CHINA GREEN AGRICULTURE, INC. Discusión y análisis de la gerencia sobre la situación financiera y los resultados de las operaciones (formulario 10-Q)

0
55
The following dialogue and evaluation of our monetary situation and outcomes of
operations needs to be learn along side our unaudited condensed
consolidated monetary statements and the notes to these monetary statements
showing elsewhere on this report. This dialogue and evaluation include
forward-looking statements that contain vital dangers and uncertainties. As
a results of many elements, such because the slow-down of the macro-economic
setting in China and its impression on financial development normally, the
competitors within the fertilizer trade and the impression of such competitors on
pricing, revenues and margins, the climate circumstances within the areas the place our
clients are primarily based, the price of attracting and retaining extremely expert
personnel, the prospects for future acquisitions, and the elements set forth
elsewhere on this report, our precise outcomes could differ materially from these
anticipated in these forward-looking statements. With these dangers and
uncertainties, there will be no assurance that the forward-looking statements
contained on this report will in reality happen. You mustn't place undue reliance
on the forward-looking statements contained on this report.



The forward-looking statements converse solely as of the date on which they're made,
and, besides to the extent required by U.S. federal securities legal guidelines, we undertake
no obligation to replace any forward-looking assertion to replicate occasions or
circumstances after the date on which the assertion is made or to replicate the
prevalence of unanticipated occasions. Further, the details about our
intentions contained on this report is an announcement of our intention as of the
date of this report and relies upon, amongst different issues, the prevailing
regulatory setting, trade circumstances, market circumstances and costs, and
our assumptions as of such date. We could change our intentions, at any time and
with out discover, primarily based upon any adjustments in such elements, in our assumptions
or
in any other case.



Unless the context signifies in any other case, as used within the notes to the monetary
statements of the Company, the next are the references herein of all of the
subsidiaries of the Company (i) Green Agriculture Holding Corporation ("Green
New Jersey"), a wholly-owned subsidiary of Green Nevada integrated within the
State of New Jersey; (ii) Shaanxi TechWorkforce Jinong Humic Acid Product Co., Ltd.
("Jinong"), a wholly-owned subsidiary of Green New Jersey organized beneath the
legal guidelines of the PRC; (iii) Xi'an Hu County Yuxing Agriculture Technology Development
Co., Ltd. ("Yuxing"), a Variable Interest Entity within the PRC ("VIE") managed
by Jinong by contractual agreements; (iv) Beijing Gufeng Chemical Products
Co., Ltd., a wholly-owned subsidiary of Jinong within the PRC ("Gufeng"); and (v)
Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng's wholly-owned subsidiary within the
PRC ("Tianjuyuan"). Yuxing may additionally collectively be known as the "the
VIE
Company".



Unless the context in any other case requires, all references to (i) "PRC" and "China"
are to the People's Republic of China; (ii) "U.S. greenback," "$" and "US$" are to
United States {dollars}; and (iii) "RMB", "Yuan" and Renminbi are to the foreign money
of the PRC or China.



Overview


We are engaged within the analysis, improvement, manufacturing and sale of assorted
varieties of fertilizers and agricultural merchandise within the PRC by our
wholly-owned Chinese subsidiaries, Jinong and Gufeng (together with Gufeng's
subsidiary Tianjuyuan), and our VIE, Yuxing. Our major enterprise is fertilizer
merchandise, particularly humic-acid primarily based compound fertilizer produced by Jinong
and compound fertilizer, blended fertilizer, natural compound fertilizer,
slow-release fertilizer, highly-concentrated water-soluble fertilizer and combined
organic-inorganic compound fertilizer produced by Gufeng. In addition, by
Yuxing, we develop and produce varied agricultural merchandise, equivalent to top-grade
fruits, greens, flowers and coloured seedlings. For monetary reporting
functions, our operations are organized into three enterprise segments: fertilizer
merchandise (Jinong), fertilizer merchandise (Gufeng) and agricultural merchandise
(Yuxing).



The fertilizer enterprise carried out by Jinong and Gufeng generated roughly
95.8% and 95.5% of our complete revenues for the 9 months ended March 31, 2022
and 2021, respectively. Yuxing serves as a analysis and improvement base for our
fertilizer merchandise.



Fertilizer Products



As of March 31, 2022, we had developed and produced a complete of 410 totally different
fertilizer merchandise in use, of which 74 have been developed and produced by Jinong
and 336 by Gufeng.



                                       28




A continuación se muestra una tabla que muestra las toneladas métricas de fertilizante vendidas por Jinong y Gufeng y los ingresos por tonelada para los períodos indicados:



           Three Months Ended
                March 31,              Change 2021 to 2022
           2022          2021           Amount           %
              (metric tons)
Jinong      18,989        23,066           (4,077 )     -17.7 %
Gufeng      90,228       131,807          (41,579 )     -31.5 %
           109,218       154,874          (45,656 )     -29.5 %




            Three Months Ended
                 March 31,
           2022            2021
            (income per tons)
Jinong   $     701       $     670
Gufeng         499             363




            Nine Months Ended
                March 31,              Change 2021 to 2022
           2022          2021           Amount           %
              (metric tons)
Jinong      49,487        60,165          (10,678 )     -17.7 %
Gufeng     188,006       243,496          (55,490 )     -22.8 %
           237,493       303,662          (66,168 )     -21.8 %




            Nine Months Ended
                March 31,
            2022           2021
           (income per tons)
Jinong   $      877       $  774
Gufeng          430          362




For the three months ended March 31, 2022, we bought roughly 109,218 tons of
fertilizer merchandise, as in comparison with 154,874 metric tons for the three months
ended March 31, 2021. For the three months ended March 31, 2022, Jinong bought
roughly 18,989 metric tons of fertilizer merchandise, as in comparison with 23,066
metric tons for the three months ended March 31, 2021. For the three months
ended March 31, 2022, Gufeng bought roughly 90,228 metric tons of fertilizer
merchandise, as in comparison with 131,807 metric tons for the three months ended March
31, 2021.



For the 9 months ended March 31, 2022, we bought roughly 237,493 metric
tons of fertilizer merchandise, as in comparison with 303,662 metric tons for the 9
months ended March 31, 2021. For the 9 months ended March 31, 2022, Jinong
bought roughly 49,487 metric tons of fertilizer merchandise, a lower of
10,678 metric tons, or 17.7%, as in comparison with 60,165 metric tons for the 9
months ended March 31, 2021. For the 9 months ended March 31, 2022, Gufeng
bought roughly 188,006 metric tons of fertilizer merchandise, a lower of
55,490 metric tons, or 22.8% as in comparison with 243,496 metric tons for the 9
months ended March 31, 2021.



