NOTE 10 - RELATED PARTY TRANSACTIONS

DUE FROM RELATED PARTIES

The Company had previously made temporary advances to certain shareholders of the Company and to other entities that are either owned by family members of those shareholders or to other entities that the Company has investments in. Those advances are due on demand, non-interest bearing, except for the advance to Xinyang Yifangyuan Garden Technology Co., Ltd., which bears fixed monthly interest rate of 4.17%.

As of June 30, 2017 and 2016, the outstanding amounts due from related parties consist of the following:

	June 30, 2017		June 30, 2016

Yang Bin		147,550		150,504
Zhang Xin		91,480		93,312
Chang Song		73,037		85,035
Zhang Xinyu		61,441		-
Zhang Hua		28,034		-
Beijing Huiyinansheng Asset Management Co., Ltd		22,132		-
Zhang Yuying		15,567		-
Wang Qiwei		8,117		8,279
Qi Qiuchi		-		1,505
Tian Shuangpeng		1,475		11,288
Xinyang Yifangyuan Garden Technology Co., Ltd		-		500,784
	$	448,833	$	850,707

For the years ended June 30, 2017 and 2016, interest income of $86,355 and $261,015, respectively, was recognized on these loans and included in “Interest income, net” on the consolidated statements of income and comprehensive income.

DUE TO RELATED PARTIES

As of June 30, 2017 and 2016, the Company had related party payables of $257,880 and $244,915, respectively, mainly due to the principal shareholders or certain relatives of the shareholders of the Company who lend funds for the Company’s operations. The payables are unsecured, non-interest bearing and due on demand.

	June 30, 2017		June 30, 2016

Wu Yang		94,505		96,398
Wang Sai		71,942		120,854
Zhao Min		91,433		-
Zhang Yuying		-		26,769
Beijing Huiyinansheng Asset Management Co., Ltd		-		894
	$	257,880	$	244,915

SALES TO RELATED PARTIES

For the years ended June 30, 2017 and 2016, the Company recorded sales to Shaanxi Pharmaceutical Group , a related party , of $3,038,195 and $3,014,198, respectively. As of June 30, 2017 and 2016, the balance of accounts receivable due from Shaanxi Pharmaceutical Group was $2,205,453 and $1,908,871, respectively.