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SEGMENT REPORTING
 9 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 20 - 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.
   
● 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 Zhihesheng 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 company 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 Guangyuan 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.
   
● Developing, producing and distributing innovative rapid diagnostic products and related medical devices for the most common diseases (“Rapid Diagnostic Products”):
   
  The operating company of this segment, Biowin, is specializing in development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases. The operations of this segment are located in Jiangsu Province. Its products are sold not only in China, but also overseas countries such as Germany, Spain, Italy, Thailand, Japan and other countries.

 

 

The following table presents summarized information by segment for the nine months ended March 31, 2023:

 

   For the nine months ended March 31, 2023 
   Luobuma   Other agricultural   Freight   Rapid diagnostic     
   products   products   services   products   Total 
Segment revenue  $22,298   $1,154,156   $360,010   $231,513   $1,767,977 
Cost of revenue and related business and sales tax   2,853    1,600,321    245,057    220,357    2,068,588 
Gross profit (loss)   19,445    (446,165)   114,953    11,156    (300,611)
Gross profit (loss) %   87.2%   (38.7)%   31.9%   4.8%   (17.0)%

 

The following table presents summarized information by segment for the nine months ended March 31, 2022:

 

   For the nine months ended March 31, 2022 
   Luobuma   Other agricultural   Freight   Rapid diagnostic     
   products   products   services   products   Total 
Segment revenue  $43,289   $1,244,221   $692,916   $              -   $1,980,426 
Cost of revenue and related business and sales tax   153,508    2,983,804    627,092    -    3,764,404 
Gross profit (loss)   (110,219)   (1,739,583)   65,824    -    (1,783,978)
Gross profit (loss) %   (254.6)%   (139.8)%   9.5%   -    (90.1)%

 

The following table presents summarized information by segment for the three months ended March 31, 2023:

 

   For the three months ended March 31, 2023 
   Luobuma   Other agricultural   Freight   Rapid diagnostic     
   products   products   services   products   Total 
Segment revenue  $3,076   $330,471   $127,972   $231,513   $693,032 
Cost of revenue and related business and sales tax   (6,091)   484,874    83,758    220,357    782,898 
Gross profit (loss)   9,167    (154,403)   44,214    11,156    (89,866)
Gross profit (loss) %   298.0%   (46.7)%   34.5%   4.8%   (13.0)%

 

The following table presents summarized information by segment for the three months ended March 31, 2022:

 

   For the three months ended March 31, 2022 
   Luobuma   Other agricultural   Freight   Rapid diagnostic     
   products   products   services   products   Total 
Segment revenue  $8,521   $369,030   $240,543   $               -   $618,094 
Cost of revenue and related business and sales tax   3,203    899,022    208,611    -    1,110,836 
Gross profit (loss)   5,318    (529,992)   31,932    -    (492,742)
Gross profit (loss) %   62.4%   (143.6)%   13.3%   -    (79.7)%

 

 

Total assets as of March 31, 2023 and June 30, 2022 were as follows:

 

  

March 31,

2023

  

June 30,

2022

 
         
Luobuma products  $7,708,834   $10,982,562 
Other agricultural products   34,105,791    46,488,334 
Freight services   4,007,675    6,355,121 
Rapid diagnostic products   21,906,885    - 
Total assets  $67,729,185   $63,826,017