Our gross sales of fertilizer merchandise to clients in 5 provinces inside China
accounted for about 81.8% of our fertilizer income for the three months
ended March 31, 2022. Specifically, the provinces and their respective
proportion contributing to our fertilizer revenues have been Hebei (38.6%),
Heilongjiang (14.4%), Inner Mongolia (13.4%), Liaoning (13.0%), and Shaanxi
(2.4%).



As of March 31, 2022, we had a complete of 1,432 distributors masking 22
provinces, 4 autonomous areas and 4 central government-controlled
municipalities in China. Jinong had 1,098 distributors in China. Jinong's gross sales
should not depending on any single distributor or any group of distributors.
Jinong's prime 5 distributors accounted for six.8% of its fertilizer revenues for
the three months ended March 31, 2022. Gufeng had 334 distributors, together with
some massive state-owned enterprises. Gufeng's prime 5 distributors accounted for
77.6% of its revenues for the three months ended March 31, 2022.



                                       29





Agricultural Products



Through Yuxing, we develop, produce and promote high-quality flowers, inexperienced
greens and fruits to native marketplaces and varied horticulture and
planting corporations. We additionally use sure of Yuxing's greenhouse services to
conduct analysis and improvement actions for our fertilizer merchandise. The
three PRC provinces and municipalities that accounted for 97.4% of our
agricultural merchandise income for the three months ended March 31, 2022 have been
Shaanxi (91.3%), Shanghai (3.6%), and Beijing (2.5%).



Recent Developments



New Products



During the three months ended March 31, 2022, Jinong launched 2 new fertilizer
merchandise and added 22 new distributors. During the three months ended March 31,
2022, Gufeng didn't launch any new fertilizer merchandise and didn't add any
new
distributors.



Strategic Acquisitions



On June 30, 2016 and January 1, 2017, by Jinong, we entered (i) Strategic
Acquisition Agreements (the "SAA"), and (ii) Agreements for Convertible Notes
(the "ACN"), with the shareholders of the businesses as recognized beneath (the
"Targets").



June 30, 2016:



                                                                          Cash          Principal
                                                                        Payment             of
                                                                          for           Notes for
                                                                      Acquisition      Acquisition
Company Name                          Business Scope                   

(RMB[1]) (RMB) Shaanxi Lishijie Venta de pesticidas, productos químicos agrícolas,
empresa agroquimicafertilizantes químicos, agrícola Ltd.

                   supplies; Manufacture and gross sales of mulches.     

10,000,000 3,000,000

Songyuan               Promotion and consulting providers relating to
Jinyangguang Sannong   agricultural applied sciences; Retail gross sales of
Service Co., Ltd.      chemical fertilizers (together with compound
                       fertilizers and natural fertilizers);
                       Wholesale and retail gross sales of pesticides,
                       agricultural equipment and equipment;
                       Collection of agricultural data;
                       Development of saline-alkali soil; Promotion
                       and improvement of high-efficiency
                       agriculture and associated data
                       expertise options for agriculture,
                       agricultural and organic engineering excessive
                       applied sciences; E-commerce; Cultivation of
                       freshwater fish, poultry, fruits, flowers,
                       greens, and seeds; Recycling and complicated
                       utilization of straw and stalk; Technology
                       switch and coaching; Recycling of
                       agricultural supplies ; Ecological trade
                       planning.                                         8,000,000       12,000,000

Shenqiu County         Cultivation of crops; Storage, gross sales,
Zhenbai Agriculture    preliminary processing and logistics
Co., Ltd.              distribution of agricultural by-products;
                       Promotion and software of agricultural
                       applied sciences; Purchase and gross sales of
                       agricultural supplies; Electronic commerce.      3,000,000       12,000,000

Weinan City Linwei     Promotion and software of recent
District Wangtian      agricultural applied sciences; Professional
Agricultural           prevention of plant illnesses and bug
Materials Co., Ltd.    pests; Sales of plant safety merchandise,
                       plastic mulches, materials, chemical
                       fertilizers, pesticides, agricultural
                       medicines, micronutrient fertilizers,
                       hormones, agricultural equipment and
                       medicines, and gardening instruments.                   6,000,000       12,000,000

Aksu Xindeguo          Wholesale and retail gross sales of pesticides;
Agricultural           Sales of chemical fertilizers, packaged
Materials Co., Ltd.    seeds, agricultural mulches, micronutrient
                       fertilizers, compound fertilizers, plant
                       development regulators, agricultural machineries,
                       and water economizers; Consulting providers
                       for agricultural applied sciences; Purchase and
                       gross sales of agricultural by- merchandise.              10,000,000       12,000,000

Xinjiang Xinyulei      Sales of chemical fertilizers, packaged
Eco-agriculture        seeds, agricultural mulches, micronutrient
Science and            fertilizers, natural fertilizers, plant
Technology Co., Ltd    development regulators, agricultural machineries,
                       and water economizers; Purchase and gross sales of
                       agricultural by-products; Cultivation of
                       vegatables and fruits; Consulting providers
                       and coaching for agricultural applied sciences;
                       Storage providers; Sales of articles of each day
                       use, meals and oil; On-line gross sales of the
                       above-mentioned merchandise.

Total                                                                   37,000,000       51,000,000




(1) El tipo de cambio entre RMB y A NOSOTROS dólares en 30 de junio de 2016 es

RMB1=0,1508 USDsegún el tipo de cambio publicado por Bank of China.




                                       30




(2) Encendido 30 de noviembre de 2017la Compañía, a través de su subsidiaria de propiedad complete

Jinong, descontinuó los acuerdos de adquisición estratégica y la serie de

acuerdos contractuales con los accionistas de Zhenbai. A cambio, el

accionistas de Zhenbai acordaron ofrecer la contraprestación de pago complete en

la SAA de vuelta a la Compañía con multas por terminación anticipada. el descapotable

    notes paid to Zhenbai's shareholders and the accrued curiosity has been
    forfeited.




January 1, 2017:



                                                                          Cash          Principal
                                                                                            of
                                                                      Payment for       Notes for
                                                                      Acquisition      Acquisition
Company Name                          Business Scope                    (RMB[1])          (RMB)
Sunwu County
Xiangrong              Sales of pesticides, agricultural chemical compounds,
Agricultural           chemical fertilizers, agricultural

Materiales Co., Ltd. materiales; Fabricación y venta de mantillos. 4,000,000 6,000,000


Anhui Fengnong Seed    Wholesale and retail gross sales of pesticides;
Co., Ltd.              Sales of chemical fertilizers, packaged
                       seeds, agricultural mulches, micronutrient
                       fertilizers, compound fertilizers and plant
                       development regulators                                 4,000,000        6,000,000

Total                                                                    8,000,000       12,000,000



(1) El tipo de cambio entre RMB y A NOSOTROS dólares en 1 de enero de 2017 es

RMB1=0,144 dólares estadounidensessegún el tipo de cambio publicado por Bank of China.





