NOTE 15 – SEGMENT REPORTING

As of June 30, 2018, the Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Yuxing (agricultural products production) and the sales VIEs. Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment.

	Years Ended June 30,
	2018			2017
Revenues from unaffiliated customers:
Jinong	$	97,722,842		$	106,642,032
Gufeng		112,983,573			104,446,239
Yuxing		10,485,030			8,517,231
Sales VIEs		65,862,085			58,242,984
Consolidated	$	287,053,530		$	277,848,486

Operating income :
Jinong	$	23,471,811		$	22,562,310
Gufeng		10,151,272			8,286,761
Yuxing		(506,077	)		(2,376,007
Sales VIEs		(1,897,364	)		5,412,132
Reconciling item (1)		0			0
Reconciling item (2)		(1,417,855	)		(1,082,505	)
Reconciling item (3) --stock compensation		0			(1,282,079	)
Consolidated	$	29,801,787		$	31,520,612

Net income:
Jinong	$	19,841,004		$	18,699,889
Gufeng		7,172,837			6,264,392
Yuxing		(484,398	)		(2,375,961
Sales VIEs		(2,700,288	)		4,925,927
Reconciling item (1)		6			15
Reconciling item (2)		(30,428,390	)		(2,364,598	)
Reconciling item (3)	$	(331,996	)	$
Consolidated	$	(6,931,225	)	$	25,152,153
Depreciation and Amortization:
Jinong	$	1,720,419		$	13,358,370
Gufeng		2,246,657			2,302,047
Yuxing		1,407,367			1,366,840
Sales VIEs		826,063			248,255
Consolidated	$	6,200,506		$	17,275,512
Interest expense:
Jinong		290,638
Gufeng		377,593			290,126
Yuxing		0			251,064
Sales VIEs		(76,078	)		8,460
Consolidated	$	592,153		$	549,650

Capital Expenditure:
Jinong	$	7,212		$	9,582
Gufeng		7,800			12,273
Yuxing		5,448			6,210
Sales VIEs		20,655			14,217
Consolidated	$	41,114		$	42,283

	As of
	June 30,			June 30,
	2018			2017
Identifiable assets:
Jinong	$	226,335,489		$	213,355,900
Gufeng		168,572,947			156,648,924
Yuxing		0			40,965,345
Sales VIEs		87,567,782			42,441,466

Reconciling item (1)		512,622			142,919
Reconciling item (2)		(2,879	)		(2,879	)
Consolidated	$	482,985,960		$	453,551,675

(1)

Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2)

Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

(3)

Reconciling amounts refer to the loss on discontinuing sales VIE of Shenqiu Zhenbai.

Total revenues from exported products currently accounted for less than 1% of the Company’s total fertilizer revenues for the years ended June 30, 2018 and 2017, respectively.