XML 24 R14.htm IDEA: XBRL DOCUMENT

Note 7 - Investment Properties

3 Months Ended

Sep. 30, 2021

Investment Property In China [Text Block]

7.	INVESTMENT PROPERTIES

The following table presents the Company’s investment in properties in China as of September 30, 2021. The exchange rate is based on the market rate as of September 30, 2021.

	Investment Date / Reclassification Date	Investment Amount (RMB)			Investment Amount (U.S. Dollars)
Purchase of rental property – Property I – MaoYe Property	Jan 04, 2008		5,554			894
Currency translation			-			(87	)
Reclassification as “Assets held for sale”	July 01, 2019		(5,554	)		(807	)
Reclassification from “Assets held for sale”	Mar 31, 2020		2,024			301
			2,024			301
Purchase of rental property – Property II - JiangHuai	Jan 06, 2010		3,600			580
Purchase of rental property – Property III - FuLi	Apr 08, 2010		4,025			648
Currency translation			-			(38	)
Gross investment in rental property			9,649			1,491
Accumulated depreciation on rental property	Sep 30, 2021		(7,161	)		(1,097	)
Reclassified as “Assets held for sale” - MaoYe Property	July 01, 2019		2,822			410
Reclassification from “Assets held for sale” - MaoYe Property	Mar 31, 2020		(1,029	)		(143	)
			(5,368	)		(830	)
Net investment in properties – China			4,281			661

The following table presents the Company’s investment in properties in China as of June 30, 2021. The exchange rate is based on the market rate as of June 30, 2021.

	Investment Date / Reclassification Date	Investment Amount (RMB)			Investment Amount (U.S. Dollars)
Purchase of rental property – Property I – MaoYe Property	Jan 04, 2008		5,554			894
Currency translation			-			(87	)
Reclassification as “Assets held for sale”	Jul 01, 2018		(5,554	)		(807	)
Reclassification from “Assets held for sale”	Mar 31, 2019		2,024			301
			2,024			301
Purchase of rental property – Property II - JiangHuai	Jan 06, 2010		3,600			580
Purchase of rental property – Property III - FuLi	Apr 08, 2010		4,025			648
Currency translation			-			(36	)
Gross investment in rental property			9,649			1,493
Accumulated depreciation on rental property	Jun 30, 2021		(7,040	)		(1,079	)
Reclassified as “Assets held for sale” - Mao Ye Property	Jul 01, 2019		2,822			410
Reclassification from “Assets held for sale” - Mao Ye Property	Mar 31, 2020		(1,029	)		(143	)
			(5,247	)		(812	)
Net investment in properties – China			4,402			681

Rental Property I - MaoYe Property

In fiscal 2008, TTCQ purchased an office in Chongqing, China from MaoYe Property Ltd. (“MaoYe”), for a total cash purchase price of RMB5,554, or approximately $894.

TTCQ signed a new lease agreement to rent out the 403 square meter space at a monthly rate of RMB14, or approximately $2, from September 1, 2021 to February 28, 2022.

Property purchased from MaoYe generated a rental income of $2 during the three months ended September 30, 2021, as compared to $nil for the same period in last fiscal year.

Depreciation expense for MaoYe was $4 for the three months ended September 30, 2021 and 2020, respectively.

Rental Property II - JiangHuai

In fiscal year 2010, TTCQ purchased eight units of commercial property in Chongqing, China from Chongqing JiangHuai Real Estate Development Co. Ltd. (“JiangHuai”) for a total purchase price of RMB3,600, or approximately $580. TTCQ had yet to receive the title deed for these properties. TTCQ was in the legal process of obtaining the title deed until the developer encountered cash flow difficulties in the recent years. Since then, JiangHuai has been under liquidation and is now undergoing asset distribution. Nonetheless, this is not expected to affect the property’s market value but, in view of the COVID-19 pandemic and current economic situation, it is likely to be more tedious and time-consuming for the court in their execution of the sale.

Property purchased from JiangHuai did not generate any rental income for the three months ended September 30, 2021 and 2020.

Depreciation expense for JiangHuai was $7 and $6 for the three months ended September 30, 2021 and 2020, respectively.

Rental Property III – FuLi

In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing FuLi Real Estate Development Co. Ltd. (“FuLi”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. The total purchase price committed and paid was RMB 4,025, or approximately $622. The development was completed, the property was handed over to TTCQ in April 2013 and the title deed was received during the third quarter of fiscal 2014.

One of the two commercial properties was leased from TTCQ by a third party under a two-year lease to rent out the 154.49 square meter space at a monthly rate of RMB9, or approximately $1, commencing from May 21, 2021, to May 23, 2023.

For the other leased property, TTCQ renewed the lease agreement to rent out the 161 square meter space at a monthly rate of RMB10, or approximately $1, from November 1, 2019, to October 31, 2020. After which, TTCQ renewed the lease agreement at a monthly rate of RMB10, or approximately $1, from November 1, 2020, to April 30, 2021, and May 1, 2021, to October 31, 2021.

Properties purchased from FuLi generated a rental income of $9 for the three months ended September 30, 2021, and $4 for the same period in the last fiscal year.

Depreciation expense for FuLi was $8 and $7 for the three months ended September 30, 2021 and 2020, respectively.

Summary

Total rental income for all investment properties in China was $11 for the three months ended September 30, 2021, and $4 for the same period in the last fiscal year.

Depreciation expenses for all investment properties in China were $19 and $17 for the three months ended September 30, 2021, and the same period in the last fiscal year, respectively.