Pursuant to the SAA and the ACN, the shareholders of the Targets, whereas
retaining possession of the fairness pursuits and persevering with to be the authorized
homeowners of such pursuits, agreed to pledge and entrust all their fairness
pursuits, together with the proceeds thereof however excluding any claims or
encumbrances, and the operations and administration of its enterprise to Jinong, in
change of an combination quantity of RMB45,000,000 (roughly $7,078,500) to
be paid by Jinong inside three days following the execution of the SAA, ACN and
the VIE Agreements, and convertible notes with an combination face worth of RMB
63,000,000 (roughly $9,909,900) with an annual mounted compound curiosity
charge of three% and time period of three years.



                                       31




Jinong adquirió Targets utilizando el acuerdo VIE en función de nuestra necesidad de desarrollar aún más nuestro negocio y cumplir con los requisitos reglamentarios de las leyes de la República Popular China.




As our enterprise focuses on the manufacturing of fertilizer, all our enterprise
actions intertwine with these within the agriculture trade in China.
Specifically, we cope with compliance, regulation, security, inspection, and
licenses in fertilizer manufacturing, farmland use and switch, rising and
distribution of agriculture items, agriculture fundamental provides, seeds,
pesticides, and trades of grains. It is an trade through which heavy laws
get carried out and strictly enforced. In addition, E-commerce, which can be
beneath strict authorities regulation within the PRC, has currently turn out to be a gross sales and
distribution channel for agricultural merchandise. Currently, we're creating an
on-line platform to attach the bodily distribution community we both personal
or
lease.



Compared with the regulatory setting in different jurisdictions, the regulatory
setting within the PRC is exclusive. For instance, the "M&A Rules" purports to
require that an offshore particular function automobile managed instantly or
not directly by PRC corporations or people and shaped for functions of abroad
itemizing by acquisition of PRC home pursuits held by such PRC corporations
or people acquire the approval of the China Securities Regulatory Commission
(the "CSRC") previous to the itemizing and buying and selling of such particular function automobile's
securities on an abroad inventory change. On September 21, 2006, the CSRC
revealed procedures relating to its approval of abroad listings by particular
function automobiles.



For each e-commerce and agriculture industries, PRC regulators restrict the
funding from international entities and set significantly guidelines for foreign-owned
entities to conduct enterprise. We count on these limitations on foreign-owned
entities will live on in e-commerce and agriculture industries. The
VIE association, nevertheless, gives feasibility for acquiring administrative
approval course of and avoiding trade restrictions that may be imposed on an
entity that could be a wholly-owned subsidiary of a international entity. The VIE agreements
scale back uncertainty and the present limitation danger. It is our understanding that
the VIE agreements, in addition to the management we obtained by VIE association,
are legitimate and enforceable. Such authorized construction doesn't violate the identified,
revealed, and present PRC legal guidelines. While there are substantial uncertainties
relating to the interpretation and software of PRC Laws and future PRC legal guidelines and
laws, and there will be no assurance that the PRC authorities will take a
view that's not opposite to or in any other case totally different from our perception and
understanding acknowledged above, we consider the substantial problem that we
skilled beforehand to conduct enterprise in agriculture as a international possession
will be vastly diminished by the VIE association. Further, as an integral a part of
the VIE association, the underlying fairness pledge agreements present authorized
safety for the management we obtained. Pursuant to the fairness pledge
agreements, we've accomplished the fairness pledge processes with the Targets to
guarantee the whole management of the pursuits within the Targets. The shareholders of
the Targets should not entitled to switch any shares to a 3rd occasion beneath the
unique possibility agreements. If crucial, they could switch shares to our
firm with out consideration.



While the VIE association gives us with the feasibility to conduct our
enterprise within the E-Commerce and agriculture industries, validity and
enforceability of VIE association is topic to (i) any relevant chapter,
insolvency, fraudulent switch, reorganization, moratorium or related legal guidelines
affecting collectors' rights typically, (ii) attainable judicial or administrative
actions or any PRC Laws affecting collectors' rights, (iii) sure equitable,
authorized or statutory ideas affecting the validity and enforceability of
contractual rights typically beneath ideas of public curiosity, pursuits of the
State, nationwide safety, reasonableness, good religion and honest dealing, and
relevant statutes of limitation; (iv) any circumstance in reference to
formulation, execution or implementation of any authorized paperwork that might be
deemed materially mistaken, clearly unconscionable, fraudulent, coercive on the
conclusions thereof; and (v) judicial discretion with respect to the
availability of indemnifications, treatments or defenses, the calculation of
damages, the entitlement to lawyer's charges and different prices, and the waiver of
immunity from jurisdiction of any courtroom or from authorized course of. Validity and
enforceability of VIE association can be topic to danger derived from the
discretion of any competent PRC legislative, administrative or judicial our bodies
in exercising their authority within the PRC. As a consequence, there can no assurance
that any of such PRC Laws won't be modified, amended or changed within the
fast future or in the long term with or with out retrospective impact.



                                       32





Results of Operations



Three Months ended March 31, 2022 Compared to the three months ended March 31,
2021.



                                                                                   Change           Change
                                                2022              2021                $               %
Sales
Jinong                                     $  13,385,022     $  15,818,610        (2,433,588 )        -15.4 %
Gufeng                                        45,205,467        48,438,434        (3,232,967 )         -6.7 %
Yuxing                                         2,548,383         3,055,588          (507,205 )        -16.6 %
Sales VIEs                                             -                 -                 -                %
Net gross sales                                     61,138,872        67,312,632        (6,173,760 )         -9.2 %
Cost of products bought
Jinong                                         9,729,576        11,543,109        (1,813,533 )        -15.7 %
Gufeng                                        39,522,883        41,979,484        (2,456,601 )         -5.9 %
Yuxing                                         2,148,522         2,441,868          (293,346 )        -12.0 %
Sales VIEs                                             -                 -                 -                %
Cost of products bought                            51,400,981        55,964,461        (4,563,480 )         -8.2 %
Gross revenue                                   9,737,891        11,348,171        (1,610,280 )        -14.2 %
Operating bills
Selling bills                               2,348,169         2,728,022          (379,853 )        -13.9 %
General and administrative bills           39,363,132        24,509,953        14,853,179           60.6 %
Total working bills                      41,711,301        27,237,975        14,473,326           53.1 %
Income (loss) from operations                (31,973,410 )     (15,889,804 )     (16,083,606 )        101.2 %
Other earnings (expense)
Other earnings (expense)                         1,389,374               342 
       1,389,032       406149.7 %
Interest earnings                                   53,634            18,671            34,963          187.3 %
Interest expense                                 (65,278 )         (57,316 )          (7,962 )         13.9 %
Total different earnings (expense)                   1,377,730           (38,303 )       1,416,033        -3696.9 %
(Loss) earlier than earnings taxes                   (30,595,680 )     (15,928,107 )     (14,667,573 )         92.1 %
Provision for earnings taxes                             -           (90,064 )          90,064         -100.0 %
Net (loss) from persevering with operations      $ (30,595,680 )   $ (15,838,043 )     (14,757,637 )         93.2 %
Net (loss) from discontinued operations       (7,483,147 )       1,023,254        (8,506,401 )       -831.3 %
Net (Loss)                                   (38,078,827 )     (14,814,789

