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SEGMENT REPORTING
 3 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 19 - 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 four 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.
   
● 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, which are reclassified as discontinued operations, 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 company of this segment, Qingdao Zhihesheng, is engaged in the business of growing and distributing green and organic vegetables and fruits. 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 Zhihesheng have newly developed over 100 acres of modern greenhouses for cultivating yew trees and other plants.

 

The other operating companies of this segment, Guangyuan, is engaged in the business of landscaping, afforestation, road greening, scenic greening, garden engineering, landscaping construction, and green afforestation, especially in planting fast-growing bamboo willows and scenic greening trees. The operations of this segment are located in the North regions of Mainland China, mostly carried out in Shanxi Province, where Guangyuan has developed over 350 acres of farmland for cultivating bamboo willows and other plants.

 

● Providing domestic air and overland freight forwarding services (“Freight services”):

 

The operating company of this segment, Zhisheng Freight, is engaged in the business of providing domestic air and overland freight forwarding services by outsourcing these services to a third party. During the year ended June 30, 2022, there was a change in the Company’s business strategies, from being the service providers, Zhisheng Freight outsourced the freight services to third-party logistic companies and the Company merely serves as an agent and its obligation is to facilitate third-party logistic companies in fulfilling its performance obligation for specified freight services.

 

The following table presents summarized information by segment for the three months ended September 30, 2022:

 

   For the three months ended September 30, 2022 
   Luobuma   Other agricultural   Freight     
   products   products   services   Total 
Segment revenue  $5,574   $428,596   $101,528   $535,698 
Cost of revenue and related business and sales tax   206    548,942    77,427    626,575 
Gross profit (loss)   5,368    (120,346)   24,101    (90,877)
Gross profit (loss) %   96.3%   (28.1)%   23.7%   (17.0)%

 

The following table presents summarized information by segment for the three months ended September 30, 2021:

 

   For the three months ended September 30, 2021 
   Luobuma   Other agricultural   Freight     
   products   products   services   Total 
Segment revenue  $13,508   $452,387   $163,863   $629,758 
Cost of revenue and related business and sales tax   141,838    1,068,254    149,211    1,359,303 
Gross profit (loss)   (128,330)   (615,867)   14,652    (729,545)
Gross profit (loss) %   (950.0)%   (136.1)%   8.9%   (115.8)%

 

 

Total assets as of September 30, 2022 and June 30, 2022 were as follows:

 

  

September 30,

2022

  

June 30,

2022

 
         
Luobuma products  $9,388,729   $10,982,562 
Other agricultural products   43,159,007    46,488,334 
Freight services   4,872,431    6,355,121 
Total assets  $57,420,167   $63,826,017