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Segment Reporting

9 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 16 - SEGMENT REPORTING

ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Group's internal organizational management structure as well as information about geographical areas, business segments and major customers in for details on the Group's business segments.

The Company's chief operating decision maker has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Group. Based on management's assessment, the Company has determined that it has three operating segments according to its major products and locations as follows:

●

Developing, manufacturing and distributing of specialized fabrics, textile products and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as "Bluish Dogbane" or known in Chinese as "Luobuma" (referred to herein as Luobuma):

The operating companies of this segment, namely Tenet-Jove and Tenet Huatai, specialize in Luobuma growing, development and manufacturing of relevant products, as well as purchasing Luobuma raw materials processing.

This segment's operations are focused in the north region of Mainland China, mostly carried out in Beijing, Tianjin and Xinjiang City.

●

Processing and distributing of traditional Chinese medicinal herbal products as well as other pharmaceutical products ("Herbal products"):

The operating companies of this segment, namely AnKang Longevity Group and its subsidiaries, process more than 600 kinds of Chinese medicinal herbal products with an established domestic sales and distribution network.

Ankang Longevity Group is also engaged in the retail pharmacy business and the operating revenue, which is not material, is also included in this segment.

●

Planting, processing and distributing of green and organic agricultural produce as well as growing and cultivating of Chinese Yew trees ("Other agricultural products"):

The operating companies of this segment, the Zhisheng Group, is engaged in the business of growing and distributing green and organic vegetables and fruits as well as providing logistics services for distributing agricultural products. This segment has been focusing its efforts on the growing and cultivating of Chinese yew trees (formally known as "taxus media"), a small evergreen tree whose branches can be used for the production of medications believed to be anti-cancer and the tree itself can be used as an ornamental indoor bonsai tree, which are known to have the effect of purifying air quality.

The operations of this segment are located in the East and North regions of Mainland China, mostly carried out in Shandong Province and in Beijing where the Zhisheng Group has newly developed over 100 acres of modern greenhouses for cultivating yew trees and other plants.

The following table presents summarized information by segment for the nine months ended March 31, 2019:

		For the nine months ended March 31, 2019
		Luobuma				Herbal				Other agricultural
		products				products				products				Total
Segment revenue		$	641,877			$	10,050,987			$	12,980,747			$	23,673,611
Cost of revenue and related business and sales tax			314,199				7,602,465				8,889,079				16,805,742
Gross profit			327,678				2,448,522				4,091,669				6,867,869
Gross profit %			51.1	%			24.4	%			31.5	%			29.0	%

The following table presents summarized information by segment for the nine months ended March 31, 2018:

		For the nine months ended March 31, 2018
		Luobuma				Herbal				Other agricultural
		products				products				products				Total
Segment revenue		$	10,411,292			$	10,231,923			$	14,639,762			$	35,282,977
Cost of revenue and related business and sales tax			4,820,945				7,934,502				10,359,506				23,114,953
Gross profit			5,590,347				2,297,421				4,280,256				12,168,024
Gross profit %			53.7	%			22.5	%			29.2	%			34.5	%

The following table presents summarized information by segment for the three months ended March 31, 2019:

		For the three months ended March 31, 2019
		Luobuma				Herbal				Other agricultural
		products				products				products				Total
Segment revenue		$	131,153			$	3,253,083			$	4,318,362			$	7,702,598
Cost of revenue and related business and sales tax			92,413				2,447,509				2,805,813				5,345,735
Gross profit			38,740				805,574				1,512,549				2,356,863
Gross profit %			29.5	%			24.8	%			35.0	%			30.6	%

The following table presents summarized information by segment for the three months ended March 31, 2018:

		For the three months ended March 31, 2018
		Luobuma				Herbal				Other agricultural
		products				products				products				Total
Segment revenue		$	5,477,219			$	3,303,784			$	4,560,278			$	13,341,281
Cost of revenue and related business and sales tax			2,357,960				2,575,946				3,145,498				8,079,404
Gross profit			3,119,259				727,838				1,414,780				5,261,877
Gross profit %			56.9	%			22.0	%			31.0	%			39.4	%

Total Assets as of

		March 31, 2019				June 30, 2018

Luobuma products		$	6,897,321			$	11,927,928
Herbal products			46,023,816				40,904,909
Other agricultural products			32,407,946				30,267,580
		$	85,329,083			$	83,100,417