) (23.264.038 ) 157,0 %


Other complete earnings (loss)
Foreign foreign money translation acquire (loss)        (188,874 )         (59,215
)        (129,659 )        219.0 %
Comprehensive (loss)                       $ (38,267,701 )   $ (14,874,004 )     (23,393,697 )        157.3 %




Net Sales


Total web gross sales for the three months ended March 31, 2022 have been $61,138,872 a
lower of $6,173,760 or 9.2%, from $67,312,632 for the three months ended
March 31, 2021. This lower was principally a results of the unfavourable impression on
gross sales volumes because of the COVID-19 pandemic, particularly for Gufeng' web gross sales.



For the three months ended March 31, 2022, Jinong's web gross sales decreased
$2,433,588, or 15.4%, to $13,385,022 from $15,818,610 for the three months ended
March 31, 2021. This lower was primarily as a result of Jinong's decrease gross sales quantity in
the final three months. For the three months ended March 31, 2022, Jinong bought
roughly 18,989 metric tons of fertilizer merchandise, decreased 4,077 or
17.7% as in comparison with 23,066 metric tons for the three months ended March 31,
2021.



For the three months ended March 31, 2022, Gufeng's web gross sales have been $45,205,467,
a lower of $3,232,967 or 6.7%, from $48,438,434 for the three months ended
March 31, 2021. This lower was primarily as a result of Gufeng's decrease gross sales quantity in
the final three months. Gufeng bought roughly 90,228 metric tons of
fertilizer merchandise for the three months ended March 31, 2022, decreased 41,579
tons or 31.5%, as in comparison with 131,807 metric tons for the three months ended
March 31, 2021.



                                       33





For the three months ended March 31, 2022, Yuxing's web gross sales have been $2,548,383, a
lower of $507,205 or 16.6%, from $3,055,588 for the three months ended March
31, 2021. The lower was primarily because of the lower in market demand throughout
the three months ended March 31, 2022.



Cost of Goods Sold



Total value of products bought for the three months ended March 31, 2022 was
$51,400,981, a lower of $4,563,480, or 8.2%, from $55,964,461 for the three
months ended March 31, 2021. The lower was primarily as a result of 5.9% lower in
Gufeng' value of products bought.


Cost of products bought by Jinong for the three months ended March 31, 2022 was
$9,729,576, a lower of $1,813,533, or 15.7%, from $11,543,109 for the three
months ended March 31, 2021. The lower in value of products was primarily as a result of
decrease web gross sales within the fiscal yr 2022.



Costo de los bienes vendidos por Gufeng para los tres meses terminados 31 de marzo de 2022 estaba
$ 39,522,883una disminución de $2,456,601o 5.9%, de $41,979,484 por los tres meses terminados 31 de marzo de 2021. Esta disminución se debió principalmente a la disminución de 6.7% en la venta neta en el año fiscal 2022.

Por tres meses terminados 31 de marzo de 2022el costo de los bienes vendidos por Yuxing fue
$2,148,522una disminución de $293,346o 12,0%, de $2,441,868 por los tres meses terminados 31 de marzo de 2021. Esta disminución se debió principalmente a las menores ventas netas de Yuxing en el año fiscal 2022.



Gross Profit



Total gross revenue for the three months ended March 31, 2022 decreased by
$1,610,280, or 14.2%, to $9,737,891, as in comparison with $11,348,171 for the three
months ended March 31, 2021. Gross revenue margin was 15.9% and 16.9% for the
three Months Ended March 31, 2022 and 2021, respectively.



Gross revenue generated by Jinong decreased by $620,055, or 14.5%, to $3,655,446
for the three months ended March 31, 2022 from $4,275,501 for the three months
ended March 31, 2021. Gross revenue margin from Jinong's gross sales was roughly
27.3% and 27.0% for the three Months Ended March 31, 2022 and 2021,
respectively. The improve in gross revenue margin was primarily because of the increased
unit sale worth for Jinong within the fiscal yr 2022.



Por los tres meses terminados 31 de marzo de 2022la ganancia bruta generada por Gufeng fue
$5,682,584una disminución de $776,366o 12,0%, de $6,458,950 por los tres meses terminados 31 de marzo de 2021. El margen de beneficio bruto de las ventas de Gufeng fue de aproximadamente 12,6 % y 13,3 % durante los tres meses finalizados. 31 de marzo de 2022 y 2021, respectivamente.

For the three months ended March 31, 2022, gross revenue generated by Yuxing was
$399,861, a lower of $213,859, or 34.8% from $613,720 for the three months
ended March 31, 2021. The gross revenue margin was roughly 15.7% and 20.1%
for the three months ended March 31, 2022 and 2021, respectively. The lower
in gross revenue proportion was primarily because of the improve in product prices.


Selling Expenses



Our promoting bills consisted primarily of salaries of gross sales personnel,
promoting and promotion bills, freight-out prices and associated compensation.
Selling bills have been $2,348,169, or 3.8%, of web gross sales for the three months
ended March 31, 2022, as in comparison with $2,728,022, or 4.1%, of web gross sales for the
three months ended March 31, 2021, a lower of $379,853, or 13.9%. The
lower in promoting expense was attributable to the lower in advertising actions.



The promoting bills of Jinong for the three months ended March 31, 2022 have been
$2,246,491 or 16.8% of Jinong's web gross sales, as in comparison with promoting bills of
$2,625,425 or 16.6% of Jinong's web gross sales for the three months ended March 31,
2021.The promoting bills of Yuxing have been $21,171 or 0.8% of Yuxing's web gross sales
for the three months ended March 31, 2022, as in comparison with $18,953 or 0.6% of
Yuxing's web gross sales for the three months ended March 31, 2021. The promoting
bills of Gufeng have been $80,507 or 0.2% of Gufeng's web gross sales for the three
months ended March 31, 2022, as in comparison with $83,644 or 0.2% of Gufeng's web
gross sales for the three months ended March 31, 2021.



