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Investments | 3 Months Ended
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Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS | NOTE 7 - INVESTMENTS Ankang Longevity Group entered into two equity investment agreements with Shaanxi Pharmaceutical Group Pai'ang Medicine Co. Ltd. ("Shaanxi Pharmaceutical Group"), a Chinese state-owned pharmaceutical enterprise to invest a total of RMB 6.8 million (approximately US$ 1.0 million) for a 49% equity interest in a pharmacy retail company called Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Retail Chain Co., Ltd. ("Sunsimiao Drugstores"), and a 49% equity interest in a pharmaceutical wholesale distribution company named Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. ("Shaanxi Longevity Pharmacy"). These two equity investments were formed as new business entities to collaborate with Shaanxi Pharmaceutical Group to expand sales to regional hospitals and clinics and to establish the presence of retail pharmacies under the Brand name "Sunsimiao". The investments are accounted for using the equity method because Ankang Longevity Group has significant influence, but no control of these two entities. Ankang Longevity Group recorded income of US$ 69,899 and US$ 143,135 for the three months ended September 30, 2019 and 2018, respectively, from the investments, which was included in "Income from equity method investments" in the unaudited condensed consolidated statements of income and comprehensive income (see Note 11). Ankang Longevity Group entered into a supplemental agreement with Shaanxi Pharmaceutical Group. According to the supplemental agreement, new 49% equity investment companies established by Shaanxi Pharmaceutical Group and Ankang Longevity Group are required to exclusively purchase certain raw materials and drug products from Shaanxi Pharmaceutical Group. In return, Shaanxi Pharmaceutical Group has agreed to compensate Ankang Longevity Group with a purchase rebate of 7% of the total purchases made from Shaanxi Pharmaceutical Group. For the three months ended September 30, 2019 and 2018, a total of US$ Nil and US$ 292,439 was recognized by Ankang Longevity Group from this supplemental agreement in addition to its 49% share of the income from the equity investment companies, respectively. On October 21, 2013, the Company, through its controlled subsidiaries, Zhisheng Freight and Zhisheng Agricultural, entered into an agreement with an unrelated third party, Zhejiang Zhen'Ai Network Warehousing Services Co., Ltd. ("Zhen'Ai Network"), and invested RMB 14.5 million (approximately US$ 2.2 million) into Tiancang Systematic Warehousing project ("Tiancang Project") operated by Zhen'Ai Network. The Tiancang Project is an online platform established to provide comprehensive warehousing and logistic solutions to companies involved in E-commerce. The Company is entitled to 29% of Tiancang Project's after-tax net income annually, less 30% statutory reserve and a 10 % employee welfare fund contribution. When the amount of the accumulated statutory reserve reaches 30% of the total investment for the Tiancang Project, no additional appropriation to the statutory reserve is required. For the three months ended September 30, 2019 and 2018, the Company did not record investment income from this investment. On November 21, 2016, the Company (the "Investor") entered into an agreement with Original Lab Inc., a California corporation (the "Investee"), and made a payment of US$ 200,000 in exchange for the right to acquire certain shares of the Investee's common and preferred stock. The Company considered it's unlikely to obtain any investment income in the near future, and decided the make a fully impairment on this investment during the year ended June 30, 2019. The Company's investments in unconsolidated entities consist of the following:
|  | September 30, 2019 |  |  | June 30, 2019 |
Shaanxi Pharmaceutical Holding Group Longevity Pharmacy Co., Ltd. (Ankang Longevity Pharmacy) |  | $ | 3,627,582 |  |  | $ | 3,717,277 |
Shaanxi Pharmaceutical Sunsimiao Drugstores Ankang Chain Co., Ltd. |  |  | 807,807 |  |  |  | 822,058 |
Zhejiang Zhen'Ai Network Warehousing Services Co., Ltd. |  |  | 2,031,296 |  |  |  | 2,111,609 |
Total |  | $ | 6,466,685 |  |  | $ | 6,650,944 |
Summarized financial information of unconsolidated entities is as follows:
|  | September 30, 2019 |  |  | June 30, 2019 |
Current assets |  | $ | 37,362,920 |  |  | $ | 35,675,858 |
Noncurrent assets |  |  | 218,073 |  |  |  | 241,580 |
Current liabilities |  |  | 28,543,605 |  |  |  | 26,668,485 |
|  | For the three months ended September 30, |
|  | 2019 |  |  | 2018 |
Net sales |  | $ | 7,540,520 |  |  | $ | 7,438,062 |
Gross profit |  |  | 764,612 |  |  |  | 1,013,655 |
Income from operations |  |  | 138,891 |  |  |  | 292,670 |
Net income |  |  | 144,590 |  |  |  | 292,113 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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