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Related party transactions and balances | 12 Months Ended
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Jun. 30, 2019
Related party transactions and balances |
Related party transactions and balances | Note 9 – Related party transactions and balances Related party transactions a. Revenues – related parties:
|  |  |  | For the Year |  | For the Year |  | For the Year
|  |  |  | Ended June 30, |  | Ended June 30, |  | Ended June 30,
Name of related party |  | Relationship |  | 2019 |  | 2018 |  | 2017
Chongqing Mingwen Food Co., Ltd. (“CQ Mingwen”) |  | President is the daughter-in-law of the Company’s Chief Executive Officer (“CEO”) |  | $ | — |  | $ | 36,091 |  | $ | 66,525
Chongqing Pengmei Supermarket Co., Ltd (“CQ Pengmei”) |  | Indirectly owned by CEO and CEO’s spouse |  |  | — |  |  | 334,147 |  |  | —
|  |  |  | $ | — |  | $ | 370,238 |  | $ | 66,525
Related party balances a. Accounts receivable – related party:
Name of related party |  | Relationship |  | June 30, 2019 |  | June 30, 2018 |
CQ Pengmei |  | Significantly influenced by Penglin |  | $ | — |  | $ | 56,955 | (1)
| (1) |  | On July 2, 2018, the Company acquired CQ Pengmei and the balance was eliminated upon acquisition subsequent to July 2, 2018.
b. Customer deposit – related party:
Name of related party |  | Relationship |  | June 30, 2019 |  | June 30, 2018
CQ Mingwen |  | Significantly influenced by Penglin |  | $ | 29,643 |  | $ | 31,482
c. Other receivables – related parties: Other receivables - related parties are those nontrade receivables arising from transactions between the Company and certain related parties, such as loans to these related parties. These loans are unsecured, non-interest bearing and due on demand.
Name of related party |  | Relationship |  | June 30, 2019 |  | June 30, 2018 |
CQ Pengmei |  | Significantly influenced by Penglin |  | $ | — |  | $ | 373,065 | (2)
(2) On July 2, 2018, the Company acquired CQ Pengmei and the balance was eliminated upon acquisition subsequent to July 2, 2018. d. Other payables – related parties: Other payables – related parties are those nontrade payables arising from transactions between the Company and certain related parties, such as advanced made by the related party on behalf of the Company. This advance is unsecured and non-interest bearing. Current payables are due on demand.
Name of related party |  | Name of related party |  | June 30, 2019 |  | June 30, 2018
Xia Wang |  | Chief Financial Officer |  | $ | 83,619 |  | $ | 30,015
Zeshu Dai |  | CEO |  |  | 659,420 |  |  | 486,418
Penglin Wang |  | Son of the CEO |  |  | 162,047 |  |  | 33,425
Zili Zhang |  | CEO of CQ Pengmei |  |  | 429,448 |  |  | —
|  |  |  | $ | 1,334,534 |  | $ | 549,858
e. Short-term loans – related parties: Short-term loans – related parties are those short-term loans from advances made by certain related parties for the daily operations needs of the Company. These loans are unsecured and interest bearing.
|  |  |  |  |  |  | Weighted |  |  |  |  |  |  |  |
|  |  |  |  |  |  | average |  | Collateral/ |  |  |  |  |  |
Short term loans |  | Relationship |  | Maturities |  |  | interest rate |  | Guarantee |  | June 30, 2019 |  | June 30, 2018
Xia Wang |  | Chief Financial Officer |  | February 20, 2020 |  |  | 9.60 | % | None |  |  | 104,852 |  |  | —
Penglin Wang |  | Son of CEO |  | December 27, 2019 |  |  | 9.60 | % | None |  |  | 224,268 |  |  | —
Total |  |  |  |  |  |  |  |  |  |  | $ | 329,120 |  | $ | —
Interest expense incurred on the above mentioned related party loans amounted to $11,403, $0 and $0 for the years ended June 30, 2019, 2018 and 2017, respectively. f. Guarantee provided to related party loan On December 26, 2017, CQ Mingwen (the “borrower”) entered into a loan agreement with SPD Rural Bank (the lender) to borrow RMB 9 million (approximately $1.4 million) as working capital for one year and was extend for another year to December 26, 2019. GA Yongpeng pledged a land-use right recorded at RMB 10,198,100 (approximately $1.5 million) and building property recorded at RMB 12,268,800 (approximately $1.8 million) as collateral (see Note 6, 7 and 14). g. Loans guarantees by related parties The Company has various short-term loans guaranteed by its related parties. See Note 10.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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