                                       34




Gastos generales y administrativos




General and administrative bills consisted primarily of associated salaries,
rental bills, enterprise improvement, depreciation and journey bills incurred
by our common and administrative departments and authorized {and professional}
bills together with bills incurred and accrued for sure litigation. General
and administrative bills have been $39,363,132, or 64.4% of web gross sales for the
three months ended March 31, 2022, as in comparison with $24,509,953, or 36.4% of web
gross sales for the three months ended March 31, 2021, a lower of $14,853,179, or
60.6%. The improve normally and administrative bills was primarily as a result of
increased unhealthy money owed expense.


Total Otros Ingresos (Gastos)




Total different earnings (bills) consisted of earnings from subsidies obtained from
the PRC authorities, curiosity earnings, curiosity bills and financial institution costs. Total
different earnings for the three months ended March 31, 2022 was $1,377,730, as
in comparison with $38,303 complete different bills for the three months ended March 31,
2021, a rise in earnings of $1,416,033 or 3696.9%. The improve in complete
different earnings was primarily resulted from funding acquire as a result of gross sales of
discontinued operations for 3 months ended March 31, 2022.



Income Taxes



Jinong is topic to a most well-liked tax charge of 15% due to its enterprise being
categorized as a High-Tech undertaking beneath the PRC Enterprise Income Tax Law
("EIT") that turned efficient on January 1, 2008. Jinong incurred earnings tax
bills of 0 for the three Months Ended March 31, 2022 and 2021 as a result of web
loss.



Gufeng está sujeto a una tasa impositiva del 25%, incurrió en 0 gastos de impuestos sobre la renta durante los tres meses finalizados 31 de marzo de 2022 y 2021 debido a la pérdida neta.

Yuxing no tiene impuesto sobre la renta para los tres meses terminados 31 de marzo de 2022 y 2021 por estar exentos del pago del impuesto sobre la renta debido a que sus productos entran en la lista de exenciones fiscales establecidas en el EIT.



Net earnings (loss)


(Pérdida) neta para los tres meses terminados 31 de marzo de 2022 estaba $(38,078,827)un aumento en la pérdida de $23,264,038o 157.0%, en comparación con (pérdida) neta de
$(14,814,789) por los tres meses terminados 31 de marzo de 2021. La pérdida neta como porcentaje de las ventas netas totales fue de aproximadamente -62.3% y -22.0% para los tres meses terminados 31 de marzo de 2022 y 2021, respectivamente.

Net (loss) from persevering with operations for the three months ended March 31, 2022
was $(30,595,680), a rise in lack of $14,757,637, or 93.2%, in comparison with web
(loss) of $(15,838,043) for the three months ended March 31, 2021. Net loss as a
proportion of complete web gross sales was roughly -50.0% and -23.5% for the three
months ended March 31, 2022 and 2021, respectively. The improve in web loss was
primarily as a result of increased common and administrative bills.



Net earnings (loss) from discontinued operations for the three months ended March
31, 2022 was $(7,483,147), a lower of with quantity of $8,506,401, or 831.3%,
in comparison with web earnings with quantity of $1,023,254 for the three months ended
March 31, 2021. The lower in web earnings was primarily as a result of decrease gross sales.



                                       35





Nine months ended March 31, 2022 Compared to the 9 months ended March 31,
2021.



                                                                                  Change          Change
                                               2022              2021                $               %
Sales
Jinong                                     $  43,513,283     $  45,249,797        (1,736,514 )        -3.8 %
Gufeng                                        81,567,133        86,703,031        (5,135,898 )        -5.9 %
Yuxing                                         8,256,480         8,161,271            95,209           1.2 %
Sales VIEs                                             -                 -                 -               %
Net gross sales                                    133,336,896       140,114,099        (6,777,203 )        -4.8 %
Cost of products bought
Jinong                                        31,812,503        33,149,990        (1,337,487 )        -4.0 %
Gufeng                                        71,525,033        75,803,724        (4,278,691 )        -5.6 %
Yuxing                                         6,912,210         6,624,796           287,414           4.3 %
Sales VIEs                                             -                 -                 -               %
Cost of products bought                           110,249,746       115,578,510        (5,328,764 )        -4.6 %
Gross revenue                                  23,087,150        24,535,589        (1,448,439 )        -5.9 %
Operating bills
Selling bills                               8,744,473         9,924,316        (1,179,843 )       -11.9 %
General and administrative bills           82,685,580        97,067,252       (14,381,671 )       -14.8 %
Total working bills                      91,430,053       106,991,568       (15,561,514 )       -14.5 %
Income (loss) from operations                (68,342,903 )     (82,455,979
)      14,113,075         -17.1 %
Other earnings (expense)
Other earnings (expense)                         1,848,889           (56,984 )       1,905,873       -3344.6 %
Interest earnings                                  129,512            61,144            68,369         111.8 %
Interest expense                                (203,707 )        (181,269 )         (22,438 )        12.4 %
Total different earnings (expense)                   1,774,694          (177,109 )       1,951,804       -1102.0 %
(Loss) earlier than earnings taxes                   (66,568,209 )     (82,633,088 )      16,064,879         -19.4 %
Provision for earnings taxes                       587,195         2,460,523        (1,873,328 )       -76.1 %
Net (loss) from persevering with operations      $ (67,155,404 )   $ (85,093,611 )      17,938,207         -21.1 %
Net (loss) from discontinued operations      (17,983,567 )        (710,755 )     (17,272,812 )      2430.2 %
Net (Loss)                                   (85,138,971 )     (85,804,366

) 665.395 -0,8 %


Other complete earnings (loss)
Foreign foreign money translation acquire (loss)       3,530,313        25,336,321 
     (21,806,008 )       -86.1 %
Comprehensive (loss)                       $ (81,608,658 )   $ (60,468,045 )     (21,140,613 )        35.0 %




Net Sales


Total web gross sales for the 9 months ended March 31, 2022 have been $133,336,896 a
lower of $6,777,203 or 4.8%, from $140,114,099 for the 9 months ended
March 31, 2021. This lower was primarily as a result of a lower in Gufeng' web
gross sales.



                                       36





For the 9 months ended March 31, 2022, Jinong's web gross sales decreased
$1,736,514, or 3.8%, to $43,513,283 from $45,249,797 for the 9 months ended
March 31, 2021. This lower was primarily as a result of Jinong's decrease gross sales quantity in
the final 9 months. For the 9 months ended March 31, 2022, Jinong bought
roughly 49,487 metric tons of fertilizer merchandise, a lower of 10,678
metric tons, or 17.7%, as in comparison with 60,165 metric tons for the 9 months
ended March 31, 2021.



For the 9 months ended March 31, 2022, Gufeng's web gross sales have been $81,567,133, a
lower of $5,135,898, or 5.9%, from $86,703,031 for the 9 months ended
March 31, 2021. This lower was primarily attributable to the lower in
Gufeng's gross sales quantity within the final 9 months. For the 9 months ended March
31, 2022, Gufeng bought roughly 188,006 metric tons of fertilizer merchandise,
a lower of 55,490 metric tons, or 22.8% as in comparison with 243,496 metric tons
for the 9 months ended March 31, 2021.



