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Segment Reporting

12 Months Ended

Jun. 30, 2019

NOTE 15 – SEGMENT REPORTING

As of June 30, 2019, 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,
	2019			2018
Revenues from unaffiliated customers:
Jinong	$	76,494,490		$	97,722,842
Gufeng		136,285,236			112,983,573
Yuxing		10,101,051			10,485,030
Sales VIEs		71,440,026			65,862,085
Consolidated	$	294,320,803		$	287,053,530

Operating income:
Jinong	$	7,288,789		$	23,471,811
Gufeng		14,076,655			10,151,272
Yuxing		(3,435,206	)		(506,077	)
Sales VIEs		2,681,521			(1,897,364	)
Reconciling item (1)		0			0
Reconciling item (2)		(1,807,011	)		(1,417,855	)
Reconciling item (3) --stock compensation		0			0
Consolidated	$	18,804,748		$	29,801,787

Net income:
Jinong	$	5,925,025		$	19,841,004
Gufeng		10,191,675			7,172,837
Yuxing		(3,435,659	)		(484,398	)
Sales VIEs		729,023			(2,700,288	)
Reconciling item (1)		9			6
Reconciling item (2)		(1,807,009	)		(30,428,390	)
Reconciling item (3)	$	(12,668	)	$	(331,996	)
Consolidated	$	11,590,395		$	(6,931,225	)
Depreciation and Amortization:
Jinong	$	788,787		$	1,720,419
Gufeng		2,144,061			2,246,657
Yuxing		1,242,761			1,407,367
Sales VIEs		745,169			826,063
Consolidated	$	4,920,779		$	6,200,506
Interest expense:
Jinong		277,003			290,638
Gufeng		318,122			377,593
Yuxing		0			0
Sales VIEs		0			(76,078	)
Consolidated	$	595,125		$	592,153

Capital Expenditure:
Jinong	$	6,862		$	7,212
Gufeng		47,096			7,800
Yuxing		9,653			5,448
Sales VIEs		0			20,655
Consolidated	$	63,610		$	41,114

	As of
	June 30,			June 30,
	2019			2018
Identifiable assets:
Jinong	$	149,166,251		$	226,335,489
Gufeng		253,149,321			168,572,947
Yuxing		35,900,242			0
Sales VIEs		42,269,307			87,567,782

Reconciling item (1)		518,158			512,622
Reconciling item (2)		(2,879	)		(2,879	)
Consolidated	$	481,000,399		$	482,985,960

(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, 2019 and 2018 respectively.