purchase advances, net		4,960,000		—		—
Contract assets, net		1,343,576		156,550		22,467
Prepaid expenses		4,633,940		14,604,897		2,095,996
Prepaid expenses - related parties		—		65,920		9,460
Notes receivable		217,600		—		—
Total current assets		93,386,089		101,888,056		14,622,287

Property and equipment, net		3,661,321		3,267,226		468,890
Construction in progress		21,524,994		23,143,654		3,321,421
Land use right, net		1,307,887		1,294,267		185,744
Investment in unconsolidated entity		4,000,000		4,000,000		574,053
Long-term other receivables, net		440,015		23,922		3,433
Prepayments for construction in progress		1,144,098		1,059,404		152,039
Right of use assets		—		532,491		76,420
Total Assets	¥	125,464,404	¥	135,209,020	$	19,404,287

LIABILITIES
Short-term bank loan	¥	2,500,000	¥	2,500,000	$	2,107,973
Trade accounts payable		14,089,293		14,688,353		232,245
Other payables		946,941		1,618,283		232,245
Other payable- related parties		1,532,662		2,838,598		407,376
Advance from customers		120,000		2,024,753		290,579
Accrued payroll and employees' welfare		988,785		1,798,811		258,153
Taxes payable		2,180,805		2,831,679		406,383
Short-term borrowings		1,081,096		—		358,783
Short-term borrowings - related parties		9,010,525		11,931,310		1,712,301
Long-term borrowings - related party - current portion		780,797		813,334		116,724
Operating lease liabilities - current		—		640,491		91,919
Total current liabilities		33,230,904		41,685,612		6,214,681

Long-term borrowings - related party		8,196,204		7,796,782		1,118,942
Total Liabilities	¥	41,427,108	¥	49,482,394	$	7,333,623

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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