For the 9 months ended March 31, 2022, Yuxing's web gross sales have been $8,256,480, an
improve of $95,209 or 1.2%, from $8,161,271 for the 9 months ended March 31,
2021.



Cost of Goods Sold


Costo complete de bienes vendidos por los nueve meses terminados 31 de marzo de 2022 estaba
$110,249,746una disminución de $5,328,764o 4.6%, de $115,578,510 por los nueve meses terminados 31 de marzo de 2021. La disminución se debió principalmente a la disminución en el costo de los bienes vendidos de Gufeng, que disminuyó un 5,6%.




Cost of products bought by Jinong for the 9 months ended March 31, 2022 was
$31,812,503, a lower of $1,337,487, or 4.0%, from $33,149,990 for the 9
months ended March 31, 2021. The lower in value of products was primarily as a result of
the lower in web gross sales over the last 9 months.



Costo de los bienes vendidos por Gufeng durante los nueve meses finalizados 31 de marzo de 2022 estaba
$71,525,033una disminución de $ 4.278.691o 5.6%, de $75,803,724 por los nueve meses terminados 31 de marzo de 2021. Esta disminución se debió principalmente a la disminución de 5.9% en la venta neta durante los últimos nueve meses.

Durante nueve meses terminó 31 de marzo de 2022el costo de los bienes vendidos por Yuxing fue
$6,912,210un incremento de $ 287,414o 4.3%, de $6,624,796 por los nueve meses terminados 31 de marzo de 2021. Este aumento se debió principalmente al aumento de 1,2% en las ventas netas de Yuxing durante los últimos nueve meses.



Gross Profit



Total gross revenue for the 9 months ended March 31, 2022 decreased by
$1,448,439, or 5.9%, to $23,087,150, as in comparison with $24,535,589 for the 9
months ended March 31, 2021. Gross revenue margin was 17.3% and 17.5% for the
9 months ended March 31, 2022 and 2021, respectively.



Gross revenue generated by Jinong decreased by $399,027 or 3.3%, to $11,700,780
for the 9 months ended March 31, 2022 from $12,099,807 for the 9 months
ended March 31, 2021. Gross revenue margin from Jinong's gross sales was roughly
26.9% and 26.7% for the 9 months ended March 31, 2022 and 2021, respectively.



For the 9 months ended March 31, 2022, gross revenue generated by Gufeng was
$10,042,100, a lower of $857,207, or 7.9%, from $10,899,307 for the 9
months ended March 31, 2021. Gross revenue margin from Gufeng's gross sales was
roughly 12.3% and 12.6% for the 9 months ended March 31, 2022 and
2021,
respectively.



                                       37




For the 9 months ended March 31, 2022, gross revenue generated by Yuxing was
$1,344,270, a lower of $192,205, or 12.5% from $1,536,475 for the 9 months
ended March 31, 2021. The gross revenue margin was roughly 16.3% and 18.8%
for the 9 months ended March 31, 2022 and 2021, respectively. The lower in
gross revenue proportion was primarily because of the improve in product prices.



Selling Expenses



Our promoting bills consisted primarily of salaries of gross sales personnel,
promoting and promotion bills, freight-out prices and associated compensation.
Selling bills have been $8,744,473, or 6.6%, of web gross sales for the 9 months
ended March 31, 2022, as in comparison with $9,924,316, or 7.1% of web gross sales for the
9 months ended March 31, 2021, a lower of $1,179,843 or 11.9%.



The promoting bills of Jinong for the 9 months ended March 31, 2022 have been
$8,449,858 or 19.4% of Jinong's web gross sales, as in comparison with promoting bills of
$9,659,301 or 21.3% of Jinong's web gross sales for the 9 months ended March 31,
2021. The promoting bills of Yuxing have been $50,547 or 0.6% of Yuxing's web gross sales
for the 9 months ended March 31, 2022, as in comparison with $40,641 or 0.5% of
Yuxing's web gross sales for the 9 months ended March 31, 2021. The promoting
bills of Gufeng have been $244,068 or 0.3% of Gufeng's web gross sales for the 9
months ended March 31, 2022, as in comparison with $224,374 or 0.3% of Gufeng's web
gross sales for the 9 months ended March 31, 2021.



Gastos generales y administrativos




General and administrative bills consisted primarily of associated salaries,
rental bills, enterprise improvement, depreciation and journey bills incurred
by our common and administrative departments and authorized {and professional}
bills together with bills incurred and accrued for sure litigation. General
and administrative bills have been $82,685,580, or 62.0% of web gross sales for the 9
months ended March 31, 2022, as in comparison with $97,067,252, or 69.3% of web gross sales
for the 9 months ended March 31, 2021, a lower of $14,381,671, or 14.8%.



Total Otros Ingresos (Gastos)




Total different earnings (bills) consisted of earnings from subsidies obtained from
the PRC authorities, curiosity earnings, curiosity bills and financial institution costs. Total
different earnings for the 9 months ended March 31, 2022 was $1,774,694, as
in comparison with $177,109 complete different bills for the 9 months ended March 31,
2021, a rise in earnings of $1,951,804 or 1102.0%. The improve in complete
different earnings resulted from funding acquire as a result of gross sales of discontinued
operations for 9 months ended March 31, 2022.



Income Taxes



Jinong is topic to a most well-liked tax charge of 15% on account of its enterprise
being categorized as a High-Tech undertaking beneath the PRC Enterprise Income Tax Law
("EIT") that turned efficient on January 1, 2008. Jinong incurred earnings tax
bills of 0 for the 9 months ended March 31, 2022, as in comparison with $$277,685
for the 9 months ended March 31, 2021, a lower of $277,685, or 100.0%.



Gufeng está sujeto a una tasa impositiva del 25%, incurrió en 0 gastos de impuestos sobre la renta durante los nueve meses finalizados 31 de marzo de 2022 y 2021.

Yuxing has no earnings tax for the 9 months ended March 31, 2022 and 2021 as a
results of being exempted from paying earnings tax as a result of its merchandise fall into
the tax exemption checklist set out within the EIT.



                                       38





Net Income (loss)



Net (loss) for the 9 months ended March 31, 2022 was $(85,138,971), a
barely lower of loss with quantity of $665,395, or 0.8%, in comparison with
$(85,138,971) for the 9 months ended March 31, 2021. Net loss as a proportion
of complete web gross sales was roughly -63.9% and -61.2% for the 9 months ended
March 31, 2022 and 2021, respectively.



Net (loss) from persevering with operations for the 9 months ended March 31, 2022
was $(67,155,404), a lower of loss with quantity of $17,938,207, or 21.1%,
in comparison with $(85,093,611) for the 9 months ended March 31, 2021. The lower
was primarily as a result of decrease General and administrative bills.



Net (loss) from discontinued operations for the 9 months ended March 31, 2022
was $(17,983,567), a rise of loss with quantity of $17,272,812, or 2430.2%,
in comparison with web (loss) with quantity of $(710,755) for the 9 months ended March
31, 2021. The improve of loss was primarily as a result of decrease gross sales.



Discusión de las medidas de rentabilidad del segmento




As of March 31, 2022, we have been engaged within the following companies: the
manufacturing and sale of fertilizers by Jinong and Gufeng, the manufacturing and
sale of high-quality agricultural merchandise by Yuxing, and the gross sales of
agriculture supplies by the gross sales VIEs. For monetary reporting function, our
operations have been organized into 4 primary enterprise segments primarily based on places
and merchandise: Jinong (fertilizer manufacturing), Gufeng (fertilizer manufacturing) and
Yuxing (agricultural merchandise manufacturing) and the gross sales VIEs. Each of the
segments has its personal annual finances about improvement, manufacturing and gross sales.



Each of the 4 working segments referenced above has separate and distinct
common ledgers. The chief working resolution maker ("CODM") makes choices
with respect to assets allocation and efficiency evaluation upon receiving
monetary data, together with income, gross margin, working earnings and web
earnings (loss) produced from the varied common ledger techniques; nevertheless, web
earnings (loss) by phase is the principal benchmark to measure revenue or loss
adopted by the CODM.



For Jinong, the web (loss) elevated by $1,612,782, or 16.4%, to $(11,449,612)
for 9 months ended March 31, 2022, from $(9,836,830) for the 9 months
ended March 31, 2021. The improve in web loss was principally as a result of increased
common and administrative expense.



For Gufeng, the web (loss) decreased by $15,284,153 or 21.2%, to $(56,904,522)
for 9 months ended March 31, 2022 from $(72,188,675) for 9 months ended
March 31, 2021. The lower of web loss was principally because of the lower in
common and administrative expense.



For Yuxing, the web earnings elevated $122,129 or 25.5%, to $601,492 for 9
months ended March 31, 2022 from $479,363 for 9 months ended March 31, 2021.
The improve was primarily as a result of increased gross sales.



                                       39




Liquidez y Recursos de Capital

Nuestras principales fuentes de liquidez incluyen el efectivo de las operaciones, los préstamos de los bancos comerciales locales y los ingresos netos de las ofertas de nuestros valores.

A partir de 31 de marzo de 2022el efectivo y los equivalentes de efectivo fueron $51,436,395un incremento de
$32,842,451o 176,6%, de $18,593,944 a partir de 30 de junio de 2021.




We intend to make use of among the remaining web proceeds from our securities
choices, in addition to different working capital if required, to amass new
companies, improve manufacturing strains and full Yuxing's new greenhouse
services for agriculture merchandise situated on 88 acres of land in Hu County, 18
kilometers southeast of Xi'an metropolis. Yuxing bought a set of agricultural
merchandise testing gear for the yr of 2016. We consider that we've
ample money readily available and constructive projected money circulate from operations to
help our enterprise development for the following twelve months to the extent we don't
have additional vital acquisitions or expansions. However, if occasions or
circumstances happen and we don't meet our working plan as anticipated, we could also be
required to hunt extra capital and/or to cut back sure discretionary
spending, which may have a fabric adversarial impact on our capacity to attain
our enterprise goals. Notwithstanding the foregoing, we could search extra
financing as crucial for growth functions and after we consider market
circumstances are most advantageous, which can embrace extra debt and/or
fairness financings. There will be no assurance that any extra financing will
be obtainable on acceptable phrases, if in any respect. Any fairness financing could lead to
dilution to current stockholders and any debt financing could embrace restrictive
covenants.



The following desk units forth a abstract of our money flows for the durations
indicated:



                                                                      Nine Months Ended
                                                                          March 31,
                                                                   2022              2021
Net money offered by (utilized in) working actions            $ (45,769,602 )   $ (10,584,537 )
Net money offered by (utilized in) investing actions                5,055,208          (469,390 )
Net money offered by (utilized in) financing actions               70,924,275           355,200

Efecto de la variación del tipo de cambio en el efectivo y equivalentes de efectivo 2.632.571 3.839.537 Incremento neto en efectivo y equivalentes de efectivo

                         32,842,451        (6,859,191 )
Cash and money equivalents, starting steadiness                      18,593,944        11,934,778
Cash and money equivalents, ending steadiness                      $  51,436,395     $   5,075,587




Operating Activities



Net money utilized in working actions was $45,769,602 for the 9 months ended
March 31, 2022, a rise of $35,185,065, or 332.4%, from money utilized in
working actions of $10,584,537 for the 9 months ended March 31, 2021.
The improve was primarily because of the improve prematurely to suppliers and reduce
for account payables in the course of the 9 months ended March 31, 2022 as in comparison with
the identical interval in 2021.



Investing Activities



Net money offered by investing actions for the 9 months ended March 31,
2022 was $5,055,208, in comparison with money utilized in investing actions of $469,390
for the 9 months ended March 31, 2021. The improve was primarily because of the
gross sales of discontinued operations and the Company obtained partial fund throughout
the 9 months ended March 31, 2022.



Financing Activities



Net money offered by financing actions for the 9 months ended March 31,
2022 was $70,924,275, in comparison with $355,200 web money offered by financing
actions for the 9 months ended March 31, 2021 from short-loan. The
improve was primarily because of the Company obtained fund from traders for buy
of inventory.



                                       40




A partir de 31 de marzo de 2022 y 30 de junio de 2021nuestros préstamos por pagar eran los siguientes:




                              March 31,       June 30,
                                2022            2021
Short time period loans payable:   $ 4,247,100     $ 4,179,600
Total                       $ 4,247,100     $ 4,179,600




Accounts Receivable


We had accounts receivable of $40,158,928 as of March 31, 2022, as in comparison with
$102,783,004 as of June 30, 2021, a lower of $62,624,076, or 60.9%. The
lower was primarily attributable to Gufeng's accounts receivable and the
discontinued of Lishijie, Fengnong, Jinyangguang and Wangtian. As of March 31,
2022, Gufeng's accounts receivable was $13,645,859, a lower of $24,409,152,
or 64.1%, in comparison with $38,055,011 as of June 30, 2021.



Allowance for uncertain accounts in accounts receivable for the 9 months ended
March 31, 2022 was $32,797,394, a rise of $9,058,407 or 38.2%, from
$23,738,987 as of June 30, 2021. And the allowance for uncertain accounts as a
proportion of accounts receivable was 45.0% as of March 31, 2022 and 18.8%
as of
June 30, 2021.



Deferred property



We had no deferred property as of March 31, 2022 and June 30, 2021. During the
three months, we assisted the distributors in sure advertising efforts and
creating commonplace shops to develop our aggressive benefit and market
shares. Based on the distributor agreements, the quantity owed by the distributors
in sure advertising efforts and retailer improvement might be expensed over three
years if the distributors are actively promoting our merchandise. If a distributor
defaults, breaches, or terminates the settlement with us sooner than the
contractual phrases, the unamortized portion of the quantity owed by the distributor
is payable to us instantly. The deferred property had been absolutely amortized
as of
March 31, 2022.



Inventories



We had inventories of $51,565,520 as of March 31, 2022, as in comparison with
$64,315,903 as of June 30, 2021, a lower of $12,750,383, or 19.8%. The
lower was primarily attributable to Gufeng's stock. As of March 31, 2022,
Gufeng's stock was $28,305,184, in comparison with $36,617,573 as of June 30, 2021,
a lower of $8,312,389, or 22.7%.



Advances to Suppliers



We had advances to suppliers of $37,877,927 as of March 31, 2022 as in comparison with
$23,884,772 as of June 30, 2021, representing a rise of $13,993,155, or
58.6%. Our stock stage could fluctuate occasionally, relying how
shortly the uncooked materials is consumed and replenished in the course of the manufacturing
course of, and the way quickly the completed items are bought. The replenishment of uncooked
materials depends on administration's estimate of quite a few elements, together with however not
restricted to, the uncooked supplies future worth, and spot worth together with
its volatility, in addition to the seasonal demand and future worth of completed
fertilizer merchandise. Such estimate is probably not correct, and the acquisition
resolution of uncooked supplies primarily based on the estimate could cause extreme inventories
in occasions of sluggish gross sales and inadequate inventories in peak occasions.



Accounts Payable



We had accounts payable of $1,858,302 as of March 31, 2022 as in comparison with
$16,868,942 as of June 30, 2021, representing a lower of $ 15,010,640, or
89.0%. The lower was primarily because of the lower of accounts payable for
VIEs because of the discontinued of Lishijie, Fengnong, Jinyangguang and Wangtian.



Ingresos no devengados (depósitos de clientes)

We had buyer deposits of $5,803,179 as of March 31, 2022 as in comparison with
$6,257,215 as of June 30, 2021, representing an lower of $454,036, or 7.3%.
This lower was as a result of seasonal fluctuation and we count on to ship merchandise
to our clients in the course of the subsequent three months at which period we are going to acknowledge
the income.



                                       41




Arreglos Fuera de Balance

No tenemos ningún acuerdo fuera de steadiness.

Estimaciones y políticas contables críticas

Management's dialogue and evaluation of its monetary situation and outcomes of
operations are primarily based upon our unaudited condensed consolidated monetary
statements, which have been ready in accordance with United States typically
accepted accounting ideas. Our monetary statements replicate the choice
and software of accounting insurance policies which require administration to make
vital estimates and judgments. See Note 2 to our unaudited condensed
consolidated monetary statements, "Basis of Presentation and Summary of
Significant Accounting Policies." We consider that the next paragraphs
replicate essentially the most important accounting insurance policies that at present have an effect on our
monetary situation and outcomes of operations:



Use of estimates


The preparation of unaudited condensed consolidated monetary statements in
conformity with accounting ideas typically accepted in the United States of
America requires administration to make estimates and assumptions that have an effect on the
reported quantities of property and liabilities and disclosure of contingent property
and liabilities on the date of the unaudited condensed consolidated monetary
statements and the quantity of revenues and bills in the course of the reporting durations.
Management makes these estimates utilizing the most effective data obtainable on the
time the estimates are made. However, precise outcomes may differ materially
from these estimates.



Revenue recognition


Los ingresos por ventas se reconocen en la fecha de envío a los clientes cuando existe un acuerdo formal, el precio es fijo o determinable, la entrega se completa, no tenemos otras obligaciones significativas y la cobrabilidad está razonablemente asegurada. Los pagos recibidos antes de que se cumplan todos los criterios relevantes para el reconocimiento de ingresos se registran como ingresos no devengados.




Our income consists of invoiced worth of products, web of a value-added tax (VAT).
No product return or gross sales low cost allowance is made as merchandise delivered and
accepted by clients are usually not returnable and gross sales reductions are
usually not granted after merchandise are delivered.



Cash and money equivalents



For assertion of money flows functions, we contemplate all money readily available and in banks,
certificates of deposit and different highly-liquid investments with maturities of
three months or much less, when bought, to be money and money equivalents.



Accounts receivable


Our coverage is to keep up reserves for potential credit score losses on accounts
receivable. Management opinions the composition of accounts receivable and
analyzes historic unhealthy money owed, buyer concentrations, buyer credit score
worthiness, present financial developments and adjustments in buyer cost patterns to
consider the adequacy of those reserves. Any accounts receivable of Jinong and
Gufeng which might be excellent for greater than 180 days might be accounted as
allowance for unhealthy money owed, and any accounts receivable of Yuxing which might be
excellent for greater than 90 days might be accounted as allowance for unhealthy money owed.



Deferred property


Deferred property symbolize quantities the Company superior to the distributors in
their advertising and shops improvement to develop our aggressive benefit and
market shares. Based on the distributor agreements, the quantity owed by the
distributors in sure advertising efforts and retailer improvement might be expensed
over three years if the distributors are actively promoting our merchandise. If a
distributor defaults, breaches, or terminates the settlement with us sooner than
the conclusion of the contractual phrases, the unamortized portion of the quantity
owed by the distributor is to be refunded to us instantly. The deferred property
had been absolutely amortized as of March 31, 2022.



                                       42





Segment reporting



FASB ASC 280 requires use of the "administration method" mannequin for phase
reporting. The administration method mannequin relies on the best way an organization's
administration organizes segments throughout the firm for making working choices
and assessing efficiency. Reportable segments are primarily based on merchandise and
providers, geography, authorized construction, administration construction, or every other means
administration disaggregates an organization.



As of March 31, 2022, we have been organized into 5 primary enterprise items:
Jinong (fertilizer manufacturing), Gufeng (fertilizer manufacturing), Yuxing
(agricultural merchandise manufacturing), Jinyangguang (agriculture gross sales) and
Wangtian (agriculture gross sales). For monetary reporting function, our operations
have been organized into 4 primary enterprise segments primarily based on places and merchandise:
Jinong (fertilizer manufacturing), Gufeng (fertilizer manufacturing) and Yuxing
(agricultural merchandise manufacturing) and the gross sales VIEs. Each of the segments has
its personal annual finances relating to improvement, manufacturing and gross sales.

© Edgar Online, fuente Vislumbres

DEJA UNA RESPUESTA

Por favor ingrese su comentario!
Por favor ingrese su nombre aquí